The launch of the Sustainable Development Goals (SDGs) at the recent U.N. General Assembly meetings brought especially welcome news: The future we want now officially includes universal health coverage (UHC), as defined under SDG 3, target 8. We also heard, the same week, from a group of economists from 44 countries, who publicly stated that “UHC makes economic sense.” It seems the tide has turned toward making essential health care available to all who need it, without creating financial hardship.
Women’s participation in Turkey’s labor force is comparatively low. Why is that, especially when Turkey has acted to increase women’s skills and education?
One reason is that more needs to be done to help women balance work and family life, particularly when it comes to care responsibilities. As of 2014, only 1-in-3 working age women were active in the labor market (33.6%)—nearly half the OECD average of 64%. According to the recent Demographic and Health Survey in Turkey, 1/3 of women report not working due to childcare responsibilities. Pre-primary school enrollment in Turkey is 29%--far less than OECD’s 81%, as well as countries with similar levels of GDP per capita, such as Chile, Mexico, Bulgaria, and Romania. Early childhood development and education is not only important to a child’s development, it also helps mothers combine family and work responsibilities and continue to participate in the labor force.
To gain a better understanding of how innovation in public-private partnerships (PPPs) builds on genuine learning, we reached out to PPP infrastructure experts around the world, posing the same question to each. Their honest answers redefine what works — and provide new insights into the PPP process. This is the question we posed: How can mistakes be absorbed into the learning process, and when can failure function as a step toward a PPP’s long-term success?
Our eighth and final response in this eight-part series comes from Thomas Maier, Managing Director, Infrastructure with the European Bank for Reconstruction and Development (EBRD).
For countries new to PPPs, there is no doubt a steep learning curve. Fortunately, there is also a growing body of experience that such countries can learn from — the key is to understand the essence of the lessons and then incorporate these changes into the design of government support for PPPs.
Ultimately there is, of course, no substitute for good project preparation, local capacity and the development of solid legal frameworks and local capital markets — we all know these are the building blocks for the long-term success of any country’s PPP program.
Focusing on lessons learned from EBRD’s region, two current examples from Kazakhstan and Turkey come to mind.
As the father of four children, I know how important access to good, quality health care is. All parents aspire to be able to provide the same for their children. That’s why we at the World Bank Group are working with our partners around the globe to make universal health coverage a reality for all.
Uniting finance and development has been a lifelong passion of mine. Earlier in my career, I supported then French President Jacques Chirac with the development of an international airline ticket solidarity tax to provide global public goods for the poor. This kind of innovative thinking eventually led to the creation of UNITAID which works to prevent, treat, and diagnose HIV/AIDS, tuberculosis, and malaria more quickly, cheaply and effectively. Other innovative financing mechanisms include the International Finance Facility for Immunization and the Global Vaccine Initiative.
Nurturing startups is not just about providing funding. It’s also about encouraging innovation and bold ideas, building a supportive network of capital and expertise, and providing opportunities for sharing knowledge. That’s why IFC’s Istanbul Operations Center recently organized Innovation Marketplace, an invitation-only event for more than 20 local and regional companies and 16 hand-picked startups that sought to develop new partnerships and encourage entrepreneurship in Turkey.
The urgent challenge of generating jobs and incomes – as the world’s working-age population is poised to soar – will require making the most of all the job-creating energies of the private sector and the strategy-setting skill of the public sector. Today in Ankara, Turkey, the World Bank Group renewed its commitment to strengthen the global economy’s most promising and inclusive source of job creation: small and medium-sized enterprises (SMEs).
At a signing ceremony at the B20 conference of global business leaders – coinciding with the G20 forum of government leaders from the world’s largest economies – the Bank Group joined in a partnership with a new organization promoted by the B20: the World SME Forum (WSF), which is to become the global platform to coordinate practical assistance and policy support for SMEs.
Based in İstanbul, WSF has been founded through a partnership between the Union of Chambers and Commodity Exchanges of Turkey (TOBB), the International Chamber of Commerce (ICC), and ICC’s World Chambers Federation.
