Syndicate content

East Asia and Pacific

Encouraging investment policy and promotion reform in times of uncertainty

Amira Karim's picture

Foreign direct investment (FDI) is often considered by economists and policymakers as integral to economic growth – a cornerstone of modernization, income growth and employment.

Yet for many countries, FDI can be elusive, and chasing it can lead policymakers to frustration.

Even economies built by FDI – for example, Singapore – are on this continuous chase, aware that attracting and retaining FDI is not an easy task. They also know that the benefits of FDI do not accrue automatically and evenly across all countries, sectors and local communities.

But first, there must be a realization of the importance of FDI. Singapore – a country once called a “political, economic and geographic absurdity” by its first Prime Minister, Lee Kuan Yew – never doubted the centrality of FDI, promoting it from the outset of its independence. Singapore saw in FDI an opportunity to develop a substantial industrial base, to create new jobs for its then-poor and low-skilled workforce, and to generate crucial tax revenues for its nascent government to spend on education and infrastructure.

Two decades after that initial strategic acceptance of FDI, Singapore emerged as a newly industrialized economy.

It is little surprise, then, that Singapore’s experience was highlighted at a recent World Bank Group peer-to-peer learning event here in the city-state. Responding to strong demand from client countries, two teams from the Trade & Competitiveness Global Practice – the Investment Policy and Promotion (IPP) team and the Singapore Hub team – co-hosted the learning forum entitled "Promoting Investment Policy and Promotion Reform in Times of Uncertainty."

Supported by SPIRA – the Support Program on Investment Policy and Related Areas – the forum enabled some 80 government officials from East Asia, South Asia and Africa to share their experiences in economic and export diversification; to discuss the role of international trade and investment agreements as leverage toward domestic reforms; and to discuss how to translate investment policy and promotion strategies into measurable results. SPIRA, implemented by the IPP team, supports client countries across all regions in attracting, facilitating and retaining different types of FDI.

Chongqing, China: Revitalizing urban growth, sustainably

Ede Ijjasz-Vasquez's picture
China is shifting its focus away from urban expansion toward regional revitalization and urban regeneration. Chongqing, a megacity in southwestern China, is exploring ways to regenerate urban growth and build resilient, livable, and sustainable communities.  

What are Chongqing's plans? How will they affect the lives of the city's residents? Watch a video as World Bank Senior Director Ede Ijjasz-Vasquez (@Ede_WBG) and Deputy Director Zhou Tao from the Chongqing Municipal Development and Reform Commission discuss urban regeneration
 
 

Related:


 

What China’s Appetite for Meat means for Mongolia

Miles McKenna's picture
The concept of farm-to-fork can be complicated when it comes to meat. Fresh meat could be from the farm next door—or it could be from 10,000 kilometers away, having just arrived on a flight from the other side of the globe. With advances in cold chain transportation and logistics, distances that once took meat weeks to travel are covered in days, if not hours. And for a handful of low- and middle-income countries, meat exports are big business.  

Competitive Cities: A Game Changer for Malaysia

Judy Baker's picture
Photo: mozakim/bigstock


As an upper-middle income country with a majority of its population living in cities, Malaysia is situated among the countries that prove urbanization is key to achieving high-income status. Asking “How can we benefit further from urbanization?” Malaysian policymakers have identified competitive cities as a game changer in the 11th Malaysia Plan. To this end, the World Bank has worked with the government to better understand issues of urbanization and formulate strategies for strengthening the role of cities through the report, “Achieving a System of Competitive Cities in Malaysia.”

While Malaysia’s cities feature strong growth, low poverty rates, and wide coverage of basic services and amenities, challenges still remain. 

Its larger cities are characterized by urban sprawl, particularly in Kuala Lumpur, where population density is low for an Asian metropolis. This inefficient urban form results in high transport costs and negative environmental impacts. This is matched by low economic density, indicating Malaysia’s cities can do better in maximizing the economic benefits from urban agglomeration.  



A second challenge hampering Malaysia’s cities is the highly centralized approach to urban management and service delivery, a system that impedes the local level, and obstructs service delivery and effective implementation of urban and spatial plans.

Third is a growing recognition of the importance of promoting social inclusion to ensure that the benefits of urbanization are widely shared.

Vietnam studies Malaysia’s experience with facilitating state relationships

Jana Kunicova's picture
Photo: Sasin Tipchai/bigstock



Vietnam has a vision. By 2035, it aspires to become a prosperous, creative, equitable and democratic nation. Achieving this ambitious goal has set Vietnam on a path of transformation on multiple fronts – economic, social, and political.

At the core of this transformation is the re-orientation of the state’s role in economic management.  This requires adapting Vietnam’s economic governance so that the state becomes a skilled facilitator of three types of relationships: among government agencies, between the state and market, and between the state and citizens. 

Not too long ago, Malaysia walked in Vietnam’s shoes, implementing its own wide-ranging transformation. In 2009, Malaysia embarked on the National Transformation Program (NTP) that included focus on both government and economic transformations.  Malaysia had also adopted good practices that simplified regulations, which made it easier for firms to interact with the state.

