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Global Financing Facility and a new era for development finance

Tim Evans's picture

This week at the Third International Financing for Development Conference in Addis Ababa, we’ve seen the birth of a new era in global health financing.
The World Bank Group, together with our partners in the United Nations, Canada, Norway, and the United States, just launched the Global Financing Facility in support of Every Woman Every Child.  It’s hard to believe it’s been less than 10 months since the GFF was first announced at the 2014 UN General Assembly by World Bank Group President Jim Yong Kim, UN Secretary-General Ban Ki-moon, Prime Minister Stephen Harper of Canada and Prime Minister Erna Solberg of Norway.  We’re grateful to the hundreds of representatives from developing countries, UN agencies, bilateral and multilateral development partners, civil society and the private sector who have contributed their time, ideas, and expertise to inform and shape the design of the GFF to get it ready to become operational.   

​Housing the next generation of Kenya’s leaders: A PPP that makes the grade

Evans Kamau's picture
Many university students learn Newton’s third law: for every action, there is an equal and opposite reaction. At one Kenyan university, two very positive actions – narrowing the backlog of students admitted after high school graduation, and a 2002 government bill declaring free primary education for all – led to the nation’s first public-private partnership (PPP), a most unexpected reaction. 
Existing student hostel at Kenyatta University

Kenyatta University (KU) has 50,000 students, and because of the national momentum on education, enrollment is expected to increase to 70,000 in the next two years. The only problem with this huge step forward has been housing all of these new students; currently, the university’s 22 hostels house only about 10,000 undergraduate students. KU’s status quo-shattering PPP will result in housing for 10,000 more students, at the same time marking it as the first public institution to deliver a PPP project under Kenya’s Public Private Partnership Act of 2013. 
For the 10,000 graduate and undergraduate students who will now be able to live on campus, this PPP earns an “A” for a different reason – it’s the first time these students will have access to regulated, fairly priced accommodations with no commute or accompanying transportation charges to class. And by living on campus, these students can safely study long into the night at the library and other university facilities – which is critical to the intellectual development of this next generation.
The right time + the right partner + the right place = the right PPP
Until recently, Kenyan students graduating from high school were typically forced to wait two years before registering at universities, due to backlogs created in the late 1990s as a result of student unrests and lecturer strikes that led to long closures of educational institutions. In the past few years, however, the University Joint Admission Board, working through government, decided to reduce the backlog by one year.  Numbers tell the rest of the story: nationwide, university student enrollments grew from 96,000 to 160,000 in 2015.  In addition, the free primary education introduced in 2002 tripled the number of students in primary schools, which also energized enrollment. Predictably, these two positive developments stressed the capacity of university facilities, and Kenyatta University has been struggling to meet the need for students’ accommodation.

Global Financing Facility ushers in new era for every woman, every child

Melanie Mayhew's picture
A New Era for Every Woman, Every Child

This week in Addis Ababa, Ethiopia, during the Third International Financing for Development Conference, the United Nations, along with the World Bank Group, and the governments of Canada, Norway and the United States, joined country and global health leaders to launch the Global Financing Facility (GFF) in support of Every Woman Every Child. Partners announced that $12 billion in domestic and international, private and public funding had already been aligned to country-led five-year investment plans for women’s, children’s and adolescents’ health in the four GFF front-runner countries: Democratic Republic of the Congo, Ethiopia, Kenya and Tanzania.

From Tirole to the WBG Twin Goals: Scaling up competition policies to reduce poverty and boost shared prosperity

Anabel Gonzalez's picture
The role of policies that ensure and promote competition in the marketplace have moved to the forefront of economics and the development agenda. The Australian G20 presidency highlighted competition as one of the four policy areas for the growth agenda. India’s prime-minister Modi has placed competition on his transformational reform agenda, and The Economist recently emphasized the lack of competition as a source of low productivity among Latin American firms. Jean Tirole, who won the latest Nobel Prize for his analysis of market power and regulation, demonstrated how competition policies can spur powerful firms to become more productive and can give smaller firms more opportunity to thrive.

To respond to client demand at this crucial moment for economic development, the World Bank Group is generating knowledge to better understand the links among competition, growth and shared prosperity, and to develop policies that promote competition. Last week, at a Bank Group event, held jointly with the Organization for Economic Cooperation and Development (OECD), experts and practitioners discussed the growing body of empirical evidence on these matters. Representatives from the WBG’s client countries, in turn, shared how WBG competition policy tools are leveraging their development impact.

