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August 2016

Prioritizing infrastructure investments: Helping decision-makers do their job

Cledan Mandri-Perrott's picture

Government officials and PPP practitioners make difficult decisions about infrastructure projects all the time. But perhaps the choice they grapple with the most is which projects to select for implementation within a given investment period. Many factors come into play, such as government budget constraints, the relative efficiency and effectiveness of investments, as well as costs and benefits of projects to society. With so much to consider, governments need improved decision-making frameworks that are rigorous enough to accommodate multiple components but practical enough to remain feasible and affordable.

Indonesia’s structural transformation offers clues on where to find good jobs

Maria Monica Wihardja's picture



What goes up must come down.

The end of the commodities boom is a wake-up call for Indonesia, as the reversal in economic transformation has adversely impacted employment growth in recent years. How can Indonesia continue to create jobs for its growing labor force?

Jobs in manufacturing and services offer a solution, as historical patterns of job creation have shown.

In the past 20 years (excluding the economic crisis of 1997-1999), manufacturing and services have been important sources of job creation, while employment in agriculture continues to decline. From 1990 to 2015, jobs in agriculture fell to 34% from 56% of all employment, while service sector work has surged to 53% from 34%, and manufacturing jobs have increased from 10% to 13%.

Sport free of doping or glory at all costs: That is not the question anymore

Leszek J. Sibilski's picture

“Sport is a very important subject at school, that's why I gave Quidditch such an important place at Hogwarts. I was very bad in sports, so I gave Harry a talent I would really loved to have. Who wouldn't want to fly?”  - J.K. Rowling, author of the Harry Potter novels
 
Even Greek mythology embraces the human desire to fly, as many of us might recall in the escape story of Daedalus and his son, Icarus, from Crete. He used wax and string to fasten feathers to reeds of varying lengths to imitate the curves of a bird's wings. Daedalus advised his son to fly at a medium altitude and follow his path of flight. If he flew too high, the sun could melt the wax, and if he flew too low, the sea could dampen the feathers. Unfortunately, Icarus became euphoric, and against the wisdom of his father, he glided higher and higher. The sun melted the wax holding his wings together, and the boy dropped into the sea and drowned. 
 
This myth has its own interpretation in sport psychology; moreover, it serves perfectly as a foreword for this reflection on the prevalence of performance enhancement drugs (PEDs) in contemporary sports in which athletes are tempted to fly above human body limits or cruise too low under the radar of clean sport. At both altitudes, they gamble with their well-being. 
 
In 1997, Bamberger and Yaeger surveyed 198 mostly US Olympians and Olympic hopefuls. They asked if the athletes would take PEDs under the hypothetical premise of not being caught and knowing they would be guaranteed a victory; 195 of 198 responded “yes”. Additionally, if the caveat was added that they would die from the side effects within 5 years, 61% of the athletes still said they would use PEDs.

Digital Financial Services for Cocoa Farmers in Côte d’Ivoire

Corinne Riquet's picture


Smallholder farmers, even those in structured value chains such as cocoa farmers in Côte d’Ivoire, are largely unable to access banks, microfinance institutions and other formal financial institutions. Providing meaningful financial services to these customers in an affordable and sustainable manner is a great challenge.

Investing in pre-crisis financial risk management eases post-disaster recovery needs

Gloria M. Grandolini's picture
Young girl in an evacuation center, 2009. Philippines. Photo: Jerome Ascano / World Bank

Since natural disasters can strike anywhere and anytime, making far-sighted preparations is much more effective than scrambling to respond to a crisis. I recognized this after Hurricane Mitch ravaged Honduras and my grandmother had to be evacuated because the local river swelled to the second floor of her home.
 
As climate change intensifies extreme weather events across much of the planet, countries are seeking the World Bank Group’s support to improve both their physical and financial resilience to disasters.
 
We are increasingly working with governments to devise sound financial planning and risk management before a disaster strikes, not just to assemble financing to help countries recover in its wake.

Market-based instruments – such as insurance -- can act as shock absorbers in case of natural disaster, helping countries avoid the worst of a crisis’ financial impact.

Quote of the week: J.K. Rowling

Sina Odugbemi's picture

J.K. Rowling "Many prefer not to exercise their imaginations at all. They choose to remain comfortably within the bounds of their own experience, never troubling to wonder how it would feel to have been born other than they are."

-J.K. Rowling, a British novelist, screenwriter, and film producer best known for writing the Harry Potter series. The books have gained worldwide attention, becoming the best-selling book series in history and the basis for a series of films. Rowling has led a "rags to riches" life story, in which she progressed from living on state benefits to multi-millionaire status within five years.

