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Chile

Local content in extractive industries: a tool for economic diversification and sustainable development

Anita Marangoly George's picture
Photo by Dominic Chavez / World Bank

When you ask young people from developing countries what they want for their country, they often say opportunity. The next generation wants jobs and knowledge; they want to be connected to the global economy.

Extractive industries can foster these types of opportunities through investment in skills training and transfer of technology to local workers and companies. These technical skills are demanded in the global marketplace today and empower workers to expand their horizons and lower their risk of unemployment. 

We are discussing these issues today at a “Reconciling Trade and Local Content Development” conference we are co-hosting with the Mexican Ministry of Economy. This event aims to share knowledge on how investment in extractive industries can be leveraged to generate opportunities for economic diversification and employment.

When extractives companies include local business in their supply chain they foster sustainable growth and help end poverty. The most valuable contribution to long term sustainability comes from the ability of extractive industries to generate benefits through productive linkages with other sectors. The International Finance Corporation (IFC) helped make this happen in Barmer, India, where we supported a Skill Development Center that trained 7,000 people to work in the operations of Cairn Energy. Not only did this training create direct job opportunities for the local population, but the acquired skills fostered the creation of an entire eco-system of small and medium-size enterprises that provided products and services to the oil company and related sectors.

The "starchitect" of the poor: the keys to Alejandro Aravena's work

Luis Triveno's picture

Pritzker Prize winner Alejandro Aravena’s Elemental firm designed the “half a good house”, which includes gaps between the houses for residents to fill according to their own needs.
Cities are the world’s factories of progress and prosperity. Eighty-percent of all production takes place in our urban areas; it’s where most economic opportunities are. People know it, and this is why five million people migrate to cities all over the world. Every month.
 
The problem is that most cities are not prepared to absorb these numbers. The tragic result is chaos, inequality and environmental damage. One clear manifestation of the mismatch between people’s demand for opportunities to prosper and the inability of cities to maximize the benefits of agglomeration while minimizing the costs of congestion is the omnipresence of slums throughout the world. Today, one billion people live in slums; worse still, many of those settlements are in areas highly vulnerable to natural disasters. By 2030, this figure is expected to double.
 
To absorb this ever-increasing demand for affordable urban housing, would require creating, in effect, a new city capable of housing 1 million people – every week during the next 15 years. Governments are already overwhelmed. The private solution of reducing the size of dwellings and relocating them to the peripheries of cities has produced economic and social segregation, which has become a ticking bomb for unrest.
 
During the past 12 years, the Chilean architect, Alejandro Aravena, 48, has offered solutions to the global housing crisis that are so creative, speedy, budget-conscious and scalable that he has been awarded the 2016 Pritzker Prize, considered the Nobel for architecture. His work—and the prize—challenge architects to envision innovative buildings not just for businesses and other wealthy clients but for all the people.

Mineral wealth for human development: The Texas way

Patricio V. Marquez's picture
A student with University of Texas at Austin Tower in the background. © qingwa/iStock


As countries look to domestic resources to help meet the ambitious development agenda laid out in 2015, there is value in looking at international experiences where mineral wealth has become a dedicated revenue stream for financing development efforts, particularly for investing in human capital (via public health or education).

Ensuring access to quality early childhood development is anything but child’s play

Samuel Berlinski's picture
Children work in their classroom. Photo: Maria Fleischmann / World Bank


Ensure that all girls and boys have access to quality early childhood development, care and pre-primary education so that they are ready for primary education.” This is one of many important targets set by the United Nations General Assembly on September 27, 2015. How hard will it be to achieve this goal by 2030?

A better way to build -- promoting sustainable infrastructure

Robert Montgomery's picture

As countries prepare to meet at the G20 summit in Turkey next week, global growth and infrastructure needs will be at the top of decision makers’ concerns. And rightly so: Infrastructure – roads, bridges, ports, power plants, water supply – drive economic growth in many countries by facilitating manufacturing, services and trade. But it’s not just a matter of building more. To achieve good development on a planet stressed by climate change and diminishing natural resources, infrastructure needs to be sustainable.

Natural Capital Accounting: Going beyond the numbers

Stig Johansson's picture
Guatemala. World Bank

Here are some facts that you might not know: Do these numbers just seem like bits of trivia? In fact, these are all important results that came out of natural capital accounting (NCA) – a system for generating data on natural resources, such as forests, energy and water, which are not included in traditional statistics. NCA follows standards approved by the United Nations to ensure trust, consistency and comparison across time and countries.
 
The results above are among the numerous NCA findings that are being generated every year, with support from a World Bank-led global partnership called Wealth Accounting and the Valuation of Ecosystem Services (WAVES). In response to the growing appetite for information on NCA, WAVES has set up a new Knowledge Center bringing together resources on this topic.

Lima, from Gastronomic Center to Capital of Urban Transformation

Eric Dickson's picture

Vista de la costa de Lima

‘Oh you’re going to Lima? I’ve heard the food is supposed to be amazing’. So goes the typical comment I get from friends and family when I would mention my work related travel plans. And in this sense the city does indeed live up to what is now internationally recognized. In my short amount of time in Lima I discovered it has a gorgeous historic downtown area, a stunning coastline peppered with manicured parks in the upscale parts of town, and a largely flat topography coupled with a near complete lack of rain.

Higher education: returns are high but we need to fund it better

Harry A. Patrinos's picture
University students at a laboratory.

Photo: Nafise Motlaq / World Bank


This week I was invited to speak at The Economist’s Higher Education Forum in New York to share my thoughts on how higher education can be expanded. I believe that we need a fair and sustainable cost-recovery model at the university level using future earnings to finance current education.

Over the past two decades, there has been a tremendous increase in the number of university students and graduates worldwide, which should have led to decrease in the rate of return to investment to higher education – if supply outpaced demand, of course.  While there has been some decrease in overall rates of return, investment in education is still a highly profitable investment.  Global demand for high levels skills such as working with new information and problem-solving has kept the returns to schooling high in even the poorest countries of the world. In fact, the returns to higher education are higher in lower-income countries – except in the Middle East and North Africa due to rigid labor market regulations.

What Can the Asian Tigers and Latin Pumas Learn From Each Other?

Danny Leipziger's picture

The global landscape these days is not a pretty one: collapsing commodity prices, weak demand in the OECD economies and a pronounced slowdown in many emerging markets, unpredictable capital flows affecting exchange rates, and a noticeable slump in world trade. This is clearly not a good time to be a Minister of Finance!

 
This is the panorama that surrounds the IMF World Bank Annual Meetings in Lima, October 8-10. The weak global picture is heavy on diagnostics of what is troubling many developing countries, but less robust on the side of policy solutions. In Lima, this will be one of the key topics of discussion during a high-level debate on “Balancing sustainable growth and social equity”.

Get smarter: A world of development data in your pocket!

Nagaraja Rao Harshadeep's picture
Many dinner conversations and friendly debates proceed in a data vacuum: “The problem is big… very big!” How big exactly? Most likely your friend has no idea. 

It is often said that we live in a new data age. Institutions such as the Bank, UN agencies, NASA, ESA, universities and others have deluged us with an overwhelming amount of new data obtained painstakingly from countries and surveys or observed by the increasing number of eyes in the sky. We have modern tools such as mobile phones that are more powerful than old mainframes I used to use in my university days. You can be in rural Malawi and still have access to decent 3G data networks.
 
Open data for sustainable development

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