Last Friday, the World Bank released its Country Policy and Institutional Assessment (CPIA) of low-income countries. While the assessments are mainly used to determine the allocation of concessional IDA resources to poor countries, they can also provide a useful picture of the evolution of policies and institutions in Africa, as a recent note by my colleagues Delfin Go and Vijdan Korman shows. They find that:
Over the past eight years, African countries’ performance is about average compared with East Asia and South Asia.
Within Africa, Cape Verde, Tanzania, Uganda and Ghana have consistently had strong CPIA scores, while Zimbabwe, Comoros, Central African Republic and Eritrea seem to be stuck at the low end of the scale.
Over the past five years, the biggest improvements in CPIA scores were registered by Ghana, Rwanda, Zambia and Mozambique, while Eritrea, Chad and Zimbabwe experienced the largest deterioration. Seven of Africa’s nine oil exporters (Angola and Nigeria were the exceptions) saw their CPIA scores decline.
For Africa as a whole, most of the improvement in policies and institutions was in the category called “economic management”—essentially macroeconomic and fiscal policies. The average scores on the other dimensions—structural policies, equity and social inclusion, and public management—stagnated. While some countries showed improvements along these other dimensions, an equal number of countries saw their scores go down.
In a previous blog I summarized our views on China’s growth prospects, developed while writing the World Bank’s recent China Quarterly Update economic report. We think that China is likely to continue to see respectable growth in a difficult global environment. At this important juncture for China and the world economy, what is the upshot of this for policymaking?
At any point in time, governments need to work on short-term macroeconomic policies and on more medium- and long-term policies. There are trade-offs. More attention to short-term policies typically means less attention to the policies and reforms that are important for the medium and long term. We think that, given that China has already put in place a forceful short-term stimulus that seems effective in keeping growth respectable, China can put more emphasis on the structural reforms to promote continued, sustainable growth.
There continues to be a lot of discussion in China whether GDP growth will reach the government target of 8 percent this year, and whether the government should put in place more stimulus measures, typically presumed to be the kind of infrastructure-oriented stimulus that characterizes the package already in place.
I think it would not be a good idea to add more traditional, infrastructure-oriented fiscal stimulus in 2009. Why?
One of the dilemmas voiced by anti-corruption agencies at the UNODC-CommGAP organized learning event on the role of communication in anti-corruption efforts last November was the challenge of working with the media. On the one hand, anti-corruption agencies understood the importance of media relations. On the other, many of them had had unpleasant experiences with journalists, leaving them frustrated and suspicious of the media profession as a whole.
The diaspora of developing countries can be a potent force for development for their countries of origin, through remittances, but more importantly, also through promotion of trade, investments, knowledge and technology transfers. The conference aims to consolidate research and evidence on these issues with a view to formulating policies in both sending and receiving countries.
About a month ago, I came across Changemakers.com (via Change.org’s Social Entrepreneurship blog), a neat website for people to connect and collaborate with others working – on all levels – to solve social problems. The website is an initiative of Ashoka, a nonprofit organization that works to support social entrepreneurship. Changemakers seems to act as a social network of sorts – through competitions, discussion forums and storytelling – for people who want to make a difference. Two aspects of the site quickly appealed to me.
Today we are releasing the report Governance Matters VIII, which includes the new update of the Worldwide Governance Indicators (WGI). Now collaborating from the Brookings Institution, I continue to take part in this research project with my former World Bank colleagues Aart Kraay and Massimo Mastruzzi.
These days, that title alone is probably enough to have most of you continue reading.
Pakistan's leap into international news headlines has mostly been a result of a series of unfortunate events. The global spotlight has also extended to Pakistan's education system, and the tone of that coverage has mirrored that of Pakistan’s other problems. A recent New York Times article described the growth of madrassas in southern Punjab, claiming that lack of access compelled citizens to turn to these schools as a last resort to educate their children.
Rather than contributing to this debate, I wanted to discuss education in Pakistan from a different angle by talking about the problem solvers. It seems like an appropriate time to write on these issues considering the recent World Bank approval of the Sindh and Punjab Education Sector Projects, two credits totaling over $650M to support the wide-scale education reform programs in these two major provinces.
Technology issues have always been at the forefront of the global climate change debate. It is even suggested that just like the food crises of 1960 triggered the need for a “green” revolution, we need nothing short of a technology revolution to deal with climate change. However, if we look over the horizon, I think there isn’t enough of a sense of urgency being exhibited when it comes to technology, either internationally or at the country level.
Bangladesh’s export earnings are mostly determined by the export of readymade garments (RMG) to North American and European countries with 75% of total export earning coming from this sector. Quite understandably, the economic crisis in those countries unnerves us.
Fortunately, the clothing sector has remained more or less unscathed by the global crisis even as the trepidation among the entrepreneurs, policy makers and economists is still very high. During the last fiscal year (2007-08), the overall growth of the export of RMG was 16.16% which increased to 23.48% between July 08 and January 09 of the current fiscal year.
