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May 2012

More Bang for the Buck

Amit Bhattacharya's picture

Back in the mid-1980s, India's then-Prime Minister Rajiv Gandhi lamented that out of every rupee spent on welfare schemes, only 15 paise reached the poor. More than a quarter of a century later, the scale and ambition of India’s social sector programs have become far bigger than what even Rajiv’s 21st-century vision could have comprehended. But one thing has remained constant – the system still leaks.

That’s not to say the problem hasn’t received attention. There is increased awareness about pilferage and diversion of assets meant for a target population. Programs now are better designed to detect leakages, estimate what’s being delivered and allow monitoring at various stages.

But these measures have met with varying degrees of success. Clearly some states – and indeed some projects – have been better at drawing benefits and utilizing funds than others.

So how do you get more bang for your buck when it comes to development projects? When the World Bank invited me to visit some of its assisted projects in Tamil Nadu in early May this year, I got a firsthand opportunity to mull this issue.

Do Business Regulatory Reforms Impact Economic Growth?

Jamal Ibrahim Haidar's picture

It takes an entrepreneur 28 days to start a business in Spain but only 1 day to do so in New Zealand. The total business tax rate (including profit tax and labor tax) is 28.1% in Bulgaria but 68.5% in Italy. And, fixed-term labor contracts are prohibited for permanent tasks in France and Portugal but not in Germany and Sweden.

The World Bank has been publishing the annual Doing Business reports since 2004 to investigate the scope and manner of regulations that enhance business activity and those that constrain it. In a new research paper (Haidar 2012), we investigate the link between business regulatory reforms and economic growth in 172 countries.

In the course of our research, we created a five year dataset on business regulatory reforms from the World Bank’s Doing Business project. Then, we tested the hypothesis that business regulatory reforms increase economic growth, using data on micro-economic reforms. The results provide robust support for the claim that business regulatory reforms are good for economic growth. We establish that, on average, each business regulatory reform is associated with a 0.15 percent increase in growth rate of GDP. The below figure provides a visual illustration of the main empirical finding.
 
Source: Haidar (2012)

Socio economic consequences of food price spikes

Will Martin's picture

High food prices, especially when they have increased suddenly and unexpectedly, have been found to hurt many poor people around the world. The Global Monitoring Report 2012: Food Prices, Nutrition, and the Millennium Development Goals (GMR) finds that the food price shock that peaked in early 2011 pushed nearly 50 million people into poverty. On one level, this is not surprising—the poorest people, after all, spend nearly all of their income on food. But on further reflection, this result is not so obvious— three quarters of the world’s poor are rural and the majority of them depend on farming for their livelihoods. The problem is that—unlike farmers in rich countries—many poor farmers in developing countries don’t produce enough food to meet their families’ needs. These net buyers of food are hurt by higher food prices even though they are farmers.

Diamonds May Be Forever, Natural Resource Wealth Is Not

Otaviano Canuto's picture

Photo: Gennadiy KolodkinImagine a low-income country in the developing world suddenly discovering a large endowment of natural resources within its borders. Perhaps a large oil reserve is found just offshore, or a deposit of valuable natural minerals is uncovered just below the earth’s surface. Surely, such a discovery would be a blessing, as it would expand the country’s total stock of capital.

When Budget Disclosure is Not Enough

Darshana Patel's picture

Deliberations around public budgets can sometimes bring out the worst in parliamentarians but impassioned responses rarely come from citizens themselves. Perhaps it is because budgets come in the form of tomes, with tables upon tables of data and very little context. Even though those tables reflect social services and entitlements that impact us all, simply disclosing this information does not necessarily mean that these documents will be understood or the resources well spent.

The Budget Transparency Initiative (BTI), led by the World Bank’s Social Development Department and funded by the Governance Partnership Facility, has introduced a methodology to disclose, simplify, and analyze budgets at various levels to not only bring this information closer to citizens but also create enabling spaces for them to provide feedback.

