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May 2017

Between 2 Geeks: Episode 7 - The Future of Data? (Cape Town Edition)

Tariq Khokhar's picture

The first World Data Forum was held in Cape Town, South Africa earlier this year. The gathering brought together statisticians, data scientists, business people, public officials and NGOs to learn from each other about how data are being used to measure and drive progress globally.

In this episode, marking the end of the first season of Between 2 Geeks, I share some highlights from the event.

The World Bank hosted a session on “The Future of Data” where the recurring theme was “data integration” - combining multiple sources of data, from multiple types of organization, with multiple types of technology and approach to offer insights that are greater than the sum of their parts. You can watch a video of the whole session here and in the podcast, hear from Mark Ryland of Amazon Web Services, Molly Jackman of Facebook and Andy Tatem of the World Pop Project and University of Southampton.

I also spoke with Anna Rosling Rönnlund of Gapminder who told me about her organization’s journey to make data more understandable and to help promote a fact-based world view. One of the projects they were demonstrating is Dollar Street - a site that lets you explore photographs of the everyday life and possessions of the poorest to the richest people around the world. What’s striking is how similar life looks for someone living on say $100/month in almost any country you care to look at.

This episode of Between 2 Geeks is hosted by Tariq Khokhar and produced by Richard Miron. You can chat with us on twitter with the hashtag #Between2Geeks, listen to new episodes on the World Bank Soundcloud Channel and subscribe to “World Bank’s Podcasts” in your podcast app or on iTunes.
 

Three things we need to know about “SOGI”

Ede Ijjasz-Vasquez's picture


May 17 is the International Day Against Homophobia, Transphobia and Biphobia, or IDAHOT.
 
Why should we care about IDAHOT? Because sexual orientation and gender identity, or SOGI, matters.
 
Here are three things we need to know about SOGI:
 
First, SOGI inclusion is about zero discrimination
 
Despite some legal and social progress in the past two decades, LGBTI people continue to face widespread discrimination and violence in many countries. Sometimes, being LGBTI is even a matter of life and death. They may be your friends, your family, your classmates, or your coworkers.

India, Malaysia share experiences how to support start-up SMEs

Mihasonirina Andrianaivo's picture



Both Malaysia and India are countries steeped in innovation with a strong desire to foster new, innovative start-up enterprises. 
 
With a global focus on providing more support to Small and Medium Scale Enterprises (SMEs) – and recognizing that start-ups play a crucial role in creating jobs, growth, exports and innovation within most economies – Asian countries are keen to learn from each other’s experiences. These efforts have taken on a greater priority in India under the leadership of Prime Minister Modi and his “Make in India” and “Start-Up India” campaigns.
 
The World Bank has been supporting India for several years in the area of MSME finance, which is one of the most widely recognized impediments to SMEs, particularly for start-up enterprises.  Through the $500 million MSME Growth Innovation and Inclusive Finance Project, the World Bank supports MSMEs in the service and manufacturing sectors as well as start-up financing for early stage entrepreneurs.  The start-up support under this project ($150 million) is for early stage debt funding (venture debt) which isn’t well evolved. (Unlike India’s market for early stage equity which is considered to already be reasonably well developed.)
 
As part of this project, the World Bank and the Small Industries Development Bank of India (SIDBI), recently held a workshop in Mumbai to allow market participants to learn from one another, and particularly about Malaysia’s successful support for innovative start-up SMEs. The workshop’s participants included banks, venture capital companies, entrepreneurs, fintech companies, seed funders and representatives from the Malaysian Innovation Agency (Agensi Inovasi Malaysia – AIM).

InfraCompass: Helping governments set their infrastructure policies in the right direction

Chris Heathcote's picture

The Global Infrastructure Hub (GI Hub) has launched a new tool to provide a guide for governments to create the best conditions to deliver infrastructure.

The initiative, InfraCompass, pinpoints the leading policies and practices that lead to sustainable and equitable infrastructure through efficient markets, better decision-making, and delivery. The GI Hub analysed 130 infrastructure-related datasets and produced data on infrastructure markets in 49 countries accounting for over 90% of global GDP.
 

