Category: Policy

Latin America and the Caribbean, Policy

Stabilising Argentina’s Public Expenditure

By Dr. Sebastian Galiani, Professor of Economics, University of Maryland 1

development-financeThe present government in Argentina inherited a particularly high level of public spending compared to the country’s own history. Consolidated public expenditure for the three levels of government − nation, province and municipalities − reached 42.2% of Gross Domestic Product (GDP) in 2015. This is an almost 17 point hike from before the 2001-2002 crisis when this expenditure was 25.6% of GDP.

Three areas drove such growth in public spending. First, the public wage bill grew 4.8 points of GDP since 1998 − mainly driven by the provinces and municipalities. Second, pension benefits grew 4.7 points of GDP since 1998. And third, private transfers increased 5.0 points of GDP, of which subsidies to public services represented 3.6% of GDP. In contrast, public investment almost did not grow during 1998 to 2015, at 1.4 points of GDP. The end result was a level of primary spending that is higher than that of all Argentina’s Latin American neighbors, and up to 8 percentage points above what is expected for a country at its level of GDP per capita.

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Africa, Français, Policy, SME, Youth

Jeunes : oser, innover, entreprendre !

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Par Awa Caba, Co-fondatrice, Sooretul 1

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THIES, SENEGAL - Senegalese woman sells fruits at the market.jpg
Vendeurs de fruits à Thiès, Sénégal. Photo: shutterstock.com

Au Sénégal, les Petites et Moyennes Entreprises (PME) ou structures de production et transformation des produits agricoles se trouvent essentiellement dans la banlieue de la capitale (Guédiawaye à 15 km de Dakar) et dans les zones rurales autour de Kaolack, Ziguinchor, Kédougou, Thiès et Saint-Louis. Elles disposent de peu de moyens techniques et financiers pour se développer et commercialiser leurs produits. Leurs produits manquent notoirement de visibilité et de présence sur le marché local, dans les boutiques et les grandes surfaces.

La stratégie de pénétration du marché par ces structures s’effectue, en général, à travers la participation aux foires internationales. Ce sont malheureusement les seules occasions de vente à très grande échelle. Ce déficit des produits locaux sur le marché a plusieurs causes: peu de moyens mis en œuvre pour développer le secteur, des PME insuffisamment sensibilisées aux enjeux du packaging, et un manque de d’incitation au niveau politique pour favoriser la consommation de produits locaux.

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Policy, SDGs, Youth

What youth need: A greater focus on job quality

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By Niall O’Higgins, Senior Research Specialist, Youth Employment Programme, International Labour Organisation (ILO)

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women-africaFor young people, successful entry into the world of work – that is, successful transition from education to employment – means more than simply finding a job. Successful transition occurs only when young people find decent work. What is actually meant by this has been the subject of much debate for a number of years; but its essence is encapsulated in the ILO’s notion of freely chosen and productive employment.

While it can be hard to define precisely what ‘decent work’ looks like, it is fairly clear what it is not. It is not informal employment. It is not work that provides insufficient income to meet basic needs. It does not involve excessive working time or any form of compulsion. Typically, it does involve some degree of job security, protection from arbitrary dismissal, access to social protection, such as health insurance and pension schemes, and freedom of association.
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Development Matters
Human Development, Policy, Youth

Política 2.0. Combinando la protesta con la propuesta

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De Max Trejo, Secretario General, Organismo Internacional de Juventud para Iberoamérica (OIJ)

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Política 2.0. CombinandoLas formas de participación política juvenil son múltiples, dinámicas e interconectadas y demandan una comprensión de lo político amplia y flexible para no subestimar el compromiso de las personas jóvenes con la transformación. Por ejemplo, uno de los puntos destacados en los análisis sobre el tema es el bajo involucramiento de la población joven en los procesos electorales. En este sentido, el Informe Mundial sobre Juventud de la ONU (2016) señala que en los 33 países consultados sólo el 44% de la población joven “siempre vota”, frente al 60% de adultos.

En Iberoamérica, donde las juventudes representan más del 25% de la población, la situación no es diferente. Por citar algunos casos, en México, que tendrá elecciones presidenciales en 2018 y donde las y los jóvenes representan el 30% del padrón electoral, el registro histórico muestra que, aunque la participación de quienes votan por primera vez es del 69%, ésta disminuye al 53% entre los 20 a 29 años (INE, 2016). A su vez, en Chile, que experimentó el mismo proceso en 2017, la tendencia muestra que las juventudes tienen la participación electoral más baja de la población, aportando cerca del 34% del total de la abstención (PNUD, 2017).
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Development Matters
Gender, Women and Girls, Policy, SDGs

Unpaid care and domestic work – a global challenge with local solutions

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By Clare Bishop, Senior Consultant for the OECD Policy Dialogue on Women’s Economic Empowerment

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Unpaid care and domestic work
Women working in Mali.  Photo: Shutterstock.com

The pervasive issue of unpaid care and domestic work in the global fight against gender inequality presents itself in many different contexts and guises. Yet, the one constant thread is the impact of unpaid care and domestic work on time availability. The disproportionate workload borne by women –that hinders their full engagement as economic actors in paid employment, their participation in education and training, and their overall quality of life – is widely recognised. Solutions are diverse. They include technological ones to improve water supplies and save time and labour. They embrace policies and practical ways of providing childcare facilities and paternal leave. And they call for addressing cultural norms underlying the unequal gender division of labour for unpaid work.

