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Public Sector and Governance

What can we learn from public-private partnerships in the transport sector in Europe and Central Asia?

Vickram Cuttaree's picture
Private sector investment in Europe and Central Asia (ECA) is quite small, even accounting for the size of the individual countries’ economies. Despite integration within the European Union (EU), ECA countries have not attracted much private sector investment in the transport sector compared to other regions, such as Latin America or South Asia (four times more during 2009-13).
 
Mid-day traffic in Istanbul, Turkey
Mid-day traffic in Istanbul, Turkey

While public-private partnership (PPP) transport investment has been initially driven by countries (such as Poland, Croatia and Hungary) that implemented reforms to join the EU, most of them have not been able to close on transport PPP transactions in the past five years. Now Russia and Turkey are the leaders in the region, as explained below.

What can explain this situation?
A focus on off-balance sheet accounting of PPP projects has dominated transport PPP in EU-member ECA countries in recent years. Off-balance sheet accounting means PPP projects are structured in a way that only annual government payments are accounted for, instead of the total commitment (the assets and liabilities associated with the project). This means that PPP projects end up being large and greenfield (multi-billion dollar investment, typically in new highways), and tend to follow a separate path than for budget-financed projects, based on the assumption that the associated liabilities won’t be accounted for.

Risk allocation between the public and private sectors is driven by accounting treatment. This also results in limited support from governments and very rigid negotiations. It also means that projects are often not able to close or, as a former Minister of Transport said, “We do PPP to build off-balance sheet assets but, in order to reach financial close, assets has to be on our books.”

Please share your ideas on how Open Data can help eradicate rural poverty

Oleg Petrov's picture
We’d like to hear your ideas of how Open Data could be used to help eradicate poverty and improve public services in rural India. 

We are launching a co-creation and crowdsourcing effort on “Open Data Solutions for Rural Development and Inclusive Growth in Andhra Pradesh and Telangana.” This is linked to an ideation workshop on September 4 in Hyderabad, which will bring together key stakeholders from these two Indian States, including government officials, development practitioners, health, education, agriculture, retail and other subject matter experts, entrepreneurs, ICT firms, and academic and research institutions.

You can follow the discussions online via Twitter, ask questions and engage with us on (http://www.twitter.com/worldbankict), using the hashtag #data4impact. You can also follow us on our Facebook page.

The workshop will consist of two parts. The first part will focus on knowledge sharing of global and Indian good practices, successful solutions and lessons learned, as well as collecting feedback from participants and discussing priorities for the Open Data initiative in the rural space. There will be presentations by government officials and World Bank experts with examples from around the world, in India and within the two states.

Nowhere to Go

Rachel Kyte's picture
"Tell Them"
Tell them who we are, says young Marshall Islands poet Kathy Jetnil-Kijiner. Her video was shown during the Small Island Developing States Conference.


In the weeks running up to the 3rd International Conference on Small Island Developing States, out of frustration and a sense that they must look after themselves, a new alliance was born: the Coalition of Atoll Nations on Climate Change. Or, as President Tong of Kiribati called it, the "alliance of the sinking". The coalition comprising Tuvalu, Kiribati, Marshall Islands, Maldives, Cook Islands, and Tokelau, with Micronesia associated as part of their territory, is atoll territory.
 
These nations have tried everything to bring their situations to the climate negotiators' and development organizations' attention and have their special situation recognized. With just 15 months until the Paris climate negotiations, they seek in a group to be able to support each other and to make themselves heard. 

Co-creating solutions for smart cities

Victor Mulas's picture
Earlier this year, the World Bank partnered with Chile's Ministry of Transport and Telecommunication on a project to innovate technology and mobility solutions: Smart City Gran Concepción. So far, the project has met two milestones, ideation (in January) and formation of a diagnostic and strategic support plan (in March).

Last month, it was time for the project's third phase: a competition to surface new ideas for mass transit options, road safety and mobility information. This event, called the MueveTT Innovation Challenge, brought together 14 teams of people to brainstorm ways for the government, companies, universities, organizations, citizens, and others to work together toward the vision of smart cities.
 
Co-Creation of Solutions Competition

The Triumph of Strategy: Germany's 2014 World Cup Victory Shows How Shrewd Planning Can Sharpen Competitiveness

Christopher Colford's picture

The great-power G8 have been bickering about geopolitics, the economic G20 have been fretting about growth, and the aspiring G24 have been jostling for policy influence. But this summer’s ultimate contest in international relations has focused instead on the elite G32: the group of 32 countries that sent the world’s top-performing soccer teams to the final brackets of the World Cup tournament.

Global rivalries based on fine-tuned football finesse – not dominance in diplomacy or brute force on the battlefield – framed this summer’s highest-profile competition for international supremacy.

Amid the lengthening late-summer shadows that herald the final days before the September rentrée, thoughts of the midsummer marathon surely warm the memories of World Cup-watchers who recall the thrills of the June and July festivities before the JumboTron – with throngs packing city squares worldwide, as well as filling the World Bank Group's vast Atrium (and television hideaways all around the Bank) on game days.

By the time of the final match, even many committed fans of other national teams seemed to admit that, in the end, Germany deserved its hard-earned victory – winning 1-0 in overtime against resilient Argentina – thanks to the team's technical skills and tightly coordinated teamwork.

