World Bank

About: World Bank is a other organization based out in Washington D.C., District of Columbia, United States. It is known for research contribution in the topics: Population & Poverty. The organization has 7813 authors who have published 21594 publications receiving 1198361 citations. The organization is also known as: World Bank, WB & The World Bank.

Education Reform for Raising Economic Competitiveness

Abstract: P. Sahlberg, Lead Education Specialist, European Training Foundation Globalization has increased economic competition within and between countries and the world’s regions. Economic competitiveness is commonly seen as a valid index for judging a country’s level of economic prosperity. Many recent large-scale education reforms have been justified by the urgent need to increase labor productivity and promote economic development and growth through expanded and improved education. It is generally assumed that to increase economic competitiveness, citizens must acquire knowledge, skills and attitudes necessary for civic success and the knowledge-based economy. This article argues that what schools are expected to do in order to promote economic competitiveness often contradicts commonly accepted global education reform thinking. Experience in many countries indicates that increased standardization of teaching and learning, for example, may be counterproductive to the expectations of enhanced economic competitiveness. The conclusion is that rather than competition between education systems, schools and students, what is needed is networking, deeper co-operation and open sharing of ideas at all levels if the role of education in economic competitiveness is to be strengthened. The key features of education reform policies that are compatible with competitiveness are those that encourage flexibility in education systems, creativity in schools and risk-taking without fear on the part of individuals.

How do Female Entrepreneurs Perform? Evidence from Three Developing Regions

Abstract: Using the World Bank Enterprise Survey data, we analyze performance gaps between male- and female-owned companies in three regions—Eastern Europe and Central Asia (ECA), Latin America (LA), and Sub-Saharan Africa (SSA). Among our findings are significant gender gaps between male- and female-owned companies in terms of firm size, but much smaller gaps in terms of firm efficiency and growth (except in LA). Part of the reason women run smaller firms is that they tend to concentrate in sectors in which firms are smaller and less efficient (in ECA and SSA). By contrast, we find no evidence of gender discrimination in access to formal finance in any of the three regions, although in ECA women are less likely than men to seek formal finance. Finally, while female entrepreneurs receive smaller loans than their male counterparts, the returns from each dollar they receive is no lower in terms of overall sales revenue.

Explaining the Increase in Inequality During the Transition

Abstract: Since the beginning of transition to market economy, inequality has increased in all transition countries. The factors driving inequality up: increasing wage inequality (as workers move from a relatively egalitarian state sector to a less equal private sector), and the rising share of income from self-employment and property (both very unequally distributed). Social transfers have failed to dampen the increase in inequality because they have remained, as under socialism, unfocused. The transition from planned to market economy has witnessed one of the biggest and fastest increases in inequality ever recorded. On average, inequality in Eastern Europe and the former Soviet Union increased from a Gini coefficient of 25?28 (below the OECD average) to 35?38 (above OECD average) in less than 10 years. In some countries, such as Bulgaria, Russia, and Ukraine, the increase in inequality has been even more dramatic, outpacing the yearly speed of Gini increase in the United Kingdom and the United States in the 1980s by three to four times. What are the factors pushing inequality up? Milanovic constructs a simple model of transition defined as the removal of restriction on private sector development. As the private sector becomes free, it attracts workers who leave the shrinking state sector. Wage inequality in the private sector is greater than in the old, relatively egalitarian state sector. This is one of the forces pushing inequality up. The second is the growth of income from self-employment and property, both of which are fairly unequal sources of income both before the transition and now. In addition, some of the released state sector workers remain unemployed. Their incomes decline. Increased inequality is thus accompanied by the hollowing out of the middle class (where the middle class is defined as the former state sector workers). One part of state sector workers moves to higher incomes as workers in the private sector or entrepreneurs; another remains jobless. The model is contrasted with the actual developments in six transition economies: Bulgaria (over 1989-95), Hungary (1987-93), Latvia (1989-96), Poland (1987-95), Russia (1989-94), and Slovenia (1987-95). In all countries, wage inequality has increased (in some, like Russia, dramatically); income from self-employment has remained as unequal as before but its share in total income has risen, and the importance of social transfers in total income has increased, but its focus on the poor has not improved. This paper - a product of the Development Economics Research Group - is part of a larger effort in the group to study social issues in transition economies. The author may be contacted at bmilanovic@worldbank.org.