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April 2016

How advocacy strategies can help boost competition and transform markets

Tanja Goodwin's picture



Many of the World Bank Group’s client countries face a difficult challenge – and the White House recently put this issue at the top of the agenda, too: How can policymakers increase competition to support continued growth of the economy? In a global low-growth environment, developing and advanced economies alike are looking for new ways to boost productivity and innovation. A global panel of Ministers agreed at a recent Spring Meetings event that market competition is pivotal in finding a solution.

When firms collude to fix prices or divide markets, thus harming consumers and reducing competitiveness in their sector and the broader economy, independent competition authorities can fine and therefore deter such illegal conduct. When governments set up rules that reinforce the market power of a dominant firm or that allow such illegal conduct, then competition authorities can rarely demand that those rules be changed – even though the effects on prices, service quality or the availability of products can be just as severe. If champions of competition seek to promote more pro-competition government interventions in markets, they must rely on competition advocacy.

Last Thursday in Singapore, Klaus Tilmes, Director of the Trade and Competitiveness (T&C) Global Practice of the World Bank Group, and Andreas Mundt, Chair of the International Competition Network (ICN), presented awards to the winners of the 2015-2016 Competition Advocacy Contest – a joint WBG and ICN initiative – at the ICN Annual Conference.

new World Bank Group publicationlaunched by T&C on April 15, showcases the results of the 2014-2015 Competition Advocacy Contest, sharing the lessons that have been learned about effective advocacy and discussing innovative ways of adapting to new competition challenges. Previous rounds of the contest have shown how the notable impact of competition advocacy can change mindsets.

Our newest publication highlights the tools that competition authorities have developed to overcome the practical challenges, political-economy constraints and emerging trends that affect competition advocacy.

India’s informal doctors are assets not crooks

Jishnu Das's picture

This article was originally published on SciDev.Net. Read the original article.

Most of us would agree that when it comes to healthcare providers, some training is better than none. Yet even this seemingly innocuous statement is highly contentious in India, where training primary care providers who lack formal medical qualifications is anathema to the professional medical classes.
 
But the professionals are wrong. Training informal providers (IPs) could vastly improve the quality of care for millions of rural Indians and there is no evidence that it would make matters worse.
 
It is time to implement such training and critically evaluate its impact, to guide Indian states in deciding whether to treat these providers as an obstacle or an opportunity.

Information is power: Silvio Waisbord on how digital technology changes the public sphere and notions of privacy

Roxanne Bauer's picture
How do digital media affect traditional theories of the “public sphere” and power? Are we living in a modern-day panopticon?

The notion of the “public sphere” is useful worldwide to consider how citizens can and do articulate demands to the market or to states. The public sphere is generally conceived as a place (figurative or literal) in which citizens can share information, debate issues and opinions, and restrain the interests of the powerful elite. This space is critical to the formation of public will and the transmission of it to official authorities.

In contrast, the Panopticon is a design for a prison or jail which allows watchmen to observe all inmates at all times without the inmates knowing whether they are being observed or not.  The idea has been used to discuss online privacy, as individuals are often unaware of how governments and companies collect and use the information they gather about them online.  Moreover, the revelation that governments and companies work together to “spy” on citizens, as revealed by Edward Snowden revived the concern that a modern-day panopticon might be possible.   

But these concepts raise another important question: How can the public sphere, which aims to limit excess power, continue to function if the state is monitoring citizen activity?  Much of the information that is collected and tracked online is willingly shared by individuals as they search the internet, use mobile apps, and contact friends and family. This activity is vital to the future of a public sphere around the world, but it also allows governments and companies to intrude in our private lives.

Silvio Waisbord explores these two evergreen, yet very immediate concerns. He argues that while digital technologies have improved the capacities of states and companies to track human activity, digital media can also be used for democratic purposes. 
 
The modern public sphere vs. The online panopticon

Improving compliance with minimum wage standards

Uma Rani's picture
Minimum wage standards have the force of law. Yet, establishing a legally binding minimum wage does not in itself mean that these are applied in practice. In reality, compliance is always less than perfect in both advanced and developing countries. Understanding which factors determine compliance is important. Our analysis shows that compliance is affected by both the level at which minimum wages are set relative to average wages, as well as by institutional factors.

