Other Infrastructure Study
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Publication
Managing the Fiscal Implications of Public-Private Partnerships in a Sustainable and Resilient Manner: A Compendium of Good Practices and Lessons Learned from the COVID-19 Pandemic
(Washington, DC, 2023-03-22)Public-private partnerships (PPPs) can sometimes be perceived as a means for delivering infrastructure for free. A more nuanced but still inexact view is that they are a mechanism to overcome fiscal constraints. Some argue, perhaps rightly, that often governments enter PPP contracts without fully understanding their fiscal implications. These misconceptions lead to several challenges. There is evidence that fiscal sustainability is often overlooked or ignored by countries with PPP programs, with long-term fiscal implications the governments did not understand or manage well. Governments also struggle with perceptions that they are not fully transparent about the real, ultimate costs of PPP projects. This report aims to illustrate how to improve fiscal risk management and treatment of fiscal commitments and contingent liabilities (FCCL) arising from PPP projects, to build better Infrastructure post-COVID-19. It intends to be a resource for World Bank client countries, including low income and fragile economies, to design their fiscal PPP management frameworks in a viable way that helps them develop their PPP programs while maintaining medium-to-long-term fiscal sustainability and resilience. With that in mind, Volume I highlights and contextualizes the main findings from a set of case studies that assessed the PPP fiscal risk management framework in select countries, and synthesizes the observable and qualitative results in managing the impact of crises, in particular the COVID-19 pandemic. Based on that, it also explores how this crisis has affected PPP projects and overall PPP programs, and suggests improvements to FCCL management frameworks in order to strengthen the capacity of countries to continue with their PPP programs in a sustainable fiscal manner. Volume II contains the detailed case studies on which Volume I is based. -
Publication
Navigating Beyond COVID-19: Airline Recovery and Regulatory Reform Opportunities in Southern Africa
(Washington, DC, 2022-09)This policy paper explores airline restructuring and regulatory reform challenges and opportunities in the Southern African region with particular focus on Botswana, Eswatini, Lesotho, Namibia and South Africa. Prior to the COVID-19 pandemic crisis, the air transport sector in the region faced multipronged challenges, including those related to economic regulation, profitability, safety, security, and sustainable financing of critical infrastructure. Much like the rest of Africa, the region is characterized by the dominance of troubled state-owned airlines which have been unable to generate meaningful positive returns for many years due to structural inefficiencies and weak governance. They faced elevated costs and needed several bailouts and turnaround strategies, albeit unsuccessful. -
Publication
Digital Economy for Latin America and the Caribbean: Country Diagnostic - El Salvador
(Washington, DC, 2022-04)The widespread adoption of digital technologies is transforming how individuals, businesses, and governments interact, as well as creating new opportunities for boosting shared prosperity and reducing poverty. Digital technologies are playing an increasingly important role in El Salvador’s economic development and will play an even larger role as the global economy continues to digitize. Digital transformation can help El Salvador address its persistent growth challenges and explore new avenues toward green, resilient, and inclusive development. This report builds on the strategic priorities of the digital agenda (DA) 2020-2030, assesses the state of digital economy development in El Salvador, and provides detailed analysis and policy recommendations to inform the reform agenda in the country. The report provides a comprehensive overview El Salvador’s digital economy development across six foundational elements of a digital economy: digital infrastructure, digital platforms, digital financial services, digital businesses, digital skills, and trust environment. The diagnostic and recommendations are based on analysis of secondary data, structured interviews, surveys, and focus group discussions with key government and private sector stakeholders. The findings of the report are organized in six chapters - each dealing with a pillar of the digital economy. Policy recommendations are presented in the form of sequenced action plans that can inform relevant efforts by national authorities, the private sector, and development partners. The report summarizes the main findings on each digital economy pillar. -
Publication
Air Transport: Annual Report 2021
