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Financial constraints and export market participation in the Arab Republic of Egypt

Youssouf Kiendrebeogo's picture

Geographical location, important seaports, and airports are factors facilitating international trade in the Arab Republic of Egypt. The country’s natural access to sea routes through the Mediterranean and Red Seas offers considerable potential for increasing export participation. As a result, Egypt outperforms the average score of the Logistic Performance Index (LPI) of the developing world (Figure 1).[1]

Figure 1: Overall Logistic Performance Index in 2012 (1=low to 5=high)

Logistic Performance Index (LPI) of the developing world

Water, the economy, and development: New insights on a complex challenge

Scott Michael Moore's picture
Photo: Asian Development Bank via Flickr Creative Commons

In the World Bank Water Practice, we often talk about how issues like flooding and droughts threaten our mission to end poverty and boost shared prosperity. But how much do we actually know about how these floods and droughts - "water shocks" - impact farmers, firms, and communities? Perhaps adaptation in the economy has limited such impacts. Or maybe policies have led to economies being more vulnerable to such shocks.

To explore these questions, we recently gathered with leading researchers and policymakers in Oxford, UK, and concluded that while preliminary findings indicate water shocks definitely represent a major challenge to sustainable development in surprising and unexpected ways, there’s still much more we can do to strengthen the evidentiary basis for development policy.

Blog post of the month: Generating political will and public will for positive social change

Lori Ann Post's picture

Each month People, Spaces, Deliberation shares the blog post that generated the most interest and discussion. For January 2017, the featured blog post is "Generating political will and public will for positive social change" by Lori Ann Post, Amber N. W. Raile, and Eric D. Raile. 

Dr. Amber N.W. Raile, Dr. Eric D. Raile and Dr. Lori Ann Post present Guide to Generating Political Will and Public Will – PPW Toolkit.   

Dealing effectively with social problems requires collective action and coordinated commitment. Those persons most affected by social problems typically constitute weak or powerless constituencies that lack real representation in the halls of power. Consequently, coalitions of stakeholders must make firm commitments if conditions are to improve for the disenfranchised. Helping these immobilized and resource-deprived groups often entails short-run tradeoffs and sacrifices for others in a society, even when social interdependence dictates that sustainable long-run solutions are ‘win-win’ for most or all. Without strong mutual accountability mechanisms, stepping back from the social and policy changes necessary to address these complex issues is simply too easy and too tempting.

Long-term, effective change in complex issue areas typically happens only if the government and key public stakeholders are pushing in the same direction. Political action to address social problems and their deleterious outcomes is not enough to effect large-scale change if opposed or undermined by the public. Efforts originating with the government often coincide with laws that demand change, but not all citizens feel compelled to obey. Similarly, social change efforts driven by nongovernmental entities will flounder if government opposes or refuses to reinforce the change. To achieve success in the fight against adverse outcomes of social problems, the government and large segments of the public must be willing to recognize the problem, understand the problem in a similar way, and agree on solutions.

Resuming PPPs in Sri Lanka – now or never?

Amali Rajapaksa's picture



Sri Lanka has, over the past decade, relied primarily on public funds for most of its infrastructure needs that have come by way of borrowing on concessional and non-concessional terms with limited attempts being made to develop infrastructure with the use of private funds. However, the infrastructure gap continues to widen with the growing limitations in borrowing capacity, and the government is under pressure to deliver infrastructure adhering to practices of good governance and transparency.

The recent budget shed light on several areas where the government could engage the private sector through public-private partnerships (PPPs). Could this bring about accelerated development in infrastructure that the limited amount of public finance alone would not be able to handle?

Advancing global mental health action: lessons from Canada

Patricio V. Marquez's picture

Also available in: Español

A portrait of Miliett Kangar at JFK Medical Center and E.S. Grant Mental Health Hospital in
Monrovia, Liberia on March 07, 2016.  (Miliett did not want to show her face in the picture)
Photo © Dominic Chavez/World Bank

In 2016, a lot of effort was placed on shining the light on mental health as a neglected issue in the global health and development agendas.  The flagship event organized by the World Bank Group (WBG) and the World Health Organization (WHO) during the Spring Meetings of the WBG/IMF held in Washington D.C. was an important step to galvanize attention and commitment to change this situation.

Do Cash Transfers Have Sustained Effects on Human Capital Accumulation?

Berk Ozler's picture

Cash transfers are great – lots of people are telling you that on a continuous basis. However, it is an open question as to whether such programs can improve the wellbeing of their beneficiaries well after the cessation of support. As cash transfer programs continue to grow as major vehicles for social protection, it is increasingly important to understand if these programs break the cycle of intergenerational poverty, or whether the benefits simply evaporate when the money runs out…

Is this time really different? Will Automation kill off development?

