Showing papers in "World Bank Publications in 2001"

Commodity market reforms: lessons of two decades.

Abstract: Structural reform of the economies of developing countries has been in the forefront of development interest since the early 1980s. This interest stems from a recognition that the structures and institutions of these countries are critical to any enhancement of economic and social development. One of the key reforms has been that of primary commodity markets, especially agricultural commodity markets, because many developing countries, including the poorest, depend heavily on these for foreign exchange earnings and employment, and hence for poverty reduction. This report focuses on the political economy and institutional aspects of agricultural commodity market reform. In order to explore in detail factors that are critical to the processes, consequences, and substance of reform, the authors have focused the analysis and evaluation on five commodities important in many developing countries, specifically cocoa, coffee, sugar, cotton, and cereal. In doing so, they highlight important lessons on how agricultural sector reform can be launched and implemented. Some of the factors identified in the report as being key to successful reform include the recognition that commodity markets often affect communities and even politics, that the initial conditions of markets are critical, and that government intervention can crowd out private sector initiatives, especially when it comes to building the institutions needed to develop a healthy agricultural sector.

Faith in development : partnership between the World Bank and the Churches of Africa

Abstract: Most of Africa's poor are deeply religious. Not only are faith communities among the poor, in many cases they are the poor. Like other faith communities, the Christian Church in Africa has grown impressively. Its development role must be taken seriously, not just because it is trusted and broad-based within Africa, but also because it is a part of a global movement capable of improving the lives of the poor. The papers in this report were presented at the Churches of Africa/World Bank Conference on Alleviating Poverty in Africa, which was held in Nairobi, Kenya, in March 2000. Representatives of African churches came together with senior staff at the World Bank for discussions on a topic of mutual and urgent concern: alleviating poverty in Africa. Participants at the conference expressed a wide range of viewpoints, including treating people as subjects rather than objects, promoting investment and industrialization through human capital formation, listening to the "voices of the poor," recapturing lost market shares in promary commodity markets, the ideal patterns of church development practice, gender inequality, enterprise solutions for addressing poverty, and the church's role in promoting social justice and as well as income generation and service delivery.

Resolution of financial distress : an international perspective on the design of bankruptcy laws

Abstract: This book focuses on the principles of and practical approaches to addressing the public policy trade-off involved in systemic corporate and financial sector crises and the lessons learned from the changes taking place in bankruptcy frameworks around the world. It includes research on recent public policy initiatives for distress resolution or market-based restructuring.

Contracting for public services : output-based aid and its applications

Abstract: Access to good, reliable public services is critical for the poor in developing countries if they are to rise out of poverty Safe water and sanitation, modern energy and communications, good-quality basic education and health services--all contribute directly to individual well-being, and all improve economic opportunities for low-income households The primary challenge now is to ensure that aid and tax-funded spending reaches the poor, that the services this money finances respond to their needs and preferences, that these services are delivered efficiently, and that public funds are used in a way that leverages private financing of service delivery The cases gathered in this report tell of efforts to improve the delivery of services by contracting out their provision and linking the payment of subsidies to the delivery of services to targeted groups--illustrating aspects of an approach that the authors call output-based aid The cases highlight varied attempts to sharpen the focus on the objectives of aid and public spending, to improve incentives for efficiency and innovation, to expand opportunities for mobilizing private financing to meet social objectives, and to enhance accountability in the use of pubic resources

The Economics of Gender in Mexico : Work, Family, State, and Market

Abstract: This report examines gender differences in the Mexican economy, with a focus on the labor market. It examines gender issues over the course of the life cycle, beginning with education and child labor, continuing with adult urban and rural labor force participation, and concluding with the situation of elderly Mexican men and women. While each chapter uses different data sources and analytical methodologies, the volume as a whole is guided by a gender perspective that examines the situations of both men and women as distinct groups and in relationship to one another. Drawing on national labor market statistics, specialized regional household surveys, and firm-level data, the chapters that comprise the volume are rich in detailed quantitative analysis, which is presented in relatively non-technical language. This report has its origins in the commissioning of a series of technical papers by the World Bank, in collaboration with several Mexican government agencies, including the Comision Nacional de la Mujer and the Secretaria de Hacienda y Credito Publico. A number of additional studies resulted from the first national Workshop on Gender Analysis and Public Policies in April 1997.

