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August 2016

Rebooting Vietnam’s PPP program: Legislation that builds on lessons learned

Stanley Boots's picture

After over two years of development and drafting, Vietnam’s Decree 15 on Public Private Partnerships (PPP Decree) came into effect last spring. Dedicated specifically to the identification, preparation, and implementation of PPP projects, the PPP Decree replaced the largely unimplemented regulations for pilot PPP projects as well as the regime for build-operate-transfer (BOT), build-transfer-operate (BTO), and build-transfer (BT) projects. Almost a year after the PPP Decree was issued, it’s become clear that it has rebooted Vietnam’s potential for PPPs in a significant and lasting way. 

The end of the end of AIDS

David Wilson's picture

The recent Durban 2016 International AIDS Conference celebrates the success of AIDS treatment in reducing illness and death. The pall of despair and wasting death that hung over the Durban 2000 International AIDS Conference has truly been lifted. In KwaZulu-Natal, where the conference was held, AIDS treatment has increased community life expectancy by a full 11 years, reversing decades of decline -- life expectancy in KwaZulu-Natal is higher today than before the HIV epidemic. This is indubitably one of the great successes of global health.

What our 10 best read blogs are telling us

Nicholas Charles Lord's picture
 Construction workers from Egypt are building stronger river banks along the Nile river to protect it from erosion. Photo © Dominic Chavez/World Bank

Summer is a time for reflection, for taking stock and seeing what is trending. So far this year, the Jobs Group has published 39 blogs on a wide range of topics. But what blogs have resonated most with our readers? Below you will find our most-read blog posts. In true top ten style, they are presented them in reverse order.

Resolving disputes, avoiding litigation in India

Shanker Lal's picture
An overhaul of Dispute Boards looks to prevent delays in the creation of new infrastructure, such as the construction of roads and railways.
Photo: Simone D. McCourtie / World Bank

A significant percentage of government spending in India goes towards the creation of new infrastructure like the construction of roads, ports, railways and power plants. Construction contracts, however, often have a reputation for disputes and conflicts between contractors and governments. Such disputes ultimately delay implementation of the contracts and increase total costs, adversely impacting development outcomes of the projects.

Many countries have found that Dispute Boards offer an effective mechanism for resolving these issues in a timely and cost-effective manner. These boards, composed of one to three members, are set up upon commencement of a contract and help the involved parties avoid or overcome disagreements or disputes that arise during the contract’s implementation. The boards are less legalistic, less adversarial, less time consuming and less costly than options for resolving disputes within the legal system, including arbitration and litigation.

A 2004 study (PDF) shows that Dispute Boards have been successful in resolving even the most strenuous disputes with an almost 99% success rate. The savings in using these boards are enormous: another study indicates that in almost 10% of projects, between 8% and 10% of the total project cost was legal cost.

Quote of the Week: John Hurt

Sina Odugbemi's picture

“You’ve got to be careful with style, how you describe it. So much comes from things you observe, that lodge in your mind – what you see in somebody else and want to reproduce in yourself. Style is longing… longing to be something or someone else.”

- Sir John Vincent Hurt, CBE, an English actor whose career has spanned six decades. He initially came to prominence for his supporting role as Richard Rich in the film A Man for All Seasons (1966). Since then he has played leading roles in the film The Naked Civil Servant (1975), David Lynch's biopic The Elephant Man (1980), the dystopian drama Nineteen Eighty-Four (1984), The Hit (1984), and in the drama depicting the Profumo affair, Scandal (1989). He is also known for his television roles such as Caligula in I, Claudius (1976), and the War Doctor in Doctor Who.

He received Academy Award nominations for his roles in Midnight Express, and The Elephant Man. In 2012, the British Academy of Film and Television Arts honored Hurt with a lifetime achievement award.

Chart: Where are the World's Youth Unemployed?

Tariq Khokhar's picture

Olympic-sized ambition: Halt the Games' economic excess by building a permanent site for the Olympics — in Greece, their historic home

Christopher Colford's picture

Build it well, build it wisely, and build it only once — How investing to create a permanent site for the Olympic Games, ideally in their historic home of Greece, could reduce waste, deliver economic stimulus, and avoid "white elephant" monuments to extravagance.


