World Bank Country Studies
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Country Studies are published with approval of the subject government to communicate the results of the Bank's work on the economic and related conditions of member countries to governments and to the development community. This series as been superseded by the World Bank Studies series.
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Publication Gender in Bolivian Production : Reducing Differences in Formality and Productivity of Firms(World Bank, 2009-07-01) World BankA main goal of this study is to determine the variables responsible for the lower formality of women-owned businesses. The companion study (the World Bank 2007a) shows that Bolivia's informal sector is the largest in Latin America by many definitions and measures. It also provides a rationale for promoting formality given the many negative effects of a high rate of informality. These negative effects include a lower growth potential as informal firms tend to be less productive owing to limited access to physical, financial, and human capital, and a smaller scale of operations; negative fiscal impacts as informal firms "free ride" on services provided with fiscal resources; and negative social externalities, including weaker rule of law and public institutions, increased corruption, and weakened ability to enforce contracts. A second goal of this study is to identify gender-based productivity constraints that hinder the growth of female-owned businesses. First, author's analysis of the impact of formality on profitability shows that the gains of formalization for most female-owned businesses increase as the firms grow. Second, author's find that the smaller scale of operation of female-owned firms is one of the main causes of gender-based differences in productivity and profitability. However, most of the differences between male and female-owned firms diminish or disappear as firms grow.Publication Increasing Formality and Productivity of Bolivian Firms(World Bank, 2009-06-01) World BankBolivia's informal sector is the largest in Latin America, by many definitions and measures. Bolivia's high informality rate has been blamed on many factors including the burden of regulation, the weakness of public institutions, and the lack of perceived benefits to being formal. The high level of informality has a number of negative implications related to for low productivity, low growth, and low quality of jobs. This study presents fresh qualitative and quantitative analyses to better understand the reasons why firms are informal and the impact of formalization on their profitability, in order to inform policy actions appropriate to the reality of Bolivia. The crucial finding of the analysis is that the impact of tax registration on profitability depends on firm size and the ability to issue tax receipts. The smallest and the largest firms in the sample have lower profits as a result of tax registration because their cost of formalizing exceeds benefits. Firms in the middle range (two to five employees) benefit from tax registration in large part due to increasing the customer base by issuing tax receipts. The study presents a set of prioritized policy implications for policy makers. In the short term, the first priority should be to increase the benefits of formalization through training, access to credit and markets, and business support. The second priority is to increase information on how to formalize and its benefits. In the medium term, the priority is to simplify formalization, regulatory, and taxation procedures and to reduce their costs. Increasing even-handed enforcement of taxation and regulation is also important but not a priority for micro and small firms. Measures to boost the productivity of micro and small firms in general will help overall economic growth, employment, and formalization.Publication Argentine Youth : An Untapped Potential(World Bank, 2009-03-01) World BankArgentina's youth, 6.7 million between the ages of 15 and 24, are an important, but to a certain extent untapped, resource for development. Over 2 million (31 percent) have already engaged in risky behaviors, and another 1 million (15 percent) are exposed to risk factors that are correlated with eventual risky behaviors. This totals 46 percent of youth at some form of risk. Today's youth cohort is the country's largest ever and it's largest for the foreseeable future. If policymakers do not invest in youth now, especially in youth at risk, they will miss a unique opportunity to equip the next generation with the abilities to become the drivers of growth, breaking the intergenerational spiral of poverty and inequality and moving Argentina back into the group of high-income countries. If youth are educated and skilled, they can be a tremendous asset for development. If not, they can burden society and public finances. Overall, Argentina is blessed with high enrollment rates in school, low levels of crime and violence, and moderate to low drug use by youth. However, youth employment, smoking and binge drinking (including its effect on traffic accidents), teen pregnancies, and HIV pose challenges for youth policy. While most youth in Argentina are educated, skilled, and healthy, a large group is potentially at risk of engaging in myopic behaviors, including school absenteeism and leaving, substance use and abuse, delinquency, crime, and risky sexual behavior. The consequences of these risky behaviors, unemployment, adolescent pregnancy, sexually-transmitted diseases, addiction, incarceration, violence, and social exclusion, make it difficult for youth to successfully transition to adulthood, imposing large costs on individuals and society. Applying the framework of the world development report 2007, this report examines the five life-changing transitions that all youth confront: leaving school and continuing to learn, starting to work, developing and maintaining a healthy lifestyle, forming a family, and exercising citizenship.Publication Haiti : Public Expenditure Management and Financial Accountability Review(Washington, DC : World Bank, 2008) World BankHaiti made good progress over the past three years but major challenges remain to accelerating growth and reducing poverty. After the lost decade 1994-2004, marked by political instability and economic decline, Haiti reformed significantly and revived growth, especially in the past three years. Macroeconomic policies implemented since mid-2004 helped restart economic growth, reestablish fiscal discipline, reduce inflation and increase international reserves. Financial sector stability has been maintained though weaknesses have emerged. Significant progress was also achieved in the implementation of economic governance measures, mainly in the area of legal framework, core public institutions and financial management processes and procedures. Notably, basic budget procedures were restored, the public procurement system strengthened, and anti-corruption efforts stepped up. Efforts were also made to improve efficiency and transparency in the management of public enterprises. This wave of reforms led to renewed confidence and translated into higher growth. Real Gross Domestic Product (GDP) is estimated to have grown by 2.3 percent in FY2006, implying an increase of about 0.6 percent in per capita GDP, compared to -0.2 percent in FY2005. The successful