Informal employment persists, even when the economy is growing. Understanding the phenomenon is necessary to “tame the beast” of informality. Coherent policies are needed to create decent jobs and provide social protection

Fast-growing African countries are attracting private equity and risk capital as never before. The conditions attracting private investors are likely to improve.

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.

Growing trade with China and India offers new export opportunities for Latin America. Latin American countries need to invest in infrastructure and innovation. * This Policy Insights is based on the Latin American Economic Outlook 2008.

Foreign investment in telecommunications in Latin America has amounted to over $110 billion since 1990, more than for all other developing countries combined. Only one in four of the poorest Latin Americans has a telephone line; competitive markets...

Pension reform in Latin America has helped deepen capital markets, but with mixed results in terms of increasing national savings. Private pension funds have a still untapped potential to help to improve corporate governance of the companies in which...

Poor countries will remain vulnerable to external shocks from export prices or from natural disasters for some time. Indeed, the lowest income countries have an even higher incidence of such adverse events than other developing countries and tend to...

Technological change and organisational advancements have made possible the greater participation of developing country producers in international trade, in a wide range of goods and services. However, firms based in industrial countries often...

Private business activity, by creating and using “ideas”, drives economic growth in both rich and poor countries. Creating an enabling business environment is necessary but not sufficient for fostering the private sector in poor countries. Open...

Growth will accelerate for net oil exporters and weaken slightly for oil importers, strengthening the trends projected in African Economic Outlook 2006. For the oil importers, moreover, inflation is moving to double-digit levels. Budget deficits in...

Strong commodity prices are driving Africa’s growth, which should be about 6 % in 2007 and 2008. External vulnerability is a function of its limited integration into international trade and investment flows. Africa should mobilise external sources...

The long-term decline in political instability continued in 2006 and armed conflicts, though still widespread, have diminished. Multiparty elections have taken place in several African countries and progress towards participative democracy is...

Cancelling of poor-country debt does not mean that the best way to give aid is through grants only. Aid through loans may often prove superior, provided that it maintains debt sustainability. A new scheme for soft loans is suggested, with higher...

The recent expansion of African horticultural exports has proven that business is changing on the continent. The experience of Senegal and Mali suggests that the two countries are facing major challenges in strengthening policy co-ordination,...

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...

Africa is unlikely to reach the drinking water and sanitation Millennium Development Goals. Disparities among countries are large, and the deficit in sanitation is greater than that for drinking water. Serious reforms in institutions, legal...

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,...

Risk-based public debt management and liquid domestic bond markets are important mutually reinforcing strategies for emerging financial markets and developing countries in general.

The Democratic Banker (03/2007) (Other Languages : FR / ES) Policy Insights No.38 by Javier Santiso Banks contribute not only to the economic development of emerging countries but also to political development. International bank flows in an emerging...

Bond financing has replaced bank loans and other sources of capital flows as a major source of funding for emerging markets. This shift has been particularly impressive in Latin America. Disentangling the dynamics of emerging bond markets and the...