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Mozambique

Can Mozambique use its booming energy sector to create jobs?

Channing Arndt's picture
Despite a decade of strong economic growth, the rate of formal sector job creation in Mozambique has been weak. But what impact will the recent large investments in the country’s oil and gas sector have on the employment outlook? Channing Arndt from UNU-Wider argues that there will not be many direct jobs created as a result of this boom, especially past the first investment phase. But there is a great opportunity for jobs to be created in ancillary services and support sectors, as well as those benefitting from the overall improvement in the country’s infrastructure.

Lessons on Forests from Brazil to Ethiopia and Mozambique

André Rodrigues de Aquino's picture
Photo by Andrea Aquino / World Bank​Can Ethiopia and Mozambique learn a lesson from Brazil on harnessing forests sustainably for economic growth?
 
Thanks to a recent knowledge exchange program, yes!
 
As we can all imagine, Africa’s lush greenery and planted forests offer huge potential but the sector’s expansion faces major barriers like access to land, lack of access to affordable long-term finance and weak prioritization of the sector.
 
Take Ethiopia, for example. About 66.5 million cubic meters of the country (46% of total wood-fuel demand) is subject to non-sustainable extraction from natural forest, wood- and scrublands, resulting in deforestation and land degradation. In Mozambique, charcoal is still produced from native forests, leading to immense pressure on natural resources, and way beyond its regeneration capacity. Both countries want to know how the forest sector can contribute to their national development plans and help grow their economies and reduce rural poverty, while being environmentally sustainable.
 
This topic is of even more importance as we celebrate the International Day of Forests on March 21, and helps us raise awareness on the need to preserve forests and use this natural wealth in a responsible and sustainable manner.

Mind, Society, and Behavior – and Financial Inclusion

Douglas Randall's picture

Like many World Bankers, I took some time recently to look through the newly released 2015 World Development Report “Mind, Society, and Behavior.” From my perspective, in the Finance and Markets Global Practice, one thing jumped out immediately: The report is packed with insights that are directly relevant to our work on financial inclusion.

In the Overview alone, the reader is met with an abundance of findings related to consumer protection, financial capability, savings and other key topics involving financial inclusion (grouped together under the theme of “household finance,” which is fully explored in Chapter 6). We’re told of how changes to the framing of payday-loan terms dramatically altered borrowing behavior in the Unitedc States; how embedding financial messages in an engaging television soap opera in South Africa improved the financial choices of viewers; and how SMS reminders increased saving rates in Bolivia, Peru and the Philippines.

Of course, this is not the first body of work to summarize key behavioral lessons learned from decades of careful research on financial inclusion: See, for example, Chapters 6-9 of Banerjee and Duflo’s Poor Economics or the Bank’s 2014 GFDR on Financial Inclusion.) But these examples do help drive home the key message of the report: Paying attention to how people think, and to how history and context shape their thinking, can improve the design and implementation of development policies and interventions that target human behavior.

The report highlights that psychological impulses such as present bias, loss aversion and cognitive overload can lead to poor financial decision-making. For those in or on the edge of poverty, the ramifications of these poor decisions – low savings, chronic over-indebtedness, investment shortsightedness – can be devastating. We are reminded that most adults in developing economies do not benefit from the sophisticated financial tools such as automatic salary deposits, mandatory retirement contributions, or default insurance programs that help mitigate the effects of automatic thinking.

Yet, as outlined in Chapter 6, there are a range of interventions that have been shown to help address behavioral constraints on financial decisions in a developing-country context. Many of those interventions take advantage of what we know about the natural processes of the mind, using techniques such as framing, default settings and emotion persuasion to nudge people toward better financial decisions.

Leveling the Playing Field from the Start: The Power of Early Childhood Development

Claudia Costin's picture


Today, I had the pleasure of participating in a keynote discussion at the Education World Forum in London--a large annual gathering of education decisionmakers from around the world. We focused this morning on how to use and translate data generated by education systems into better policies and effective results.

