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Private Sector Development

Wanted: someone to energize infrastructure projects across the Caribbean

Paul da Rita's picture


 

On a recent trip to the Caribbean, I was in a meeting at the Ministry of Finance of one of the region’s largest economies. The topic under discussion was all too familiar: the difficulty of attracting overseas investment into the country’s public infrastructure projects.

To enliven things, I began thinking aloud about an idea I’d been musing on for a while and was asked to outline my idea. Let me first set the context.

Innovative solutions for resource mobilization in Zambia

Srinivas Gurazada's picture
Industrial area in the city of Kitwe, Zambia - located in the copper belt. Photo: Arne Hoel

What would you expect in a mineral rich developing country? High Government revenues from the mineral resources? Not always, and definitely not in the case of Zambia - until recently.

Zambia has a considerable wealth of mineral resources and its economy depends heavily on these minerals. Zambia's primary export, copper and copper-related products, account for as much as 77% of the country's exports.

Getting beyond PPPs as just projects

Malcolm Morley's picture



PPPs are designed to achieve improved access to assets, infrastructure and services over a significant number of years. They should have clearly identified objectives, specified outcomes, clear programs of investment over time, and relationships and performance targets to bring to life the Social and Economic Value Equations that underpin them.
 
As stated in my previous blogs, the Social and Economic Value Equation is:

Will Sovereign Wealth Funds Go Green?

Håvard Halland's picture



Sovereign Wealth Funds (SWFs) currently have a very limited role in climate finance and green investment – reportedly, below the average for institutional investors. According to the Asset Owners Disclosure Project (AODP), which evaluates institutional investors on the basis of their low-carbon performance, five of the 10 lowest-rated large investment funds were SWFs.

However, the more progressive SWFs are currently divesting from assets with large climate-related risks, and some countries are pondering whether their SWF should take a more pro-active role in green finance. What lies ahead for SWFs in this rapidly changing landscape?
 
SWFs could have an impact on climate finance
 
The sheer amount of capital managed by SWFs means that their impact on green finance, while marginal historically, has the potential to become significant. According to the Sovereign Wealth Fund Institute (SWFI), SWFs hold assets worth approximately $7.4 trillion, and the total capital of SWFs has more than tripled over the last decade.
 
But SWFs’ mandate does not typically include green finance. To the extent that they have been active in this area, it has been to reduce climate-related risk to their portfolios – including exposure to fossil fuels. For example, last October the $22.6 billion New Zealand Superannuation Fund (NZSF) announced a strategy to address climate-change risks that represent a “material” issue for long-term investors, and to “intensify its efforts” in areas including alternative energy, energy efficiency and “transformational” infrastructure. Norway’s giant Government Pension Fund Global ($873 billion) has adopted similar policies to reduce climate-related risk.

For rural Afghan women, agriculture holds the potential for better jobs

Izabela Leao's picture
Photo: National Horticulture and livestock project

 “… If women in rural areas had the same access to land, technology, financial services, education and markets as men, agricultural production could be increased and the number of hungry people reduced by 100-150 million …”
                                                      
Agriculture Sector: Creating Opportunities for Women
In Afghanistan, agriculture continues to be the backbone of the rural economy – about 70% of the population in rural areas is engaged in on-farm activities. At the same time, large share of the employment generated in non-farm and off-farm sectors, such as manufacturing, are also closely linked to agriculture and food-processing.

Women’s participation in the labor market has been generally low in rural Afghanistan. For the last decade, the country had one of the world’s lowest rates (19%). In recent years, however, the rural labor market in Afghanistan has experienced an impressive influx of women, increasing the rate to 29%. Yet, a large share of the working-age female in rural Afghanistan (71%) remains out of the labor force. In 2013/14, out of 5.2 million women of age 14 or above, only 1.5 million (29% of total) were in the labor force, about one-third of that 1.5 million workers remained unemployed, and the other two-third were employed – which accounts for only 22% of total rural employment (Figure 1). Of the employed female workers, majority are employed in agriculture (11%) and livestock (59%).

Making climate finance work in agriculture

Alberto Millan's picture

Farmers, like these women in Nepal, are eager to help the agriculture sector become part of the solution to climate change. / Photo: Neil Palmer/CIAT
 

It’s widely recognized that agriculture can be part of the solution to climate change. The worldwide agriculture sector currently accounts for between 19 percent and 29 percent of total greenhouse gas (GHG) emissions. A combination of policies, investments and targeted action is critical to achieve a low-carbon and climate-resilient agriculture sector.
 
