April 16, 2012
This post is joint with Ross ThuotteToday, the World Bank announced that Jim Yong Kim will be the institution’s next president. As the dust settles from the leadership selection debate, the focus will necessarily shift to the issues that confront Kim and the world’s leading development institution. One of the most difficult and important questions is: how can the bank more effectively engage in fragile and conflict-affected countries?
The World Bank Group has worked in such countries for years. In recent statements and publications (notably, the 2011 World Development Report) the bank has placed this group of countries at the forefront of the development dialogue. This reflects increased donor concern about the economic, social, and political impact of conflict and fragility not only for the unfortunate people living in these countries, but for the rest of the world as well. Yet the World Bank Group lacks a group-wide strategy to guide its work in these difficult environments. As a result, country directors and task managers are often left with little guidance in countries that present highly complex challenges in addition to the difficulties already present in a typical developing country.Together with Ben Leo, we have studied one aspect of this problem—the bank’s support for private sector growth. Today we are releasing our report, Supporting Private Business Growth in African Fragile States: A Guiding Framework for the World Bank Group in South Sudan and Other Nations. We start with the assumption that the private sector is instrumental in promoting development – even in the most difficult of political environments. We argue that in order to improve its private sector interventions, the World Bank should align its projects with three criteria:
The World Bank Group has worked in such countries for years. In recent statements and publications (notably, the 2011 World Development Report) the bank has placed this group of countries at the forefront of the development dialogue. This reflects increased donor concern about the economic, social, and political impact of conflict and fragility not only for the unfortunate people living in these countries, but for the rest of the world as well. Yet the World Bank Group lacks a group-wide strategy to guide its work in these difficult environments. As a result, country directors and task managers are often left with little guidance in countries that present highly complex challenges in addition to the difficulties already present in a typical developing country.Together with Ben Leo, we have studied one aspect of this problem—the bank’s support for private sector growth. Today we are releasing our report, Supporting Private Business Growth in African Fragile States: A Guiding Framework for the World Bank Group in South Sudan and Other Nations. We start with the assumption that the private sector is instrumental in promoting development – even in the most difficult of political environments. We argue that in order to improve its private sector interventions, the World Bank should align its projects with three criteria:- The constraints that businesses cite as the most binding limitations to growth.
- The host governments’ priorities for business climate improvements or strategic economic sectors.
- The sectors in which World Bank projects have been most effective over time.
Disclaimer
CGD blog posts reflect the views of the authors, drawing on prior research and experience in their areas of expertise. CGD is a nonpartisan, independent organization and does not take institutional positions.
