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The jobs challenge is bigger than ever in the poorest countries

Akihiko Nishio's picture
Researchers at the CSIR-Crops Research Institute (CSIR-CRI) in Ghana. © Dasan Bobo/World Bank 
Researchers at the CSIR-Crops Research Institute (CSIR-CRI) in Ghana. © Dasan Bobo/World Bank 

Over the next decade, close to 600 million people will be looking for jobs, mostly in the world’s poorest countries. The South Asia region alone will need to create more than 13 million jobs every year to keep pace with its demographics. In Sub-Saharan Africa, despite a smaller population, the challenge will be even greater—15 million jobs will need to be created each year.
 
Adding complexity, the jobs challenge is also a concern for today. Many people in poorer countries who do work are stuck in informal, low-paying, less productive jobs, which are often outside the formal and taxed economy. And as the trends of urbanization continue, scores of internal migrants are searching for work, but can’t find quality, waged jobs, nor do they have the skills demanded by the markets. As a result, too many people are left on the economic sidelines and are limited in what they can contribute to their countries’ growth.  

Blended finance unlocks the keys to affordable housing across west Africa

Martin Spicer's picture
Houses under construction. © John Hogg/World Bank
Houses under construction. © John Hogg/World Bank

Affordable housing is a major challenge across West Africa, where fewer than 7 percent of households can afford to buy their own home. The situation is particularly acute in the countries of the West African Economic and Monetary Union (WAEMU) -- Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo – where demand for decent housing far outstrips supply.

But a new financing tool developed by the World Bank Group, is helping thousands of families across the WAEMU access private housing finance and finally achieve their dreams of owning their own home.

The tool is the $2.5 billion IDA18 IFC-MIGA Private Sector Window (IDA PSW), launched in July 2017 to help catalyze private sector investments and create jobs in the lowest income countries eligible for financing from the World Bank’s International Development Association.

Helping East Africa attract investment in priority sectors

Axel van Trotsenburg's picture
© Sarah Farahat/World Bank
© Sarah Farhat/World Bank

This month’s Development Finance Forum is bringing together public and private sector leaders to talk about how we can drive more private finance in three sectors that are key to development in East Africa: agribusiness, housing finance and tourism. The region’s leaders see these as critical to sustained growth, job creation and long-term economic transformation for their countries.

The World Bank Group sponsors the Forum annually to connect key stakeholders who, by working together, can change the investment landscape in the least developed countries. We aim to pinpoint what each major player can contribute, as well as explore promising ideas, initiatives and partnerships that need an extra impetus to succeed. It’s an exciting time to be an investment partner in the region with its extremely dynamic economies and a lot of innovation taking place.

Maximizing finance for safe and resilient roads

Daniel Pulido's picture


Around the world, roads remain the dominant mode of transport and are among the most heavily-used types of infrastructure, accounting for about 80% of the distance travelled for individuals and 50% for goods.

Despite this intensive use, the funding available for road maintenance has been inadequate, leaving roads in many countries unsafe and unfit for purpose.

To make matters worse, roads are also very vulnerable to climate and disaster risk: when El Niño hit Peru in 2017, the related flooding damaged about 18% of the Peruvian road network in just one month.

It is no surprise then that roads are the sector that will require the most financing. In fact, the G20 estimates that roads account for more than half of the $15 trillion investment gap in infrastructure through 2040.

Farewell 2017; Hello to More and Better Infrastructure in 2018

Jordan Z. Schwartz's picture


Photo: auphoto / Shutterstock.com

As Washington, D.C.’s infrastructure braces for its first winter freeze and 2017 draws to a close, this feels like the right moment for a recap on what the year has brought us in terms of closing the infrastructure gap across emerging markets and developing economies; policy directions within and outside of the World Bank Group; new instruments, tools, and resources; and—the proof in the pudding—actual investment levels.

There may not be one blog that can capture all of those themes in detail, but here is a brief overview of what 2017 has meant and what is on the docket for 2018 and beyond.

