The variation in investment among developing countries is truly remarkable. Over the course of the 30-year period between 1980--2010---a period of relative calm in the global economy that is often referred to as the "Great Moderation"[*]---the investment rate in developing countries ranged from a whopping 90 percent (Armenia in 1990) to a dismal 1 percent (Liberia in 2003). This variability is more than twice that of variance in economic growth---a topic that has preoccupied many more generations of researchers---and much of this variability stems from the developing world.
Mettre fin à la pauvreté
Il n'y a pas si longtemps, le concept lui-même semblait inimaginable, voire ridicule. Pourtant, à mesure que 2030 approche, l'objectif consistant à mettre fin à l'extrême pauvreté semble à portée de main. Nous avons appris que, en tant que citoyens du monde, il est de la responsabilité de chacun de faire en sorte que tout le monde ait accès à… eh bien, tout ! Eau potable, assainissement, éducation, égalité des chances, tout !
L'action naît de la connaissance. Si les gens n'ont pas conscience que les choses doivent changer, rien ne changera jamais. C'est dans cet objectif que nous avons mis en place une nouvelle initiative visant à sensibiliser le public aux questions de pauvreté, #Music4Dev (« Musique pour le développement »), qui propose à des artistes du monde entier de faire connaître leur musique en se servant de la Banque mondiale comme d'une scène, littéralement.
La richesse mondiale a progressé de 66 % (passant de 690 000 milliards de dollars à 1 143 000 milliards de dollars en dollars constants de 2014 aux prix du marché). La part de la richesse mondiale détenue par les pays à revenu intermédiaire augmente : elle est passée de 19% à 28% entre 1995 et 2014, tandis que la part des pays à revenu élevé de l'OCDE est tombée de 75% à 65%. Lire la suite »
In many developing cities, transport infrastructure – whether it be roads, metro systems or BRT - is not growing fast enough, and cannot keep up with the ever-increasing demand for urban mobility. Indeed, constructing urban transport infrastructure is both expensive and challenging. First, many cities do not yet have the capacity to mobilize the large amount of funds needed to finance infrastructure projects. Second, planning and implementing urban transport infrastructure projects is tough, especially in dense urban areas where land acquisition and resettlement issues can be extremely complex. As a result, delays in project implementation are the norm in many places.
Therefore, solving urgent urban transport problems in these cities requires us to think outside the box. Fortunately, the rapid development of ICT-enabled approaches provides a great opportunity to optimize and enhance the efficiency of existing and new urban transport systems, at a cost much lower than building new infrastructure from the ground up.
So who is behind this brilliant idea? Actually, it is rather something that we all take for granted in developed countries, as well as some developing countries’ expressways or highways: the rest area.
We normally associate rest areas with a quick stop for food, gas or other necessities. But what if these rest areas could add even more value to transportation, and without huge expenses? This is precisely what the South Korean government did back in 2010 when it opened the first “Regional Buses to Regional Buses Transfer Centers,” utilizing rest areas along expressways. The idea was gestated at the Korea Transport Institute (KOTI), one of the partners of the World Bank’s Transport and ICT global practice.
Since 2010, rest areas have played an effective role as “sub-hubs,” or transfer centers for regional buses, which in turn have more than doubled the number of regional routes, increasing the accessibility to smaller cities, and all this without having to go through the capital Seoul, where there is often too much traffic and congestion.
We know that bus transport is a more effective transportation mode than individual cars, particularly in terms of moving more people and reducing congestion and pollution. But in Korea, as well as other countries, there are several reasons why bus transport is less favored than cars, but one of the most important is a lack of accessibility to smaller cities. That is to say, bus transport cannot provide door-to-door service. In fact, accessibility in regional bus transport is worse than within cities mainly because regional buses tend to operate mostly non-stop services between larger cities.
How can improved roads change peoples’ lives? How much do people benefit from road projects? Answering these seemingly simple questions is, in fact, much trickier than it appears.
We recently concluded an impact evaluation to measure the socio-economic impacts of World Bank-financed municipal road improvements on poor rural households in the state of Tocantins, Brazil. After 10 years of study, what were the results and lessons learned? And how did we go about conducting the evaluation?
