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Private Sector Development

Join webinar on WBI's 'The Power of Innovation'

Edith Wilson's picture

On Thursday, July 22, the World Bank Institute is launching a special e-issue of Development Outreach magazine whose theme is "The Power of Innovation," and we're inviting you to help us tell how innovation can be a game changer in solving the biggest global development problems.

Get involved by signing in to a special webinar on Thursday that will be led by WBI Innovation Practice Team Leader Aleem Walji, one of the lead authors of the Development Outreach special issue.

The webinar begins at 3 p.m., but sign in early -- by 2:30 or 2:45 p.m. -- because the number of participant slots is limited to 100.

In a post-crisis world, innovation may be the single most important driver of economic growth and competitiveness. The time is right to move development forward through creative uses of technology. We now have the capacity to scale up innovative approaches to meet the needs of people at the bottom of the pyramid when traditional markets fail to do the job.

How to do all this is detailed in "The Power of Innovation."  Top experts tell how to mobilize innovative solutions to reduce poverty--smarter, better, faster, and differently.

Lions on the Move: The Progress and Potential of African Economies

Susan Lund's picture

Editor’s Note: The following blog post was contributed by Susan Lund, Ph.D., Research Director of the McKinsey Global Institute, McKinsey & Company’s business and research arm. Dr. Lund will be making a presentation at the World Bank on July 20th summarizing the institute’s new report, Lions on the move: The progress and potential of African economies, which can be downloaded for free at www.mckinsey.com/mgi.

Tomorrow I will have the opportunity to present new research on Africa's economic prospects at the World Bank, home to many Africa experts and the source of so much invaluable research on the region. I have no doubt the combination of expertise from the McKinsey Global Institute and the World Bank will produce a lively discussion. As you well know, Africa continues to face many challenges, including poverty, disease and hunger. But our report shows Africa is also a land of great progress and potential. In this blog entry, I briefly summarize some of our key findings. We hope our report will provide a useful fact-base for the World Bank in its lending programs and dialogue with Africa’s policy makers and private sector.

We at McKinsey find many of our business clients are eager for insights into Africa’s recent acceleration in GDP growth. Africa’s collective economy grew at a 4.9 percent annual rate from 2000 through 2008, twice as fast as the pace of the preceding two decades. Africa is the third fastest growing economic region in the world, after emerging Asia and the Middle East. The continent’s combined economic output, valued at $1.6 trillion in 2008, is now roughly equal to Brazil’s or Russia’s. Africa offers investors the highest rate of return of any developing region.

Can the Business Environment Explain International Differences in Entrepreneurial Finance?

Leora Klapper's picture

It is well established that financial development is necessary for the efficient allocation of capital and firm growth, yet firm-level surveys have repeatedly found access to finance to be among the biggest hurdles to starting and growing a new business. For instance, in the World Bank’s Enterprise Surveys standardized dataset for 2006-2009, 31% of firm owners around the world report access to finance as a major constraint to current operations of the firm, while this figure is 40% for firms under three years of age.

In a recent paper with Larry Chavis and Inessa Love we address two types of questions: (1) What is the relationship between firm age and sources of external financing? and (2) Is there a differential impact of the business environment on access to financing by young versus old firms? 

To summarize, we find systematic differences in the use of different financing sources for new and older firms. We find that in all countries younger firms rely less on bank financing and more on informal financing. However, we also find that young firms have relatively better access to bank finance in countries with stronger rule of law and better credit information and that the reliance of young firms on informal finance decreases with the availability of credit information.

Let Good Sense Prevail in Bangladesh’s Garment Industry

Zahid Hussain's picture

The garment industry in Bangladesh has been subject to several tests of resilience in recent years—global recession, energy shortage, input price increases, and labor unrest. Of late, the labor unrest has escalated apparently triggered by disagreement over re-fixation of minimum wage. The workers, for quite some time now, have been pressing for adjustment in minimum wage that was last increased in 2006, after 12 years, from Tk. 930* (about $60 in PPP) per month to Tk. 1,662 (about $108 in PPP) per month. The government in April 2010 committed that a new pay-scale for the RMG workers will be announced before Ramadan, and formed a Wage Board for making the wage recommendations. For reasons not yet fully understood, the labor unrest was reignited recently without waiting to hear what the Wage Board’s recommendations are. However, it is abundantly clear that dissatisfaction with the nominal level of the minimum wage is at the center of the discord between garment owners and workers.

