Sector/Thematic Studies

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Economic and Sectoral Work are original analytic reports authored by the World Bank and intended to influence programs and policy in client countries. They convey Bank-endorsed recommendations and represent the formal opinion of a World Bank unit on the topic. This set includes the sectoral and thematic studies which are not Core Diagnostic Studies. Other analytic and advisory activities (AAA), including technical assistance studies, are included in these sectoral/thematic collections.

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Now showing 1 - 10 of 1015
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    Jobs, Food and Greening: Exploring Implications of the Green Transition for Jobs in the Agri-food System
    (World Bank, Washington, DC, 2023-05-16) Nico, Gianluigi ; Christiaensen, Luc
    The agri-food system (AFS) employs about one third of the global workforce and contributes about one third of global greenhouse gas (GHG) emissions. This together with its large exposure to the effects of climate change and environmental degradation makes what happens in AFS central to the green transition and its implications for jobs and the structural transformation. Microeconomic evidence suggests that the adoption of climate smart agricultural practices will increase labor requirements, at least in the short run and at lower levels of incomes, when its mechanization is still limited. Econometric macro-model-based simulations suggest however that especially substantial investment in climate friendly agricultural R&D as well as soil and water preserving practices and market integration will more than offset the negative effects of climate change and even accelerate the structural transformation, especially in Sub Saharan Africa. Overall, the findings underscore the tremendous potential of increasing agricultural and climate friendly R&D investment for brokering an environmentally sustainable structural transformation. Repurposing of agriculture’s current US$ 638 billion support package towards supporting more climate friendly practices, including to overcome the time lag between the moment of investment and the realization of the benefits, provides an important policy entry point.
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    Diagnosing the Binding Constraints to Better Jobs: An Approach and Framework
    (World Bank, Washington, DC, 2023-05-16) Osborne, Theresa
    The persistent lack of good jobs that is, an inadequate level or quality of jobs, inefficient and/or inequitable jobs outcomes is a key economic issue in developing (and some developed) economies. Yet policy responses often lack an understanding of the causes. While the proximate drivers, such as low productivity growth, slow capital deepening, or a lack of firms and other organized economic actors, may share patterns, the policy roots and circumstances of these outcomes vary a great deal by country. Thus, making progress in a meaningful and lasting way requires, in the first instance, a clear understanding of the binding constraints which, if alleviated, would result in a substantial structural improvement to jobs outcomes. Binding constraints could arise in a host of policies and institutions, including possibly inadequate human capital and labor market policies but also in infrastructure, regulatory, financial, judicial and other areas. This paper provides a data-driven approach and framework for diagnosing the truly binding constraints to better jobs. The approach is to rule out broad categories of constraints using economic logic and data, and to utilize an array of empirical indicators to test whether remaining candidate constraints are binding. While this paper outlines an exhaustive approach, the style of thinking and techniques can also be applied selectively to fill analytical gaps and ensure that key issues are not left unaddressed.
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    Designing and Delivering Government-Led Graduation Programs for People in Extreme Poverty
    (World Bank, Washington, DC, 2023-02-17) Gollin, Maxwell ; Miranda, Carolina de ; Muriuki, Taddeo ; Commins, Steve
    While governments face significant obstacles in designing and delivering approaches for people living in extreme poverty, a substantial body of research shows that programs can achieve transformative impact by addressing the socioeconomic barriers that often exclude this population. An increasing number of governments are adopting and scaling economic inclusion programs, including Graduation programs, to address the multidimensional vulnerabilities of people living in extreme poverty. By integrating the Graduation approach into their poverty reduction initiatives, governments can increase the impact and scale of their initiatives by investing in the systems, processes, and capacities needed to reach those furthest behind and deliver multidimensional, timebound, and sequenced program interventions. This In Practice paper shares insights and learning from four non-governmental organizations on the potential to scale up government-led Graduation programs for people living in extreme poverty. It contributes to the growing policy space around economic inclusion and identifies good practices for designing and implementing government-led Graduation programs. It makes recommendations and identifies key considerations for governments on how to identify, reach, and deliver impactful programming to individuals and households facing socioeconomic exclusion and marginalization.
