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Latin America & Caribbean

A portrait of PPPs in Latin America

Gastón Astesiano's picture

Photo: Deutsche Welle | Flickr Creative Commons 

As in many regions, countries in Latin America and the Caribbean are underinvesting in infrastructure—spending in the sector is only about half of the $300 billion needed annually to encourage growth and reduce poverty. Addressing this issue involves the successful interaction between public officials and leading infrastructure actors, particularly in the private sector. Stimulating such public-private dialogue is a priority for the Inter-American Development Bank (IDB) Group, a technical partner of the Global Infrastructure Facility (GIF). Along with other partners, our recently established PPP unit supports governments, international financial institutions, and the private sector to develop infrastructure projects.
It was therefore a privilege for me to moderate a panel on country infrastructure programs in Latin America at the GIF’s annual Advisory Council meeting in April 2017. We covered three countries—Colombia, Argentina and Peru—at different stages of PPP market development. The findings were encouraging and illustrate a path forward for other countries in the region:

In the Dominican Republic, Child Marriage Is Not Only a Moral Issue, But an Economic One as Well

Quentin Wodon's picture

In the Dominican Republic, more than one third of young women aged between 18 and 22 get married or form an informal union before turning 18, while one in five has already given birth before reaching that age. Child marriage is not only a moral issue; it also has economic impacts for the country.

Gender equality hits the highway in Northern Brazil

Satoshi Ogita's picture

Young women, some still girls, await long-haul truck drivers that stop by a gas station in the State of Tocantins, located in the North region of Brazil. Here, impoverished women and girls look to get extra cash in exchange for sex, a phenomenon seen on a daily basis in small towns along the federal highway BR-153. The high dropout rate of girls and gender-based violence are commonplace there. While better road infrastructure brings more economic opportunities to the region, higher road traffic and activity can also increase social risks like gender-based violence.   
A World Bank’s multisectoral project in Tocantins seeks to improve efficiency of road transport, in particular, state and rural road network, and to support institutional strengthening in the following five sectors: public administration, agriculture, tourism, environment, and education. While the project does not include any roadwork specifically on the highway BR-153, it aims at reducing existing risk of gender-based violence along the highway as part of the education component of the project.  
Schools play an important role in building respectful relations between girls and boys, challenging gender-based stereotypes and combatting discrimination that contributes to violence against women and girls. Accordingly, based on the level of the dropout rate and violence statistics, six high schools along BR-153 were selected to host a pilot initiative to improve awareness of gender-based violence and in the area.

#LACfeaturegraph blog contest winner: In Latin America, education is not closing the income gap

Joaquín Muñoz's picture

Editor’s Note: In May, the LAC Team for Statistical Development launched the #LACfeaturegraph blog contest, where participants were asked to use poverty, inequality or other welfare data from the LAC Equity Lab to come up with an original analysis and integrate it with a data visualization. We received numerous blog submissions and after carefully reading each blog, we have picked the winner. Here is the winning entry from Joaquín Muñoz from Chile.

Education has long been considered fundamental in paving a country’s road to development. It is an International Human Right, one of the eight Millennium Development Goals and seventeen Sustainable Development Goals, and a critical player in reducing poverty. Thus, government officials and development partners have renewed efforts to ensure access to primary and secondary education worldwide.

In Latin America and the Caribbean, a region that faces stark levels of inequality, educational programs have been designed and funded with the aim of guaranteeing equal opportunities to school access. For instance, while in 1990 primary school enrollment in the region was about 89.9 percent, by 2010 it had increased to 94.2 percent. In the same period, literacy rates progressed as well, increasing from 87.5 percent to 92.6 percent (The World Bank, 2017). Even though the difficulty of achieving universal access to education is daunting, the numbers show that the region is on the right track.

However, the figure below shows that even though there has been a significant increase in the total years of education between 2004 and 2014 among the region’s population, the top 60 percent and the bottom 40 percent have experienced unequal income gains. While both groups experienced an increase in years spent in school, the data suggest that the top 60 percent, which was already wealthier and longer-schooled, saw a greater increase in their median daily per capita income than the bottom 40 percent. This finding is consistent with other evidence that suggests that income returns to schooling differ across the wage distribution (Harmon, Oosterbeek and Walker, 2000).

Source: Author's graph using LAC Equity Lab tabulations of SEDLAC (CEDLAS and the World Bank).

Changes must come to the way agriculture is funded in Brazil

Diego Arias's picture

A matching grant enabled the Brazilian cooperative Coopervoltapinho to build a rice silo. All photos by Romeu Scirea.

Imagine driving along a rural road and seeing many small farms, all growing flourishing crops. Would you know how the farmers obtained the funds to plant these crops, enhance their productivity, and deliver them to market?

Effective ways for developing school leadership

Harriet Nannyonjo's picture
Leadership is a critical aspect of all social endeavors. In schools, talented leadership is essential to student achievement. (Photo: Graham Crouch / World Bank)

Leadership is a critical aspect of all social endeavors. In schools, talented leadership is essential to student achievement. School leadership impacts all facets of education:  teacher motivation, shaping the conditions and the environment in which teaching and learning occurs, and interaction with the broader community.  A large scale six-year study reported by Louis et al (2010) covering 180 schools in 43 school districts in the US found that there is no single case of a school improving its student achievement record in the absence of skilled school leadership.

