Syndicate content

Law and Regulation

With Large-Scale Temporary Employment, Is Poland the Next Spain? — Part 1

Piotr Lewandowski's picture

Car production line, Tychy, Poland. Photo credit: iStock ©Tramino

The political and economic transition of post-communist Central and Eastern European (CEE) countries brought substantial improvements in GDP per capita, productivity, incomes and standard of living. But certain worrying phenomena emerged on the labour markets. One of these was a rise in temporary employment, which has created a “dual labor market” – that is, a segmented market with workers in one segment more privileged than those in the other. For the CEE economies – especially Poland – the onset was in the 2000s. A variety of possible solutions exist, but so far the Polish government has done little to improve the situation.

How Ben Ali Policies Continue to Impoverish Tunisians

Antonio Nucifora's picture

Hopes are high for Tunisia’s economy to improve after Tunisians voted for a new parliament in October.  Pre-election polls consistently highlighted that the economy was the foremost preoccupation of Tunisians. Yet, political debates in the run up to the elections largely ignored longstanding economic problems.

Absurdly complex regulations divide the Tunisian economy between a protected “onshore” sector that sells to Tunisian consumers and a competitive “offshore” sector that exports, mostly to Europe. "It's pointless trying to understand the logic of it - there is no logic," says Belhassen Gherab, head of Aramys, one of Tunisia's largest textile and clothing groups.  He gives an example: "Suppose I have a machine that breaks down because one small circuit board needs replacing. If I'm an offshore company, I call up DHL and have it delivered within 24 hours. If I'm an onshore business, I'll have to bring it in through customs. I may be waiting 30 days, with my entire production halted, just for that one circuit board."

Always Regulated, Never Protected: How Markets Work

Richard Mallett's picture

If you’re not already interested in livelihoods, you should be. Because livelihoods are the bottom line of development. Millions are spent on trying to build more effective states around the world, but development isn’t really about state capacity. At the end of those long causal chains and theories of change, there’s a person – an average Jo (sephine), a ‘little guy’. Making things work a little better for that person, making it easier for them to make their own choices and carve out a decent living…that is the why of development.

How to De-Enclave the African Resource Sector for More Inclusive Growth and Development

Ken Opalo's picture
Oil drums in Ethiopia. Source - 10b travelling

The recent acceleration in growth rates across much of sub-Saharan Africa may not be purely commodity-driven, but for many of the region’s economies macro-economic stability is still dependent on prudent management of natural resources. For this reason, a strategic shift is required to shield African economies from commodity boom-burst cycles.
 
For much of the last half century, the dominant political economy model of natural resource management in Africa was this: states received royalties from mostly private mining companies and then were supposed to invest in public goods such as roads, hospitals, and schools. Private mining companies, for their part, would pick up the slack whenever states failed. Most of the time this happened through corporate social responsibility (CSR) initiatives, as a way of buying the social license needed to operate in specific communities.
 
This model has proven to be a complete failure in nearly all resource-rich African states, for a number of reasons.
 

The Post-2015 Youth Agenda: Why is it Important?

Mabruk Kabir's picture
youth
Photo: © Charlotte Kesl / World Bank

If the deluge of trend pieces tell us anything, it’s that the millennials are the most fussed over demographic in history. But behind the hype, there is real a tectonic shift. We are now witnessing the largest youth bulge in history. Over half the world’s population is now under thirty, with the majority living in developing and middle-income countries.

A youthful population can be source of creativity, innovation and growth –but only if employed and engaged in their societies. Unfortunately, for much of the world’s young people, reality is very different.

A number of hurdles prevent young people from contributing as productive, socially responsible citizens. As Emma Murphy of Durham University notes, “Poor education limits their skills, poor employment limits their transition to adulthood and political obstacles limit their voice and participation.”

The longer young people are excluded from participating in their economic and political systems, the further we are from realizing the ‘demographic dividend’.  

​It’s a no-brainer. A youth agenda, focusing on the issues that affect young people, must be a critical piece of any post-2015 framework. Where do we start?

Notes From the Field: Using Trade Diagnostics to Identify Opportunity in Burkina Faso

Miles McKenna's picture
Members of the Cooperative Agriculture Maraicher for Boulbi, nurture their fields of vegetables, as they water and hoe the fields on November 8, 2013 in Kieryaghin village, Burkina Faso. Source - Dominic Chavez/World Bank

Editor's Note: "Notes From the Field" is an occasional feature where we let World Bank Group professionals conducting interesting trade-related projects around the globe explain some of the challenges and triumphs of their day-to-day work. The views expressed here are personal and should not be attributed to the World Bank Group. All interviews have been edited for clarity.

The interview below was conducted with Mariam Diop, a Senior Economist with the World Bank Group. Mariam is based in the country office in Ouagadougou, the capital of Burkina Faso, where she carries out work in the WBG’s new Macro and Fiscal Management Global Practice. Mariam has been deeply involved with the country’s Diagnostic Trade Integration Studies (DTIS), which has helped to identify a number of key restraints on economic growth and shared prosperity in Burkina Faso. The Trade Post spoke with Mariam about what brought her to the country, where she sees opportunities, and how the DTIS has helped on the ground.
 

Capping the Bank-Fund Annual Meetings: Chiding Ethics Lapses, a Spokesman for an Even Higher Authority

Christopher Colford's picture



Amid the week-long procession of buttoned-down, business-suited speakers who commanded the stage during the Annual Meetings week of the World Bank and International Monetary Fund, the most thought-provoking comments may have come from someone who was not outfitted in business attire at all – but who was instead wearing a clerical collar.

