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Private Sector Development

A decade of PPPs in Latin America and the Caribbean: What have we learned?

Roland Michelitsch's picture

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Photo (right): Mr. Amarin Jitnathum / Shutterstock

The Latin America and Caribbean region (LAC) has an infrastructure gap: the region needs to invest at least 5% of GDP to cover its infrastructure needs, but is currently investing only half that. To put it mildly, there is still a lot of room for improvement for both the public and private sectors, and also for multilaterals working in the region.

In a combined effort to reduce infrastructure gaps, Public-Private Partnerships (PPPs) have become, again, a popular tool since 2005. LAC was the predominant region for PPPs until the late 1990s, when investments plummeted due in part to a backlash of poorly-implemented PPPs.

Triggered by low commodity prices and rising fiscal deficits, as well as by improvements in PPP readiness, many countries established dedicated agencies and strengthened regulations leading to increases in PPP investments from $8 billion in 2005 to $39 billion in 2015. In total, LAC has seen investments of $361.3 billion in around 1,000 PPP infrastructure projects in just one decade, mostly in energy and transport.

Uma década de PPPs na América Latina e Caribe: O que aprendemos?

Roland Michelitsch's picture

Also available in: Español | English


Foto (direita): Amarin Jitnathum / Shutterstock

A região da América Latina e Caribe (ALC) apresenta uma lacuna em termos de infraestrutura: a região precisa investir no mínimo 5% do PIB para atender suas necessidades neste setor, mas atualmente investe apenas metade desse percentual.  Explicando de uma forma suave, há ainda muito espaço para melhorias por parte do setor público, do setor privado, bem como das organizações multilaterais que trabalham na região.

Em um esforço combinado de reduzir as lacunas de infraestrutura, as Parcerias Público-Privadas voltaram a ser uma ferramenta popular a partir de 2005. A ALC era a região com maior predominância de PPPs até o fim dos 1990s, quando os investimentos despencaram em parte como reação adversas provocadas por PPPs mal implementadas.

Incentivados pelos preços baixos dos produtos primários e déficits fiscais crescentes, assim como pelo aprimoramento da capacidade de preparação de PPPs, muitos países criaram agências específicas e fortaleceram regulamentações que levaram ao aumento de investimentos em PPPs de US$ 8 bilhões em 2005 para US$ 39 bilhões em 2015. No total, em apenas uma década, a ALC teve investimentos de US$ 361,3 bilhões referentes a aproximadamente 1000 PPPs de projetos de infraestrutura, principalmente nos setores de energia e transportes.

Global Investment Competitiveness: New Insights on FDI

Anabel Gonzalez's picture

It is easy enough to find data on flows of foreign direct investment (FDI). There are also plenty of anecdotes out there that purportedly encapsulate what businesses worldwide are thinking. It is far more difficult, however, to establish rigorous connections between global investment trends and individual investment decisions by international companies. In the World Bank Group’s newly published Global Investment Competitiveness Report 2017–2018, our team does just this, combining new survey data, rigorous econometric analysis, and extensive literature reviews to reveal what is going on behind the headline numbers.



Here are some of the key takeaways:
 

A new generation of CEOs: Running a business in West Africa as a woman

Alexandre Laure's picture

Also available in: Français

What is it like to set up and run an incubator as a woman? The answer, much like anywhere else in the world for working women, is that it’s complicated.

In many countries, it’s still unusual to see women working in certain sectors. Regina Mbodj, CTIC Dakar CEO, knows very few women in Senegal who studied ICT. “When I came home and told people about my studies, a lot of people responded, 'I thought only men did that!'"

Mariem Kane, an engineer by training and now president of Mauritania’s incubator Hadina RIMTIC, said that career development can be difficult for women who have been trained in hard skills. “It’s tough for women to find opportunities in these sectors and, because we’re considered more suited to softer skills, we aren’t given the opportunity to prove ourselves.”

World Bank partners with LinkedIn for innovative data and insights on South Africa's most in-demand skills

Alan Fritzler's picture
When policymakers understand what’s happening in the economy—in real time and with real clarity—they can create better solutions to improve productivity, performance, and innovation.
 

A new generation of CEOs: Businesswomen in Africa discuss gender inclusion in the private sector

Alexandre Laure's picture

Also available in: Français

As we saw in our second blog, entrepreneurship plays a critical role in promoting sustainable growth. Yet, in many West-African countries, long-standing stigmas against the private sector are still big obstacles for women and young people who aspire to become entrepreneurs.
 
Family support, in particular, remains critical for women’s career choices, and the private sector doesn’t always enjoy a good reputation among parents. “It’s very hard for them [parents] to understand why we want to do this instead of getting a steady government job,” says Binta NdiayeMakeSense Africa CEO. “My mother is an entrepreneur, but she did that on top of her regular job and raising a family in France, so it’s not seen as a career in-and-of-itself.”
 
“Entrepreneurship is inherently risky, so if you don’t have that support and encouragement, or even your family’s blessing to go for it, I can understand that it could be extremely challenging for some women,” says Mariem Kane, founder and president of Mauritania’s incubator Hadina RIMTIC.

Ndiaye for one, though, is not deterred: “It’s up to us to educate them on this potential and to have the resolve to follow-through. If you can convince skeptical parents, you can convince any investor.” 
 
Considering that these incubators are run by women, do they make special efforts to recruit women entrepreneurs?
 
Lisa Barutel founder and CEO of La Fabrique, acknowledges that even though La Fabrique received a huge response to a recent call for proposals targeting women, far fewer apply to general calls that do not have a specific focus on women entrepreneurship. “Normally we don’t go out looking for candidates, as we can be inundated with applications, but when we noticed this discrepancy, we did launch a program to identify women with potential,” she says.

Coming together is the way forward: Maximizing Finance for Development

Hartwig Schafer's picture
Also available in: Español



Those following the discussions during the IMF and World Bank Group Annual Meetings held in Washington last week will have noticed that our approach toward international economic development is changing in a major way—and, I believe,  for the better.
 
Saturday’s panel discussion on Maximizing Finance for Development set the context that many in the development community now know well, but bears repeating: It will take not billions, but many trillions of dollars to meet rising aspirations for better infrastructure, health and education. Specifically, we are talking about $4 trillion every year needed to meet the Sustainable Development Goals to which the international community agreed in September 2015.

The future of Jobs and Skills: A gloomy or glowing scenario for the less skilled workers?

Rita Almeida's picture


Fears abound that automation and other advanced technologies will lead to job losses for lower-skilled workers in emerging economies and exacerbate inequality. Each new wave of technological progress is met with dire predictions. The most critic argue that the unprecedented pace of technological change today will have more dramatic effects on the future of work as new technologies (including robots and artificial intelligence) are increasingly replacing more educated workers and more cognitive and analytical work. At the same time, many economists argue that technology adoption will significantly increase firm productivity and result in job expansion, at least in the medium run under certain policy conditions. The impacts of technology adoption on overall employment and on the skills composition of occupations are ultimately an empirical question.

Calling African policymakers: our economic future must be powered by our farms

Yaw Ansu's picture
Working the land in Uganda: women make up more than half of Africa’s farmers but face the biggest barriers to owning land. Photo: Jonathan Torgovnik/Reportage by Getty Images


At first glance it might seem surprising that the African Center for Economic Transformation (ACET) has zeroed in on agriculture as the focus for our 2017 flagship report, launched this week at the World Bank’s Annual Meetings in Washington. But that’s precisely the point: this is not primarily about agriculture, it is about how you transform the broader economy, with agriculture as the catalyst.


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