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Private Sector Development

Warm Welcome From Bank and DM2009 Sponsors

Edith Wilson's picture

The banner that's been unfurled across the facade of the World Bank's Main Complex in Washington, D.C., where DM2009 will be held Nov. 10-13, tells the story.  Are you registered?

From Kathy Sierra, Vice President of the World Bank’s Sustainable Development Network, and Sanjay Pradhan, Vice President of the World Bank Institute, comes this welcome to DM2009 finalists:

Development Marketplace 2009 couldn't have a more timely or significanSanjay Pradhant theme: “100 Ideas to Save the Planet and its people from the effects of a changing climate.” 


Managing risks from climate change will require not only one hundred but thousands of ideas from communities all over the world. Identifying the best of those ideas and reducing the time it takes to incubate, develop, and take them to scale will mean the difference between life and death to those people who live in the most vulnerable areas.

South Asia Advances on Visual Tool Comparing Development over Time

Joe Qian's picture

The World Bank released its Data Visualizer tool last week, which compares 209 countries through the lens of 49 development indicators utilizing data ranging from 1960 to 2007. Using three dimensional bubbles whose sizes are proportional to populations and are color coded to the different regions (purple represents South Asia), they move horizontally or vertically based on their achievements on a number of indicators that range from GDP per capita to the percentage of children that are inoculated against measles.

Users will find similarities with the groundbreaking Gapminder World tool that Swedish Health Professor Hans Rosling first presented to the TED Conference in 2006. He concluded that the world is converging and that old notions of contrasting developed country (generally small families and long lives) with developing country (large families and short lives) to be grossly out of date.

Don’t Throw the Baby with the Bathwater!

Zahid Hussain's picture

Paul Krugman’s September 6 article in the New York Times (How Did Economists Get It So Wrong?) is a humbling warning to the economics profession against the pitfalls of intellectual complacence. It challenges the profession to re-examine the validity of its existing knowledge particularly in relation to globalization and the workings of local and global financial markets.

Granted that economists have to face up to the unpalatable fact that our theoretical apparatus falls far short both as descriptions of how economies function and as prescriptions of how they can be made to function better. The crisis has exposed the limits of economic knowledge. According to Krugman: “The vision that emerge as the profession rethinks its foundations may not be all that clear; it certainly won’t be neat; but one can hope that it will have the virtue of being at least partly right.”

In this process of reappraising existing economic knowledge, there is a real risk of going overboard and wrong the right knowledge. Using the global economic crisis as an excuse, there are emerging tendencies to reject tested economic wisdoms in areas such as the role of foreign capital and trade policy in economic development.

One school of thought that is attempting to rise from the ashes is known as (old) Structural Economics.

Your Comments on Africa's Successes

Shanta Devarajan's picture

The African Successes post has generated a vigorous exchange of ideas.  I appreciate receiving your comments on the study, your suggestions for success stories, and your views on development approaches that have worked and those that have not.  

Les Réussites Africaines

Shanta Devarajan's picture

Ces dernières années, de nombreux pays africains ont commencé à faire preuve d’un dynamisme remarquable.

Le taux de croissance  enregistré au Mozambique est fulgurant, affichant une moyenne annuelle de 8 % sur plus de dix ans. Le Kenya est devenu l'un des plus importants fournisseurs mondiaux de fleurs coupées. Le service M-Pesa, qui permet d’effectuer des transferts d’argent à partir d’un téléphone mobile, rencontre un succès grandissant tandis que le programme KickStart aide les petits agriculteurs à irriguer leurs cultures à moindre coût. Le tourisme rwandais fleurit depuis qu’il s’est axé sur la vie des gorilles et dans la ville de Lagos au Nigéria, les nouvelles infrastructures du BRT (réseau de transport rapide par bus) facilite un développement urbain plus efficace. En deux mots, l’Afrique est en train de vivre une réelle transformation.

