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Private Sector Development

First-ever Global Conference on Sustainable Transport: What is at stake?

Nancy Vandycke's picture

On November 26, 2016, UN Secretary-General Ban-Ki Moon will convene the first-ever Global Conference on Sustainable Transport, in Ashgabat, Turkmenistan. What is at stake in this capstone two-day event? What fresh developments might it yield, and how might it change the dynamics for transport?
 
The new transport agenda. A number of earlier high-level events—including the UN Climate Action Summit, the OECD/International Transport Forum, and the Habitat III Conference—helped give a long-needed boost to the visibility of transport in the international arena in 2016. The events also helped position transport within the current set of global commitments that include the Sustainable Development Goals, the Paris climate agreement, the Decade of Action on Road Safety, and the Habitat III New Urban Agenda. The forthcoming Ashgabat event will put front and center one simple notion: for the next 15 years, the transport agenda will be framed by that set of global commitments. The commitments define the space within which governments, international organizations, the private sector, and civil society will have to act on transport. And they will dictate the future size and direction of transport funding.
 
This is a paradigm shift. Previously, the transport agenda was defined by the goal of providing access to transport infrastructure. Under the new framework, the international community has committed itself to much more. First, the issue is no longer simply access but equitable access for all. Second, other, equally important objectives have been added, including the efficiency and reliability of mobility services, transport safety, and decarbonization. In sum, the internationally accepted transport agenda concerns more than economic and social development; it is also about being part of the climate change solution.

Getting the job done in tough countries

Elan Cusiac-Barr's picture


Photo Credit: J Endres via Flickr Creative Commons

I’ve spent the last 18 years in Sub-Saharan Africa working with governments on making public-private partnerships (PPPs) work for their countries. My interest is not just professional. My wife is Cameroonian and we live with our children in Senegal. I love this region! So I have a deeply personal connection that drives me, and it is important that my work has a positive impact. But the countries I work in are typically very difficult for businesses and investors to operate in and tend to have regulatory systems and investment climates that dissuade private sector investment, which is critical for PPPs to succeed. So, even though it is personally rewarding, this is not an easy job.

Alternative procurement agencies to facilitate infrastructure investment

Michael Bennon's picture


Photo Credit: Myxi via Flickr Creative Commons License

In our last post, we highlighted a few examples of the innovative organizational structures that institutional investors have created to more efficiently invest in public infrastructure assets, but that is just one side of the equation. We also study programs and policies put in place by governments to more efficiently facilitate investment in the right projects and on the right terms for their constituents. That research encompasses several different topics, including enabling legislation, project risk allocation, stakeholder engagement and management, assessment frameworks for determining whether a Public-Private Partnership (P3) makes sense for a given project and others.

More than a trend: Africa is becoming better by the year at reforming its business environment

Cemile Hacibeyoglu's picture

"Doing Business 2017: Equal Opportunity For All" was released on October 25, and it marked record progress for the business environment reform agenda in Sub-Saharan Africa. Implementing 80 of the 283 reforms recorded globally, Sub-Saharan Africa once again claims the status of the world's top reforming region. Beyond the record reform count, this year is also marked as the year with the highest number of countries in the region having passed reforms (37 out of 48), confirming that more and more economies in Africa are putting private-sector-led growth at the heart of their development agendas.




There is actual transformation tied to those rankings. For example: It now takes 156 days to build a warehouse in Mauritius, compared to 183 days in France and 222 days in Austria. Rwanda ranks second globally on the Getting Credit indicator, not to mention that, years ago, it used to take 370 days to transfer a property in Kigali, while today it takes only 12 days.
 
But, beyond the figures, a few additional thoughts come to mind.

How has Africa become not only better at reforming, but also become home to some good practice that inspires many to reform?

First, one should mention the unique momentum for reform. Most African countries’ development strategies place the private sector as the engine of their growth, and recognize that creating enabling business environments is a key pre-requisite to attract investments and encourages business expansion. That is a timely move from African governments, especially in the context of the present commodity-price fall, which calls on African countries notably to move away from an exclusive dependence on minerals and to diversify their growth models.
 
Then, Africa countries are simply getting better at reforming. A good sign of this is that reforming today costs less in Sub-Saharan Africa. Recent analysis shows that it costs on average of $310,000 to implement a reform today, versus $730,000 merely four years ago. That is a clear sign of increased efficiency. The capacity-building and hands-on assistance of World Bank Group teams to governments and implementing agencies throughout the region is beginning to bear fruit.

