Showing papers in "World Bank Publications in 2014"

The Inverting Pyramid : Pension Systems Facing Demographic Challenges in Europe and Central Asia

Abstract: Europe's pension systems -among the most celebrated features of its social welfare model-- face tremendous challenges. With only 11 percent of the world's population, Europe spends about 60 percent of global outlays on social protection, largely in pensions. In many countries, pension rules have encouraged people to retire sooner, while enjoying longer lives. Payroll taxes on a continuously expanding contributory base have financed these benefits. This model of pension provision is now being severely tested as pension systems reach maturity, while the population is aging and the labour force is starting to shrink. Measures to enable a continued tradition of providing old age security will include: raising retirement ages such that pensions are provided in the last 15 years of life, when work capacity traditionally diminishes encouraging immigration to help fill the declining work force rationalising pension spending, putting priority on preventing old age poverty, and encouraging savings to help provide the more comfortable retirement that individuals have come to expect. Some measures may be more appropriate in particular countries than others, yet undertaking all of them will likely require less drastic changes in any one of them. The specific choices will need to be discussed and agreed among each country's own population, and be accompanied by enabling changes in pension policy, tax policy, financial markets policy, and labour policy. The fundamental issue is that, with these changes, the important achievements of European social policy can withstand the demographic onslaught and continue to provide old age security for generations to come.

Global value chains in the current trade slowdown

Abstract: Real growth in global trade has decelerated significantly since its sharp recovery in 2010. Year-on-year growth in global real trade1 decelerated from 13.3 percent at the end of the first quarter of 2010, to 9.9, 3.1, and 0.5 percent at the end of the first quarters of 2011, 2012, and 2013, respectively, while picking back up to 3.9 percent in the year leading up to the fourth quarter of 2013. This aggregate deceleration in global trade includes absolute declines in real trade for many product categories and regions. In the wake of the great trade collapse of 2008-9, understanding of the behavior of trade in slowdowns has improved. Among the many explanations offered for the great trade collapse, including explanations related to uncertainty, trade financing, and new protectionist measures by governments, there has been a significant focus on whether the emergence of global value chains (GVCs) in international trade, and their behavior, are a contributing factor in trade slowdowns.

Making cross-border banking work for Africa

Abstract: Cross-border banking has been a critical part of Africa's financial history since colonial times. While the period after independence saw a wave of nationalization across the continent, with many of the colonial banks exiting, this trend was reversed in the 1980s with the arrival of financial liberalization. Failing state-owned and private banks were sold mostly to global investors or multinational banks. Increasing international and regional economic integration, including of financial services, and deregulation further increased the number of foreign banks and by the mid-2000s many African banking systems were yet again dominated by foreign banks. This introductory chapter documents trends in cross-border banking in Africa and the increasing shift in the composition of foreign banks in Africa. The next section provides a short overview of financial systems in Africa to set the stage. Section two characterizes the population of cross-border banks operating in Africa today, their expansion across the continent, and their importance in the host countries. Section three explores the reasons for the expansion of cross-border banking on the continent. Section four assesses the different business models banks use to expand across the continent as well as the characteristics of their group structures. Section five concludes.

Latin American Entrepreneurs : Many Firms but Little Innovation [El emprendimiento en América Latina : muchas empresas y poca innovación]

Abstract: Entrepreneurship is a fundamental driver of growth, development, and job creation. While Latin America and the Caribbean has a wealth of entrepreneurs, firms in the region, compared to those in other regions, are small in size and less likely to grow or innovate. Productivity growth has remained lackluster for decades, including during the recent commodity boom. Enhancing the creation of good jobs and accelerating productivity growth in the region will require dynamic entrepreneurs. Latin American Entrepreneurs: Many Firms but Little Innovation studies the landscape of entrepreneurship in Latin America and the Caribbean. Utilizing new datasets that cover issues such as firm creation, firm dynamics, export decisions, and the behavior of multinational corporations, the book synthesizes the results of a comprehensive analysis of the status, prospects, and challenges of entrepreneurship in the region. Useful tools and information are provided to help policy makers and practitioners identify policy areas governments can explore to enhance innovation and encourage high-growth, transformational entrepreneurship.

