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Private Sector Development

Refugee crisis: What the private sector can do

Jim Yong Kim's picture
© World Bank Group
© World Bank Group

There are about 68.5 million forcibly displaced people in the world today, of which more than 25 million are considered refugees. Almost 85 percent of them are hosted by low or middle countries with limited resources such as Jordan, Ethiopia, Uganda, Turkey, and Bangladesh. These countries face enormous challenges in meeting the needs of refugees while continuing to grow and develop themselves. 

I visited Jordan in 2014 and 2016 and was struck by the generosity and hospitality of this small, middle-income country, which accepted the influx of more than 740,000 refugees of the Syrian war and other conflicts (and that only counts the number officially registered by the UN Refugee Agency!) In 2017, Jordan had 89 refugees per 1,000 people –the second-highest concentration in the world. Its services and economy were under tremendous strain. The refugees themselves were frustrated by lack of opportunity to support themselves.  

Women rise to unlock opportunities for SDG implementation

Mahmoud Mohieldin's picture
Lucy Odiwa, an entrepreneur in Tanzania whose firm, promotes safer and more sustainable methods for handling menstrual health hygiene management (MHM) won the first place in the SDGs&Her competition. © Womenchoice Industries

Visit any community and you will see women breathing life into every part of the economy and society, be it in agriculture, healthcare, marketing, sales, manufacturing, or invention. Through their presence in every walk of life, women make significant contributions to the 2030 Agenda, including its 17 Sustainable Development Goals (SDGs), the most ambitious set of goals that the international community has ever set for itself
 
However, despite representing 50% of the population, women remain over-represented among the world’s poorest and most vulnerable groups and under-represented as leaders and drivers of change. The lack of recognition of women’s contributions, particularly through their businesses and economic activities, has severely limited their access to finance, new markets and knowledge – necessary for economic growth and poverty reduction.

Creating markets in Timor-Leste through a landmark port PPP

Christopher Bleakley's picture



As recently as 2006, Timor-Leste was in crisis. Only a few years into independence, the country was torn by riots and political turmoil. Not surprisingly, its business climate was one of the region’s worst.

But Timor-Leste’s fortunes have changed dramatically. Income from oil, coupled with greater stability and a long-term economic plan, led the World Bank to describe the country’s social and economic development as remarkable. Nonetheless, Timor-Leste remains a fragile state, and with oil accounting for 80 percent of GDP, it is the world’s second most oil-dependent nation.

Protecting Somalia’s growing mobile money consumers

Thilasoni Benjamin Musuku's picture



The mobile money market is booming in Somalia. Approximately 155 million transactions, worth $2.7 billion or 36% of gross domestic product (GDP), are recorded every month. Mobile money accounts for a high proportion of money supply in the domestic, dollarized economy and has superseded the use of cash; seven out of 10 of Somalis use mobile money services regularly.

India: A logistics powerhouse in the making?

Karla Gonzalez Carvajal's picture
Photo: Daniel Incandela/Flickr
The numbers are in: India now ranks 44th in the latest edition of the World Bank’s Logistics Performance Index, a relatively high score compared to other countries at similar income levels. This number matters not just to the logistics sector, but to India’s economy as a whole. Indeed, logistics can directly impact the competitiveness of an entire market, as its ability to serve demand is inextricably linked to the efficiency, reliability and predictability of supply chains.

Broadly defined, logistics covers all aspects of trade, transport and commerce, starting from the completion of the manufacturing process all the way to delivery for consumption. To say that it is a complex business is an understatement.

First, there is always a delicate balance between the public arm, which provides the roads, railways and waterways, and lays down the rules and regulations, and the private sector, which has responsibility for carrying out logistics operations in a smooth and seamless manner. This fine interplay is further complicated by the globalization of manufacturing which—with many more ports of call in the logistic chain—is putting ever-increasing pressure on the sector. In addition, there are very practical challenges in integrating different modes of transport, in speeding up border crossings, and in dealing with trade protections–all of which impact external trade.

But as difficult as it might be, creating a well-functioning logistics sector is essential to any nation looking to compete in the global economy. India is a case in point. To fuel its global ambitions, the country has taken active steps to up its logistics game.

Compact with Africa: Linking policy reforms with private investment

Omowunmi Ladipo's picture



The G20, World Bank Group, International Monetary Fund, and African Development Bank are partnering in a new way to stimulate private investment in Africa

Highlights

  • The Compact with Africa brings together the G20, the World Bank Group, International Monetary Fund, and the African Development Bank to spark greater private investment in Africa
  • Compact countries are Benin, Côte d'Ivoire, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo and Tunisia.
  • The first Compact Monitoring Report shows significant progress implementing macroeconomic reforms, with more work needed to improve business environments and deepen financing frameworks.

Over the past year, many of my colleagues in international development have been asking about the G20 Compact with Africa: What exactly is it? What’s in it for African countries? How is it different from what we’re already doing? How does it complement or further the World Bank Group’s ongoing work?

Their curiosity reflects a growing awareness of the role the private sector must play in helping Africa achieve its development goals. The G20, in addition to its high-profile summits and communiques, undertakes some really important work through several “tracks,” including the finance track consisting of G20 finance ministers and central bank governors. It was via the finance track that the Compact was launched in March 2017 under the German Presidency of the G20. It focuses on macro-financial issues that are foundational for enhancing infrastructure financing and for increasing private investment in developing countries.

Beating the odds? How PPPs fare in fragile countries.

Fernanda Ruiz Nunez's picture



While discussion about Maximizing Finance for Development (MFD) is ramping up with governments and the international development community to seek innovative approaches to mobilize more private sector investment in developing countries, there is a group of countries with an additional layer of complex challenges.

It brings me no pleasure to say this, but a fair number of countries have economic and financial conditions, business environments, and rule of law that are almost always weak. Clearly, these conditions significantly increase the risks of investing in infrastructure for the private sector; consequently, the markets for public-private partnerships (PPPs) tend to be less developed.

Announcing the winners of the 2018 #OneSouthAsia Photo Contest

World Bank South Asia's picture


Home to Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, South Asia is one of the world’s most dynamic regions.

It's also one of the least integrated.

A few numbers say it all: Intra-regional trade accounts for only 5 percent of South Asia’s total trade; Intra-regional investment is smaller than 1 percent of overall investment.

Social entrepreneurship begins at home: how one incubator is generating social change in Madagascar while supporting start-ups

Alexandre Laure's picture
Also available in: Français
Small group event at Incubons branch office

Founded in January 2016, INCUBONS provides access to co-working spaces and free services to social enterprises and start-ups including intensive technical assistance, mentoring and 24/7 coaching. The incubator has an extensive outreach program, including events, debates and concerts, as well as networking opportunities to connect their incubees (10 companies a year) to each other and to potential partners and investors. INCUBONS also provides pre-incubation counters where people can present their ideas and projects are diagnosed free-of-charge and then referred to affordable training courses.

New report on private capital for infrastructure in the poorest countries: 2017 a stellar year

Deblina Saha's picture



What do Bangladesh, Honduras, and Senegal have in common?

They all have per capita Gross Net Income below $1,165, allowing them to borrow from the World Bank’s International Development Association (IDA) that provides concessional financing to the world’s poorest countries. There are 72 other such IDA-eligible countries.

IDA countries face many complex challenges in the new global economy, including underdeveloped infrastructure, inadequate access to basic services, and a lack of affordable financing.  IDA support simply is not enough to resolve the myriad of complexities in these countries, and governments need to seek alliances with the private sector—especially when it comes to building infrastructure sustainably.


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