Showing papers in "World Bank Publications in 2011"

Who creates jobs

Abstract: There is a consensus that jobs are vital in translating economic growth into lasting poverty reduction and social cohesion. But who creates jobs is an understudied field. This economic premise argues that there is a strong link between initial levels of young and small firms and subsequent job growth, as evidenced in India. The economic geography of entrepreneurship in India is still evolving. It is worrying that there are too few entrepreneurs in India for its stage of development. Yet there is no question that entrepreneurship works cities and states that have embraced entrepreneurship have created more jobs. However, the link between entrepreneurship and job growth is not automatic. Cities that have a higher quality of physical infrastructure and a more educated workforce attract many more entrepreneurs. Supportive incumbent industrial structures for input and output markets are strongly linked to higher entrepreneurship rates. There are many policy levers that can be used by policy makers to promote entrepreneurial growth. Instead of being preoccupied with firm chasing attracting large mature firms from other locations policy makers should focus on encouraging entrepreneurship in their communities.

Special economic zones : progress, emerging challenges, and future directions

Abstract: Ask three people to describe a special economic zone (SEZ) and three very different images may emerge. The first person may describe a fenced-in industrial estate in a developing country, populated by footloose multinational corporations (MNCs) enjoying tax breaks, with laborers in garment factories working in substandard conditions. In contrast, the second person may recount the 'miracle of Shenzhen,' a fishing village transformed into a cosmopolitan city of 14 million, with per capita gross domestic product (GDP) growing 100-fold, in the 30 years since it was designated as an SEZ. A third person may think about places like Dubai or Singapore, whose ports serve as the basis for wide range of trade- and logistics-oriented activities. In this book, the author use SEZ as a generic expression to describe the broad range of modern economic zones discussed in this book. But we are most concerned with two specific forms of those zones: (1) the export processing zones (EPZs) or free zones, which focus on manufacturing for export; and (2) the large-scale SEZs, which usually combine residential and multiuse commercial and industrial activity. The former represents a traditional model used widely throughout the developing world for almost four decades. The latter represents a more recent form of economic zone, originating in the 1980s in China and gaining in popularity in recent years. Although these models need not be mutually exclusive (many SEZs include EPZ industrial parks within them), they are sufficiently different in their objectives, investment requirements, and approach to require a distinction in this book.

Impact Evaluation in Practice, First Edition [La evaluación de impacto en la práctica]

Abstract: The Impact Evaluation in Practice handbook is a comprehensive and accessible introduction to impact evaluation for policymakers and development practitioners. The book incorporates real-world examples to present practical guidelines for designing and implementing evaluations. Readers will gain an understanding of the uses of impact evaluation and the best ways to use evaluations to design policies and programs that are based on evidence of what works most effectively. The handbook is divided into three sections: Part One discusses what to evaluate and why; Part Two outlines the theoretical underpinnings of impact evaluation; and Part Three examines how to implement an evaluation. Case studies illustrate different methods for carrying out impact evaluations.

Leveraging Migration for Africa : Remittances, Skills, and Investments [Optimisation du phénomène migratoire pour l’Afrique : Envois de fonds, compétences et investissements]

Abstract: International migration has profound implications for human welfare, and African governments have had only a limited influence on welfare outcomes, for good or ill. Improved efforts to manage migration will require information on the nature and impact of migratory patterns. This book seeks to contribute toward this goal, by reviewing previous research and providing new analyses (including surveys and case studies) as well as by formulating policy recommendations that can improve the migration experience for migrants, origin countries, and destination countries. The book comprises this introduction and summary and four chapters. Chapter one reviews the data on African migration and considers the challenges African governments face in managing migration. Chapter two discusses the importance of remittances, the most tangible link between migration and development; it also identifies policies that can facilitate remittance flows to Africa and increase their development impact. Chapter three analyzes high-skilled emigration and analyzes policies that can limit adverse implications and maximize positive implications for development. Chapter four considers ways in which Africa can leverage its diaspora resources to increase trade, investment, and access to technology.

