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Private Sector Development

How do courts impact the business climate… really?

Georgia Harley's picture
Tim Cordell, Cartoonstock.com

We know that the justice system dampens the business climate in many of the countries where we work. In Bank reports, national strategies, and in common parlance, we lament that poorly performing courts delay business activity, undermine predictability, increase risks and constrain private sector growth. Going further, we conclude that weak justice systems disproportionately hamper micro, small and medium sized enterprises (MSMEs) because they have less buffer to absorb these problems - which can become make-or-break for their businesses.

So that’s the ‘what’ but, precisely, how, do courts impact businesses?
 

Is acceleration the panacea for scaling growth entrepreneurs? Reflections from XL Africa

Natasha Kapil's picture
XL Africa entrepreneurs at the XL Africa Residency, Cape Town, South Africa.
Digital entrepreneurs at the XL Africa Residency, Cape Town, South Africa.





The World Bank Group has helped strengthen the ecosystem for digital entrepreneurs and seed digital incubators in several countries around the world, including KenyaSenegal, and South Africa, just to name a few. Start-ups in these “mLabs” have developed or improved more than 500 digital products or services, and some 100 early stage firms raised over $15 million in investments and grant funding. But is this the answer to scaling growth entrepreneurs on the continent?

Strategies that work: New South Wales leads infrastructure development in Australia

Mar Beltran's picture


Photo: Dylan's World / Flickr Creative Commons

A decade before the financial crisis, Australia was a bastion of infrastructure successes. The country’s four major airports (Melbourne, Perth, Brisbane and Sydney) were privatized. Numerous greenfield projects were also launched, for example, extensive highway construction, and new projects were continually added to the pipeline.
 
Some of these new projects, however, faced significant difficulties: some were constructed without robust performance data, leading to overambitious forecasting and overaggressive financial structures. In part, this led Australia to suffer multiple high-profile defaults and brought the country’s infrastructure project pipeline to a halt.
 
But, today, Australia is displaying signs of promise once again. And one state, in particular, is among the developed world’s GDP growth outliers: New South Wales (NSW). The state’s economic growth has reached 3.5%, outstripping the country’s average rate of 2.8%, and even the G20 average (which stands at 3%). As such, NSW’s infrastructure model has likely had a multiplier effect on economic activity—and has been identified as a potential playbook for other jurisdictions.

In evaluating development projects, pressing for better tools in measuring job creation

Alvaro Gonzalez's picture
We learned that from potatoes and waste recycling in Lebanon to aquaculture and poultry in Zambia, it is possible to have a standardized base guideline; however, the methodology still needs to be adjusted for specific economic, political and social contexts. (Photo: Dominic Chavez / World Bank)


There is a well-known idiom saying that you can't compare apples and oranges. But this is precisely the challenge researchers often face when it comes to measuring the jobs impact of development projects. Having standardized impact evaluation tools and methods is a milestone for private sector-led job investments, and it allows international financial institutions, development practitioners, and governments to build on existing knowledge to develop solutions. And this is precisely one of the goals that Let's Work partnership, composed of 30 different institutions, is currently pursuing; to track the number of jobs generated from private sector-led interventions, the quality of those jobs, and how inclusive those jobs are in a standardized way, so apples are compared to apples and oranges to oranges.

Your Cow, Plant, Fridge and Elevator Can Talk to You (But Your Kids Still Won’t!)

Raka Banerjee's picture
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The Internet of Things (IoT) heralds a new world in which everything (well, almost everything) can now talk to you, through a combination of sensors and analytics. Cows can tell you when they’d like to be milked or when they’re sick, plants can tell you about their soil conditions and light frequency, your fridge can tell you when your food is going bad (and order you a new carton of milk), and your elevator can tell you how well it’s functioning.

At the World Bank, we’re looking at all these things (Things?) from a development angle. That’s the basis behind the new report, “Internet of Things: The New Government to Business Platform”, which focuses on how the Internet of Things can help governments deliver services better. The report looks at the ways that some cities have begun using IoT, and considers how governments can harness its benefits while minimizing potential risks and problems.

