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Identification systems are a core component of sustainable development policies in countries with diverse economic, demographic, and political contexts. The role of digital identification systems in the private sector is equally large. The efficient, accurate, and secure use of personal identity data is at the heart of most transactions, regardless of the industry in which they take place. The implementation of robust and inclusive identification systems at the national level offers the potential for large financial gains for private sector companies. As a companion piece to the World Bank's identification for development (ID4D) work on fiscal savings for government agencies, this paper provides a first step toward developing a greater understanding of the financial benefits of identification systems for the private sector. By developing a framework for cost savings and revenue generation opportunities and aggregating existing case studies, it provides a preliminary assessment of expected benefits of government-backed identification systems for firms across a variety of industries. This paper is therefore intended to serve as a resource for governments and donors looking to gauge the potential impacts of implementing an identification system and for private sector leaders and industry groups to fruitfully engage on identity-related issues.
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The tourism sector in Rwanda is growing rapidly, largely driven by gorilla trekking and the Meetings, Conventions, Incentives and Exhibitions (MICE) segments. Despite this growth and government prioritization of tourism, there had been a gap in the regulation of the tourism sector, which was potentially affecting the attractiveness of the Rwandan market as a tourism destination and reducing the competitiveness of firms providing tourism services. to help address this gap, the World Bank Group (WBG), through the International Finance Corporation (IFC) Advisory Services, provided technical assistance in Rwanda over three years to support the creation of a new tourism regulatory agency, operationalize two new regulations, and license over 400 tourism entities under challenging time and resource constraints. In working with the Government of Rwanda and other stakeholders, IFC learned several lessons that may be useful to other practitioners who are considering: how to create and develop a regulatory regime from scratch to respond to a specific regulatory gap; how to place an emphasis on implementation beyond pure policy work; and how to be flexible and innovative to make the system as efficient as possible under time and resource constraints. This note sets out what was achieved, how it was achieved, and what was learned in the process. Together with material on global best practices, it is designed to provide a practical case study and share implementation insight for.
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Governance quality plays a key role in private sector development: competent bureaucrats not only create good policies and regulations, but also effectively implement them to shape the business environment. This paper exploit Vietnam's decentralization of administrative tasks since the early 2000s to test this hypothesis. The paper examines how changes in the provincial administration of national business regulations affect firms through two channels: within-firm productivity levels and resource allocation across firms. The results show that better overall business environment has a positive impact on firm productivity, and this effect is driven by a reduction in corruption levels, the risks of land expropriation, and entry regulations. The analysis also finds that high-productivity firms are generally better able to take advantage of improvements in the business environment. However, better implementation of entry regulations matters most for less productive firms. The study does not find evidence for the impact of business environment quality on province-level market efficiency.
Business Environment --- Productivity --- Resource Allocation
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This paper uses comprehensive and comparable firm-level manufacturing census data from four Sub-Saharan African countries to examine the extent, costs, and nature of within-industry resource misallocation across heterogeneous firms. The paper finds evidence of severe misallocation in which resources are diverted away from high-productivity firms toward low-productivity ones in all four countries, although the magnitude differs across countries. The paper shows that a hypothetical reallocation of resources that equalizes marginal returns across firms would increase manufacturing productivity by 31.4 percent in Cote d'Ivoire and as much as 162.7 percent in Kenya. The paper emphasizes the importance of the quality of the underlying data, by comparing the results against those from the World Bank Enterprise Surveys. The comparison finds that the survey-based results underestimate the extent of misallocation vis-a-vis the census. Finally, the paper finds that the size of existing distortions is correlated with various measures of business environment, such as lack of access to finance, corruption, and regulations.
Business Environment --- Distortions --- Misallocation --- Total Factor Productivity
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Cocoa is essential to Cote d'Ivoire. This sector mobilizes close to one million producers who provide income to five million persons (one-fifth of the country's population) in order to meet 40 percent of global supply. Cocoa is also the country's leading foreign exchange earner and is among the sectors making the biggest contribution to government revenue. In short, cocoa plays a central role in Ivorian society and in the lives of many families. However, despite its importance to the Ivorian economy and society, the cocoa sector is not fully playing its role as the engine of economic development. Some even go so far as to cite the curse of 'brown gold,' for at least three reasons. First, more than half of producers live below the poverty line-on less than CFAF 757 (roughly 1.2 US Dollar) a day. Second, the price paid for the expansion of cultivated areas in recent decades has been the destruction of virtually all the country's forests. Third, Cote d'Ivoire has not yet managed to increase its share (between 5 and 7 percent) of the profit made along the cocoa-chocolate global chain. Given this situation, it is not surprising that cocoa is at the center of a host of economic policy discussions in Cote d'Ivoire and that the Government has sped up its deliberations aimed at improving the performance of the sector, in particular through the Abidjan Declaration signed jointly in 2018 by the Presidents of Cote d'Ivoire and Ghana, which seeks to harmonize their policies and thus maximize their profit (these two countries account for approximately 65 percent of global production). After analyzing the most recent trends in the Ivorian economy, this ninth economic update for Cote d'Ivoire therefore focuses on how the cocoa sector could support the structural transformation of the country and, in so doing, promote greater economic and social inclusion.
