Limited access to finance is a major obstacle to development of SMEs in Africa as their inherent higher perceived risk makes financial institutions reluctant to lend to them and adequate financial instruments lack.

Limited capacity to pay, large infrastructure needs and a huge backlog in the construction of sanitation facilities make recourse to cross-subsidies and government-funded subsidies a necessity in Africa. * This Policy Insights introduces the African...

Despite growing aid volumes, financing development is becoming more difficult, not less. Better information on private finance flows will help developing-country governments craft more effective policies. Without stronger government leadership,...

The Extractive Industries Transparency Initiative (EITI, www.eitransparency.org) aims to improve transparency and accountability by the full publication and verification of company payments and government revenues. The revenues flowing from natural...

More and better data are needed to monitor and evaluate the impact of vocational training on economic growth and poverty reduction. Labour market observatories can help align training systems to labour market needs. Analysis of youth unemployment is...

Access to energy is essential for economic, social and political development. Despite its enormous potential in fossil and renewable energy sources, Africa suffers from major energy deficits. The continent’s resources are underexploited or exported...

New actors and instruments have increased the complexity of the international development-finance architecture Efficient aid delivery confronts challenges: multilateral duplication, mission creep and loss of leverage. Specific measures of...

Income is very unequally distributed in Latin America - but so too are opportunities for upward mobility. Early childhood development is a powerful mechanism to level the social playing field. More and better secondary education is key. Better...

China's growing influence on Africa and on Latin America has, to some extent, overshadowed the rise of another emerging market giant in the East: India. This other Asian emerging presence is also symbolic of the rapid redesigning of the global...

Latin America has put its faith in democracy and the market economy. Efficient, fair and equitable fiscal policy can help foster development and consolidate democracy. * This Policy Insights is based on the Latin American Economic Outlook 2008.

A coherent institutional framework that supports investment, exchange and representation mechanisms is a key precondition for agricultural development. The importance of customs and traditions for the process of agrarian transformation has been...

Latin American Countries vary widely in their institutional capacity to conduct economic policy analysis. Capacity for policy analysis is a necessary condition for economic reform but capacity for implementation is also needed. The point of contact...

Decentralising health services – the transfer of power and responsibility from the central to the local level – should help the poor if local resources, accountability and governance are in good shape. The process in China and India had negative...

Decentralisation has become a key issue in development policy in the past two decades. Whereas the advantages and risks of transferring power and resources to local tiers of government have been debated for quite some time, it is only very recently...

While the overall picture for gender equality is still gloomy, recent changes in family institutions in come countries provide an enlightening example.

Different cultures entail both a great diversity of household structures and different saving patterns. The diversity of family relations and saving patterns creates different incentives for physical and human capital accumulation. Policies can alter...

The quality of local corporate governance is critically important for the success of long-tem development efforts throughout the developing world today.

Reducing under-five mortality rates in Africa by two-thirds is urgent. HIV-AIDS, malaria, lack of basic health services and conflict are hampering progress. Preventable diseases take a heavy toll on the under-fives. Preventing the deaths of children...

China’s trade impact on Latin America is positive via an export boom and indirectly better terms of trade. Its emergence is also a wake up call for the region: more reforms are needed, especially in infrastructure, in order to maintain Latin...

Are the financial markets politically correct? In other words, do they have preferences when it comes to political regimes or partisans? This issue has often been explored with regard to foreign direct investment (FDI) or public development aid, but...