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 This series as been superseded by the World Bank Studies series.

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Now showing 1 - 10 of 14
  • Publication
    Gender in Bolivian Production : Reducing Differences in Formality and Productivity of Firms
    (World Bank, 2009-07-01) World Bank
    A 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 Bank
    Bolivia'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
    Angola : Oil, Broad-Based Growth, and Equity
    (Washington, DC: World Bank, 2007) World Bank
    This book points out that the main issues confronting the Angolan authorities in their efforts to consolidate macroeconomic stability on a sustainable basis and in promoting an improvement in the welfare of the Angolan citizens do not seem to differ significantly from those addressed in the 1990 report. Therefore, in the current Country Economic Memorandum, the Bank reassesses some of the key issues that remain relevant nowadays and that should help the Angolan economy reach a path of sustainable economic development. The analysis in this report centers around the following four core issues: (i) taking stock of socio-economic realities; (ii) the options available for the management of the country's mineral wealth without deleterious macroeconomic consequences; (iii) the main constraints to economic diversification away from the mineral sectors; and (iv) the challenges and opportunities to improve the welfare of the population. Each of these core issues forms the building blocks that provide an overview of the current situation and a possible solution to Angola's structural problems in the short to the medium term. The report thus plays an informative role and offers policy recommendations. In Chapter 1, the analysis starts with a brief discussion of socio-economic realities in the country. In Chapter 2, a comprehensive macroeconomic assessment is presented highlighting major past features, the country's constant search for stability, and recent successes in the macroeconomic front. In Chapter 3, the report discusses the structure of the petroleum sector, the future production profile, the size of the oil wealth, and policy options to manage the revenue windfall. Chapter 4 focuses on the diamond sector, its structure, legal and fiscal framework, and explores ways in which the sector can improve its contribution to social development. In Chapter 5, the report assesses the quality of the business environment and the opportunities to improve the investment climate. Chapter 6 discusses alternatives to unleash the potential of the agricultural sector in generating employment outside of the mineral sectors. Finally in Chapter 7, the analysis focuses on how to improve the livelihoods of the poor and of the vulnerable with recommendations on how to use the mineral wealth to improve public service delivery targeted to the poor.
  • Publication
    Public Expenditure Management and Financial Accountability in Niger
    (Washington, DC, 2005) World Bank
    This 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
    Creating Fiscal Space for Poverty Reduction in Ecuador : A Fiscal Management and Public - Expenditure Review
    (Washington, DC: World Bank and the Inter-American Development Bank, 2005) World Bank
    This report consists of two volumes. Volume I examines whether, and how, the core goals of public expenditure management, i.e., balanced fiscal aggregates, resource allocations to strategic sectors, and equity and microeconomic efficiency of public spending are met in Ecuador. Volume II presents sector studies on fiscal sustainability, the fiscal rules, education, health, pensions, the results of a national teachers tracking survey, water and sanitation, electricity, telecommunications and oil. Volume II deals with sectoral policies, and their link to fiscal management. It identifies the most efficient and cost-effective interventions in the social sectors, while making an optimal use of the reduced and available fiscal space. The study also recognizes the importance of political constraints, and the difficulties of setting steady rules in a non-cooperative game among national political actors that are particularly reflected in budget allocations.
  • Publication
    Household Risk Management and Social Protection in Chile
    (Washington, DC, 2005) World Bank
    This volume takes a critical look at the country's social protection "system" - broadly defined to include policy interventions, public institutions, and the regulation of private institutions that lower the welfare costs of adverse shocks to income from job loss and extended unemployment, health episodes, old age, and life-time poverty - to determine if a system exists or simply a set of loosely coordinated programs. The study also assesses whether households are provided with appropriate tools to mitigate risks to their income, identifying gaps in coverage and where instruments are missing. As well, the study provides the Government with a set of guidelines grounded in a conceptual framework that, if carefully applied, could increase the effectiveness of social protection. The author of the study finds that Chile succeeds in providing households with the instruments that they need to mitigate shocks to income. The institutions Chile has put in place to help households lower losses from these shocks - from the new unemployment insurance system, the retirement security system and the mixed health insurance system - are generally appropriately designed to match the nature of the risks they are intended to cover. Yet, while still in a minority, too many Chilean households - even among the non poor - do not have access to the sophisticated, state of the art social protection institutions that are in place.
