Bangladesh: Strengthening Governance and Institutional Resilience

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The development objective of the Strengthening Governance and Institutional Resilience Project of Bangladesh is to strengthen governance and institutional resilience in the public and financial sectors. Bangladesh’s Interim Government has outlined ten priorities, each supported by a reform commission tasked with developing a reform framework. The DPC is aligned with the World Bank Group Country Partnership Framework (CPF) FY23–FY27. The DPC is aligned with the goals of the Paris Agreement. The reforms under this DPC will be implemented with support from ongoing sector-specific technical assistance and World Bank investment projects in Bangladesh. The DPC incorporates lessons from earlier Development Policy Financing (DPFs) in Bangladesh and post-crisis DPFs in other countries such as Sri Lanka. The operation addresses critical challenges to domestic resource mobilization, financial sector vulnerabilities, efficiency of public investment, and public sector transparency. Under Pillar 1, the DPC focuses on improving domestic revenue mobilization. Pillar 2 aims to enhance financial sector stability and transparency by strengthening corporate governance frameworks and increasing the Bangladesh Bank (BB) capacity to address vulnerabilities in the banking sector. Pillar 3 is centered on reforms that will increase public sector transparency, accountability, and the efficiency of public investment and procurement processes. This includes enhancing data transparency and improving public service delivery through effective and transparent beneficiary targeting.