Understanding Growth and Poverty : Theory, Policy, and Empirics

Abstract: This volume is an introduction to the theories and policies that affect economic growth and poverty It is a compilation of lecture notes used in face-to-face and e-learning courses presented by the World Bank Institute's (WBI) Poverty Program during 2004-08 The volume is divided into three parts Part one discusses basic concepts and measurement issues pertaining to poverty, national income, and economic growth Part two deals with the macroeconomic policies that are critical for economic growth in the short term It covers government enforced fiscal and exchange-rate policies and the roles of financial institutions, development assistance (or aid), debt relief, and trade policies Part three covers the structural and sectoral policies that affect longer-term economic growth and poverty reduction To underscore the impact of good governance and effective service delivery in growth and poverty reduction, separate chapters are devoted to institutional and technological development, education, health, labor, and land The volume ends with a chapter that summarizes knowledge of growth theory, reviews the process of growth in 13 successful countries, and draws out implications for other developing countries The authors hope that this chapter may be of help to policy makers in identifying the constraints to economic growth and development that may be unique to each country

The Road to Academic Excellence : The Making of World-Class Research Universities [El camino hacia la excelencia académica : la constitución de universidades de investigación de rango mundial]

Abstract: For middle-income and developing countries as well as some industrial nations a major challenge for building and sustaining successful research universities is determining the mechanisms that allow those universities to participate effectively in the global knowledge network on an equal basis with the top academic institutions in the world. These research universities provide advanced education for the academic profession, policy makers, and public and private sector professionals involved in the complex, globalized economies of the 21st century. In addition to their contribution to economic development, these universities play a key societal role by serving as cultural institutions, centers for social commentary and criticism, and intellectual hubs. The positive contribution of tertiary education is increasingly recognized as not limited to middle-income and advanced countries, because it applies equally to low-income economies. Tertiary education can help these countries to become more globally competitive by developing a skilled, productive, and flexible labor force and by creating, applying, and spreading new ideas and technologies. A recent study on how to accelerate economic growth in Sub-Saharan Africa spells out the crucial contribution of tertiary education in supporting this endeavor (World Bank 2008). It observes that the key for success in a globalized world increasingly lies in how effectively a country can assimilate available knowledge and build comparative advantages in areas with higher growth prospects and how it can use technology to address the most pressing environmental challenges. The main chapters of this book are nine case studies that illustrate what it takes to establish and sustain research universities and help validate the analytical model outlined above, including the paths to building research excellence.

From farm to firm : rural-urban transition in developing countries

Abstract: Around the world, countries are becoming urbanized at an astonishing pace. As countries develop economically, their economies shift from mainly rural and agrarian to increasingly urban and nonagricultural. This rural-urban transformation presents both opportunities and challenges for development. When managed effectively, the transformation spurs growth and reduces poverty. When managed poorly, however, the process can result in stark welfare disparities, the marginalization of entire regions, and poorly functioning cities that fail to realize the potential gains from agglomeration economies. This book investigates the rural-urban transformation underway in Sub-Saharan Africa and South Asia, emphasizing the influence of country conditions as well as the potential of good policies to minimize disparities and ensure that everyone shares in the benefits of urbanization. The first part of this book investigates urbanization and rural-urban welfare inequalities on three geographic scales global, national, and local featuring countries and cities in Sub-Saharan Africa on the national and local levels. The second part of the book sheds light on the texture of transformation in five countries in South Asia, each at a different stage in the process: Bangladesh, India, Nepal, Pakistan, and Sri Lanka.

The poverty impacts of climate change

Abstract: Over the last century, the world has seen a sustained decline in the proportion of people living in poverty However, there is an increasing concern that climate change could slow or possibly even reverse poverty reduction progress Given the complexities involved in analyzing climate change impacts on poverty, different approaches can be helpful; this note surveys the results of recent research on climate change impacts on poverty

How Do Women Weather Economic Shocks? What We Know

Abstract: Do women weather economic shocks differently than men? First-round impacts of economic crises on women's employment should be more prominent in this recent economic downturn than historically because of women's increased participation in the globalized workforce Second-round impacts result from the strategies that vulnerable households use to cope with declining income, which can vary by gender In the past, women from low-income households have typically entered the labor force, while women from high-income households have often exited the labor market in response to economic crises Evidence also suggests that women defer fertility during economic crises and that child schooling and child survival are adversely affected, mainly in low-income countries, with girls suffering more adverse health effects than boys These impacts underscore the need for providing income to women in poor countries to help household's better cope with the effects of economic shocks