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    Working for Inclusion: Economic Inclusion in Contexts of Forced Displacement
    (World Bank, Washington, DC, 2022-06-15) Heisey, Janet ; Sánchez, Inés Arévalo ; Bernagros, Alexi
    Since 2012, the number of forcibly displaced people has more than doubled, reaching 89.3 million by the end of 2021. Ongoing conflicts, including the war in Ukraine, will result in even larger numbers of forcibly displaced people. The economic and human development impacts of forcible displacement present challenges for the people who have been displaced, the communities that host them, and governments that receive them. Governments, humanitarian organizations, and others are using economic inclusion programs as one strategy to increase income and assets and build the resilience of displaced people and host populations living in poverty. An estimated 95 economic inclusion programs are underway in contexts of forced displacement in 45 countries, more than half led by governments. This note examines the experience of economic inclusion programs that serve forcibly displaced people, including internally displaced people, refugees, and their host communities. It also examines the emerging lessons learned in program design and delivery based on new data on the footprint of economic inclusion programs and a review of evidence on forced displacement and economic inclusion programming.
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    Collection of Policy Notes for the New Somali Government: Unlocking Somalia’s Potential to Stabilize, Grow and Prosper
    (Washington, DC : World Bank, 2022-06) World Bank
    The arrival of a new government provides an opportunity to reinvigorate the reform agenda to deliver inclusive growth for the Somali people. Since the establishment of the Provisional Constitution in 2012, Somalia has made commendable progress on many fronts. Macroeconomic stability has been maintained, high levels of indebtedness are being addressed through the Heavily Indebted Poor Countries (HIPC) initiative, several sector laws and institutions have been established, and a poverty reduction strategy paper has been developed – the ninth National Development Plan (NDP9). However, much remains to be done and the time has come to mark the next milestone in Somalia’s development trajectory through advancing reforms anchored in the HIPC process. The objective of the collection of policy notes is to provide sector-specific policy advice for the leadership of the new government, drawing on the expertise of the World Bank Group. This overview chapter synthesizes the advice across the sector policy notes and is organized in four sections. The first section outlines the current context. The second section presents the framework for organizing the policy notes. The third section summarizes the advice, and the fourth section concludes.
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    Somalia Economic Update, June 2022: Investing in Social Protection to Boost Resilience for Economic Growth
    (Washington, DC, 2022-06) World Bank
    Somalia is currently experiencing extreme and widespread drought which has been assessed as an unprecedented climatic event not seen in at least 40 years by meteorological agencies and humanitarian partners. After four consecutive seasons of poor rains, 90 percent of the country is experiencing severe drought conditions that include failed crop harvests, widespread water shortages, and decline in livestock production. The drought has intensified the humanitarian crisis and is driving the country into a brink of famine. Significant displacement of people is occurring as they abandoned their homes in search of food, water, and pasture for their livestock. The situation is being exacerbated by the war in Ukraine which has pushed up global food and oil prices. The higher commodity prices are disproportionally affecting the poor and exacerbating inequality. Against this challenging backdrop, the seventh edition of the World Bank’s Somalia Economic Update provides a detailed update of recent economic developments and growth outlook and makes a case for investing in Social Protection to help confront the frequent shocks that buffet the country. Overall, the Economic Update series aims to contribute to policymaking process and stimulate national dialogue on topical issues related to economic recovery and development.
