PSD Blog - The World Bank Group

We are looking for experimental research in entrepreneurship

The 2007 World Bank Entrepreneuship Database finds significant relationships between entrepreneurial activity and the quality of the enabling environment. The bank and the Kauffman Foundation are now jointly offering funding of up to $35,000 for research projects that will study what contributes to greater entrepreneurship and formal sector participation.

Research proposals are due by January 15, 2008. A pre-conference is scheduled for fall 2008 and the main conference for 2009. Detailis are here.

Windstorm bonds breeze through markets

Following a successful placement of flood and earthquake cat bonds in April, a new tranche, this time covering windstorm risks in seven European countries, is launched. By transferring the risks from insurance companies to willing market investors, these bonds provide an additional instrument for risk management.

The parametric index trigger in those bonds is linked to objective measurements of wind speed at various locations rather than an estimate of losses, which helps speed up disbursement and lower costs of damage assessment.

New breed of NGOs

Africa has been experiencing a period of strong growth, but problems such as AIDS, corruption or insufficient infrastructure still undermine development.

A panel at Wharton discusses the way new high-profile NGOs are filling the gap between inadequate government programs and the shortcomings of traditional aid.

AIDS day 2007

Two days before December 1, the World Bank observes the World Aids Day – this year Magic Johnson will give the keynote address. 

Earlier last week, in a new report the UN revised down, by 6.3 million, the number of people that the agency estimates are infected worldwide from 39.5 to 33.2 million.  This 16 percent decline has more to do an improvement of the quality of data - previously high-risk groups in India and five Sub-Saharan African countires (Angola, Kenya, Mozambique, Nigeria, and Zimbabwe) were overrepresented - than in overall health.

PWC and World Bank did it again

The World Bank – IFC and the global accountancy firm PriceWaterhouseCoopers jointly published Paying Taxes 2008, their second report. The study, which compares tax systems of 178 countries, uses the total tax rate indicator (TTR) as a measure of the amount of all taxes and mandatory contributions borne by the business in the second year of operation, and expressed as a percentage of firms' profits.

Overall, while 31 countries have improved their business tax systems, 7 of the bottom 10 countries still force their businesses to pay taxes at least once a week and to spend at least 65 days per year in the process. Burundi and Gambia require businesses to pay respectively 278 and 286 percent of their profits, according to the report.

Microfinance congress in New York

Starting May 14, 2008, New York will host a three-day event for microfinance practitioners and those interesting in entering the field. Both IFC and CGAP representatives will be there.

Islamic car

Islamic banking is centered on the concept of sharing risk and one of its major distinguishing features is a ban on interest payments and speculation.

Exploring the differences beyond finance, The Economist has a story on Proton, the Malaysian carmaker, who toys with the idea of manufacturing an "Islamic" car:

As planned, [Proton's] "Islamic" car will feature a compass to indicate the direction of Mecca, a box in which to store a copy of the Koran and a compartment for a headscarf.

Solutions for poverty: between the left and the right

Paul Collier, the author of the "Bottom Billion," sums up both sides of the development spectrum:

At present, the clarion call for the left is Jeffrey Sachs' book "The End of Poverty." Much as I agree with Sachs' passionate call to action, I think that he has overplayed the importance of aid. Aid alone will not solve the problems of the bottom billion. We need to use a wider range of policies.

At present, the clarion call for the right is economist William Easterly's book "The White Man's Burden." Easterly is right to mock the delusions of the aid lobby. But just as Sachs exaggerates the payoff to aid, Easterly exaggerates the downside and again neglects the scope for other policies. We are not as impotent and ignorant as Easterly seems to think.

Waste: don't just take it away

Born out of a failed methane experiment comes a water-treatment system that uses 90 percent less energy than conventional sewage system and cost 50 percent less to operate. Dean Cameron – the creator of the Biolytix Water – harnessed worms, beetles and billions of microscopic organisms to turn human waste into water suitable for irrigation.

The low cost (a small version for four people could cost $175) and its minimal energy use hold a promise for 2.5 billion people around the world who can't afford proper sanitation. So far there are 3000 biotanks installed in homes and businesses across the Pacific.

Global development matters

The Center for Global Development – the publisher of the Commitment to Development Index (CDI), which ranks 21 richest countries on their policies' effect on poor countries - launched Global Development Matters.

The new site, designed with the U.S. audience primarily in mind, has five new short videos on the topics ranging from health issues to global trade and subsidies. Microfinance video below:

See also their new GDB Blog. It tracks each of the U.S. 2008 presidential candidates and their stance on global development issues.