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Public Sector and Governance

The new wealth of governments? Marrying digital and physical assets

Fabian Seiderer's picture
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Editor’s Note: This is the first in a set of three blogs. While this blog focuses on pushing for a better marriage of digital and physical assets across governments, the other blogs look at the opportunities provided by disruptive technologies, policies and greater citizen engagement
 
Forests, lands, buildings, and roads are physical assets that all make up a significant part of the wealth of nations, much of it controlled by governments. Less obvious but equally important are intangible capital and digital assets.  Both the World Bank’s Changing Wealth of Nations 2018 and the Brookings Institution’s The Public Wealth of Cities state that governments could reap massive rewards by better utilizing their assets, both physical and digital. But do governments actually know what they own, what they are and their actual value?

How to remain a poverty reduction champion: Overcoming Cabo Verde’s challenges

Rob Swinkels's picture

Few countries can match Cabo Verde’s development progress over the past quarter of a century. Its Gross National Income per capita (GNI) grew six-fold. Extreme poverty fell by two-thirds from 30% in 2001 (when poverty measurement began) to 10% in 2015 (see first chart) which translates into an annual poverty reduction rate of 3.6%, outperforming any other African country during this period. Non-monetary poverty also dropped fast (see second chart). In many ways, Cabo Verde is a development star, and these achievements were made despite the disadvantage it faces as a small island economy in the middle of the Atlantic.

A lawyer from MIGA digs into PPPs

Francis Chukwu's picture



“If all parties understood the other’s vantage point,”
says the recently CP3P certified Francis Chukwu, “more deals would happen—facilitating more investment, and more successfully executed projects.”
 
Francis Chukwu had a distinguished career as an international project finance lawyer in Lagos, Nigeria, (with Aluko & Oyebode) and then in Paris, France, (with Clifford Chance) advising mostly equity investors and lenders before joining the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) in 2016. He was offered the chance to become CP3P certified through the APMG PPP Certification Program, and when he took the first Foundation-level exam he thought he could just go in and pass. Not so.

Addressing challenges in public financial management and public sector reform in East Asia

Jim Brumby's picture


Reforming the public sector is a constant process to address emerging challenges stemming from an increase in economic sophistication and expanded citizens’ expectation. However, reforming public sector organizations – their structures, policies, processes and practices – is notoriously difficult, in rich and poor countries alike.
 

A fair data marketplace for all

Siddhartha Raja's picture
Credit: Kentoh/Shutterstock
Billions of people around the world are barely aware of their participation in a trillion-dollar data market. Its growth and impact has been accelerated by the easier flow, storage, and analysis of data—thanks to rapid advances in digital technology combined with falling costs of computing. The global data economy is estimated to be worth more than US$3 trillion; the European Commission believes that personalized data was worth over EUR 300 billion by 2016. The application of personal data for online advertising is also skyrocketing with the internet surpassing television as the leading advertising channel. Two internet giants—Facebook and Google—have combined digital advertising revenues on par with the gross domestic product (GDP) of Morocco.
 
This marketplace is reshaping how people interact with and use information, leading to new opportunities. Yet, it confronts these people and policymakers alike with new questions of the trade-offs between privacy, convenience, and access to information.
 
In chapter 4 of our latest Information and Communications for Development report, we started to frame what this marketplace (or places) might look like. We sought to understand what the costs and benefits were for people—the producers of much the data, the most valued commodity in this new economy. We tried to abstract from the now almost (worryingly regular) news of leaks and hacks to get a better sense of what might be ways to think about public policies that lead to a more balanced and fair data marketplace. We thought about the opportunities and the risks that are emerging, but also about what might be ways to make data marketplaces fairer in their functioning.

Zimbabwe: public procurement reform to catalyze greater transparency and development

Nazaneen Ismail Ali's picture
Children in Zimbabwe. Photo: CECIL BO DZWOWA / Shutterstock.com

During fiscal deficits and recessions, when the pressure on the economy is profound, governments face budget shortfalls. The negative impact of a recession can also be amplified when a country, like Zimbabwe, faces overvalued exchange rates that mask the extent of underlying price pressures. Furthermore, a recently elected government has created substantial public expectations of change, and demand for greater transparency and accountability.

What’s keeping India in the dark?

