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A PPP to take pride in: Early education in Brazil

Tomas Anker's picture

Photo: Inova BH

In English, “Belo Horizonte” means “beautiful horizon,” and this is an apt description of the long-term possibilities for educating the children of Belo Horizonte, the sixth largest city in Brazil and capital of the state of Minas Gerais. As a Brazilian who went through the national school curriculum, I believe that this system should be accessible to all citizens, and so I took a particular interest in the goals of this public-private partnership (PPP).

Greater access to education was a widely-shared ambition among the government team as well. The Municipality of Belo Horizonte already believed that a competitive workforce – and a functioning society – depends on good schools. That’s why it made early education a top priority and sought out advisory services from our Brazil-based team to find out if PPPs could help government make the grade. It seemed like this was a proposal the community could stand behind: Demand for better education was already strong, with over 11,000 children, many underprivileged, on a waiting list to enroll in school.

Renewables, solar, and large size projects trending in new data on private participation in infrastructure

Clive Harris's picture



Translations available in Chinese and Spanish.

Many of you are already familiar with the PPP (Public-Private Partnerships) Group’s Private Participation in Infrastructure (PPI) Database. As a reminder for those who aren’t, the PPI Database is a comprehensive resource of over 8,000 projects with private participation across 139 low- and middle-income economies from the period of 1990-2015, in the water, energy, transport and telecoms sectors.

We recently released the 2015 full year data showing that global private infrastructure investment remains steady when compared to the previous year (US$111.6 billion compared with US$111.7 the previous year), largely due to a couple of mega-deals in Turkey (including Istanbul’s $35.6 billion IGA Airport (which includes a $29.1 billion concession fee to the government). When compared to the previous five-year average, however, global private infrastructure investment in 2015 was 10 percent lower, mainly due to dwindling commitments in China, Brazil, and India. Brazil in particular saw only $4.5 billion in investments, sharply declining from $47.2 billion in 2014 and reversing a trend of growing investments over the last five years.

Jobs: The fastest road out of poverty

Sri Mulyani Indrawati's picture

A worker at the E-Power plant in Port-au-Prince, Haiti. © Dominic Chavez/World Bank

For the first time in history, the proportion of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series, I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030:
 good governance, gender equality, conflict and fragility, preventing and adapting to climate change, and, finally, creating jobs.

Good jobs are the surest pathway out of poverty. Research shows that rising wages account for 30 to 50% of the drop in poverty over the last decade. But today, more than 200 million people worldwide are unemployed and looking for work — and many of them are young and/or female. A staggering 2 billion adults, mostly women, remain outside the workforce altogether. In addition, too many people are working in low-paying, low-skilled jobs that contribute little to economic growth. Therefore, to end poverty and promote shared prosperity, we will need not just more jobs, but better jobs that employ workers from all walks of society.

The staircase of relationships – and P2P partnerships

Malcolm Morley's picture

In my previous two blogs: Developing Public to Public Partnerships (P2Ps) that Improve Infrastructure’s Social and Economic Value and 10 tips for Implementing a Public to Public Partnership (P2P), I sought to highlight the importance of organizations working together within the public sector if they want to maximize the value from Public Private Partnerships (PPPs). Regrettably, it’s too frequently the case that the potential of the public sector to maximize the value it achieves from PPPs remains unfulfilled because of relationships within the public sector preventing or inhibiting organizations working effectively together.
 
If public sector organizations can’t develop effective partnership working among themselves, how can they maximize value from partnerships with the private sector?

Using auctions to support climate and development outcomes

Scott Cantor's picture


Auctions are ubiquitous. On any given day, somewhere in the world, bidders compete for energy, wireless spectrum, used vehicles, agricultural products—the list goes on. Auctions can help resolve uncertainties in the market, convening buyers and sellers to help them achieve the best possible price for goods or services that are otherwise difficult to value.
 
Auctions can also resolve uncertainties in the development sector, identifying the projects most likely to succeed and determining the right level of funding. To test this hypothesis in the climate arena, the World Bank has been piloting an approach to incentivize green projects in developing countries. The Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) held its second online auction earlier this month, allocating $20 million in funding directly to the private sector for projects reducing methane emissions.

How civil society and others achieved the Paris Climate Agreement

Duncan Green's picture

Michael JacobsA brilliant analysis by Michael Jacobs of the success factors behind last year’s Paris Climate Agreement appeared in Juncture, IPPR’s quarterly journal  recently. Jacobs unpacks the role of civil society (broadly defined) and political leadership. Alas, it’s over 4,000 words long, so as a service to my attention deficit colleagues in aid and development, here’s an abbreviated version (about a third the length, but if you have time, do please read the original).

The international climate change agreement reached in Paris in December 2015 was an extraordinary diplomatic achievement. It was also a remarkable display of the political power of civil society.

Following the failed Copenhagen conference in 2009, an informal global coalition of NGOs, businesses, academics and others came together to define an acceptable outcome to the Paris conference and then applied huge pressure on governments to agree to it. Civil society effectively identified the landing ground for the agreement, then encircled and squeezed the world’s governments until, by the end of the Paris conference, they were standing on it. Four key forces made up this effective alliance.

The scientific community: Five years ago the Intergovernmental Panel on Climate Change (IPCC) was in trouble. Relentless attacks from climate sceptics and a number of apparent scandals – the ‘climategate’ emails, dodgy data on melting Himalayan glaciers, allegations surrounding its chairman – had undermined its credibility. But the scientists fought back, subjecting their work to even more rigorous peer-review and hiring professional communications expertise for the first time. The result was the IPCC’s landmark Fifth Assessment Report, which contained two powerful central insights.

