This week marks the launch of the new, World-Bank supported Ethiopia Climate Innovation Center (CIC). The center joins a global network of CICs and is designed to support local Ethiopian businesses that are responding to the challenges of climate change by providing mentorship, financing, access to markets, and policy support.
Up north on the lake, every year near our cabin, we see a pair of nesting ducks. We call her Mrs. Merganser as she leads her 8 to 16 ducklings around the lake. There’s a Mr. Merganser too, but truth be told, he seems a bit of a slacker in the childcare department.
The ducks make an annual migration of a few thousand kilometers, splitting their time between the northern lake, southern retreat, and a couple months on the road. The birds are transient.
China’s massive stimulus spending has raised widespread concerns about local government finances. Local governments have ramped up infrastructure spending since late 2008, while they are also under pressure to spend more on health, education, and social security, for which they are in large part responsible. With monetary conditions likely to become tighter this year and land revenues possibly slowing down or even declining, local government finances may become strained.
At the heart of the concerns are local government investment platforms. These are state-owned-enterprise (SOE)-type entities set up to finance infrastructure construction and urban development—sometimes also called Urban Development and Construction Companies. Set up in part to circumvent rules prohibiting local governments from borrowing, their investment activities are mainly financed by land sale revenue and bank financing, often using as collateral land requisitioned from local residents.
Decentralization has been a buzz word in the development world for a while, but disagreements remain about when and how different types of decentralization are successful in improving accountability and service delivery. Although decentralization is often used as a monolithic concept, the term can include political, fiscal, administrative or market decentralization, and can involve var