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Private Sector Development

The world’s top 100 economies: 31 countries; 69 corporations

Duncan Green's picture

The campaigning NGO Global Justice Now (formerly World Development Movement) have done us all a favour by updating the table comparing the economic might of the largest countries and corporations. Headline finding? "The number of businesses in the top 100 economic entities jumped to 69 in 2015 from 63 in the previous year’ according to the Guardian’s summary.

The last such table that I know of was produced by the World Bank, and became one of FP2P’s all time most read posts (it included cities as well as countries, which made it even more interesting).

People complained that the Bank table compared apples and pears – national GDP and corporate turnover. GJN have tried to do a better job by comparing government revenues (from the CIA World Factbook) and corporate turnover (Fortune Global 500 – ditto). That reduces the country figure – in the case of Argentina, revenues come to about 30% of GDP, generally a higher slice for developed, and lower for poorer countries, and so boosts the relative importance of transnationals. Is that a fairer comparison? Over to the number crunchers on that one.

Understanding institutional investors for infrastructure – The collaborative model

Rajiv Sharma's picture


One of the key objectives for our research program at the Stanford Global Projects Center is to understand how the largest sources of capital in the world can be channeled into critical infrastructure and development projects most in need of it. In particular, we focus on long-term institutional investors (pension funds and sovereign wealth funds) and private development firms at one end of the spectrum, and government procurement agencies and departments at the other. We are essentially trying to assist in overcoming a number of inefficiencies that seem to be apparent in linking the original source of capital to projects on the ground. In this blog post, we would like to highlight some of the latest trends and issues confronting the institutional investor space; in subsequent blogs, we will showcase some of the work we have done at the government procurement level to facilitate investment.

Opening markets: Mexico uncovers and slashes local barriers to competition

Marialisa Motta's picture

In the state of Chiapas, Mexico — where nearly 1 million people live in moderate to extreme poverty — bus fares have been too high, and the availability of buses has been limited. Over four years, consumers on a single route have paid $2.5 million more than necessary. Tortillas in states across Mexico are more expensive than they need to be. In one state, firms overcharge for road construction by an estimated 15 percent, making it difficult to provide the high-quality transport services for cargo and construction materials that are necessary to build a logistics hub to diversify the state economy beyond petroleum. Another state has a very dynamic economy, hosting a greater density of industrial parks than comparable states. Given the positive spillover effects — industrial activity boosting local employment, demand, and purchasing power — the state expected growth in retail markets. Yet, stores have not been opening. Yet another state relies on tourism to generate business opportunities and jobs, including for poor people. However, until recently, tourists found that commercial establishments in the state’s primary municipality closed in the evenings and at night, often preventing them from going shopping.
 
What do these examples have in common? Local barriers to competition.

In the past few years, the Mexican Federal Competition Authority (COFECE) and Better Regulation Authority (COFEMER), internationally recognized institutions, as well as the World Bank Group, have pointed out that subnational regulations restrict competition in local markets. In many municipalities in Mexico, regulations and government interventions allow market incumbents to deny entry to new firms, to coordinate prices, to impose minimum distances between outlets, or to grant incumbents exclusive rights to artificially protect their dominant position. In total, a lack of vigorous marketplace competition costs the Mexican economy about one percentage point of GDP growth each year – a shortfall that affects the country’s poorest households by an estimated 20 percent more than its richest households. Most countries, however, have never systematically scrutinized local barriers to competition.


 
To address such issues effectively, competition policy experts from the World Bank Group’s Trade & Competitiveness Global Practice have developed an innovative tool – the Subnational Market Assessment of Competition (SMAC) – to systematically identify, prioritize and support the removal of local barriers to competition. (The SMAC is built from the World Bank Group Markets and Competition Policy Assessment Tool, or MCPAT.) The World Bank Group designed the SMAC to prioritize the reform of the rules and practices that most severely prevent healthy competition in the primary sectors for each state’s economic development.

Arab world start-ups need partners, pathways, and talent to access markets

Jamil Wyne's picture
 dotshock | Shutterstock

Market access is critical to the growth of start-ups in the Middle East and North Africa (MENA). Start-ups seeking to scale up their operations need to think in terms of regional, rather than solely national, growth strategies from day one. However, maneuvering themselves into new countries is a complex process, and one that hinges on finding the pathways, people, and partners for market expansion.

Delivering water and sanitation services in Niger: challenges and results

Taibou Adamou Maiga's picture

Niger is one of the world’s poorest countries (44.5% of poverty incidence in 2014). The country faces a number of challenges in meeting the national (PROSEHA, the National Program for sustainable development) and global targets to increase access to sanitation and potable water, particularly in rural areas where the access to water is 44.2% and 7% for sanitation (2015 Ministry of Water and Sanitation data).

Overcoming these challenges while satisfying increasing demands for better or expanded service, the government began investigating options that bring in the know-how of the private sector. This has led to a growing domestic private sector provision of services in Niger.

Lending a hand to transform the energy mix of an island nation

Kruskaia Sierra-Escalante's picture
 IFC
The BMR Jamaica Wind project, Jamaica’s largest private-sector renewable energy project. Photo: IFC


Last month, a new wind farm began spinning its blades in Jamaica. At 36 megawatts (MW) it became Jamaica’s largest private-sector renewable energy project, set to diversify the country’s energy matrix, reducing its high electricity prices and generating significant environmental and social benefits.

Financing the future of America's infrastructure through PPPs

Doug Maher's picture

Photo Credit: Mark Anderson via Flickr Creative Commons

If you live in urban areas – which, according to the U.S. Census Bureau, over 80% of Americans do – you know the feelings associated with traffic. Busy roadways and overcrowded public transit lines are just some of the many consequences of the increased need for infrastructure investment in the U.S. To grow sustainably, cities must continue to make major investments in infrastructure – across healthcare, transportation, utilities, buildings, energy and even within our industrial base.

Building on Six Decades of Partnership toward a Promising Future

Annette Dixon's picture
VP
Annette Dixon, World Bank Vice President for the South Asia Region and Idah Pswarayi-Riddihough, World Bank Country Director for Sri Lanka and the Maldives in conversation with an Internally Displaced Person (IDP) living in a temporary welfare camp. Photographer: Mokshana Wijeyeratne

Sri Lanka amazes me in many ways, with its smiling faces among a rich tapestry of cultures, diversity, and natural wonders. On this fourth visit and first time in the Northern Province, I once again found a resilient and industrious people eager to build their lives and advance the country together.

As Sri Lanka recovers from an almost three-decade long conflict, much progress has been made. I am proud that the World Bank Group has been a close and trusted partner with the country to help restore lives, livelihoods, and unlocking the potential of all of its people, inclusive of men and women, diverse geographic locations, as well as different ethnic and religious backgrounds.

Prioritizing infrastructure investments: Framework and forward momentum

Cledan Mandri-Perrott's picture


The Infrastructure Prioritization Framework (IPF) is a quantitative tool that synthesizes and displays financial and economic as well as social and environmental indicators at the infrastructure project level. Two composite indices or dimensions are displayed in a Cartesian plane to offer a simplified picture of comparative performance alongside the public budget constraint for a particular sector.
 

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