It requires people to be active participants in development, demanding services and products that add value to their lives and engaging in behaviors that are conducive to increasing their own welfare. Health prevention is a case in point.
At our HIV Impact Evaluation Workshop in Cape Town, South Africa in 2009, I listened to Nancy Padian, a medical researcher at the Women’s Global Health Imperative, presenting a systematic review of random control trials testing the effectiveness of HIV prevention campaigns.
The study she presented explained how three dozen HIV prevention campaigns had failed to change sexual behavior and reduce HIV incidence.
The presentation gave us pause. The review dismissed the communication campaigns as an ineffective means to change behavior and slow down the HIV epidemic.
A closer look revealed that the campaigns lacked inspiring narratives, and were communicated through outdated and uninteresting outlets such as billboards and leaflets.
The question we asked ourselves was: Can we do this differently?
By some estimates it could cost as much as $4.5 trillion a year to meet the Sustainable Development Goals (SDGs), and obviously, we will not get there solely with public finance. And there’s the rub: Countries will only meet the SDGs and improve the lives of their citizens if they raise more domestic revenues and attract more private financing and private solutions to complement and leverage public funds and official development assistance. This approach is called maximizing finance for development, or MFD.
Photo: Raymond Ward | Flickr Creative Commons
Sector reform is a familiar concept for anyone working in the energy sector, particularly in developing countries. Typically, reforms involve measures such as building an institutional framework that allows for an independent regulator, improving the operational efficiency of utilities (for example, by unbundling vertically-integrated utilities), creating an environment for private sector participation, and last but not least, introducing tariffs that reflect costs. All these measures are designed with one goal in mind: to put the sector on a sustainable path and improve the quality of service for end-users.
While acknowledging the many benefits that sector reforms can bring, one issue we continue to face is the poor financial state of key power utilities. In other words, a lack of creditworthiness. Often, their lack of financial creditworthiness is the most critical obstacle to implementing investment programs. This makes utilities even more dependent on continuous government subsidies.
Cash transfers seem to be everywhere. A recent statistic suggests that 130 low- and middle-income countries have an unconditional cash transfer program, and 63 have a conditional cash transfer program. We know that cash transfers do good things: the children of beneficiaries have better access to health and education services (and in some cases, better outcomes), and there is some evidence of positive longer run impacts. (There is also some evidence that long-term impacts are quite modest, and even mixed evidence within one study, so the jury’s still out on that one.)
In our conversations with government about cash transfers, one of the concerns that arose was how they would affect the social fabric. Might cash transfers negatively affect how citizens interact with each other, or with their government? In our new paper, “Cash Transfers Increase Trust in Local Government” (can you guess the finding from the title?) – which we authored together with Brian Holtemeyer – we provide evidence from Tanzania that cash transfers increase the trust that citizens have in government. They may even help governments work a little bit better.
High and rising income inequality is a serious concern in many countries, as highlighted in the IMF’s recent Fiscal Monitor. Wealth, however, is distributed even more unequally than income, as in the picture below.
Planning is a theme in cities as ancient as Rome, Cairo, and Athens to as modern as New York and Singapore. It is used as an instrument to manage collective living. Planning remains key in shaping the urban contract of how and to what end people are willing to inhabit the same space.
Madagascar is witnessing rapid urbanization. From an overall population of 24.8 million (2016), the country has close to 7 million urbanites, compared to 2.8 million in 1993. Cities generate about 3/4 of the national GDP, with the capital city, Antananarivo, contributing more than 50%.
To bridge the municipal financing gap, cities must take coordinated action with partners, such as private investors and multilateral development agencies to build financial management institutions that are sustainable, accountable, and stable.
[Report: Africa’s Cities: Opening Doors to the World]
In East Africa, the World Bank has an operational portfolio of almost $1 billion in urban projects focused on improving financial and institutional performance across multiple local governments in Ethiopia, Kenya, Uganda, and Tanzania, as well as operations that focus in-depth on big city governments.
For example, in Uganda, World Bank projects in Kampala increased its inflation-adjusted revenues by approximately 10% in one year, and the secondary city clean audit report performance has improved from 36% to 100% over a period of two years.
Watch a conversation between World Bank Director Sameh Wahba (@SamehNWahba) and Jennifer Musisi (@KCCAED), Executive Director, Kampala Capital City Authority to learn more about Kampala’s transformation in recent years in municipal financing, and what other countries and cities can learn from this experience.
"In Chad, young people increasingly turn to innovative entrepreneurship but often become demoralized when confronted with the common issue of lack of early-stage financing.” This is how Parfait Djimnade, co-founder of Agro Business Tchad, a leading e-commerce agribusiness and social enterprise in Chad, described the challenge many aspiring entrepreneurs face in securing the necessary capital to fund and grow their start-ups, specifically in the Sahel and West Africa.
The frustration Parfait highlights is common across the Africa region, where more than 40 percent of entrepreneurs cite access to finance as the major factor limiting their growth, according to World Bank Enterprise Surveys. West African start-ups and innovative young SMEs are indeed facing the classic ‘valley of death’ — the space between where the entrepreneur’s own resources from family and friends (“love money”) gets depleted and when the company is financially viable enough to attract later-stage investment and financing available on the market. The shortage of financing in the market starts from the pre-seed stage (US$20,000) to early-venture capital stage (US$1 million).
. The sector is an engine of job creation: , while the share of jobs across the food system is potentially much larger. In Ethiopia, Malawi, Mozambique, Tanzania, Uganda, and Zambia, the food system is projected to add more jobs than the rest of the economy between 2010 and 2025.
Anuella Hélaise is the winner of the blog post contest entitled À l’écoute de nos enfants (Listening to Our Children) organized by the World Bank office in Abidjan. The contest asked young high school students to express their views on Côte d’Ivoire’s technology gap, the focus of the most recent economic update on Côte d’Ivoire.