Raising capital for intermediary cities

By Jeremy Gorelick, Senior Infrastructure Finance Advisor, USAID’s* WASH-FIN (Water, Sanitation and Hygiene – Finance) Programme, and Joel Moktar, Project Leader, Open Capital Advisors


This blog is part of an ongoing series exploring the intersection between intermediary cities in developing countries and sustainable development


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Intermediary cities are the fastest growing cities in the developing world. Often referred to as secondary or second-tier cities, intermediary cities typically have a population of between 50,000 and one million people. They play a fundamental role in connecting both rural and urban areas to basic facilities and services.[1] Driven by population growth and rural-urban migration, intermediary cities worldwide are projected to grow at almost twice the rate of megacities (those with more than 10 million inhabitants) between now and 2030.[2] Of these, the fastest growing cities are in Africa and Asia.[3]

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Normatively weak institutions can be functionally strong: A surprising lesson from China

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By Yuen Yuen Ang, Associate Professor of Political Science at the University of Michigan and the author of “How China Escaped the Poverty Trap


This blog is part of an ongoing series evaluating various facets
of
Development in Transition. The 2019 “Perspectives on Global Development” on “Rethinking Development Strategies” will add to this discussion


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Guangzhou, China. Photo : shutterstock.com

For the past decades, policymakers and development practitioners have clung to the idea that “good governance” is the solution to poverty. If only poor countries could eradicate corruption, enforce laws, hold leaders accountable and achieve a checklist of best practices, their economic and social problems would be resolved.

This thinking, however, runs into a chicken-and-egg problem: in the first place, it’s hard for poor countries to quickly and meaningfully establish good governance. Indeed, if it were easy to achieve good governance, poor countries would have done it long ago.

But if insisting on one-size-fits all good governance is not the solution, then what is the alternative? My research on China’s development reveals a surprising lesson: normatively weak institutions can be functionally strong. Seen through first-world lenses, the norms and structures found in low-income, pre-industrialised countries are often regarded as “weak” or “backward,” that is, as impediments to development. In fact, these institutions can be creatively adapted or repurposed to kick-start development.
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The institutional key to step-up disaster risk management in Thailand

By Andrea Colombo, Jr. Policy Analyst, and Chloé Stutzmann, Consultant, OECD Development Centre

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Thailand, Nonthaburi flood, 2011.
Photo: Suwan Wanawattanawong / Shutterstock.com

The increasing exposure of people to disaster worldwide was a key issue during last week’s World Water Forum in Brasilia. By 2050, almost 2 billion people in the world will be at risk of floods. At the same time, between 5 and 6 billion people might live in areas that will be water-scarce.

Thailand is no exception to this global trend. The 2011 floods affected 16 million people and claimed over 1 000 lives. The economic damage accounted for over USD 9 billion in the city of Bangkok alone (OECD, 2015). In 2016, drought was declared in 14 provinces, and water rationing was imposed as major dams dropped to their lowest levels since 1994. Such flooding and drought moreover negatively affect agricultural production, especially in Thailand’s rural provinces in the North, the Northeast and the South regions, where agriculture’s share in GDP exceeded 20% in 2015, compared to the 9% national average.
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Are women holding up Chinese and African skies?

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By Hannah Wanjie Ryder, CEO, Development Reimagined, and China Representative, China Africa Advisory


Learn more about this timely topic on the upcoming
OECD Global Forum on Development
Register today to attend


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In 1968, Chairman Mao might have proclaimed that women hold up half the sky, but it remains a sad fact that the majority of top African and Chinese politicians are still men. This is also the case for CEOs of state-owned and other large Chinese and African businesses. No woman has been president of any African country since Ellen Johnson Sirleaf stepped down last year, and in a recent study by the World Economic Forum (WEF), China was ranked 77th out of 144 countries in terms of female political representation, and 86th for economic participation and opportunity. Only eight sub-Saharan African countries featured overall in the top 50 of the same index. When I attended the Forum on China Africa Cooperation (FOCAC) in 2015, which has been running since 2000 and tends to be a very government-led affair, only two women were prominent – the head of the African Union Commission at the time Nkosazana Dlamini-Zuma, and Kenya’s then Foreign Minister Amina Mohamed.

But I am now noticing an interesting new phenomenon: Women from all over the world seem to be aiming to shape China-Africa relations.

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Enabling Asian SMEs to thrive in a digital world

By Dr. Deborah Elms, Executive Director, Asian Trade Centre, Singapore

e-commerce-digital-business-dmA young lady in a remote village in northern Vietnam is using new technology to create and sell her family’s traditional silver necklace designs to customers across the region and even globally who can collect their purchases directly from 3D printing facilities.

Another small firm in Bangkok has transformed its eyewear company to sell online using a mobile app that allows users to visualise glasses from different angles as the phone tilts. Shoppers are finding and increasingly buying these products from all across the region.

These small companies — and many more like them — show the promise of e-commerce and digital trade to transform business in Asia. The tiniest firm in the most remote location can become a “micromultinational.”

But this promise comes with a catch: such business practices work if, and only if, governments in the region are able to build a supportive and enabling policy environment. For smaller firms, complicated or difficult policies that cause delays and drive up costs can be impossible to overcome.
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Youth Employment and Inclusive Growth: Part of the same coin in Cambodia

By Emmanuel Asomba, Development Policy Researcher, and Ji-Yeun Rim, Youth Inclusion Project Co-ordinator, OECD Development Centre

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Courtesy ©UNV Cambodia May 31, 2016

Some countries in the South Asia and Pacific region are experiencing a rapid increase in the number of working-age people. This will create some opportunities as it will contribute to reducing the dependency ratio and increasing the possibilities for social cohesion policies. But if these people fail to find decent jobs, then per capita income may slow down. With less income, people face lower living standards and difficulties accumulating capital and assets. For young people, these changes potentially bring significant challenges. Take, for example, youth in Cambodia.

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Broadening financing options for infrastructure in Emerging Asia

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By Kensuke Tanaka, Head of Asia Desk, and Prasiwi Ibrahim, Economist at Asia Desk, OECD Development Centre 


Learn more about this timely topic at the upcoming
1st International Economic Forum on Asia
Register today to attend on 14 April 2017!


Kensuke-Prasiwi-AsiaForumAgreeing on the need for new infrastructure is one thing; finding a sustainable way to finance it is another. According to the ADB, an estimated USD 26 trillion (or USD 1.7 trillion per year) will need to be invested in infrastructure in its developing member countries1  between 2016 and 2030 if these economies are to maintain their growth momentum, eradicate poverty and respond to climate change2  .Given the scale of investment needed, countries in the region will not have sufficient funds to meet demand. Indeed, financing infrastructure investment has been a considerable challenge for the region. Political factors can further complicate financing when they lead to the inefficient allocation of public funds. How best to finance infrastructure is, therefore, a key concern for policy makers in the region.
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