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Law and Regulation

In Russia, the effects of business regulations depend on differing implementation capacity

Alvaro Gonzalez's picture
 
Enforcing labor laws can impact firms' hiring decisions. Photo: Tomislav Georgiev / World Bank

"Writing laws is easy, but governing is difficult," wrote Leo Tolstoy in War and Peace. We agree.

Our recently finished study highlights how differences in the enforcement of a strict labor code across Russia’s numerous administrative regions has affected hiring and firing decisions. More specifically, we examine how the varying capacity to enforce the labor code affected labor adjustment by firms in response to industry-wide surges and slumps.

Addressing the challenge of non-standard employment

Janine Berg's picture

Janine Berg, guest blogger, is a Senior Economist at the International Labour Organization (ILO)
 

For many developing countries, the existing challenge of informality has been compounded by the challenge of non-standard employment. Photo: Maria Fleischmann / World Bank

Efforts to extend social security to workers in non-standard employment and to build a social protection floor are critical for reducing poverty and part of the challenge of addressing informal employment.

Lessons from Five Years of Helping Governments Foster Incentives Transparency

Harald Jedlicka's picture

Global competition to attract foreign and domestic direct investment is so high that nearly all countries offer incentives (such as tax holidays, customs duty exemptions and subsidized loans) to lure in investors. In the European Union, the 28 member states spent 93.5 billion euros on non-crisis State Aid to businesses in 2014. In the United States, local governments provided and average of US$80.4 billion in incentives each year from 2007 to 2012.

In order to better understand the prevalence of incentives worldwide, the Investment Climate team in the Trade & Competitiveness Global Practice of the World Bank Group reviewed the incentives policy of 137 countries. Results showed that all of the countries that were surveyed provide incentives, either as tax or customs-duty exemptions or in other forms. Table 1 (below) shows the rate at which these instruments are used across advanced and emerging economies. For instance, tax holidays are least common in OECD countries and are most prevalent in developing economies. In some regions they are the most-used incentive.[1]





However, despite offering incentives, few countries meet all the requirements of a fully transparent incentives policy. These include: mandating by law, and maintaining in practice, a database and inventory of incentives available to investors; listing in the inventory all aspects of key relevance to stakeholders (such as the specific incentive provided, the eligibility criteria, the awarding and administration process, the legal reference and the awarded amounts); making the inventory publicly available in a user-friendly format; requiring by law the publication of all formal references of incentives; and making the incentives easily accessible to stakeholders in practice. A T&C study now under way on incentives transparency in the Middle East and North Africa (MENA) region showed that none of the eight countries analyzed has a fully transparent incentives policy. (See Graph 1, below.)




Imagining infrastructure services in 2017

Laurence Carter's picture
Video: #IMAGINE a better future for all children | UNICEF


One of my favorite songs when I was growing up was John Lennon’s “Imagine.” A few months ago, UNICEF created a project around it to highlight the plight of millions of refugee children. As 2016 drew to a close, I couldn’t help but imagine a world with high-quality, affordable, sustainable, well-maintained infrastructure services for everyone.

I’m not sure a video of infrastructure projects set to “Imagine” would fire people up as much as the UNICEF video does. But there is value in reflecting on what we have accomplished in 2016, and what we might hope for and imagine in 2017, to bring this vision closer to reality for millions of people.

Underage with an ID to prove it

Lucia Hanmer's picture
Rubi’s Story: Exulted, Rubi ran home. As fast as her fifteen-year-old legs could carry her, she ran, exam in hand, excited to share the results with her family. The results, she believed, would shape her fate.
 

 
Yet when she got home, the elation dissipated with the dust. Her father had his own news to deliver. She would not be going to secondary school, as she had worked for, as she had wanted. Instead, she would be getting married, an economic necessity for Rubi’s family as well as a common practice in Bangladesh. Early marriage is on the decline in Bangladesh, but high rates continue to prevail; 59 percent of all girls are married by age 18 and 16 percent by age 15.
 