Thou shall not die: Reducing maternal deaths in sub-Sahara Africa

Patricio V. Marquez's picture

Mother and child in South Sudan There is growing optimism in the development community that the dawn of the “African Century” may be upon us.  The reasons for this optimism are real.  Over the last decade, six of the world's 10 fastest-growing economies were in Africa, and substantial political and social progress has been achieved.  

But I would say that the potential for this development may be undermined if the everyday tragedy of preventable maternal deaths continues unabated across the continent. 

 

The recently-released report “Trends in Maternal Mortality: 1990 to 2010. WHO, UNICEF, UNFPA and The World Bank estimates” paints a dramatic picture. Overall, close to 60% of global maternal deaths occur in sub-Saharan Africa, and at 500 maternal deaths per 100,000 live births, the region has the highest maternal mortality ratio (MMR) in the world, well above Southern Asia (220), Oceania (200), South-eastern Asia (150), and Latin America and the Caribbean (80).

Innovation Promotes Good Governance in Albania

As Albania prepares to celebrate 100 years of independence in 2012 with an eye towards becoming a member of the European Union; it must make crucial improvements in a sensitive area: good governance.

For better governance, citizens need more access to information; budgets and local taxes need to be transparent. Women and youth need equal opportunities in business, and agriculture policies need to be developed openly.

To address these, the government is drafting and implementing new policies for central and local government, with support from the World Bank Project for Good Governance in Albania. The World Bank is further supporting the government's agenda through support for civil society projects using the Development Marketplace competition platform to solicit and select high impact projects for implementation. The British Council is overseeing their implementation.

Media (R)evolutions: Engagement with News Topics - Sub-Saharan Africa

Kalliope Kokolis's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

 

 

Source:  Media Map Resource

Surveying Mobile Learning Around the World (part one)

Michael Trucano's picture

what constitutes a 'mobile device' can sometimes be in the eye of the (be)holderAbout four years ago, the World Bank's infoDev program secured funding to do a 'global survey of the use of mobile phones in education in developing countries', based on the belief that the increasing availability of the small, connected computing devices more commonly known as 'mobile phones' was going to have increasing relevance to school systems around the world.  For a variety of reasons -- including regrettable internal bureaucratic delays and, more fundamentally, the fact that, when we looked around at what was actually happening on the ground in most of the world, not much was actually going on (yet), and so we concluded that a global survey of expert thought of the potential future relevance of the use of mobile phone in education wouldn't yet be terribly useful -- we ended up scrapping this research project, hoping that others would pursue similar work when the time was ripe. (The funds were re-programmed to support EVOKE, the World Bank's online 'serious game', the second version of which is scheduled to launch in September in Portuguese and English, on both PCs and mobile phones, with a special focus on Brazil.) A few of the organizations involved in the mEducation Alliance, an international collaborative effort in which the World Bank participates that is working to explore cutting edge intersections between mobiles, education and development and to promote collective knowledge sharing, have just published some short papers that have accomplished much of what we had hoped to do with this sort of survey.  We'll look at two of these efforts this week on the EduTech blog: the first led by UNESCO, the second (in a follow up post this Friday) by the Mastercard Foundation, working with the GSMA.

Women of action in Sudan

Kavita Watsa's picture

 

Working in development, there are some faces you never forget because they come back to you at the end of a long day, time and again. As we recognize International Day of Action for Women, I’ve been thinking about some of these faces from a recent trip to Sudan. Faces of young women who are doing community work that is so important, it is really in a league of its own. I’d like to dedicate this “day” to these women of action, the young graduates of village midwife schools in eastern Sudan.

The doorway to the midwives school in Kassala, a town close to the Red Sea, leads you into a small courtyard crowded with beds, belongings, and cooking utensils gently baking under the desert sun. Passing through this open air dormitory, another door opens into a classroom, in which a group of about twenty young women dressed in soft white are listening to a lecture that involves plenty of gesticulating and a plastic model lying on a bed. These students have already qualified as midwives and are now in town to learn more advanced skills that they can take back to their villages in a few months.


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