  • Publication
    Zambia : Public Expenditure Management and Financial Accountability Review
    (Washington, DC, 2004-10-12) World Bank
    Zambia's economy is not growing fast. Poverty is on the rise. The quality of economic governance is on the decline. And public resources are not well spent. The badly needed first steps to reverse all this are to start getting the budgetary allocations right and to make sure those allocations go where they re intended. That requires making the public aware of the government s budgetary decisions and holding the government accountable for better performance. Budgets, now not credible, have to become credible. Spending rules, where they exist, must be strengthened and enforced. Where rules are missing, they must be created and once again enforced to remove today s pernicious discretion. Addressing the longstanding challenges that Zambia faces in public expenditure management will require strong political will. For Zambia to assure that public accountability is enduring and not dependent on the government of the day, it must strengthen budget processes and institutions that can provide public oversight and promote basic checks and balances. This report provides an analysis of how Zambia can strengthen budgetary processes and institutions for accountability and effective service delivery to its citizens.
  • Publication
    Slovak Republic--Joining the EU : A Development Policy Review
    (Washington, DC, 2003-06) World Bank
    The Slovak Republic's external current account and fiscal deficits (net of privatization receipts) are unsustainably high (at about 8 percent of GDP in 2002), despite some recent declines. With a capital account surplus of perhaps 20 percent of GDP this year, the Slovak Republic may not find it particularly difficult to finance these deficits, but this favorable situation will not last. Furthermore, through its impact on the real exchange rate, this policy mix is undermining the employability of large segments of the population (particularly those with low skill levels) and will ultimately choke growth (projected at 4 percent for 2002). While much policy attention has gone to stimulating investment, future growth will also depend on raising the employment rate, currently one of the lowest among the Central and East European Countries (CEECs). This report lays out the broad thrust of a policy strategy to bolster the recovery and bring the economy towards convergence with the EU. This strategy consists of three key elements: (a) Continued trade, finance, and enterprise reform to complete the structural transformation of the economy and align it with the EU framework (b) Fiscal consolidation, focusing on cutting back expenditure and stabilizing revenues, while redirecting revenue and expenditure policies to become more fully supportive of growth and employment objectives (c) Labor market reform, directed at enhancing labor market flexibility by relaxing legal provisions on working arrangements (such as part-time work, self-employment, and fixed term contracts), by decentralizing collective bargaining, and discarding the minimum wage as an instrument of incomes policy, and by reforming the social assistance system. The ultimate success of the policy reforms outlined in this report will depend to a great extent on the government's capacity to strengthen the institutional framework in which those policies are conceived, decided upon, and executed. Three priorities have been highlighted: (i) the reform of public expenditure management systems and practices needed to support a growth-oriented fiscal strategy; (ii) the consolidation of the recent decentralization moves as a prerequisite for further devolution, and (iii) a much overdue overhaul of the judiciary system.
  • Publication
    Non-bank Financial Institutions and Capital Markets in Turkey
    (Washington, DC, 2003-04) World Bank
    This study analyses the state of development, and prospects of future growth of Turkish non-bank financial institutions, and capital markets. Currently, credit markets in Turkey are dominated by banking, and capital markets are dominated by Government securities. Longstanding macro-economic instability, and inflation have discouraged investment in financial assets, and crowded out funding for the private sector. The resulting lack of depth, and breadth has made the financial sector vulnerable to shocks, resulting in repeated crises, and, has reduced its intermediation efficiency. To enhance the financial sector's capacity to support private sector development, and economic growth, and to reduce its vulnerability to shocks, non-bank sources of finance should be developed. The report identifies the key policy issues that should be addressed for this purpose. The discussion, and policy recommendations are structured around the following leading themes: a) mobilizing savings; b) building an institutional investor base, comprising insurance companies, private pension funds, and mutual funds; c) developing equity, debt, and derivative markets; d) developing leasing, factoring, and venture capital companies; and, e) strengthening confidence in financial markets through improved corporate governance, accounting and auditing standards, and practices, and, financial sector regulation, and supervision.
  • Publication
    Regaining Fiscal Sustainability and Enhancing Effectiveness in Croatia : A Public Expenditure and Institutional Review
    (Washington, DC, 2002-03) World Bank
    The report presents the macroeconomic setting, and fiscal developments in the 1990s in Croatia, a country facing an unparalleled opportunity towards sustainable growth, and integration into the European Union. Nonetheless, the country needs to sustain macroeconomic stabilization, and improve the investment climate. To this effect, public sector reform needs to be oriented to diminish the size of the state, and reduce the fiscal deficit to sustain macroeconomic stability in the medium term. Yet, the scope for reducing the deficit through revenue increases is limited, even though a decrease in the tax burden would be highly desirable. This means that most of the adjustment will need to be made in public expenditures, particularly by identifying, and implementing policies that will reduce the level of expenditures, while improving their effectiveness; thus, budgetary management improvement will be critical to this effort. The report analysis indicates that the current budget in Croatia is not a comprehensive measure of all fiscal activity, namely that five extra-budgetary funds are not included in the budget; that off-budget revenues, outside of the extra-budgetary funds, still exist; that the cash budgeting system leads to the accumulation of arrears that do not appear in budget presentations; and, that laws outside of the budget law, lead to mandatory spending that falls outside of the budget process.