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Who will add value in Africa? Who will cure? Who will build?

Andreas Blom's picture

 Dasan Bobo/World Bank​From my seat as an Education economist at the World Bank, I go through a number of strategies from countries and sectors in Africa outlining how best to achieve economic growth and development. I am repeatedly struck by a key question: Who will do it? Who will add value to African exports? Who will build? Who will invent? Who will cure? The answer is, of course, that graduates from African universities and training institutions should do it. But the problem is one of numbers and quality—there are simply not enough graduates in science, technology, engineering and math (STEM), and programs are of uneven quality.
 

Openness Is the Key to Effective and Inclusive Development

Robert Hunja's picture
OGP High-Level Event at the UN General Assembly, Sept 24 2014.
​Photo Credit: OGP/Evan Abramson

Today, we face a fundamental question: How can we ensure that development is done as effectively and inclusively as possible? Openness is the answer.
 
Openness captures the very essence of international development in the 21st century.
 
At its core, openness is the idea that citizens and governments can work together to achieve better results for all.
 
Open government - increased disclosure of information and enhanced citizen participation in government decision-making is a powerful way to address the complex governance and development challenges we have faced for so long.

Can “Resource Financed Infrastructure” Fix the Natural Resource Curse?

Håvard Halland's picture
Resource Financed Infrastructure
Source: Getty Images/Sam Edwards.
 

In Africa, estimates indicate that an annual investment of $93 billion is required to address the continent’s basic infrastructure needs – more than double the current level of investment.

The lack of productive investment of resource revenues, with spending of these revenues often heavily tilted towards consumption, is a critical component of the so-called resource curse, the observation that countries rich in natural resources frequently have slow long-term growth. Following oil or mineral discoveries, as the expectation of increased wealth spreads, pressures to spend typically become hard for politicians to resist, public sector salaries go through the roof, wasteful spending increases, corruption may flourish, hidden foreign bank accounts may be established, and the number of unproductive “white elephant” projects grows.

How can resource-rich countries ensure that a large share of oil, gas, and mining revenues are used for productive investment rather than excessive or wasteful consumption?

Powering up Africa’s Renewable Energy Revolution

Makhtar Diop's picture
Also available in: Français | Español | العربية

As African Presidents, Prime Ministers, and business leaders arrive in Washington to attend the first US-Africa Summit, one topic that will be paramount in their discussions with President Obama and his Cabinet is: how governments and families can access affordable electricity across the African continent.

Consider the facts: one in three Africans, that’s 600 million people, has no access to electricity. Neither do some 10 million small and medium-sized enterprises. Those homes and businesses fortunate enough to have power pay three times as much as those in the United States and Europe; furthermore, they routinely endure power outages that cost their countries from one to four percent in lost GDP every year.

Akosombo Dam in Ghana, June 18, 2006. (Photo by Jonathan Ernst)Despite the fact that Africa is blessed with some of the world’s largest hydropower and geothermal resources (10-15 GW of geothermal potential in the Rift Valley alone), bountiful solar and wind resources, as well as significant natural gas reserves, total power generation capacity in Africa is about 80,000 megawatts (MW) (including South Africa), roughly the same as that of Spain or South Korea.

As Africa enters its 20th consecutive year of economic expansion, with the World Bank forecasting that Africa’s GDP growth will remain steady at 4.7 percent in 2014, and strengthening to 5.1 percent in each of 2015 and 2016, the continent needs more electric power. Specifically, Africa needs to add 7,000 MW of generation capacity each year to meet the projected growth in demand, yet it has achieved only 1,000 MW of additional power generation annually.

Over the last week I visited Cameroon and the Democratic Republic of the Congo, two of Africa’s so-called ‘fountain states.’  The resources in these two countries – along with Guinea, Ethiopia, and Uganda – can generate enough hydroelectricity to satisfy the growing demand in Africa. I saw the range of applications for which this power is needed, and I saw clear solutions.

In Eastern Cameroon I visited the construction site for the Lom Pangar hydropower project. Once construction is complete and the reservoir is filled in the next couple of years, this new dam on the Sanaga River will improve the reliability of power supply and lower the cost for up to five million Cameroonians. The Lom Pangar project will also pave the way for developing the full 6,000 MW of hydropower potential of the Sanaga River by regulating the flow of the river.      
 
In the Democratic Republic of Congo, last week, I visited the Inga hydropower site on the mighty Congo River. DRC’s overall hydropower potential is estimated at 100,000 MW, the third largest in the world behind China and Russia, yet only 2.5% of this key resource has been developed. With 40,000 MW of generation potential, Inga is the world’s largest hydropower site. Its proper development can make Inga the African continent’s most cost-effective, renewable source of energy with an estimated generation cost of US$ 0.03 per kilowatt hour with little or no carbon footprint--a significant added virtue.

Learning from your peers: A lesson from Uganda and Senegal

Joseph Oryokot's picture

 Sarah Farhat, World Bank Group
















Despite Africa’s great diversity of cultures and climates, countries on the continent often speak the same language when it comes to tackling common development challenges. Senegal and Uganda recently did just that, teaming up to exchange best practices to boost agricultural productivity and employment on both sides of the continent.