(Washington, DC, 2022)Air transport plays an important role in fostering development, particularly in facilitating economic integration, generating trade, promoting tourism, and creating employment opportunities. It facilitates integration into the global economy and provides vital connectivity on a national, regional, and international scale. However, in many countries, air transport equipment and infrastructure, regulat ory frameworks, and safety and security oversight systems are inefficient or inadequate. In view of these challenges and to assist clients in establishing a safe, secure, cost-efficient, accessible and reliable air transport network, the Bank is mandated to undertake the following major activities: (i) Operational work through projects and technical assistance; (ii) Economic sector work, research, and knowledge dissemination on air transport related issues; (iii) External relations and collaboration with partner organizations and (iv) External relations and collaboration with partner organizations. This report focuses on Air transport portfolio and project highlights for the year 2021. -
Publication
Beyond Unicorns: Harnessing Digital Technologies for Inclusion in Indonesia
(Washington, DC: World Bank, 2021-07-28)Similar to many other countries around the world, the COVID-19 (coronavirus) pandemic has hit Indonesia hard. Latest estimates suggest that about 5.1 million people—equivalent to 2.4 percent of the working-age population—have lost their jobs, while an additional 24 million have had to work reduced hours due to the pandemic. As many as 50 percent of workers have experienced a reduction in earnings. The impact on living standards has been devastating, with more than 2.2 million Indonesians estimated to have been pushed into COVID-19-induced poverty in 2020. One unexpected silver lining from the crisis, however, has been the turbo-charged adoption of digital technologies. Businesses, both large and small, have flocked to digital technologies to try to ensure the continuity of their operations. School closures have forced students and teachers to adapt and explore digitally enabled remote learning options, including the adoption of a variety of EdTech solutions. HealthTech apps enabling remote consultations and the delivery of medicine have seen unprecedented growth in adoption rates. Confined at home due to mobility restrictions, Indonesians have switched to the internet for their entertainment and social needs, driving sharp growth in the usage of digital media (music and video streaming) and communications applications. With this pandemic-induced flight to digital expected to be permanent to a large extent, there is excitement about an even greater acceleration in what was already the fastest growing digital economy in Southeast Asia. But at the same time questions have also emerged about the possibility of the differential access to and adoption of digital technologies compounding existing inequalities. For a country that considers achieving balanced development one of its key priorities, this is an important new challenge. -
Publication
Jobs and Distributive Effects of Infrastructure Investment: The Case of Argentina
(World Bank, Washington, DC, 2021-06)This paper assesses the short-term job generation potential of infrastructure investments in Argentina. The analysis is based on a 2017 Input-Output model with a breakdown of the construction sector into multiple infrastructure subsectors. The disaggregation was possible with a novel database with cost structures for about 70 infrastructure projects. The analysis reveals significant heterogeneity across subsectors of infrastructure investment, with job generation potential ranging between 15,000 and 49,000 annualized direct, indirect and induced jobs in the short-term per US1 billion dollars invested, depending on the type of infrastructure project considered. The results show that public housing and rural road maintenance, followed by railway construction, water and sanitation and urban infrastructure have the highest potential to generate jobs in the short-term. On the other hand, road construction and energy distribution are activities with lower short-term generation potential, but with higher long-term impact on GDP growth according to their elasticities estimates in the literature. The analysis reveals the characteristics of the projects that are determinants of the degree of job generation potential, these include: labor intensity, split between skilled and unskilled labor, ratio of imports to total investment, technology, among others. Infrastructure investment in sectors with high potential for employment generation compares favorably with pure demand stimulus check programs in terms of the effects on income growth for the poor and across all quintiles. However, infrastructure investment in sectors with low employment potential tend to have relatively more limited distributive effects. It is argued that to optimize job generation potential of infrastructure investment in the short-term as a fiscal stimulus, and in the long-term as a foundation for future growth, interventions must be ready for implementation, with low risk of delays, and selected based on sound economic analysis. Also, policymakers must pursue projects with high economic returns to enable a more productive and competitive economy and look for opportunities in which public sector investment can crowd in rather than crowd out private sector investment. -
