PSD Blog - The World Bank Group

Intel launches 'Community PC' in India

Intel Corporation today officially launched an innovative PC platform that has been developed exclusively to meet the needs of rural villages and communities in India. Designed as a result of defining locally relevant computing solutions based on Intel technology, the Intel-powered “Community PC” platform is equipped to operate in a community setting while accommodating the varying environmental conditions prevalent in the country. With an objective to bridge the urban-rural divide, today Intel also announced its “Jaagruti” (“Awakening”) initiative designed to provide rural communities in India with greater economic and social opportunities.

See the press release.

Information markets for public policy

Bob Hahn and Paul Tetlock have finally released their information markets book. As apposed to most of the research out there, they specifically touch upon public policy implications and potentials. The full book is available online for free. Also see some previous posts about prediction markets and Hahn and Tetlock.

Some weekend reading...

Some links and papers that I've been meaning to write about. Passing along before they get too old.

• IMF checklist on the macroeconomic impact of scaling up aid
• BNP Paribas on the effects of canceling debt to poor countries
• ODI on governance, development and aid effectiveness
• Electricity restructuring in California
• The performance and outreach of leading microbanks
• The role of credit markets and creditor rights in economic development
• Globe & Mail on 'Millenium Man' Jeffrey Sachs
• Scientific American on globalization and the poor
• Ethan Zuckerman on why TED said no to Bono

Does good health attract FDI?

Yes –or at least for developing countries-, according to ‘The Effect of Population Health on Foreign Direct Investments.’ The main conclusion of the three Harvard School of Public Health authors is that:

A one-year improvement in life expectancy contributes to about a 9% increase in gross FDI inflows to low- and middle-income countries. Our findings are consistent with the literature that links health to increased worker productivity and suggest that the payoff to population health improvements should also include an elevated rate of FDI inflows.

The world in sum

Thousands of sites pull together country-specific demographic and economic information – though the CIA doesn’t stop there. They give you a snapshot of the entire world, all at once. Some amazing numbers. (Via Kottke)

Update: Also see the amazing maps of World Mapper. (Via Econoclaste, Dubner and Tyler)

Could a game win the Nobel Prize?

Probably not, but that won’t stop people from trying – at least not Eric Zimmerman, the man behind the Game Design Challenge. This year he has challenged game designers to concoct up something that could win the Nobel Peace Prize. The ideas include a game that aims to inspire players to spontaneously meet and carry out humanitarian acts such as food drives, another is meant to make players assume the role of their enemies – and see the human costs of their decisions. While none of the designers will ever be invited to Stockholm, serious games are certainly getting more serious.

European alliance for corporate responsibility

On March 22, 2006, a new business-led European Alliance for Corporate Social Responsibility (CSR) was kicked off by the European Commission.  It's goal: to reconcile Europe's economic and environmental ambitions. The alliance calls EU businesses to "move up a gear" and go beyond minimum legal obligations in order to make Europe a "pole of excellence" in CSR. The alliance is based on government's recognition that CSR is a voluntary behavior for companies, and that government and business need to work together to create an enabling environment for businesses to act more responsibly.  The call for enterprises to engage in CSR extends beyond business activities in EU borders, including interactions with supply chains.

New bloggers: Michael Jarvis and Can Atacik

I am happy to announce that Michael Jarvis and Can Atacik of the World Bank Institute’s Business, Competitiveness and Development Program have joined PSD Blog. Who knows, Michael might even upload one of his DJ tracks?

New World Bank blog!

I am happy to say that we are no longer the only World Bank Group blog on the block. (It would of course be hypocritical for a blog praising private sector development to unwelcome competition!) Our colleagues at the World Bank Institute have just launched the Poverty & Growth Blog. Click over, bookmark, subscribe and comment!

Lessons from the World Water Forum?

During the World Water Forum in Mexico, there was a lot of debate bout public versus private service delivery.  It was argued that private sector involvement has left the poor un-served.  Others argued that the private sector is the best way to move forward.  One thing everyone can agree on is that the poor do not have sufficient access to water and sanitation services. 

One mechanism that can help bridge the "public/private" divide is output-based aid (OBA).  OBA is about using explicit performance-based subsidies to help the poor afford access to basic services.  The subsidies would be for the most part targeted to poorer consumers, and would be paid (through the provider) only after the provider has delivered the agreed output. 

OBA is not a magic bullet -- it does not make a poorly designed project all of the sudden great, nor can it be looked at in a vacuum -- e.g. appropriate risk mitigation instruments, local financial capacity, etc...  However, even governments that are quite skeptical of the private sector have realized that an OBA-type approach can be used to increase private sector involvement to help bridge the affordability gap for the poor, while at the same time increasing the accountability of the provider who receives payment mostly after delivering the service.  OBA is a potentially strong mechanism to deliver aid more effectively and transparently.