The IBNET Water Supply and Sanitation Performance Blue Book

Abstract: The International Benchmarking Network for Water and Sanitation Utilities (IBNET) blue book creates a baseline and, at the same time, offers a global vision of the state of the sector in developing countries. By tracking progress in and quantifying and assessing the water supply and sanitation sectors, IBNET helps meet the goal of providing safe, sustainable, and affordable water and sanitation for all. This report serves three purposes. First, it aims to raise awareness of how IBNET can help utilities identify ways to improve urban water and wastewater services. Second, it provides an introduction to benchmarking and to IBNET's objectives, scope, focus, and some recent achievements. Third, it elaborates the methodology and data behind IBNET and presents an overview of IBNET results and country data. By providing comparative information on utilities' costs and performance, IBNET and this study can be used by a wide range of stakeholders, including: 1) utilities: to identify areas of improvement and set realistic targets; 2) governments: to monitor and adjust sector policies and programs; 3) regulators: to ensure that adequate incentives are provided for improved utility performance and that consumers obtain value services; 4) consumers and civil society: to express valid concerns; 5) international agencies and advisers: to perform an evaluation of utilities for lending purposes; and 6) private investors: to identify opportunities and viable markets for investments.

An Initial Estimation of the Economic Effects of the Creation of the EurAsEC Customs Union on Its Members

Abstract: This note provides an initial estimation of some of the economic effects of creating the Eurasian Economic Community (EurAsEC) customs union. Relying on the computable general equilibrium model from the Global Trade Analysis Project (GTAP), results of the simulations consistently support the conclusion that, as an arrangement, the EurAsEC customs union (CU) will be a gross domestic product (GDP)-reducing framework in which the negative trade-diversion effects surpass positive trade-creation ones.

Special economic zones : what have we learned?

Abstract: It has been more than 50 years since the establishment of the first modern special economic zones (SEZs) During this time, SEZs have been credited with underpinning the dramatic export-oriented growth of China and other East Asian countries While they remain a controversial instrument, policy makers appear to be increasingly attracted to economic zones Since the mid-1980s, the number of new zones has grown rapidly, with significant expansion in developing countries But in this postcrisis environment, the context in which zones operate is changing; increasingly, the effectiveness with which they are designed, implemented, and managed will determine their success This note outlines key lessons that have emerged from the experiences of zone programs in developing countries over recent decades

Border Management Modernization

Abstract: This book provides border management policymakers and reformers with a broad survey of key developments in and principles for improving trade facilitation through better border management, including practical advice on particular issues. In contrast to the traditional border management reform agenda, with its focus on improving customs operations, this book addresses both customs reform and areas well beyond customs-a significant broadening of scope. The book thus presents a new, more comprehensive approach to trade facilitation through border management reform: an approach that embraces a much wider, 'whole of government' perspective. The objective of this book is to summarize and provide guidance on what constitutes good practices in border management-looking beyond customs clearance. The contributions to the volume make clear that there are no simple or universally applicable solutions. Instead, the aim is to provide a range of general guidelines that can be used to better understand the complex border management environment and the interdependencies and interrelationships that collectively need to be addressed to secure meaningful change and improvement.

Sophistication in service exports and economic growth

Abstract: Services can now be stored and traded digitally, and they are not subject to many of the trade barriers that physical exports have to overcome. Services are no longer exclusively an input for trade in goods, but have become a 'final export' for direct consumption. It is important to note that services not only have become more tradable, but also can be increasingly unbundled: a single service activity in the global supply chain can now be fragmented and done separately at different geographic locations. This has led to a new channel of growth-what we call service exports sophistication.

The Puppet Masters : How the Corrupt Use Legal Structures to Hide Stolen Assets and What to Do About It [Les Marionnettistes : Comment dissimuler les bien mal acquis derrière des structures juridiques, et que faire pour l'empêcher]

Abstract: This report, the puppet masters, deals with the corporate and financial structures that form the building blocks of hidden money trails. In particular, it focuses on the ease with which corrupt actors hide their interests behind a corporate veil and the difficulties investigators face in trying to lift that veil. It serves as a powerful reminder that recovering the proceeds of corruption is a collective responsibility that involves both the public and private sector. Law enforcement and prosecution cannot go after stolen assets, confiscate and then return them if they are hidden behind the corporate veil. All financial centers and developed countries have committed, through the UN Convention against Corruption and international anti-money laundering and countering the financing of terrorism standards, to improving the transparency of legal entities and other arrangements. This report provides evidence of how far we still have to go to make these commitments a reality. Narrowing the gap between stated commitments and practice on the ground has a direct impact on actual recovery of assets.