The study followed a methodology traditionally used in impact evaluations in the social sector and was based on a precedent in Vietnam. Throughout the state, one of the least-developed and least-populated in Brazil, most municipal roads are unpaved with inadequate maintenance. The World Bank’s municipal roads project helped construct 700 concrete bridges and 2,100 culverts crossing rivers and streams, providing year-round access to remote populations that once couldn’t access municipal centers during rainy season.
The anticipated result chain of the project was as follows: improvement of physical accessibility would contribute to increase travel demand to markets, schools and health services. This would, in turn, contribute to improved education, better health and increased business opportunities. Finally, it would result in long-term household income growth.
Our study aimed at measuring these impacts through a “difference in differences with matching,” a method that compares a treatment group (population benefiting from the interventions) and a control group (population that does not), while ensuring similar socio-economic characteristics (or comparability) between groups. An “instrumental variables estimator” was then used to confirm the robustness of the results.
The results show positive socio-economic impacts to rural residents, as well as provides for several policy implications:
The day before I received the Governor’s phone call, I had ordered disclosure of full performance reports for all PPP projects on our website. This was the first time that any government had done that in Brazil. The particular project that the Governor had mentioned was a toll road that scored 83 percent in the previous trimester. This was a fantastic score from a technical perspective. Besides, the performance indicators that we used were created to maintain incentives for improvement over the life of the contract. It was never meant for the private party to score 100 percent. Unfortunately, the news reporter did not understand this and didn’t invest time to ask – so I received the governor’s call. At that moment I knew I had a very strong case to make.
From my experience of more than eight years managing transactions and capacity building programs in Latin America and Africa, a radical approach to transparency is the key to enable PPPs to deliver more and better infrastructure services. In other words, I am fully convinced that opacity is the shortest route PPP projects can take towards the expensive failures mentioned by Laurence in his inaugural blog post.
The crude truth is that opaque PPP policies serve a lot of interests, but almost none of them benefit service users or taxpayers. Here are some of the key points on transparency in PPPs, from my perspective:
Geographically and historically, Azerbaijan has often been at the crossroads: of trade routes, cultures, and influences. From a telecom policymaking standpoint, the country is currently at another important crossroad - this time having to choose from available regulatory approaches designed to pave the way for the high-speed broadband roll-out across the country.
Which regulatory framework is best to follow? Which country experience is closest to the needs of the Azerbaijani population and could provide for not only rapid but, more importantly, self-sustaining broadband market development?
- See related infographics and download the report, "Accelerating the Growth of High-Speed Internet Services in Azerbaijan: A Sector Assessment"
Over the last year I had a chance to analyze the Azerbaijani broadband market, with my objective being the formulation of advice on the best way to stimulate the broadband market growth. In this blog I would like to briefly outline two relevant models of fixed broadband market development, either of which, from a quick glance, could be considered appealing for Azerbaijan because of a positive market growth trajectory and low consumer prices (the full analysis will be published soon). The models I am referring to are competition-led and government-led market development approaches, in the analysis they are represented by experiences of two oil-exporting economies, similar to Azerbaijan - Norway and Qatar.
|East Asia and Pacific countries have more university graduates than ever, yet employers say they don't find the skills to match their needs.|
I moved to Bangladesh 3 years ago with a lot of excitement as I considered it a sort of mini-laboratory for development theory and practice.
My task was to oversee the Bangladesh portfolio from a social perspective. From day one, there was one issue that came up in almost all projects: land acquisition and resettlement. Once can expect this, given high population densities in a small country. Surprisingly, while there is a lot of debate about shortages of power and electricity for Bangladesh development, little attention is paid to the land issue. But all infrastructure has a footprint and access to land is complex.
This huge challenge was matched by a dearth of professionals to manage social risks. While the market for such services is growing, there was no institution to train people in those disciplines in the country. I could have continued to hire foreign consultants, but that didn’t seem very smart in the long run. So I thought: “let’s establish a course in a local university that would create that capacity over time and train a cadre of professionals capable of conducting a serious social impact assessment, carry out a good consultation process or design a solid resettlement action plan”. My intention was to fill a systemic gap. That could only happen over time, and it could only happen via local institutions.
And so I did.