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​Quenching the Thirst for Innovation: Are subsidies just a drop in the sea?

Mariana Dahan's picture
The World Bank has identified 34 countries that qualify as Low-Income Countries (LICs) for 2015. LICs have a per capita income less than US$1,045 per year, while the world average is US$14,307. These countries face important infrastructure gaps that need to be addressed in order to support economic growth and reduce extreme poverty.
 
Cover of the "Value for
Money" report

Design: Sara Tejada

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.

Confessions of a mobile phone skeptic in the Pacific

Laura Keenan's picture


I must admit to being notoriously bad with a mobile phone. I forget to take it with me, leave it in parks and cafés and have never migrated to a smart phone – a simple old Nokia handset is my trusty aide. And on my part this has probably contributed to some skepticism about the discussion of development and mobile phones – which can sometimes seem a little evangelical.

Mauritania Ramps up Broadband Internet by Stimulating Private Investment

Michel Rogy's picture


 

 In most cases, achieving real development outcomes on the ground is very complicated. But in the case of protecting people from malaria, it is simple. The disease is easily preventable and treatable.

On the prevention side, we know that insecticide treated nets work. So, everybody in countries with high malaria prevalence should have one. 200 million mosquito nets have been already delivered across sub-Saharan Africa.

This is protecting half of the world’s population at risk. 100 million more are being produced and delivered. But we still need 50 million more nets to ensure that people in danger are protected. That's why the World Bank today closed half that gap by providing funding for an additional 25 million nets.

Can you help me now?

Siddhartha Raja's picture

The cows were judging me. The unforgiving Indian summer sun was beating down on the crop field where I stood, and though I desperately wanted to listen the soft-spoken villager who was explaining the trials and accomplishments of his agriculturally centered village, my attention was pulled to the cattle several meters away. Perhaps I was dehydrated, perhaps a little woozy, but I am not proud to say that I could have sworn those grazing beasts were eyeing me, watching me wither under the intense gaze of the mid-afternoon sun. “Weakling,” They seemed to say.

And perhaps I was.

From my brief time spent in this rural, South Indian village, I had seen people deal with far more than the uncomfortable heat. These villagers like many throughout the rural areas of South Asia, worked long and tedious hours in their fields. Heat was not simply a discomfort, but could mean less water, less grass to feed the cattle, fewer crops, and, as a result, the inability to sustain spending on education, healthcare, and sanitation.

Baley!*

Siddhartha Raja's picture

With Maria Blair, Associate Vice President of the Rockefeller Foundation

The next urban crisis: poverty and climate change
Photo: © Jonas Bendiksen,
courtesy of the Rockefeller Foundation

We read Nicholas Stern’s blog post, “Low-Carbon Growth: The Only Sustainable Way to Overcome World Poverty,”  with appreciation and enthusiasm.  It is an insightful and important essay, illuminating the bedrock recognition on which effective 21st century development efforts must build: global climate change and poverty are inextricably interconnected.  The best way to break one is to bend the other.