Poverty alleviation in Jordan : lessons for the future

Abstract: This report draws lessons for improving the policy design of poverty alleviation schemes in Jordan. The conclusions herein are based on analyses of trends in consumption poverty in Jordan and assessment of the impact of government programs (including food subsidies and cash transfers) on poverty alleviation in the 1990s. Poverty declined between 1992 and 1997 because inequality declined. Government programs, especially those targeted to the poor like the National Aid Fund, contributed to poverty alleviation. However, poverty continues to be a major policy challenge for Jordan: the poor and near-poor remain vulnerable as a result of the shallowness of poverty in Jordan (many people are concentrated close to the poverty line) and the adverse effects of potential shocks. The report concludes the following: 1) sustainable poverty reduction requires resumption and sustainability of growth; 2) there is a need for a policy response to the vulnerability of the poor and near-poor to economic shocks; 3) the capacity of the National Aid Fund (NAF) needs to be significantly enhanced; and 4) continued priority needs to be placed on human development policies, particularly those affecting the poor.

Adult Literacy Programs in Uganda

Abstract: The purpose of this study is to compare, and contrast the resource requirements, and effectiveness of adult literacy programs in Uganda, assess its implementation, and recommend future policy for the development of adult literacy education. The report presents the research, and evaluation background, providing analyses of effectiveness in terms of both the attainment, and retention of reading, writing, and arithmetic skills, including practical knowledge, and attitude changes - particularly, knowledge about HIV/AIDS prevention, and care. It explores the factors affecting the performance of adult education, the costs of activities, and the extent of local commitment under the current socioeconomic conditions. The context of literacy programs in Uganda, and the current state of both government, and nongovernmental organizations' programs, are described, emphasizing on outcomes, and cost-effectiveness, rather than process, or methodology. Conclusions suggest that while the programs are helping the government in redressing the imbalance of educational opportunities, namely between men and women, these programs are nonetheless in danger of missing their primary target, i.e., the people who have had no schooling. Furthermore, the average level of attainment is very limited, revealing the quality of implementation is the major explanation for the variations in learners' attainments. Recommendations suggest consistency in policy, to ensure reconciliation between decentralization, and the priority for universal literacy.

Trends in Private Investment in Developing Countries : Statistics for 1970-2000 and the Impact on Private Investment of Corruption and the Quality of Public Investment

Abstract: The report is part of the continued investigation on the public-private investment relationship, and its focus for this year is on the quality of public investment, its interaction with corruption, and the resulting impact on private investment. The first chapter provides statistics on trends in private, and public fixed investment in sixty three developing countries, with a substantially expanded sample coverage of the Eastern Europe and Central Asia Region, as well as some smaller economies of the Latin America and Caribbean Region. On average, the ratio of private investment to GDP, declined in 1999 compared to 1998, while public investment increased in simple average terms, and remained at 1998 levels in weighted average terms. The 1999 decline brings investment ratios back to their 1995 level, and, preliminary (incomplete) estimates for 2000, suggest that private investment may be poised for a return to growth. The second chapter examines whether higher levels of public investment are associated with higher, or lower levels of private investment, the impact of corruption on this relationship, and the long-run implications for growth, and sustainable development. The paper is consistent with the hypothesis that corruption lowers the quality of public investment, and that this reduced quality is associated with lower private investment.

Financial transition in Europe and Central Asia: challenges of the new decade.

Abstract: The financial sectors of the post-communist economies of Europe and Central Asia are perhaps where the most intractable problems existed and where the most difficult reforms were forced to begin. This report examines the factors that influenced, and will influence, the adaptation of ECA's financial systems, starting from an examination of how the global financial system--especially the Western European component--has evolved, and how these developments have both influenced and challenged different types of transition economies. The report also provides an opportunity to take stock of progress in the financial systems of ECA countries over the past 10 years and to identify the main challenges confronting financial policymakers during this period.

The development of property taxation in economies in transition: case studies from Central and Eastern Europe.

Abstract: This book details the context within which policy decisions and objectives for the property tax system are made in the transitional economies of Central and Eastern Europe. It shows how these policy decisions evolve as a part of the transitional reforms still in process. This book offers the chance to review the experiences of transitional countries in initiating and implementing fiscal instruments during a decade of enormous transformations. The research for the case studies, included in this book, was sponsored by the Lincoln Institute of Land Policy.

