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Private Sector Development

How to Break the Curse of Unemployment: Jobs First or Skills First?

Omar Arias's picture

Some Skills should Come Before Jobs, Others Develop with the Job
 
Students work on an engine at Sisli Vocational High School To be clear from the onset: I will not oversimplify the unemployment (or inactivity) problem in the Western Balkan countries as solely due to a lack of skills in the population. Low employment rates result from both insufficient creation of jobs by enterprises and too-high a fraction of the workforce that is ill-equipped to take on the jobs that a modern economy creates. Both issues are intertwined. Solutions, therefore, require efforts on several fronts to enable a more vibrant private sector –including improvements in the business environment, enterprise restructuring, integration in global markets and promoting entrepreneurship— as well as to prepare workers for new job opportunities.

Categorizing the collaboration and community promotion spaces that make urban innovation ecosystems tick

Victor Mulas's picture
A variety of collaboration spaces are spreading across urban innovation ecosystems. This makes sense intuitively, because collaboration spaces create and — in some cases — manage and sustain the communities that make the ecosystem exist and grow. 
 
Collaboration space in Barcelona, Spain.
​Photo: Victor Mulas

I believe that collaboration spaces are, in fact, one of the key elements to create and grow urban innovation ecosystems in cities. Our current research in mapping urban innovation is starting to provide results that seem to validate this hypothesis. We are seeing that collaboration spaces that create and manage communities are critical nodes of city urban innovation ecosystems. 

We will share more results about this analysis in future blogs but given the relevance of these spaces, I summarized what I believe are the most relevant categories of collaboration spaces. This list, which I prepared for a paper I am working on, is not prescriptive and it is not closed by any means. To the contrary, it just presents a starting point and I welcome comments to expand and refine these categories.

Why Jobs Need to Come Before Skills

Wolfgang Fengler's picture

The Western Balkans Case

When I travel to the Balkans for work, the journey typically begins with a cab ride to the airport from my home in Vienna. The taxi company I use is run and operated by Serbs living in Austria. It’s a great company: very reliable, clean cars and friendly drivers who are always keen to discuss the politics and economics of the Balkans. When I arrive in Belgrade, I’m picked up by drivers who have very similar skills to those of their compatriots in Vienna. However, the former have better salaries and opportunities simply because the company they work for operates in an environment that is much more conducive to nurturing and growing a business. In Austria, unlike in Serbia, a company can operate efficiently, is subject to a relatively fair tax treatment and knows the industry standards it needs to comply with. In turn, this explains to a large extent why workers, at any given levels of skills, are more productive in Austria – a basic intuition which William Lewis develops in his book The Power of Productivity, projecting the gains that Mexican construction workers make when moving to the USA.

Credit for All: Increasing Women's Access to Finance

Nisha Nicole Arekapudi's picture
Financial inclusion is important for accelerating economic growth, reducing income inequality, and decreasing poverty rates. Unfortunately, women face more difficulty than men in access to credit, limiting the development of their full market potential and hindering economic gain and entrepreneurship. Discriminatory practices in the granting of credit may mean that qualified applicants do not have the same opportunity to receive credit simply due to their gender.

How Open Data can fight poverty and boost prosperity in Kyrgyzstan

Roza Vasileva's picture
All around the world, governments are recognizing the value and potential of Open Data. This is clear from the G8’s adoption of an Open Data Charter in June 2013 (with the G20 likely to follow suit), the growing number of countries adopting Open Data initiatives, and the 64 countries that have committed to Open Government Partnership action plans (most of which focus on Open Data). Kyrgyzstan has taken the first steps down this path.
 
Bishkek, Kyrgyzstan
Photo: flickr/pjgardner

The Kyrgyz Government has been implementing the Open Government Policy and has already undertaken several measures, such as creating official web portals for state bodies including Open Budget, Electronic Procurement, Foreign Aid and many others. Through these websites, citizens can find information about public services and activities offered by government ministries and other state agencies.
 
In 2013, based on a comprehensive analysis of Kyrgyz public information resources and in consideration of plans for leveraging ICT for good governance and sustainable development, the government designed an e-Government program and corresponding Action Plan for 2014-2017 with support from the United Nations Development Programme (UNDP). This program was approved by the Kyrgyz government on November 10, 2014.
 
In addition, this year the UNDP provided support to set up an online network for the Prime Minister’s online community liaison offices. This network has 63 connection points nationwide and supplements the Kyrgyz government’s official website by strengthening relations between the government and civil society by informing citizens about ongoing reforms, as well as and challenges that have been resolved for the country’s communities and citizens. This is one of the existing examples of Kyrgyz government utilizing its openness for greater citizen engagement.