Drivers of corruption : a brief review

Abstract: This report provides an overview of arguments explaining the risk of corruption. Corrupt acts are subject to decision making authority and assets available for grabbing. These assets can be stolen, created by artificial shortage, or become available as the result of a market failure. Assets that are especially exposed to corruption include profits from the private sector, revenues from the export of natural resources, aid and loans, and the proceeds of crime. Whether or not opportunities for corruption are exploited depends on the individuals involved, the institution or society they are part of, and the law enforcement circumstances. Corruption usually persists in situations in which players are aware of the facts but nonetheless condone the practice. Absence of reaction can result from information asymmetries (in which the people who are supposed to act are not aware of the need to act), coordination failure, patronage-determined loyalty, and incentive problems at the political level. This review of results and insights from different parts of the scholarly literature on corruption focuses on areas where research can guide anticorruption policy. The report also describes a number of corruption-related challenges in need of more attention from researchers.

Public research organizations and agricultural development in Brazil : how did Embrapa get it right?

Abstract: One of the most extraordinary events in Brazil in the past 30 years has been the country's agricultural revolution. In the 1970s, food scarcity was a concrete risk in a country experiencing rapid urbanization and middle class expansion. Food scarcity concerns reemerged during the following decade when short-lived spikes in real wages temporarily increased households' demand for those goods. One of the government's initiatives to address Brazil's stagnant agriculture sector and food scarcity was Empresa Brasileira de Pesquisa Agropecuaria (Embrapa). Embrapa has succeeded in adapting, creating, and transferring technologies to Brazilian farmers for the past 30 years, helping transform Brazil into one of the world's largest food exporters.

Surge in solar-powered homes : experience in off-grid rural Bangladesh

Abstract: Bangladesh has made remarkable progress in raising living standards and reducing poverty, particularly in previously lagging regions. Rapid solar home system (SHS) expansion in Bangladesh to some 3 million rural households by early 2014 has drawn the attention of donors and governments of other countries. The book’s broad aim is twofold: (a) to assess the welfare impact of SHS on households, and (b) to evaluate the present institutional structure and financing mechanisms in place, noting that households want cheaper systems and good quality service while suppliers require a reasonable market-based profit to stay in business. The study entailed an intensive empirical investigation based on both primary and secondary data. The primary data consisted mainly of a large-scale, nationally representative household survey with appropriate geographic spread. Conducted in 2012 by the Bangladesh Institute of Development Studies (BIDS) and assisted by the World Bank, the household survey was designed to examine SHS benefits and costs. The book addresses a number of research issues, which are grouped according to general and gendered household impact, program delivery and monitoring of technical standards, market size and demand, and carbon emissions reduction. The book also analyzes household uses of solar-electric energy services. Typically, SHS models are used for lighting, powering fans and television sets, and charging mobile devices and other electrical equipment. Finally, the book evaluates the gender-disaggregated benefits and women's empowerment from SHS adoption. The gender analysis included two major research questions: (a) can the socioeconomic status of rural women be enhanced by increasing the opportunity to participate in alternative energy-service delivery, and (b) if SHS brings positive impacts in terms of social indicators, what additional efforts can supplement them to bring about a radical shift in gender roles and responsibilities. The book's findings show that better household lighting improves household welfare both directly and indirectly. The book has eight chapters. Chapter one is introduction. Chapter two describes the current status of Bangladesh's SHS expansion program, including salient features of system operation, as well as program delivery and financing. Chapter three reviews the role of electrification in rural development and international experience in using SHS as a complementary solution in remote off-grid areas. Based on the survey data findings, chapter four identifies the major drivers of SHS adoption and system capacity selection at the household and village level, while chapter five discusses and estimates the welfare benefits. Chapter six focuses on SHS market analysis and role of the subsidy, including consumers' willingness to pay and the potential impact of subsidy phase-out. Chapter seven turns to the quality of partner organization (PO) service and other supply-side issues, along with market constraints to meet future demand. Finally, chapter eight offers policy perspectives and a way forward.