The jeering of angry taxpayers and frustrated favela-dwellers may drown out some of the cheering of sports enthusiasts this weekend, as the 2016 Olympic Games begin in Rio de Janeiro. The government of Brazil and local officials in Rio have certainly done their best to stage the Games successfully, addressing a range of challenges that include the Zika virus outbreak, the doping scandal among athletes and the country’s prolonged economic slump and political traumas. Yet an enduring scandal in international finance — the chronic design flaw in the way that the Games are planned for and paid for — has again imposed an enormous economic burden on the Olympic host city. Struggling economies can ill afford the extravagance of repeatedly building use-once-throw-away sports facilities.

It was surely startling to see the deep degree of scorn and sarcasm with which many workaday Brazilians, who are now enduring a deep economic downturn, hurled derision at the arrival of the Olympic torch in Rio this week. They evidently saw that Olympic arrival ceremony as a symbol, not just of athletic ambition, but of financial folly.

The anxieties that Brazil has endured on the road to Rio 2016 should underscore a longer-term, Olympic-sized concern: Mismanagement by the Games' promoters has now been thoroughly documented, underscoring the abusive way that the International Olympic Committee (IOC) and the global sports-industrial complex have habitually foisted reckless costs on the taxpayers of hapless host cities.

By goading Olympic-wannabe cities to make ever-more-extravagant financial commitments – stoking their dreams of a media moment of purchased publicity – the mega-event industry has helped shatter the finances of one host city after another. No wonder that so many cities are now shunning the IOC’s bidding process, dreading the deadweight losses that are almost certain to burden any Olympic host.

Welcome as the IOC’s recent “Olympic Agenda 2020” reform proposals may be, it’s long past time to rein in the financial excesses of mega-event promoters. With a claque of financiers and flacks who are ready to manipulate the gullibility of the would-be hosts, the Olympic spirit has fallen victim to the self-interest of construction firms, property developers and publicists who seek to profit from host cities’ overspending.

An invaluable book documenting this Olympic-scale threat – discussed in detail at a World Bank’s InfoShop book-and-author seminar in June 2015 – should be top-of-mind for Olympics-watchers this week, as Rio de Janeiro enjoys its moment in the spotlight. “Circus Maximus: The Economic Gamble Behind Hosting the Olympics and the World Cup” — by Andrew Zimbalist, a professor of economics at Smith College — can help other cities avoid an impulsive rush for momentary Olympic notoriety. A video of Zimbalist’s InfoShop presentation is archived at http://web.worldbank.org/WBSITE/EXTERNAL/PUBLICATION/INFOSHOP1/0,,contentMDK:20289125~pagePK:162350~piPK:165575~theSitePK:225714,00.html 

August occasional links 1: gender, education accountability, conferences, and more…

David McKenzie's picture

Joseph de Maistre’s prophecy: Is violence unavoidably human?

Sina Odugbemi's picture
These days, every day brings news of a fresh outrage somewhere in the world. As the body count grows, empathy fatigue has set in. And the perpetrators of violence must have come to the same conclusion because they are finding ever more imaginative ways to kill innocents and stupefy the rest of us. The question is: is the ubiquity of violence a passing phase in a world that is allegedly getting more civilized? Or is violence simply a part of fundamental human nature? Each day, as the news alerts on my iPhone bring fresh news of horrific killings somewhere in the world, as I get really, really fed up with it all, someone has been coming to my mind. His name is Joseph de Maistre (1753-1821), a conservative political philosopher that I studied in graduate school several seasons ago now, and one whose ideas have stayed with me. Last weekend, I went to re-read one of his classic texts: Considerations on France (1796).

The work was a reaction, a fierce and uncompromising one at that, to the French Revolution, much like Edmund Burke’s Reflections on the Revolution in France. But, as often happens with the leading figures in the history of political thought, a particular historical event prompted reflections on the nature of man and the judicious organization of political communities. My copy of the work is part of the series that I consider the best in the field: The Cambridge Texts in the History of Political Thought. This particular one contains a magisterial introduction by the great Isaiah Berlin. Here is how Berlin sums him up:
 

What made Maistre so fascinating to his own generation was that he forced them to look at the seamy side of things. He forced them out of bland optimism…Maistre’s contribution is a violent antidote to the over-blown, over-optimistic and altogether too superficial social doctrines of the eighteenth century. Maistre earns our gratitude as a prophet of the most violent, the most destructive forces which have threatened and still threaten the liberty and the ideals of normal human beings. (p. xxxiii)


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