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Guess how many private infrastructure projects reached closure in 2015 in the poorest countries?

Laurence Carter's picture
 

Just sixteen projects in energy, transport and water/sanitation.  In only nine countries.  Totalling $4.6 billion.
 
There are 66 IDA countries (excluding a few rich enough to count as “IDA blend”), defined as having per capita income under $1,215.  This $4.6 billion in IDA countries compares to total private infrastructure investment commitments of $111.6 billion in all emerging markets in 2015 per the recently released Private Participation in Infrastructure database.
 
In recent years, the number of projects and investment amounts of private infrastructure in IDA countries hasn’t increased.  If people living in the poorest countries are to get better access to energy, transport and water services, and if we believe that the innovation, management capacity and financing of the private sector working together with governments is essential to help make that happen … well, then we need a step change.
 
We know to make a difference requires dedication and a long term vision.  One part of that ambitious change is the Global Infrastructure Facility (GIF).  The GIF is a global open platform to help partners prepare and structure complex infrastructure public-private partnerships (PPPs) in emerging markets, and to bring in private sector and institutional investor capital.  The GIF platform integrates the efforts of multilateral development banks (who as Technical Partners choose which projects to submit for GIF funding), private sector investors and financiers, and governments to bring infrastructure projects and programs to market.  No single institution can achieve these goals alone.  The GIF’s Advisory Partners, which include insurers, fund managers, and commercial lenders, and which together have $13 trillion in assets under management, provide feedback to governments on the bankability of projects.

From a rubber boat in the sea to swimming in Rio: A story of resilience

Bassam Sebti's picture


On a chilly October day in 2015, 24-year-old Rami Anis boarded a rubber boat in the Aegean Sea in Turkey. His destination was Europe and his goal was a better life away from war and hardship.

Looking at the people around him on the boat, he was horrified. They were children, men, and women. The fact that they might not make it never escaped his mind, even though he is a professional swimmer.

“Because with the sea, you can’t joke,” said the Syrian refugee.

But on Aug. 11, Rami will not be worried about swimming in the sea. He, instead, will be swimming at the Olympics. He made it safely to Belgium after days of heart-wrenching journey, from Istanbul to Izmir to Greece before setting off a trek through Macedonia, Serbia, Croatia, Hungary, Austria, Germany and eventually Belgium.

Rami will be competing at the 2016 Olympic Games in Rio de Janeiro as a member of the Refugee Olympic Team — the first of its kind — and march with the Olympic flag immediately before host nation Brazil at the opening ceremony. 

Well-regulated financial technology boosts inclusion, fights cyber crime

Joaquim Levy's picture

Luceildes Fernandes Maciel is a beneficiary of the Bolsa Família program in Brazil. © Sergio Amaral/Ministério do Desenvolvimento Social e Agrário

Financial technology — or FinTech — is changing the financial sector on a global scale. It is also enabling the expansion of financial services to low-income families who have been unable to afford or access them. The possibilities and impact are vast, as is the potential to improve lives in developing countries.

The financial sector is beginning to operate differently; there are new ways to collect, process, and use information, which is the main currency in this sector. A completely new set of players is entering the business. All areas of finance — including payments and infrastructure, consumer and SME credit, and insurance — are thus changing.

From local to global ambitions: the benefits of standards compliance

Karuna Ramakrishnan's picture
Standards are a critical element of the trade landscape. Standards are regulations set by either public or private bodies (including firms) to ensure that products are fit for consumption, that they meet specific technical standards, or that they can be used as inputs for specific commercial processes such as manufacturing. Developing countries are often hampered by a lack of access to independent and credible inspection, testing, certification and accreditation services – what can be termed the “standards infrastructure." 
 

A PPP to take pride in: Early education in Brazil

Tomas Anker's picture

Photo: Inova BH

In English, “Belo Horizonte” means “beautiful horizon,” and this is an apt description of the long-term possibilities for educating the children of Belo Horizonte, the sixth largest city in Brazil and capital of the state of Minas Gerais. As a Brazilian who went through the national school curriculum, I believe that this system should be accessible to all citizens, and so I took a particular interest in the goals of this public-private partnership (PPP).

Greater access to education was a widely-shared ambition among the government team as well. The Municipality of Belo Horizonte already believed that a competitive workforce – and a functioning society – depends on good schools. That’s why it made early education a top priority and sought out advisory services from our Brazil-based team to find out if PPPs could help government make the grade. It seemed like this was a proposal the community could stand behind: Demand for better education was already strong, with over 11,000 children, many underprivileged, on a waiting list to enroll in school.

Do social factors determine “who we are” as well as the choice sets we have?

Karla Hoff's picture

The World Bank’s conference on “The State of Economics, the State of the World” was an opportunity to take stock of the emergence of new paradigms for understanding economic development.  Following Ken Arrow’s talk on the history of the neoclassical model and Shanta Devarajan’s comments on this model’s centrality in the Bank’s work, I had the opportunity to discuss two paradigms of how individuals make decisions that have recently emerged in economics, drawing on psychology, sociology, and anthropology.

Renewables, solar, and large size projects trending in new data on private participation in infrastructure

Clive Harris's picture



Translations available in Chinese and Spanish.

Many of you are already familiar with the PPP (Public-Private Partnerships) Group’s Private Participation in Infrastructure (PPI) Database. As a reminder for those who aren’t, the PPI Database is a comprehensive resource of over 8,000 projects with private participation across 139 low- and middle-income economies from the period of 1990-2015, in the water, energy, transport and telecoms sectors.

We recently released the 2015 full year data showing that global private infrastructure investment remains steady when compared to the previous year (US$111.6 billion compared with US$111.7 the previous year), largely due to a couple of mega-deals in Turkey (including Istanbul’s $35.6 billion IGA Airport (which includes a $29.1 billion concession fee to the government). When compared to the previous five-year average, however, global private infrastructure investment in 2015 was 10 percent lower, mainly due to dwindling commitments in China, Brazil, and India. Brazil in particular saw only $4.5 billion in investments, sharply declining from $47.2 billion in 2014 and reversing a trend of growing investments over the last five years.


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