implementation of its stabilization program helped Haiti benefit from a three year International Monetary Fund (IMF) - Poverty Reduction and Growth Facility (PRGF) supported program. In addition, in November 2006, Haiti qualified for debt relief under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative by reaching the decision point under the initiative.Publication Putting Tanzania's Hidden Economy to Work : Reform, Management, and Protection of its Natural Resource Sector(Washington, DC : World Bank, 2008) World BankThis paper tells a story about conditions in Tanzania's hidden economy, the parts of the natural resource sector often ignored in conventional economic analyses and studies, and makes recommendations for future policy actions. The paper draws primarily from extensive background studies undertaken of the forestry, fishery, wildlife, mining, and tourism sub sectors (COWI 2005) as well as a wide range of complementary studies undertaken by the World Bank and others. It de-emphasizes those sectors with factors of production that are not readily traded or exported (such as land and water), although some examples are given relating to soil quality and water management based on extensive studies undertaken within the agriculture and water sectors. The story is relatively simple: pricing distortions, coupled with institutional weakness and the lack of rule of law, have created an environment that undermines economic growth. This paper also acknowledges that Tanzania has already taken positive steps to making some of the needed corrections to protect its natural resources. In recent analyses of corruption indicators world-wide (World Bank Institute 2006), Tanzanian stands out among those nations as having made significant progress towards improving accountability and reducing economic leakages. Anti-corruption legislation was drafted for parliament attention in early 2007. Revisions to the Deep Sea Fishing Authority Act were passed into law in early 2007. Moreover, changes in institutional arrangements, taxation, and general management of the resource sector show promise and have contributed positively to general economic growth. Yet, the sector remains fragile and vulnerable in other respects: perceptions of unequal income distribution, impacts of climate change, and other external influences must also be addressed to build on past successes.Publication Nutritional Failure in Ecuador : Causes, Consequences, and Solutions(Washington, DC: World Bank, 2007) World BankThis study supports the development of a more coherent and effective nutrition strategy in Ecuador through an analysis of the main nutrition issues, based on in-depth statistical analysis of a large new household survey dataset (ENDEMAIN 2004) and other data sources, together with a review of qualitative evidence regarding behavioral and program-access obstacles to improved nutritional outcomes. It also reviews the existing programs and policies which aim to improve nutritional outcomes, considered the available evidence on the efficiency, effectiveness, targeting and inter-programmatic coherence of the programs and projects reviewed and suggests an agenda for policy discussions to improve these outcomes.Publication Fostering Higher Growth and Employment in the Kingdom of Morocco(Washington, DC: World Bank, 2006) World BankThis book identifies the binding constraints to growth of Morocco. It applies an innovative procedure known as "growth diagnostic" and has a central finding. The Moroccan economy suffers from a too slow process of structural transformation for achieving higher growth, especially for its exports that face unfavorable external shocks arising from competitor countries in the main markets for Moroccan exports. This process of so-called "productive diversification" requires that Morocco enhance its competitiveness.Publication Public Expenditure Management and Financial Accountability in Niger(Washington, DC, 2005) World BankThis study shows how difficult it is for Niger to significantly change its expenditure composition in a short time span. A narrow and volatile domestic resource base, heavy dependence on aid, and a large share of pre-determined expenditures such as external debt payments are important factors behind this lack of flexibility. There are ways, though, to create space in the budget for increasing public spending on priority sectors. The study identifies a number of measures in this regard, such as increasing domestic revenues, more realistic and conservative budgeting, strengthening cash management, controlling the wage bill, prudent borrowing and attracting higher external financing for recurrent costs in priority sectors. The study also shows that enhancing the efficiency and transparency of public spending is as important as increasing spending for PRS priority sectors. It thoroughly assesses public management systems in Niger and presents an action plan, jointly elaborated by the Government and its main external partners, to address the main challenges in this area. This action plan contains a priority set of measures to improve budget preparation, execution as well as internal and external oversight.Publication Central America Education Strategy : An Agenda for Action(Washington, DC, 2005) World BankThe main objective of this regional paper is to provide an in-depth diagnostic of where Central American countries stand along several education dimensions, underscoring the most urgent and serious challenges and suggesting policy options to address them. The report focuses on El Salvador, Honduras, Guatemala, and Nicaragua because these countries have common geographic, political, and economic features which make them broadly comparable also from the standpoint of their education sectors. They face common challenges but they can also learn from each other. A comparison with other countries is also provided to be able to put in perspective the education performance and the development path and interventions applied in these four countries.Publication Education in Ethiopia : Strengthening the Foundation for Sustainable Progress(Washington, DC, 2005) World BankWith the end of civil war in 1991, Ethiopia's government launched a New Education and Training Policy in 1994 which, by the early 2000s, had already produced remarkable results. The gross enrollment ratio rose from 20 to 62 percent in primary education between 1993-94 and 2001-02; and in secondary and higher education it climbed, respectively, from 8 to 12 percent and from 0.5 to 1.7 percent. Yet the government can hardly afford to rest on its laurels. Primary education is still not universal, and already there are concerns about plummeting educational quality and the growing pressures to expand post-primary education. Addressing these challenges will require more resources, both public and private. Yet money alone is insufficient. Focusing on primary and secondary education, this report argues for wise tradeoffs in the use of resources-a result that will often require reforming the arrangements for service delivery. These changes, in turn, need to be fostered by giving lower levels of government more leeway to adapt central standards-such as those for teacher recruitment and school construction-to local conditions, including local resource constraints; and by strengthening accountability for results at all levels of administration in the education system.