Action by KfW Entwicklungsbank
WE SUPPORT GOOD GOVERNANCE
Participation in political life is the key to escaping poverty. Source. KfW Photo Archive / photothek.net
Promotion of good governance is one of the most important duties of German Development Cooperation (DC). The Federal Ministry for Economic Cooperation and Development (BMZ) has agreed to make governance a priority area of German Development Cooperation in 32 partner countries. This makes governance the second most important priority area. Only sustainable economic development is a priority area in more partner countries.
The projects and programmes implemented by KfW Entwicklungsbank in the field of good governance are concerned primarily with decentralisation and promoting the rule of law. This means, for instance, strengthening democratic self-government at local authority level, improving the management of public budgets and supporting elections. Good governance has also been embraced by German Financial Cooperation as a cross-cutting issue in other areas. KfW Entwicklungsbank demands clear control mechanisms for every project prepared and implemented and all resources allocated, including rules on tenders and disbursement procedures.
KfW Entwicklungsbank also supports companies in their efforts to improve their good corporate governance, even assuming a monitoring role, which might involve sitting on the supervisory board of microfinance banks to oversee compliance with good corporate governance practice. Within the context of supporting measures, through external advisers it also supports public companies with the introduction of appropriate structures, such as transparent cost and financial management.
Last updated: July 2011
