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17 March 2009
GPPi publishes article on the World Bank’s “Country Policy and Institutional Assessment”
Julia Steets, GPPi Associate Director and Kristina Thomsen, GPPi Research Associate, have published an article entitled “Scope for better assessment” on how to improve the World Bank’s “Country Policy and Institutional Assessment” (CPIA) in the journal Development and Cooperation. The article is based on a study authored by Julia Steets, which was commissioned by Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) and German Technical Cooperation (GTZ).
The CPIA is the instrument the World Bank uses to assess the quality of policies and institutions in different countries. The countries are rated based on 16 criteria, including economic management, structural policies and public-sector management. Aid disbursements depend in part on the results of such assessments. Even though the World Bank has repeatedly revised the CPIA methods and its allocation formula, the CPIA remains controversial. The article examines whether the CPIA in its current form makes sense and proposes various reforms which would render the allocation system more robust, more equitable and more conducive to aid effectiveness.
The article argues that the CPIA relies too heavily on subjective assessments. It suggests that credibility would benefit if assessment teams used additional information and drew on more diverse sources. To render the process more transparent, it proposes publishing not only the CPIA results, but also the factors considered in making the assessment.
Moreover, instead of basing the CPIA on economic growth theories, Steets and Thomsen argue that it would be better to focus on internationally agreed development goals, such as the Millennium Development goals. This would give countries more scope to draft development strategies that fit their special needs and circumstances.
Finally, the article argues that aid allocation must not only maximize effectiveness, but must also be fair. The CPIA methods should be sufficiently flexible to take into account country-specific circumstances. Fragile states, for instance, face particular conditions such as a high risk of violent conflict. As the CPIA does not consider measures relevant to reduce the potential for strife so far, it would make sense to add issues such as respect for human rights, protection of minorities and empowerment of communities.
To read the article please click here.
To read the study please click here.
For additional information, please contact Julia Steets.