World Bank Group President Jim Yong Kim – in Ankara, Turkey, on September 4, 2015 – signs a Memorandum of Understanding to confirm the Bank Group's partnership with the World SME Forum. Also signing the document, along with President Kim, is Rifat Hisarciklioglu, the Chairman of B20 Turkey and the President of TOBB (the Union of Chambers and Commodity Exchanges of Turkey).
SMEs are a vital engine of innovation and entrepreneurship, and the success of the SME sector is central to every country’s prospects for job creation and economic growth. Providing support for SMEs is a fundamental priority for the World Bank Group, as we pursue our global goals of eradicating extreme poverty by the year 2030 and boosting shared prosperity.
SMEs are crucial to every economy: They provide as much as two-thirds of all employment, according to a recent survey of 104 countries – and, in the 85 countries that showed positive net job creation, the smallest-size enterprises accounted for more than half of total net new jobs.
- Competitive Industries
- Competitive Sectors
- Competitiveness Policy
- Jobs and Development
- job market
- job creation
- Small and Medium-Sized Enterprises
- Law and Regulation
- Labor and Social Protection
- Private Sector Development
- Public Sector and Governance
- Financial Sector
It is important to distinguish between projects that exceed expectations — and therefore generate greater than expected financial returns to both parties, yet require additional, unanticipated capital investments — and struggling projects where there is an urge by the developer to reduce ongoing investment and maintenance.
“Successful PPPs are all alike…”
To paraphrase Tolstoy, successful PPPs are all alike, but every unsuccessful PPP is unsuccessful in its own way.
Successful projects are easier to manage owing to positive cash flows, and could additionally incorporate an obligation by the developer to increase its investment according to certain capacity-related triggers on the basis of floor and ceiling for project returns. This could also be supplemented by sponsor commitments to co-investment or to extend the concession terms based on minimum returns, as well as a sponsor sinking fund to ensure independence from the uncertain and tedious public budgeting process. Very often, concession agreements focus on what to do when things go wrong, but not how to continue to meet demand when things go well, especially toward the end of the concession term.
A boat trip from Port Elizabeth to Kingstown, in the Caribbean country of Saint Vincent and the Grenadines, is a one-hour trip that locals take several times a day. It was during one of these journeys that the boat of Kamara Jerome, a young Vincentian fisherman, ran out of gas six miles from Bequia City in what is termed locally as the "Bequia Channel." While waiting for help with strong wind gusts and the sun on his head, the idea of developing a boat that would run with wind and solar energy was born. Soon after, the idea became a prototype; a boat using green technology was on the water making 20-year-old Jerome a winner of international innovation competitions and a role model to other Caribbean youth.
In Mexico, young engineer Daniel Gomez runs a multimillion bio-diesel company originally conceived as a research project for his high school chemistry class. Gomez and his partners - Guillermo Colunga, Antonio Lopez, and Mauricio Pareja - founded SOLBEN (Solutions in bio-energy in Spanish) in their early twenties.
Although Daniel and Kamara have different educational backgrounds, they do share one important skill, the ability to identify a problem, develop an innovative solution, and take it to the market. In other words, being an entrepreneur, an alternative to be economically active, that seems to work and not only for a few.
- Global Youth; youth
- Global Economy
- Financial Sector
- The World Region
- South Asia
- Middle East and North Africa
- Latin America & Caribbean
- Europe and Central Asia
- East Asia and Pacific
- Yemen, Republic of
- Western Sahara
- West Bank and Gaza
- Wallis and Futuna Islands
- Virgin Islands, US
- Virgin Islands, British
- Venezuela, Republica Bolivariana de
- United States Minor Outlying Islands
- United States
- United Kingdom
- United Arab Emirates
- Turks and Caicos Islands
- Trinidad and Tobago
- Taiwan, China
- Syrian Arab Republic
- Svalbard and Jan Mayen Islands
- St. Vincent and the Grenadines
- St. Pierre & Miquelon
- St. Lucia
- St. Kitts and Nevis
- St. Helena
- Sri Lanka
- South Sudan
- South Africa
- Solomon Islands
- Slovak Republic
- Sierra Leone
- Saudi Arabia
- Sao Tome and Principe
- San Marino
- S. Georgia and S. Sandwich Islands
- Russian Federation
- Puerto Rico
- Papua New Guinea
- Northern Mariana Islands
- Norfolk Island
- New Zealand
- New Caledonia
- Netherlands Antilles
- Micronesia, Federated States of
- Marshall Islands
- Macedonia, former Yugoslav Republic of
- Macao SAR, China
- Lao People's Democratic Republic
- Kyrgyz Republic
- Korea, Republic of
- Korea, Democratic People's Republic of
- Jersey, C.I.
