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Europe and Central Asia

Six Charts on How Corruption Impacts Firms Worldwide

Ravi Kumar's picture

At times, I ask my friends in Nepal, why they would not launch a business, especially when they have funds. A common obstacle for everyone is that they say you have to bribe government officials to even open a business.
 
Turns out, this isn’t unique to Nepal. According to Drivers of Corruption, a report recently published by the World Bank, developing countries are generally more affected by corruption than other countries.

Here are six charts that show firms’ experiences with corruption around the world. These charts are based on surveys of more than 13,000 firms in 135 countries, by World Bank Enterprise Surveys.

Check out these charts and tell us if you are surprised. 

There is No Middle Income Trap

Ha Minh Nguyen's picture

Concerns about the so-called “middle-income trap” have recently emerged among many middle-income countries, particularly after the term was coined in 2007 by two World Bank economists.  Worried that they may become “trapped” at the middle-income level, these countries are seeking a set of policies that can help them achieve strong and sustained growth and eventually help them join the league of high-income countries.

 In our recent paper, we try to shed some light on both issues. First, we do not find that countries are trapped at middle income. “Escapees” – countries that escaped the middle-income trap and obtained a per capita income higher than 50% of the U.S. level – tend to grow fast and consistently to high income, and do not stagnate at any point as a middle-income trap theory would suggest. In contrast, “non-escapees” tend to have low growth at all levels of income. In other words, while the existence of a middle income trap implies that growth rates systematically slow down as countries reach middle-income status, no such systematic slowdown is apparent in the data. Second, we provide some descriptive and econometric evidence for a different set of “fundamentals” that enable middle-income countries to grow faster than their peers. We find that faster transformation to industry, low inflation, stronger exports, and reduced inequality are associated with stronger growth.

Open Contracting Data Standard: Better Data for Better Decisions

Marcela Rozo's picture
Future is Open


Informed decision-making is crucial to the success of policies and reforms that foster growth and prosperity. So, how can we help decision makers make better decisions?
 

Life in the Slow Lane - The Nairobi Grind

Apurva Sanghi's picture

I’ve lived in cities famed for their gridlock: 1990s Bangkok (gridlock was as bad as it could be); Los Angeles (gridlock + pollution); New Delhi (gridlock + pollution + honking galore); Nairobi’s gridlock is surely up there.

But is traffic “bad”? What sort of question is that you ask? Surely, the answer is 'yes', you say: time wasted stuck in traffic, the frustration, the needless idling of vehicles which creates both local (and global) pollution and so on. But let me suggest this: traffic congestion is also a sign of development. In fact, the more vibrant and dynamic the city as Nairobi surely is, the more traffic congestion you might expect...to paraphrase Gordon Gekko from the movie Wall Street, “Traffic is…good”!

Reflections on International Day of Persons with Disabilities

Maitreyi Bordia Das's picture
international-day-persons-disabilities
"Disability is no barrier. Landmine victims play volleyball." Photo: AusAID

I am often asked how “we” – development professionals and practitioners at large - can make a difference to social exclusion. It is an opportune day to reflect on this by thinking about a diverse group of historically excluded people. The focus of today’s International Day of Persons with Disabilities is appropriately on Sustainable Development: The Promise of Technology.” Because the power of technology in rehabilitation and hence, for inclusion, is uncontested. Let me quickly add that technology is a necessary, but by no means a sufficient condition for enhancing the functional ability of persons with disabilities. 

Technology attenuates many barriers that disability raises. It has changed the way persons with disabilities live, work and study. The seminal World Report on Disability emphasizes the role of technology for the inclusion of persons with disabilities in markets, in services and in physical, political and social spaces. It points out for instance, that assistive devices can substitute or supple­ment support services, possibly even reduce care costs. The National Long-Term Care Survey in the United States found that higher use of technology was associated with lower reported disabil­ity among older people. The fascinating Digital Accessible Information SYstem (DAISY) consortium of talking-book libraries aims to make all published information acces­sible to people with print-reading disabilities. And the examples could go on.

On the Road from Yerevan to Tbilisi

David M. Gould's picture
 
On the road from Yerevan to Tbilisi
On the road from Yerevan to Tbilisi
I recently spent three days in Yerevan on a mission to learn a bit more about Armenia’s overall development challenges for a World Bank study on “Connectivity”, before heading off to Tbilisi, Georgia and Baku, Azerbaijan to do the same.

It was my first time visiting Armenia, so it was a fascinating trip and I learned a tremendous amount about the country and its people.

Of course, in three days one can only get a small sample of the major issues that challenge development, rather than a rich flavor for the deep subtleties that represent the people or factors that drive the economy. But, given my basic knowledge of the country, the new information I gained was a tremendous leap forward.

On the Road from Yerevan to Tbilisi

David M. Gould's picture
 
On the road from Yerevan to Tbilisi
On the road from Yerevan to Tbilisi
I recently spent three days in Yerevan on a mission to learn a bit more about Armenia’s overall development challenges for a World Bank study on “Connectivity”, before heading off to Tbilisi, Georgia and Baku, Azerbaijan to do the same.

It was my first time visiting Armenia, so it was a fascinating trip and I learned a tremendous amount about the country and its people.

Of course, in three days one can only get a small sample of the major issues that challenge development, rather than a rich flavor for the deep subtleties that represent the people or factors that drive the economy. But, given my basic knowledge of the country, the new information I gained was a tremendous leap forward.

Corporate Social Responsibility or Corporate Self Promotion?

Apurva Sanghi's picture
Changing the dialogue on CSR

 
Image by Njeri Gitahi

The modern era of CSR – corporate social responsibility – arguably began in 1953 when Howard Bowen published his seminal book Social Responsibilities of the Businessman, in which he queried “what responsibilities to society may businessmen reasonably be expected to assume” (clearly, businesswomen were off the hook – or they did not exist). Since then CSR has evolved into a term that embraces a range of activities from the superficial, and even irrelevant, to ones that are changing the way in which business interacts with the society in which it operates.
 

The Best School for Entrepreneurship is on the Job, Not in the Classroom

Wolfgang Fengler's picture

This has been a very engaging debate and I want to thank Omar as well as the organizers and contributors. In this concluding statement, I’d like to highlight both those areas where we agree and those where we still end up with different perspectives.

We can agree on the following:
 

Skills Gaps and Jobs Strategies

Omar Arias's picture
Working at a call center in Romania The blog I posted to debate with my Bank colleague Wolfgang Fengler the chicken-and-egg question of which comes first, skills or jobs, generated a rich exchange and contributions. While the question was framed around tackling the problem of unemployment in the Western Balkan countries, it naturally applies to almost any country. I want to thank all of those who took the time to write, whether or not they agreed with my main thesis: that countries should invest and strive to develop the basic skills that lay the foundation for the technical or job-specific skills that should be in turn acquired a la par with the changing needs of labor markets.
 

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