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job creation

Tangier, Morocco: Success on the Strait of Gibraltar

Z. Joe Kulenovic's picture
 Z. Joe Kulenovic
Modern factories, seaport terminals, and technical schools, plus priceless cultural monuments: Tangier, Morocco

In late 2014, the World Bank’s Competitive Cities team visited the Moroccan city of Tangier, to carry out a case study of how a city in the Middle East & North Africa Region managed to achieve stellar economic growth and create jobs for its rising population, especially given that it is not endowed with oil or natural gas reserves like many others in the region.
In just over a decade, this ancient port city went from dormant to dominant. Between 2005 and 2012, for example, Tangier created new jobs three times as fast as Morocco as a whole (employment growth averaged 2.7% and 0.9% per year, respectively), while also outpacing national GDP growth by about a tenth. Today, the city and its surrounding region of Tanger-Tétouan is a booming commercial gateway and manufacturing hub, with one of Africa’s largest seaports and automotive factories, producing some 400,000 vehicles per year (with Moroccan-made content at approximately 35-40%, and a target to increase that share to 60% in the next few years). The metropolitan area now boasts multiple free trade zones and industrial parks, while also thriving as a tourist destination. As in our previous city case studies, we wanted to know what (and who) drove this transformation, and how exactly it was achieved.

Does competition create or kill jobs?

Klaus Tilmes's picture

Greater competition is crucial for creating better jobs, although there may be short term tradeoffs.

Job creation on a massive scale is crucial for sustainably ending extreme poverty and building shared prosperity in every economy. And robust and competitive markets are crucial for creating jobs. Yet the question of whether competition boosts or destroys jobs is one that policymakers often shy away from.

It was thus valuable to have that question as a central point of discussion for competition authorities and policymakers from almost 100 countries – from both developed and developing economies – who recently gathered in Paris for the 14th OECD Global Forum on Competition (GFC).

According to World Bank Group estimates the global economy must create 600 million new jobs by the year 2027 – with 90 percent of those jobs being created in the private sector – just to hold employment rates constant, given current demographic trends.
Yet the need goes further than simply the creation of jobs: to promote shared prosperity, one of the urgent priorities – for economies large and small – is the creation of better jobs. This is where competition policy can play a critical role.
Competition helps drive labor toward more productive employment: first, by improving firm-level productivity, and second, by driving the allocation of labor to more productive firms within an industry.
Moreover: Making markets more open to foreign competition drives labor to sectors with higher productivity – or, at least, with higher productivity growth. Making jobs more productive, in turn, generally increases the wages they command.
That’s in addition to cross-country evidence on the impact of competition policy on the growth of Total Factor Productivity and GDP, and the fact that growth tends not to occur without creating jobs. Thus there’s compelling evidence that – far from being a job killer, as skeptics might fear – competition (over the long term) has the potential to create both more jobs and better jobs.

The key question then becomes whether such long-term benefits must be achieved at the expense of short-term negative shocks to employment – especially in sectors of the economy that may experience sudden increases in the level of competition.
Progress toward better jobs is driven partly by the disappearance of low-productivity jobs, as well as the creation of more productive jobs in the short run. Competition encourages that dynamic through firm entry and exit, along with a reduction in “labor hoarding” in firms that have previously enjoyed strong market power.

Making urbanization work for Africa

Ede Ijjasz-Vasquez's picture
With close to half a billion people living in cities in 2015 and 1 billion expected in 2040, Africa will have doubled its urban population in the next 25 years. At this early stage in its urbanization process, Africa has the chance to avoid the mistakes of so many other regions and get it right. See in this video some solid data on the particular characteristics of urbanization in Africa --where manufacturing is declining in rapidly growing cities, and population is sprawling-- and a proposed approach to urban jobs, housing and transport that will make cities work not just in terms of infrastructure, but most importantly to improve the lives of their residents.

Partnerships and opportunities for digital jobs

Saori Imaizumi's picture

Also available in: Español | Français | العربية

What are ‘digital jobs’? If you have access to a computer, Internet and online or mobile payment, can you get a job? The answer is yes, but having basic literacy and computer skills are essential. Knowledge of English is also a big plus.  
Earlier this year, the World Bank and the Rockefeller Foundation organized a “Digital Jobs Africa Forum” to discuss the potential of digital jobs in creating employment in Africa.
Digital Jobs Africa is a seven-year, US$100 million dollar initiative of the Rockefeller Foundation that seeks to impact the lives of one million people in six African countries (South Africa, Kenya, and Nigeria, Ghana, Morocco, and Egypt) by catalyzing ICT-enabled employment and skills training for high-potential African youth who would not otherwise have access to sustainable employment. Launched in 2013, the initiative works in close partnership with stakeholders from the private sector, government, civil society, and the development community.
In partnership with the Digital Jobs Africa Initiative, the World Bank has undertaken a number of activities to increase and enhance opportunities for digital job creation in Africa, including development of an information technology (IT) park in Ghana, capacity building for digitization of public records, and online work/microwork awareness building and training in Nigeria. Recently, the global online outsourcing study was also released to analyze the holistic picture of rapidly growing online outsourcing market (please visit for more information).
These successful collaborations have resulted in a renewed commitment to a strengthened partnership between the Rockefeller Foundation and the World Bank on the digital jobs agenda to develop skills for youth, as well as to create digital jobs across sectors including agriculture, e-commerce, education, and transport through co-financing catalytic and innovative activities.

