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Law and Regulation

Four ways regional bodies can help deliver justice commitments made through the SDGs

Temitayo O. Peters's picture

The Sustainable Development Goals (SDGs) differ from the Millennium Development Goals (MDGs) in many ways. Unlike the MDGs, the SDGs universally apply to all countries and they are holistic and integrated. Moreover, their delivery is to be achieved by governments, civil society, and the private sector all working together to achieve their success.
 
The SDGs also recognize the central role of justice in achieving development, with Goal 16 specifically guaranteeing “equal access to justice for all.” Governments, in partnership with other stakeholders, must make necessary national reforms to provide access to justice to the billions who currently live outside of the protection of the law. They must commit to financing the implementation of these reforms and be held accountable for their success.
 
Regional and sub regional bodies are uniquely placed to assist governments with implementing and monitoring justice commitments made through the SDGs. Learnings from the MDGs show that countries that integrated the MDGs into existing regional strategies were far more successful in meeting the MDGs’ objectives than countries that did not have the support of an existing regional strategy.

Harnessing Stitches for Riches in South Asia

Gladys Lopez-Acevedo's picture
Stitches to Riches? The Potential of Apparel Manufacturing in South Asia

In the coming years and decades, China is expected to slowly relinquish its lead position in the global apparel market, opening the door to other competitors. This is a huge opportunity for South Asia to create at least 1.5 million jobs that are “good for development” – of which half a million would be for women – according to a new World Bank report Stitches to Riches?  But those numbers could be much higher if the region moves quickly to tackle existing impediments and foster growth in apparel, which will also yield dividends for other light manufacturers (like footwear and toys).
 
How South Asia fits in the global apparel market
Currently, China holds by far the largest share of global apparel trade – at 41 percent, up from 25 percent in 2000, with about 10 million workers. But as China continues to develop, it is likely to move up the global value chain into higher-value goods (like electronics, and out of apparel) or switch production among sectors in response to rising wages. A 2013 survey of leading global buyers in the United States and European Union (EU) found that 72 percent of respondents planned to decrease their share of sourcing from China over the next five years (2012-2016).
 
Already, the top four apparel producers in South Asia – Bangladesh, India, Pakistan, and Sri Lanka – have made big investments in world apparel trade, now accounting for 12 percent of global apparel exports (see figure). In terms of apparel export value, Bangladesh leads the pack (at $22.8 billion), followed by India ($12.5 billion), Sri Lanka ($4.4 billion), and Pakistan ($4.2 billion).
 
China dominates global apparel trade
(Country share of global apparel exports)


Source: Stitches to Riches?
 
Why apparel jobs are “good for development”
When we think of jobs that are “good for development,” the main yardstick is whether they will help translate growth into long-lasting poverty reduction and broad-based economic opportunities. Apparel fits the bill for numerous reasons. 

The false debate: choosing between promoting FDI and domestic investment

Cecile Fruman's picture

Should we focus our efforts on foreign investment or domestic investment?” Policymakers in developing economies often ask this question when the World Bank Group advises them on how to improve their countries’ investment climate or investment promotion efforts. Our answer is: They do not need to choose one over the other. In order to grow and diversify, an economy needs both domestic investment and foreign direct investment (FDI).  The two forms of private investments can be strong complements.
 
Recognizing the Potential Benefits of FDI
 
The economic benefits of FDI were identified a long time ago. A Harvard Business School paper published 30 years ago summarized the benefits of FDI based on an extensive review of economic literature (Wint, 1986). In short: Benefits traditionally attributed to FDI include job creation, transfer of technology and know-how (including modern managerial and business practices), access to international markets, and access to international financing.

Granted, some of these benefits also occur thanks to domestic investment. For instance, domestic investments create jobs in a host economy – usually many more than FDI. However: What FDI does well is enhance or maximize some of the benefits already generated by domestic investments in a developing economy.
 