Colombia : Essays on Conflict, Peace, and Development

Abstract: Achieving peace and promoting economic and social development are the two main challenges facing countries like Colombia, affected by a serious internal armed conflict. A variety of studies, including this one, indicate that Colombia's violence and armed conflict stem from a complex interaction of economic, social, historical and political factors. This book concludes that attaining and consolidating peace is essential for Colombia. Without sustained peace, there will not be any economic and social development. Peace, once achieved, must be supported by broad domestic consensus and by economic and public policies that promote economic growth, job creation, and food security, among other issues. Among the books other conclusions, is that peace will require deep institutional reforms, possibly a new social contract.

Using Tax Incentives to Compete for Foreign Investment : Are They Worth the Costs?

Abstract: The book contains complementary essays on the use of tax incentives, to attract foreign direct investment (FDI). The first essay presents results of the authors' original research, and explores FDI, and issues of tax incentives, in the context of Indonesia. Their results mostly support the arguments made against incentives, particularly they find little evidence that when Indonesia eliminated tax incentives, there was any decline in the rate of FDI into the country. Similarly, the second essay surveys the research of others on the same topic, and pertaining to the same issues discussed in the first essay. They show that results of other researchers, are generally consistent with the findings of the research in Indonesia, notably that tax incentives, neither affect significantly the amount of direct investment that takes place, nor usually determine the location to which investment is drawn. Nevertheless, recent evidence has shown that when factors such as political, and economic stability, infrastructure, and transport costs are more, or less equal between potential locations, taxes may exert a significant impact. This is evidenced by the growing tax competition in regional groupings (i.e., the European Union) or, at the sub-regional level within one country (i.e., the United States). Both essays provide a basis for much more sophisticated analysis by policymakers than previously, and, both are important because they question governments' institutional arrangements that create agency problems with respect to tax incentive policies.

Fostering Competition in China's Power Markets

Abstract: This report proposes a strategy for developing competitive pool markets in China's power sector and for increasing energy trade between competitive pool markets areas. A three-stage approach is offered for developing the competitive pool markets. During stage 1, a mandatory competitive pool will be created with a single buyer. During stage 2, wholesale competition will be permitted. During stage 3, retail competition will be allowed, making the market fully competitive. The staged approach allows competitive market principles to be introduced immediately within existing institutions. This will allow needed skills and parallel economic reforms to be developed gradually and so facilitate increased competition in the later stages. The report also discusses key elemetns of competitive market development, including the organization of transmission services and transition issues such as dealing with stranded costs and mitigating market power among generators.

Back from the Brink : Thailand's Response to the 1997 Economic Crisis

Abstract: This essay reviews the traumatic experience of Thailand's economy during 1997-1999, describes the policy response, and draws lessons for the future Whereas the country's economic performance until 1996, was exemplary within the developing world - consistent growing, high gross domestic product rates, exports expansion, and in-flow of foreign capital - the financial downturn of 1997 gave way to a deep economic recession, which diminished asset values, and threatened to unleash large-scale unemployment The book analyzes the crisis, highlighting the tension, and controversy that surrounded structural reform, and, describes the ongoing legal, regulatory, and institutional reforms - all designed to ensure prudent decision-making by Thai bankers, and corporations The book concludes with an outline of the steps needed to complete the reform program, in a way that will consolidate the fragile economic recovery, and allow sustained growth The economic history of the crisis - highlighted in Figure 1-1 - shows the movements of selected indicators of the economy, during this volatile period

Private Solutions for Infrastructure : Opportunities for Uganda

Abstract: Although growth of infrastructure services in Vietnam since the late 1980s greatly facilitated rapid growth in exports and gross domestic product (GDP), Vietnam's infrastructure still suffers from a number of major inadequacies. This report has three main objectives: to describe and assess the current status and performance of key infrastructure sectors; to describe and assess the policy, regulatory, and institutional environment for involving the private sector in those sectors; and to help policymakers in framing future reform and development strategies and to assist potential private sector investors in assessing investment opportunities.

