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March 2016

Are billionaires good for growth?

Donna Barne's picture
Also available in: Español | Français | 中文 | العربية
Rich People, Poor Countries

We are living in a world where the largest corporations are larger and the richest entrepreneurs are richer than ever before – and an increasing number of billionaires are based in emerging countries. Who are these tycoons and how important are they to their economies?

A new book by Caroline Freund aims to answer these questions by examining the characteristics and impact of 700 emerging-market billionaires whose net worth adds up to more than $2 trillion.

Rich People, Poor Countries: The Rise of Emerging-Market Tycoons and Their Mega Firms finds that very large firms are export superstars in their home countries.

In the United States the top 1% of firms account for 80% of exports. In emerging countries, the top 1% account for 50% of exports but that figure is rising rapidly, Freund said at a book launch at the World Bank’s Infoshop on March 23.

The lessons of Carabayllo: making tough choices in the fight against TB

Carlos Ferreyra's picture
Also available in: Español | Français
Former Tuberculosis Patient is Symbol for World Bank Group President
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Poverty and multi-drug-resistant tuberculosis condemned Melquiades Huaya Oré to a certain death.

He was 17 in 1993, and so thin that doctors needed only a few fingers to encircle his arms; his skin was stretched so taut that you could see his ribs and other bones. All the odds were against Melquiades, and he should been another number in the statistics of TB, a major public health threat that costs 4,000 lives daily.

Globally, 9.6 million people fell ill with tuberculosis in 2014, one million of them children. According to the latest world health statistics, in 2014, 1.5 million people died of the disease.

Scaling development learning with MOOCs

Sheila Jagannathan's picture
“The main point I took away from the course is that PPPs are a complex process and are only as good as the legal, regulatory and technical framework that support them,” said Felister Munyua, a participant in the World Bank Group’s Public Private Partnerships (PPPs) Massive Open Online Course (MOOC). “To ensure their success a country must work on building these resources.” 
 

Mitigating El Niño's impact on water security

Ede Ijjasz-Vasquez's picture
Every 2 to 7 years, the cyclical warming of Pacific Ocean waters triggers a global pattern of weather changes that can be felt across many different parts of the world. This phenomenon, known as "El Niño", translates into intense rainfall and floods in certain areas, and severe drought in others. Due to its impact on precipitation, El Niño can seriously undermine water security, decrease agricultural yields and threaten livestock–putting considerable pressure on the livelihoods of affected communities.
 
Ahead of World Water Day 2016, Lead Disaster Risk Management Specialist Christoph Pusch explains how the World Bank helps client countries anticipate, respond to, and recover from El Niño-related shocks such as droughts or floods.

After the Adolescent Girls Initiative: Recommendations for Future Research

Sarah Haddock's picture
The Adolescent Girls Initiative (AGI) pilots taught us a great deal about how to make skills training more female-friendly and how to improve the quality of skills training broadly. They also highlighted new questions for the next generation of skills training projects to answer.

Five of the eight AGI pilots were able to successfully embed a rigorous impact evaluation design. We also had a centralized research team that ensured standardization of the research objectives and methods as much as possible. You can access the papers from the individual pilots on our website, and you can download useful documents such as our evaluation concept notes, list of core indicators, and survey instrument in our Resource Guide.

Here are some key recommendations for further research:

Unbundle evaluation designs and provide cost-benefit information by project component. AGI evaluations weren’t able to compare the relative impact of technical training versus life skills training or measure the impacts of specific project strategies, such as mentoring or placement assistance. Similarly, we can say very little about disaggregated costs of these components.

Have a cash-only evaluation arm. Youth employment interventions of all kinds are under pressure to demonstrate that their impacts are larger than what could be achieved through giving cash directly. See, for example, this relevant blog post from Chris Blattman. As part of this agenda we also need to understand the differential impacts of cash provision on young men and women.

Determine the optimal composition, intensity, and delivery of different mixes of skills. This is particularly true for life skills training, which tends to be much more heterogeneous across contexts and is far less expensive to implement than technical or business skills. Related questions around the appropriate age to focus on different types of skills and whether training works better in sex-segregated classrooms will aid in designing the next generation of youth employment programs.

