Labor and Social Protection
“We are here to listen—tell us how we can better assist you. And please, be frank,” said Obiageli Ezekwesili, World Bank Africa Region Vice President.
Ezekwesili asked the ministers from Liberia, Rwanda and the Democratic Republic of Congo (DRC) to discuss capacity development efforts in their countries, and to identify what has and has not worked, and how donors can provide more effective support for human development, infrastructure, and public sector reforms.
Several common themes emerged from the ministers’ interventions, including:
- Donors prioritizing support for primary and secondary education, and not higher education
- Donors pressing a “one size fits all” approach on countries, trying to replicate programs that were successful elsewhere
- The failure by expatriate advisors in civil service posts to transfer their knowledge and skills to local counterparts
- Tension among returning members of the Diaspora and local populations that stayed behind, partly around incentive structures for civil service
- An urgent need to deliver skills-training and create job opportunities for young ex-combatants
Augustine Ngafaun, Minister of Finance for Liberia, outlined the enormity of the challenges facing his country, which has “75 percent of the educational facilities destroyed” combined with a “massive brain drain” as a result of professionals fleeing during Liberia’s recent conflict.
“We have very few doctors, teachers and hardly any engineers,” said Ngafaun, Liberia's Minister of Finance.
He also noted that, despite the importance of the mining sector for Liberia’s growth, there are not even five geologists in the entire country.
Rwanda’s Finance Minister James Musoni noted that even though the reconstruction challenges were daunting, his country has made significant progress since the 1994 genocide. He said it is crucial for the donor community to understand the context in which each country operates, as in some cases the political leadership may not be ready.
Ezekwesili stressed the need to build confidence in all sectors, pointing out that “development solutions work only to the extent that the capacities of the nation-state, the private sector, and civil society are strong.”
“The lack of capacity is magnified by the stress of the post conflict environment,” Ezekwesili said.
Experts on youth and employment from Ghana, Kenya, Mali, and Colombia met on Saturday as the Spring Meetings got underway to discuss the growing problem of youth unemployment in Africa. The high-level panel, chaired by Obiageli Ezekwesili, World Bank vice president for the Africa Region, agreed that there are no easy solutions to the problem.
“Youth in urban areas are looking for jobs alongside thousands of others from the same schools, while rural youth are flooding into the cities looking for work,” said Sanoussi Toure, the Minister of Finance of Mali. “This is a tragedy. Our policies favor investment in education and training, but this investment has not led to job creation.”
Key points that came out of the meeting included:
- There are no easy solutions to the problem of youth unemployment.
- Youth employment has to be part of the growth strategy of every African country.
- Employment policies need to favor investment in education and training.
The panel also included Mauricio Cárdenas, former Colombian Minister of Transport and Economic Planning. Cárdenas talked about the outcomes of two youth programs Colombia put in place during his country's economic crisis in the late 1990s, when external shocks drove unemployment from 10 to 20 percent, and youth unemployment to 30 percent.
It is clear that youth unemployment in Africa needs to be addressed from many entry points, Ezekwesili said in her concluding remarks.
“The profile of unemployed youth has to enter the way we think, just as gender has. Youth need to be effectively targeted in everything we do, so that they will have a stake in the future,” Ezekwesili said.
Yesterday, the IMF and the World Bank released the 2009 Global Monitoring Report, saying that the global financial crisis is imperiling attainment of the 2015 Millennium Development Goals (MDGs) and creating an emergency for development.
Justin Lin, World Bank Chief Economist, spoke about the crisis at the launch of the report:
"Worldwide, we have an enormous loss of wealth and financial stability. Millions more people will lose their jobs in 2009, and urgent funding must be provided for social safety nets, infrastructure, and small businesses in poor countries, for a sustainable recovery."
For more information:
This past Wednesday, leading development banks joined efforts to provide as much as US$90 billion during the next two years in a joint effort to spur economic growth in the Latin America and Caribbean region.
The Inter-American Development Bank and the Inter-American Investment Corporation, the World Bank Group (IBRD, IFC and MIGA), Corporacion Andina de Fomento, the Caribbean Development Bank and the Central American Bank for Economic Integration are all working together to explore new opportunities to protect the economic and social gains achieved in the region during the last five years.
World Bank President Robert Zoellick spoke about the importance of this joint effort:
"Latin America and the Caribbean have achieved substantial economic and social progress over the last five years and we must ensure that this is not lost because of the external shock of the global crisis. We need to avoid a social and human crisis."
For more information:
- Press Release: Development Banks Join Efforts to Provide US$90 Billion For Latin America & The Caribbean
- Upcoming Event: Latin America and the Global Crisis, Towards a Rapid Regional Recovery
- VOICES Video Interview: Augusto de la Torre, Chief Economist for Latin America and the Caribbean at the World Bank
You can listen to the interview using the player below:
In light of the global economic crisis, the World Bank announced today that its investments in safety nets and other social protection programs in health and education are projected to triple to $12 billion over the next two years.
Additionally, the Bank also increased its fast track facility for the food price crisis to US$2 billion from US$1.2 billion. As World Bank Group Managing Director Ngozi Okonjo-Iweala explains:
"The continuing risky economic environment, combined with continuing volatility for food prices, means for poor people the food crisis is far from over. Many poor countries have not benefitted from some moderation of food price spikes in global markets. The decision to expand the facility will help ensure fast track measures are in place for continued rapid response to help countries."
More information about today's announcements:
With remittances expected to fall in 2009 as the financial crisis unfolds, the primary mechanism through which origin countries recoup the efficiency increases achieved by skilled migration will dissipate. But is there another mechanism, less direct but with long-term implications, through which migrants can benefit their home country.
The notion of the brain drain from developing to developed countries is not new. What is relatively new in the ’new brain drain’ or ’brain gain’ literature is its positive prognosis regarding the economic implications of labor market liberalization. Yes there is a brain drain and on the whole it is bad for development. But the migration of skilled workers need not be a zero sum game. That is, the gain of the host country need not inevitably translate to the loss of the sending country.
This is the first year that the H-1B visa cap has not been reached during the first 5 days of filing applications. The current cap is set at 65,000, with an additional 20,000 for holders of advanced degrees. It seems that the number of petitions for the H-1B visa this year will be far less than last year. The U.S.
A few days ago, our country director David Dollar blogged about the two-sided picture we see when we look at China's economic growth. The economy saw very weak export demand, which partly carried over into weak investment in manufacturing and other "market-based" sectors. Continued growth in other parts of the domestic economy was supported by policy stimulus.
China has weathered the crisis better than many other countries because it does not rely on external financing, its banks have been largely unscathed by the international financial turmoil, and it has the fiscal and macroeconomic space to implement forceful stimulus measures. China’s government has made use of this policy space by pursuing pretty forceful fiscal and monetary stimulus. From early November last year onwards, the government's 10-point plan ("RMB 4 trillion package") is being implemented. This plan emphasizes infrastructure and other investment, financed in part by government budget spending, and in part by bank lending. And the government has taken some additional, more consumption-oriented measures.