This document presents the maingovernance indicators for the country, as compiled by theWorld Bank Institute (WBI), and how are they used byinternational institutions in making decisions aboutassistance to Nicaragua. Although these indicators haveweaknesses, they can provide a general indication of whatare the priority areas for investigation. Accordingly, thepresent review concentrates on a few key areas where theBank's expertise can add value and complement theefforts of other donors, including: (a) the regulatorysystem; (b) the system of property registries; and (c) twoof the mechanisms for oversight and accountability of publicsector performance (the Comptroller's Office and socialaccountability). The overall objective of the Institutionaland Governance Review (IGR) is to examine the institutionaland governance bottlenecks that stand in the way of moreeffective impact of key public policies, particularlypoverty reduction policies. Since the report is limited inscope, the criteria to decide priority areas for reviewincluded: (a) issues that are of particular significance forbetter governance and institutionality; (b) issues that areparticularly important in relation to poverty reduction; (c)issues where the Bank has a comparative advantage; and (d)issues where there would not be a duplication of effort withother donors or other studies undertaken by the Bank andwhere the IGR can add value.
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