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Private Sector Development

Apply for SAFE Trust Fund grants

Soukeyna Kane's picture



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.

Consolidating Gains: Gender Diversity in Business Leadership

Rudaba Z. Nasir's picture

Can we envision a time when we will no longer be surprised to hear that a woman is leading an energy or technology company? Can closing the gender gap in leadership, especially in male-dominated industries, be a possibility in fewer than 100 years?

Today’s dynamic women in top leadership positions are opening up the possibility of answering these questions with a resounding “Yes!” They have shattered glass ceilings and paved the way forward for countless others trying to uproot deeply entrenched ideas about women’s and men’s differing roles and opportunities in business and society. As a result, more and more women are now recognizing and making progress towards transcending the glass walls that also silo them in certain managerial functions, such as human resources and communications.

However, a new report by the International Labour Organization (ILO) released last week reminds us that gender diversity gains are not always sustained. Featuring unique data collected from 1,300 private sector companies in 39 developing countries, the report states that concerted efforts are required to consolidate progress and change mindsets while fighting unconscious biases at all levels of society.

Davos Sees Challenges, ‘Smart Cities’ Seize Opportunities: Finding Sustainable Solutions Via Public-Private Dialogue

Christopher Colford's picture



As the world’s policymakers and business leaders converge in Davos, Switzerland for tomorrow’s opening of the World Economic Forum, there’s certainly no shortage of global threats for them to worry about during the WEF’s annual marathon of policy seminars and economic debates. A world of anxiety enshrouds this week’s conference theme of the “New Global Context,” judging by the WEF’s latest Global Risks Report: Its analysis of 28 urgent threats and 13 ominous long-term trends offers a comprehensive catalogue of extreme dangers to social stability and even human survival.

As if the Davos data isn’t worrisome enough, several just-issued scientific studies – which document worsening trends in climate change, humanity’s imminent collision with the limits of the planet’s resilience and the intensifying damage being wrought by voracious consumption-driven growth – trace a relentlessly gloomy trajectory.

Relieving some of the substantive tension, there’s also often a puckish undercurrent within each year’s Davos news coverage. Poking holes in the self-importance of Davos’ CEOs and celebrities – with varying degrees of lighthearted humor or reproachful reproof – has become a cottage industry, springing up every January to chide the mountaintop follies of “the great and the good.” Skeptics often scoff that the lofty pronouncements of Davos Deepthink have become almost a caricature of elite self-importance, and there’ll surely be plenty of the customary sniping at the insularity of Davos Man and at the insouciance of the globalized jet set as its over-refined One Percent folkways become ever more detached from the struggles of the stagnating middle class and desperate working poor.

Despite such Davos-season misgivings, it’s worth recalling the value of such frequent, fact-based knowledge-exchange events and inclusive dialogues among business leaders and thought leaders. Some of the Davos Set may revel in after-hours excess – its Lucullan cocktail-party scene is legendary – yet the substantive centerpiece of such meetings remains a valuable venue for expert-level policy debates, allowing scholars to inject their ideas straight into the bloodstream of corporate strategy-setting. The global policy debate arguably needs more, not fewer, thought-provoking symposia where decision-makers can be swayed by the latest thinking of the world’s academic and social-sector experts. Judging by the fragmented response to the chronic economic downturn by the global policymaking class, every multilateral institution ought to host continuing consultations to help shape a coherent policy agenda.

Focusing on just one area where in-depth know-how can serve the needs of decision-makers: The World Bank Group has long been tailoring world-class knowledge to deliver local solutions to client countries about one of the trends singled out in this year's WEF list of long-term concerns – the worldwide shift from “predominantly rural to urban living.” The biggest mass migration in human history has now concentrated more than 50 percent of the world’s population in cities, leading this year’s Global Risks Report to assert that the risk of failed urban planning is among the top global concerns.

“Without doubt, urbanization has increased social well-being,” commented one WEF trend-watcher. “But when cities develop too rapidly, their vulnerability increases: pandemics; breakdowns of or attacks on power, water or transport systems; and the effects of climate change are all major threats.”

Yet consider, also, the potential opportunities within the process of managing that trend toward ever-more-intense urban concentration. What if the prospect of chaotic urbanization were able to inspire greater city-management creativity – so that urban ingenuity makes successful urbanization a means to surmount other looming dangers?

For an example of the can-do determination and trademark optimism of the development community – with the world’s urbanization trend as its focus – consider the upbeat tone that pervaded a conference last week at the World Bank’s Preston Auditorium, analyzing “Smart Cities for Shared Prosperity.” With more than 850 participants in-person, and with viewers in 92 countries watching via livestream, the conference – co-sponsored by the World Resources Institute (WRI), Embarq, and the Transport and Information & Communications Technology (TICT) Global Practice of the World Bank Group – energized the world’s leading practitioners and scholars across the wide range of transportation-related, urban-focused, environment-conscious priorities.