How start-ups can turbocharge global productivity growth

Ganesh Rasagam's picture



Attendees at Republica Berlin 2016, an annual conference on digital culture for entrepreneurs from around the world.
Photo Credit: © Victor Mulas/The World Bank


We have witnessed in recent years the emergence of technology start-up ecosystems across the world. New technology trends are reducing the costs as well as the barriers of access to markets and resources for developing technology start-ups. If in the 1990s an entrepreneur needed $2 million and months of work to develop a minimum viable prototype, today she would need less than $50,000 and six weeks of work.

Entrepreneurs are also surging in emerging economies. India hosts major start-up ecosystems in New Delhi and Bangalore, with their start-ups having raised $1.5 billion in funding in 2016, respectively. São Paulo ranks among the top 20 start-up ecosystems with more than 1,500 active start-ups, closely followed in the region by Santiago and Buenos Aires. Warsaw hosts around 700 active start-ups, and Nairobi is the home of leading African start-ups, such as Ushahidi, M-Pesa or Brck.

Tech start-up ecosystems present new opportunities for emerging economies. Local entrepreneurs develop new business solutions that address domestic demands. For instance, in Kenya, M-Kopa is addressing the demand for energy in off-grid locations, a major issue in the country's rural areas. Unicorns, those start-ups that raise more than $1 billion, are no longer a U.S./Europe-only phenomenon. Indian, Chinese and Indonesian start-ups, such as Lu.com, Flipkart or Go-Jek, have reached this valuation, and African Internet Group from Nigeria is poised to be the first African unicorn.

Start-up ecosystems also create new jobs. Data from New York City's ecosystem on employment generated in the tech start-up ecosystem shows that most of the jobs generated by tech start-ups are not in start-ups themselves, but in local traditional industries that either are influenced or disrupted by start-ups. Think about a bank or a retail company that has to react to a mobile app providing finance or retail business and that needs to hire new talent to develop a competing app. More than 40 percent of these new jobs do not require a college degree. These are jobs like building a website, a basic database, a web or mobile app.

Productivity for prosperity: 'In the long run, it is almost everything'

Christopher Colford's picture

Productivity isn't everything, but, in the long run, it is almost everything. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.”
Paul Krugman, Professor of Economics and International Affairs Emeritus at Princeton University and a columnist for The New York Times
 
Paul Krugman’s conclusion about the importance of productivity is widely shared among economists. Yet productivity growth across the world has been sluggish in recent decades, in both advanced and developing countries, and restarting it is a central priority for the global development agenda.

Taking stock of what we understand about the productivity slowdown, and mapping out potential areas of policy action, was the focus of a recent two-day conference at the World Bank, “Second-Generation Productivity Analysis and Policy.” The conference, co-sponsored by the European Central Bank and the Competitiveness Network, brought together global experts and development practitioners.

“Bringing the most current advice to our clients about accelerating growth” is a top priority, said Jan Walliser, the Vice President who leads the Bank Group's Equitable Growth, Finance and Institutions (EFI) practice group. “The last 15 years have brought about major advances in the measurement and understanding of productivity growth,” said EFI Chief Economist William F. Maloney. The conference agenda thus sought to “sketch the frontier on the issues that are most relevant” to jump-starting productivity growth in the Bank Group's client countries.



Productivity in Cambodia's apparel and garment industry has, in recent decades, enjoyed sustained growth. This photo shows an apparel factory at the Sihanoukville Special Economic Zone. Photo: Chhor Sokunthea / The World Bank.

Green sea transport: creative approaches for environmentally friendly shipping

David Lawrence's picture

Photo Credit: The Maersk Group

Almost everything you buy—no matter how organic or natural—has an impact on the environment. Why? Because everything made and sold has to be transported, and transportation almost always means burning fossil fuels.

Management Quality Matters: Measuring and Benchmarking the Quality of Firms' Management in Turkey

Ximena Del Carpio's picture


This is an edited excerpt from a chapter, “Quality of Firm Management in Turkey,” from the upcoming report, “Creating Good Jobs in Turkey.”

 
How well firms are managed, and whether their management quality (or lack thereof) affects firm performance, are questions that policymakers and researchers everywhere – especially in emerging economies – are very interested in answering.
 
This area of inquiry is important because much of the evidence shows that the quality of management techniques that are used to run a firm – how it manages its capital and human resources, and how it monitors inventory, among other important areas in the production process – affect firm productivity, adaptability to change, and potential for growth. These factors are especially important in competitive and challenging environments. 
 
