How large is the share of public procurement to GDP in middle-income and low-income countries and how it is evolving? If sizable, can public procurement be used as a policy tool to make markets more competitive, and thus improve the quality of government services? Can it be used to induce innovation in firms? Can it also be a significant way to reduce corruption?
The demographic clock is ticking on both sides of the Mediterranean, from an aging workforce at one end to a workforce surplus on the other. Yet, whatever the demographic dynamics, the Mediterranean area is facing an incredible challenge, that of providing a safe, buoyant and prosperous future for its youth, one which would benefit its societies, their economic development, and progress.
Every high school student in North America understands the importance of what they do during the summer break. Whether it’s working for the minimum wage at a restaurant or waking up early for an internship, the colleges they apply to will evaluate the commitment and effort they put into work experience. Chances are that colleges—and future employers—won’t be very impressed if students spent the whole summer doing nothing.
This year, I was given the incredible opportunity of a summer internship at the headquarters of the World Bank Group in Washington, DC, researching the different levels of investment that countries in the Middle East and North African (MENA) have made in Early Childhood Development (ECD). As a result, I gained insights into development issues I would not otherwise have been aware of, nor would I have had any idea of how to go about making improvements.
In Part II of her interview, Safaa El Tayeb El-Kogali, World Bank Practice Manager for Education, explains the initiatives being take to improve all levels of public education in the Middle East and North Africa (MENA), and how important it is for children to be able to go to school, especially when their countries are affected by conflict.
With the school year starting in the Middle East and North Africa (MENA), millions of children are busily preparing to resume their studies. Some, caught in conflict, may not be able to go to school at all; others may be joining schools in countries neighboring their own. At peace or in war, throughout MENA more emphasis is being placed on early education and care. World Bank Practice Manager for Education, Safaa El Tayeb El-Kogali, co-authored a study on Early Childhood Development (ECD) in 2015, which found that, with a few exceptions, the Middle East and North Africa (MENA) was faring poorly.
Market access is critical to the growth of start-ups in the Middle East and North Africa (MENA). Start-ups seeking to scale up their operations need to think in terms of regional, rather than solely national, growth strategies from day one. However, maneuvering themselves into new countries is a complex process, and one that hinges on finding the pathways, people, and partners for market expansion.
Earlier this year, the Metropolitan Policy Program and the Center on Children and Families at Brookings released a study on multidimensional poverty and race in America. The study shows why it’s important to look at poverty through the dimensions of low household income, limited education, lack of health insurance, concentrated spatial poverty, and unemployment, and why we should consider ways to de-cluster and reduce the links between them.
55 is the magic number. Sure - 175 parties (174 countries plus the European Union) signed the Paris Agreement in April in New York City earlier this year. But this alone is not enough. It matters not only how many countries signed the document, but also how many countries ultimately join the Paris Agreement by ratifying it.
Gulf banking markets may have entered an important phase of consolidation, with the potential to dramatically reshape both the role and the intermediation capacity of the industry. A few days ago, two large banks in the UAE, National Bank of Abu Dhabi and First Gulf Bank, agreed on a tie-up to create a national champion and regional powerhouse with $170 billion in total assets. In Oman, Bank Sohar and Bank Dhofar are in advanced merger talks. Bank mergers are expected to take place in Bahrain and Qatar as well.
The protracted downward trend in oil prices is threatening economic growth and fiscal sustainability in the region. This is having an impact on the banking systems. Banks are increasingly facing pressure on liquidity in the face of both private and public deposit outflows. This coupled with a low interest rate environment in the context of pegged currencies is eroding margins. Capital buffers are strong yet asset quality may deteriorate if oil prices remain low for a prolonged period and economic growth decelerates further. Therefore, in a context largely characterized by fragmented markets, consolidation may help achieve efficiency gains and ultimately preserve financial stability.
However, it is important that banking consolidation in the Gulf does not come at the detriment of competition. International experience shows that healthy bank competition generally promotes access to finance and improves the efficiency of financial intermediation, without necessarily eroding the stability of the banking system. Bank competition in the region is traditionally weak largely due to strict entry requirements, restrictions to bank activities, relatively weak credit information systems, and lack of competition from foreign banks and nonbank financial institutions. While increased market concentration does not necessarily imply greater market power, there is a risk that the current and prospective wave of industry consolidation may have long-lasting negative effects on competition if left unchecked.