Competition in the marketplace matters for economic growth and household welfare for two reasons:
  • First, it fosters more productive firms and industries, allowing domestic firms to become more competitive abroad and to export more. A WBG study shows that substantially increasing competition in Tunisia would boost labor productivity growth by 5 percent.
  • Second, it protects poorer households from paying too much for consumer goods, and from missing out on the benefits of trade liberalization. In Mexico, lack of competition costs the poorest households 20 percent more than richest households. In Kenya, poverty could fall by 2 percent if competition was more intense in the maize and sugar markets.

Competition is restricted by businesses practices that undermine competitive dynamics. When firms agree to fix prices, empirical evidence reveals that consumers pay on average 49 percent more, and 80 percent more when cartels are strongest. Developing economies are still frequently marked by regulations that restrict the number of firms or limit private investment; rules that increase business risks and facilitate agreements among competitors; and rules that discriminate against certain competitors or affect competitive neutrality. When new retail firms are allowed to enter the market, real household income increases by 6.2 percent.

'Fish Queens' in Africa

Jingjie Chu's picture
A woman cleans a fish while carrying her child on her back in Ghana. © Andrea Borgarello/World Bank
​​Intriguing, I thought when I first heard the phrase. In Ghana’s small-scale fisheries, the 'Fish Mommy' or 'Fish Queen' is the matriarch of the fish landings. She also doubles as the local authority on all post-harvest operations, exercising a great deal of control over the local market by setting the prevailing price of that day’s fresh catch every morning on the docks of coastal communities in Ghana.

Obrigado, Brasil!

Clive Harris's picture
Paving a highway in Brazil. In 2014, Brazil's
 infrastructure investment commitments
​drove an overall global increase.
In March we released the update from the Private Participation in Infrastructure (PPI) Database for the first six months of 2014, covering investment activity in energy, transport, and water and sanitation. The good news of a rebound of investment commitment from a decline in 2013 was noteworthy, alongside the heavy concentration of activity in Brazil.
The PPI Database’s 2014 full year update for these sectors has just been released, and it confirms the trends we began tracking for the first six months. Total investment in infrastructure commitments for projects with private participation in the energy, transport, and water and sanitation sectors increased six percent to $107.5 billion in 2014 from levels in the previous year. The total for 2014 is 91 percent of the five-year average for the period 2009-13, which is the fourth-highest level of investment commitment recorded – exceeded only by levels seen from 2010 through 2012. 
This increase over 2013 was driven largely by activity in Brazil. Without Brazil, total investment commitments would have fallen by 18 percent, from $77.2 billion in 2013 to $63.4 billion in 2014.  Although this is lower than H1 2014 (57%), Brazil’s large stake is a continuation of a recent trend.
The Latin America and the Caribbean (LAC) region saw $69 billion of investment commitments, or nearly 70 percent of the total for 2014. Three of the top five countries by investment commitments in 2014 were from LAC.  The top five, in order, were Brazil, Turkey, Peru, Colombia, and India. 

Flexibility, opportunity and inclusion through online outsourcing jobs

Cecilia Paradi-Guilford's picture
What is online outsourcing, and how could countries leverage it to create new jobs for youth and women? Those are questions we will help answer as part of an upcoming report and toolkit.

The World Bank, in collaboration with our partners at the Rockefeller Foundation, recently met with government agencies and other key stakeholders, as well as the online work community in Kenya and Nigeria, to discuss these issues. Online workers from these countries also presented their stories, including the highly inspirational story of Elizabeth, a retiree who was able to take in an orphan and provide for her schooling, as well as afford a lifestyle upgrade because of her online outsourcing work.
Elizabeth supports her
family through online work.

Elizabeth, 55, originally worked as a stenographer. Her husband died in 2003, and she is the sole breadwinner for three of her own children and one other orphan who she has informally adopted. She works online on writing platforms, and is currently being on- boarded to start work with CloudFactory. At the moment, she earns between US$50–80 per week working online; this is her the sole source of income, from which she pays her family’s rent, living expenses and short-term loans.

“I lost my husband in 2003, so I am the mother and the father," Elizabeth says. "I am self-sufficient. Online work does not confine me to an 8-5 time frame. I can work at my convenience, and I can manage my own home while I work.”

