In 2013, investment commitments to infrastructure projects with private participation declined by 24 percent from the previous year. It should be welcome news that the first half of 2014 (H1) data – just released from the World Bank Group’s Private Participation in Infrastructure (PPI) database, covering energy, water and sanitation and transport – shows a 23 percent increase compared to the first half of 2013, with total investments reaching US$51.2 billion.
A closer look shows, however, that this growth is largely due to commitments in Latin America and the Caribbean, and more specifically in Brazil. In fact, without Brazil, total private infrastructure investment falls to $21.9 billion – 32 percent lower than the first half of 2013. During H1, Brazil dominated the investment landscape, commanding $29.2 billion, or 57 percent of the global total.
Four out of six regions reported declining investment levels: East Asia and the Pacific, South Asia, Africa, and the Middle East. Fewer projects precipitated the decrease in many cases. Specifically, India has experienced rapidly falling investment, with only $3.6 billion in H1, compared to a peak of $23.8 billion in H1 of 2012. That amount was still enough to keep India in the top five countries for private infrastructure investment. In order of significance, those countries are: Brazil, Turkey, Mexico, India, and China.
Sector investments were paced by transport and energy, which together accounted for nearly all private infrastructure projects that were collected in this update. The energy sector captured high investment levels primarily due to renewable energy projects, which totaled 59 percent of overall energy investments, and it is poised to continue growth due to its increasing role in global energy generation.
The energy sector also had the biggest number of new projects (70), followed by transport (28), then water and sewerage (12). However, transport claimed the greatest overall investment, at $36 billion, or 71 percent of the global total.
While we need to see what the data for the second half of 2014 show, what we have to date suggests that infrastructure gaps may continue to grow as the private sector contributes less. It also suggests that, in many emerging-market economies, there is much work to be done to bring projects to the market that will attract private investment and represent a good deal for the governments concerned.
This blog was originally published on Future Development.
There are now some 9 million Syrian refugees and it is estimated that 5,000 additional refugees are created every day. Over 5 million Syrians reside in neighboring countries, principally Jordan (800,000), Lebanon (1.8 million) and Turkey (1.8 million). Europe and the West have been largely closed to these refugees with desperate boat journeys the stuff of daily news items. The crisis is not abating, and with 2 million refugees in Iraq the problem is expanding. What is clear is that many of these refugees are unlikely to be going home soon, if ever.
The SAFE Trust Fund application (Word document) is now open until 27 February 2015.
What is SAFE?
SAFE means Strengthening Accountability and the Fiduciary Environment. It is a Trust Fund group administered by the World Bank and established by the Swiss State Secretariat for Economic Affairs (SECO) and the European Commission with the aim of improving public financial management in the Europe and Central Asia region. This Trust Fund group provides support for activities to assess public financial management (PFM) performance, identify and implement actions to achieve improvements and share knowledge and good practices across countries in the region.
- public finance management
- public finance
- world bank
- Public Sector and Governance
- Private Sector Development
- Financial Sector
- Europe and Central Asia
- Macedonia, former Yugoslav Republic of
- Kyrgyz Republic
- Bosnia and Herzegovina
So what is the story about regional inequalities in Turkey?
So what is the story about regional inequalities in Turkey?
Every year, more than 1.2 million people die in traffic crashes worldwide, equivalent to nearly eight Boeing 747 plane crashes every day. As developing economies grow and private car ownership becomes more mainstream, the number of associated crashes and fatalities will continue to rise.
The challenge of traffic safety often flies under the radar in cities, where the social and economic challenges of accommodating growing populations take precedent. Without meaningful change, however, the World Health Organization (WHO) projects that traffic crashes could become the fifth leading cause of premature death worldwide by 2030. This takes a particular toll on cities, which are already home nearly half of global traffic fatalities. City leaders must prioritize traffic safety measures to ensure that their citizens have safe, healthy and economically prosperous cities to call home.
With Urban Growth Comes Traffic Safety Challenges
While there are a number of factors that contribute to traffic crashes, two of the primary challenges are rising motorization trends in cities worldwide and the issue of road equity: the most vulnerable road users, including pedestrians and cyclists, are most impacted by traffic crashes. On top of that, these users, typically lower-income, don’t always have the power or capacity to create the necessary changes.
The number of privately owned cars on the road hit the one billion mark for the first time in 2010. If we continue business-as-usual, that number will reach an estimated 2.5 billion cars by 2050. All of these new cars will lead to an increase in traffic congestion in cities worldwide, increasing the probability of traffic crashes and resulting fatalities.
One of the primary goals of the Enterprise Surveys (ES) is to provide high quality data about the business environment based on the experiences of firms. Given how little is known about the private sector in developing economies, this provides much needed information.
The recently released Turkey Enterprise Survey consists of 1344 firms across seven regions and nine business sectors. Firms interviewed for the ES are formal private firms operating in non-agricultural, non-extractive private sector with five or more employees. In this post we will focus on a few highlights for the standard ES firms.
Turkey’s bid to join the European Union (EU) may finally be getting “back on track,” according to the bloc’s top official for enlargement. And while that track may still have a number of hurdles to clear, recent research, carried out by the World Bank Group outlines several interim policy measures that could bring the sides closer together while also benefitting the Turkish economy.
Most goods already move freely between the two economies, under the EU-Turkey Customs Union established in 1995. But agriculture, as is often the case, has proved a sticking point and remains outside the Customs Union today.
A set of permanent institutions, established under the 1963 Ankara Agreement, have chipped away at agricultural trade restrictions. These have steadily provided technical support and helped to facilitate quick action when political opportunities have arisen. And today there is still opportunity to take action on agriculture—with or without becoming an EU Member State.