Despite the potential effect of management practices on firm performance, it is a relatively understudied area in the economics literature. Survey-data limitations have made it difficult for economists to analyze the relationship between firm management practices and firm performance.
 
But that pattern is changing: The World Management Survey (WMS) team designed a new interview-based evaluation tool to quantify the quality of management practices in firms across countries and sectors, and across 18 basic practices in four categories: operations, target-setting, performance monitoring, and talent or human-resource management. (The WMS was started by researchers at the London School of Economics and Stanford University, and it has been conducting management surveys worldwide for more than 10 years.)
 
In the last decade, many countries interested in benchmarking their firms’ performance have participated in the surveys. Turkey joined this effort in 2014. The new data allows us to measure how Turkish firms perform across the four benchmark dimensions of management. and it allows us to measure how they compare with competing firms across the globe. The results help the private sector and the public sector offer suitable support to improve firm performance and productivity as a whole.
 
In this analysis, we’ll share some of the early results from Tukey’s first quality-of-management survey, including how Turkey compares to other countries; we'll highlight the importance of measurement; and we'll try to motivate Turkish researchers and policymakers to use the results to help firms in Turkey.  
 
Average scores for firms in Turkey are low relative to the country’s development level (Figure 1). Firms in comparator countries like Mexico and Poland have higher absolute scores, and relatively higher scores for their development level. (The average scores combine sub-scores for each of the four categories: operations, targeting, monitoring and human resources.)

Figure 1: Per Capita Income and Average Management Score



Note: On this chart, Turkey's position is just above the position of Malaysia.
Source: World Management Survey and authors’ calculations.


Relatively poor performance in Turkey, and key comparator countries, is mostly driven by a large “left tail” of poorly managed firms – a factor that is not uncommon across developing countries (Figure 2). In particular, the fraction of firms performing below the lowest quartile of U.S. firms ranges between 55 percent and 70 percent in such countries as Turkey, Brazil, Poland, Chile, but also China and India. Although there is a large variation in management scores across firms, the distribution of scores in these countries, compared to the distribution in the United States, is either narrow or flat, bimodal and/or nonsymmetrical.

Figure 2: Smooth distribution of total management scores


Note: The vertical red dashed line represents the lowest quartile of the US distribution.
Source: World Management Survey and authors’ calculations.

Mythbusters: Getting airport PPPs off the ground

Andy Ricover's picture



Editor's Note: The World Bank Group is committed to helping governments make informed decisions about improving access to and quality of infrastructure services, including using Public-Private Partnerships (PPPs) as a delivery option when appropriate.  One of the PPP Blog’s main goals is to enhance the understanding of PPPs while eliminating misconceptions about them, ultimately enabling better decision making throughout every stage of the PPP cycle. To that end, the “Mythbusters” series, authored by PPP professionals, addresses and clarifies widely-held misunderstandings.

Like the Sirens whose voices lured mariners to their death, myths can undermine the best projects. The myths surrounding airport public-private partnerships are particularly distracting, and can sidetrack policymakers from the opportunities these transactions offer. But an open mind, commercial awareness, and the aid of experienced advisers can cut through the clamor.

Youth in Pakistan plug into digital jobs of the future

Anna O'Donnell's picture
Omer Ahsan, a program trainee who is now successfully freelanacing online as a professional content writer. Photo Credit/Waleed Abbas

Omer Ahsan is a chartered accountant in the making from Waziristan. He first heard about the Youth Employment Program, a free digital skills program offered by the Khyber Pakhtunkhwa Information Technology Board, from discussions on a group chat over Whatsapp, and applied immediately. Within two weeks of completing the digital skills program, Omer has built an online profile and has successfully earned money as a professional content writer.

Pakistan’s Khyber Pakhtunkhwa province is emerging from decades of instability and conflict, and would seem an unlikely place for digital workers to thrive. But with nearly 16 million youth in the province, and few available jobs locally, there is a pressing need to think outside the box in terms of equipping young people with the skills, knowledge and capabilities to take on the future.

In 2015, together with the World Bank, a series of pilot programs were conducted to test a model of digital skill training for youth. Growing connectivity, cloud technology, and the emergence of new business outsourcing models have lowered the barriers to entry for global employment, even for youth in remote parts of Pakistan. The key ingredients to accessing this employment: access to the internet, basic skills, and awareness, and the pilot program tested different approaches to supporting youth to develop online work skills.


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