The Asian Institute of Management, an international management school based in Manila, Philippines, published the video below to illustrate how increased education translates into increased earnings and better functioning societies.
Did you know that in Kenya less than 15% of the population is covered with old age security? This means that many Kenyans are facing a vulnerability of retiring into poverty. But this is not accidental since established factors identified in studies commissioned by Retirement Benefits Authority (RBA) necessitate this situation.
However, Kenya is starting to tackle some of these factors and to help increase pensions coverage to reach more Kenyans to help reverse the state of affairs.
1. A chief factor limiting pension growth is that the formal sector is creating fewer jobs. Despite the positive economic growth registered in the country, employment growth in the formal sector is slow. For example, only 128,000 out of the 841,600 new jobs created in 2015 were formal. This has a direct effect on the pension services since the structure of the industry is still highly biased towards the formal employment model.
Transactions that facilitate employers and employees to contribute are generally conducted from the pay slip, and formal employers adhere more to the regulations and legislation on the issue compared to those who operate informally. As a result, millions of citizens have been cut off from the pension system.
Luckily, this gap is slowly being narrowed by Individual Pension schemes that are specifically targeting the informal sector workers. An example of this is the Mbao pension scheme. The Plan is an inventive idea that adapts a savings product to marginal population groups and contributes to their improved social and economic security.
“More and better jobs” is a goal for many policymakers around the world (along with part of the title for a recent World Bank South Asia flagship report on employment). How to create “good jobs” is a key question that the next World Development Report is also expected to help answer.
In South Asia, high-tech exports comprise a much larger share of total manufactured exports today than they did in 1990. In fact, the percentage of high-tech exports more than doubled between 1990 and 2014, and have been trending upwards for the past 3 years. Aircraft, computers, and pharmaceuticals are all examples of high-tech exports, which rely on large outlays of research and development. As South Asia seeks to become more globally competitive, these industries can help propel the region's countries into middle-income levels.Find more trade data from South Asia
Read the latest trade news and research from the World Bank Group
Like many Sri Lankans across the country, I joined Sri Lanka’s 70th Independence Day festivities earlier this month. This was undoubtedly a joyful moment, and proof of the country’s dynamism and stability.
The country’s social indicators, a measure of the well-being of individuals and communities, rank among the highest in South Asia and compare favorably with those in middle-income countries. In the last half-century, better healthcare for mothers and their children has reduced maternal and infant mortality to very low levels.
Sri Lanka’s achievements in education have also been impressive. Close to 95 percent of children now complete primary school with an equal proportion of girls and boys enrolled in primary education and a slightly higher number of girls than boys in secondary education.
The World Bank has been supporting Sri Lanka’s development for more than six decades. In 1954, our first project, Aberdeen-Laxapana Power Project, which financed the construction of a dam, a power station, and transmissions lines, was instrumental in helping the young nation meet its growing energy demands, boost its trade and develop light industries in Colombo, and provide much-needed power to tea factories and rubber plantations. In post-colonial Sri Lanka, this extensive electrical transmission and distribution project aimed to serve new and existing markets and improve a still fragile national economy.
Fast forward a few decades and . Yet, .
Notably, the current overreliance on the public-sector as the main engine for growth and investment, from infrastructure to healthcare, is reaching its limits. and the country needs to look for additional sources of finance to boost and sustain its growth.
As outlined in its Vision 2025, the current government has kickstarted an ambitious reform agenda to help the country move from a public investment to a more private investment growth model to enhance competitiveness and lift all Sri Lankans’ standards of living.
Now is the time to steer this vision into action. This is urgent as . As it happens, private foreign investment is much lower than in comparable economies and trade as a proportion of GDP has decreased from 88% in 2000 to 50% in 2016. Reversing this downward trend is critical for Sri Lanka to meet its development aspirations and overcome the risk of falling into a permanent “middle-income trap.”
Translation of PPP Reference Guide into Bahasa Indonesia strongly supports national PPP delivery efforts
Indonesia’s strategy to become one of the 10 major world economies by 2025 – part of a long-term program outlined in its Masterplan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI) – relies heavily on how quickly it can build new infrastructure to support its rapid growth. This entails cooperation among the central government, local governments, state owned enterprises, and the private sector. Of the four parties, according to experts on the ground, “the private sector has a vital role to play in this masterplan (in the form of PPP schemes), as it is expected to contribute the bulk of financing.”
