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More Work Needed to Make Labor Migration a Safer Option for Youth

Michael Boampong's picture

Roughly 27 million young people leave their country of birth to find employment abroad. Does this trend suggest that migration may be a solution to the worrying situation whereby 60% of young people in developing regions that are either unemployed, not studying, or engaged in irregular employment?

Fixing financial markets when other key markets are broken, too: Guest post by Alex Cohen

This is the eleventh in our series of posts by students on the job market this year
Researchers, policymakers and aid organizations have devoted lots of attention to improving access to credit and, increasingly, insurance for small firms and farms in developing countries. Yet some recent papers find puzzlingly weak effects of insurance and credit on growth and profits (Cole et al. 2014, Banerjee et al. forthcoming).
 One potential explanation may be that in developing countries, it’s not just financial markets that have imperfections, but that other key markets, such as markets for labor and land, have problems, too. In particular, high costs of supervising or finding trustworthy employees may make it expensive to add labor (Eswaran and Kotwal 1986, Fafchamps 2003, Foster and Rosenzweig 2011). For farms specifically, missing land markets may further constrain expansion (Goldstein and Udry 2008, Adamopoulos and Restuccia 2014).

Can urban innovation ecosystems be developed with little broadband infrastructure?

Victor Mulas's picture
We are witnesses to the surge of tech startup ecosystems in cities around the world, in both developed and developing countries.

In my previous blog post, I showed this trend and the studies that confirm it. Among the questions we are researching to map urban innovation ecosystems is whether there is a minimum set of requirements for these ecosystems to emerge — for example, in relation to infrastructure or the population's technical skills. What we are encountering is that, although you need a minimum level of infrastructure (e.g., at least some broadband connectivity and mobile phone networks), this level is much lower than many people expect. 

A city does not need to have 4G mobile broadband or widespread fiber-optic fixed broadband widespread. It is enough to have broadband connection in some key points (particularly hubs and collaboration spaces) and basic mobile phone coverage and use (such as 2G mobile phone service). A similar conclusion is applicable to the skill level of the population. The results of the study of New York tech ecosystem shows that almost half of the employment created by the ecosystem does not require a bachelor’s degree.

In this blog post, I present the case of Nairobi and the tech start-up ecosystems emerging in Africa. I'll also explore how these ecosystems can not only surge, but also compete internationally despite having limited broadband connectivity (both mobile and fixed). 
 
Map of Accelerators and Collaboration Spaces in Nairobi. Source: Manske, Julia. 2014. Innovations Out of Africa. The Emergence, Challenges and Potential of the Kenyan Tech Ecosystem.

How to De-Enclave the African Resource Sector for More Inclusive Growth and Development

Ken Opalo's picture
Oil drums in Ethiopia. Source - 10b travelling

The recent acceleration in growth rates across much of sub-Saharan Africa may not be purely commodity-driven, but for many of the region’s economies macro-economic stability is still dependent on prudent management of natural resources. For this reason, a strategic shift is required to shield African economies from commodity boom-burst cycles.
 
For much of the last half century, the dominant political economy model of natural resource management in Africa was this: states received royalties from mostly private mining companies and then were supposed to invest in public goods such as roads, hospitals, and schools. Private mining companies, for their part, would pick up the slack whenever states failed. Most of the time this happened through corporate social responsibility (CSR) initiatives, as a way of buying the social license needed to operate in specific communities.
 
This model has proven to be a complete failure in nearly all resource-rich African states, for a number of reasons.
 

The Dismal State of Numbers for Economic Governance in Africa

Morten Jerven's picture

A farmer in the Kibirichia area of Mount Keyna. Photo credit: Flickr @ciat | CIAT International Center for Tropical Agriculture

In 2010, Ghana announced that, thanks to a GDP revision, its GDP had almost doubled. In April 2014, an even larger increase in GDP, again thanks to a statistical revision, was announced by Nigeria, catapulting it into Africa’s largest economy, ahead of South Africa. How were these vast increases in wealth possible? I would argue that the huge jumps in GDP in Nigeria and Ghana were symptomatic of major gaps in Sub-Saharan Africa data that make it extremely difficult for statistical systems to capture economic trends and development – and thus for policy makers to shape an agenda for sustainable economic development.

