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São Tomé and Príncipe - Unpacking Migration Dynamics: Critical Issues and Policy Recommendations
(Washington, DC: World Bank, 2025-01-16) Monsalve Montiel, Emma Mercedes; Kroll, Guillaume; Barros Barbosa, Barbara; Mawete, Delfim Mampassi E. Martins; Boly, Mohamed
São Tomé and Príncipe (STP), a lower-middle-income small island nation, is undergoing a significant wave of emigration, primarily driven by limited job opportunities and economic prospects, particularly among younger generations. This paper explores migration's drivers, dynamics, and impacts on the country’s economy and social fabric, drawing on a combination of primary and secondary data sources. These include local emigration records, the national social registry, the latest household budget survey, global estimates of migrant stocks and remittance flows, and focus group discussions with migrant families. The findings reveal that at least 18 percent of STP’s population now resides abroad, with numbers growing rapidly. Migration is increasingly dominated by young individuals moving to Portugal, attracted by shared linguistic and cultural ties and facilitated by a recent Community of Portuguese Language Countries mobility agreement. However, migration currently delivers limited economic benefits to STP, as remittances are low, irregular, and constrained by high transfer costs, inadequate financial infrastructure, and migrants’ precarious employment abroad. Socially, migration may also disrupt family structures, particularly affecting children who face challenges in care and emotional wellbeing. Policy recommendations include enhancing migrants’ employability, exploring bilateral migration partnerships, strengthening migration management systems, improving remittance services, and supporting families who remain in the country through social assistance.
Cabo Verde Circular Economy Diagnostic, September 2024
(Washington, DC: World Bank, 2025-01-07) World Bank
This report identifies circular economy (CE) opportunities in the tourism sector in Cabo Verde, The Gambia, and Säo Tomé & Principe. The project focuses on enhancing circularity by advocating for policy changes, phasing out single-use plastics (SUP), and promoting innovative infrastructure and sustainable financing solutions. The Cabo Verde report provides a thorough diagnostic to identify opportunities and gaps within key infrastructure systems, including materials, waste, energy, and water, tailored to Cabo Verde's unique geographic and economic context. It includes firm audits and an extensive market assessment to determine the scope and size of CE products within the tourism industry. The report also outlines the results of the Multi-Criteria Analysis (MCA) to prioritize prospective business cases for further evaluation of their financial and technical viability. Additionally, it presents an overview of the Institutional & Regulatory Analysis and Roadmap, highlighting key market opportunities such as in-vessel composting, large water dispensers, rooftop solar PV, and greywater recycling. The findings emphasize the potential for CE interventions to foster economic growth, environmental sustainability, and resilience in Cabo Verde's tourism sector.
São Tomé and Príncipe Circular Economy Diagnostic
(Washington, DC: World Bank, 2025-01-07) World Bank
In Säo Tomé and Principe, tourism is seen as a crucial sector for driving economic growth. Sustainable tourism is prominently featured in various diagnostic reports and national strategies concerning Säo Tomé and Principe. The World Bank's Systematic Country Diagnostic underscores the importance of targeting luxury markets for development. These markets can yield higher revenue per visitor and can address both environmental concerns and the challenges posed by the country's limited and expensive connectivity. The strategic focus on sustainable tourism in Säo Tomé and Principe revolves around capitalizing on its natural assets while maintaining environmental considerations, strengthening local supply chains, and improving ecosystem protection and management. These measures not only support economic growth but also contribute to the resilience and long-term prosperity of the nation.
Data for Better Governance: Building Government Analytics Ecosystems in Latin America and the Caribbean
(Washington, DC: World Bank, 2024-11-25) Santini, Juan Francisco; Sacco Capurro, Flavia; Rogger, Daniel; Lundy, Timothy; Kim, Galileu; de León Miranda, Jorge; Cocciolo, Serena; Casanova, Chiara
Governments in the Latin America and the Caribbean (LAC) region face significant developmental and institutional challenges, such as slowing growth, fiscal constraints, and inefficiencies in the public sector. At the same time, governments have invested significantly in government technologies (GovTech), making LAC a global pioneer in management information systems (MISs). This investment creates an opportunity for governments to leverage MIS data to strengthen the functioning of government and achieve development goals—that is, government analytics. This report provides a conceptual framework to assess and provide guidance on the regional government analytics agenda and how to harvest the benefits of GovTech investments. It examines how government analytics can inform policy making and improve accountability and efficiency, drawing on survey data and successful applications of government analytics. The report also explores the enabling conditions for government analytics—data infrastructure and analytical capabilities—and how to strengthen them. Finally, it provides practical guidance on how to develop a holistic government analytics agenda. "Data for Better Governance: Building Government Analytics Ecosystems in Latin America and the Caribbean" is part of the Government Analytics collection, which began with The Government Analytics Handbook (2023). This growing series features frontier evidence and expert insights on how to leverage data to improve government performance.
