Photo: Northern Beaches Hospital | New South Wales Ministry of Health
The way that social infrastructure is being built and paid for is changing. New healthcare facilities, prisons, and public housing have long been constructed under public-private partnerships (PPPs), but the PPP model is now stretching into the operation of the facilities.
Called “operator-led PPPs”, this approach puts the private sector in charge not just of the construction of infrastructure but of the operation of services afterwards for a defined period. For instance, in a hospital PPP the private company would provide clinical services such as x-rays as well as the building. This is also known as an outcomes-based PPP.
This approach transfers operational risks from the state body to the private partner, but the state still retains oversight of the quality of service through key performance indicators, service criteria, and performance standards. Financial penalties are put in place for failure to meet the required standards.
Photo: Pixabay Creative Commons
Solar power is experiencing a surge in popularity across the globe. It prevents carbon emissions, helps diversify the power generation mix, reduces dependence on fossil fuels, and can increase off-grid energy access.
With falling costs of solar photovoltaic (PV) technology, advancing storage technology, and grid integration, prices for solar PV electricity have been falling rapidly around the world and solar is now in many countries price competitive with traditional energy sources and has become particularly attractive for developing countries.
Photo: Burst | Pexels Creative Commons
Australia’s involvement in the Global Infrastructure Facility (GIF)—as a founding member, and co-chair of the advisory council over the past year—underscores our commitment to lift investment in global infrastructure, which is a critical component to ensuring economic growth and poverty alleviation.
Strong economic infrastructure underpins human development, enables movement of people and goods, provides access to and expands markets and services, facilitates innovation, and enhances competitiveness.
Photo: Dylan's World / Flickr Creative Commons
A decade before the financial crisis, Australia was a bastion of infrastructure successes. The country’s four major airports (Melbourne, Perth, Brisbane and Sydney) were privatized. Numerous greenfield projects were also launched, for example, extensive highway construction, and new projects were continually added to the pipeline.
Some of these new projects, however, faced significant difficulties: some were constructed without robust performance data, leading to overambitious forecasting and overaggressive financial structures. In part, this led Australia to suffer multiple high-profile defaults and brought the country’s infrastructure project pipeline to a halt.
But, The state’s economic growth has reached 3.5%, outstripping the country’s average rate of 2.8%, and even the G20 average (which stands at 3%). As such, NSW’s infrastructure model has likely had a multiplier effect on economic activity—and has been identified as a potential playbook for other jurisdictions.
Fire has been a part of India’s landscape since time immemorial. Every year, forest fires rage through nearly every state, ravaging more than half of India’s districts. Today, with growing populations in and around the forests, these fires are putting more lives and property at risk. Indian Space Research Organization estimates that in 2014 alone, nearly 49,000 sq.km of forests - larger than the size of Haryana – were burned during the peak fire months of February to May. And, this was a mild year compared to the recent past!
But, forest fires can also be beneficial. They play a vital role in maintaining healthy forests, recycling nutrients, helping trees to regenerate, removing invasive weeds and lantana, and maintaining habitat for some wildlife. Occasional fires can also keep down fuel loads that feed larger, more destructive conflagrations. However, as populations and demands on forest resources grow, the cycle of fires has spun out of balance, and the fires no longer sustain forest health. In fact, in many countries, wildfires are burning larger areas, and fire seasons are growing longer due to a warming climate.
The social inclusion of disadvantaged groups is necessary for reducing poverty and boosting shared prosperity, said government representatives, experts, and civil society representatives at a World Bank seminar on Friday, April 21. Persons with disabilities, Indigenous Peoples, as well as lesbian, gay, bisexual, transgender, and intersex (LGBTI) persons form a large part of the world population affected by poverty. They often face multiple discrimination and exclusion because of their overlapping identities, stressed Maitreyi Das, Social Inclusion Global Lead at the World Bank Group.
Patricia Peña, Director General for Economic Development of Global Affairs, Canada, highlighted the commitment of Canada—through its foreign assistance, diplomacy, and domestic efforts—to support policies and programs addressing economic and social inclusion of LGBTI people. Disaggregated data collection is one of the priorities for developing effective responses. Harry Patrinos, Practice Manager at the Bank’s Education Global Practice, made a cross-country assessment of poverty among Indigenous Peoples. Ulrich Zachau, the World Bank’s Country Director for Southeast Asia, discussed the Bank’s ground-breaking data generation efforts on LGBTI persons in Thailand. There is a need to find a shared way of measuring disability, said Nick Dyer, Director General of Policy and Global Programmes at the UK Department for International Development.
View tweets from the session below. Learn more about the World Bank's work on social inclusion, disability, indigenous peoples, as well as sexual orientation and gender identity (SOGI).
Performance budgeting (PB) has a deep and enduring appeal. What government would not want to allocate resources in a way that fosters efficiency, effectiveness, transparency, and accountability? However, such aspirations have proven poor predictors of how performance data are actually used.
The potential benefits of identifying and tracking the goals of public spending are undeniable, but have often justified a default adoption of overly complex systems of questionable use. Faith in PB is sustained by a willingness to forget past negative experiences and assume that this time it will be different. Without a significant re-evaluation, PB’s history of disappointment seems likely also to be its future.
Photo Credit: Myxi via Flickr Creative Commons License
In our last post, we highlighted a few examples of the innovative organizational structures that institutional investors have created to more efficiently invest in public infrastructure assets, but that is just one side of the equation. We also study programs and policies put in place by governments to more efficiently facilitate investment in the right projects and on the right terms for their constituents. That research encompasses several different topics, including enabling legislation, project risk allocation, stakeholder engagement and management, assessment frameworks for determining whether a Public-Private Partnership (P3) makes sense for a given project and others.
"We’re the nation that just had six of our scientists and researchers win Nobel Prizes—and every one of them was an immigrant," U.S. President Barack Obama recently said after the Nobel Prize winners were announced.
The Internet was abuzz about it, and how could it not be?
The announcement couldn’t come at a better time. Not only are US Nobel laureates immigrants, but also the country has been identified as one of four where the world’s high-skilled immigrants are increasingly living, according to a new World Bank research article. The other three countries are the United Kingdom, Canada and Australia.
Will cash and checks still exist 15 or 20 years from now given the increasing digitization of money? Is the smartphone our new bank? Will many people working in the financial sector industry lose their jobs due to growing use of technology, robots, algorithms, and online banking? Is financial technology (FinTech) the solution to providing financial services to the 2 billion people in the planet that still lack access to finance? Will digital currencies and other innovative FinTech products pose systemic risks in the future? What is the best approach to regulate FinTech companies?