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Migration, Policy

Feeding the Global Compact on Migration: How do immigrants contribute to developing countries’ economies?

By Michelle Leighton, Chief, Labour Migration Branch, International Labour Organization (ILO), and Theo Sparreboom, Senior Economist, ILO

Woman-sewing-Ha-Tay-Vietnam
Photo: Shutterstock.com

“Before going to Thailand, I already had sewing skills but I did not have the money to open a store. Instead, I had to work as an employee and earned a small income. When I got back to my hometown, I had some savings and was able to open a tailor shop.1”

– Female migrant worker from Viet Nam

Contrary to popular belief, migrants have a limited impact on labour market outcomes in low- and middle income countries.2 They are unlikely to take jobs from native-born workers. In some countries, including South Africa, immigration may even create jobs and raise the incomes of the native-born population.

One reason why migrants do not take away jobs is that they are often in jobs that do not appeal to native-born workers. These include so-called non-standard forms of employment such as temporary work, agency work, and dirty or dangerous work. This is not surprising since for many people migration is a necessity and not a choice. Poverty or lack of opportunity encourages people to look for prosperity abroad. While regular channels of migration exist, they are often bureaucratic and expensive. Migrants who use cheaper options may end up in situations of exploitation and abuse.
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Policy

How to Build Inclusive Digital Economies

By Atul Mehta, Director, IFC, Telecom, Media & Technology, Fintech, Venture Capital & Funds; Ceyla Pazarbasioglu, Senior Director, World Bank Group, Finance, Competitiveness and Innovation Global Practice; and Jose Luis Irigoyen, Senior Director, World Bank, Transport and Digital Development Global Practice

 

digital-economyIf we wish to create a future built on shared prosperity, digital technology will be critical.

Today, of the world’s 10 largest companies by market capitalisation, six are technology companies. And of those, only two were in the top 10 just five years ago — which gives you a sense of how quickly the global economy is being disrupted.

In fact, as technology innovation accelerates, it may be the best path to inclusive growth. Extending Internet access in developing countries to levels seen in developed countries could enhance productivity by as much as 25%, according to Deloitte. The resulting economic activity could generate USD 2.2 trillion in additional GDP and more than 140 million new jobs.

At the World Bank Group, we have been putting quite a lot of thought into understanding what it takes to create a successful and inclusive digital economy, in light of our mission to end extreme poverty and boost shared prosperity. Technology can be a force for good — by promoting economic inclusion, efficiency, and innovation. But it can also cause upheaval — by displacing jobs or imperiling the security of personal and government data, and even critical infrastructure. And it can widen the digital divide — increasing the gap between those who benefit from technology and those who are excluded and risk falling further behind. That’s why technology’s risks and opportunities must be carefully managed.
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Development Matters19 Comments
Development finance, Green transition, Policy

Maximising the public-private investment multiplier

By Alain de Janvry and Elisabeth Sadoulet, Professors at the University of California at Berkeley and Senior Fellows at the FERDI
 

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At the FERDI-IDDRI conference on “Development, Climate and Security” held in Paris on January 15, 2018, Barbara Buchner from the Climate Policy Initiative reported on the state of global climate finance flows for mitigation and adaptation. She made two points. First, finance is under-invested to combat climate change if the COP21 target in temperature increase is to be met. Second, private investment’s role in complementing public investment in climate finance is large, with an estimated 2/3 private for 1/3 public in current total contributions. This stresses the fundamental part private investment can play in meeting the COP21 objectives, particularly at a time when governments face multiple demands on public expenditures.

With public investment targeted to induce private investment, this raises the issue of public investment’s effect as a private investment multiplier. A useful way of thinking about the under-investment issue is consequently how to target public investment to maximise the public-private investment multiplier.

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Development Matters
Asia, Policy

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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Development Matters
Africa, Data, Food security, Policy

Food prices must drop in Africa: How can this be achieved?

By Thomas Allen, Sahel and West Africa Club Secretariat (SWAC/OECD)

After the 2007-08 crisis, we got into the bad habit when discussing food prices of focusing almost exclusively on volatility and overlooking the question of the level of prices. Of course, reasons were good for this; between February 2007 and February 2008, world food prices jumped 60%. These increases combined with local factors had dramatic effects, particularly in West Africa, where millions of households already had insufficient income to cover their basic nutritional needs. Today, according to OECD and FAO projections, food prices are expected to remain stable in the medium-term. This is a good time to re-examine some important questions.

Are food products cheap in sub-Saharan Africa?

The question may seem surprising, as food is no doubt cheaper in the poorest countries. This is the first thing that any tourist would tell you, and it is confirmed by statistics. Sub-Saharan countries do indeed have the lowest prices in absolute terms (see figure). African food products are therefore much more affordable…for the European consumer. What about for the African consumer? Continue reading “Food prices must drop in Africa: How can this be achieved?”

Lia Beyeler9 Comments