- Isle of Man
- Iran, Islamic Republic of
- Hong Kong SAR, China
- Holy See (Vatican City State)
- Heard and McDonald Islands
- Guernsey, C.I.
- Gambia, The
- French Southern Territories
- French Polynesia
- French Guiana
- Faroe Islands
- Falkland Islands (Malvinas)
- Equatorial Guinea
- El Salvador
- Egypt, Arab Republic of
- Dominican Republic
- Czech Republic
- Cote d'Ivoire
- Costa Rica
- Cook Islands
- Congo, Republic of
- Congo, Democratic Republic of
- Commonwealth of Independent States
- Cocos (Keeling) Islands
- Christmas Island
- Central African Republic
- Cayman Islands
- Cabo Verde
- Burkina Faso
- Brunei Darussalam
- British Indian Ocean Territory
- Bouvet Island
- Bosnia and Herzegovina
- Antigua and Barbuda
- American Samoa
- Bahamas, The
Turkey has radically transformed its land title registration system, and decreased the turnaround time for recording property transactions to just two hours.
I remember my first visit to the agency in 2007. The agency is heavily staffed (15,000), has more than 100 branches and its main headquarters had once almost fallen apart. In my first visit, the head of the agency gave me a nice surprise: he showed me a land book that dated back to the 18th century, and included a record of my great-great-grandfather’s land title in Palestine.
The head of the agency had great plans to transform the agency by improving land records, introducing computerization and integrating the system into the overall e-government program, and setting a time limit of one day to register land transactions. Based on that an ambitious reform agenda, we worked together over a few months’ ‘time to prepare the cadastre modernization project. The Bank partly financed this reform through a $100 million loan, while the Turkish government funded the rest of the program. The project started in 2007, and I moved on to other positions later that year.
This time I had a second surprise. The institution is completely transformed. The main office has been completely and beautifully renovated. It now resembles any other government office in the US or Europe. The agency presented its achievements. It was amazing to see what had been accomplished in 8 years. The government is about to complete the renovation of the cadastre and the computerization of all land records, including historical records from Ottoman times. Service delivery has improved dramatically, with property transactions now being registered within 2 hours. They also integrated cadastre registration into the overall e-government program, which allows any Turkish citizen to access the record of their land/property online. Above all, customer satisfaction has reached 97% — something unheard of for land agencies, often known to be among the most corrupt agencies in many countries.
But that doesn’t mean lessons cannot be transferred. Even if conditions vary, the underlying principles of PPPs remain the same regardless of where it is executed. For example, a PPP is always a long-term contractual agreement between a government entity and a private company; it must be financially sound if it is to work; and risks must be identified, mitigated and allocated effectively. The details of how these principles are applied will vary depending on the regulatory and market conditions of each country. But the examples remain valid nonetheless.
In Ukraine, PPPs have been slow to catch on, initially because the business climate was so weak. The country’s neighbors were all more successful at implementing PPPs: Poland has 65 PPP projects underway according to the Ministry of Economy’s PPP database, and Moldova’s first PPP established a radiology and diagnostic imaging center. But none of Ukraine’s neighbors have done as well with PPPs as its Black Sea neighbor, Turkey.
Turkey is a regional PPP powerhouse. The 2014 PPI Global Update, which provides information on private infrastructure investment in emerging markets, puts Turkey in second place globally for the second year in a row with US$12.5 billion. In 2014 alone, 17 new projects were launched in mainly in power and transport. Not surprisingly, Ukrainian officials have been looking with great interest to Turkey’s success.