To meet the jobs challenge, maximize the impact of SMEs

Klaus Tilmes's picture

The urgent challenge of generating jobs and incomes – as the world’s working-age population is poised to soar – will require making the most of all the job-creating energies of the private sector and the strategy-setting skill of the public sector. Today in Ankara, Turkey, the World Bank Group renewed its commitment to strengthen the global economy’s most promising and inclusive source of job creation: small and medium-sized enterprises (SMEs).

At a signing ceremony at the B20 conference of global business leaders – coinciding with the G20 forum of government leaders from the world’s largest economies – the Bank Group joined in a partnership with a new organization promoted by the B20: the World SME Forum (WSF), which is to become the global platform to coordinate practical assistance and policy support for SMEs.

Based in İstanbul, WSF has been founded through a partnership between the Union of Chambers and Commodity Exchanges of Turkey (TOBB), the International Chamber of Commerce (ICC), and ICC’s World Chambers Federation.

World Bank Group President Jim Yong Kim – in Ankara, Turkey, on September 4, 2015 – signs a Memorandum of Understanding to confirm the Bank Group's partnership with the World SME Forum. Also signing the document, along with President Kim, is Rifat Hisarciklioglu, the Chairman of B20 Turkey and the President of TOBB (the Union of Chambers and Commodity Exchanges of Turkey).

SMEs are a vital engine of innovation and entrepreneurship, and the success of the SME sector is central to every country’s prospects for job creation and economic growth. Providing support for SMEs is a fundamental priority for the World Bank Group, as we pursue our global goals of eradicating extreme poverty by the year 2030 and boosting shared prosperity.

SMEs are crucial to every economy: They provide as much as two-thirds of all employment, according to a recent survey of 104 countries – and, in the 85 countries that showed positive net job creation, the smallest-size enterprises accounted for more than half of total net new jobs.

From structural adjustment to structural change: why jobs are the key to development

Dino Merotto's picture
As a professional economist for 25 years, I’m intrigued to see academic thinking towards growth and development swing back to where it was when I was a boy; structural change. As development partners, we need to re-think structural policy priorities to achieve shared prosperity by looking at countries through a jobs lens. The Bank has developed a jobs diagnostic tool kit to help with that process.

Online outsourcing is creating opportunities for job seekers and job creators

Toks Fayomi's picture
Meet  Joan, a 24-year-old online outsourcing entrepreneur in Kenya. Joan started working online when she was 21 and still in university. Today, she has her own business, employs five people and earns approximately US$800 per month after paying her staff.
Joan and many others are profiled in a new study on online outsourcing (OO), entitled “Leveraging the Global Opportunity in Online Outsourcing,” which will be published in late March 2015.

The study, developed by the World Bank in partnership with the Rockefeller Foundation’s Digital Jobs Africa Initiative, is the first publication to summarize and analyze global experiences in OO. It provides a better understanding of OO’s potential impact on human capital and employment, as well as explores possible ways that governments can improve their competitiveness in the OO market. The study includes case studies from Nigeria and Kenya, and an online toolkit to assess country competitiveness.

Moving up the garment industry’s global value chain

Paul Lister's picture

Many African countries are striving to move up the global value chain in the footsteps of countries like China and (more recently) Bangladesh. We asked Paul Lister – Director of Legal Services and Company Secretary, Associated British Foods (ABF) – how ABF and its subsidiaries determine where it will source goods. He says that in the end, efficiency is key.

Textiles in Bongooo Bazaar, Dhaka, Bangladesh. Photo: Flickr @ dnevill (Dan Nevill)

Bangladesh’s inclusive Central Bank

Atiur Rahman's picture

Bangladesh is now the world’s second largest apparel exporter after China. Its garment industry accounts for 80% of its overall exports and around 4 million jobs. Atiur Rahman, Governor of the Central Bank of Bangladesh, tells us that the government sees employment (both formal and informal) as the link between growth and poverty reduction, with an emphasis on inclusive growth policy and financial inclusion.

Workers in the Wool Tex Sweaters Limited in Shewrapara, Dhaka. Photo: Abir Abdullah/ADB

The shape of future jobs

Nigel Twose's picture

Between now and 2030, countries all over the world will have to create about 600 million jobs just to absorb the expanding working age population – while simultaneously coping with a number of daunting challenges. Against this backdrop, the World Economic Forum’s Global Council on the Future of Jobs — in which I participate — is launching a survey of 2,000 firms to learn how they anticipate major trends will shape the labor market in their industry by 2020.

Nukua'lofa, Tonga. Photo: Flickr@WorldBank (Tom Perry)