"We’re the nation that just had six of our scientists and researchers win Nobel Prizes—and every one of them was an immigrant," U.S. President Barack Obama recently said after the Nobel Prize winners were announced.
The Internet was abuzz about it, and how could it not be?
The announcement couldn’t come at a better time. Not only are US Nobel laureates immigrants, but also the country has been identified as one of four where the world’s high-skilled immigrants are increasingly living, according to a new World Bank research article. The other three countries are the United Kingdom, Canada and Australia.
Public-Private Partnerships (PPPs) have been an important option to develop infrastructure and services.
However, challenges for preparing, procuring and monitoring PPP projects in LICs are huge. Challenges include weak institutional capacity, constraints in fiscal space, shallow capital markets, and lack of access to long-term financing.
Despite these challenges, LICs have made important efforts to implement PPP policies, laws and regulations. As a result, these countries closed 377 PPP deals between 1987 and 2013. Even with this considerable effort, LICs still have important infrastructure needs. This is a good start, but hardly enough to tackle the problem.
During the project selection stage, LIC governments have to discuss whether a particular project should be implemented under a PPP scheme or through traditional procurement. There are several reasons why governments decide to implement a PPP: to accelerate public investment programs, maximize the fiscal space or to try to avoid fiscal controls, for example.
At this key decision point, various options can be considered by governments, including a Value for Money (VfM) analysis.
The price of sending international remittances has reached a new record low in the first quarter of 2014. The global average cost of sending money across borders was recorded at 8.36 percent. This figure is used as a reference point for measuring progress toward achieving the so-called “5x5” objective – a goal endorsed by the G8 and G20 countries – to reduce the cost of sending remittances by five percentage points, to 5 percent, by the end of 2014.
Most indexes of international remittance costs – published by the World Bank in the new, ninth issue of the Remittance Prices Worldwide report, which was released on March 31 – indicate good progress in the market for remittances.
The global average cost is significantly lower when weighted by the volume of money that flows in each of the report’s country-to-country pairs. The weighted average cost is now down to 5.91 percent, following a further decline in the last quarter. For the first time, the weighted average has fallen below 6 percent.
Nearly one-third of the remittance-sending countries included in Remittance Prices Worldwide have now achieved a reduction of at least 3 percentage points. Those countries include such major sources of remittances as Australia, Canada, Germany, Italy and Japan. This is also the case for 39 out of 89 of the remittance-receiving countries.
VillageReach is a non-profit social enterprise whose mission is to save lives and improve well-being in developing countries by increasing last-mile access to healthcare and filling gaps in essential supporting infrastructure, especially for remote, underserved rural communities. VillageReach received the Development Marketplace award in 2003 and also participated on the Development Marketplace Investment Platform program with its vaccination program in Mozambique.
This program focuses on improving the performance of the health system in Mozambique through the use of dedicated distribution channels for vaccines and other medical commodities to community health centers. The program’s key objective is to achieve high vaccination rates and low vaccination dropout rates, as well as to increase the overall knowledge and trust in the use of local health services. The key feature of the program is to achieve systemic change in the performance of the Mozambique Ministry of Health by building its capacity and expanding the dedicated logistics system, which would result in VillageReach decreasing its role over time as greater capacity is built.
In his hit My Valentine, former Beatle Sir Paul McCartney sings about a Moroccan vacation where foul weather meant he and his love could not enjoy the vacation and planned sightseeing they had envisioned. Sir Paul was frustrated, until his love said the weather mattered little and they should change their mindset and make the most of it. That advice inspired the opening lyrics of his tune -- What if it rained?/ We didn't care/ She said that someday soon/ The sun was gonna shine/ And she was right/ This love of mine,/ My Valentine -- and taught him a valuable lesson: Complaining about the missing ingredients necessary to achieve any goal is a waste. It is far better to focus on what is already available and make the most of things.
Originally posted on Matthew Kahn's personal blog: http://greeneconomics.blogspot.com/
At the World Bank yesterday, I learned about this impressive project. While there are a lot of papers to choose from at this website, the "big picture" is sketched below in the report's Executive Summary.
The following is a direct quote:
"This report considers migration in the context of environmental change over the next 50 years.
The scope of this report is international: it examines global migration trends, but also internal migration trends particularly within low-income countries, which are often more important in this context.
Remember the famous joke about an economist who believes so much in rational expectation theory that he would not pick up a $100 dollar bill off the sidewalk under the pretense that if it were actually there someone would have already picked it up? A similar excuse may be invoked to justify why low-income countries that are currently facing high underemployment are not organizing themselves to seize the extraordinary bonanza of the 85 million manufacturing jobs that China will have to shed in the coming years because of fast rising wages for unskilled workers.
Economic development is a process of continuous industrial and technological upgrading in which each country, regardless of its level of development, can succeed if it develops industries that are consistent with its comparative advantage, determined by its endowment structure. As I explained in an earlier blog post for China to maintain GDP growth of nearly 10 percent a year in the coming decades, it must keep moving up the value chain and relocate many of its existing labor-intensive manufacturing industries to countries where wage differentials are large enough to ensure competitiveness in global production networks.
Recently, economists began proposing the strategy for industrial development in low-income countries. But there are few explicit recommendations as to what role governments should play in fostering industrialization. Related question is whether we can draw useful lessons from successful experience of industrial development in East Asia for other regions, such as sub-Saharan Africa (SSA).
The paper entitled “A Cluster-Based Industrial Development Policy for Low-Income Countries” (Policy Research Working Paper 5703) proposes an industrial policy consisting of four pillars of recommendations based on roughly 20 case studies of industrial clusters in Asia and sub-Saharan Africa.
It is not surprising that trade policy -- as it relates to economic growth – has not figured prominently in the development agendas of least developed countries (LDCs). This is mostly due to the fact that key issues, such as health, clean water, conflict and war have dominated attention and driven debate and discussion– and rightly so.
But what about trade as an engine of growth to help drive down poverty – to help address broader development goals?
The good news story on trade and the LDCs is often ignored. Bad news stories and editorials (along with blog posts in on-line media) sell newspapers and make for splashy television and video clips on YouTube. This is what dominates the stories and headlines.
The potential for expanding the industrial sectors of African countries is substantial – this was a message I delivered on a recent trip to Italy, Tanzania, Mozambique and Malawi. This can happen through an improved understanding of the mechanics of economic transformation as well as by focusing on how such countries can follow their comparative advantage in natural resources and labor supply.
During my site visits and meetings with the private sector for the African segments of my trip, I became more convinced than ever of the strong untapped potential for private sector-led industrialization. Yet that can only happen when the government plays a facilitating role, such as by overcoming information asymmetries, coordination failures and externalities associated with first-mover actions. In Tanzania, initial experiments with industrial parks look promising, as do agricultural development projects and rural transport initiatives currently under way. In the case of industrial parks, it’s important to have a one-stop shop for registration and other administrative obligations, adequate electricity and water supply, and good transport/logistics links.