Since childhood, Gircilene Gilca de Castro dreamed of owning her own business, but struggled to get it off the ground. Her fledgling food service company in Brazil had only two employees and one client when she realized she needed deeper knowledge about what it takes to grow a business. To take her business to that next level, she found the right education and mentoring opportunities and accessed new business and management tools.
A new study was recently carried out by the Water and Sanitation Program (WSP) of the World Bank on how to unlock the potential of Information and Communications Technology (ICTs) to improve Water and Sanitation Services in Africa. According to a Groupe Speciale Mobile Association (GSMA) report, in 2014 52% of all global mobile money deployments were in Sub Saharan Africa and 82% of Africans had access to GSM coverage. Comparatively, only 63% had access to improved water and 32% had access to electricity. This early adoption of mobile-to-web technologies in Africa provides a unique opportunity for the region to bridge the gap between the lack of data and information on existing water and sanitation assets and their current management — a barrier for the extension of the services to the poor.
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.
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.
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.
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.
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:
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.
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.
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.
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, 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), Freelancer.com, 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.
Digital 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 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.