(Thinking of the Preston gathering’s Davos-season timing and full-spectrum scope: It sometimes strikes me that – given the continuous procession of presidents, professors, poets and pundits at the Preston podium – there could be a tagline beneath Preston's entryway, suggesting that the Bank Group swirl of ideas feels like “Davos Every Day.”)

Amid its focus on building “smart cities” and strengthening urban sustainability, the annual Transforming Transportation conference took the “smart cities” concept beyond its customary focus on analyzing Big Data and deploying the latest technology-enabled metrics. By investing in “smart” urban design – and, above all, by putting people rather than automobiles at the center of city life – the scholars insisted that society can reclaim its urban destiny from the car-centric, carbon-intensive pattern that now chokes the livability of all too many cities.

The fast-forward series of “smart cities” speeches and seminars reinforced the agenda summarized by TICT Senior Director Pierre Guislain and WRI official Ani Dasgupta – formerly of the Bank Group and now the global director of WRI’s Ross Center on Sustainable Cities – in an Op-Ed commentary for Thomson Reuters: “We can either continue to build car-oriented cities that lock in unsustainable patterns, or we can scale up existing models for creating more inclusive, accessible and connected cities. Pursuing smarter urban mobility options can help growing cities leapfrog car-centric development and adopt strategies that boost inclusive economic growth and improve [the] quality of life.”

Tumbleweed rolls through West African resorts: Ebola and tourism crisis management

Hermione Nevill's picture



Jean-Marie Gaborit has been operating his beautiful wetland lodge in the Delta de Saloum in Senegal for 12 years, but he says things have never been so quiet. The European winter months are usually the high season for popular West African destinations, with the beaches, hotels and restaurants packed full of sunshine-seeking tourists. "It’s this Ebola" he sighs, and then adds "even though there is none here."
 
It’s the same story in the Gambia, and effects are even felt further afield in Kenya, Tanzania and Botswana. The Hotels Association in Tanzania (with over 200 members) says that business is down 30 to 40 percent on the year and advanced bookings, mostly for 2015, are 50 percent lower. In South Africa, some 6000 kilometers from the nearest Ebola outbreak, arrivals are down this period by as much as 30 percent. In some cases, airlines (such as Korean Air) have stopped running – even to non-affected countries like Kenya. Across the board, Share values of international tour operators have fallen, hotels have closed, and thousands of tourism-industry workers have been made redundant. 
 
The Accommodation Manager at the Baobab Hotel in Saly, Senegal admits he has laid off 160 staff in the last few months: "When we are full, we have a ratio of one employee for one room. We have 280 rooms and right now 100 of them are occupied. I have 20 extra staff that I can’t afford, but their contracts mean that I can’t let them go." About 80 percent of those staff members are from the local area, and they directly support seven to 10 dependents. For countries that rely on tourism for a large part of their GDP and foreign-exchange contributions, the loss of revenue is significant. In the Gambia, for example, where tourism accounts for 13 percent to 15 percent of GDP, the target of 7.5 percent economic growth for 2015 will be missed.
 
Misinformation lies at the heart of the problem. Although many foreign governments have declared Senegal and the Gambia to be Ebola-free, spreading this message to tourists has proved incredibly difficult. Noisier news reports of death tolls, medical-staff shortages and NGO-promoted appeals in affected countries have drowned out other voices. Moreover, those reports play to international prejudices. With the overwhelming foreign perception of Africa as one country, the problem has no boundaries.

The World Bank Group will be supporting the Government of Senegal in implementing a communications strategy with an emphasis on briefings for key tour operators and the provision of hard data. Best practice shows that such management is more effective if it is planned ahead, and if it includes the preparation of a task force involving decision-makers from both the private and public sector – including a public-relations team, a recovery marketing team, an information-coordination team and a fundraising team. Moving into crisis recovery, a series of medium-term resilience measures – such as incentives, matching grants, training and sustained promotion – may be appropriate.
 
Social media has played its part in trying to combat misunderstandings, with Twitter and grassroots campaigns pushing material such as this infographic, but there needs to be a much-better-coordinated response.



Crisis communications consultant Jeff Chatterton has been working with a number of African Tour Operators since the outbreak of the virus. He cites hard information and empathy as two of the most important tools to deploy at this stage of the crisis. According to Chatterton, prospective tourists who are hesitating over an African booking need to feel that their concerns are listened to, acknowledged and understood. Once this has been established, they will be more inclined to engage with fact-based information, which needs to be clear, transparent and accurate. He sees two big problems with tourism businesses: a reactive approach that is not reaching out and communicating to key audiences, and a downplaying of the problem that undermines and belittles consumer. "About the worst thing you can do is dismiss their reality as inconsequential," he says.
 