Technology, Mobile Phones Aid Quest to Make Everyone Count

Donna Barne's picture

Patients and a nurse in a Cambodia hospital. © Chhor Sokunthea/World Bank

Having an identity is part of living in a modern society, and the key to accessing public services, bank accounts, and jobs. But how should developing countries with tight budgets go about building a national system that records births and deaths and establishes identities?

A panel including representatives from Ghana, Moldova, and Canada explored that question and related issues Friday at Making Everyone Count: Identification for Development, during the World Bank-IMF Annual Meetings. The event was live-streamed in Arabic, English, French, and Spanish and moderated by Kathy Calvin, president and CEO of the United Nations Foundation.

Science, Technology and Innovation in Agriculture is Pivotal for Africa’s Overdue Transformation

John Kofi Agyekum Kufuor's picture
The persistence of poverty and food insecurity on the African continent is a major developmental challenge, both for Africans and the international development community. 
 
History shows that investments in agriculture can be a catalytic force in the fight against hunger, poverty and malnutrition and a well-performing farm economy can be an instrument for achieving sustained structural economic transformation. Agricultural growth was the precursor to industrial growth in Europe and, more recently through the Green Revolution, in large parts of Asia and Latin America.  The Green Revolution bypassed Africa.

When I was elected President of the Republic of Ghana in 2000, agriculture was a mainstay of the nation’s economy, accounting for 35% of its GDP, 55% of employment and 75% of export revenues. But it was a lagging, orphan sector, suffering from decades of neglect and lack of investment. Ghana’s agriculture had sadly changed little from the kind practiced generations ago.  Farmers were still eking out a living, tilling the land by hand, much like their ancestors.  
 
The World Bank’s new Agriculture Global Practice hosted President Kufuor and his colleagues from the Forum for Agricultural Research in Africa (FARA).  Here, Yemi Akinbamijo, Executive Director, argues that science has unbounded potential to contribute to Africa’s agricultural transformation for the benefit of all Africans and the environment.
 
Photo credit: A’Melody Lee


More and Better Financing for Development

Homi Kharas's picture

One of the major issues in the Open Working Group’s outcome report on the shape of the post-2015 agenda is the availability and access to financing to allow the goals to be met. There is a great temptation to simply try and calculate the financing needs for each goal and add them up to get the total financing need. Because this approach seems simple, it is appealing to many. The problem is that it is conceptually wrong.
 

The Ebola Threat: A “new normal”?

Patricio V. Marquez's picture



A couple months ago while stationed in Ghana, I was approached by colleagues and friends with questions on how to prevent contagion from the deadly Ebola virus. Their concern was stoked by reports in media outlets about the rising number of confirmed cases and deaths in neighboring countries. 

Resilience vs. Vulnerability in African Drylands

Paul Brenton's picture
Woman carries wood in Ouagadougou, Burkina Faso. Source- Guillaume Colin & Pauline Penot

It’s 38°C (99°F) in Ouagadougou, the capitol city of Burkina Faso, today—and it’s been this hot all week. The end of the warm season is near, but in places like Ouaga (pronounced WAH-ga, as its better known), temperatures stay high year-round. These are the African drylands: hot, arid, and vulnerable.

Over 40 percent of the African continent is classified as drylands, and it is home to over 325 million people. For millennia, the people of these regions have adapted to conditions of permanent water scarcity, erratic precipitation patterns, and the constant threat of drought. But while urban centers like Cairo and Johannesburg have managed to thrive under these harsh conditions, others have remained mired in low productivity and widespread poverty. 

The World Bank has been partnering with a team of regional and international agencies to prepare a major study on policies, programs, and projects to reduce the vulnerability and enhance the resilience of populations living in drylands regions of Sub-Saharan Africa.


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