Disasters, funds, and policy: Creatively meeting urgent needs and long-term policy goals

Zuzana Stanton-Geddes's picture

Photo: tro-kilinochchi / Flickr

When it comes to responding to disasters, time is of the essence. Help needs to come immediately to save lives; recovery and reconstruction have to start swiftly to lessen the impact.

However, while money is critical to this response, it’s not just about funding. Indeed, funds need to match the event scale, target the right areas and sectors, and smoothly flow to communities in need. But in order for that to happen, sound public policy on risk and frameworks have to be in place.  

To address both urgent financial needs while pursing strategic disaster risk management policy goals, countries have been using the World Bank’s development policy loan with a catastrophe deferred drawdown option or, more widely known as the Cat DDO.  

Partnerships, cornerstone to achieve Indonesia’s sustainable peatland restoration targets

Ann Jeannette Glauber's picture
Peatland. Photo: Tempo


“Peatlands are sexy!” They aren’t words you would normally associate with peatlands, but judging from the large audience that participated in the lively discussion on financing peatland restoration in Indonesia at the “Global Landscapes Forum: Peatlands Matter” conference, held May 18 in Jakarta, it seems to be true. The observation was made by Erwin Widodo, one of the speakers in the World Bank-hosted panel discussion at the event.

For me, it was a great honor to moderate a panel comprised of several of the leading voices in the space: Kindy Syahrir (Deputy Director for Climate Finance and International Policy, Finance Ministry), Agus Purnomo (Managing Director for Sustainability and Strategic Stakeholder Engagement, Golden Agri-Resources), Erwin Widodo (Regional Coordinator, Tropical Forest Alliance 2020), Christoffer Gronstad (Climate Change Counsellor, Royal Norwegian Embassy), and Ernest Bethe (Principal Operations Officer, IFC).

It was the right mix of expertise to address the formidable challenges in securing resources to finance sustainable peatland restoration in Indonesia. These include finding solutions to plug the financing gap, and identifying instruments and the regulatory framework necessary to strengthen the business case for peatland restoration. A significant amount of finance has been pledged. But one of the key issues the panel needed to address was how to redirect available finance towards more efficient and effective outcomes to reach sustainable restoration targets.

The long road to Chin state in Myanmar: A journey to build back better

Degi Young's picture

Also available in Myanmar

Chin state is the second poorest state in Myanmar, located in the mountains with poor road conditions making it difficult to travel. Photo: Kyaw Htut Aung/World Bank

My journey to Chin state in Myanmar began with a simple question from my colleague – “Where do you want to go?”

“It doesn’t matter,” I said, “Anywhere is fine.”

This was it. I had volunteered to join the World Bank Group’s Myanmar Performance Learning Review consultations, which are being held across the country this month to obtain feedback from the government, private sector and civil society on our Country Partnership Framework. Approved in 2015, the partnership is the first World Bank Group strategy for Myanmar in 30 years and consultations are being held to discuss lessons-learned, review achievements and consider adjustments.

Preparing for the future of logistics - the Singapore way

Yin Yin Lam's picture
Photo: Sarah Starkweather/Flickr
The government of Singapore recently outlined its vision for the country's future, describing how different sectors could harness technology, innovation and mega-trends in order to take the city-state to the next level. This approach includes a dedicated Industry Transformation Map for the logistics sector, which accounts for 7.7% of Singapore's GDP and over 8% of jobs. Logistics is also understood as a crucial enabler for other significant parts of the economy, such as manufacturing and trade.

How is Singapore anticipating the transformation of logistics?

Singapore has been considered a major logistics hub for quite some time, and is currently ranked first in Asia according to the Word Bank’s Logistics Performance Index. The sector, however, is experiencing significant transformations such as the rise of digitally enabled logistics services, and the emergence of new delivery capabilities (autonomous vehicles, 3D printing).

The Industry Transformation Map (ITM) will help Singaporean logistics keep its competitive edge in this rapidly evolving context, and aims to achieve a value-added of S$8.3billion (US$6 billion) by 2020. In particular, the ITM intends to strengthen innovation, productivity, as well as talent development across the logistics sector—including by leveraging trends such as artificial intelligence and collaborative robotics.

The Philippines: Resurrecting Manufacturing in a Services Economy

Birgit Hansl's picture
In recent years, the Philippines has ranked among the world's fastest-growing economies but needs to adjust to the demands of a dynamic global economy.

The Philippines is at a fork in the road. Despite good results on the growth front, trends observed in trade competitiveness, Global Value Chain (GVC) integration and product space evolution, send worrisome signals. The country has solid fundamentals and remarkable human assets to leapfrog into the 4th Industrial Revolution – where the distinction between goods and services have become obsolete. Yet it does not get the most out of this growth, especially with regards to long-term development prospects. In order to do so, the government will have to make the right policy choices.


Pages