There is a critical role for government to play in crisis management and disaster recovery. Lessons can be learned from the outbreak of Foot and Mouth Disease in the UK in 2001. The UK’s Department for Environment, Food and Rural Affairs (DEFRA) identified the direct costs to tourism as a loss of expenditure of between £2.7 and £3.2 billion. At the national level, the tourism industry's representatives blamed the British Tourist Authority for failing to react sufficiently and effectively, without an appropriate crisis-management strategy in place before the outbreak.

For the World Bank Group and other development partners, a greater emphasis on crisis-management support at the sector level could be an important pro-active means of stepping up our engagement with client countries – before disaster strikes. With the rising threat of terrorism attacks across the world, along with their devastating impact on tourist demand, the most prepared destinations will have a competitive advantage and will be better equipped to limit the damage to the economy and to people’s livelihoods.  

For now, hotels in Senegal have slashed their prices and are concentrating on supplying the small domestic market, but operating at a loss is not sustainable for long. The booking season for 2015 is almost over, with no sign of recovery – meaning that businesses such as Jean-Marie’s face at least another 12 months of empty beds. 

The Genie in a Bottle: How Bottled Biogas Can Contribute to Reducing Kenya’s Dependence on Fossil Fuels

Edward Mungai's picture


Growing up, I always dreaded to enter my grandmother’s kitchen in the village. She used firewood to cook: There was such a dark, thick smoke in the room that I couldn’t breathe or keep my eyes open. I really don’t know how my grandmother could spend hours and hours in there, every day, for so many years. And unfortunately, my grandmother is not an isolated case. More than 90 percent of Kenya’s population uses firewood, charcoal or kerosene for their daily cooking needs.

I always dreamed that clean sources of energy would make Kenyans more independent and less exposed to the serious health risks posed by fossil fuels. In rural areas, most women like my grandmother rely on firewood; its consumption not only depletes our forests but also emits hazardous smoke that causes indoor pollution and eventually respiratory illness. In areas where firewood is scarce, women have to use cow dung as fuel, an option possibly even worse in terms of pollution. Urban areas are affected too: The poor rely mostly on charcoal, another biomass that has the same negative effects and health risks of firewood.
 
Cleaner fuel options have already been developed but are often too expensive or too difficult to transport across the country to be adopted by a large part of the population, especially by the 40 percent of people at the base of the pyramid.

So what can be done? How can we make clean fuels more affordable and accessible?
 
I first heard about bottled biogas when I visited a "green" slaughterhouse in Kiserian, Kenya. I was really impressed: My dream of a cleaner, more affordable and easily accessible fuel was right there before my eyes.

The Keekonyoike Slaughterhouse found an innovative way to produce affordable biogas and package it for distribution all around the country. Using a special bio-digester, this business can turn blood and waste from a community-based Maasai slaughterhouse into biogas for cooking. To facilitate transport, the firm stores the fuel in recycled cylinders and used tires, reducing even further the environmental impact of the operation. Just to give me a better idea of the "green" potential of his business, the manager told me that this first biogas plant is expected to cut methane emissions by more than 360,000 kilograms per year (the equivalent of almost 2,000 passenger vehicles).
 
Indeed, "bottled" biogas (biogas compressed into a cylinder) has huge potential in Kenya: Farmers can directly produce it, recycling the waste from their farms; can use it for their cooking needs; and, thanks to the bottling process, can sell the excess on the local market, generating income while saving the environment.
 
The Genie in the Bottle


Keekonyokie is a company that began operations in 1982. It runs an abattoir that slaughters about 100 cows per day to meet the meat demand in Nairobi and its environs. In 2008, with the support from GTZ, the company constructed two 20-foot-deep biogas digesters that would help manage the abattoir waste, which was becoming a menace and a health hazard. Within a short time, the biogas being produced from the digesters was more than the company could absorb. The company managers started thinking of compressing and bottling the excess biogas, but they needed support to test the technical and commercial viability of their idea.

When infoDev’s Kenya Climate Innovation Center (KCIC) opened its doors in October 2012, Keekonyokie was one of the first companies to be admitted.
 

Strengthening the Ecosystem to Mainstream Inclusive Businesses

Pallavi Shrivastava's picture



“Intelligence and capability are not enough; there must also be the joy of doing something beautiful.”
These words by Dr. Venkataswamy tower over us as we enter the flagship Aravind Eye Hospital in Madurai, India, and continue to reflect in the staff’s philosophy during our short visit.

The Aravind Eye Hospital needs no introduction. Tucked in the remote south of India, it is the result of its founder’s vision of eliminating needless blindness. Started in 1976 by Dr. Venkataswamy, the hospital provides accessible, affordable and quality eye care to all sections of the society through cross-subsidization, which creates a commercially viable and sustainable business model.