Test strategies for job placement. Progress has been made in improving the delivery of skills training and in helping youth start businesses, but much less is known about how to cost-effectively assist youth to find and retain wage jobs. Interventionssome implemented in AGI pilotsthat deserve more testing include:
  • Variations in the length and intensity of job placement support: Most AGI interventions  included three to five months of placement support;
  • Performance-based contracts for the training providers, as used in both the Liberia and Nepal AGI pilots, though these have not been tested rigorously;
  • Wage subsidies, as tested among young female community college graduates in the Jordan AGI, which achieved significant short-term gains but no long-term impact;
  • Partnerships with large firms to create custom training programs.
Find ways to reduce occupational segregation. Few interventions have tackled the issue of occupational segregation head-on. Studies from the World Bank Group Africa Gender Innovation Lab show that lack of information is indeed a constraint that prevents women from crossing over into male-dominated fields, and that having a male mentor seems to help women make this transition. However, the only randomized controlled trial we are aware of, involving an informational intervention in Kenya, was unsuccessful in increasing women’s engagement in male-dominated trades. We need to learn how to break occupational segregation while minimizing women’s exposure to harassment, social isolation, and other risks. One approach to test is the encouragement of women to enter non-traditional trades in groups, as in the Liberia and Rwanda AGIs. Research is also needed on how to induce young women to enter new industries in which no clear gender assignment has yet been made, as in the business process outsourcing industry in India.

Untangle the relationships between young women’s labor and health outcomes. The AGIs in Liberia and Nepal, using a technical and vocational education and training (TVET) model, did not have significant impacts on sexual behaviors or health outcomes, while the Uganda girls' club-based approach dramatically lowered fertility and increased condom use. One distinguishing factor about the Uganda project was that it worked with younger girls, starting at age 14. Another important question to answer is whether there is an optimal age threshold or whether there are other conditions under which skills training projects can affect sexual behaviors.
 

Igniting innovation requires leadership and culture change

Adarsh Desai's picture
Most old and large institutions are built around driving efficiency and focus around existing core competencies. Taking risks and trying new approaches is not viewed as essential to delivering highly efficient and predictable products or services. In such institutions leadership and culture rewards efficiency, risk-avoidance, and predictability, all things contrary to what’s needed for innovation.
 
When such institutions aspire to inculcate more innovation, where do they begin? What’s the secret for igniting innovation?
 

Supporting land rights helps us build stronger, more prosperous communities

Ede Ijjasz-Vasquez's picture
Land is an incredibly valuable asset that represents many different things. Land is, first and foremost, a place to call home. For many, it also serves as a critical means of production that they depend on for their livelihoods. Finally, land is inextricably linked to a community's history and culture.
 
Yet, as important as land ownership may be, 70% of the world's population still lacks access to proper land titling or demarcation. This carries a host of negative consequences: when people have to live with the constant threat of potential eviction, they are more likely to remain or become poor, and cannot invest in their land with confidence.
 
Conversely, stronger land rights can be a powerful tool for economic development and poverty reduction. That is why the World Bank is working with client countries to build legal and institutional frameworks that effectively protect land tenure - including for vulnerable groups such as women and indigenous peoples.
 
In this video, World Bank Practice Manager Jorge Muñoz describes in greater depth how the institution is bolstering land tenure around the world as part of its mission to eliminate poverty and boost shared prosperity.

Now's the time to make value-based property taxation happen in Europe and Central Asia

Mika-Petteri Torhonen's picture
Photo: Kyrgyz Republic – Mika Torhonen
The World Bank has supported land reform, land administration, and land management projects in 24 countries in the Europe and Central Asia region (ECA) since the 1991 dissolution of the Soviet Union and Central European socialist countries. This has been a period of catalyzed, unprecedented political, economic, and social changes and also a remarkable success story in creating private property rights, and developing land registration and cadastre systems. The results are becoming visible. According to the 2016 Doing Business Index, 7 of the 10 best- performing property registers are found in ECA countries. It is time to think next steps and how to best utilize these data repositories for development.

An office on four wheels brings land administration services to isolated populations

Victoria Stanley's picture
 State Committee on Property Issues of Azerbaijan Republic
Photo: State Committee on Property Issues of Azerbaijan Republic
I recently had the opportunity to see the mobile offices run by the State Service for the Registration of Real Estate (SSRRE) of the Republic of Azerbaijan.  These mobile offices provide the same services any citizen can receive in a physical SSRRE office, but they literally come to you.