Subnational Business Ready in the European Union 2024: Portugal
(Washington, DC: World Bank, 2024-11-06) World Bank
This year, the Subnational B-READY series cover 40 cities in six EU Member States—Bulgaria, Croatia, Hungary, Portugal, Romania, and the Slovak Republic—covering 36 European regions. In Portugal, the Subnational B-READY covers eight cities in seven regions at the NUTS2 level: Braga (North), Coimbra (Center), Évora (Alentejo), Faro (Algarve), Funchal (Autonomous Region of Madeira), Lisbon (Lisbon Metropolitan Area), Ponta Delgada (Autonomous Region of the Azores), and Porto (North). The primary objective of the Subnational B-READY studies is to identify and address regional disparities in regulatory environments and to promote reforms that foster private sector growth, job creation, and sustainability. The Subnational B-READY series delivers a rigorous, data-driven analysis of business climates at the local level, offering actionable insights for policy makers.
Saving Lives While Raising Revenue: Opportunities in Brazil’s Reform of Indirect Taxes to Improve Tobacco, Alcohol, and Sugar-Sweetened Beverages (SSBs) Excise Taxes
(Washington, DC: World Bank, 2024-11-04) Maldonado, N.; Blecher, E.; Fleischhaker, C.
Taxes and prices of tobacco products, alcoholic beverages, and sugar-sweetened beverages (SSBs) in Brazil are low compared to international peers. The ongoing landmark reform of indirect taxes (PLP 68/2024 and forthcoming Ordinary Law) provides an excellent opportunity to put in place well-designed excise taxes on tobacco, alcohol and SSBs.If well implemented, reforms of the tax structure and increases in tax rates can make them more effective at improving population health and raising additional tax revenue. Global evidence to support reforms is strong, supporting the use of well-designed and administered health taxes.Following global best practices, it is recommended that health taxes are focused on specific taxes or, when applied in mixed systems, that the specific taxes comprise a larger component of the excise tax than the ad valorem component. Tax rates, particularly for specific taxes, need to be increased significantly to align Brazil with the prices of international peers, and indexed to inflation plus three percentage points to protect real values of tax over time, and to reduce the affordability of tobacco, alcohol, and SSBs.
Guinea-Bissau Country Climate and Development Report
(Washington, DC: World Bank, 2024-10-23) World Bank Group
Guinea-Bissau is endowed with a wealth of natural resources, with the highest natural capital per capita in West Africa (US3,874 dollars per capita), which could be leveraged for sustainable and resilient growth. However, Guinea-Bissau faces significant development hurdles, such as high poverty rates, political instability, and economic challenges, including an over-reliance on cashew nuts. Rural poverty has increased, and the nation's infrastructure, education, and health care systems are underdeveloped. Climate change poses a severe threat, potentially impacting agriculture, fisheries, and infrastructure. Without adaptation, it could lead to a significant cut in real GDP per capita (minus 7.3 percent by 2050) and increase in poverty (with up to over 200,000 additional poor by 2050, that is, 5 percent of the expected population, in the worst scenario). The country's low greenhouse gas emissions are expected to rise, mainly due to agriculture and land-use changes, with deforestation being a major contributing factor. Although Guinea-Bissau is a low emitter, it has high mitigation ambitions, targeting a 30 percent reduction in greenhouse gas emissions by 2030. The Nationally Determined Contribution outlines significant climate actions, with initiatives focused on forest conservation, sustainable agriculture, and community development. However, the country's political instability, institutional weaknesses, and limited financial resources pose challenges to implementing these climate commitments, which depend heavily on external funding. The financial sector's underdevelopment and vulnerability to external shocks limit its ability to support green investments, though reforms could enhance resilience. Guinea-Bissau must consider its climate financing as development financing and vice-versa, engage the private sector, and integrate climate goals with national development plans to ensure a sustainable future. Concessional climate financing is vital due to the underdeveloped financial sector and the government’s limited borrowing capacity. Addressing Guinea-Bissau's vulnerability to climate change and its structural issues requires a cohesive approach that integrates development and climate strategies. This could involve improving governance, diversifying the economy, protecting natural capital, developing human capital, and investing in sustainable agriculture and infrastructure. The transition to a more sustainable and inclusive development pathway that supports economic growth is possible, but requires focusing on key strategic sectors, enhancing institutional capacity, and creating the conditions to mobilize finance. As a highly vulnerable country, there are myriad needs in the different sectors; however, to be more efficient and effective, Guinea-Bissau should prioritize actions in a few sectors, especially actions on biodiversity, agriculture, and social protection. Low carbon development, especially in energy and forestry sectors, could provide cost-efficient solutions and attract climate finance, including from the private sector, which will support the overall development agenda.