10 candid career questions with PPP professionals – Chris Olobo

Christopher Olobo's picture

Editor's Note: 
Welcome to the “10 Candid Career Questions” series, introducing you to the PPP professionals who do the deals, analyze the data, and strategize on the next big thing. Each of them followed a different path into PPP practice, and this series offers an inside look at their backgrounds, motivations, and choices. Each blogger receives the same 15 questions and answers 10 or more that tell their PPP career story candidly and without jargon. We believe you’ll be as surprised and inspired as we were.  

Remnants of the Soviet past: Restrictions on women's employment in the Commonwealth of Independent States

Alena Sakhonchik's picture


My father is a long-distance trucker based in Belarus. As a young girl, I spent long hours on the road with him. I loved traveling to neighboring and faraway cities and—even though I could barely reach the pedals at the time—dreamed of becoming a truck driver myself one day. Life ended up taking me on another path, but it wasn’t until I was older that I learned that the option of being a truck driver was never open to me to begin with.

Why?

Because my native country prohibits women from being truck drivers, one of the 182 professions out of bounds for women.

Rabobank Foundation and the World Bank team up to strengthen financial cooperatives for agrifinance

Juan Buchenau's picture

The World Bank and Rabobank Foundation are teaming up to strengthen financial cooperatives in rural areas to improve financial services for smallholder farmers and agricultural SMEs.
 
Financial services in rural areas are scarce and expensive. Servicing smallholder farmers spread across wide geographical areas isn’t attractive to mainstream financial institutions as their transactions are small, their cash flows seasonal and returns on investments can be risky due to potential crop failures or weather calamities.

To get access to savings and credit, rural households and farms often establish cooperative financial institutions (CFIs). While CFIs have a strong local presence and knowledge, they often have weak institutional capacity and governance, lack access to information technology, and suffer from political interference. Also, the laws regulating CFIs are often inadequate and supervision is weak, all of which hampers CFIs’ ability to deliver financial services. Often, CFIs don’t fall under the purview of the main financial sector regulator and supervisor, but of other entities that don’t always have the required capacity and expertise.

Weekly wire: The global forum

Roxanne Bauer's picture
World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.
 

The World Press Freedom Index
Reporters Without Borders
Published every year since 2002 by Reporters Without Borders (RSF), the World Press Freedom Index is an important advocacy tool based on the principle of emulation between states. Because it is well known, its influence over governments is growing. Many heads of state and government fear its annual publication. The Index is a point of reference that is quoted by media throughout the world and is used by diplomats and international entities such as the United Nations and the World Bank. The Index ranks 180 countries according to the level of freedom available to journalists. It is a snapshot of the media freedom situation based on an evaluation of pluralism, independence of the media, quality of legislative framework and safety of journalists in each country. It does not rank public policies even if governments obviously have a major impact on their country’s ranking. Nor is it an indicator of the quality of journalism in each country.

Non-Western Ideas for Democratic Renewal
Carnegie’s Rising Democracies Network
It is commonly asserted that Western liberal democracy is losing credibility and that the international community must be more open to tolerating, and even encouraging, non-Western political models in developing and rising powers. Calls for non-Western forms of democracy have been around for many years but are now becoming louder and more ubiquitous. This trend can be expected to deepen as an integral element of the emerging post-Western world order.  The desire of people outside the West to contribute new ideas to democratic regeneration and to feel stronger local ownership over democracy is healthy. More needs to be done to nurture a wider variation of democratic processes and practices. 

Weekly links April 29: claiming your failures, what a billion prices tells us, the demand for health products, and more…

David McKenzie's picture

Are neurotic, extraverted youths in more need of financial education?

Pablo Peña's picture

Every day more and more people in the world have access to financial services. In the minds of many, that poses an important risk. People need financial education, particularly in the form of information, to prevent them from making dangerous financial mistakes. They need to be aware of fees they pay, the interest rate charged by their credit cards, and important clauses in the contracts they sign.

The funny thing is, not even people we consider financially savvy know those things. I put these kinds of questions to 30 Mexican economists, all PhDs working in the financial sector or in academia. 38% did not know the APR of their credit cards. 66% did not know approximately how much they paid last year in fees to retirement fund managers. 72% claimed they do not usually read the fine print in bank contracts.


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