Welcome to the “10 Candid Career Questions” series, introducing you to the PPP professionals who do the deals, analyze the data, and strategize on the next big thing. Each of them followed a different path into PPP practice, and this series offers an inside look at their backgrounds, motivations, and choices. Each blogger receives the same 15 questions and answers 10 or more that tell their PPP career story candidly and without jargon. We believe you’ll be as surprised and inspired as we were.
Latin America & Caribbean
Public transport is an important mode of transport, especially for low-income populations. Cities, however, struggle to provide public transport services for fares that are both affordable and financially sustainable. Since meeting both goals is quite difficult, transport systems either end up relying on high levels of subsidies or charging transit fares that are too expensive for the city’s poor.
To tackle this challenge, the World Bank in 2013 supported the city authorities of Bogotá, Colombia, in designing a pro-poor transport subsidy scheme that would help low-income populations have access to more affordable public transport. In Bogotá fares for its new public transit system are set higher -closer to cost-recovery levels-, than in other cities that provide greater public subsidies to their operators. Despite having more sustainable fares, Bogotá risks excluding people from its transport services—in fact, households in the poorest areas of the city spend a greater percentage of their income on transport, between 16% to 27%, compared to a maximum of 4% in areas that are relatively richer.
When you ask young people from developing countries what they want for their country, they often say opportunity. The next generation wants jobs and knowledge; they want to be connected to the global economy.
Extractive industries can foster these types of opportunities through investment in skills training and transfer of technology to local workers and companies. These technical skills are demanded in the global marketplace today and empower workers to expand their horizons and lower their risk of unemployment.
We are discussing these issues today at a “Reconciling Trade and Local Content Development” conference we are co-hosting with the Mexican Ministry of Economy. This event aims to share knowledge on how investment in extractive industries can be leveraged to generate opportunities for economic diversification and employment.
The most valuable contribution to long term sustainability comes from the ability of extractive industries to generate benefits through productive linkages with other sectors. The International Finance Corporation (IFC) helped make this happen in Barmer, India, where we supported a Skill Development Center that trained 7,000 people to work in the operations of Cairn Energy. Not only did this training create direct job opportunities for the local population, but the acquired skills fostered the creation of an entire eco-system of small and medium-size enterprises that provided products and services to the oil company and related sectors.
How to regulate and manage the emerging services of shared and on-demand mobility? This was a topic of much debate during the most recent Transforming Transportation event, a major global conference of transport professionals organized by the World Bank and the World Resources Institute in Washington DC in January 2016.
One recent development from Sao Paulo stands out as a worthwhile effort to balance the objectives of promoting innovation by Transportation Network Companies (TNCs, such as Uber, Lyft, EasyTaxi, 99Taxi, and others) and ridesharing services (such as BlablaCar, Caronetas, Tripda and others) with the interests of the city and its residents.
The Municipal Government of Sao Paulo has published for public comments until January 27, 2016 a draft decree to charge TNCs an upfront fee based on an estimate of vehicle-kilometers, also referred to as “credits”, to be used by its fleet of passenger cars in a two month period, plus a surcharge if credits are exceeded. The idea is that any registered TNC could bid in an online public auction to purchase credits periodically and with certain limitations to ensure competition. This approach would create a market for these credits and be aligned with the principle commonly known in the vehicle insurance industry as “pay-as-you-drive”, and would allow the city to receive a fee from TNCs for the commercial use of its public road infrastructure, which can then be used to better manage and maintain it. The decree would exempt free ridesharing services which the city believes would help reduce the total number of vehicle-kilometers on its congested road network.
. That’s been true in the State of Bahia, Brazil, following the Sometimes, the most persuasive case for a PPP is the success of a past partnership in the same sector Hospital do Suburbio project, which closed in 2010 with help from IFC’s PPP advisory services and has been providing people in one of the State’s poorest suburbs with access to high quality healthcare. Based on the success of the PPP in meeting state government goals for improving local health services, Bahia government officials approached IFC again to discuss a new initiative – , including to rural communities. a partnership to offer imaging and diagnostic services and facilities across the state
Just as the Hospital do Suburbio emerged from great need, people in Bahia faced a shortage of high quality and complex imaging equipment and tests. Some of these were as basic as X-rays and mammography; others demanded state-of-the-art machines and services for CT Scans and MRI tests. This fed into the Bahia’s larger public health challenges, which included low bed turnovers and overcrowded hospitals.
The partnership with the private sector was created to solve this “package” of problems. It was undertaken in partnership with the Brazilian Development Bank (BNDES) and the Inter-American Development Bank (IDB), which together manage the Brazil PSP Program fund, a project that fosters the development of infrastructure and services in Brazil in partnership with the private sector.
The popular image of the out-of-school, out-of-work youth of Latin America is not generally a positive one. For one thing, the term used to label them – “ninis” – defines them in the negative. It comes from “ni estudian ni trabajan”, the Spanish phrase for those who "neither study nor work.”
Dear Colleagues and Friends,
I wanted to take this opportunity to wish you a Happy New Year, and reflect on several notable events from 2015 - a year of remarkable progress in global health, and remarkable expansion for the World Bank Group's health, nutrition and population portfolio, which grew to more than $10 billion.
After getting off to a slower start than our colleagues in health, results-based financing (RBF) is gaining much momentum in education.
Throughout Latin America, youth who are neither working nor in school are often labeled ninis, from the Spanish phrase “ni estudia ni trabaja" (neither studies nor works). One in five youth in the region is a nini, and the increase in their number since 1992 has been entirely due to young men. Read more in the new paper: "Out of School and Out of Work : Risk and Opportunities for Latin America’s Ninis"
The group of Latin Americans still vulnerable to fall back into poverty has moved tantalizingly close to middle class status in the past decade. The so-called vulnerable, who have escaped poverty but have not yet made it to the middle class, remain the largest socio-economic group in Latin America. In fact, their share of the population increased slightly (38 percent in 2013, up from 35 percent in 2003). But, importantly, their living conditions improved significantly in the same period. The incomes of the vulnerable are today much closer to those of the middle class – even if their growth in incomes was not enough to cross over to the middle class.