Readymade garments are the largest export industry and determine the dynamics of total export earnings for Bangladesh RMG is still growing at a satisfactory rate. There is no strong indication of any negative impacts of the global economic crisis on RMG as of today, but the future continues to be unpredictable.
There is widespread belief among Bangladeshi media, civil society and think tanks that collusion exists in the supply chain of many essential commodities, and many blamed this for the price hike in the first half of 2008. Keeping prices low is a high priority for the government. It is therefore important to measure the presence of market collusion through empirical evidence and design appropriate policy responses to mitigate its impact on prices in order for the government to continue to meet its election promise.
Bangladesh is a net importer of major food items. In the absence of market influences and duties, domestic and international prices are expected to be similar. The convergence may not be exact due to transportation and taxation costs but price should follow similar trends as movements of international commodity prices do not of domestic and international markets do not often vary.
We examine and compare the co-mol prices of four essential food items (coarse rice, flour (atta), salt and soybean oil) over time to look for signs of market influences.
What's peripheral? In the case of the use of technology in schools around the world, it is becoming increasingly hard to tell.
In many developing countries, for better and/or for worse, the traditional way to approach large-scale ICT procurements is to divide such undertakings into four primary components: hardware; software (which often includes 'e-content'); connectivity; and peripherals. (Thankfully, 'training' is showing up as a fifth component more and more ... although in most instances we are still only talking about 'technical training').
The category of 'peripherals', a catch-all category where one typically finds things like like printers and projectors, is often treated as the poor cousin of the other, 'flashier' components. But this may be changing.
It's been a very enriching experience to listen to the reactions of these 1200 or so college students.
Over the past couple of weeks, thanks to my colleagues Saroeun and Sophinith, I have traveled to various universities in Cambodia to present the findings of the World Bank’s growth report for the country. It's been a very enriching experience to listen to the reactions of these 1200 or so students. It was also nice to see the dynamism of these universities and these students.
Most interesting was the focus of their questions. Although the report is focused on medium- and long-term trends, many questions were about the impact of the global economic crisis. My answer: Cambodia is very exposed to the crisis given its openness and reliance on foreign investment, and despite the strong resilience of its rural economy.
There were also many questions about extractive industries. The answer is in Chapter 5 of the report: there remain considerable uncertainties about the potential in oil and gas and in mining, with in fact practically no major proven commercially viable reserve so far.
A couple of years ago, the extinction of the Yangtze Dolphin became apparent after some exhaustive visual and hydrophone surveys throughout its known range.
Some 18 years ago, before I joined the World Bank, I worked as a consultant for the Chengdu Hydropower Design Institute in China to prepare the Environmental Impact Assessment for the massive Ertan dam, which was to be financed by what was then the largest-ever World Bank loan. Ertan is on the Yalong River in the headwaters of the mighty Yangtze, the third largest river in the world, and was to be the first of a ‘cascade’ of dams reaching up to the Yalong headwaters. Some of the biodiversity impacts related to migratory fish, but even back then it was clear that the Gezhouba Dam and then the Three Gorges Dam, which straddle the mainstem of the Yangtze, blocked the movements and thus breeding of all migratory species.
Bureaucracies are inherently secretive. German sociologist Max Weber said that in the 1920s, long before the advent of television news conferences and the internet, in a time when journalism wasn't actually meant to be investigative. That is true for autocracies, but don't think democratic governments are immune to the secrecy bug. United States government agencies increased the use of privacy exemptions to deny federal Freedom of Information Act requests by more than 600 % between 1998 and 2002, according to a study by Jennifer LaFleur.
The global economic downturn and the consequent pessimistic outlook for exports in developing countries like Bangladesh have reinvigorated voices for protectionism. Even pro-trade minds have vented their skepticism about trade liberalization, as if the punch of the ongoing crisis could be shielded with the help of an embargo on trade with the rest of the world!
Such thoughts, derived from the gloomy prospects of exports, ignore the potential benefits drawn through the imports and disregard the lessons learned from history- that economic isolation leads to further impoverishment.
Video recording on mobile phones has existed for quite some time, and small portable video cameras (like the Flip Camera) have been around for a while too, but the arrival of the new iPhone 3GS may be the turning point in mobile video.
The new iPhone allows you to record, edit, and then share your videos from wherever you are, as long as you've got a mobile data connection. This new move by Apple got me thinking about how video is currently used in international development, and specifically, reporting on development projects.
In my experience, a lot of the project reporting I've come across has consisted of long reports that are created at regular intervals throughout the life of a project. While these reports are absolutely integral to ensuring the success of a project, they generally don't tell a compelling story about the work that is being done or the people involved in the projects, whether they be development practitioners or beneficiaries.
Easy-to-record-and-share video capabilities can change all of that. By embedding video recording and simple editing software into a device that is already used by development practitioners — the mobile phone — it's possible to allow for more regular project updates and reports with a human angle: interviews from the locations, visual representations of work being done, and context around the work and the people it affects.
This is also increasingly relevant in areas of the world where broadband access may be limited, but mobile penetration is high.
Of course, these videos would not replace the longer status reports, but would supplement the reporting process — and, at the same time, make the work that is being done by international development organizations more accessible and understandable to people that are not directly involved by may have interest.
