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World Bank Supports Armenia In Improving Public Sector Performance

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  • World Bank Supports Armenia In Improving Public Sector Performance

    WORLD BANK SUPPORTS ARMENIA IN IMPROVING PUBLIC SECTOR PERFORMANCE

    Noyan Tapan
    March 17, 2010

    WASHINGTON, MARCH 17, NOYAN TAPAN-ARMENIANS TODAY. The World Bank's
    Board of Executive Directors approved a US million credit for the
    Second Public Sector Modernization Project (PSMP II) for Armenia on
    March 16. The project will assist the Government of Armenia in its
    efforts to improve the quality of public services by introducing a
    performance-based pay system and a code of conduct for civil servants,
    and by enhancing public access to all available government information.

    "Strengthening governance through improved public service delivery is
    among the priorities for Bank support", said Asad Alam, World Bank
    Regional Director for the South Caucasus. According to Asad Alam
    though some improvements have been made in the area of governance
    and anti-corruption, important challenges remain, including in the
    enforcement of conflict of interest legislation pertaining to public
    officials.

    According to the report of the World Bank's office in Yerevan, in
    the new economic reality brought about by the global economic crisis,
    public administration reform has grown even more important, as getting
    better value from public expenditures and improving public services
    have become a necessity. Ensuring that public service provisions do
    not suffer at a time of tighter fiscal constraints requires focused
    efforts to strengthen performance management.

    According to Kathy Lalazaryan, head of the World Bank team designing
    the project, to improve public service delivery, enhancing technology
    is not enough by itself. The most crucial and difficult part is
    changing behavior and organizational culture. She noted that it's
    important to have efficient public services throughout the recovery
    because more than ever families are counting on the services the
    government provides.

    According to report of the World Bank's office in Yerevan, this
    demanding agenda will be tackled by the PSMP II, as despite progress in
    civil service reform under the ongoing PSMP I, policy formulation and
    implementation functions need additional strengthening. The Project
    will also help build capacity for performance management, and will
    support the Government's efforts to bolster the rules regulating
    conflict of interest in public service and improve enforcement.

    PSMP II has three main components. It supports: (I) the design of
    organizational structures in pilot institutions and improvement of
    the management of business processes by streamlining and coordinating
    functions; (II) making human resource management more effective,
    and enhancing public service ethics and staff performance systems;
    and (III) complementing and enhancing the electronic governance and
    automation systems to make them accessible to the general public,
    aiming for better service delivery, and more transparency and
    efficiency.

    The IBRD Flexible loan has a maturity of 25 years and a grace period
    of 10 years included.

    Since joining the World Bank in 1992 and IDA in 1993, the commitments
    to Armenia total approximately US$ 1, 318, 7 million.
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