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    Ethiopia - Rural Income Diagnostics Study: Leveraging the Transformation in the Agri-Food System and Global Trade to Expand Rural Incomes
    (Washington, DC, 2022-06) World Bank
    Ethiopia began the decade on a great run, with high economic growth and significant gains in poverty reduction nationally. But the gains were unevenly shared. Multiple shocks at the beginning of the new decade threaten to discontinue progress and possibly undo most of the gains made in the recent past. This rural income diagnostics (RID) study seeks to inform how to promote growth in rural incomes to accelerate poverty reduction. The objective of the RID is to examine how those who currently reside in rural areas can have higher incomes in the future, which can entail one or more members moving to urban areas. The focus is on income growth that results in higher incomes on average, but also income that is less volatile because of due consideration to effective risk reduction and management, and to ensuring that growth is sustainable. While the RID focuses only on income that is earned by rural households, it is much more detailed in its identification of the constraints because of this narrower focus. The diagnostic provides evidence to validate constraints and key areas of focus in ongoing agriculture and rural policy reforms and other relevant reforms under the Homegrown Economic Reform Agenda (HGERA), elevate the importance of some reforms where immediate action is required, and provide empirical arguments to support important policy interventions where consensus may be lacking or there is policy hesitation.
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    Toward More People-Centered Service Delivery: Opportunities for the National ID System in Lesotho
    (Washington, DC, 2022-05) World Bank
    This note documents the current and emerging use cases for the national ID (NID) system in the Kingdom of Lesotho. It demonstrates considerable potential and progress to date, and makes recommendations for moving toward a more inclusive, trusted and service delivery-oriented NID system. Global experience has shown that national ID systems can promote more efficient, transparent and people-centered service delivery in the public and private sectors, particularly when the system is designed with the appropriate enablers and safeguards in place to support improved development outcomes and mitigate risks. As countries move toward digital economies and governance, ID systems often serve as an essential digital platform, underpinning the digital payment infrastructure and transactions, as well as the provision of online and offline government services.
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    Chad Economic Update - April 2022: Resilience in Uncertain Times - Harnessing Agriculture and Livestock Value Chains
    (Washington, DC, 2022-04) World Bank
    Chad’s gross domestic product (GDP) contracted by 1.2 percent in 2021 - the second consecutive year of recession - driven by a two-month suspension of oil production at its Esso plants, economic disruptions due to sociopolitical insecurity, and liquidity constraints because of delays in debt restructuring. Low oil revenue, coupled with increased spending to deal with shocks, widened the fiscal deficit to 4.3 percent of GDP in 2021. The 2022-24 economic recovery is expected to be fragile and subject to significant downside risks related to recurrent and emerging sources of vulnerability. With a slow and fragile economic recovery, the adverse effects of the pandemic on poor and vulnerable households are expected to last in the short to medium term. Chad can seize emerging opportunities offered by the political transition, increasing oil prices, and debt restructuring to undertake reforms aimed at renewing its social contract and reducing long-term vulnerabilities. Stronger agricultural and livestock value chains are critical to economic diversification, sustainable growth, and food security in the medium to long term. Livestock is the economy’s most important non-oil sector and represents a major income source in the agriculture sector. The government should take bold actions to strengthen or create agricultural and livestock value chains.
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    The Long Shadow of Informality: Challenges and Policies
    (World Bank, Washington, DC, 2022-03-08) Ohnsorge, Franziska ; Yu, Shu ; Ohnsorge, Franziska ; Yu, Shu ; Capasso, Salvatore ; Elgin, Ceyhun ; Kasyanenko, Sergiy ; Kindberg-Hanlon, Gene ; Koh, Wee Chian ; Kose, M. Ayhan ; Okawa, Yoki ; Okou, Cedric ; Taskin, Temel ; Vashakmadze, Ekaterine T. ; Vorisek, Dana ; Ye, Sandy Lei
    A large percentage of workers and firms operate in the informal economy, outside the line of sight of governments in emerging markets and developing economies. Widespread informality may hold back the recovery in these economies from the deep recessions caused by the COVID-19 pandemic—unless governments adopt a broad set of policies to address the challenges of widespread informality. This study is the first comprehensive analysis of the extent of informality and its implications for a durable economic recovery and for long-term development. It finds that pervasive informality is associated with significantly weaker economic outcomes—including lower government resources to combat recessions, lower per capita incomes, greater poverty, less financial development, and weaker investment and productivity.