The APMG PPP Certification Program: Q&A with Paul Barbour

Paul Barbour's picture

The APMG PPP Certification Program enables participants to take their skills to the next level, and the Certified PPP Professional (CP3P) credential is a means to officially convey that expertise and ability. Whether you’re thinking about signing up, or already enrolled, in this series we share some insight from practitioners who have already passed the test. This week, we caught up with Paul Barbour, Senior Risk Management Officer at the Multilateral Investment Guarantee Agency (MIGA). Read his answers below.

Success factors in Turkey’s Elaziğ healthcare PPP

Matthew Jordan-Tank's picture

Editor's Note: Join us April 22nd at 10AM ET for the 2017 Global Infrastructure Forum when the Multilateral Development Banks (MDBs), the United Nations, the G-20, and development partners from around the world meet to discuss opportunities to harness public and private resources to improve infrastructure worldwide, and to ensure that investments are environmentally, social and economically sustainable. Check out the event site to view the livestream on April 22.



Imagine the difficulty of designing, financing, building and operating a €360 million, 1,000-bed hospital campus that serves a region of 1.6 million people? This is exactly what the government of Turkey is doing in Elaziğ, a city of 350,000 in eastern Anatolia. The facility will serve and accommodate about 20,000 patients and their relatives per day with a broad range of services including women and children’s health, psychiatric services, and a dental clinic.
 
A project of this size is bound to be challenging and complex. But the approach taken by the Turkish Government has been a success—to involve a private-sector partner through a public-private partnership (PPP) with support from multilateral development banks. How did they do it?

Wanted: someone to energize infrastructure projects across the Caribbean

Paul da Rita's picture


 

On a recent trip to the Caribbean, I was in a meeting at the Ministry of Finance of one of the region’s largest economies. The topic under discussion was all too familiar: the difficulty of attracting overseas investment into the country’s public infrastructure projects.

To enliven things, I began thinking aloud about an idea I’d been musing on for a while and was asked to outline my idea. Let me first set the context.

Winning the Game of Mining Taxation

Paul Barbour's picture

The last few years have brought an uptick in the number of mining investments that have been the subject of disputes between investors and governments. This trend is of considerable concern to the players in the sector across the globe.
 
Yet, there is a wealth of wisdom to be—pardon the pun—mined from the literature over the past few decades in an attempt to distill what the main risk factors are in agreements that govern investments in the sector, with specific focus on taxation regimes. 

Number of Expropriatory Acts by Sector – three-year rolling averages
 
Source: Chris Hajzler (2010), “Expropriation of Foreign Direct Investments: Sectoral Patterns from 1993 to 2006,” University of Otago in MIGA,World Investment and Political Risk 2011

Are Rates of Return in Places that are Fragile and Affected by Conflict Really Higher?

Paul Barbour's picture

Supporting populations in fragile and conflict-affected situations (FCS) is a key priority for the World Bank Group.  The Group’s President, Jim Yong Kim, has repeatedly stressed the importance of finding ways to bring sustainable peace and development to these difficult contexts. According to the World Development Report 2011: Conflict, Security, and Development, more than 1.5 billion people in today’s world live in FCS, or in countries with high levels of criminal violence.

Apart from the very human cost of fragility, it colors foreign investors’ perceptions of risk, especially political risk, affecting private sector activity. This begets a vicious cycle, where economies worsen, increasing fragility. The importance of political risk, including political violence, in the perceptions of investors is well documented, including in the annual MIGA-EIU surveys presented in MIGA’s World Investment and Political Risk report. In particular, MIGA’s 2011 report focused specifically on investing into FCS, and the survey results demonstrate that political violence remains a very serious factor inhibiting investment.

Aside from capital, foreign direct investment (FDI) can bring essential knowledge and technology across borders. These benefits are often what make FDI so sought-after by policy makers. But investors have to consider the return on their investment relative to the risks they are taking, especially political risks such as expropriation, currency convertibility and transfer restrictions, breach of contract by the sovereign, and war and civil disturbance.
 


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