The World Bank’s Public-Private Partnership Group and Public-Private Infrastructure Advisory Facility report that total private participation in infrastructure (PPI) fell in the transportation sector in emerging markets by 39 percent to $33.2 billion in 2013, compared with 2012 levels.
In part, this reflects a broader trend – overall, PPI in all infrastructure sectors fell by 24 percent. The biggest drop was in South Asia, which saw PPI in transport fall from just over $20 billion in 2012 to approximately $3 billion in 2013, mostly because of significant decreases in India. Two other regions – Latin America & the Caribbean (LAC) and Eastern Europe and Central Asia (ECA) – also saw decreases. PPI in transport increased in East Asia and the Pacific (EAP) and Africa, but not by enough to offset decreases elsewhere.
2013 Transport PPIs by region
This is not good news for the world’s poor. Transportation is a critical component of development and growth, enabling people to access schools, hospitals and markets. It facilitates labor mobility and ensures that raw materials and finished goods get to customers. In rural areas, transportation systems provide an economic and social connection with the rest of the country. Within cities, good urban transportation is often the only form of transportation available to the poor. It also improves the flow of goods and services, reduces greenhouse gas emissions, and improves the overall quality of life.
Public private partnership
ICT story, but it’s only partly about the technology itself.
The real plot twist lies in why reform took off so quickly. Simply put, the incumbents did not see mobile services as threatening. Telecom companies thought of it as a fancy, add-on service that would be useful for rich people but unthreatening to the standard business model. However, the new technology was able to fill gaps in countries where there was no service at all, and it was able to make very rapid inroads. Elsewhere, people would have gone through a more traditional rollout of fixed network and then mobile; in developing countries, mobile became the main service because incumbent service was so poor. Mobile moved in because the incumbents had not done their job.
This shows that the most important element of progress in ICT is the creation of an environment where competition can flourish. Public-private partnerships (PPPs) are key players in this chapter of the ICT narrative. We see this in articles and interviews throughout Handshake, which examines PPPs in broadband and mobile/telecom (which together comprise our definition of ICT) and the services this infrastructure makes possible. In other words, we’re looking at PPPs whose infrastructure creates connections and whose services deliver connectivity.
The World Bank Group is searching internally and globally for 18 experienced and driven professionals to help achieve two ambitious goals: reducing the number of people living on less than $1.25 a day to 3% by 2030 and promoting shared prosperity by fostering the income growth of the bottom 40%. These leaders will be crucial to our plan to improve the way we work, so we can deploy the best skills and expertise to our clients everywhere, to help tackle the most difficult development challenges around the world.
Last month, the Bank Group’s member countries endorsed our new strategy which for the first time leverages the combined strength of the WBG institutions and their unique ability to partner with the public and private sectors to deliver development solutions backed by finance, world class knowledge and convening services.
Instrumental to the success of our strategy is the establishment of Global Practices and Cross-Cutting Solution Areas, which will bring all technical staff together, making it possible for us to expand our knowledge and better connect global and local expertise for transformational impact. Our ultimate goal is to deploy the best skills and expertise to our clients at the right time, and become the leading partner for complex development solutions.
We are accepting applications for the Global Practice senior directors who will lead these pools of specialists in the following areas: Agriculture; Education; Energy and Extractives; Environment and Natural Resources; Finance and Markets; Governance; Health, Nutrition, and Population; Macroeconomics and Fiscal Management; Poverty; Social Protection and Labor; Trade and Competitiveness; Transport and Information Technology; Urban, Rural, and Social Development; and Water.
- Public private partnership
- fiscal management
- Rural Development
- disaster risk management
- health nutrition and population
- Natural Resources Management
- global practices
- Urban Development
- Social Development
- Public Sector and Governance
- Labor and Social Protection
- Information and Communication Technologies
- Financial Sector
- Agriculture and Rural Development
- Macroeconomists for the Poor
Public-private partnerships can help rebuild post-conflict countries for future generations. (Credit: EU Humanitarian Aid, Flickr Creative Commons)
According to the numbers, the prospects for post-conflict countries are dim. Half of the world’s poor live in conflict-affected countries, a percentage expected to climb over 80 by 2025. They can also look forward to lower economic growth rates—a reduction of up to three percent for every year of conflict. And sustained peace is hardly a sure thing—a United Nations-World Bank report famously says that post-conflict countries have a 50 percent chance slipping back into war within 10 years. With stats like these, it’s tempting to write off the future of any country that’s had a shooting war in recent years.
When the words “private sector” and “education” come together, they conjure up the widening chasm between the rich and poor: elite education in private schools. An article in The New York Times, for example, describes a growing education gap as contributing to a “kind of cultural divide” in the United States. A smart kid growing up without access to good education, the argument goes, will be limited for life, regardless of how bright or motivated he or she is.
As a boy growing up in Africa, I always assumed that every country had its own airline. To me, a national airline was just another way a country defined itself, along with its flag, national anthem, and currency. Ghana Airways, which my family often flew (we lived in Kumasi), was a perfect example, with the red, gold and green colors of its national flag painted on every plane. They looked proud and elegant, a perfect symbol of statehood.
Available in Bahasa
The new airport in Banda Aceh was as magnificent as the Taj Mahal—bright, with endless marble floors and beautiful domes. You can almost imagine a reflecting pool, maybe a garden…OK, I might be getting a little carried away. But if you had ever travelled through the old airport—something like a Greyhound bus station in a rust-belt city with a runway attached—you’d understand my excitement.
That was more than four years ago. Since then, the entire city has transformed. Just take the roads. I used to bike all over the city, so I know from first-hand experience that many of the roads were in bad shape, with huge potholes and puddles as big as lakes. But now? You might think you were driving in Germany. Every road is perfectly paved, even the narrow, single-lane ones. When it rains, the water just drains away.
India is swimming in grain these days, thanks to the Green Revolution, bumper crops and food security policies that encourage farmers to grow more. But unfortunately, India’s ability to store and manage its surplus grain hasn’t kept pace with production. The Wall Street Journal reports that state-run warehouses have a capacity of 63 million metric tons, while grain stocks are expected to be 75 million. To make things worse, many existing storage facilities are low-quality structures that aren’t up to the job. This means millions of tons of grain could be lost through exposure, deterioration and pests—bad news in a country of 1.2 billion with widespread hunger and an estimated poverty rate of 32 percent.
I pay through the nose for health insurance for my family, and I’m not happy about it. As a U.S. citizen, I don’t have the luxury of government-backed healthcare. Since I’m technically self-employed, I have to pay the full premium myself. Want some figures? It costs me $830 a month for a family of four, with a high deductible. Besides being expensive, it takes a huge effort to deal with insurance issues, and I find that my provider is expert at finding reasons not to reimburse me for medical expenses. This is chewing a gaping hole in my budget. The only way I’ll ever get value for my money is if I’m hit by a bus.
I could tell something wasn’t quite right with the electrician. He was standing stiffly, poking at the wires in the circuit breaker panel, his face pale, his breathing labored. My wife offered him a cup of tea and asked if he was OK.
“I’m fine,” he said. “I just had a little surgery yesterday.” He kept working until he fixed the wiring; only then did he accept the tea. Then he told us his story.