From the Bottom Up : How Small Power Producers and Mini-Grids Can Deliver Electrification and Renewable Energy in Africa [Quand la lumière vient d'en bas : Comment les petits producteurs d'électricité et les mini-réseaux peuvent promouvoir l'électrification rurale et les énergies renouvelables en Afrique]

Abstract: Most Sub-Saharan African countries try to promote rural electrification through both centralized and decentralized approaches. This guide focuses on the decentralized approach, providing practical guidance on how small power producers and mini-grid operators can deliver both electrification and renewable energy in rural areas. It describes four basic types of on- and off-grid small power producers, as well as several hybrid combinations that are emerging in Africa and elsewhere. The guide highlights the ground-level regulatory and policy questions that must be answered by electricity regulators, rural energy agencies, and ministries to promote commercially sustainable investments by private operators and community organizations. Among the practical questions addressed is how to design and implement retail tariffs, quality of service standards, feed-in tariffs, and backup tariffs. The guide also analyzes the regulatory implementation issues triggered by donor grants and so-called top-up payments. It provides a primer for nonengineers on interconnection and operating standards for small power producers connected to main grids and isolated mini-grids. It analyzes whether the option of small power distributors, used widely in Asia, could be employed in Sub-Saharan Africa, and addresses two often ignored questions: what to do “when the big grid connects to the little grid” and how to practice light-handed regulation. Finally, the guide considers the threshold question of when to regulate and when to deregulate tariffs. All these implementation issues are presented with specific ground-level options and recommendations rather than just general pronouncements. In addition, to make the discussion more useful to practitioners, the guide provides numerous real-world examples of successful and unsuccessful regulatory and policy actions taken in Kenya, South Africa, and Tanzania, as well as Nepal, Sri Lanka, and Thailand. Many of the decisions are inherently controversial because they directly affect the economic interests of investors and consumers. The guide highlights rather than hides these real-world controversies by drawing upon candid comments of key stakeholders—national utility managers, mini-grid operators, government officials, and and consumers.

Youth Employment in Sub-Saharan Africa [L’emploi des jeunes en Afrique subsaharienne - Rapport complet]

Abstract: Sub-Saharan Africa has just experienced one of the best decades of growth since the 1960s. Between 2000 and 2012, gross domestic product (GDP) grew more than 4.5 percent a year on average, compared to around 2 percent in the prior 20 years (World Bank various years). In 2012, the region's GDP growth was estimated at 4.7 percent- 5.8 percent if South Africa is excluded (World Bank 2013). About one-quarter of countries in the region grew at 7 percent or better, and several African countries are among the fastest growing in the world. Medium-term growth prospects remain strong and should be supported by a rebounding global economy. The challenge of youth employment in Africa may appear daunting, yet Africa's vibrant youth represent an enormous opportunity, particularly now, when populations in much of the world are aging rapidly. Youth not only need jobs, but also create them. Africa's growing labor force can be an asset in the global marketplace. Realizing this brighter vision for Africa's future, however, will require a clearer understanding of how to benefit from this asset. Meeting the youth employment challenge in all its dimensions, demographic, economic, and social, and understanding the forces that created the challenge, can open potential pathways toward a better life for young people and better prospects for the countries where they live. The report examines obstacles faced by households and firms in meeting the youth employment challenge. It focuses primarily on productivity, in agriculture, in nonfarm household enterprises (HEs), and in the modern wage sector, because productivity is the key to higher earnings as well as to more stable, less vulnerable, livelihoods. To respond to the policy makers' dilemma, the report identifies specific areas where government intervention can reduce those obstacles to productivity for households and firms, leading to brighter employment prospects for youth, their parents, and their own children.

The commodity super cycle : is this time different?

Abstract: Some analysts believe that the commodity price boom of the new millennium has played itself out. However, natural resource based commodity prices (with the exception of shale gas and its downward pressure on United States (U.S.) natural gas prices) have remained high by historical records over the last few years, despite the feeble global economic recovery. The commodity price spike that started at the end of the 1990s has not been significantly affected by the global downturn, with average prices similar to 2008 levels. Indeed, commodity prices have occasionally shown signs of reviving more quickly than the global economic output level. So the question is: have one entered a phase of descending commodity prices? This note argues that it may be too soon to say that the commodity super-cycle phenomenon is a thing of the past.