It seemed fitting that the remarks by (some might say) the week’s most authoritative participant occurred on a Sunday morning, at an hour when many Washingtonians habitually heed an authority even more elevated than the Bank and the Fund. The major attraction at the IMF’s day-long “Future of Finance” conference was the Archbishop of Canterbury, Justin Welby, whose stature lent a special gravitas to the already-serious tone of the Fund forum’s focus on scrupulous ethics as a bedrock principle of sound capitalism.

On a panel with some of the titans of worldly finance – including the leaders of the IMF and the Bank of England – only someone of Welby’s ecclesiastical renown could have stolen the show. Although he did his down-to-earth best to try to avoid upstaging his fellow panelists – quipping, “I feel rather like a lion in a den of Daniels at the moment . . . slightly nerve-wracking” – the leader of the worldwide Anglican Communion was clearly the marquee draw for the throng that packed the Jack Morton Auditorium, spilled beyond the extra overflow rooms and jammed the adjoining corridors.

Citing the need for “heroism in the classic sense” to overcomethe spirit of “recklessness” that recently pervaded much of the financial industry, Welby called for a return to “ethical and worthwhile banking.” He urged everyone working in finance to aim to “leave a mark on the world that contributes to human flourishing.”

Welby – himself a former financier, who traded derivatives and futures before he joined the clergy – recounted the misgivings of the mournful bankers whom he had interviewed while serving as a member of the U.K.’s Banking Standards Commission in the wake of the 2008 financial crash. Welby recalled the lamentations of a deeply penitent banker who had been “broken by the experience” of leading his bank to ruin: In retrospect, reasoned the banker, “you can either have a big bank that’s simple, or a small bank that’s complex, [but] you cannot have a big complex bank and run it properly. . . . If only we had kept things simple.”

Welby’s call for the highest standards of conduct in the financial sector was matched by the exhortations of his fellow panelists – including IMF Managing Director Christine Lagarde, who reminded the audience that every financier must see himself or herself as “a custodian of the public good.” Lagarde's message was underscored by Bank of England Governor Mark Carney – who also leads the global Financial Stability Board – who deplored the pre-crash “disembodiment and detachment of finance” from the rest of the economy.

Only by upholding the most exacting ethical standards, said Largarde and Carney, can financiers rebuild public confidence in the financial sector – confidence that, in Lagarde's words, “builds over time and dies overnight.”

The regrets voiced by the panel’s private-sector financiers contributed to the panel’s almost confessional tone.

“If we can’t get the basic incentives right, it’ll be hard to get the right outcomes,” said Philipp Hildebrand, who had served as a senior central-bank official during the financial crisis before returning to the private sector. He reflected that “with wrong incentives, you end up with a wrong business model,” which in turn attracts “the wrong kind of people” who are prone to take excessive risks. Thus he underscored the need for “a personal transformation” within the spirit of every business leader.

Putting an even sharper point on the source of the problem, longtime financier Kok-Song Ng regretted that “a virus entered the system” in the years leading up to the crash, as financial firms deliberately recruited profit-driven “mercenaries” to run their trading desks. Those firms ignored the explosive risks being taken by their hired-gun traders, because they succumbed to “the great temptations for those in ‘the money world’ to want to make a quick buck” no matter how dangerous their tactics might be.

Rural jobs allow people to escape poverty; urban jobs are a ticket to the middle class

Yue Li's picture
South Asia is sometimes known as the land of extremes with opulence surrounded by poverty.

How much social mobility is there in South Asia? The intuitive answer is: very little. South Asia is home to the biggest number of poor in the world and key development outcomes – from child mortality to malnutrition – suggest that poverty is entrenched. Absence of mobility is arguably what defines the caste system, in which occupations are essentially set for individuals at birth. Not surprisingly, the prospects for people from disadvantaged backgrounds to prosper are believed to be gloomier in this part of the world.

And yet, our analysis in Addressing Inequality in South Asia, reveals that economic and occupational mobility has become substantial in the region in recent decades. In fact, it could even be comparable to that of very dynamic societies such as the United States and Vietnam. The analysis also suggests that cities support greater mobility than rural areas, and that wage employment – both formal and informal – is one of its main drivers. 

​When splitting the population into three groups—poor, vulnerable, and middle class—upward mobility within the same generation was considerable for both the poor and the vulnerable. In both Bangladesh and India, a considerable fraction of households moved above the poverty line between 2005 and 2010. Meanwhile, a sizable proportion of the poor and the vulnerable moved into the middle class. In India, households from Scheduled Castes and Scheduled Tribes – considered together – experienced upward mobility comparable to that of the rest of the population.  

Civic Space Initiative: Civil Society Under Threat

Roxanne Bauer's picture
Most states around the world, including most authoritarian regimes, tolerate Civil Society Organizations (CSOs) involved in noncontroversial, de-politicized humanitarian work because they provide social services that the state does not or because battling them would incur greater political expense than allowing them to work at the margins.  However, it is also clear that organizations with a political mandate or those that raise difficult policy issues face intense pressure in many countries.  In these states, authorities seek legal frameworks which could prevent CSOs from experssing their opinions, questioning official policies, or mobilising on the streets.

Internationally, CSO's are also speaking out against marginalization and unfair legal pratices. In the lead-up to the 69th Session of the UN General Assembly this week, CSOs are arguing that even though many organizations and activitsts are regularly invited to voice their concerns, they nonetheless stand little chance of influencing the real agenda because the inter-governmental system is almost entirely state-driven.

In this video, Ryota Jonen of the Civic Space Initiative, outlines six broad categories of legal constraints that CSOs face worldwide:
 
Civil Society Under Threat


 


Pages