This is the sixth in our series of posts by students on the job market this year.
The productivity of workers in agriculture is generally much lower than in other sectors of the economy (Gollin, Lagakos and Waugh, 2014). This is particularly true in low-income countries, yet these countries generally have the highest shares of the population living in rural areas and working in agriculture (McMillan et al, 2014). So why don’t workers switch jobs into higher productivity (and better paid) occupations? Development economists as far back as Lewis (1954) and Sen (1966) have studied the labor market imperfections that may keep workers in low productivity agriculture despite higher wages elsewhere.
The Philippines has one of the best performing Public-Private Partnership (PPP) programs in Asia. According to the Philippines PPP Center, much more will be done to further improve the country's ambitious PPP program.
Infrastructure building in most countries is driven by the government. China has been the most remarkable infrastructure builder in the world over the last 30 years, and this progress has been driven almost entirely by the government. In the case of the Philippines, government is also in the driver’s seat when it comes to infrastructure development, bringing in the private sector for expertise, capacity, and relevant experience. In most PPPs, project efficiencies increase and sustainability is strengthened with private participation. Though PPPs are not a panacea, and the transactions themselves are complex, the Philippines has chosen to incorporate private sector expertise and resources in various ways. The challenge is to balance public objectives with private need for a return on investment. There has to be appropriate sharing of risks between government and the private sector.
Road safety may not be the first thing that comes to mind when thinking of ending extreme poverty. But poor road safety conditions affect the world’s poorest people the most.
Take the case of Africa. While every other region around the globe registered a decline in road fatality rates between 2010 and 2013, Africa’s rate rose. The continent now has the highest regional fatality rate with 27 deaths for every 100,000 people. Low-income countries’ share of global deaths increased from 12% to 16% during the same period. Yet these nations account for only 1% of total global vehicles.
In this video, Marisela Montoliu Muñoz, World Bank Director for Urban Development and Disaster Risk Management, provides a sweeping overview of the Bank’s Urbanization Reviews, and explains why a better understanding of the urbanization process is critical to helping countries grow sustainably and maximize their economic potential.
Click here to view a list of Urbanization Reviews that have been completed so far.
Imagine record commitments in transport that are 26% higher than the next best year since the inception of the Private Participation in Infrastructure (PPI) Database in 1990. That’s exactly what took place in 2014—massive private participation in transport that culminated in the fourth highest level of global investment (transport, energy, and water) ever recorded. Indeed, the PPI Database’s 2014 Global Update released in June, 2015, shows that total investment in transport hit a record high of US$36.5 billion, driven by a handful of outsized deals in
Latin America and, more specifically, Brazil—including a mega airport project totaling US$10 billion. Meanwhile, energy fell 19 percent year-over-year due to fewer commitments in five out of six regions, while water grew 14 percent, driven by key deals in Brazil, Mexico, and Peru. In a separate report, Telecom showed modest year-over-year declines, extending a trend of fewer projects and lower investment over the past five years.
As an intrinsically-optimistic Brazilian, my new assignment following India’s economy suits me well: India is one of the few bright spots in a somber global economy and is set to become the fastest growing large economy in the world. Our recently-released India Development Update projects India’s GDP will grow by 7.5 percent in the fiscal year ending March 2016, and by 7.8 and 7.9 percent in the following two years. Not quite the double-digit growth the Government would like to see, and to be sure there are significant uncertainties about the outlook, but an enviable state of affairs nonetheless.
What is driving the favorable momentum?
The drastic decline in global crude oil prices since June 2014 clearly played an important role. As a net oil importer, the halving of oil prices has been a bonanza for India. External vulnerabilities were greatly reduced as the lower oil import bill shrank the current account deficit despite anemic exports. Lower oil prices also helped contain prices of global commodities, and along with the RBI’s prudent monetary policy led to a significant decline in inflation. This in turn boosted real incomes in urban areas and allowed RBI to lower policy rates by a cumulative 125 basis points in the first nine months of 2015.
Global warming can be limited by reducing or avoiding greenhouse gases stemming from human activities - particularly in the energy, industry, transport, and building sectors—which together account for over 75% of global emissions. So low carbon technologies are key to achieving mitigation while creating new economic opportunities.
Since 2008, the $5.3 billion Clean Technology Fund (CTF) - one of the $8.1 billion Climate Investment Funds' (CIF) four funding windows—has been partnering with multilateral development banks (MDBs), including the World Bank and the IFC, to provide concessional financing to large-scale country-led projects and programs in renewable energy, energy efficiency and sustainable transport.
As the world gets ready for the climate negotiations in Paris later this month, the governing bodies of CTF met in Washington D.C. MDBs, donor countries, recipient countries and civil society organizations gathered to, among other things, share the results and lessons of how the CTF is reducing greenhouse gas emissions, creating energy savings, and improving the lives of some of the world’s poorest people by creating jobs and reducing pollution.
The CTF report card is based on the results from operational projects and programs over a one year period. In total, the CTF has achieved 20 mtCO2e in emission reductions—that’s the equivalent to taking four and a half million cars off the road or shutting down six coal fired power plants.
As countries prepare to meet at the G20 summit in Turkey next week, global growth and infrastructure needs will be at the top of decision makers’ concerns. And rightly so: Infrastructure – roads, bridges, ports, power plants, water supply – drive economic growth in many countries by facilitating manufacturing, services and trade. But it’s not just a matter of building more. To achieve good development on a planet stressed by climate change and diminishing natural resources, infrastructure needs to be sustainable.
‘Oh you’re going to Lima? I’ve heard the food is supposed to be amazing’. So goes the typical comment I get from friends and family when I would mention my work related travel plans. And in this sense the city does indeed live up to what is now internationally recognized. In my short amount of time in Lima I discovered it has a gorgeous historic downtown area, a stunning coastline peppered with manicured parks in the upscale parts of town, and a largely flat topography coupled with a near complete lack of rain.