Back to Work : Growing with Jobs in Europe and Central Asia

Abstract: Creating more and better jobs is arguably the most critical challenge to boosting shared prosperity in ECA. This report answers two questions: How can the countries create more jobs? Should there be specific policies to help workers access those jobs?. In answering them, the report examines the role of reforms, firms, skills, incentives and barriers to work, and labor mobility through the lens of two contextual factors: the legacy of centralized planned economies and the mounting demographic pressures associated with rapid aging in some countries and soaring numbers of youth entering the workforce in others. The main findings of the report are: i) market reforms pay off in terms of jobs and productivity, although with a lag; ii) a small fraction of superstar high-growth firms, largely young, account for most of new jobs created in the region- thus, countries, especially late reformers, need to unleash the potential of high levels of latent entrepreneurship to start-up new firms; iii) skills gaps hinder employment prospects, especially of youth and older workers, due to the inadequate response of the education and training system to changes in the demand for skills; iv) employment is hindered by high implicit taxes on work for those transitioning to work from inactivity or unemployment and barriers that affect especially women, minorities, youth and older workers; and, v) low internal labor mobility prevents labor relocation to places with greater job creation potential. The report argues that to get more people back to work by growing with jobs, countries need to regain the momentum for economic and institutional reforms that existed before the crisis in order to: (i) lay the fundamentals to create jobs for all workers, by pushing reforms to create the enabling environment for existing firms to grow, become more productive, or exit the market and tap on entrepreneurship potential for new firms to emerge and succeed or fail fast and cheap; and (ii) implement policies to support workers so they are prepared to take on the new jobs being created, by having the right skills, incentives and access to work, and being ready to move to places with the highest job creation potential.

Trade policy and food security : improving access to food in developing countries in the wake of high World prices

Abstract: Because global population is expected to surpass 9 billion by 2050, food security remains among the most pressing development issues of our time. The physical and economic access of not only nations, but also individuals and households to sufficient and nutritional foods is linked with poverty. Inadequate access to technology, land, water, and other agricultural inputs, as well as climate and other environmental factors, routinely imperils the ability of poor people to produce or secure sufficient food. Furthermore, the obligation of governments to nurture an enabling environment for food security based on economic openness, functioning markets, and sound policy making has been a development challenge too often unmet. Much of the increase in world food demand in the coming decades as a result of population growth will continue to originate in developing countries where, according to the United Nations, nearly one billion people (or about 16 percent of the world’s population) still go hungry every day. Demand for food in China alone will account for 46 percent of the increase in global food consumption by 2050. At the same time, many developing countries are experiencing rapid urbanization and rising incomes that have been accompanied by an evolving diet away from traditional crops toward more animal-based foods. These trends are altering the food production landscape and calling into question how the world can best adjust to this new reality.

Why is reducing energy subsidies a prudent, fair, and transformative policy for Indonesia?

Abstract: If there was one bold and timely policy to transform Indonesia, this is it. In 2012, spending on energy subsidies claimed more than one-fifth of the central government's budget, that is, more than three times the allocation for infrastructure such as roads, water, electricity and irrigation networks, and three times the government wide spending on health. In addition to crowding out high-priority spending, subsidies disproportionately benefit households at the top of the income distribution and throw sand on Indonesia's remarkable record of prudent macroeconomic management. Not to mention how subsidies create disincentives for saving energy, developing alternative energy sources, and reducing carbon dioxide emissions. Given their adverse short, and long-term economic consequences, reducing them, with the appropriate safeguards to protect the poor, is a fair, prudent, and transformative policy.

Understanding the poverty impact of the global financial crisis in Latin America and the Caribbean

Abstract: Any time there is an economic crisis; there is the very real potential that its consequences for human welfare will be severe. Thus when the developed world plunged into such a crisis in 2008 and growth rates in Latin America and the Caribbean (LAC) began to plummet, fears rose that the region will suffer rising unemployment, poverty, malnutrition, and infant mortality, among other things. This study confirms and quantifies many of the sobering links between crisis and poverty, but it also shows how powerful good policy in stable times is in attenuating those links. It thus underscores the need for sound growth policies, good macro prudential care, fiscal balance, low debt, reasonably flexible exchange rates, and the like to help prevent and manage crises. It equally shows how effective social protection responses built on adequate existing programs can be. This study documents the effects of the 2008-09 global financial crisis on poverty in 12 countries in the LAC region, and it comes away with six big picture messages, each with much nuance and many caveats that are explained briefly in this overview.

World Investment and Political Risk 2013

Abstract: This report seeks to understand investors' perceptions of political risk as they affect Foreign Direct Investment (FDI), as well as the role of the political risk insurance industry in mitigating these risks. It is found that investors continue to rank political risk as a key obstacle to investing in developing countries, though investors classify macroeconomic instability as their top concern over the medium term. The report confirms a continued increase in the use of political risk insurance as a risk-mitigation tool and reaffirms the industry's health and resilience. Providers have met the challenge of these years with new products and innovative ways to use existing tools as well as substantial capacity to meet growing demand. It also looks at breach of contract risk and its causes. The research helps guide investors and insurers when they participate in a project that involves a contract with a developing-country government entity. As private and public sectors continue to increase their cooperation in service of bringing important investments to fruition, this research is particularly timely.