The drought and food crisis in the Horn of Africa : impacts and proposed policy responses for Kenya

Abstract: As the world begins to feel the effects of climate change, the frequency of droughts is increasing in the Horn of Africa In Kenya, the drought and food crisis affect welfare through two main channels The first channel is the increased mortality of livestock in drought-affected areas, which are home to 10 percent of the country's population The second channel is by exacerbating increases in food prices, which are largely driven by worldwide price trends Considering these two channels, this note identifies four broad policy changes that can reduce Kenya's future vulnerability to such shocks: (i) investment in people in the arid and semiarid lands; (ii) reform of Kenya's maize policy; (iii) review of the East African Community grain trade policy; and (iv) formulation of a unified social protection system

Industrial Clusters and Micro and Small Enterprises in Africa : From Survival to Growth

Abstract: The private sector is the engine of economic growth, stimulating entrepreneurship and innovation and promoting competition and productivity. While many countries in Africa have developed private sector-driven growth strategies, private investment as a proportion of gross domestic product (GDP) is only 13 percent in Africa, significantly lower than in other regions, such as South Asia, with many low-income countries. The public sector still occupies the lion's share of economic activity in Africa. This study addresses how industrial clusters could be a springboard for the development of Africa's micro and small enterprise sector, which constitutes the bulk of the region's indigenous private sector. The successful development of industrial clusters in Asia illustrates how small enterprises can help to drive growth led by market expansion at home and abroad.

How Public Spending Can Help You Grow: An Empirical Analysis for Developing Countries

Abstract: Although many studies indicate that both the level and composition of public spending are significant for economic growth, the results in the empirical literature are still mixed. This note is based on a paper of the same title (Bayraktar and Moreno-Dodson 2010) that compares a set of fast-growing developing countries to a mix of developing countries with different growth patterns. Considering the full government budget constraint, the empirical analysis shows that public spending, especially its “core” components, contributes to economic growth only in countries that are capable of using funds for productive purposes. In addition, those countries must have an adequate economic policy environment with macroeconomic stability, openness, and private sector investments that are conducive to growth.

Financial Access and Stability : A Road Map for the Middle East and North Africa

Abstract: This report contributes to the effort to improve Middle East and North Africa's (MENA's) growth and employment performance by providing a diagnostic of MENA's financial systems and proposing a roadmap for more diversified, competitive, and inclusive financial systems. The report recognizes the need to complement the financial development agenda by a financial stability agenda, to ensure that financial systems remain resilient as access is expanded and new risks emerge. The report starts by briefly reviewing the main causes of MENA's unsatisfactory growth and employment performance, identifying the region's broader growth agenda and the role of financial development in this agenda. It proceeds by reviewing the size and structure of MENA's financial systems, showing that most of these systems are excessively bank based and undiversified. The chapter provides a battery of access indicators showing that access outcomes have been very poor relative to those in other regions. It discusses the main causes of these poor outcomes and proposes a comprehensive agenda for financial development and financial stability. The report emphasizes the many common challenges faced by MENA countries, but it also recognizes the differences and tailors policy recommendations to the initial conditions in each of the main sub regions.

Bank flows and Basel III : determinants and regional differences in emerging markets

Abstract: The global financial crisis has led to a range of reform proposals concerning the regulatory framework governing the banking sector collectively referred to as 'Basel III.' Although the proposed reforms are expected to generate substantial benefits by reducing the frequency and intensity of banking crises, concerns have been raised that, in the short term, the costs of moving to higher capital ratios may lead banks to raise their lending rates and reduce lending. This note explores the near-term implications of Basel III capital regulations on bank flows to emerging markets, based on an analysis of the key determinants of these flows.

