On May 31 we had the pleasure of presenting the first phase of the Poland Catching-up Regions Program, an initiative of the European Commission and the World Bank. In just over one year, this initiative has successfully addressed a number of key development challenges faced by two "lagging regions" in Poland – Podkarpackie and Świetokrzyskie.
The initiative's successes range from faster business registration in Rzeszow and Kielce (the capitals of the two regions, respectively) to the setting-up of a vocational education training system in Świteokrzyskie and design of a Technology Transfer Center in Rzeszow. Partnered with outstanding teams from the European Commission and Poland, the World Bank was able to support this progress by bringing together global expertise and hands-on collaboration in both design and implementation of policies. This is important for Poland and for the lessons it provides for other developing countries.
Recently, the OECD released the results for PISA 2015, an international assessment that measures the skills of 15-year-old students in applying their knowledge of science, reading, and mathematics to real-life problems. There is a sense of urgency to ensure that students have solid skills amidst modest economic growth and long-term demographic decline in Europe and Central Asia (ECA).
Action is needed to address these problems and ensure that everyone – regardless of race, gender, age, sexual orientation, or gender identity - has an equal chance to live a healthy and prosperous life
This is not only the right thing to do, it also makes economic sense: a growing body of evidence indicates that discrimination against LGBTI people has a negative economic impact on society.
Every sector is reforming to meet the changing demands of the global economy. Except one. Education remains a predominantly public service. This is fine except that it means that this is also mainly publicly-provided, publicly-financed, and regulated. No public service agency is expected to do as much as we expect of education. How are education systems around the world faring?
Last year, we posted a blog – Resolving Minor Disputes Matters Big Time for the Poor – which highlighted how courts can fast-track minor disputes to deliver faster, cheaper and more appropriate justice and how – for the poor and for micro and small businesses – this may be their only path to justice.
Increasingly, citizens and businesses demand fast-tracking services for small cases and, according to Doing Business data, 138 economies have a small claims procedure of some kind. So courts across the world are eager to learn how to roll out such reforms – either to introduce a fast track procedure or to improve on an existing one.
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Recent research shows that
City governments invest a lot in job creation—they plan infrastructure, skills initiatives, and industry support with the goal to improve productivity and generate jobs and growth, especially in the high-skill sectors. Yet, there might be an important input to productivity that cities can pay more attention to: clean air.
Recent research suggests that a 10-unit increase in the air quality index decreases productivity by 0.35%. Seems marginal? This “productivity slow-down” costs the high-skill economy of China $2.2 billion per year for each additional 10 units of the air quality index.
The research in question studied the effect of air pollution on worker productivity in call centers in Shanghai and Nantong in China. The firm analyzed is Ctrip, one of the largest travel agencies in the country, employing more than 30,000 people. 50% of the workers’ pay is based on performance and the measures of productivity are very detailed and high frequency. The study concluded that there is a robust relationship between daily air pollution levels and worker productivity. On average, a 10-unit increase in the Air Quality Index (AQI) led to a 0.35% decline in the number of calls handled by a worker in a day at an AQI of 100. If we translate this to the entire Chinese high-skill industries, a 10-unit reduction of air pollution levels would increase the monetized value of improved productivity by $2.2 billion per year.
According to the World Bank’s Doing Business report, Poland ranked 74th globally in the ease of doing business in 2006. It took 10 procedures to incorporate a business in Warsaw, more than 40 steps to pay taxes, close to 200 days to register property, and almost 1,000 days to enforce a contract. A decade later, Poland ranked 24th, higher than the EU average – progress unmatched by any high-income country in terms of ease of doing business.
Poland has been one of the most active and steady reformers of its business environment in the world, but firms are yet to benefit from reforming the country’s burdensome business inspections.
Performance budgeting (PB) has a deep and enduring appeal. What government would not want to allocate resources in a way that fosters efficiency, effectiveness, transparency, and accountability? However, such aspirations have proven poor predictors of how performance data are actually used.
The potential benefits of identifying and tracking the goals of public spending are undeniable, but have often justified a default adoption of overly complex systems of questionable use. Faith in PB is sustained by a willingness to forget past negative experiences and assume that this time it will be different. Without a significant re-evaluation, PB’s history of disappointment seems likely also to be its future.
Admittedly, the region does not face the same daunting disaster risks as some other parts of the world – especially in South Asia, East Asia and Latin America – but nevertheless, it is far from immune to the effects of natural hazards – as the past clearly reminds us.