Trade and Transport Corridor Management Toolkit

Abstract: Trade and transport corridors—major routes that facilitate the movement of people and goods between regions and between countries—have existed for millennia They enable regions and countries to offer high-capacity transport systems and services that reduce trade and transport costs by creating economies of scale Regional corridors are particularly important to landlocked countries, often providing the only overland routes to regional and international markets Despite a long and complex history, guidance is often lacking on how to design, determine the components to include, and analyze the impact of corridor projects The Trade and Transport Corridor Management Toolkit fills this void The Toolkit synthesizes the experiences of the World Bank and other development agencies in assessing, designing, implementing, and evaluating the impact of trade and transport corridor projects It saves project developers the task of looking for the best available tools and ensures greater consistency to facilitate comparison and benchmarking The Toolkit will also be of immense value to policy makers in provincial and national governments as well as regional economic institutions, for several reasons: • Corridors affect the space economy of countries; they are best developed with clear estimates of the spatial impacts that can be expected • A corridor system has multiple components, including infrastructure (roads, railways, ports), transport and logistics services, and regulations; it is important to appreciate the linkages between them, particularly as the overall performance of a corridor is determined by the weakest component • Many parties with varying interests and motivations have a stake in corridor development The Toolkit argues for their full participation in corridor development processes and operations The best functioning modern corridors in the world did not happen by accident; they are often the results of coordinated development and cooperation over many years The general principles outlined in this Toolkit should help project teams, government officials, logistics service providers, and the trade community to better appreciate both the importance of good corridor project design and the challenges of, and possibilities from, improving corridor performance

Universal Health Coverage for Inclusive and Sustainable Development : A Synthesis of 11 Country Case Studies [Une couverture sanitaire universelle pour un développement durable inclusive : Une synthèse de 11 études de cas pays]

Abstract: The goals of Universal Health Coverage (UHC) are to ensure that all people can access quality health services, to safeguard all people from public health risks, and to protect all people from impoverishment due to illness, whether from out-of-pocket payments for health care or loss of income when a household member falls sick. Countries as diverse as Brazil, France, Japan, Thailand, and Turkey that have achieved UHC are showing how these programs can serve as vital mechanisms for improving the health and welfare of their citizens, and lay the foundation for economic growth and competitiveness grounded in the principles of equity and sustainability. Ensuring universal access to affordable, quality health services will be an important contribution to ending extreme poverty by 2030 and boosting shared prosperity in low income and middle-income countries (LMICs), where most of the world s poor live.

Agricultural Land Redistribution and Land Administration in Sub-Saharan Africa : Case Studies of Recent Reforms

Abstract: The six case studies in this book were prepared as background studies for a synthesis report on land administration and reform in Sub-Saharan Africa (SSA). Collectively they cover two main areas of land governance: reforms in redistributing agricultural land; and reforms in land administration. The problems in land ownership inequality and poor land administration are defined and the question of why reforms are necessary is addressed. The first two case studies focus on reforms in redistributing agricultural land in Malawi and South Africa. The Reforms in four thematic areas of land administration are addressed in the remaining case studies, encompassing experience from various countries as follows: (1) decentralizing land administration (Ethiopia, Ghana, Tanzania, and Uganda); (2) developing post-conflict land administration systems (Liberia and Rwanda); (3) reengineering and computerizing land information systems (Ghana and Uganda); and (4) improving management of government land through land inventories (Ghana and Uganda). The common elements between sometimes quite disparate experiences provide lessons of relevance to other SSA countries contemplating similar reforms.