A good example of someone that is using video effectively to report on his development work is Tony Whitten, who submits video updates to the East Asia & Pacific on the Rise blog. Here's an example of some of the videos he creates:
The question I ask then is simple:
How can we make this kind of video (and photo/audio) narrative production easier for development practitioners? In essence, how do we help the Tony Whitten's of the world do more of what they are doing in an easier and more efficient way?
Better materials and student participation characterize the READ schools project. (photo by Prateek Tandon)
Mongolia’s extreme climate was brought home to me again last week as I went with our World Bank team on a retreat about an hour and a half out of the capital city Ulaanbaatar. Wednesday afternoon was hot and summery, but on Thursday a cold front brought extreme storms that knocked out power and left a dusting of snow on the hills around UB. The life of the rural population, mostly herders, is inherently vulnerable in this extreme environment. Yet a number of projects supported by the World Bank have reduced this vulnerability somewhat in recent years.
Traveling around the countryside now I am struck by the fact that – for better or worse – my Blackberry keeps me connected most of the time. One of our innovative projects has offered subsidies, which private phone companies have competed for, to expand coverage in the countryside. The economics of cell phones is such that a one-time subsidy to erect towers will enable private companies to offer connectivity on a commercial basis.
Last month, US Supreme Court Justice Stephen Breyer spoke in an engaging panel discussion on the role of art and architecture in civic spheres at the National Gallery of Art in Washington, DC. He talked about the design of Boston’s federal courthouse: an effort that strove to create a building that was accessible and inviting to the people, so that they would recognize it as a public space—their space—and use it.
So far the dialogue between the main political parties has failed to produce an agreement on the way forward for a return to a democratic Government. For the time being, the economy continues to deteriorate but has shown some resilience due to two factors;
(i) Fiscal Policy: The strict fiscal policy pursued by the authorities has helped stabilize key financial indicators (interest rates, inflation, and the exchange rate)
(ii) The dual impact of the crisis on private sector and households: A segment of the economy has been seriously affected (such as tourism, textile and construction) resulting in job losses in urban areas. In contrast to these vulnerable sectors, a large fraction of the Madagascar economy has been isolated from the current recession (likewise they benefited less from growth in good times) because of the good rice harvest.
Three main challenges in the near future: (i) the payment of salaries to community teachers when classes will open in September, (ii) the reaction of textile companies to the uncertainty surrounding the US decision to maintain Madagascar as part AGOA, (iii) investment and planting decisions for the rice counter-season.
The question is will the Government be able to pass those tests in the absence of a political agreement?
To see the full report on the Madagascar economy, click here
I spent last week at the 2009 UNISDR Global Platform for Disaster Risk Reduction in Geneva. The Global Platform, attended this year by some 1,800 participants from more than 300 Governments and Organizations, is the premier gathering for the worldwide Disaster Risk Reduction community, including political leaders and their policy advisors, UN agencies, international organizations, and scientific/academic institutions. The first event was held in 2007.
The World Bank’s East Asia and Pacific region had a strong presence at the Platform with representation (pdf) from all of its countries and regional partners like ASEAN and SOPAC. The Global Facility for Disaster Reduction and Recovery (GFDRR) had its semi-annual Consultative Group meeting on the sidelines of the Platform on June 15. This was an important meeting for us since the Country Programming Profiles that we had prepared for resources from GFDRR for 2009-11 were up for consideration. The profiles were prepared by our country focal points in strong partnership with government authorities with the aim of leveraging scarce GFDRR resources into a coherent and comprehensive disaster risk management program. Donors endorsed the proposed program and were very appreciative of the process followed.
While there may be multiple entry points to doing development work, they should all lead to the same obvious place. That is, of course, reducing poverty and suffering in the world. For people in development and related fields, working toward these lofty goals requires the tenacity toward achieving results, willingness to be monitored and evaluated, and commitment to continuously enhance one’s technical competence and personal effectiveness.
CommGAP recently met with representatives of the African Community of Practice on Managing for Development Results (AfCoP-MfDR). On its website, AfCoP describes itself as a virtual community that “promotes learning and knowledge exchange among public managers, organizations, executing agencies and practitioners on how to manage better for Development Results.” The community has over 500 members from over 32 African countries, working in government, civil society, and the results practice areas. Online discussions revolve around five substantive areas of managing for results: leadership; M&E; accountability and partnerships; planning and budgeting; and statistical capacity.
"When corruption is king, there is no accountability of leadership and no trust in authority. Society devolves to the basic units of family and self, to the basic instincts of getting what you can when you can, because you don’t believe anything better will ever come along. And when the only horizon is tomorrow, how can you care about the kind of nation you are building for your children and your grandchildren? How can you call on your government to address what ails society and build stronger institutions? "
- Nuhu Ribadu's Testimony before the US House Financial Services Committee, May 19, 2009.
Visiting Fellow at St. Anthony’s College, University of Oxford; Visiting Fellow at the Center for Global Development; and former Executive Chairman, Economic and Financial Crimes Commission (EFCC) of Nigeria.