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Private Sector Development

Learning from What Works: IFC and Inclusive Business

Eriko Ishikawa's picture
Also available in: Français | العربية | Español
 © Bridge International
At a Bridge school in Kenya, teachers use computer tablets to deliver lessons.


About 4.5 billion people in developing countries are low-income, living on $8 a day or less (in 2005 purchasing power parity terms). They are the so-called base of the economic pyramid (BOP) and constitute a $5 trillion consumer market. While case studies abound on many of the well-known multinationals trying to break into this market, the success of local businesses has often been lost in the discussion of “BOP business” to date.  Why are we not learning from the companies that are already succeeding with the BOP? 

Supporting Entrepreneurs: Breaking Down Barriers for Access to Finance

Irene Arias's picture
Also available in: Español

​Small and medium sized companies are the backbone of Latin America’s economy. They represent more than 90 percent of all enterprises in the region, generating over half of all jobs and a quarter of the region’s gross domestic product. They are essential to economic growth, yet their success is often blocked by one key obstacle: lack of credit. Nearly a third of companies in the region identified lack of credit as a major constraint, according to recent surveys.

Take the case of Sonia Arias, who owns a small textile business in Medellin, Colombia. When she opened her business seven years ago, she took an informal loan that left her with sky-high interest rates and little cash to reinvest. “When I was paying these loans,” she said, “it felt like we were being hit with a stick.”

Why Levi Strauss Is Joining a Race Everyone Can Win

David Love's picture
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Phnom Penh, Cambodia Photo: Chhor Sokunthea / World Bank


The global apparel industry has been forced to face some tough and unpleasant realities in recent years, and has been criticized for engaging in a “race to the bottom” especially as it relates to the conditions under which some garments are manufactured.

Shedding Some Light on Worker Skills in Uzbekistan

Mohamed Ihsan Ajwad's picture
When we first set out to answer some basic questions facing policymakers in Uzbekistan, we were unsure what exactly to expect. Little was known about worker skills in Uzbekistan until last year, when two surveys were carried out by international partners. One survey (a joint effort between GIZ and the World Bank) assessed cognitive, non-cognitive, and technical skills of the working age population by interviewing 1,500 households. A second survey (commissioned by the World Bank) interviewed 232 enterprises employing higher education graduates and used a mix of qualitative and quantitative methods to assess employer satisfaction with workers’ skills.

When we analyzed the data for our recent report, “The Skills Road: Skills for Employability in Uzbekistan” what we found was eye-opening.

A Public-Private Push for Infrastructure and ‘Inclusive Growth’

Donna Barne's picture
Also available in: العربية | Français

Swiss Re Group Chief Investment Officer Guido Fürer, European Investment Bank President Werner Hoyer, World Bank Group President Jim Yong Kim, and Australian Treasurer and Chair of the G20 Finance Track Joe Hockey at the signing ceremony for the Global Infrastructure Facility. © Simone D. McCourtie/World Bank

The idea of “Inclusive growth” and how to achieve it was talked about a lot in the days ahead of the 2014 World Bank-IMF Annual Meetings. Among the solutions on the table was a new initiative that could help unlock billions of dollars for infrastructure and improve the lives of many.

About 1.2 billion people live without electricity and 2.5 billion people don’t have toilets. Some 748 million people lack access to safe drinking water. The Global Infrastructure Facility (GIF) announced by World Bank Group President Jim Yong Kim this week hopes to lower these numbers by developing a pipeline of economically viable and sustainable infrastructure projects that can attract financing.

Beyond the allure of the Serengeti: What can nature-based tourism do for development?