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In May 2015, the Boyner Group, in a joint initiative with the International Finance Corporation (IFC), launched the Boyner Group's good for business program, working with female managers and owners of companies that are suppliers to the Boyner Group. The program is part of Boyner Group's broader goal of promoting equal opportunity for men and women and establishing gender equality within the company and its supply chain. Women-led companies make up 17 percent of all direct suppliers to the Boyner Group. The program aims to raise their productivity and business performance, building the participants' capacity through classroom training, coaching, guest lectures, and access to market opportunities through networking events, and a vendor fair. After the successful completion of the pilot phase, the Boyner Group good for business program aims to engage more of its female suppliers through further sessions of the program. The objective of this study is to inspire and inform corporates, donors, and others interested in developing similar programs and to share some of the learning from the pilot phase of the good for business program.
Business Environment --- Gender --- Private Sector Development
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This study looks into the challenges and opportunities posed by urbanization in Guinea, reviewing briefly the trends at the national level but focusing on the urban area of Conakry. The main reasons for focusing on the urban area of Conakry are the following. While secondary cities in Guinea are growing economically and in population, Conakry already represents close to 50 percent of the urban population and its demographic growth outpaces that of other urban areas. This creates a sense of urgency to solving the country's capital problems. Secondly, Conakry remains the country's main interface for international trade through its port facility. Failure to address Conakry's issues, including congestion levels, would likely weaken its (and Guinea's) attractiveness in the long run. Follow-up studies could however look into Guinea's system of cities, including how they are connected to each other within the country and with their neighbors. The analysis presented in this review shows that urban areas in Guinea, and Conakryin particular are currently not acting as engines of growth and competitiveness and are failing at providing public services and quality living standards for their residents. It argues that the reasons are to be found i) in the business environment which, recent progress aside, stymies private sector job creation and economic diversification, ii) in Conakry's deficient connectivity system which acts as a bottleneck for residents to have access to economic opportunities, iii) in its obsolete and unenforced planning strategies and its rigid land markets and iv) in the lack of institutional clarity and financial resources which leads to underinvestment in public services.
Business Environment --- Housing --- Urban Planning --- Urbanization
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InfoDev - innovation and entrepreneurship report green sectors, such as renewable energy and sustainable agriculture, are some of the most important economic sectors for meeting the targets agreed in the Paris climate accord, achieving the sustainable development goals (SDGs), and realizing overall development gains in the coming decades. This study was initiated to shed light on the common challenges that have limited the scaling of green enterprises and the emergence of competitive green sectors in developing countries. It also aims to uncover and catalog emerging opportunities. Finally, the study offers key recommendations for donors, governments, development finance institutions (DFIs), and entrepreneurial supports organizations.
Business Environment --- Irrigation --- Solar Energy --- Waste Management
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This report documents the results of a survey that was conducted to better understand howthe justice system affects the business environment in eight countries in South East Europe (SEE);Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia andSerbia. The primary purpose of the Survey was to analyze businesses' perceptions of and experienceswith the justice system and in particular, the performance of the courts in their respective countries. The Survey also identified the challenges businesses face in their daily operations, assessed the impact of the justice system on businesses and established which justice issues present the greatest obstacles for business operations and growth. This research is part of a broader initiative to inform justice policy dialogue and reform in the Western Balkans.
Access to Justice --- Business Environment --- Judicial Reform --- Rule Of Law
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Bhutan has been reforming its doing business environment in recent years as part of a policy shift to improving its investment climate and economic performance.Overall, it is ranked 75 out of 190 countries and is the highest ranked country in the South Asia region, significantly outperforming Bangladesh and Pakistan. In the last decade, as part of a Government policy agenda to improve competitiveness, Bhutan has launched across the board reforms in many areas.During the DB 2018 period, there was not a reform momentum in Bhutan. The very slight downgrading of the ranking can be attributed to reform inertia after a decade of success. Another factor for the lack of improvements in DC in 2018 has been Government focus on other reforms, especially involving hydropower, cottage and small industries and SOE's.Reforms clearly need acceleration after a decade of strong reform momentum, spurred by desire to see improvements in Bhutan's overall ranking has not moved significantly in either direction. There has been significant improvement in dealing with construction permits and in enforcing contracts but deterioration in protecting minority investors and registering property. The lack of forward momentum reflects slippages in reform momentum due to policy environment and shifting government priorities.First, access to credit in Bhutan is improving due to the expansion of the scope of collateralizable assets and the deepening of the credit bureaus. Second, the National Land Commission, a competent and responsible public agency managing land administration, has made progress in terms of land registration and online portals. According to the National Land Commission (NLC), the average days to register property declined from 54 days in 2016 to 42 days in 2018. Finally, recent Government attempts to streamline regulations and dismantle administrative complexities should help reduce transactions costs for private operators.top of these areas, Bhutan's business climate remains constrained by imperfections in factor markets, limited access to product markets, and state dominance.The focus has been on ways to set up businesses, improve construction permits, improve credit bureaus, ensure better land registration, and protect minority investors. The Bank/IFC team is working in close collaboration with this new team and providing relevant international experience and support.
Access to Finance --- Business Environment --- Investment Climate --- Property Rights --- Trade
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