Global business leaders announce initiatives for women

Sameer Vasta's picture

Student at Shreeshitalacom Lower Secondary School. Kaski, Nepal. Photo: © Simone D. McCourtie / World Bank

This past Sunday, at an event co-hosted by the Hüsnü M. Özyegin Foundation, global business leaders came together to discuss the impacts of the ongoing economic crisis on women. The event culminated in the announcement of several new partnerships to support women around the world.

Highlights of the new partnerships and initiatives announced at the event include:

  • The Özyegin Foundation and Goldman Sachs will expand the Goldman Sachs 10,000 Women program to Turkey.
  • Boeing announced Forum member efforts to track and spend $2 billion over the next three years on goods and services from women-owned businesses in supply chains.
  • Belcorp announced a partnership with the World Bank to train 50,000 women in financial literacy in Latin America.
  • McKinsey presented their new research, “The Business of Empowering Women,” which maps out potential business sector contributions across women’s life cycles.


The new normal

James Bond's picture

Representatives of chambers of commerce and private sector promotion agencies from developing countries expressed their concerns about where the new sources of growth would come from in future years, at a meeting of the World Bank Group's Private Sector Liaison Officers held in Istanbul on October 5.

A lively discussion between the PSLOs and MIGA management covered subjects relating to foreign direct investment into emerging economies, as well as investments by emerging economies into other emerging economies ("South-South" investment). 

There is a real concern about how the infrastructure gap in developing countries will be filled following the crisis, given the new scarcity of private funds for public-private partnerships. 

The world is looking very different

James Bond's picture

MIGA Post-Crisis Panel

From now on, there will be need to be a more nuanced relationship between public and private sectors to sustain growth, and regional sources of growth will become more diversified.  These are two of the conclusions of MIGA's discussion panel on the post crisis outlook held on October 4 in Istanbul.

A panel of international experts, including the Colombian Minister of Finance Mr. Oscar Ivan Zuluage, MIGA's Executive Vice-President Izumi Kobayashi, and Nick Rouse, Managing Director of Frontier Markets Fund Managers, agreed on some aspects of the vision going forward, but had differing views on others. 

Taking on a more proactive, energetic role, public authorities worldwide have played a large role in limiting the downside of last year's financial crisis, they agreed. In Eastern Europe and Central Asia, the International Financial Institutions Initiative (in which MIGA participated) to support recapitalization of these countries' banks drew mention as one example of this type of successful multilateral intervention. 

Global crisis hits home in emerging Europe and Central Asia

Angie Gentile's picture

Young Roma man in Biala Slatina, Bulgaria. Photo: Scott Wallace / World Bank The global economic crisis has reversed the impressive economic growth of recent years in emerging Europe and Central Asia, hitting families hard with higher unemployment and lost wages.

Growth has plummeted from a fast clip of 7.6 percent in 2007 to 4.7 percent in 2008, and is projected at negative 5.6 percent in 2009, the World Bank said at an Annual Meetings press briefing yesterday.

“The global financial and economic crisis has literally hit home in many parts of Emerging Europe and Central Asia,” said Philippe Le Houérou, World Bank Vice-President for Europe and Central Asia.

“What started as a financial crisis has become a social and human crisis. Just as banks were under stress, families are now the ones under severe stress as they see breadwinners lose their jobs and have trouble paying their bills.”



Full Speed Ahead: Internet Traffic Growth Unaffected by Financial Crisis

Joe Qian's picture

Reading about the financial crisis and the effects that have rippled around the world, it’s always heartening to find something positive in the midst of piles of red ink and pessimistic expectations.

Although the majority of industries and economies around the world have suffered due to the downturn, Internet traffic growth accelerated at an increasing rate in 2009 compared to 2008 with no discernible slowdown due to the crisis. According to data released by Telegeography, every single region around the globe registered growth in internet traffic, or flow of data. South Asia has registered over a 100% increase, higher than the 79% posted worldwide, although it must be noted that South Asia had a lower baseline capacity.