"What Do Existing Household Surveys Tell Us About Gender and Transportation in Developing Countries?" in Transportation Research Board. Women's Issues in Transportation, Volume 2. Washington, DC

Abstract: Access to affordable, reliable, and safe transportation is critical in improving the welfare of individuals in developing countries. Yet, transport data are limited overall, and data that address the different patterns of use by women and men are even scarcer. A few studies have shown, however, that women and men have different transport needs and constraints. Typically, analysis of these topics has been hampered largely by the costs involved in carrying out the large-scale transportation surveys needed to provide such data. There are household surveys, however, that can provide further insights into how women and men use transportation in the developing world. Four common household surveys—income and expenditure surveys, living standards measurement study surveys, demographic and health surveys, and multiple indicator cluster surveys—are reviewed to identify the extent to which they can provide transportation planners and researchers with relevant data. The results are mixed. Substantial data on one or two aspects of transportation, such as cost and mode used to visit education and health facilities, are available across countries; however, the surveys contain little information on other important factors, such as mode choice, security, and travel patterns. A marginal influence on surveys to expand the data collected on gender and transportation may be possible. Stand-alone transport surveys, however, will continue to be needed to foster the production of gender statistics in transportation in developing countries and the incorporation of gender differences into transport decisions.

Risk-Based Tax Audits : Approaches and Country Experiences

Abstract: Revenue administration is a major interface between the state and its citizens A good revenue administration is, therefore, an important attribute of good government As a result, in recent years, policy makers have become increasingly aware of the importance of policies that will promote business development while ensuring voluntary tax compliance In the modern context, it is neither desirable nor feasible to examine or inspect every single taxpayer The revenue administration, therefore, has to rely on effective management of compliance Promoting voluntary compliance, achieved through a self-assessment system in which taxpayers comply with their tax obligations without intervention from tax officials, requires developing modern approaches to audits based on risk management The impact of audits critically depends on a properly designed audit selection strategy focused on high-risk taxpayers to provide the most cost-effective outcome This, in itself, contributes to promoting voluntary compliance Risk-based country audits: approaches and country experiences are an important study of this critical revenue function of compliance management

Gender-informing aid for trade : entry points and initial lessons learned from the World Bank

Abstract: The effects of policy interventions on women are of increasing concern to policy makers in all fields, and trade is no exception. This note reviews recent World Bank projects and studies that 'gender inform' trade-related interventions, and it uses the Bank's experience to promote gender-equal opportunities by highlighting entry points at which trade projects, studies, and policies can effectively address gender issues.

Malnutrition in Afghanistan : Scale, Scope, Causes, and Potential Response

Abstract: This book has the potential to contribute to a reversing of this trend, whereby activities in not only the health sector but also in other sectors relevant to nutrition will gain increased support and prominence in national development planning. South Asia has by far the largest number of malnourished women and children, and no other region of the world has higher rates of malnutrition. Malnutrition in childhood is the biggest contributor to child mortality; a third of child deaths have malnutrition as an underlying cause. For the surviving children, malnutrition has lifelong implications because it severely reduces a child's ability to learn and to grow to his or her full potential. Malnutrition thus leads to less productive adults and weaker national economic performance. Therefore, the impact of malnutrition on a society's productivity and well being and a nation's long-term development is hard to underestimate. For the South Asia region of the World Bank, malnutrition is a key development priority, and in the coming years, the Bank intends to enhance dramatically its response to this challenge. As a first step, a series of country assessments such as this one are being carried out. These assessments will be used to reinforce the dialogue with governments and other development partners to scale up an evidence-based response against malnutrition. To succeed, we will need to address the problem comprehensively, which will require engaging several sectors. This assessment of malnutrition in Afghanistan lays out the scale, scope, and causes of the problem. The assessment also indicates key elements of a potential response.

The Great Recession and Developing Countries : Economic Impact and Growth Prospects

Abstract: While globalization has been a powerful engine of economic growth over the past three decades, it has also posed new problems and challenges, especially for international economic policy coordination. In the past decade, the large and rapid increases in trade, remittances, and international financial flows across borders have been a strong incentive for economic growth, not only in East and South Asia but also in Latin America and Sub-Saharan Africa. And rapid and sustained economic growth in several low- and middle-income economies has been steadily altering the economic weights of different regions in the world economy. The ten case studies in this volume illustrate the wide range of effects of, and responses to, the global crisis in low-and middle-income economies. While the case studies do not constitute a statistically representative sample of the globe, they illustrate a broad range of experiences in the wake of the crisis and give insights into both the benefits and challenges of globalization. The use of a common methodology in preparing the cases unquestionably facilitates cross-country comparisons and helps identify areas where more study is needed to increase the understanding of the current problems of, and prospects for, developing countries.