First, the IPCC report introduced the concept of a ‘carbon budget’: the total amount of carbon dioxide the earth’s atmosphere can absorb before the 2°C temperature goal is breached. At present emission rates, that would be used up in less than 30 years. So cutting emissions cannot wait.

The other insight was that these emissions have to be reduced until they reach zero. The IPCC’s models are clear: the physics of global warming means that to halt the world’s temperature rise, the world will have to stop producing greenhouse gas emissions altogether.

The economic community: But it was a second set of forces that really changed the argument. Since the financial crash in 2008–2009, cutting emissions had fallen down the priority lists of the world’s finance ministries. The old orthodoxy that environmental policy was an unaffordable cost to the economy reasserted itself. A new argument was required.

Tackling inequality is a game changer for business and private sector development (which is why most of them are ignoring it)

Duncan Green's picture

Oxfam’s private sector adviser Erinch Sahan is thinking through the implications of inequality for the businesses he interacts with.

Mention inequality to a business audience and one of two things happens. They recoil in discomfort, or reinterpret the term – as social sustainability or doing more business with people living in poverty. Same goes for the private sector development professionals in the aid community (e.g. the inclusive business crowd).

A good example is the UN Global Compact, which steers companies on how to implement the SDGs. They completely side-step the difficult implications of inequality on business and redefine the inequality SDG as boiling down to social sustainability or human rights / women’s empowerment goal. All good things that we at Oxfam also fight for, but these can all happen simultaneously with increasing concentration of income and wealth amongst the richest – i.e. rising inequalityWe know that rising inequality is one of the great threats to our society and economy. So why is business and the aid world so uncomfortable with tackling it head on?

Man picks tea leaves at Kitabi Tea Processing FacilityInequality is a relative rather than an absolute measure. This often makes it a zero-sum game – to spread wealth and income more equally, someone probably has to lose. But the intersection of business, sustainability and development has become locked into an exclusive focus on win-win approaches where there are no trade-offs and everyone gets their cake and eats it too. Addressing inequality often hits the bottom line – meaning changes to the prices paid to farmers, wages paid to workers, taxes paid to government and prices charged to consumers. But there is hope. Through a new lens (or metric) that should drive how business addresses inequality: share of value.

Don’t confuse this with Creating Shared Value, which is focused on the win-win (without commenting on how the created value is shared). What I’m proposing is a measure that compares businesses on how they share value with workers, farmers and low-income consumers. In fact the concept dates back to the original principles underpinning the fair trade movement some decades ago.

Stirred, not shaken: blended finance for climate action

Kruskaia Sierra-Escalante's picture
 Ivelina Taushanova / World Bank Group
Photo: Ivelina Taushanova / World Bank Group


Today, over 80 million tons of CO2 will be emitted from economies around the world. Tomorrow will be the same, as will the day after that. The emitted amounts of CO2 will likely stay in the atmosphere for hundreds, if not thousands of years, further compounding the challenges in reversing the current and expected effects of climate change.

This past December, in Paris, leaders of 195 nations of the world agreed that this trend must be reversed, signaling a historic turning point in the global fight against climate change. The Paris Agreement ratified a global consensus to limit the global average temperature rise to ‘well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels.’ Developing nations were at the forefront of this agreement, with almost every one of them setting carbon reduction goals. While the public sector will play a major role in helping achieve the ambitious targets, the sheer volume of investment required to support low-carbon energy, transportation, and agriculture projects throughout the developing world leaves a gap of hundreds of billions of dollars that only the private sector is in a position to fill.

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.


Middle-Class Heroes: The Best Guarantee of Good Governance
Foreign Affairs
The two economic developments that have garnered the most attention in recent years are the concentration of massive wealth in the richest one percent of the world’s population and the tremendous, growth-driven decline in extreme poverty in the developing world, especially in China. But just as important has been the emergence of large middle classes in developing countries around the planet. This phenomenon—the result of more than two decades of nearly continuous fast-paced global economic growth—has been good not only for economies but also for governance. After all, history suggests that a large and secure middle class is a solid foundation on which to build and sustain an effective, democratic state. Middle classes not only have the wherewithal to finance vital services such as roads and public education through taxes; they also demand regulations, the fair enforcement of contracts, and the rule of law more generally—public goods that create a level social and economic playing field on which all can prosper.
 

Humanitarian reform: What's on - and off - the table
IRIN News
As pressure mounts to come up with concrete proposals for the future of humanitarian aid, horse-trading and negotiations have begun in earnest behind the scenes in the lead-up to the first ever World Humanitarian Summit (WHS), to be held in Istanbul in May. The release this week of the UN secretary-general’s vision for humanitarian reforms marks one of the last stages in a multi-year process that has seen consultations with some 23,000 people around the world on how to improve crisis response. (See: Editor’s Take: The UN Secretary General’s vision for humanitarian reform)  Hundreds of ideas are floating around. Which are now rising to the top? And which are being pushed to the side? Here’s our take on the emerging trends:
 

"Every time I see a problem, I create a social business to solve it"

Marta Milkowska's picture

(c) Marta Milkowska“Every time I see a problem, I create a social business to solve it,” renowned Nobel Prize laureate Muhammad Yunus said to an overflowing room at the World Bank Group’s Headquarters in Washington, DC this summer. “Set up a social business.”

“The poor are like Bonsai trees,” the founder of Grameen Bank explained, “When you plant the best seed of the tallest tree in a six-inch-deep flower pot, you get a perfect replica of the tallest tree, but it is only inches tall. There is nothing wrong with the seed you planted; only the soil-base you provided was inadequate. Poor people are bonsai people. There is nothing wrong with their seeds. Only society never gave them a base to grow on."


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