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Public Sector and Governance

Investment in emerging and developing economies: Accelerating but still subpar

Dana Vorisek's picture

After a prolonged slowdown, investment growth in emerging markets and developing economies (EMDEs) picked up to 4.5 percent in 2017, and is projected to accelerate to 5.2 percent in 2018 and 2019 (investment refers to real gross fixed capital formation, public and private combined). Yet projected investment growth is below its long-term (1990–2017) average, inhibited by political uncertainty, trade risks, and expectations of rising interest rates. This will likely limit potential output growth and delay per-capita income convergence between EMDEs and advanced economies.

WDR 2017 does not disappoint: Four implications for work in development

Rachel M. Gisselquist's picture

As a political scientist specializing in the comparative politics of development, including particular attention to issues of governance and democracy, I have followed this year’s World Development Report with special interest. I have not been alone. WDRs usually attract attention, but this year’s report seems to have attracted more than most. Several constituencies have pushed for some time for a WDR on the topics addressed in this report, and there thus was a lot riding on it in terms of hopes and expectations for a strong statement on governance.

Strengthening the rules of the game: Bhutan’s alternative procurement experience

Hartwig Schafer's picture

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. 


 

From gloom to boom: governance and economic development in Africa, in sequences

Michael Chege's picture

For any serious analysis of development in Africa, we must embrace the fact that there are distinct sovereign countries each with its own economic and development needs and likely policy choices. Perhaps at best we can only generalize about clusters of countries that share broadly similar governance, legal and development circumstances and what policies could apply to each cluster. 

Let’s look at some of the data. National populations in sub-Saharan Africa range from that of Nigeria (158.4 million) to that of Seychelles (93,000).  In 2014, Africa’s highest estimated GNI per capita that of Equatorial Guinea ($10,210), was 27 times larger than that of the Democratic Republic of the Congo, the lowest recorded in the region. In 2013, the estimated GDP per capita of the ten richest African countries was 22.6 times that of the poorest ten.  Adult literacy rates in 2013 ranged from 93 percent in Equatorial Guinea to 34 percent in Chad. 

How corruption hurts innovation in smaller firms

Caroline Paunov's picture
Firms invest in innovations if they expect future benefits from these investments. Patents and quality certificates are means for firms to claim such exclusive gains. However, in order to obtain quality certificates and patents for innovations firms have to apply to the accredited national institutions. If national officials ask for bribes in exchange of dealing favorably with applications, then the costs of engaging in innovation rise and possibly stop firms from innovating. 
 

Estonia’s digital dividends

Toomas Hendrik Ilves's picture

Digital technology dominates our everyday lives, and with each passing day, even more so. How can the global community benefit from the new digital era?
 
The World Bank’s World Development Report 2016 (WDR 2016) provides a useful framework and guidance for harnessing the potential of the internet for development. “To get the most out of the digital revolution, countries also need to work on regulations, skills and institutions—by strengthening regulations that ensure competition among businesses, by adapting workers’ skills to the demands of the new economy, and by ensuring that institutions are accountable,” says the Report. This may sound familiar, but it is not. Let me explain.