The tournament’s most dramatic highlights – the agility of goalkeepers Guillermo Ochoa of Mexico and Tim Howard of the United States; the spirited hustle of underdogs like Ghana and Croatia; the epic 7-1 shellacking suffered by humbled host-country Brazil; the heart-stopping offside call against Argentina that nullified an apparent final-match goal – will deservedly dominate fans’ conversations as they await the next World Cup spectacular. And videos of the overtime heroics of two substitute players – André Schürrle, who made a picture-perfect cross to Mario Götze, who seamlessly slid the ball from his chest-trap downward for a left-footed volley past Argentina’s goalie Sergio Romero – are destined to be replayed forever.

But before the fine details of Germany’s triumph recede in fans’ hazy memory, it’s worth recalling the long-range strategies it required for the new champions to envision winning the crown. The success of the Nationalmannschaft required even more than the midfield mastery of Toni Kroos and Bastian Schweinsteiger, the exuberant playmaking of Sami Khedira, and the goal-scoring prowess of Thomas Müller. Along with disciplined precision on the field, Germany’s success was also driven by organizational skill on national planners’ drawing board.

A decade in the making, victory was patiently built through the Deutscher Fussball-Bund’s national plan that reportedly cost a billion euros or more – creating a coordinated national system of youth leagues, sports facilities, training regimens and individualized skill-building for players selected to advance toward the Bundesliga. Insightful long-range planning, born of adversity, paved the way to success: Germany’s football establishment realized that its system needed a sweeping overhaul after being soundly defeated in 2000, when Germany was knocked out of the European Championship without winning a single game. Germany had not won the World Cup since 1990, but the newly refocused German football system marshalled its long-term resources. After years of sharpening its competitive edge, Germany's hyper-efficient system has now earned the sport’s ultimate prize.

Connecting Europe’s underserved communities to broadband

Roger Burks's picture
The benefits of broadband Internet are well-documented: for each 10-percent increase in penetration, a country’s gross domestic product (GDP) can increase by as much as 1.5 percent. In addition, broadband Internet brings citizens access to new job opportunities, health services and possibilities for digital engagement with their government.
 
Broadband Internet can help bring jobs
to underserved areas, boosting
economic prospects.
However, citizens of the European Union (EU) who live in rural and economically disadvantaged areas have little access to broadband Internet, and therefore miss out on the wide range of opportunities it offers. Today, only 18 percent of rural households in Europe have access to these services.
 
As a result of these gaps and challenges, the European Commission is partnering with the World Bank and others on a new “Connected Communities” initiative. This large-scale project will connect towns and cities to broadband partnerships and operators, offering critical advice and specific business models to finally bring fast Internet to underserved communities.

A Step Toward Formalization: The Charter for Cross-Border Traders

Carmine Soprano's picture

Women carrying firewood to sell at a local market in Kaduna, Nigeria. Photo - ©IFPRI/Ian Masias.If you are woman in Sub-Saharan Africa and you live and work in a rural area, you are probably a trader. You are likely to be carrying a variety of goods across the border several times per day or week, and to rely on that as a major source of income to your household. You’re probably facing high duties, complex procedures, and corrupted officials at the border – the latter, in some cases, might want to harass you before they let you go through.  You may not be able to read or understand what duties apply to the goods you are trading. In this scenario, what is your incentive to go through the formal border post?

It’s probably easier, cheaper, and faster to cross the border informally.

A Tale of Two Competitive Cities: What Patterns Are Emerging So Far?

Z. Joe Kulenovic's picture

As noted in a blog post earlier this year, the World Bank Group is pursuing a Competitive Cities Knowledge Base (CCKB) project, looking at how metropolitan economies can create jobs and ensure prosperity for their residents. By carrying out case studies of economically successful cities in each of the world’s six broad regions, the Bank Group hopes to identify the “teachable moments” from which other cities can learn and replicate some of those lessons, adapting them to fit their own circumstances.

The first two case studies – Bucaramanga, in Colombia’s Santander Department, and Coimbatore, in India’s State of Tamil Nadu – were carried out between April and June 2014. Although they’re on opposite sides of the globe, these two mid-sized, secondary cities have revealed some remarkable similarities. This may be a good moment to share a few initial observations.
 
Bucaramanga and Coimbatore were selected for study because they outpaced their respective countries and other cities in their regions, in terms of employment and GDP growth, in the period from 2007 to 2012. Faced with the same macroeconomic and regulatory framework as other Indian and Colombian cities, the obvious question is: What did these two cities do differently that enabled them to grow faster?

Corruption Fight Aided by Technology

Jim Yong Kim's picture
World Bank Group President Jim Yong Kim and Philippines President Benigno S. Aquino III on July 15, 2014. © Dominic Chavez/World Bank



Good governance is critical for all countries around the world today. When it doesn’t exist, many governments fail to deliver public services effectively; health and education services are often substandard; corruption persists in rich and poor countries alike, choking opportunity and growth. It will be difficult to reduce extreme poverty — let alone end it — without addressing the importance of good governance.

The Accountability Lab: What is Accountability, Really?

Roxanne Bauer's picture
“We need clean water, education and medicines- all of these things” points out Bendu as we talk to her one oppressively hot day in West Point, a township of Monrovia, Liberia. “But we really care about corruption” she adds: “and the law- without these our other problems cannot be fixed”.
 
Citizens around the world know that these accountability problems are at the heart of development, security and equality. But often their voices are not heard and they do not have the tools to change the status quo. The Accountability Lab works with citizens like Bendu to generate innovative ideas for integrity and make people with power more responsible for the issues they face in their everyday lives. The team provides training, mentorship, networks, management support and seed funding to take these ideas from conception to reality to sustainability.

Blair Glencorse is Executive Director of the Accountability Lab. In this video he discusses the nature of accountability and provides optimism for making it a reality.
 
What is Accountability, Really?

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