Valuing Services in Trade : A Toolkit for Competitiveness Diagnostics

Abstract: The Service Trade Competitiveness Diagnostic (STDC) Toolkit is part of a larger agenda of trade competitiveness work developed by the World Bank’s International Trade Unit in recent years. Services are a key input in countries’ trade competitiveness, as well as a new source of trade diversification, making it critical to understand what factors and main constraints matter most for services competitiveness. The Toolkit provides a framework, guidelines, and set of practical tools to conduct a thorough analysis and diagnostic of trade competitiveness in the services sector with a methodology that sheds light on a country’s ability both to export services and improve its export performance through policy change. This Toolkit is designed to be used in a modular way. Either a full country diagnostic can be undertaken or various parts of the toolkit can be used to address specific questions of interest, whether they pertain to existing services performance, the potential for expansion and growth in services trade, or policy options to increase competitiveness in services trade. The output of an STCD can be used to assess either the overall performance of a country’s services sector or the performance of individual sub-sectors. This Toolkit complements the analytical framework for trade in goods provided by the Trade Competitiveness Diagnostic Toolkit (World Bank, 2012), and allows policymakers and experts in developing countries to better integrate services into their overall trade strategies. In addition, it will also be of interest to international organizations and development practitioners in both policymaking institutions and academia.

Reforming subsidies in Morocco

Abstract: The cost of the subsidy system in Morocco peaked at 6.6 percent of gross domestic product (GDP) in 2012, an amount larger than the country's total investment budget for that year. Direct subsidies to households in 2013 (October 2013 prices) are estimated at DH34.4 billion (US$4.1 billion, or 3.9 percent of GDP). Replacing direct subsidies with a universal per capita annual cash transfer of DH749 (US$90) would leave the poverty rate unchanged, while reducing direct subsidies to DH24.6 billion (2.8 percent of GDP). It is possible to reduce direct subsidies further by targeting only a part of the population, down to DH2.4 billion (0.3 percent of GDP), if only the poor were targeted. However, to implement selective targeting, the government of Morocco will need to substantially strengthen its social protection system.

Access to Finance, Product Innovation, and Middle-Income Growth Traps

Abstract: After experiencing an initial period of rapid growth, many developing countries have fallen into the middle-income 'trap', stuck between low-wage, low-technology markets and high-income, innovation-based developed economies. As previous literature has demonstrated (Agenor and Canuto 2012), public policies aimed at improving access to advanced information and telecommunications (ITC) infrastructure, protecting intellectual property rights, and reforming labor markets to reduce rigidities can help developing countries avoid such low-growth equilibrium. As a complement to these policies, which create an enabling environment for learning and innovation, this note draws on more recent work (Agenor and Canuto 2014) that emphasizes the role of access to finance in supporting the innovative activities that in turn can help countries climb the ladder to high-income status. In particular, this note argues that inadequate access to finance has an adverse effect on innovation, directly, through the financing of fewer research and development (R&D) projects, and also indirectly, as fewer individuals may choose to invest in the skills necessary to work in R&D fields. These dual effects highlight the need for public policies aimed at alleviating credit market imperfections to promote the production of ideas and increase the incentives for workers to invest in higher skills. An empirical comparison of countries in East Asia that were able to escape the middle-income trap with less successful counterparts in Latin America provides a poignant example of how access to finance influences innovation outputs and long-term economic growth.

Sovereign Wealth Funds and Domestic Investment in Resource-Rich Countries: Love Me, or Love Me Not?

Abstract: Sovereign wealth funds (SWFs) represent a large and growing pool of savings. An increasing number of these funds are owned by natural resource, exporting countries and have a variety of objectives, including intergenerational equity and macroeconomic stabilization. Traditionally, these funds have invested in external assets, especially securities traded in major markets. But the persistent infrastructure financing gap in developing countries has motivated some governments to encourage their SWFs to invest domestically. Is it appropriate to use SWFs to finance long-term development needs? Does it matter whether such investments are domestic or foreign-held assets? This note considers these issues, particularly the controversial question of using SWFs to finance domestic projects, motivated partly by SWFs' perceived importance for development.

Too global to fail : the World Bank at the intersection of national and global public policy in 2025

Abstract: This report is about global public goods (GPGs), particularly those related to the environment, in the context of the global development process. This concerns the long-term sustainability of development, as the distinction between developing and developed countries is expected to continue for the foreseeable future. This report contends that global sustainability depends (indeed, consists of) the provision of certain GPGs, and that the prevailing approach to development assistance does not sufficiently recognize this fact. A key question is whether the country-ownership model is even compatible with global sustainability. A second key question is whether the political will exists to make the provision of GPGs an explicit and central objective of official development assistance, especially in the face of objections from those who believe aid should be solely concerned with the eradication of poverty through national or community-level interventions. A third key question concerns the mobilization and use of resources for the World Bank's work to support the provision of GPGs. The Bank is a major player on many regional and global issues, but its work at these levels is usually enabled by donor contributions, most often in the form of grants, targeted for a particular purpose. International development assistance needs to undergo a major transition, such that it takes as an explicit and principal objective the provision of GPGs important for development. The World Bank can play a leadership role in this transition, working within new kinds of coalitions but not abandoning the fundamentals of its operating model. Some of the most important GPGs are provided through the separate and cumulative actions of multiple countries, so the challenge for the Bank is to find ways of investing strategically and sharing knowledge across countries, while keeping faith with their national development strategies, so as to achieve maximum global impacts. The World Bank can also play a unique role in stimulating the private provision of GPGs through risk-sharing and market creation.

