Download the January 2019 Global Economic Prospects report.
The informal sector — labor and business that is hidden from monetary, regulatory, and institutional authorities — accounts for about a third of GDP and 70 percent of employment (of which self-employment is more than a half) in emerging market and developing economies. While offering the advantage of employment flexibility in some economies, a large informal sector is associated with low productivity, reduced tax revenues, poor governance, excessive regulations, and poverty and income inequality.
Addressing the challenge of pervasive informality will require comprehensive policies that take into account country-specific conditions. Initiatives to boost long-term development might include measures aimed at reducing regulatory and tax burdens, expanding access to finance, improving education and other public services, and strengthening public revenue frameworks.
One-half of the world’s informal output and 95 percent of its informal employment is in emerging market and developing economies. Both informal output and employment have declined since 1990, particularly in countries with higher output growth, rapid physical capital accumulation, and larger improvements in governance and business climates.
Share of informal output and employment
Law and Regulation
Download the January 2019 Global Economic Prospects report.
IT’S robots that mostly come to mind when you ask people about the future of work. Robots taking our jobs, to be specific. And it’s a reaction that’s two centuries old, in a replay of Lancashire weavers attacking looms and stocking frames at the start of the first Industrial Revolution. A secondary reaction, among a much smaller group, is the creation of new jobs in the coming fourth Industrial Revolution.
Professor Ed Glaeser at Harvard neatly summarizes this dichotomy in one figure:
Are judicial reforms worth doing? It turns out, we cannot be sure, but we have a story to tell about a reform, its impact, and the impact of having measured that impact.
While I welcome criticism and comments on the Doing Business (DB) report—or any other data and research product of the World Bank, for that matter—I find Justin Sandefur’s and Divyanshi Wadhwa’s (SW) recent blog posts on DB in Chile and India neither enlightening nor useful.
The development community has experienced various “revolutions” over the years – from microfinance to women’s rights, from the green revolution to sustainable development. Each of these awakenings has improved our understanding of the challenges we face; each has transformed the development landscape, mostly for the better.
We now see the beginnings of another, long-overdue, revolution: this one focused on the fundamental role of land in sustainable development. Land has often been at the root of revolutions, but the coming land revolution is not about overthrowing old orders. It is based on the basic fact that much of the world has never gotten around to legally documenting land rights. According to the World Bank, only 10% of land in rural Africa and 30% of land globally is documented. This gap is the cause of widespread chaos and dysfunction around the world.
Also available in: Français
Land and property lie at the center of many of today’s pressing development challenges. Consider that at most 10% of land in rural Africa is reliably registered. At this week‘s annual Land and Poverty Conference here at the World Bank, we will hear how this vast gap in documentation of land gap blunts access to opportunities and key services for millions of the world’s poorest people, contributes to gender inequality, and undermines environmental sustainability.
As we mark International Women’s Day this week, and its call for bold pragmatic action to accelerate gender parity, the role of law in fighting for the human rights and gender equality of women is paramount.
When governments use the law to discriminate against women in some way that disadvantages them in relation to men, they clearly violate the letter and spirit of Article 7 of the Universal Declaration of Human Rights which reinforces equal protection under the law.
When you think of Bhutan, you typically think of the tall mountains of the Himalayas, or you think of this nation adding the ‘Gross National Happiness’, or GNH indicator onto the global development agenda. Well, from now on, you can also think of Bhutan as the first country in the world to have one of their agencies approved to apply “alternative procurement arrangements” or APAs. This may sound trivial in comparison to 7,500 meter high peaks or collective happiness in the Dragon Kingdom. But for the way we do procurement at the World Bank, it’s a real breakthrough and an important step towards becoming a better Bank.
In pursuing meaningful sustainable development, and investing in conservation and redressing the environmental damage caused by decades of neglect, we need to better explore and understand the role of international cooperation and why human values and ethics are central to this debate.
International cooperation. A key ingredient for generating a sustainable development path will have to be a significant strengthening of the current mechanisms of international cooperation, which have turned out to be insufficient to meet the global challenges that we face. The process of globalization is unfolding in the absence of equivalent international institutions to support it and harness its potential for good.
Intellectual property (IP) protection is a heavily debated issue particularly in the developing world, as many formerly poor countries have experienced rapid economic growth and now represent potentially profitable markets for innovating firms. Partly because of this growing importance, members of the World Trade Organization were required to adopt the Trade Related Intellectual Property Standards (TRIPS) intended to establish uniform IP standards including a product patent system in all fields of technology. Many developing countries such as India, China, and Brazil have recently begun creating these systems (and these policies are currently being considered in many African countries). As a result, little is known about the effects of these policies in the developing world.