To stay with the example of job creation: Foreign firms might not create as many jobs as the domestic private sector, but they often create better-paid jobs that require higher skills. That helps elevate the skills level in host economies. The same can be said for other FDI benefits. For instance, more advanced technologies and managerial or marketing practices can be introduced in a developing economy through foreign investment, and at a much faster rate than would be the case if only domestic investment were allowed. Moreover, through partnerships with foreign investors who have existing distribution channels and commercial arrangements around the world, developing countries’ firms can benefit from increased market access.



In China, millions of rural residents each year migrate to cities to seek work. As they find jobs in modernizing industries, they gain the skills they need to earn higher incomes. In this photo, an employe in Chongqing is learning higher-level computer skills. Photo: Li Wenyong / The World Bank
 

Imminent! Transformation of the World Bank’s Procurement Framework

Robert Hunja's picture
World Bank. Photo © Dominic Chavez/World Bank

In keeping with recent global trends in the procurement arena, the World Bank is transforming and modernizing its procurement framework. 

In the private sector, companies have long viewed maximizing of supply chains as key to healthier bottom lines.  In the public sector, many governments have been moving from overly rule-based procurement systems to systems that focus on performance and achievement of development goals. 

Gender-based violence, power and norms

Annamaria Milazzo's picture

Many laws prohibiting a range of gender violence have been ineffective in reducing the prevalence of harmful practices.  This is mainly due to the influential role that deeply rooted social norms—one of multiple and sometimes competing normative orders people adhere to—play in determining behavior and outcomes.

Gender-based violence (GBV) reflects power inequalities between women and men. Women and girls are more commonly the victims of GBV—a manifestation of power imbalance tilted in favor of men that characterizes many, mostly patriarchal, cultures around the world.  Collectively shared norms about women’s subordinate role in society and violence against them can also perpetuate the power imbalance. In the upcoming World Development Report 2017 we discuss how norms can reinforce existing power inequalities in society and how change can happen.

'Winning the Tax Wars': Mobilizing Public Revenue, Preventing Tax Evasion

Christopher Colford's picture
"Winning The Tax Wars" conference


"When something such as the Panama Papers [disclosures on global tax avoidance] happens, we seem to be surprised. We should not be."
— Vito Tanzi, former leader of international tax policy at the International Monetary Fund; author of "Taxation in an Integrating World" (1995)

"Taxes are what we pay for civilized society," said the famed U.S. Supreme Court Justice Oliver Wendell Holmes Jr. So what does it say about society when it tolerates a skewed tax system that applauds tax avoidance, accommodates tax evasion, mocks the compliance of honest taxpayers and drags its feet on tax cooperation?

Those are some of the philosophical (and pointedly political) questions that are being debated this week at the World Bank, at a conference that has gathered some of the world's foremost authorities on international tax policy along with international advocates of fair and effective taxation.

If you can't make it in-person to the Bank's Preston Auditorium this week, many of the conference sessions are being livestreamed and the video will be archived at live.worldbank.org/winning-the-tax-wars

The livestreamed sessions include a pivotal speech by a determined tax-policy watchdog, former Sen. Carl Levin (D-Michigan) — the former chairman of the U.S. Senate's Permanent Subcommittee on Investigations — whose address on "Reducing Secrecy and Improving Tax Transparency" will be one of the highlights of the forum.

Coming just a week after a global conference in London on tax havens, tax shelters and abusive tax-dodging — a conference that highlighted some wealthy nations' lackadaisical approach to enforcing tax fairness —  this week's Bank conference, "Winning the Tax Wars: Protecting Developing Countries from Global Tax Base Erosion" will propel the fair-taxation momentum generated by the recent Panama Papers disclosures. That leaked data exposed the rampant financial engineering (by high-net-worth individuals and multinational corporations) to avoid or evade taxes.

