Photo: Gustave Deghilage | Flickr Creative Commons
Does experience in implementing Public-Private Partnerships (PPPs) reduce a country's chances of contract failure?
In a recent study entitled Do Countries Learn from Experience in Infrastructure PPPs, we set out to empirically test whether general PPP experience impacts the success of projects—in this case, captured by a project's ability to forego the most extreme forms of failure that lead to cancellation.
When the Bank did its first social assistance public expenditure review in Indonesia in 2012, the diagnosis was clear. Despite spending significant amount of resources in “welfare”, most of them were through expensive subsidies (fuel, electricity, rice) that were not necessarily benefiting the most vulnerable segments of the society. General subsidies represented 20 percent of total national budget, but household targeted social assistance programs were already making their way, increasing from 0.3 to 0.5 percent of GDP between 2004 and 2010. Still, there was an overall dissatisfaction on what had been achieved, with the Gini coefficient rose by about 6 percentage points in the period of 2005 to 2012.
With more than 27 million people still considered poor and as one of the countries in the East Asia and the Pacific region that has one of the highest income inequality levels, the coverage expansion and social assistance system strengthening is a must. Fortunately, the situation in the social assistance sector has changed dramatically.
In 1978, we both started our high school education in our home city of Semarang. Our alma mater is located on a major artery in the heart of the city, and occupies a beautiful Dutch colonial building. The robustness of its architecture befits the reputation of our school at that time: a school led by a passionate principal who promoted discipline and effective learning.
. This is something Raden Ajeng Kartini –national heroine and a pioneer for girls and women’s rights in Indonesia– had fought for. The school was fully equipped with labs for chemistry, physics, biology, and foreign languages. We were fortunate to have the opportunity to receive quality education at one of the best public schools in Semarang. Our school also fared well at the provincial and national level.
Well, not quite. Located an hour away from the city center, Dewi’s house is far from employment opportunities, shopping, and schooling for her two children. Two years after completion, more than half the housing development remains unoccupied. Because the house is not connected to the local water system, Dewi buys water twice a week. When seasonal floods are underway, the heavy rains impede access to her house.
with the launch of Satu Juta Rumah (One Million Homes) program. Previous efforts to address the demand for affordable housing – a function of both new annual demand creation and an unmet housing deficit – had not effectively improved housing outcomes at the scale necessary.
Options are being explored. The recently approved National Affordable Housing Program Project (NAHP), for example, aims to innovate the affordable housing market by addressing bottlenecks and actively engaging the private sector in delivering for unserved segments. So far, Indonesia’s efforts provide valuable lessons. The lessons are:
Photo: Ashim D'silva | Unsplash
From “Billions to Trillions”, to the Hamburg Principles and Ambitions, to Maximizing Finance for Development (MFD), Realizing that constrained public and multilateral development bank (MDB) funding cannot fully address the critical challenges that developing nations face, the World Bank Group is pursuing private sector solutions whenever they can help achieve development goals, in order to reserve scarce public finance for when it’s needed most. This is especially true in the delivery of infrastructure.
We are approaching the end of year two of implementing the Sustainable Development Goals (SDGs). In September 2015, global leaders from 193 countries set a 15-year deadline – by the year 2030 – to reach the SDGs, a roadmap to end poverty, promote equality, protect people and the planet, while leaving no one behind.
What have countries accomplished in these past two years at the local level – where people receive vital goods and services to live and thrive – in areas such as health, education, water, job training, infrastructure? (The results are mixed) Have we raised enough financing? (Likely not). Do we have adequate data to measure progress? (Not in all countries). Some global development leaders have expressed concern that we may not be on track to reach critical SDGs in areas such as health and poverty.
To achieve the SDGs, we have to focus on building capacity of development actors at the local level to finance and deliver services that change the lives of people in their communities. This view is well-supported by a joint United Nations Development Program (UNDP)-World Bank Group (WBG) report, which shows that (MDGs), the predecessor of the SDGs.