Property registration is a very important activity in Azerbaijan which has transformed from a planned economy to a market economy over the past decade. For most citizens their property is the largest asset they own, so being able to register that property in a secure real estate registry is very important. However, there are many reasons that can prevent property owners from visiting an office, whether it be distance, old age, or disability. That’s why SSRRE decided to take the office out on the road. 

Transported back in time

Elisa Liberatori Prati's picture
Panel members, left to right: Denis Robitaille, Slobodan Mitric, Maryvonne Plessis-Fraissard,
Christine Kessides, and Georges Bianco Darido. © Elisa Liberatori Prati/World Bank


How do you think the challenges faced by the World Bank’s urban transport teams have changed since the sector emerged in the 1970s? Did they become more or less complex? And what factors influenced the sector’s evolution? Recent research by Slobodan Mitric on the early years of the Bank’s urban transport sector gave Bank staff a unique opportunity to glimpse into the past, find some answers to these questions, and uncover the knowledge hidden in the historical records of the World Bank Group Archives.

Mitric, who has spent his entire professional life working on the subject of transport in cities and retired from the Bank in 2003 as a lead urban transport specialist, presented the findings of his research in the Archives at a panel discussion on the “World Bank’s Engagement with Transport in Cities: The Early Years 1972-1982” last month. The panel was organized by the World Bank Group Archives jointly with the History, Urban & Water, and Transportation Thematic Groups of the 1818 Society.

Sustainable Fisheries – an emerging new normal?

Valerie Hickey's picture
Tanzania, Zanzibar fisherman. Sonu Jain. World Bank

Last month I had the pleasure of attending a ‘trilogue’ organized by the European Commission for policymakers, scientists and the private sector on the subject of fisheries. I realized very quickly that the discussion went well beyond a traditional view of fisheries and instead was focused on sustainable fishing –  no longer a long-term ambition but a real-time response to the need to grow economies and prepare to feed the additional 2+ billion people coming to dinner in the next 20 years. It seems that sustainable fishing – definitely not quickly enough and certainly not everywhere yet – is an emerging new normal. Just how has this happened?

Progress and persistence in gender equality: Reflections on the WDR 2012

Daniel Nikolits's picture

Today marks the fifth International Women’s Day since the publication of the World Development Report 2012 on “Gender Equality and Development.” That WDR showed us that gender equality is both an important development objective in its own right, as well as smart economics. On the occasion of International Women’s Day, I sat down with the co-Directors of the WDR 2012, Ana Revenga and Sudhir Shetty. They shared some of their reflections on the origins of the report, its successes and impact, the challenges that remain, and why a focus on gender in development work still remains important today.  

Taking On gender norms to empower women

Ede Ijjasz-Vasquez's picture
All societies are guided by a certain number of rules - formal or not, written or unwritten, that define how members of the community are expected to behave, how they should interact with each other, what is acceptable or not. These so-called “social norms” permeate many aspects of our lives. They are often so deeply-entrenched that individuals may have a hard time distinguishing norms imposed upon them by society from their own individual preferences.
 
Gender relations are one aspect of our lives where the role and impact of social norms are particularly obvious. Even today, gender roles and stereotypes continue to exert significant influence over the way men and women behave, and how they interact with each other.
 
That is why it is critical for us to acknowledge, understand, and, if necessary, challenge existing social norms when designing and implementing projects that are meant to improve the lives of women. From reducing fertility rates in Bangladesh to combating gender-based violence in Haiti, Senior Social Development Specialist Maria Beatriz Orlando gives us examples of World Bank projects that effectively empowered women by addressing the reality of gender norms on the ground.

Improving the quality of skills training: What the Adolescent Girls Initiative pilots can teach us

Sarah Haddock's picture
Also available in: Español

The Adolescent Girls Initiative (AGI) through its eight pilots taught us a great deal about how to make skills training more female-friendly and support young women's transition to productive employment. In addition to all the lessons we learned about working with young women, the pilots also taught us a lot about how to improve the overall quality of skills training.

Our Top 5 quality enhancement lessons, along with links to more information, can be found online in our Resource Guide and here:

Lesson 1: Skills training projects need to set realistic expectations for self-employment versus wage employment. In contexts with limited opportunities for wage employment, skills training projects should help orient youth to the likelihood of self-employment and develop content suitable to different levels of aspiration in that sphere. In Liberia, for example, we offered a job skills track and a business skills track. We ended up having to gradually reduce the size of the job skills track from 35 percent of trainees in Round 1 to just 18 percent in Round 3 after our impact evaluation showed the employment rate in the business skills track was much stronger. This wasn’t easy—it involved changing the orientation of the client, the training providers, and the girls themselves.  

