RIA OREANDA, Russia
March 18 2010

World Bank Supports Armenia in Public Sector Performance Improvement

Washington. OREANDA-NEWS . March 18, 2010. The World Banks Board of
Executive Directors today approved a USD9 million credit for the
Second Public Sector Modernization Project (PSMP II) for Armenia. 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, reported the press-centre of World Bank. Strengthening
governance through improved public service delivery is among the
priorities for Bank support, saidAsad Alam, World Bank Regional
Director for the South Caucasus. While 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. 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. To improve public
service delivery, enhancing technology is not enough by itself. The
most crucial and difficult part is changing behavior and
organizational culture, added Kathy Lalazarian, head of the World Bank
team designing the project. Its important to have efficient public
services throughout the recovery because more than ever families are
counting on the services the government provides.

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 Governments 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 USD 1, 318, 7 million.
From: Baghdasarian