My fellow panelists which included Baroness Lindsay Northover, Parliamentary Undersecretary of State at the UK’s Department for International Development, and Professor Eric Hanushek from Stanford University, made excellent points about the link between education outcomes and economic growth. They also spoke about the ways to reach the 58 million children from marginalized communities who remain out of school.
 
I chose to focus on investments in the youngest children, from birth to age 5, before they even enter primary school.

Working in Urban Water? IBNET Can Help.

Alexander Danilenko's picture

If you are working on an urban water project, what information do you need?  You likely want to know what your project’s water utility knows. How else can you start talking to each other to have a productive discussion, using the same language and standards?

Investing in the Poor through Extractives Industries

Shilpa Banerji's picture
 © Jonathan Ernst/World Bank

 
As newly resource-rich countries grapple with how to manage their resources well, questions arise on how governments can channel natural resource revenues into smart investments, as well as lessons learned from past experiences. At a Flagship event preceding the Annual Meetings, panelists came together to discuss “Making Extractives Industries’ Wealth Work for the Poor.”

If managed well, revenue from resources such as oil and gas in Tanzania and Mozambique, iron ore in Guinea, copper in Mongolia, gas and gold in Latin America, oil, gas, bauxite and gold in Central Asia, can contribute to sustainable development. When poorly handled they can present long-term challenges for governments, communities and the environment.

The panelists included Marinke Van Riet, International Director, Publish What You Pay; Ombeni Sefue, Chief Secretary of Government, Tanzania; Samuel Walsh, Chief Executive Officer, Rio Tinto; and Tan Sri Nor Mohamed Yakcop, Deputy Chairman, Nasional Berhad, Malaysia. The session was moderated by renowned energy expert Daniel Yergin, Vice-Chairman, IHS, and bestselling author of The Quest: Energy, Security, and the Remaking of the Modern World.

Lessons from the Field: Prepaid Water in Urban Africa

Chris Heymans's picture

Can prepaid systems become an instrument to improve access and quality of water services to poor people in African cities and towns? Or does prepayment deny poor people more access to water? Do prepaid systems cost too much and impose more technical, affordability and social pressure on service providers already struggling to cope with growing demand? And what do customers think?

Africa’s big gender gap in agriculture #AfricaBigIdeas

Michael O’Sullivan's picture


Women are less productive farmers than men in Sub-Saharan Africa. A new evidence-based policy report from the World Bank and the ONE Campaign, Leveling the Field: Improving Opportunities for Women Farmers in Africa, shows just how large these gender gaps are. In Ethiopia, for example, women produce 23% less per hectare than men. While this finding might not be a “big” counter-intuitive idea (or a particularly new one), it’s a costly reality that has big implications for women and their children, households, and national economies.

The policy prescription for Africa’s gender gap has seemed straightforward: help women access the same amounts of productive resources (including farm inputs) as men and they will achieve similar farm yields. Numerous flagship reports and academic papers have made this very argument.

Better Public Sector Projects Which Don't Matter?

Nick Manning's picture

SDM-IN-042 World Bank In last week’s post, I asked whether Governance and Public Sector Management (GPSM) projects are having much large scale impact. It is tempting to reduce this to the question of why don’t development projects which focus on this work more often (although their track record is perhaps not as limited as some reviews of donor assistance might suggest). From this starting point, recent thinking suggests that donor rigidity and project designs which fix the visible form without improving the underlying public management function are the problem.   
 
The remedy, as set out most prominently in “Problem Driven Iterative Adaptation” and in the World Bank’s own Public Sector Management Approach, suggests that we should focus on the de facto rather than the de jure and adapt the nature of our support as project implementation unrolls. Problem-driven iterative adaptation (PDIA) approaches are referred to in recent reforms of Ministries of Finance in the Caribbean and reform approaches in Mozambique and in Burundi. Bank interventions in Sierra Leone and in Punjab have been cited as examples of this approach in practice.


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