Lesson 2: Involving the private sector can improve the market relevance and overall effectiveness of training. AGI pilots partnered with the private sector in the implementation arrangements by hiring private companies to provide training tailored to the needs of a specific firm/sector—as in the Rwanda AGI—and by hiring private sector training and employment service companies to deliver training and assist with job placement—as in Haiti, Liberia, and Nepal. We also took low-cost steps to engage the private sector throughout implementation. For example, the Liberia AGI organized Private Sector Working Groups to provide routine guidance on project activities and enlisted members of the private sector to inspire the trainees by serving as guest speakers in the classroom.

Lesson 3: Post-training support is critical and must be planned and budgeted for early on. Even Getting the training up and running always seems like priority number one, but over the course of implementing the AGI pilots we learned that we needed to do a better job planning and budgeting for more structured and intensive post-training support from the very beginning of each project. The AGI pilots provided three to six months of post-training job placement assistance—such as internships, job search coaching, and so on—or business advisory services—such as business mentoring and check-ins, linkages to micro-franchises and business capital, etc. The exact balance of classroom training versus placement support hasn’t been rigorously tested, but our experience suggests this support can really help trainees put their new skills to use in the labor market. An extended follow-up period may be particularly important for young women just entering the labor market or breaking into non-traditional trades.

Lesson 4: Improving the monitoring and verification of employment outcomes is essential if we want to improve employment outcomes in skills training projects. Many projects don’t monitor attendance or performance during training, let alone keep track of participants after training ends. AGI pilots monitored business and job performance and verified employment outcomes up to six months after classroom training ended. The pilots relied on self-reporting by service providers, then verified these claims among a random sample of trainees (about 25 percent) by talking with employers, local women, and community members, and by accessing the trainee’s business records. The percentage of employed youth in the sample was then extrapolated to the population that the training provider claimed to be employed. In Liberia and Nepal, where pilots implemented results-based contracts, this extrapolation was used as a basis for the final payment. Any inaccurate claims by training providers proportionally reduced their payment and could jeopardize eligibility for future rounds of training. In the Resource Guide, you can download the employment/business verification strategy from the Liberia AGI, as well as tools for monitoring and placement verification.

Lesson 5: Performance-based incentives are operationally feasible—even in fragile settings—and seem to improve outcomes, though this is an area for more rigorous testing. We used results-based contracts for training providers in the relatively small program in Liberia, targeting 2,500 young women, as well as in the Nepal AGI, which was embedded in a larger program that trains 15,000 youth annually. Both projects achieved impressive results and we hypothesize that the performance incentives for the service providers accounts for this in part.

A forthcoming and final blog in this series will address recommendations for future learning and research from the AGI.
 

What I learned from the BEES about women’s empowerment and nutrition

Melissa Williams's picture

About four years ago, I started coordinating a knowledge and learning network, which we ultimately named Business, Enterprise and Employment Support (BEES) for women in South Asia. This network was a first for the Bank in South Asia because it comprised leading civil society organizations in eight South Asian countries* —not our typical clients—and it focused on sharing knowledge across borders about what works for women’s economic empowerment. I remember being told at the time to focus only on economic empowerment of women—don’t give in to “mission creep.” That was impossible. 

This International Women’s Day, three women who inspire me

Zubedah Robinson's picture
Also available in: 中文 | العربية | Español | Français
March 8 is International Women’s Day. This year’s theme is “Planet 50-50 by 2030: Step It Up for Gender Equality." The United Nations is encouraging the world to envision a world where women and girls can have the choice to participate in politics, get an education, have an income, and — an area I hold dear to my heart — live in a society free from violence and discrimination.

World Bank supporting both displaced and host communities to alleviate the burden of forced displacement

Ede Ijjasz-Vasquez's picture
Every year, conflict and natural disasters force millions to flee their homes and seek refuge elsewhere, either within or beyond the borders of their country.
 
While forced displacement is nothing new, the number of displaced people has increased significantly over the last few years: according to The United Nations High Commissioner for Refugees (UNHCR), conflict and war alone had forced a staggering 60 million people away from their home at the end of 2014-the highest level ever recorded.
 
