PREM Notes

176 items available

Permanent URI for this collection

http://hdl.handle.net/10986/9424

This note series is intended to summarize good practices and key policy findings on poverty reduction and economic management (PREM) topics.

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Now showing 1 - 10 of 33

Breaking into New Markets, Raising Quality, and Improving Services : Neglected Avenues for Export Diversification

(World Bank, Washington, DC, 2009-09) Brenton, Paul ; Walkenhorst, Peter

Expanding international trade is an important avenue for growth and development in low-income countries. In addition to increasing the quantity of existing export flows, many countries seek to diversify into production and export activities that provide a higher return to the labor and capital resources employed. Export diversity also reduces a country's vulnerability to pronounced price swings in international markets. This note reviews the findings of a series of papers on the diversification process contained in Newfarmer, Shaw, and Walkenhorst (2009). The analysis suggests that there has been too much focus on simply adding new products to export portfolios, which often underscores the use of industrial policies. While such actions are important, a more comprehensive view of diversification, and hence a more comprehensive trade policy, is needed that improves the quality of existing exports, breaks into new geographic markets, and increases services exports.
Taxing Consumption

(World Bank, Washington, DC, 2009-06) Bird, Richard M.

Domestic consumption in most countries is taxed through general sales taxes, excise taxes on specific commodities, and a variety of miscellaneous taxes on such services as hotels and transfers of property. This note considers only the first two of these categories, with particular attention to general sales taxes. Consumption taxes are obviously related both to customs duties and other taxes on imports and also to production taxes like those often imposed on agricultural output. In some countries elements of both import and production taxation remains. These aspects are not further explored in this note other than to note that the original form of general sales taxes often consisted of a sales tax imposed on imported and domestic manufactured goods. Most countries have now replaced such 'pre-retail' sales taxes by taxes that fall primarily on consumption rather than on production and, both more responsive to revenue needs and easier to collect effectively and efficiently. However, excise taxes on specific commodities are often still imposed at the production stage.
Achieving WTO Compliance for Special Economic Zones in Developing Countries

(World Bank, Washington, DC, 2009-04) Creskoff, Stephen ; Walkenhorst, Peter

Many developing countries operate geographically delineated economic areas in the form of export processing zones, special industrial zones, or free trade zones. They experiment in these special economic zones (SEZs) with infrastructure, regulatory, and fiscal policies that are different from those implemented in the rest of the domestic economy with the aim of attracting foreign investment, creating employment opportunities, and boosting exports. Special incentives for zone-based firms play a prominent role in most countries programs. This note provides an overview of the application of World Trade Organization (WTO) disciplines to incentive programs typically employed by developing countries in connection with SEZ programs. It is intended to inform policy makers, zone administrators, and the development community about the WTO consistency of such incentive measures. The analysis is concerned exclusively with multilateral law and leaves economic aspects concerning beneficial or adverse effects of such fiscal incentives aside. As in all legal analysis, different interpretations of particular provisions might be possible and the ultimate decision on the legality of a particular measure remains subject to the authoritative interpretation of the WTO and its members.
A Stocktaking of PRSPs in Fragile States

(World Bank, Washington, DC, 2008-11) Dudwick, Nora ; Nelsson, Adam

In 1999, the World Bank and the International Monetary Fund (IMF) introduced poverty reduction strategy papers (PRSPs) as a condition for highly indebted countries to receive debt relief under the HIPC initiative. Since then, PRSPs have become a condition for aid to International Development Association (IDA) countries, for which they are considered instrumental in refocusing attention on poverty, democratizing policy making, and improving donor coordination. While PRSPs may play that role in many IDA countries, their usefulness in fragile states, including those just emerging from conflict, has been questioned. Increased donor attention to the specific problems of such states was the impetus for a Poverty Reduction Group (PRMPR) stocktaking of PRSPs in fragile environments.
“Brain Drain” and the Global Mobility of High-Skilled Talent

(World Bank, Washington, DC, 2008-09) Leipziger, Danny M.

This note outlines the challenges of retaining and attracting high-skilled professionals, briefly assesses both the 'brain gain' and the 'brain drain' in the health sector, and examines some of the existing programs that encourage return. It provides an overview of the role of the diaspora in fostering the transfer of knowledge, technology, capital, and remittances.
Assessing Our Work on Impact Evaluation

(World Bank, Washington, DC, 2008-08) Goldstein, Markus ; Skoufias, Emmanuel ; Fiszbein, Ariel

Over the last several years, the World Bank has increasingly engaged in impact evaluations as means of building evidence for results. During this process, the Bank has also produced an extensive variety of knowledge products. However, there are several institutional and resource issues that constrain the effectiveness of our impact evaluation work. This brief outlines recent gains in the Bank's work on impact evaluation, highlights several issues, and proposes some options to continue improving and expanding the Bank's efforts in this area.
What is the Role of Carbon Taxes in Climate Change Mitigation?

(World Bank, Washington, DC, 2008-07) Aldy, Joseph ; Ley, Eduardo ; Parry, Ian

This note argues that a carbon tax system is more practical to implement, monitor and enforce than tradable permit-based approaches to global climate-change action. It suggests that a sensible design will be an upstream carbon tax on the fossil fuel supply chain, which can also include other major non-(carbon monoxide) CO2 greenhouse gases (GHGs). While risks such as fiscal cushioning exist, a tax-based system will be more transparent and offer the appropriate incentives for participation and compliance.
Who Bears the Burden of Environmental Policies within Countries?

(World Bank, Washington, DC, 2008-07) Estache, Antonio ; Savard, Luc

This report summarize on the burden of environmental policies within countries. Climate change policies will have distributional consequences across and within countries. Most of the current environmental policy instruments tend to be regressive and impose a higher burden on the poor. Despite their limitations, more systematic incidence assessments for climate change (CC) policies are needed so that adaptation and mitigation policies address their distributional effects within countries.
Climate Change and Poverty : An Integrated Strategy for Adaptation

(World Bank, Washington, DC, 2008-07) Cord, Louise ; Hull, Catherine ; Hennet, Christel ; Van der Vink, Gregory

Developing countries are most exposed to the impact of climate change and within these countries, the poor face the brunt of the burden. Climate change is not a discrete problem that can be dealt with through isolated reforms: impacting economic growth, health, and institutional capacity, it represents a full-frontal challenge to development. This note traces the multi-dimensional impacts of climate change, particularly on the poor, and proposes a three pronged integrated response to promote adaptation and help poor households cope with related risks.
Carbon Labeling and Poor Country Exports

(World Bank, Washington, DC, 2008-07) Brenton, Paul ; Edwards-Jones, Gareth ; Friis, Michael Jensen

Carbon labelling is being adopted by private firms as a mechanism for mitigating climate change. Such schemes are likely to have a significant impact on low-income country exports due to the need for transportation and the small size of their exporters. However, transport emissions may be offset by favorable production conditions and size bias may be reduced. The design and implementation of carbon labelling will need to take into account a number of complex, technical challenges. As innovative solutions emerge, it is important that low income countries are involved in discussions on the design and implementation of carbon labelling.