Empowering farming communities to manage biodiversity in Nepal

M. Ann Tutwiler's picture
 Also available in Spanish
Surya and Saraswati Adhikari on their biodiverse farm, Nepal.
Photo credit: Bioversity International/J. Zucker
The Himalayan mountain village of Begnas sits in a valley rich in agricultural biodiversity. Altitudes range from 600 to 1,400 metres above sea level, with the landscape home to a combination of wetlands, forests, rice terraces and grazing areas. There are two freshwater lakes, Lake Rupa and Lake Begnas, which provide irrigation, important habitats for wildlife and support small-scale fish-farming activities.


I recently visited one of Bioversity International’s project sites in Begnas, where I met farming couple, Surya and Saraswati Adhikari. They proudly showed me around their biodiverse farm, pointing out some of the 150 plant species they grow and explaining that each one has a specific use. They showed me the vegetables, rice, gourds and legumes they grow to eat and sell; the trees that provide fruits, fodder and fuel, and the many herbs for medicinal and cultural purposes.

How can the World Bank support LGBTI inclusion?

Ede Ijjasz-Vasquez's picture
Despite recent advances, people who identify as Lesbian, Gay, Bisexual, Transgender, or Intersex (LGBTI) continue to face widespread exclusion.
 
Stigmatization and discrimination often have a direct impact on the lives of LGBTI people, but also affect economies and societies at large: when entire groups are left behind - including due to sexual orientation or gender identity - everyone loses out on their skills and productivity.
 
On this International Day Against Homophobia and Transphobia (IDAHOT), Ede Ijjasz and Maninder Gill detail some of the actions taken by the World Bank to make sure LGBTI people can be fully integrated into global development.

Disruptive innovations and new business models: The role of competition policy advocacy

Anabel Gonzalez's picture

Despite the persistent low-growth environment, the benefits of the digital era are within our grasp to help reignite the growth engine.

Digital trade is the fastest-growing component of trade, and 4.4 billion people globally are yet to come online. In the first quarter of 2015 and in major U.S. cities, an average of 46 percent of all total paid car rides were through Uber. In Kenya, the digital payment system creates additional income for more than 80,000 small business owners. The Chinese e-commerce sector has created 10 million jobs. The Internet of Things, self-driving cars and 3-D printing have now arrived as part of the so-called Fourth Industrial Revolution.
 
These benefits will materialize faster if competitive dynamics allow and drive innovation. Disruptive innovation has a great potential to shake up markets, increase productivity and bring benefits to consumers. And yet, if there are government-imposed rules that close markets and unjustifiably protect incumbents from such competing new solutions, these benefits do not materialize. Cities around the world have blocked Uber from offering services. The debate on President Obama’s Executive Order to boost competition has centered around a pending decision by the communications regulator on whether to open the market for TV cable set-top boxes to allow for competition.
 
Conscious of such challenges, forward-looking competition authorities around the world are advocating several measures that will allow consumers and businesses to benefit from disruptive innovations and new business models. A new World Bank Group publication on competition advocacy tools highlights examples of successful initiatives to promote pro-competitive regulatory reform in markets subject to disruptive innovations.

The essentials of a manufacturing ecosystem

Aref Adamali's picture

Value addition through manufacturing has been a major focus of economic policymakers across the world, and at times with remarkable success, most famously in East Asia. Initial ‘Asian miracles’ in places like South Korea have since been eclipsed by the meteoric rise of manufacturing in China, which has grown its exports in manufactures by 18 percent a year over the past 10 years, compared to a global average of 7 percent (ITC Trade Map data).

'Flying geese'
 
Most countries generally seemed to follow a basic pattern, initially establishing manufacturing credentials in light manufacturing, such as in textile and apparel, but then in time moving on from such products to higher-value-added and more complex products. As they moved on and up, they opened space for other countries to move into the initial entry products, following the so-called ‘flying geese’ model of division of labor.





There have been noticeable absences though, with not all regions having moved into manufacturing. This is partially the case with Central and South America, but most strikingly with Sub-Saharan Africa.  
 
What can be done to support countries in their quest to deepen their manufacturing sectors, and extract the jobs and technological development that this can offer? How can they develop the kinds of deep and comprehensive manufacturing ecosystems that have enabled China to maintain investment despite fast-rising labor costs?


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