Displacement is often a traumatic experience for the displaced, who may lose their homes, livelihoods, and experience precarious living conditions. In many cases, it also puts tremendous pressure on host communities that do not always have the capacity or infrastructure to absorb a sudden influx of people.
 
The World Bank has been working alongside displaced people and host communities alike in areas such as housing, municipal services, livelihoods, land, disaster risk management, and social cohesion. Priority is given to community-driven programs that put beneficiaries in the driver's seat and empower them to develop projects tailored to their own specific needs.
 
For more information on how the World Bank is addressing fragility, conflict, and violence, please make sure to visit our new Development for Peace blog.

The future of wildlife is in our hands

Claudia Sobrevila's picture
Also available in: Français
Botswana. The Global Wildlife Program

On March 3rd we will celebrate World Wildlife Day. Adopted by the UN General Assembly in 2013, this day raises awareness of the world’s wild fauna and flora. This year’s theme, "The future of wildlife is in our hands" resonates with those who understand the impact of species loss on the health of ecosystems and human survival.

We are currently in the midst of the sixth, man-made mass extinction of plants and animals. Experts estimate the current loss of species to be between 1,000 and 10,000 times higher than the natural extinction rate. The global Living Planet Index (LPI) shows an overall species decline of 52% between 1970 and 2010. Our increasing demands on nature are driving the two biggest catastrophic threats to species decline- habitat loss and wildlife trade. Habitat loss is a threat to 85% of all species.  Exploitation (including poaching and wildlife trade) is the most immediate threat to wildlife populations worldwide.

Illicit trafficking in wildlife is a multifaceted global threat. The problem is particularly acute in Africa, where poaching is leading some charismatic species to the brink of extinction. For example, in 2011 the International Union for Conservation of Nature (IUCN) declared the Western black rhino extinct, largely due to poaching. The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Monitoring the Illegal Killing of Elephants (MIKE) program estimated that in the last 5 years, between 22,000 to 25,000 elephants were poached per year across Africa.

“We love our daughters. But we need a son.”

Giorgia DeMarchi's picture

“We love our daughters. But we need a son.”

This refrain captures the common sentiment in Armenia, and is at the heart of the growing issue of sex imbalances in the country. Armenia today has one of the most imbalanced sex ratios at birth in the world, with 114 baby boys born for every 100 baby girls, above the natural rate of 105. We recently met with groups across Armenia to dig deeper into the root causes of sex preferences, with the hope of helping find an effective policy solution.
 
This issue has long affected countries like China, India and others in Asia, but it has emerged only recently in the South Caucasus. In Armenia, the ratio of boy births to girl births started increasing in the 1990s, when economic disruption and the desire to have smaller families, combined with the availability of sex detection technology, led many families to choose sex selection in the quest to have a son. The result? A generation of “missing girls,” as Amartya Sen first called this phenomenon.

A virtuous circle: Integrating waste pickers into solid waste management

Martha Chen's picture
Also available in: Português | Español | 中文
Waste – its generation, collection, and disposal – is a major global challenge of the 21st century. Recycling waste drives environmental sustainability by reducing greenhouse gas emissions and stimulates the economy by supplying raw materials and packaging materials.
 
Waste pickers are the principal actors in reclaiming waste for the recycling industry. Across the world, large numbers of people from low-income and disadvantaged communities make a living collecting and sorting waste, and then selling reclaimed waste through intermediaries to the recycling industry. Where others see trash or garbage, the waste pickers see paper, cardboard, glass, and metal. They are skilled at sorting and bundling different types of waste by color, weight, and end use to sell to the recycling industry. Yet waste pickers are rarely recognized for the important role they play in creating value from the waste generated by others and in contributing to the reduction of carbon emissions.
 
Fortunately, around the world, waste pickers have been organizing and cities have begun to promote the virtuous circle that comes with integrating waste pickers, the world’s recyclers, into solid waste management.
 
Brazil was the first country to integrate waste pickers, through their cooperatives, into municipal solid waste management systems and the first to adopt a National Waste Policy, recognizing the contributions of waste pickers and providing a legal framework to enable cooperatives of waste pickers to contract as service providers. The national movement of waste pickers in Brazil was awarded a contract to clean the stadiums during the World Cup.