Publication
Digital Economy for Zimbabwe: Country Diagnostic Report
(World Bank, Washington, DC, 2021-03)A diagnostic assessment of Zimbabwe's digital economy has been launched as part of the World Bank Group's Digital Economy for Africa (DE4A) Initiative, which leverages an integrated and foundations- based diagnostic framework to examine the present level of digital economy development across Africa. The assessment maps the current strengths and weaknesses that characterize the national digital economy ecosystem in Zimbabwe as well as identifies the challenges and opportunities for future growth. -
Publication
Burundi Digital Economy Assessment
(World Bank, Washington, DC, 2020-12-21)Coronavirus 2019 (COVID-19) has highlighted the need for accelerating digital adoption in Burundi. Burundi’s current sectoral strategies acknowledge the importance of investing in digital technology. However, these lack an overarching approach with an actionable roadmap and clear resources behind it. Burundi’s mobile network coverage and mobile broadband uptake continues to be characterized by a stark urban-rural divide. Digital platforms are paramount in connecting people, businesses, and the government - enabling both transactions and the exchange of information, goods, and services in more efficient and convenient ways. At present Burundi’s digital entrepreneurship sector remains embryonic, hampered by barriers such as limited ecosystem support and weak access to financing. Whether through the provision of public services closer to its citizens with digital platforms, or through increased financial inclusion enabled by digital financial services and dynamic digital ecosystems, Burundi stands to gain from a continued investment in the foundations of its digital economy. Chapter one gives introduction. Chapter two reviews cross-cutting factors that affect the strategic, institutional, and regulatory environment for the digital agenda in Burundi. The report proceeds to explore the five foundational pillars of the digital economy, in more depth. Chapter three looks at the access, quality, and usage of digital infrastructure, as well as the dynamics of the connectivity market, including what it will take to get more Burundians online. Chapter four discusses the current state of digital skills attainment and coverage. Chapter five analyzes the current application and scope for expanding the use of digital platforms - both in the public and private sector. Chapter six examines the state and uptake of digital financial services (DFS) among individuals, businesses and by government. Finally, chapter seven assesses the state of digital entrepreneurship and the culture of innovation in Burundi. -
Publication
Albania E-Commerce Diagnostic: Leveraging the Digital Trade Opportunity
(World Bank, Washington, DC, 2020-12)E-commerce, defined broadly as the sale of goods and services facilitated through the internet, is a key growth opportunity for Albania. Sellers can benefit from internet marketing, 24-hour online shopping and remote transaction settlement to reach more customers. Buyers, including both consumers as well as businesses that source their inputs, stand to gain through greater choice, convenience and market competition. With the emergence of new companies offering enabling services for e-commerce, including technology companies, payment services and logistics, a variety of new job opportunities is emerging. During the ongoing COVID-19 pandemic, e-commerce has also emerged as an important pillar in the fight against the virus. This report identifies key recommendations for Albania to fully leverage e-commerce as economic development opportunity. -
Publication
Togo Digital Economy Diagnostic Report
(World Bank, Washington, DC, 2020-11-26)Rapid digital transformation has been re-shaping the global economy, changing fundamental patterns of socioeconomic activities and accelerating further in the wake of the global Coronavirus (COVID-19) pandemic. In this context, relying on the Digital Economy for Africa (DE4A) methodology, the report conducts a timely diagnostic of the state of digital economy in Togo. Togo is bordered by Ghana, Benin, and Burkina Faso, and has a coastline that runs along the Gulf of Guinea. The government of Togo (GoT) is cognizant of the importance of the transformation towards a digital economy. As the government of Togo launches into the development of a new strategy for digital transformation “Togo Digital 2025” the current diagnostic would provide useful information to use as a basis for such strategic document. This report aims to highlight opportunities to further develop Togo’s digital economy with a special focus on policies that can bridge the digital divide and help Togo achieve the DE4A targets. This report aims to provide practical and actionable recommendations that inform decision makers on priority areas for development.