“At 14:28:04 on May 12, 2008, an 8.0 earthquake struck suddenly, shaking the earth, with mountains and rivers shifted, devastated, and parted forever….” This was how China’s official report read, when describing the catastrophic consequences of the Sichuan earthquake, which left 5,335 students dead or missing.
Just two years ago, in Nepal, on April 25, 2015, due to a Mw 7.8 earthquake, 6,700 school buildings collapsed or were affected beyond repair. Fortunately, it occurred on Saturday—a holiday in Nepal—otherwise the human toll could have been as high as that of the Sichuan disaster, or even worse. Similarly, in other parts of the world—Pakistan, Bangladesh, Philippines, Haiti, Ecuador, and most recently Mexico—schools suffered from the impact of natural hazards.
Why have schools collapsed?
In 1957, Herbert A. Simon (Nobel Prize in economics 1978) introduced the concept of bounded rationality that recognizes that in decision making, human rationality is limited by the information we have, our own cognitive biases, our training and experience, and the finite amount of time we have to make a decision. Individuals and firms do the best they can with the information they have, and since they don’t have time to evaluate and rationally pick the optimal solution, they simplify their choices and go with one that is satisfactory rather than rationally optimal—this is called stastificing.
Behavioral economics accounts for this by attempting to incorporate psychological insights. While most economists agree that there are some limits to the reasoning capabilities of individuals and firms, there has been much discussion about where and how to account for bounded rationality. On the spectrum between perfect rationality and the total absence of it, where are humans?
To explore this question, let’s take a look at cabdrivers and Uber drivers.
Группа специалистов из Москвы и ещё пяти регионов Российской Федерации недавно посетила Канаду и США с ознакомительным визитом. Целью визита было получить представление об инициативах, осуществляемых в этих странах, и о том, как включить рассмотрение финансовых вопросов непосредственно в программу обучения, - так, чтобы сегодняшние учащиеся выросли активными и ответственными гражданами, способными принимать обоснованные решения, касащиеся их личных финансов, а также участвовать в обсуждениях государственных финансов от своего имени и от имени своих сообществ.
In the state of Chiapas, Mexico — where nearly 1 million people live in moderate to extreme poverty — bus fares have been too high, and the availability of buses has been limited. Over four years, consumers on a single route have paid $2.5 million more than necessary. Tortillas in states across Mexico are more expensive than they need to be. In one state, firms overcharge for road construction by an estimated 15 percent, making it difficult to provide the high-quality transport services for cargo and construction materials that are necessary to build a logistics hub to diversify the state economy beyond petroleum. Another state has a very dynamic economy, hosting a greater density of industrial parks than comparable states. Given the positive spillover effects — industrial activity boosting local employment, demand, and purchasing power — the state expected growth in retail markets. Yet, stores have not been opening. Yet another state relies on tourism to generate business opportunities and jobs, including for poor people. However, until recently, tourists found that commercial establishments in the state’s primary municipality closed in the evenings and at night, often preventing them from going shopping.
What do these examples have in common? Local barriers to competition.
In the past few years, the Mexican Federal Competition Authority (COFECE) and Better Regulation Authority (COFEMER), internationally recognized institutions, as well as the World Bank Group, have pointed out that subnational regulations restrict competition in local markets. In many municipalities in Mexico, regulations and government interventions allow market incumbents to deny entry to new firms, to coordinate prices, to impose minimum distances between outlets, or to grant incumbents exclusive rights to artificially protect their dominant position. In total, a lack of vigorous marketplace competition costs the Mexican economy about one percentage point of GDP growth each year – a shortfall that affects the country’s poorest households by an estimated 20 percent more than its richest households. Most countries, however, have never systematically scrutinized local barriers to competition.
To address such issues effectively, competition policy experts from the World Bank Group’s Trade & Competitiveness Global Practice have developed an innovative tool – the Subnational Market Assessment of Competition (SMAC) – to systematically identify, prioritize and support the removal of local barriers to competition. (The SMAC is built from the World Bank Group Markets and Competition Policy Assessment Tool, or MCPAT.) The World Bank Group designed the SMAC to prioritize the reform of the rules and practices that most severely prevent healthy competition in the primary sectors for each state’s economic development.