Supporting Entrepreneurs: Breaking Down Barriers for Access to Finance

Irene Arias's picture

​Small and medium sized companies are the backbone of Latin America’s economy. They represent more than 90 percent of all enterprises in the region, generating over half of all jobs and a quarter of the region’s gross domestic product. They are essential to economic growth, yet their success is often blocked by one key obstacle: lack of credit. Nearly a third of companies in the region identified lack of credit as a major constraint, according to recent surveys.

Take the case of Sonia Arias, who owns a small textile business in Medellin, Colombia. When she opened her business seven years ago, she took an informal loan that left her with sky-high interest rates and little cash to reinvest. “When I was paying these loans,” she said, “it felt like we were being hit with a stick.”

Inclusive Growth as the Path Toward Sustainable Development: A New Initiative on 'Equality of Opportunity in Global Prosperity'

Elaine R.E. Panter's picture

The correlation is simple: Job creation is the hinge connecting the three pivotal elements of economic development: living standards, productivity gains, and social cohesion. Promoting access to the labor market for all, including traditionally marginalized groups, is therefore paramount to achieving real, sustainable growth.
 
Following the success story of "Women, Business and the Law," which focuses on legislative gender discrimination and its impact on the economy, the World Bank Group is now launching a new initiative that will develop a set of indicators measuring discriminatory legislation on the basis of racial and ethnic origin, religion and sexual orientation. The project was presented externally for the first time on November 11 by Federica Saliola, Program Manager and Task Team Leader of the project, speaking at Sexual Orientation and Gender Identity & Development: International Human and Economic Development, LGBT Rights and Related Fields conference, organized by The Williams Institute at UCLA.
 
In her speech, Ms. Saliola reminded the audience that, despite the rapid growth in emerging economies, not all sectors of society have benefitted equally, income inequality has risen, and 1 billion people are still left under the poverty line. In the coming three years, the new project will thus expand the knowledge base of laws, regulations and institutions that discriminate against ethnic, racial, religious and sexual minorities and will collect data across a number of economies covered by the Global Indicators Group. 

Makers and education, part one: how are disruptive technologies affecting the way we educate?

Saori Imaizumi's picture
Girls learning how to design and make a toy with a laser cutter, which increases
interest in STEM career options. Photo: Saori Imaizumi/World Bank Group

Affordable, accessible technologies can democratize opportunities for EVERYONE to become innovators and inventors. Countries can take advantage of this opportunity to create new jobs, new industry and skilled workers to achieve further economic growth and increase competitiveness. Also, preparing citizens with problem solving skills and entrepreneurial mindsets helps solve various social problems in the country in an innovative manner.
 
In a 2013 report entitled “Disruptive Technologies: Advances that will transform life, business, and the global economy,” the McKinsey Global Institute identified 12 potentially economically disruptive technologies, including mobile internet, automation of knowledge work, the Internet of Things, advanced robotics, 3D printing, and advanced materials.
 
Team-based learning through
technologies. Photo: Saori
​Imaizumi/World Bank Group

​I touched upon how these disruptive technologies and low-cost technologies affect the pedagogy of skills development and education, as well as their implications for international development in my previous blogs (New Technologies for Children Learning STEM/STEAM Subjects and the 21st Century Skills and What’s the implication of 3D printers for the World Bank’s mission?) and a feature story (Communities of "Makers" Tackle Local Problems).
 
Elaborating on these posts, I will explore the topic on “how can kids, youth and adults prepare in response to rapid technological changes” from the pedagogy and institutional model perspectives. My analysis is derived from the lively discussion that I recently attended on “Exploring 3D Printing for Development,” organized by IREX and my work at the World Bank.

Fostering Private Sector Development in Fragile States: A Piece of Cake?

Steve Utterwulghe's picture
Private sector development (PSD) plays a crucial role in post-conflict economic development and poverty alleviation. Fragile states, however, face major challenges, such as difficult access to finance, power and markets; poor infrastructure; high levels of corruption; and a lack of transparency in the regulatory environment. 

The private sector has demonstrated its resilience in the face of conflict and fragility, operating at the informal level and delivering services that are traditionally the mandate of public institutions. However, in post-conflict situations, PSD can have predatory aspects, thriving on the institutional and regulatory vacuum that prevails. The private sector will need to create 90 percent of jobs worldwide to meet the international community’s antipoverty goals, so pro-poor and pro-growth strategies need to focus on strengthening the positive aspects of PSD, even while tackling its negative aspects.

Chinese Lessons: Singapore’s Epic Regression to the Mean

Danny Quah's picture

Across all recorded history, 99% of humanity has never invented a single thing. Yet, it is a truth universally acknowledged that long-run sustained progress in economic well-being arises from human creativity and innovativeness. In this regard, the average human and indeed the great majority of humanity over the last seven million years provide a completely misleading guide to what is possible.

Misapplied, the Law of Averages misinforms.
 


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