I witnessed this knowledge exchange firsthand as I accompanied a Ugandan delegation led by Hon. Maria Kiwanuka, Uganda’s minister of finance, planning, and economic development, on its visit to Senegal. Their core mission was to seek out innovative ways to boost economic growth and create job opportunities for the country’s burgeoning youth, a challenge faced by Uganda and Senegal alike. As both countries continue to experience an increase in urbanization and population growth, and currently have economies that are predominantly based on agriculture, one common answer to this rising challenge is the enhancement of agricultural productivity and the development of agricultural value chains.

Big vs. small firms: one size does not fit all

Jacques Morisset's picture



Is bigger always better? Economists have long debated what size firms are more likely to drive business expansion and job creation. In industrial countries like the United States, small (young) firms contribute up to two-thirds of all net job creation and account for a predominant share of innovation. (Source: McKinsey, Restarting the US small-business growth engine, November 2012). In developing countries, evidence from Ethiopia, Ghana and Madagascar shows that the vast majority of small operators remain small, and so are unlikely to create many decent jobs over time [Source: World Bank, Youth Employment, 2014]. By contrast, ‘big’ enterprises are seen as the best providers of employment opportunities and new technologies.

The difference in role and performance of small firms in developing and industrial countries reflects to a large extent their owners’ characteristics. In the US, small firm owners are generally more educated and wealthier than the average worker, while the opposite is true in most developing countries. This point was emphasized by E. Duflo and A. Banerjee in their famous book ‘Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty’ (Penguin, 2011). Most business owners in developing countries are considered to be ‘reluctant’ entrepreneurs; essentially unskilled workers that are pushed into entrepreneurship for lack of other feasible options for employment.

This is also very much a reality in Tanzania where small business owners have few skills and limited financial and physical assets. Of the three million non-farm businesses operating in the country, almost 90% of business owners are confined in self-employment. Only 3% of business owners possess post-secondary level education. As a result, their businesses are generally small, informal, unspecialized, young and unproductive. They also tend to be extremely fragile with high exit rates, and operate sporadically during the year. Put simply, most small businesses are not well equipped to expand and become competitive.

Using Knowledge to Fight Poverty in Africa

Kathleen Beegle's picture

Photo Credit: @Gates Foundation. A girl plays with a bicycle tire in the slum of Korogocho, one of the largest slum neighborhoods of Nairobi, Kenya
 
Although sub-Saharan Africa has had sustained economic growth for almost two decades, the incidence of extreme poverty in the region remains staggeringly high. Our best estimate is that in 2010 almost one in every two (49%) Africans lived on less than U$1.25 per day (at 2005 prices).

This is an impressive decrease from 58% in 1999, but at the same time there is a general sense that progress has been too slow. Africa is rising, with GDP growth rates upwards of 6% between 2003 and 2013 (if one excludes richer and less dynamic South Africa) but the poor’s living standards are not rising as fast as GDP.

Putting poverty on the map

Kathleen Beegle's picture

The expansion of household surveys in Africa can now show us the number of poor people in most countries in the region. This data is a powerful tool for understanding the challenges of poverty reduction. Due to the costs and complexity of these surveys, the data usually does not show us estimates of poverty at “local” levels. That is, they provide limited sub-national poverty estimates.
For example, maybe we can measure district or regional poverty in Malawi and Tanzania from the surveys, but what is more challenging is estimating poverty across areas within the districts or regions (known as “traditional authorities” in Malawi and “wards” in Tanzania).
 
To address this shortfall, several years ago a research team from the World Bank developed a technique for combining household surveys with population census data, and poverty maps were born.  Poverty maps can be used to help governments and development partners not only monitor progress, but also plan how resources are allocated. These maps depend on having access to census data that is somewhat close in time to the household survey data.  But what if there is no recent census (they are usually done every 10 years) or the census data cannot be obtained? (I will resist naming and shaming any specific country): we are left with no map.  Can we fill in the knowledge gaps in our maps?

Nollywood star Stella Damasus invites you to join a live discussion on gender based violence

Anne Dronnier's picture


A multi-disciplinary art exhibition on the topic of gender based violence (GBV) is opening today at the World Bank in Washington, DC. The exhibition is entitled “1 in 3,” since an estimated one in three women worldwide will be beaten, coerced into sex or otherwise abused in her lifetime. “1 in 3” includes art from around the world - photographs, paintings, drawings, sculpture; films and videos; posters from advertising campaigns against GBV, and performing art. 

Is Technology Sufficient for Fiscal Transparency & Openness? Lessons from East Asia and North Africa

Tina George Karippacheril's picture

A Warli Tribal Painting by Jivya Soma MasheWe are curating a monthly series on Digital Gov. in developing countries. The series seeks fresh perspectives and insights into the policy, institutional and technical dimensions of technology and public management, in understanding how public services are modernized, organized and delivered to citizens and, in supporting openness and public accountability. In the fourth post of the series, we reflect on Fiscal Transparency and Openness in light of the upcoming Asia-Pacific Regional Open Government Partnership Conference, focusing on developments in major middle income countries in East Asia and North Africa.


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