In Mozambique in 2003, it took an entrepreneur 168 days to start a business. Today, it takes only 19 days. That kind of transformation has major implications for ambitious men and women who are seeking to make a mark in business, or, as is often the case in Africa, seeking to move beyond a life in agriculture. In economies with sensible, streamlined regulations, all it takes is a good idea, and a couple of weeks, and an entrepreneur is in business.
This week, the World Bank Group launched its annual Doing Business 2016 report, which benchmarks countries based on their progress undertaking business reforms that make it easier for local businesses to start up and operate.
For the second straight year, Singapore topped the list, with New Zealand, Denmark, the Republic of Korea, and Hong Kong SAR, China, coming in closely behind.
In the developing world, standouts included Kenya and Costa Rica, both of which rose 21 positions; Mauritius, Sub-Saharan Africa’s top-ranked economy; Kazakhstan, which moved up 12 places to rank 41st among all countries; and Bhutan, which topped South Asia’s list of reformers. In the Middle East and North Africa, 11 of the region’s 20 economies achieved 21 reforms despite the challenges caused by a number of civil and interstate conflicts.
The reforms tracked by Doing Business are implemented by governments, but the results show up most in the private sector, which is critical to driving a country’s competitiveness and to creating jobs. Ensuring an enabling environment in which the private sector can operate effectively is an important marker of how well an economy is positioned to compete globally.
For those of us working with governments to help improve their investment climates – and to create a policy environment in which business regulatory costs are reasonable, access to finance is open, technology is shared, and trade flows within and across borders – the real work begins long before the Doing Business rankings are published.
In the World Bank Group’s Trade and Competitiveness Global Practice (T&C), our mandate is to work with developing countries to unleash the power of their private sector for growth. Much of this work involves reforms in the very areas measured in the Doing Business report: starting a business, dealing with construction formalities, or trading across borders, among other factors.
Our experience working with clients confirms one of this year’s key findings: Regulatory efficiency and quality go hand-in-hand. A good investment climate requires well-designed regulations that protect property rights and facilitate business operations while safeguarding other people’s rights as well as their health, their safety and the environment.
It is 8 AM. The winter sun begins to appear over the gray-green mass of trees above the village of Tritriva in Madagascar’s central highlands. The courtyard of a stone church is already filled with women, many holding still-sleeping children in their arms. They have assembled for the first time in two months to receive a cash payment from the Malagasy state.
The women are poor and all live on less than $2 per day. The money they receive from the government amounts to about a third of their cash income for the two months in between each payment: it will go a long way in helping them support their families for the rest of the winter.
Initiated by the Madagascar government, with support from the World Bank, the payments are part of a new program implemented by the Fonds d'Intervention pour le Développement (FID) to combat poverty in rural Madagascar and provide sustainable pathways to human development.
This is a group that is in a transition period from childhood to adulthood. Since this period (ages 15-24) affects adulthood more directly than childhood, youth-related data can provide insights into how we can better address their future opportunities and challenges.
"The potential possibilities of any child are the most intriguing and stimulating in all creation."
– Ray Wilbur, American educator
Where are the highest concentrations of young people?
In 2013, people who were born between 1989 and 1998 accounted for 17% of the world's total population – 1.2 billion. While the world's population continues to grow, the youth population has declined gradually after it peaked in 2010. The youth population in high-income countries decreased by 6 million between 2010 and 2013, a reflection of the aging population trend in this income group.
October 16 is World Food Day, a day when people come together to declare their commitment to eradicate hunger within a lifetime.
Many school-age children across the globe depend on school feeding programs for morning and mid-day meals. School feeding programs incentivize parents to keep children in school and provide students the essential nutrients to stay healthy and able to learn.
Albert Einstein once said: “The only source of knowledge is experience.” For years I have wondered about this. Surely you can understand something without actually having done it. After all, mankind’s understanding of the vast universe is greater than what can be directly experienced, and some of it is derived from theoretical reasoning. I was on my way to the 2018 Africa Carbon Forum to share fiscal policy lessons under the CAPE program and the debate was still raging in my head when I arrived at the UN campus in Nairobi Kenya.
In a video shown at the UN Climate Leadership Summit on Sept. 23, 2014, German Chancellor Angela Merkel talks about her country's support for carbon pricing and how it can drive low-carbon growth.
For any macroeconomist concerned about growth in nations, economic convergence---the catch-up of less developed economies with the mature industrialized ones---is the ultimate dream. The basic premise behind the notion of convergence gas been around for at least a half century, following on Robert Solow's groundbreaking work on the dynamics of economic growth. Alas, convergence, at least as commonly understood by the profession, has remained elusive for the majority of developing countries in the world.
It is often in the wake of conflict and political crises that nations face their greatest challenge – the road to recovery. It is in these tenuous moments, where countries wish to look forward and emerge anew that they often need the most help. Over the years, it has been the World Bank Group’s purview to provide such support, coordinating a common platform for government and international efforts towards recovery and peacebuilding. This work often begins with a needs assessment, known as a Recovery and Peacebuilding Assessment (RPBA), a joint approach of the United Nations (UN), European Union (UN) and the World Bank (WB) to help countries identify and prioritize recovery and peace building activities. This is done by focusing on the conflict and security situation and a thorough understanding of the social, political and economic drivers of the crisis.
Thousands of young entrepreneurs from 43 countries across the world took part in a series of online and onsite dialogues as part of the Road to Lima 2015 activities. The inclusion of youth in such an important process was possible thanks to the World Bank Group and the Young Americas Business Trust (YABT).
It has been almost four years since I first became involved with the regional public-private dialogue initiative, the Caribbean Growth Forum (CGF). In June 2012, I walked into the conference room at University of the West Indies, Mona Campus for the Launch of the first phase of the initiative and there was something electric in the air. It was new and fresh, but old fears lingered; was this to become 'just another regional talk-shop?'
Wide-eyed and optimistic I was determined that for my small part it wouldn't turn out that way.