WikiLeaks: “The Intelligence Agency Of The People”

Naniette Coleman's picture

I am not sure if I stumbled upon a tool for fighting corruption or a conspiracy theorist’s dream. Either way, I will report and leave the judgments and interpretations to you, the reader. Before you begin reading this particular blog post, I would recommend that you close your door, pull down the shades and close all other browser windows; after all, you never know who could be watching.

WikiLeaks says they have a “history of breaking major stories in every major media outlet and robustly protecting sources and press freedoms.” They claim that “no source has ever been exposed and no material has ever been censored since their formation in 2007.”  WikiLeaks claims they have been “victorious over every legal (and illegal) attack, including those from the Pentagon, the Chinese Public Security Bureau, the Former president of Kenya, the Premier of Bermuda, Scientology, the Catholic & Mormon Church, the largest Swiss private bank, and Russian companies.” And, as if that is not enough of a soap box on which to stand, WikiLeaks claims to have “released more classified intelligence documents than the rest of the world press combined.” If you do not believe WikiLeaks, perhaps you might trust another source, Time Magazine who suggests that WikiLeaks “...could become as important a journalistic tool as the Freedom of Information Act.”

Ethiopian woman farmer's message: 'Be on our side'

Tom Grubisich's picture

The future of Ethiopia’s drought-threatened agriculture is in the hands of the country’s resourceful women farmers, Development Marketplace 2009 winner Ehsan Dulloo says.

Dulloo calls the women Ethiopian agriculture's “primary seed custodians.”  They’re the ones who “have to confront significant uncertainty in the climate every year and regularly face food shortages as crops fail,” he says.  That’s why Dulloo and the Institute of Bioversity Conservation in Addis Ababa – where he is a scientist – developed the winning project Seeds for Needs.  (Participating farmer Bertukan Kebede is shown with daughter in photo from project workshop.)

Seeds for Needs aims to benefit 200 woman farmers who are running out of options on their subsistence plots in the increasingly dry highlands of eastern Ethiopia.  Through Seeds for Needs, the woman farmers will get access to new strains of seeds -- produced at gene banks -- that may prove more hardy than the traditional varieties of seeds the farmers have been using to overcome droughts that are more frequent and intense because of climate change.

How Risky, Really, Is the Arab World for Investors?

Paul Barbour's picture

 

 

Recent events surrounding the Dubai World debt standstill raise broader questions about the political risks of investing in the Arab World. The good news is that growth and FDI have risen markedly in recent years; yet, risks undoubtedly remain. I researched the issue in depth for a new Perspectives from the Multilateral Investment Guarantee Agency (MIGA) that highlights the diversity of risks within the Arab World.

 

The Arab World, like other developing regions, provides both potential risks and rewards for international investors. The most important message from the Perspectives piece, though, is that risks vary significantly by country, by sector, and by project. As a result, it’s crucial not to take a one-size-fits-all approach to investing in the region.

 

Case in point: The Arab World is perceived as being prone to war and civil disturbance. Yet available data from the Berne Union shows no claims for war and civil disturbance in Arab countries. Here we see a considerable gap between perceptions and reality.

Job Creation and the Global Financial Crisis

David McKenzie's picture

Each new jobs report in the U.S. reignites the debate about whether the government is succeeding in stemming job losses and doing enough to help stimulate the creation of new jobs.

The U.S. has been far from alone in pursuing active labor market policies during the crisis. In a new note, David Robalino and I take stock of what labor market interventions countries have put in place during the recent crisis and summarize what we know about their effectiveness to date, as well as discuss the emerging issues countries are facing as they adapt these policies to a recovery period.


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