The significance of Int’l Youth Day in 2016

Anne Elicaño-Shields's picture
Students on campus. Photo: Nafise Motlaq / World Bank


There is plenty to celebrate about being a young person. Since 1999, the United Nations commemorates the ideas and initiatives of young people everywhere with International Youth Day. To me, it’s particularly significant this year because it’s the first International Youth Day since the Sustainable Development Goals, or SDGs, were adopted (last September 2015).

The SDGs aim to address “the root causes of poverty and the universal need for development that works for all people” by 2030. Fourteen years from now may seem like a distant dream but it’s really not that far ahead. Today’s 16 year old will be 30 by then and  whatever foundations are laid down today will inevitably impact his/her world forever. 

Youth paving the road to 2030

Nicole Goldin's picture
Students from University of Ghana. Photo: World Bank


Chandni is a 20 year old Bangladeshi young woman with big dreams. She dropped out of school to care for her family, including her unemployed brother.  Without childcare, reliable transportation or affordable internet, she isn’t able to enroll in supplemental courses.  Without an education or skills, she can’t find decent work and is caught in a vicious cycle of generational poverty. 

The challenge to be climate smart with the world’s agriculture

Juergen Voegele's picture

Also available in: Spanish - French - Arabic

The West Africa Agriculture Productivity Program (WAAPP). Photo Credits: Dasan Bobo/The World Bank

Here’s something you may not be aware of: agriculture and changes in land use already contribute 25 percent of greenhouse gas emissions. It’s a statistic that matters in the face of two unrelenting challenges now facing the globe –how to turn the promises of last December’s historic Paris climate change agreement into reality and how to feed a growing global population.

‘Smartest Places’ via smarter strategies: Sharpening competitiveness requires ingenuity, not inertia

Christopher Colford's picture

Defeatist demagoguery marred the 2016 election season, and it continues to resonate with many beleaguered voters in advanced Western economies, who dread the gloom-and-doom scenarios sketched by narrow-minded nationalists. For reassurance about positive strategies for economic renewal, try a dose of optimism about urban “hotspot hustle and cutting-edge cool” – thanks to a book that champions smart public policies, delivered through an activist approach to Competitiveness Strategy.

Gazing into the rear-view mirror is a mighty reckless way to try to drive an economy forward. Yet backward-looking nostalgia for a supposedly safer economic past – with voters' anxiety being stoked by snide sloganeering about “taking back our sovereignty” and “making the country great again” – infected the policy debate throughout the dispiriting 2016 election year, and its defeatist aftermath, in many of the world’s advanced economies.

Scapegoating globalization and inflaming fears of job losses and wage stagnation, populists have harangued all too many voters into a state of paralysis or passivity. Lamenting the loss of a long-ago era (if ever it actually existed) of economic simplicity, nativists and nationalists have been conjuring up illusions about an era when inward-looking economies were (allegedly) somehow insulated from global competition.

Optimism has been in short supply lately, but an energetic new book – co-authored by a prominent World Bank Group alumnus – offers a hopeful perspective on how imaginative economies can become pacesetters in the fast-forward Knowledge Economy. Advanced industries are thriving and productivity is strengthening, argue Antoine Van Agtmael and Fred Bakker, now that many once-declining manufacturing regions have reinvented their industries and reawakened their entrepreneurial energies.

Welcome to the brainbelt,” declares “The Smartest Places On Earth: Why Rustbelts Are the Emerging Hotspots of Global Innovation” (published by Public Affairs books). Now that brainpower has replaced muscle-power as the basis of prosperity in an ever-more-competitive global economy, the key factor for success is "the sharing of knowledge." Longlisted for the Financial Times/McKinsey Business Book of the Year Award, “Smartest Places” is receiving well-deserved attention among corporate leaders and financial strategists – and it ought to be required reading for every would-be policymaker.

The era of “making things smart” has replaced the era of “making things cheap” – meaning that industries no longer face a “race to the bottom” of competing on costs but a “race to the top” of competing on creativity. Knowledge-intensive industries, and the innovation ecosystems that generate them, create the “Smartest Places” that combine hotspot hustle and cutting-edge cool.





Those optimistic themes may sound unusual to election-year audiences in struggling regions, which are easy prey for demagogues manipulating populist fears. Yet those ideas are certainly familiar to readers at the World Bank Group, where teams working on innovation, entrepreneurship and competitiveness have long helped their clients shape innovation ecosystems through well-targeted policy interventions that strengthen growth and job creation.

“Smartest Places,” it strikes me, reads like an evidence-filled validation of the Bank Group’s recent research on “Competitive Cities for Jobs and Growth.” That report, published last year, offers policymakers (especially at the city and metropolitan levels) an array of practical and proven steps that can help jump-start job creation by spurring productivity growth.
 

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