Latin America and the Caribbean Economic Review, October 2024: Taxing Wealth for Equity and Growth
(Washington, DC: World Bank, 2024-10-09) Maloney, William; Zambrano, Jorge Andres; Vuletin, Guillermo; Beylis, Guillermo; Garriga, Pablo
The report highlights the progress made on inflation and, despite some resistance in the last mile, the resulting fall in interest rates that will ease pressures on debt service and investment. However, growth is projected to remain low, debt remains high, private and public investment is depressed, and the region appears to be missing the boat on nearshoring FDI. The need to generate more fiscal space, reduce the high corporate tax burden, and mitigate persistent inequality have moved wealth taxes to center stage. But traditional wealth taxes on financial assets face challenges due to the ease of moving and hiding assets which will be difficult to control without elusive global coordination. A viable alternative is a tax on real estate which is less mobile, easier to track, and less of a distortionary burden on economic activity, given the low initial rates. Property taxes also have the potential to reduce the excessive dependence of subnational governments on federal transfers. For property taxes to play a greater role, there must be improvements in property valuation which can be engineered through the use of digital platforms and centralized land registries.
Fuel Subsidy Reforms: Lessons from the Literature and Assessing the Price Shock for Different Sectors through an Input-Output Table in the Case of Angola
(Washington, DC: World Bank, 2024-10-07) Bambe, Bao We Wal; Bou Habib, Chadi; Marandino Peregalli, Joaquin
Global oil prices have surged in recent decades, significantly hurting household living standards. In response to rising prices, many governments introduced fuel price subsidy to protect the most vulnerable populations. The literature is almost unanimous that fuel price subsidies are inefficient and generate significant socioeconomic and environmental costs. However, it is also acknowledged that subsidies often represent a significant proportion of poor households’ income, so removing them can have devastating effects. Moreover, given that fuel is a key input to economic activity, removing subsidies would alter the cost structure of specific sectors, with impacts on employment, competitiveness, and, ultimately, households’ welfare. One important question then is how policy makers can reduce the distorting effects of fuel subsidies while implementing effective measures to curb the adverse effects of price rises on the economy and poor households. This paper reviews the literature on this issue, discusses alternative policies to fuel subsidies, and provides scenarios that simulate cost and price shocks and fiscal savings for fuel subsidy reforms in Angola. Using an input-output table, the analysis estimates that gradual removal of the subsidies until full removal would result in a cumulative price increase of around 5.0 percent. The highest increases would be in fisheries and transportation (20 percent on average). Fully compensating for the price increase in the two sectors would absorb around 30 percent of the savings (around 1.0 percent of gross domestic product), notwithstanding the form and channel this compensation would take. This sector granularity is crucial to anticipate the potential negative effects of subsidy removals for various social and economic groups involved with a given sector as users or as producers.
Recipe for a Livable Planet: Achieving Net Zero Emissions in the Agrifood System
(Washington, DC: World Bank, 2024-09-20) Sutton, William R.; Lotsch, Alexander; Prasann, Ashesh
The global agrifood system has been largely overlooked in the fight against climate change. Yet, greenhouse gas emissions from the agrifood system are so big that they alone could cause the world to miss the goal of keeping global average temperatures from rising above 1.5 centigrade compared to preindustrial levels. Greenhouse gas emissions from agrifood must be cut to net zero by 2050 to achieve this goal. Recipe for a Livable Planet: Achieving Net Zero Emissions in the Agrifood System offers the first comprehensive global strategic framework to mitigate the agrifood system’s contributions to climate change, detailing affordable and readily available measures that can cut nearly a third of the world’s planet heating emissions while ensuring global food security. These actions, which are urgently needed, offer three additional benefits: improving food supply reliability, strengthening the global food system’s resilience to climate change, and safeguarding vulnerable populations. This practical guide outlines global actions and specific steps that countries at all income levels can take starting now, focusing on six key areas: investments, incentives, information, innovation, institutions, and inclusion. Calling for collaboration among governments, businesses, citizens, and international organizations, it maps a pathway to making agrifood a significant contributor to addressing climate change and healing the planet.