The invitation for new SAFE Trust Fund applications is now open until 7 March 2016
What is SAFE?
The investment needs for low-carbon, climate-resilience growth are substantial. Public resources can bridge viability gaps and cover risks that private actors are unable or unwilling to bear, while the private sector can bring the financial flows and innovation required to sustain progress. For this partnership to reach its full potential, investors need to be provided with the necessary signals, enabling environments, and incentives to confidently invest in emerging economies.
In Europe, the year 2015 will be remembered as the year of the “refugee crisis.” Hundreds of thousands of refugees have crossed treacherous waters and borders to flee war and persecution in Syria and the wider Middle East and Africa in search of protection in the European Union. Transit and destination countries have been struggling to manage the refugee flow and to register and shelter the new arrivals. At the same time, the EU is debating how best to tackle the sources of forced displacement and is stepping up support to Turkey, Jordan, and Lebanon, who host the lion’s share of Syrian refugees. But largely missing from the frenetic activity so far, except in Germany, has been a thorough discussion of the next step: how to manage the integration of refugees in host countries beyond the initial humanitarian response of shelter and food.
One walks into a doctor’s office knowing what hurts but with little knowledge of what should be done to fix it. Identifying proper treatment requires sophisticated tests, participation of experts and, often, second opinions.
Cities, arguably, are as complicated as human bodies. Our knowledge of diagnosing cities, however, is far less advanced than in human biology and medicine. Most mayors know very clearly what they want for their cities – jobs, economic growth, high incomes and a good quality of life for the people. But it is very difficult to identify what prevents private-sector firms, the agents that create jobs and provide incomes, from growing and delivering these benefits to a city. And we have no X-ray machine to aid in the effort.
As a part of the World Bank Group's Competitive Cities project, we thought hard about ways to help cities identify the roots of their problems and design interventions to address them. We set out on a journey to put together methodologies and guidelines for cities that want to figure out what they can do to help firms thrive and create jobs. We learned from our own experience of working with cities, and from other urban practitioners. We reviewed many methodological and appraisal materials, and we trial-tested our ideas.
So what have we achieved? We certainly didn’t invent an X-ray machine, but we have developed “Growth Pathways” – a methodology and a decision-support system to help guide cities and practitioners through diagnostic exercises.
From the smallest rural villages in Bangladesh to the large, bustling metropolitan centers of Cairo or Istanbul, small and medium enterprises (SMEs) are the lifeblood of Islamic communities around the world, keeping local economies humming.
I first became interested in the potential of leveraging Islamic finance to grow SMEs when I led a seminar on the topic in 1997. I’ve come full circle, almost 20 years later, when I had the opportunity to speak last month in Istanbul at a conference on “Leveraging Islamic Finance for SMEs” organized by the World Bank Group, the Turkish Treasury, the Islamic Development Bank and TUMSIAD, the largest association of SMEs in the country with 10,000 members.
In 1964, I came to the United States from South Korea, then an extremely poor developing country that most experts, including those at the World Bank, had written off as having little hope for economic growth.
My family moved to Texas, and later to Iowa. I was just 5 years old when we arrived, and my brother, sister, and I spoke no English. Most of our neighbors and classmates had never seen an Asian before. I felt like a resident alien in every sense of the term.
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.