In many school systems, effective school leadership is far from the norm. It is often simply assumed that school leaders, irrespective of capacity, will discharge responsibilities and initiatives assigned to them. Moreover, programs to prepare and or support school leaders are either lacking or ineffective.

What El Niño has taught us about infrastructure resilience

Irene Portabales González's picture
Also available in: Español
Photo: Ministerio de Defensa del Perú/Flickr
The rains in northern Peru have been 10 times stronger than usual this year, leading to floods, landslides and a declaration of a state of emergency in 10 regions in the country. Together with the human and economic toll, these downpours have inflicted tremendous damage to transport infrastructure with added and serious consequences on people’s lives.

These heavy rains are blamed on El Niño, a natural phenomenon characterized by an unusual warming of the sea surface temperature in the central and eastern equatorial Pacific Ocean. This phenomenon occurs every two to seven years, and lasts about 18 months at a time. El Niño significantly disrupts precipitation and wind patterns, giving rise to extreme weather events around the planet.

In Peru, this translates into rising temperatures along the north coast and intense rainfall, typically shortly before Christmas. That’s also when “huaicos” appear. “Huaico,” a word that comes from the Quechua language (wayq’u), refers to the enormous masses of mud and rocks carried by torrential rains from the Andes into rivers, causing them to overflow. These mudslides result from a combination of several natural factors including heavy rains, steep slopes, scarce vegetation, to name a few. But human factors also come into play and exacerbate their impact. That includes, in particular, the construction of human settlements in flood-prone basins or the absence of a comprehensive approach to disaster risk management.

This year’s floods are said to be comparable to those caused by El Niño in 1997-1998, one of the largest natural disasters in recent history, which claimed the lives of 374 people and caused US$1.2 billion worth of damages (data provided by the Peruvian National Institute of Civil Defense).

Does Peru need more affordable housing?

Zoe Elena Trohanis's picture
Banco Mundial

If you didn’t have an opportunity to purchase a safe, well-constructed home in a good location, what would you do? Live with relatives? Rent an apartment? Or, build a home in a less desirable, or potentially vulnerable area prone to natural disasters where you may not have clear property ownership but with the hope that one day you will become the owner officially? These are the decisions many families face in Peru, a middle income country with the third highest housing deficit in Latin America.

Weathering storms in Central America: The impact of hurricanes on poverty and the economy

Oscar A. Ishizawa's picture
Countries are facing increasingly frequent negative impacts from adverse natural events. Central America, a region prone and vulnerable to disasters, is a clear example. Just from 1992 to 2011, Central America was hit by nearly 70 hurricanes with an average of 8 events per year, hindering sustainable economic growth.

Between 2005 and 2014, due to natural disasters, the region had a nominal cumulative loss of around US$5.8 billion, and witnessed more than 3,410 deaths and hundreds of thousands of displaced people. More recently, in October 2011, Tropical Depression 12-E hit the coasts of El Salvador and Guatemala with damages amounting to nearly US$1 billion.

In two recent studies, we evaluated the causal impacts of hurricane windstorms on poverty and income as well as economic activity measured using night lights at the regional and country level. In both cases, we applied a fully probabilistic windstorm model developed in-house, and calibrated and adjusted it for Central America. The first study (on poverty) used yearly information at the household level (for income and poverty measures) as well as the national level (GDP per capita). Due to the limited comparable household data between the countries, we decided to follow up with the second study (on economic activity) using granular data at the highest spatial resolution available (i.e., 1 km2) to understand more deeply the (monthly) impact over time.

Our results are striking:

Climate and disaster risk in transport: No data? No problem!

Frederico Pedroso's picture
Development professionals often complain about the absence of good-quality data in disaster-prone areas, which limits their ability to inform projects through quantitative models and detailed analysis.
Technological progress, however, is quickly creating new ways for governments and development agencies to overcome data scarcity. In Belize, the World Bank has partnered with the government to develop an innovative approach and inform climate-resilient road investments through the combination of creativity, on-the-ground experience, and strategic data collection.
Underdeveloped infrastructure, particularly in the transport sector, is a key constraint to disaster risk mitigation and economic growth in Belize. The road network is particularly vulnerable due to the lack of redundancy and exposure to natural hazards (mostly flooding). In the absence of alternative routes, any weather-related road closure can cut access and severely disrupt economic and social movement.
In 2012, the government made climate resilience one of their key policy priorities, and enlisted the World Bank’s help in developing a program to reduce climate vulnerability, with a specific focus on the road network. The institution answered the call and assembled a team of experts that brought a wide range of expertise, along with experience from other climate resilience interventions throughout the Caribbean. The program was supported by Africa, Caribbean and Pacific (ACP) European Union funds, managed by the Global Facility for Disaster Reduction and Recovery (GFDRR).
Our strategy to address data scarcity in Belize involves three successive, closely related steps.