Fan Zhang's picture
To boost and sustain its energy supply, India needs urgent investments and reforms to fix the inefficiencies that plague its entire electricity supply chain.
To boost and sustain its energy supply, India needs urgent investments and reforms to fix the inefficiencies that plague its entire electricity supply chain. Credit: World Bank

Statistics show that what is commonly perceived as an energy gap in India is actually an efficiency gap.

To boost and sustain its energy supply, India needs urgent investments and reforms to fix the inefficiencies that plague its entire electricity supply chain. 

But first, the good news. In 2018, every village in India got connected to the grid.  That same year, power shortages declined dramatically to 0.9 percent from 8.5 percent in 2012.  

As for clean power, India has become one of the world’s leading countries in renewable energy and aims to add 227 gigawatts of green electricity by 2022.

True, India today generates more power than ever. Yet, 178 million Indians still lived without access to grid-connected electricity in 2017.

On top of that, air pollution from coal-powered plants contributed to 82,900 deaths across India in 2015.

Given its rapidly growing economy, demand for power in India is expected to triple by 2040.

The country faces a monumental task to meet this demand while protecting its natural environment and the health of its people.

As I write in my new report, ‘In the Dark’, power distortions cost India much more than previously estimated: $86 billion in 2016—that is 4 percent of the country’s economy.

World Bank guarantees help Benin refinance expensive debt & address health, education needs: a win-win

ARNAUD BRAUD AND VINCENT LAUNAY's picture



While the World Bank’s resources for low-income countries have never been greater, they still pale in comparison with these countries’ needs. Governments always need to make hard choices between infrastructure needs, social programs, and fiscal discipline. One country was recently able to strike the right balance with the support of World Bank guarantees: Benin.

How to diversify Bhutan’s economy?

Yoichiro Ishihara's picture
Bhutan has made tremdendous progress in reducing poverty. But it needs to do a better job at diversifying its economy by improving its physical and human capital by using resource rents from hydropower.
Bhutan has made tremendous progress in reducing poverty. But it needs to do a better job at diversifying its economy by improving its physical and human capital by using resource rents from hydropower.

Will diversifying its economy help Bhutan address its youth unemployment, let alone its macroeconomic volatility and vulnerability?

With the right approach, yes.

And to that end, the latest World Bank Bhutan Development Report: A Path to Inclusive and Sustainable Development proposes solutions relevant to Bhutan’s context.

For more than ten years, developing the private sector through greater economic diversification has been Bhutan’s top policy as described in the 10th and 11th five-year plans.

Yet, youth unemployment, especially for educated Bhutanese, has remained high: 67 percent of bachelor’s degrees holders were jobless in 2016.

Diversifying the economy is touted as a standard prescription to cure such development ailments as joblessness, low productivity, and macroeconomic volatility.

However, international experience shows that this prescription does not always work.

Case in point: A World Bank’s analysis Diversified Development concludes that in resource-rich countries, investing in physical capital, human capital and economic institution are the best ways to sustain growth in the private sector.

Further to that, the development of specific sectors, which is often a common ingredient of diversification strategies in certain countries, is neither necessary nor sufficient for private-sector-led growth.

The main driver of Bhutan’s high growth and poverty reduction, hydropower has led the country’s development and will remain the backbone of its economy.

However, Bhutan needs to do a better job at diversifying its economy by improving its physical and human capital by using resource rents from hydropower.

Bhutan ranks 149 out of 160 countries on the 2018 Logistics Performance Index and 121 out of 176 countries on the 2017 ICT index.

Bhutan falls in the bottom half of the Human Capital Project rankings on critical indicators such as expected years of schooling.

Do promotions in bureaucracies need to be rule-based?

Shan Aman-Rana's picture
Women learn computer skills in Pakistan. Photo: Visual News Associates / World Bank

Editor's note: This blog post is part of a series for the 'Bureaucracy Lab', a World Bank initiative to better understand the world's public officials. In December, the Bureaucracy Lab asked for PhD students to send us their proposals for blogs that summarize their bureaucracy-related job market papers/research. Thank you to all the entrants. Shan Aman-Rana, of the London School of Economics, is the worthy winner, and her blog post is below.
 
Today, decision-making in most bureaucracies is based on rules. Why is that? Starting from Northcote, Trevelyan & Jowett, B. (1854) and Weber (1922), it has been argued that if bureaucracies rely on discretion, it will result in favouritism and collusion with substantial welfare and organizational costs.


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