Aravind Eye Care is an example of a business model innovation, also referred to as an ‘inclusive business model’. IFC defines inclusive business models as those offering goods, services and livelihoods to the poor in financially sustainable and scalable ways. Globally, inclusive businesses are being recognized as important players for development. More entrepreneurs are realizing the bottom of the pyramid (BoP) market as an opportunity to design and implement innovative solutions. As per an IFC study, the BoP represents a potential market of $5 trillion globally - the largest slice of this lies in South Asia, particularly India, given the size of BoP population in the region.

However, inclusive businesses continue to face several barriers in scaling and replicating their success such as lack of access to finance, absence of trained human resources, weak supply chain linkages etc. and above all, an underdeveloped support ecosystem to overcome critical market gaps. Addressing these barriers will not only help capitalize on the growth potential but also mainstream the sector.

World Bank Group is playing a catalytic role in unlocking opportunities for innovative, impact focused businesses. The South Asia Inclusive Business Program has been working towards enhancing private sector participation and inclusive business activity in the region. While working on the high level through systemic interventions, the team is also connecting with organizations on the ground by supporting them to scale sustainably and/or replicate across borders.

Activism and Advocacy 'Sans Frontières': Mobilizing Lawyers to Champion Development and the Rule of Law

Christopher Colford's picture
The challenge of global development is so vast, and the need to deliver high-impact services is so urgent, that the drive to create a social movement to build shared prosperity must enlist people with every type of skill – marshalling all of the many kinds of expertise that drive the private sector as well as the public, academic, social and philanthropic realms.

“We need everybody,” as World Bank Group President Jim Yong Kim has passionately argued. “We need writers who can write about this. We need engineers. We need doctors. We need lawyers. We need artists. We need everybody who can capture the imagination of the world to end poverty." There’s a role in development for public-spirited people from every profession who seek to contribute to the cause.
 
Take It On: Enlisting In The Development Cause



Deep legal knowledge and deft legal reasoning are certainly part of the skill set needed to eradicate poverty and promote development. That’s because “you can’t have justice without advocates for justice,” as the Justice Community of Practice at the World Bank Group recently learned from the leader of an energetic initiative to link public-spirited legal practitioners with the nonprofit and non-governmental organizations (NGOs) that need their skills.

The legal acumen that helps for-profit law firms succeed in the marketplace is often sought by nonprofits, human-services groups and human-rights advocates. Lawyers' skills can often make a crucial difference for organizations that deal with social prorities – whether it’s by tackling complex challenges like protecting refugees or defending prisoners of conscience, or by pursuing routine tasks like negotiating an office-space lease or reviewing an employment contract.

Matching the needs of social organizations with the capacity of lawyers who have a bit of time to commit to pro bono publico ideals – and thus to “strengthen the global pro bono community” for the long term – is the goal of PILnet, the Global Network for Public Interest Law. PILnet president Edwin Rekosh recently told the Bank’s justice-focused group that “promoting voluntarism among lawyers” often starts with the simple question, “Do you care about doing something good with your free time?” If so, “What do you care about?”

Lawyers within some of the world’s largest international law firms, in particular, often find that they have some spare capacity when they're in-between client assignments. Putting those flexible hours to good use for a pro bono client can both satisfy the lawyers’ altruistic aspirations and reflect well on their firms’ commitment to devote time and talent free of charge to worthy social causes.

The Importance of Managing Unsolicited Proposals in Infrastructure

François Bergere's picture

Transparent, competitive bidding is a sound way for the public sector to buy goods and services. It is also standard procedure for Public-Private Partnerships (PPPs). Besides reducing opportunities for corruption, this approach generally attempts to achieve the best value for money and is perceived as fair by all stakeholders. When the sums involved are big, for example, in large infrastructure projects, transparency in government procurement becomes even more critical. Unsurprisingly, competitive bidding is considered best practice in most countries, not only in the public sector but also for corporations and institutions such as the World Bank Group.
 
This system works well when a government knows exactly what goods and services are procured for infrastructure development that best serve the public interest. But in many developing countries, governments may not have the requisite capacity and resources to define the scope of the project, or to prepare the tender documentation. Such situations often lead to inadequate infrastructure development. Sometimes the private sector uses such opportunities to proactively submit proposals for infrastructure projects on their own without waiting for a government initiated tender.
 
When the private sector submits such types of proposals, they are called Unsolicited Proposals, or USPs. USPs are an exception to the typical government-initiated approach and allow a private company to initiate the process. A private-sector entity (“USP proponent”) reaches out to the government with a project proposal to develop an infrastructure project. Typically, such a project may not have been identified within the government budget or policies, and the project’s purpose and need may not have been defined. In some instances, a USP may be nothing more than a mere idea or concept when it is presented to the government.


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