But the question arises: Where will the money to fund this transition come from? Can farmers alone finance the productivity and climate change adaptation and mitigation changes that are needed?
 
The vast majority of climate finance has traditionally flowed to other sectors, accentuating even more the shortfall in finance for agriculture.
 
Due to perceptions of low profitability, along with high actual and perceived risks, lenders often severely limit the flows of finance directed to smallholder farmers and small and medium-sized enterprises (SMEs) in agriculture. Without access to capital, farmers cannot invest in raising their productivity and incomes, becoming more resilient to climate change and mitigating their farms’ negative impact on climate.
 
But untapped sources of capital exist for making agriculture more climate-smart — namely, in climate finance. A recent World Bank discussion paper, Making Climate Finance Work in Agriculture, explores ways to use climate finance to dramatically increase the flows of capital directed to smallholder farmers and agricultural SMEs, aiming to deliver positive climate outcomes.

Making PPPs work: Going to the chapel

Jeff Delmon's picture


Photo Credit: Eduardo Llanquileo via Flickr Creative Commons

The Public-Private Partnership (PPP) concept is actually not very complex. You take the best of the public sector and the best of the private sector, put them together and – voila! The sum of the parts is greater than the whole, 1+1=3, more efficiency, more investment, with public oversight and support. PPPs are not for dumping a problem on the private sector. The problem still belongs to the government, only with a new partner, the private sector, to help resolve it.
 
So, if the logic is so simple, why do many countries perform so poorly when implementing PPPs?

TCdata360: Filling Gaps in Open Trade and Competitiveness Data

Klaus Tilmes's picture
The World Bank Group just launched a new open data platform for trade and competitiveness – TCdata360. Try it today and share your visuals on Twitter with the hashtag #TCdata360.

Open data – statistics that are accessible to all at little or no cost – is a critical component of global development and the World Bank Group’s twin goals of ending poverty and boosting shared prosperity. How can we measure progress towards our objectives without a method of tracking how far we’ve come?

Spatial Growth Solutions, Multi-Stakeholder Engagement, and Fish: Innovative Public-Private Dialogue in Mauritania’s Nouadhibou Free Zone

Steve Utterwulghe's picture

Nouadhibou’s artisanal fishing port (Photo by Steve Utterwulghe)


In the Northern tip of Mauritania lies the Nouadhibou Free Zone. Created in 2013 with financial and technical support from the World Bank, the first international partner to do so, it benefits from a 110-kilometer coastline on the Atlantic Ocean and an exclusive economic zone of 230,000 square kilometers. Its waters are among the most seafood-rich in the world, with a capacity of 1,500,000 tons per year.

The free zone offers investment opportunities in industries, logistics, tourism, retail business and tertiary sectors. However, creating a competitiveness hub in the fishing sector is one of the paramount objectives of the zone, given the importance of the sector for the Mauritanian economy. It represents 5.8 percent of the GNP, accounts for 18 percent of the total exports, and contributes to an estimated 40,000 jobs.

In March 2016, the World Bank approved the Nouadhibou Eco-Seafood Cluster Project (Projet Eco-Pôle Halieutique) with an International Development Association (IDA) grant of $7.75 million out of a total project amount of $9.25 million.

The objective of the project is to support the development of a fishing-sector hub in the Nouadhibou Free Zone aimed at promoting the sustainable management of fisheries and creating prosperity for the local communities.
 

A worker at the Free Zone certified Star Fish factory (Photo by Steve Utterwulghe)
 



While the Free Zone has already achieved critical results — such as the attraction of a few international investors in food processing and fish exports, the completion of commercial viability studies of the deep-seawater port and the airport, and the elaboration of a draft law on public-private partnerships (PPPs) — some constraints affecting more specifically the fishing sector remain. They include, among other things, the lack of productive diversification, an integrated value-chain, know-how about certification and international standards, and the octopus fishing quota system.

In addition, the lack of structured dialogue among the various public and private stakeholders in the fishing sector had been identified as a fundamental impediment to the development of the hub’s competitiveness.

Louise Cord, the World Bank Country Director, who recently visited Nouadhibou to officially launch the project with the President of the Free Zone, commended the Free Zone Authority for creating a Public-Private Dialogue (PPD) Task Force in 2015.


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