Paula Caballero's picture
Ruaha is home to 10 percent of the world’s shrinking lion population

Think Tanzania and you may imagine yourself in the plains of the Serengeti or the peaks of Mount Kilimanjaro. This week I was in Ruaha National Park, the second largest national park in all of Africa, but merely a blip on the tourist map. It is not just geographically large but ecologically rich and mega diverse – it has more than 1,400 species of plants and is home to abundant iconic wildlife species. Compare the tourism traffic:  while Serengeti has 300,000 visitors annually, Ruaha has only 20,000 per year. Despite its share of nature’s bounty, Ruaha symbolizes a missed opportunity to be an engine of growth for Tanzania. By building an effective sustainable tourism policy, this reality could change fairly quickly.
 

Why CEOs Care About Climate Change

Jim Yong Kim's picture
Also available in: 中文 | العربية | Español
Photo: © Dana Smillie / World Bank
Photo: © Dana Smillie / World Bank

I’ve been hearing from business leaders over the past few months about the impact climate change could have on their industries and the goods and services we all rely on. They might not talk much about it publicly, but they are very aware of the risks a warming planet poses for their supply chains, factories and work force.

It’s Not the How; It’s the Why

Shanta Devarajan's picture
Also available in: Español | Français | العربية

Hardly a week goes by without my hearing the statement, “It’s not the What; it’s the How.”  On the reform of energy subsidies in the Middle East and North Africa, for instance, the discussion is focused not on whether subsidies should be reformed (everyone agrees they should be), but on how the reform should be carried out.  Similar points are made about business regulations,educationagriculture, or health. I confess to having written similar things myself.  And there is no shortage of such proposals on this blog
 
Reforms are needed because there is a policy or institutional arrangement in place that has become counterproductive.  But before suggesting how to reform it, we should ask why that policy exists at all, why it has persisted for so long, and why it hasn’t been reformed until now.  For these policies didn’t come about by accident.  Nor have they remained because somebody forgot to change them.  And they are unlikely to be reformed just because a policymaker happens to read a book, article or blog post entitled “How to reform…”

Moving Toward Gender Equity: It Takes Strategy and Opportunity

Sammar Essmat's picture



“Maybe in the Middle East … but in our part of the world, there is no gender inequity.” As an Egyptian, I wasn’t surprised to hear such assertions from colleagues when I arrived in the Eastern Europe and Central Asia region to deliver a program aimed at creating opportunities for women in the private sector. With its socialist legacy, the region prided itself on gender equality. Women were historically well-represented in the state-run economic systems. I looked at legal frameworks and the Women, Business and the Law indicators and found little evidence of discrimination. Laws on the books were overwhelmingly gender-neutral. I was puzzled.
 
Then I studied data from the World Bank’s Enterprise Surveys: Women’s rates of participation in the private sector told a different story. Women’s status seemed to be collapsing with the state systems and falling as markets started opening. For instance, now, only 36% of firms in the region are owned by women; that is a lower percentage than in East Asia (60%) and Latin America and the Caribbean (40%). Only 19% of companies in Eastern Europe and Central Asia have female top managers, compared to 30% in East Asia and 21% in Latin America and the Caribbean.
 
So I faced the daunting task of delivering a gender program in a region where few believe that there are gender issues to address.

The Longer World Waits to Address Climate Change, the Higher the Cost

Rachel Kyte's picture
Also available in: العربية | Français | Español | 中文

Climate change ministerial, IMF/World Bank Spring Meetings 2014In September, the world’s top scientists said the human influence on climate was clear. Last month, they warned of increased risks of a rapidly warming planet to our economies, environment, food supply, and global security. Today, the latest report from the UN Intergovernmental Panel on Climate Change (IPCC) describes what we need to do about it.

The report, focused on mitigation, says that global greenhouse gas emissions were rising faster in the last decade than in the previously three, despite reduction efforts.  Without additional mitigation efforts, we could see a temperature rise of 3.7 to 4.8 degrees Celsius above pre-industrial times by the end of this century. The IPCC says we can still limit that increase to 2 degrees, but that will require substantial technological, economic, institutional, and behavioral change.

Let’s translate the numbers. For every degree rise, that equates to more risk, especially for the poor and most vulnerable.

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