Policy Framework for Investment


Book Description

Drawing on good practices from OECD and non-OECD countries, the Framework proposes a set of questions for governments to consider in ten policy fields as critically important for the quality of a country’s environment for investment.










Republic of Mozambique


Book Description

This Diagnostic Report on Transparency, Governance and Corruption for the Republic of Mozambique highlights that the economy is at a turning point, and efforts to address governance and corruption vulnerabilities can have a lasting positive impact. The current levels of public debt have caused us to take a hard look at our governance and anticorruption framework and have prompted various reforms to address the vulnerabilities exposed in this framework. The governance and anticorruption framework is not consistently or comprehensively enforced. The rule of law is undermined by the insufficient implementation of existing legislation and regulations, including, in some cases through the absence of necessary regulations and explanatory guidelines. Civil society, the private sector, and the development partners in Mozambique also have critical roles to play. In addition, issues related to poor governance and corruption cannot be effectively addressed unless similar attention is paid to their transnational aspects, which need to be handled at a regional and global level, in multilateral and other international fora.




Investment Climate Reforms


Book Description

Private firms are at the forefront of the development process, providing more than 90 percent of jobs, supplying goods and services, and representing a significant source of tax revenues. Their ability to grow, create jobs, and reduce poverty depends critically on a well-functioning investment climate--defined as the policy, legal, and institutional arrangements underpinning the functioning of markets and the level of transaction costs and risks associated with starting, operating, and closing a business. The World Bank Group has provided extensive support to investment climate reforms. This evaluation by the Independent Evaluation Group (IEG) assesses the relevance, effectiveness, and social value of World Bank Group support to investment climate reforms as it relates to concerns for inclusion and shared prosperity. IEG finds that the World Bank Group has supported a comprehensive menu of investment climate reforms and has improved investment climate in countries, as measured by number of laws enacted, streamlining of processes and time, or simple cost savings for private firms. However, the impact on investment, jobs, business formation, and growth is not straightforward. Regulatory reforms need to be designed and implemented with both economic and social costs and benefits in mind; IEG found that, in practice, World Bank Group support focuses predominantly on reducing costs to businesses. In supporting investment climate reforms, the World Bank and the International Finance Corporation use two distinct but complementary business models. Despite the fact that investment climate is the most integrated business unit in the World Bank Group, coordination is mostly informal, relying mainly on personal contacts. IEG recommends that the World Bank Group expand its range of diagnostic tools and integrate them in the areas of the business environment not yet covered by existing tools; develop an approach to identify the social effects of regulatory reforms on all groups expected to be affected by them beyond the business community; and exploit synergies by ensuring that World Bank and IFC staff improve their understanding of each other's work and business models.




New Voices in Investment


Book Description

This study analyzes the characteristics, motivations, strategies, and needs of FDI from emerging markets. It draws from a survey of investors and potential investors in Brazil, India, South Korea, and South Africa.




Enhancing the Climate Resilience of Africa's Infrastructure


Book Description

To sustain Africa’s growth, and accelerate the eradication of extreme poverty, investment in infrastructure is fundamental. In 2010, the Africa Infrastructure Country Diagnostic found that to enable Africa to fill its infrastructure gap, some US$ 93 billion per year for the next decade will need to be invested. The Program for Infrastructure Development in Africa (PIDA), endorsed in 2012 by the continent’s Heads of State and Government, lays out an ambitious long-term plan for closing Africa’s infrastructure including trough step increases in hydroelectric power generation and water storage capacity. Much of this investment will support the construction of long-lived infrastructure (e.g. dams, power stations, irrigation canals), which may be vulnerable to changes in climatic patterns, the direction and magnitude of which remain significantly uncertain. Enhancing the Climate Resilience of Africa 's Infrastructure evaluates -using for the first time a single consistent methodology and the state-of-the-arte climate scenarios-, the impacts of climate change on hydro-power and irrigation expansion plans in Africa’s main rivers basins (Niger, Senegal, Volta, Congo, Nile, Zambezi, Orange); and outlines an approach to reduce climate risks through suitable adjustments to the planning and design process. The book finds that failure to integrate climate change in the planning and design of power and water infrastructure could entail, in scenarios of drying climate conditions, losses of hydropower revenues between 5% and 60% (depending on the basin); and increases in consumer expenditure for energy up to 3 times the corresponding baseline values. In in wet climate scenarios, business-as-usual infrastructure development could lead to foregone revenues in the range of 15% to 130% of the baseline, to the extent that the larger volume of precipitation is not used to expand the production of hydropower. Despite the large uncertainty on whether drier or wetter conditions will prevail in the future in Africa, the book finds that by modifying existing investment plans to explicitly handle the risk of large climate swings, can cut in half or more the cost that would accrue by building infrastructure on the basis of the climate of the past.




Africa's Private Sector


Book Description

Why is the private sector yet to take off in much sub-Saharan Africa? Drawing on a unique set of enterprise surveys, Vijaya Ramachandran and her co-authors identify the biggest obstacles: inadequate infrastructure (especially unreliable electricity and crumbing roads) and burdensome regulation. They then show how ethnic minorities dominate the private sector in many countries, inhibiting competition and demands for a better business environment, and thus impeding the emergence of an entrepreneurial middle class. Based on this careful diagnosis, the authors suggest investing in infrastructure and reforming regulation to lower the cost of doing business, and increasing the access to education of a broader-based business class that crosses ethnic divides. Book jacket.




Unlocking Africa's Business Potential


Book Description

Africa welcomes business investment and offers some of the world's highest returns and impacts Africa has tremendous economic potential and offers rewarding opportunities for global businesses looking for new markets and long-term investments with favorable returns. Africa has been one of the world's fastest-growing regions over the past decade, and by 2030 will be home to nearly 1.7 billion people and an estimated $6.7 trillion worth of consumer and business spending. Increased political stability in recent years and improving regional integration are making market access easier, and business expansion will generate jobs for women and youth, who represent the vast majority of the population. Current economic growth and poverty-alleviation efforts mean that more than 43 percent of the continent's people will reach middle- or upper-class status by 2030. Unlocking Africa's Business Potential examines business opportunities in the eight sectors with the highest potential returns on private investment—the same sectors that will foster economic growth and diversification, job creation, and improved general welfare. These sectors include: consumer markets, agriculture and agriprocessing, information and communication technology, manufacturing, oil and gas, tourism, banking, and infrastructure and construction. The book's analysis of these sectors is based on case studies that identify specific opportunities for investment and growth, along with long-term market projections to inform decision-making. The book identifies potential risks to business and offers mitigation strategies. It also provides policymakers with solutions to attract new business investments, including how to remove barriers to business and accelerate development of the private sector.