Duncan Green's picture

Is this time really different? That’s the argument whenever people want to ignore the lessons of history (eg arguing that this particular financial bubble/commodity boom will never burst) and such claims usually merit a bucketload of scepticism. On the other hand (climate change, nuclear war) sometimes things really are different from everything that has gone before.

Which brings us to technology. Lots of musings are circulating about the rise of Artificial Intelligence, automation etc. Driverless cars will put millions of drivers out of work. Robots will kill off manufacturing jobs. Everything will change.

At the World Economic Forum, Klaus Schwab talks of ‘the fourth industrial revolution’. The bible is the Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies,  a 2014 book by Erik Brynjolfsson and Andrew McAfee. Even President Obama has caught the bug, in a recent profile in the New Yorker

‘At some point, when the problem is not just Uber but driverless Uber, when radiologists are losing their jobs to A.I., then we’re going to have to figure out how do we maintain a cohesive society and a cohesive democracy in which productivity and wealth generation are not automatically linked to how many hours you put in, where the links between production and distribution are broken.’

Which all raises a whole series of questions – is it true? If so, is that a Good/Bad Thing and for whom? Much too substantial for a blog post, but here are a few thoughts and links.

11 charts from the 2017 World Development Report on Governance & the Law

Tariq Khokhar's picture

What makes government policies work in real life for the benefit of citizens? The answer put forward by World Development Report (WDR) 2017 is better governance – the ways in which governments and citizens work together to design and implement policies.

The report is a detailed exploration of a complex topic. I won’t be able to do it justice in a short blog – I’d encourage you to download the report and summary here.

What I will do though, is pull out a few of the charts and ideas I found most striking while reading through it – have a look below and let us know what you think.

Constitutions have proliferated since the late 18th century

Constitutions – fundamental principles or laws governing countries – have proliferated since the late 18th century. The growing numbers, especially since the 1940s, correspond to the postcolonial increase in the number of independent states, and more recently the breakup of the Soviet Union.

… but they are often replaced or amended

The WDR finds that the effectiveness of constitutions in constraining power through rules is mixed – the average lifespan of a constitution is 19 years, and in Latin America and eastern Europe it is a mere eight years.

Chart: Gender Quota Laws Have Spread Worldwide Since 1990

Tariq Khokhar's picture

Over the last 25 years, different forms of gender quotas for representation in national legislatures have spread globally. Out of 74 countries studied where gender quota laws were passed, the 2017 World Development Report finds that 26 had achieved the quotes, and as of 2016, 48 countries had yet to do so.

Read more in 11 charts from the 2017 World Development Report on Governance & The Law

Looping in local suppliers rather than forcing out international firms

Anabel Gonzalez's picture



An instructor at the Savar EPZ training center in Dhaka, Bangladesh, helps young women being trained to make shirts. Photo Credit: © Dominic Chavez/The World Bank


Increasing economic prosperity for developing countries is related not only to rising trade, but also – and more important – to transforming the traditional composition of what they produce and export. In the world today, many developing countries strive to diversify away from exporting commodities toward higher-value-added goods and services.

The evolution of trade and investment flows over the last three decades shows that foreign direct investment (FDI) can be a powerful driver of exports, a creator of well-paid new jobs and a crucial source of financing. More important, FDI may become a very rapid and effective engine to promote the transfer of technology, know-how and new business practices, helping to raise productivity and setting a country on the course of convergence. This is particularly the case of efficiency-seeking FDI – that is, FDI that locates productive processes in a country seeking to enhance its ability to better compete in international markets-.
 
The benefits of FDI are further leveraged when local firms can catalyze the presence of foreign investors to connect to global and regional value chains (GVCs). As a result of new international firms investing in a host country, great new opportunities arise for local enterprises to supply the inputs – be it goods or services – that their international counterparts need.

This has been the experience of Bangladesh, where local suppliers have grown in tandem with foreign investors in the garment sector. It is through linkages with international investors that local firms can gradually be lured into producing new goods and services that, until then, were not produced in the host country.  This is how economic diversification and greater value added are generated.

Multinational enterprises (MNEs) and their key partners (Tier 1 suppliers) are generally keen to source locally if a competitive local supplier can be found. However, they are also reluctant to absorb high search-and-find costs, and they will typically not invest in assisting local suppliers with upgrading efforts. Likewise, local firms are generally keen to supply to foreign firms, but are often not ready to make the necessary investments in technology and in processes to meet strict quality standards without a clear line of sight on potential payoff for such investment.


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