Resource Financed Infrastructure : A Discussion on a New Form of Infrastructure Financing [Infrastructures financées par des ressources naturelles : Examen d'un nouveau mode de financement des infrastructures]

Abstract: This report, consisting of a study prepared by global project finance specialists Hunton and Williams LLP and comments from six internationally reputed economists and policy makers, provides an analytical discussion of resource financed infrastructure (RFI) contracting from a project finance perspective. The report is meant as a forum for in-depth discussion and as a basis for further research into RFI's role, risks, and potential, without any intention to present a World Bank, supported view on RFI contracting. It is motivated by the conviction that if countries are to continue to either seeks RFI or receive unsolicited RFI proposals, there is an onus on public officials to discern bad deals from good, to judge unavoidable trade-offs, and to act accordingly. The report aims to provide a basis for developing insights on how RFI deals can be made subject to the same degree of public policy scrutiny as any other instrument through which a government of a low or lower-middle-income country might seek to mobilize development finance. The report also feeds into the global mainstreaming of 'open contracting,' providing citizens with the means to engage with governments and other stakeholders on how nonrenewable resources are best managed for the public benefit. In the case of RFI, there is a very direct link made between the value of resources in the ground and the development of (infrastructure) benefits. It should not be a surprise, therefore, that the revised Extractive Industries Transparency Initiative (EITI) Standard, adopted in May 2013, addresses extractive transactions with an infrastructure component, including RFI.

Information and communications in the Chinese countryside : a study of three provinces

Abstract: Improving access to information and communications technology (ICT) and related services in the countryside, or rural informatization, is a long-standing Chinese policy objective. National and provincial governments and China's ICT industry have invested significantly in rural infrastructure and facilities over the past decade with the goal of reducing the country's digital divide. The purpose of this study, undertaken at the request of the Chinese government, is to review this experience and inform future approaches to rural informatization. The study focuses on three provinces with different socioeconomic characteristics: Shandong, Jilin, and Guizhou. The scope of the study included: (a) a demand survey to assess rural ICT access and usage; (b) a review of ICT in primary and secondary schools; (c) a survey of public libraries, including the extent of ICT use in rural libraries; and (d) an assessment of specific ICT interventions to examine how they have affected rural users. Much of the published information about rural ICT development in China describes infrastructure deployment, with top-level target monitoring statistics. This report sheds light on findings at the grassroots level through surveys and interviews, exploring the nature of demand for ICT services from rural populations, and considers whether this demand is being adequately addressed. Though there are differences in infrastructure and access across the three provinces, the structural challenges are similar. The lessons learned are not only consistent across the three provinces but also similar to research findings on rural informatization in other provinces. Thus, they are likely to be relevant for making recommendations about future approaches in other rural areas in China.

Faith-Based Schools in Latin America : Case Studies on Fe Y Alegria [Escuelas religiosas en América Latina : estudios de caso sobre Fe y Alegría]

Abstract: Many observers consider Fe y Alegria a successful organization, but very few rigorous evaluations have been conducted. This volume is devoted to an assessment of the performance and selected aspects of the management and pedagogical practices of Fe y Alegria, a federation of Jesuit schools serving approximately one million children in 20 countries, mostly in Latin America. The available quantitative evidence suggests that the federation’s schools often do reach the poor, and that students in Fe y Alegria schools tend to perform as well on test scores, if not slightly better than comparable students in other schools. Qualitative data and case studies suggest that the factors that lead to good performance are complex and related not only to the types of “inputs” or resources used by the schools in the education process, but also to the management of these resources, and the ability to implement and test innovative programs. Other factors that support this argument include the capacity and flexibility to implement and test innovative programs that take into account the local realities. This volume will be of interest to researchers, policy makers and practitioners working in service provision through public-private partnerships and especially by faith-based organizations.