In short, it’s still the Wild West in terms of IoT and governments. The report found lots of IoT-related initiatives (lamppost sensors for measuring pollution, real-time transit updates through GPS devices, sensors for measuring volumes in garbage bins), but almost no scaled applications. Part of the story has to do with data – governments are still struggling how to collect and manage the vast quantities of data associated with IoT, and issues of data access and valuation also pose problems.

How PPIAF leveraged $17.1 billion for infrastructure by focusing on the critical upstream

François Bergere's picture


Photo: BrilliantEye | iStock

As the only global facility specifically dedicated to reinforcing the legal, institutional and policy underpinnings of private sector participation in infrastructure—which we call the critical upstream—we at the Public-Private Infrastructure Advisory Facility (PPIAF) realize we have a key responsibility to developing countries.

That responsibility is to help client governments unlock their potential by de-risking investments and creating an enabling environment for private sector participation, itself a condition to achieving the Sustainable Development Goals and climate-smart objectives. As such, PPIAF fits neatly into the new Maximizing Financing for Development (MFD) approach to crowd in the private sector, an initiative launched by the World Bank Group and other multilateral development banks last year.

Why investors must take a chance in the world's most fragile countries

Stephanie von Friedeburg's picture
Microfinance in DRC. © Anna Koblanck/IFC
Microfinance in DRC. © Anna Koblanck/IFC


Fragility, conflict and violence affect more than two billion people across the globe. And while poverty on the whole is declining, that's not the case in countries affected by conflict.

It is these countries plagued by near-constant political and economic instability that are often the ones most in need of private investment. Yet they are also the places few private investors are willing to go. The risks seem to outweigh the rewards.

How can we bridge the gap between citizens and state? Previewing the Open Budget Survey 2017

Vivek Ramkumar's picture

 Photo © Dominic Chavez/World Bank
Photo © Dominic Chavez/World Bank

On 30 January 2018 the International Budget Partnership (IBP) will release the Open Budget Survey 2017 – the latest round of the world’s only independent and comparable assessment of budget transparency, citizen participation, and independent oversight institutions in the budgeting process.

The OBS 2017 findings on the systems and practices that countries have in place to inform and engage citizens — or not — in decisions about how to raise and spend public resources, and on the institutions that are responsible for holding government to account, come at a critical juncture. Around the world, there has been a decline in public trust in government, in part due to instances of corruption but also because of dramatic increases in inequality. In a number of countries, leaders who have disguised their intolerant and reactionary agendas with populist rhetoric have been swept into power by those who’ve been left behind. These political shifts have driven out many government champions of transparency and accountability — especially those from countries in the global south.  More broadly across countries, there has been shrinking of civic space, rollbacks of media freedoms, and a crackdown on those who seek to hold government to account, including individual activists, civil society organizations, and journalists.

Can Islamic finance unlock funds for development? It already is

Amadou Thierno Diallo's picture

Also available in  العربية | Français



Two years in the making, last week the Islamic Development Bank Group (IsDBG) and the World Bank Group officially launched the landmark report Mobilizing Islamic Finance for Infrastructure Public-Private Partnerships at a discussion broadcast online from Washington, D.C. We illustrated that, through partnerships, the power of Islamic finance can be instrumental in unlocking financial resources necessary to meet the tremendous demand for critical infrastructure.
 
In fact, infrastructure PPPs funded with Islamic finance have proliferated in the Middle East, and have flourished in other countries throughout Africa and Asia. Both of our institutions are committed to leverage our competitive advantages, achieve effective interventions, and yield measurable results in scaling up and broadening the use of Islamic finance.

Building trust and improving the business environment: A win-win proposition

Steve Utterwulghe's picture



Since the Edelman company began tracking trust with its Trust Barometer, never has the world seen such an “implosion of trust.” In 2017, two-thirds of countries fell into “distruster” territory with trust levels of below 50 percent. Governments are now distrusted by investors in 75 percent of countries, and the same  is the case for business in 46 percent.


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