Free Trade Area Membership as a Stepping Stone to Development : The Case of ASEAN

Abstract: This study investigates the economic impacts of accession to the ASEAN Free Trade Area (AFTA) by the new member countries of Cambodia, the Lao PDR, Myanmar, and Vietnam. The trade policies of these countries are examined, and a series of quantitative analyses were undertaken to evaluate the impacts of accession. The results showed that the static impacts of reducing tariffs against ASEAN members are beneficial, although the magnitude of the net gains is diminished by the trade diversion resulting from the discriminatory nature of the reforms. The binding commitments on protection rates under the AFTA plan provide an important initial step to more broader and more beneficial trade reforms. The study focuses on some of the key country-specific policy challenges associated with trade liberalization--such as declining tariff revenues in Cambodia, and the negative impacts on sensitive domestic industries in Vietnam. The study recommends that accession to AFTA be viewed as an important transitional step in the broader process of trade reform and institutional development needed for successful development and poverty alleviation.

Treasury Reference Model

Abstract: The Treasury Reference Model (TRM) gives guidelines for the design of automated treasury systems for government aiming at a) authorities within government and their advisors who are engaged in planning and implementing such systems; and b) software designers and suppliers from the private sector - or even in-house developers of treasury software The paper starts in Part I with a discussion of the key features of such systems, including the core functional processes, the various policy options associated with their design and the associated institutional arrangements An effective treasury system will contribute directly to improving transparency and accountability of government and to meet the requirements set out in the IMF Code of Good Practice on Fiscal Transparency - Declaration on Principles and other standards, such as detailed fiduciary standards being developed by the World Bank Part II gives detailed flow charts of the functional processes associated with Treasury systems, a diagnostic questionnaire that could be used to assess country specific requirements, a set of sample functional specification software that would be required to implement these systems, and a listing of the main data associated with Treasury systems TRM also provides a means for implementing improved analytical standards for fiscal reporting Increasingly governments are moving toward accrual basis reports and the IMF Government Finance Statistics system is being revised accordingly

Environmental Health : Bridging the Gaps

Abstract: This discussion paper: a) proposes a new approach of targeted collaboration among different sectors; b) devises new tools or enhances existing ones to facilitate the contributions of different sectors to help relieve health problems; and c) puts theory into practice through a pilot in Ghana. The report is divided into three parts. Part 1 explains the foundations of environmental health and proposes a new approach that taps health benefits systematically outside the health sector through multisectoral collaboration. Part 2 provides basic tools to identify, prioritize, and propose remedial measures for many multisectoral health problems, many of which could and do otherwise fall between the cracks in single sector projects. Part 3 summarizes the findings and presents background material from a workshop in Ghana, "Targeted Collaboration among Line Agencies, Local Communities and the Ministry of Health," putting into practice the ideas of Parts 1 and 2. Annex A provides a rapid checklist on environmental health for practitioners and task managers. Annex B provides one-page summaries of about twenty major diseases.

Information infrastructure: the World Bank Group's experience.

Abstract: This joint OED(Operations Evaluation Department)/OEG (Operations Evaluation Group) study follows up OED's 1993 review of the Bank's experience in telecommunications. It assesses how World Bank Group assistance from 1993 onward has influenced the development of information infrastructure in developing countries. It finds that recommendations of the 1993 review have generally been heeded with a) the adoption of a new private-sector-led agenda; b) the incorporation of the new agenda in most recent Bank lending and non-lending interventions; and c) the increasing share of IFC in total Bank Group funding commitments for telecommunications. The study points out that, at a time when the information revolution presents developing countries with far-reaching opportunities and risks, the Bank Group's ability to play a global policy leadership role has been hampered by its benign neglect of the sector at both the strategic and country management levels, as well as a fragmented internal organization. As a result, the number of countries where it has had a real impact is limited. The study recommends that the Bank Group a) restate its strategy in the broader information infrastructure, with a particular focus on optimizing the use of its instruments and expert skills; and b) gaps in the existing monitoring and evaluation systems be filled, to provide the necessary framework to assess the future effectiveness of the revised strategy.

Global Public Policies and Programs : Implications for Financing and Evaluation

Abstract: These are the proceedings from a World Bank workshop on global public policies, and programs, assembled from transcripts, and accompanying papers. The combination of market failure, and limited institutional capacity to influence economic, and social change across national borders, underlies public discontent with aid. This formed the basis for discussions, looking for new approaches to the development assistance business, taking into account the growing integration of the global economy, and arguing that, beyond supporting market-friendly reforms, aid strategies must be designed to overcome social, and structural constraints to sustainable development. The broad range of cases examined include efforts to craft commonly accepted standards for the design, and operation of large dams; they address issues of global financial instability; explore the implications of intellectual property rights protection for developing countries; describe the promotion of international agricultural research; probe the implementation of international public health programs; and, identify the dilemmas associated with the financing, and evaluation of global public policies, and programs. Such programs have become center stage because of irreversible processes associated with globalization, and, similar initiatives will dominate the development scene for years to come.