Does FDI work for Africa? Assessing local spillovers in a world of global value chains

Abstract: The extent to which developing countries benefit from foreign direct investment (FDI) depends on whether they are able to realize the productivity-enhancing benefits of knowledge and technology spillovers from foreign investors. To date, the experiences in Sub-Saharan Africa have been largely disappointing. This is perhaps not surprising, bearing in mind the complex interplay of factors needed for spillovers to emerge. On top of the challenges of supply side capacity and the host country's policy environment, the willingness and capacity of foreign investors to support spillovers vary hugely across sectors and firms, and are shaped by the dynamics of the global value chains (GVCs) in which they operate. This note summarizes the main findings from the new World Bank book Making Foreign Direct Investment Work for Sub-Saharan Africa and discusses the implications for policy makers hoping to harness the potential of FDI for better development outcomes.

Broadband Networks in the Middle East and North Africa : Accelerating High-Speed Internet Access

Abstract: Just as the steam engine was the driving force behind the Industrial Revolution, broadband Internet is today seen as critical to the transition to knowledge-intensive economies across the world As a general purpose technology, broadband Internet is considered as a fundamental driver of economic growth and social development, releasing the innovative potential and energy of previously disenfranchised members of the population Many of the countries in the Middle East and North Africa region (MENA) now recognize that broadband Internet is crucial to their efforts to reduce poverty and create job opportunities, especially for their young populations and for women The report re-emphasizes the important contribution that broadband Internet can make and assesses the status of existing infrastructure in at least 18 MENA countries While there is significant potential across the region, however, the take-up of broadband Internet has been slow, and the price of broadband service is high in many countries In large part, this stems from market structures that, too often, reflect the past when telecommunications were treated as a monopoly utility service The report finds that there are gaps in infrastructure regionally with no connectivity between neighboring countries in some cases Similarly, there are gaps within countries exacerbating the (digital) divide between rural and urban areas The report examines the regulatory and market bottlenecks that are hampering the growth of the Internet in these and other MENA countries: the five North African countries (Algeria, Egypt, Morocco, Libya, Tunisia); the six Mashreq countries (the Islamic Republic of Iran, Iraq, Jordan, Lebanon, Syria, and the West Bank and Gaza economy); the six Gulf countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates); and Djibouti and the Republic of Yemen The report provides policy and regulatory options for increasing effective use of existing fixed and mobile infrastructure as well as alternative infrastructure networks such as power grids and railroads It explains the benefits of effective cross-sector infrastructure construction frameworks, highlighting the need to adjust market structures to foster competitive behavior among service providers to bring down prices and stimulate the demand for value-added services to drive future broadband development

Entrepreneurship in Latin America: A Step Up the Social Ladder?

Abstract: This book looks at both the potential and limits of policies to promote entrepreneurship as an important vehicle for social mobility in Latin America and the Caribbean. Who are the region's entrepreneurs? They tend to be middle-aged males with secondary and, often, tertiary education who represent only a small segment of the economically active population in the six countries considered in this book. They come from families in which a parent is, or was, an entrepreneur. In fact, a parent's occupation is more important in the decision to become an entrepreneur than a parent's wealth, income or education. Middle class entrepreneurship tends to dominate the sample in part since this is the majority class in society. However, as a percentage of each social class, entrepreneurship tends to be higher in the upper class, followed by the middle and lower class. Entrepreneurs concentrate in micro enterprises with fewer than five employees. They enjoy greater social mobility than employees and the self-employed, but this mobility is not always in the upward direction. Entrepreneurs face multiple obstacles including stifling bureaucracy, burdensome tax procedures, and lack of financing, human capital, technological skills, and supportive networks. The support of family and friends and a modicum of social capital help cope with these obstacles to entrepreneurship.

Is aging bad for the economy? Maybe

Abstract: The world's aging population is expected to shape the future of economies across the globe. Without behavioral adaptation by current and future generations, this demographic transformation is likely to slow down economic growth. However, aging will also induce behavioral adjustments in savings and labor force participation. Will these adjustments be large enough to reverse the negative effects of demographic change? The answer depends on a number of conditions. This note suggests that determining whether aging is driven by an increase in longevity or by a decrease in fertility is important for understanding the size and direction of these demographic effects. Moreover, the type of unfunded social security system that exists in the economy could also influence the net effect of aging.