InfraCompass online tool
 

Corridors to coexistence: reducing human-wildlife conflict

Claudia Sobrevila's picture
© Assam Haathi Project
© Assam Haathi Project 

In extreme conditions, a human can survive three minutes without air, three days without water, and three weeks without food. To support a global population that has grown to 7.5 billion, the demand for these essential natural resources is increasing, leading to deforestation, habitat degradation and fragmentation, overgrazing, and over exploitation.
 
In the quest to survive and thrive, humans have already converted 38% of the world's land area for farming; in addition, we have deforested land for industry, mining and infrastructure, leaving less than 15% of the world's land area as terrestrial protected areas for biodiversity conservation. If there is so much human pressure on protected areas, where can the remaining populations of elephants, big cats, and other wildlife go in search of their own food and water? A rich maize harvest, an unprotected paddy field or a well-fed cow in the surrounding landscape would (understandably) seem irresistible. This conflict over natural resources, especially land and water, is the root cause of human-wildlife conflict.  

Forest and climate-smart development in the Democratic Republic of Congo

Daniela Goehler's picture
Also available in: Français
Communities are working to reduce deforestation and forest degradation to address climate change in the DRC. Photo credit: Laura Otálora/The World Bank 

The Democratic Republic of Congo’s efforts to shift to sustainable land use is producing first results in the Mai Ndombe province- an encouraging model for other countries seeking to reduce deforestation and forest degradation.

As I look out the window of our small propeller plane heading toward Inongo, the capital of the Mai Ndombe province in the Democratic Republic of Congo (DRC), the difference in landscape is jarring. The areas around Kinshasa, the sprawling capital city with a population over 10 million, are marked by degraded lands with barely a tree in sight. As we fly further north and east, we pass over scattered patches of green on savannahs, but when we cross over into the Congo Basin, there are suddenly forests as far as the eye can see. Mai Ndombe, my final destination, spans more than 12 million hectares, most of which are forest, and is part of one of the most important tropical ecosystems left on earth.
 

What happens when business training and capital programs get caught in the web of intrahousehold dynamics?

Markus Goldstein's picture
Two weeks ago, I blogged about a new paper by Arielle Bernhardt and coauthors which looked at the idea that when women receive a cash infusion from a program, they may give it to their husbands to invest in their business.
 

Seven ways to think like a 21st-century economist

Phil Hay's picture

Having just published her new book called Doughnut Economics, Kate Raworth —a senior visiting research associate with Oxford University's Environmental Change Institute—is touring the world, appealing to people to break their global worship of growth; redesign money and finance; and to create economies that are regenerative and redistributive, and serve the interests of people worldwide, not just Audi drivers.    

As Raworth readies her slides for the presentation, it feels like more ritualistic torture is on the way for devotees of economics.  Scorned and roughed up for not warning beforehand about the 2008/9 financial crisis, and then lumped in with the backlash against "experts" in the recent UK Brexit vote, economists are being force-fed humility these days. Perhaps it's just a market correction towards the real calling for economists which John Maynard Keynes once envisaged as, "If economists could manage to get themselves thought of as humble, competent people on a level with dentists, that would be splendid."

Kate Raworth's flier for the May 11 event at the World Bank, promised that her game-changing analysis and inspiration for a new generation of economics thinkers will be "simple, playful, and eloquent."

Raworth starts off with her trademark pitch that "economics is the mother tongue of public policy" but when confronted with climate change, inequality, and the other arresting challenges of our present age, its hallowed ideas are centuries out of date and need to be junked. She uses the image of a doughnut to chart social and planetary boundaries consistent with achieving the SDGs and to depict where the "sweet spot" of progressive human prosperity lies. Threats to social justice and the planet's future lie outside the doughnut ring in pulsating red beams.

Transit-oriented development and the case of the Marina Bay area in Singapore

Gerald Ollivier's picture


What do you love about the city you live in?
 
Your answer may be a combination of the following: ease of travel and access to many jobs using high quality and low cost public transit; livability as measured by the availability of green or community space such as parks, schools, cultural or shopping centers; ease of walking and biking encouraging active living and an engaging community; and an idea of what the city would look like ten years from now.

How to make grants a better match for private sector development

Cecile Fruman's picture



From the Yemen Enterprise Reviltalization and Employment Pilot Project.