The Advocates: When little, Rubi had been denied access to primary school because her parents hadn’t registered her at birth. Rubi’s mother got her daughter a birth certificate, and with that, she was admitted to school, a place where she thrived.
 
At 15, smart, ambitious Rubi did not want to get married. So she found advocates in her teachers and Plan International, a child rights organization. With their support, Rubi went to the Union Council Office where the chairman informed her parents about the legal ramifications of child marriage. She was not old enough and her birth certificate proved it. She was underage. So Rubi went back to school and on to graduate at 18.
 
Child Marriage: Rubi’s story highlights the global problem of child marriage, its impact on girls, and the role of identification in empowering girls to prevent it. Child marriage remains pervasive: every year, 15 million girls are married before 18.

Strengthening the rules of the game: Bhutan’s alternative procurement experience

Hartwig Schafer's picture

When you think of Bhutan, you typically think of the tall mountains of the Himalayas, or you think of this nation adding the ‘Gross National Happiness’, or GNH indicator onto the global development agenda.  Well, from now on, you can also think of Bhutan as the first country in the world to have one of their agencies approved to apply “alternative procurement arrangements” or APAs.  This may sound trivial in comparison to 7,500 meter high peaks or collective happiness in the Dragon Kingdom. But for the way we do procurement at the World Bank, it’s a real breakthrough and an important step towards becoming a better Bank. 


 

Positive competition drives better performance

Georgia Harley's picture
We all know that people respond to incentives.
 
Even in the public sector – where pay and conditions are often fixed – there is a growing body of research demonstrating how public sector institutions can systematically motivate their staff to perform better.  (If you’re interested, see a sampling here, here, here, and here and of course the World Development Report: Mind, Society and Behavior.) 

International cooperation, ethics and climate change

Augusto Lopez-Claros's picture

In pursuing meaningful sustainable development, and investing in conservation and redressing the environmental damage caused by decades of neglect, we need to better explore and understand the role of international cooperation and why human values and ethics are central to this debate.

International cooperation. A key ingredient for generating a sustainable development path will have to be a significant strengthening of the current mechanisms of international cooperation, which have turned out to be insufficient to meet the global challenges that we face. The process of globalization is unfolding in the absence of equivalent international institutions to support it and harness its potential for good.

Land records go digital in Punjab, Pakistan

Mary Lisbeth Gonzalez's picture

Pakistan land records

The Government of Punjab started computerization of rural Land Records with the overall objective to improve service delivery and to resolve the overall dispersed nature of land records. The transaction costs were very high for the poor during the old days of patwari system. Women were denied their land rights and the low mobility of land markets contributed to preserving the highly unequal distribution of land and, therefore, opportunities to improve people’s livelihoods.
 
Before the Land Records Management Information System (LRMIS) was set up, the Board of Revenue (BOR),​Government of Punjab, operated a land record maintenance system which involved several levels of administration: the district, Tehsil, Qanungo circle, and Patwar circle. At the lowest administrative level of the records system – the Patwar Circle – are the Patwaris, who were not only responsible for preparing community maps and issuing land records, but also for many social, political, and administrative tasks. Administrative tasks included keeping weather records, collecting crop harvest information, reporting crimes, and updating the voter registry. Imagine 8,000 Patwaris maintaining the land records – usually very small holdings -- of about 20 million land owners. The Patwaris, who were the custodians of these confidential and important records, kept this information in a cloth bag called Basta.
 
LRMIS has been performing really well. The Project was rolled out in all 36 districts of Punjab. The Project has successfully tested linkages between the land records system and the deeds registration system. The biggest achievement of the project is that the time required to complete transactions has been reduced from 2 months to 45 minutes. Land record services are now provided on an automated basis throughout all 150 Tehsil Service Centers. There are many contributing factors to the success of the Project:


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