Online outsourcing (OO) is providing this kind of flexibilty and earning potential to millions of people around the world. OO generally refers to the contracting of third-party workers and providers (often overseas) to supply services or perform tasks via Internet-based marketplaces or platforms. Popular platforms include Elance-oDesk (now known as Upwork),, CrowdFlower and Amazon Mechnical Turk. The industry’s global market size is projected to grow to US$15-25 billion by the year 2020, and could employ at least 30 million active workers from all over the world.

Closing thoughts on the "Harnessing Digital Trade for Competitiveness and Development" conference

Rosanna Chan's picture

Fiber optic light bokeh. Source - x_tineDigital entrepreneurs have the potential to connect to global markets like never before. Whether selling physical goods on internet platforms, or providing digital goods and services that can be downloaded and streamed, an entirely new ecosystem of innovative micro and small businesses has emerged in the developing world.
The World Bank Group hosted some of the pioneers in this space for a full-day conference on Harnessing Digital Trade for Competitiveness and Development on May 19. Here, we heard entrepreneurial success stories—an online platform for jewelry in Kenya, a provider of software solutions in Nepal, an online platform for livestock trade in Serbia—and dove into the constraints and challenges of running a digital business in an emerging economy.
The scope of these challenges made these success stories, and the broader potential they represent, even more inspiring. From internet connectivity to logistics, from financial payments to trade regulations, from bankruptcy laws to entrepreneurial and consumer digital literacy-- clearly, more needs to be done to fully harness the potential of digital trade for competitiveness and development and to foster an enabling environment to digital trade.

Justice in Kenya: measuring what counts

Nicholas Menzies's picture
Chief Justice Willy Mutunga and Chief Registrar of the Judiciary Anne Amadi sign the Understandings after the launch of the Performance Management and Measurement report in Nairobi, Kenya.

“You cannot solve a problem you haven’t fully understood.” – Chief Justice Mutunga, April 15, 2015
It’s difficult to know whether you’re succeeding in any institution – public or private – if you don’t set targets and collect data to measure progress against them. Courts are no different.
The Kenyan Judiciary has been making great strides in performance management. A ceremony at the Supreme Court in Nairobi last month was the latest step. Chief Justice Willy Mutunga signed “Performance Measurement and Monitoring Understandings” with the heads of Kenya’s courts.

These commit each court to targets such as hearing a case within 360 days, delivering judgments within 60 days of the end of a trial, and delivering a minimum number of 20 rulings a month. 

How does accessibility re-frame our projects?

Tatiana Peralta Quiros's picture
The increasing availability of standardized transport data and computing power is allowing us to understand the spatial and network impacts of different transportation projects or policies. In January, we officially introduced the OpenTripPlannerAnalyst (OTPA) Accessibility Tool. This open-source web-based tool allows us to combine the spatial distribution of the city (for example, jobs or schools), the transportation network and an individual’s travel behavior to calculate the ease with which an individual can access opportunities.

Using the OTPA Accessibility tool, we are unlocking the potential of these data sets and analysis techniques for modeling block-level accessibility. This tool allows anyone to model the interplay of transportation and land use in a city, and the ability to design transportation services that more accurately address citizens’ needs – for instance, tailored services connecting the poor or the bottom 40 percent to strategic places of interest.

In just a couple of months, we have begun to explore the different uses of the tool, and how it can be utilized in an operational context to inform our projects.
Employment Accessibility Changes in Lima,
Metro Line 2. TTL: Georges Darido

Comparing transportation scenarios
The most obvious use of the tool is to compare the accessibility impacts of different transportation networks. The tool allows users to upload different transportation scenarios, and compare how the access to jobs changes in the different parts of the city. In Lima, Peru, we were able to compare the employment accessibility changes that were produced by adding a new metro line. It also helped us understand the network and connectivity impacts of the projects, rather than relying on only travel times.

Understanding spatial form
However, the tool’s uses are not limited to comparing transport scenarios. Combining the tool with earth observation data to identify the location of slums and social housing, we are to explore the spatial form of a city and the accessibility opportunities that are provided to a city’s most vulnerable population.  We did so in Buenos Aires, Argentina, were we combined LandScan data and outputs from the tool to understand the employment accessibility options available to the city’s poorest population groups.