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Public sector management (PSM) reform is concerned with improving public sector results by changing
the way governments work. It is a challenging reform area in which to offer assistance. Sustainable institutional
change often requires that thousands of public agents alter their behavior, and political incentives may be at odds
with improving public sector performance. “What works” in PSM reform is highly context-dependent and
explicit evidence remains limited.
The Bank’s Approach to PSM for 2011-2020 emphasizes that public sector reform is a pragmatic
problem-solving activity, which seeks to improve results by identifying sustainable improvements to the public
sector results chain. The Approach reflects continuing evolution in the Bank's PSM work. It responds to
changing demands from client countries, as well as changes in the Bank's own operating environment, including
opportunities presented by results-based lending and risk management strategies. It puts into practice the lessons
learned from significant progress research has made in recent years in unpacking the nature of institutional
reform. Overall, it seeks to achieve better results by better adapting the way in which the Bank supports client
countries to the distinctive nature of PSM reform.