Postcrisis Growth and Development : A Development Agenda for the G-20

Abstract: This volume consists of papers presented at the Korea-World Bank High Level Conference on Post-Crisis Growth and Development.The volume is organized as follows. In chapters one and two, II SaKong, chairman of the Presidential Committee for the Group of Twenty (G-20) Seoul Summit, and Ngozi Okonjo-Iweala, managing director of the World Bank, provide convincing arguments on the importance of integrating development into the G-20 agenda, the need to give voice to non-G-20 developing countries, and the key role Korea can play as a bridge between developed and developing countries. Chapters' three to six cover broad development themes. Justin Yifu Lin's paper (chapter three) examines the emergence of multipolar growth in the postcrisis period and the reforms needed to support regional spillovers; Zia Qureshi's paper (chapter four) argues for including development issues in the G-20 growth framework and mutual assessment process and therefore more systematically into G-20 policy discussions; Wonhyuk Lim (chapter five) provides an in-depth analysis of Korea's development experience that illustrates how a low-income country can transform itself into an advanced economy; and the papers by Delfin Go and Hans Timmer and by Jomo Kwame Sundaram (chapter six) provide differing but complementary views on the impact of the global crisis on achieving the Millennium Development Goals (MDGs) by 2015 and what it will take to regain momentum toward their completion. Chapters' seven to ten review specific sectoral policies and actions needed to achieve strong, sustainable, and balanced growth. Chapter seven by Bernard Hoekman and John Wilson discusses aid for trade and recommitting to the Doha agenda; chapter eight by Marianne Fay, Michael Toman, and co-authors looks at infrastructure and sustainable development; chapter nine by Christopher Delgado and co-authors argues for multilateral action on agriculture and food security. Finally, chapter ten by Peer Stein, Bikki Randhawa, and Nina Bilandzic advances inclusive finance as a topic for the G-20 agenda. The volume concludes with a matrix of policy actions summarizing the main action points presented in the sectoral papers (appendix A) and data tables of selected economic and social indicators for both G-20 and non-G-20 countries (appendix B).

Contemporary Migration to South Africa : A Regional Development Issue

Abstract: This book is a call to rethink migration regimes in Southern Africa in ways that are more explicitly developmental and focused on poverty. Current policy debates are devoted almost exclusively to border control and policing; they pay only lip service to local and regional developmental strategies. This volume takes a different approach. Its contributors are scholars who are convinced that empirically based policy making stands a better chance of succeeding than untested preconceptions that risk reproducing recipes that have failed elsewhere. The book is therefore strong on empirics, providing a wealth of original data. It also reframes existing approaches and reexamines secondary data from fresh perspectives. Although the focus remains South Africa, the book reflects South Africa's regional role and draws on data from across the Southern African Development Community (SADC). This book broadens the 'migration' agenda beyond the boundaries of migration studies and migration policy silos. This book is intended to become a resource for a range of audiences in Southern Africa and the continent.

Food, financial crises, and complex derivatives : a tale of high stakes innovation and diversification

Abstract: The 2008 food price crisis was an integral part of the financial crisis. In fact, the food price crisis was the second crisis in a chain of events that began in 2007 with the mortgage crisis, and culminated in the worst financial crisis since the Great Depression. Contrary to what was generally believed in 2008, developing countries, particularly food-importing countries, were part of the early wave of the financial crisis via food price increases, and later suffered another wave via the real sector. The events leading up to the food crisis were global and complex in nature. As a result, as the G-20 discusses solutions to the financial crisis, any new framework must include developing countries, especially low-income countries. In addition, developing countries, especially in Africa, must pay close attention to the work of the Financial Stability Board (FSB) and its recommendations on financial market reform, and over-the-counter (OTC) derivatives in particular, because these reforms will have important consequences for their housing, food, fuel, financial markets, and ultimately their growth and poverty reduction objectives.