The Current Regulatory Framework Governing Business in Bulgaria

Abstract: The paper identifies the key elements of the regulatory environment for business in Bulgaria, to serve as a research guide, while recognizing that the rapid development of new legislative, and regulatory procedures, are greatly needed, largely to meet the European Union's (EU) legal, and regulatory standards It describes business creation, with the Commercial Code providing much of the central, comprehensive regulation Also, another route for business creation in the private sector has been offered through the privatization process of state-owned assets, and, the use of concessions can also be viewed as another route to the creation of private business However, and although concession legislation sets an overall framework of reasonable adequacy, reports from practitioners in the marketplace reveal much remains to be done to forward this agenda In regulating corporate operations, the stake of shareholders in the formation of corporate policy, reflects shared participation in the corporate capital base; thus to engender confidence in corporate management standards, and underpin the broadening of share ownership, priority actions should take place Bulgarian competition law, follows EU doctrine, which penalizes companies for discriminatory behavior, monitored by the Commission on the Protection of Competition, with defined discretionary powers The study further highlights accounting standards, investment channels, and the tax regime, suggesting priority actions for company transformation such as enhanced training for judges, and court administration procedures to rationalize the case load Overall, recommendations include accurate drafting of primary legislation; quality improvement of secondary legislation, setting the pace for a timely implementation, as well as a more effective judicial system for corporate affairs, and services delivered by the public administration to businesses

Armenia : Restructuring to Sustain Universal General Education

Abstract: Before the breakup of the Soviet Union, Armenia had a highly developed and expensive education system, matching the needs of the command economy. The country is now facing a challenge to sustain universal coverage and performance standards in primary-secondary education with a small fraction of the former budget, while reorienting the system to the needs of a democratic society and market economy. The purposes of this paper are to clarify the case for rationalization by quantifying the future cost implications and affordability of various educational policy options, and to identify further measures needed in Armenia to promote restructuring and to secure adequate financing of the education system over the medium term. The paper examines recent evolution of the structure of inputs and expenditure to general education in Armenia in comparison with international norms and practice, and outlines various approaches that have been proposed for restructuring the system in the context of the government's sectoral reform strategy. Conclusions are drawn concerning the depth of rationalization and the financing strategy that would be needed to sustain universal access and quality of the system over the medium term. Finally, some of the practical and institutional obstacles to actually implementing rationalization are identified, and measures are proposed to help overcome these constraints.

Social Expenditure in Taiwan (China)

Abstract: Social expenditures in Taiwan (China) accelerated during recent decades, in accordance with economic development, social transformation, and democratization. Among the various categories of expenditure, education spending received the highest priority, and continues to do so up to this day. Furthermore, the government was able to match its human resource development targets, with the actual needs of the economy, while promoting competition among individuals for educational advancement. Spending on another priority area - social security - has risen gradually with social security programs, initially covering only a small targeted segment of the population, and then expanding to cover a wider cross-section of the society. Meanwhile, a comprehensive National Health Insurance (NHI) was introduced only a few years ago (in 1995). The hallmark of Taiwan (China's) approach to social policy has thus been gradualism. This aspect has helped it avoid fiscal crises, due to unsustainable social spending. However, democratization in recent years will likely accelerate such spending.

The Challenge of Rural Developments in the EU Accession Countries : Third World Bank/FAO EU Accession Workshop, Sofia, Bulgaria, June 17-20, 2000

Abstract: This report examines the reforms and policy changes necessary in the rural section of the ten countries that have started the accession process for eventual membership in the European Union (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia). The papers in this report are selected from the presentations at the Third World Bank/FAO EU Accession Workshop held in Sofia, Bulgaria, on June 17-20, 2000, and are organized around four topics: 1) Defining the concepts of rural development-options for EU accession candidate countries; 2) Rural development in the European Union; 3) Rural development in Central and Eastern Europe; and 4) International experiences and the role of international organizations in supporting rural development in the EU accession countries.