Reforming Public Institutions and Public Sector Group Poverty Reduction and Economic Management

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This strategy paper was prepared by the Public Sector Board ofthe Poverty Reduction and Economic Management (PREM) Network, under the direction of Public Sector Director Cheryl Gray. Current or past members of the Board who contributed to the report and were primarily responsible for the individual VPU strategies in Part II include Shanta Devarajan (Development Research Group), Ali Khadr (Middle East and North Africa), Daniel Kaufmann (World Bank Institute), Brian Levy (Africa), Helga Muller and Sanjay Pradhan (Europe and Central Asia), Barbara Nunberg (East Asia and the Pacific), Shekhar Shah (South Asia), and Geoffrey Shepherd (Latin America and the Caribbean). Melissa Thomas and Tripti Thomas had major roles in editing parts ofthe document. Anna Hansson was primarily responsible for compiling the data on the public sector portfolio. Nick Manning contributed to the annex on analytic tools, and Steve Knack had a major role in updating the annexes on governance indicators and on the links between poverty and governance. Vinaya Swaroop contributed to the annex on Bank-IMF relations. In addition, many useful contributions were received from other Bank staffand external advisors, including Paul Bermingham, Isabelle Bleas, Colin Bruce, Monali Chowdhurie-Aziz, Mamadou Dia, John Heilbrunn, Malcolm Holmes, Arturo Israel, Phil Keefer, Jennie Litvack, Yasuhiko Matsuda, Robert Pic- ciotto, Allen Schick, Miguel Schloss, Graham Scott, Anwar Shah, Rick Stapenhurst, Mike Stevens, Eric Swanson, John Todd, and Ulrich Zachau. We also benefited from extensive comments from members ofthe Executive Board during discussions with the Committee on Development Effectiveness (CODE) in December 1999 and January 2000 and discussions with the full Board in July 2000, and from comments received from numerous external partners during consultations (most between January and May 2000) in Abidjan, Copenhagen, Harare, London, Maastricht, Manila, New York, Paris, Stockholm, Warsaw, and Washington. We are grateful to the many other people inside and outside the Bank who also provided valuable comments on previous drafts.