In December 2016, the 18th  replenishment of the International Development Association, the World Bank’s fund for the poorest countries, put private sector development squarely at the heart of our organization’s commitment to end extreme poverty and boost shared prosperity. In addition, the Internal Finance Corporation’s 3.0 strategy placed new emphasis on creating and catalyzing markets and scaled up the role of advisory services in providing firm-level support.

This new focus makes it even more important to answer the following question: Do we have sufficient evidence about the efficiency and effectiveness of the tools used by the World Bank Group to help firms grow in our client countries?

Building on a broad evaluation of the Bank Group’s support to small and medium-sized enterprises (SMEs), published in 2014, a recent report by the Trade & Competitiveness Global Practice, supported by the Competitive Industries and Innovation Program, reviews the experience to date of supporting SMEs through matching grant schemes. The report looks at the how and why of an instrument that has been used in more than 100 Bank Group projects since the 1990s.

Matching grants are short-term, temporary subsidies, provided to the private sector on a cost-sharing basis (typically 50 percent). The grants generally aim at building firms’ capacity and knowledge through the procurement of business development services (BDS), which include a wide variety of non-financial services such as employee and management training; consultancy and advisory; marketing and information services; and technology development and diffusion. For example, a matching grant initiative in Uganda targets businesses in priority sectors such as tourism, agribusiness and fisheries with the goal of diversifying their products and increasing exports. A similar facility in Afghanistan operates in four cities – Kabul, Mazar-e-Sharif, Jalalabad and Herat – and helps SMEs and business associations to improve product quality and processing technologies, and to gain market knowledge in order to expand their presence in domestic and international markets.

The economic rationale for subsidies to private firms is usually a perceived underinvestment in BDS. This could be due to market failures preventing a profitable investment in such services (e.g., lack of financing for intangible activities, insufficient awareness of the potential benefits or perceived high risk), or to positive externalities from an otherwise unprofitable private investment (e.g., knowledge spillovers). If these conditions are not present, however, matching grants could create distortions in resource allocation, could have limited additionality and spillovers, or could have non-durable impacts if they fail to address the underlying market failure.

The Trade & Competitiveness report reviewed virtually all matching grant projects financed by the Bank Group over the last two decades. Most of these have focused on SME development while some have also supported rural development. Over half of the reviewed projects are in Africa, followed by Latin America and the Caribbean. The average size of matching grant schemes is $11.5 million, with grants for agriculture projects typically being significantly larger than for SME development. The average number of beneficiaries per project is 450 and the average maximum cumulative funding going to a single beneficiary is $112,000, although this amount is much lower in many projects.

In terms of how, the report examines a number of common variables of matching grant projects, such as type of implementing agency and eligibility criteria. A key conclusion is that there appears to be no obvious correlation between the design features of matching grants and either positive or negative outcomes. Rather, matching grants need to be tailored to local circumstances and capacities.

The report does find that personalized technical assistance to beneficiary firms can increase the odds of success. In addition, contrary to perceptions, public implementing agencies generally outperform private consulting firms. Public agencies do particularly well in lower income countries where procuring large international contracts can be difficult and where the agencies know the local context. Whether public or private, strengthening of local capacities, broad stakeholder engagement, and transparent communication increase the chances that a matching grant will achieve its goals.

In terms of why, the report also examines how projects define what constitutes a successful outcome.  About three quarters of the reviewed projects received a positive outcome rating. However, the definition of success varied widely, and rarely reflected measures of broad and sustainable economic benefit. Projects should articulate a sound economic rationale identifying a specific market failure. Otherwise, the benefits of a grant may not extend beyond the recipient firm or be sustainable in the long term.

For this reason, the report recommends that, when considering the use of matching grants, development practitioners identify a clear economic rationale, consider alternative instruments, carry out an economic analysis, assess the potential for additionality and spillovers, and establish a realistic exit strategy that would leave sustainable benefits. A strong monitoring and evaluation system is an equally important requirement and an essential tool for real-time assessment of impact, potential course corrections and learning. Strengthening these elements could help development practitioners and their clients maximize the benefits of this potentially powerful tool for private sector development and competitiveness.

To gain access to the full report, click here.


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