The lynchpin for successful local implementation of the SDGs is SDG 11, which focuses on making cities and human settlements inclusive, safe, resilient, and sustainable. , not least because the world population is likely to grow by a billion people – to 8.6 billion – by 2030, with most of this growth to be absorbed by urban areas in developing countries.
Tackling the challenges facing cities, such as infrastructure gaps, growing poverty, and concentrations of informal housing requires a multi-faceted approach that includes coordinated regional planning with strong rural-urban linkages, effective land use, innovative financing mechanisms, improved and resilient service delivery models, sustained capacity building, and the adoption of appropriate smart and green growth strategies.
The WBG is working with our many partners, including countries, the United Nations, the private sector, and civil society to provide more effective, coordinated, and accelerated support to countries for implementing the SDGs at the national and local levels. We have provided below examples from three countries, from diverse regions and situations, which have begun this work in earnest.
Following the end of a 50-year conflict in 2016, Colombia has a chance to consolidate peace after the signing of a peace agreement. The National Development Plan of 2014-2018 includes an ambitious reform program focusing on three pillars: peace, equity, and education. Through strong collaboration with all stakeholders – local governments, communities, civil society, businesses, and youth, among others – , enhancing basic services in both rural and urban areas.
Medellin city, which in the 1990s had the highest murder rate in the world, has emerged as a confident leader, implementing an integrated and multi-sector approach that has included a combination of violence prevention programs, and the transformation into a prosperous, inclusive, and livable city. Their efforts, with support from the WBG and other partners, have the strong support of local business leaders who recognize that improving poor people’s lives can help reduce the core inequities that fueled conflict in the past. The Government of Colombia is also implementing a program to enhance the capacity at the municipal level in public finance, planning, and management, to help build infrastructure and improve service delivery.
- sustainable cities
- united nations
- green growth
- Sustainable Development
- Global Goals
- Sustainable Communities
- Climate Change
- Migration and Remittances
- Social Development
- Urban Development
- Latin America & Caribbean
- East Asia and Pacific
India’s state of Chhattisgarh faced a daunting challenge in the mid-2000s. About half of its public food distribution was leaked, meaning that it never reached the intended beneficiaries. By 2012, however, Chhattisgarh had nearly eliminated leakages, doubled the coverage of the scheme, and reduced exclusion errors to low single digits.
How did they do it?
Finding a good job is increasingly difficult – especially for young people. Globally, young people are up to four times more likely to be unemployed than adults. Furthermore, the lack of opportunity can have devastating consequences for their long-term employment outcomes. Youth often lack the skills and competencies that are in high demand from employers, but they also face information gaps about which relevant skills they should signal to prospective employers.
To better understand youth and skills trends in emerging markets, the Solutions for Youth Employment (S4YE) Coalition embarked on a research collaboration with LinkedIn to analyze demand and supply side data from 390,000 entry-level job postings and 6.4 million LinkedIn profiles of young people (aged 21-29) in four diverse middle-income countries. Using big data analytics, the recently released report The Skills Gap or Signaling Gap: Insights from LinkedIn in emerging markets of Brazil, India, Indonesia, and South Africa brings the following three insights on what skills employers in those countries are looking for in youth hires.
We know that fiscal policy can be harnessed to reduce inequality in low- and middle-income countries, but until now, we knew less about its ability to reduce poverty. Our recent volume looks at the revenue and spending of governments across eight low and middle income countries (Armenia, Ethiopia, Georgia, Indonesia, Jordan, Russia, South Africa and Sri Lanka), and it reveals that fiscal systems, while nearly always reducing inequality, can often worsen poverty.
: refugees, rapid and unsustainable urbanization and climate change, failure to meet basic infrastructure needs, youth unemployment and disengagement, and stubbornly poor health and education outcomes, to name a few. Set against a backdrop of political and public pressure to do more with less – and see results faster than ever – even the most optimistic among us are likely to view the glass half empty.