'International Political Risk Management, Volume 2: The Brave New World' is the latest in a series based on the MIGA-Georgetown University Symposium on International Political Risk Management. Volumes in this series offer leading-edge assessments of needs and capabilities in the international political risk insurance industry. These assessments come from 18 experts in the fields of international investment, finance, insurance, and academe. Contributors to this volume consider 'The Brave New World' of the political risk insurance industry in the wake of September 11, 2001, the Argentine economic crisis, and other upheavals. The book begins with the supply-side perspective of insurers and then turns to the concerns of investors and lenders, in particular those involved in large infrastructure projects in emerging markets. It concludes with in-depth assessments of new challenges to definitions and coverage of currency transfer, expropriation, breach of contract, and political force majeure. The diverse and detailed arguments collected here come together in a surprising consensus: recent changes, contractions, and even losses are fueling the search for creative solutions and will ultimately prove beneficial for participants in the industry. An in-depth analysis from the front lines of international political risk management, this book will be a valuable guide to those who are considering private sector investments and privatizations in the developing world, whether as equity sponsors, lenders, or insurers. It should also be of interest to independent analysts and scholars working in the field of political risk management.
Printed on Demand. Limited stock is held for this title. If you would like to order 30 copies or more please contact firstname.lastname@example.org This work brings together the assessments and experiences of leading academics and practitioners from the international investor, lender and insurance communities. It examines the transformations in the political risk insurance market in the 1990s, resulting from changes in the broader insurance industry and from the rapid and complex expansion of foreign direct investment into emerging markets. It also analyzes some of the current supply and demand challenges in the political risk insurance marketplace in the wake of the financial crises of the late 1990s. The authors explore future directions in political risk management with regard to many of the most difficult issues: breach of contract coverage for firms with large fixed investments in sectors such as infrastructure and natural resources; securitization of political risk exposure; pricing and capacity in the political risk insurance industry; multiple pledge of shares between investors and lenders; and cooperation among private and public insurers. This book is a collection of papers stemming from a symposium on International Political Risk Management held in April 2000, under the joint auspices of the Multilateral Investment Guarantee Agency (MIGA) and the Karl F. Landegger Program in International Business Diplomacy at the School of Foreign Service, Georgetown University.
Transition to a new world order with more diffuse distribution of economic power is under way. This first edition of a new World Bank flagship report, Global Development Horizons 2011, focuses on three major international economic trends: the shift in the balance of global growth from developed to emerging economies, the rise of emerging-market firms as a force in global business, and the evolution of the international monetary system toward a multicurrency regime.
Pursuit of growth opportunities on a global level has meant that the international presence of emerging-market firms in cross-border production, trade, and finance has been on the rise for some time. Emerging and developing counties accounted for 46 percent of international trade flows in 2010, up from 30 percent in 1995. Cross-border mergers and acquisitions originated by firms based in emerging markets represent nearly one-third of global M&A transactions. The risk of investing in emerging economies has declined dramatically, while emerging economies’ financial assets and wealth have expanded: emerging and developing countries now hold three-fourth of all official foreign exchange reserves.
Despite the large, rapidly growing size of emerging economies and the expanding international presence of emerging-market firms, the role of emerging economies in the international monetary system remains relatively insignificant. No emerging-market currency is used to a great extent in holding official reserves, invoicing goods and services, denominating international claims, or anchoring exchange rates. Virtually all developing countries are exposed to currency mismatch risk in their international trade, investment, and financing transactions. But it appears that this too will change in the coming years. Smoothing the transition to a multipolar monetary environment will be high on the agenda of policy makers, who will face major decisions about whether fundamental reform of the rules of the international monetary system is in order.
Global Development Finance 2011: External Debt of Developing Countries is a continuation of the World Bank’s publications Global Development Finance, Volume II (1997 through 2009) and the earlier World Debt Tables (1973 through 1996). As in previous years, GDF 2011 provides statistical tables showing the external debt of 128 developing countries that report public and publicly guaranteed external debt to the World Bank’s Debtor Reporting System (DRS). It also includes tables of key debt ratios for individual reporting countries and the composition of external debt stocks and flows for individual reporting countries and regional and income groups along with some graphical presentations.
GDF 2011 draws on a database maintained by the World Bank External Debt (WBXD) system. Longer time series and more detailed data are available from the Global Development Finance 2011 on CD-ROM and the World Bank open databases, which contain more than 200 time series indicators, covering the years 1970 to 2009 for most reporting countries, and pipeline data for scheduled debt service payments on existing commitments to 2017.
The database covers external debt stocks and flows, major economic aggregates, and key debt ratios, as well as average terms of new commitments, currency composition of longterm debt, and debt restructurings in greater detail than can be included in the GDF book. The CD-ROM also contains the full contents of the print version of GDF 2011. Text providing country notes, definitions, and source information is linked to each table.
Global Development Finance 2011: External Debt of Developing Countries is unique in its coverage of the important trends and issues fundamental to the financing of the developing world. This report is an indispensible resource for governments, economists, investors, financial consultants, academics, bankers, and the entire development community.
The question of how to treat commodity production and how to manage recurrent cycles of booms and busts has always been a challenge for policymakers in commodity-dependent countries, including many in the LAC region. These challenges have led to allegations of a “commodity curse’’ that retards development in these countries, but as of yet, there is no consensus as to whether such a curse exists, and if so, how can negative effects be minimized.
This book contributes to this debate. Much of the report is focused on an examination of specific channels through which commodity dependence may affect the economic and institutional development of countries. This includes broadly 4 sets of concerns: one set dealing with the direct economic effects of commodity dependence and the implications for long-term growth; one dealing with the interactions between commodity production and the rents it generates on the one hand, and a country’s institutions on the other; a third dealing with the macroeconomic challenges of managing the volatility of revenue flows, including the distributional implications at the household level posed by cyclicality of social spending; and a final set associated with potential negative environmental and social impacts.
The book finds that some commonly accepted negative effects of dependence on natural resources are largely myths, while some are realities. But all can be managed, and the book draws on the best available information in existing literature as well as original analysis to provide practical advice on how to do so. It also presents descriptive facts and analysis of the impacts in LAC of the recent commodity boom, helping the reader understand the implications for the region’s development and policies. It should be of great interest to policy-makers and analysts, as well as laypersons interested in the economics of commodity markets and their role in economic development.
Accounting for Growth in Latin America and the Caribbean: Improving Corporate Financial Reporting to Support Regional Economic Development
The importance of moving toward high-quality, global standards of accounting and auditing has never been clearer. In the midst of the global financial and economic crisis, the leaders of the Group of 20 met and issued their Declaration on Strengthening the Financial System, placing significant emphasis on sound accounting and auditing standards as a critical piece of the international financial architecture. Transparent and reliable corporate financial reporting underpins much of the Latin America and Caribbean development agenda, from private-sector-led growth to enhanced financial stability, facilitating access to finance for small and medium enterprises, and furthering economic integration. For nearly 10 years, the World Bank has prepared diagnostic Reports on the Observance of Standards and Codes (ROSCs) on Accounting and Auditing (A&A) at the country level. In Latin America and the Caribbean, ROSC A&A reports have been completed for 17 countries. This book takes a step back and seeks to distill lessons from a regional perspective. Accounting for Growth in Latin America and the Caribbean is the first book to examine financial reporting and auditing in the region in a systematic way, drawing on the World Bank s years of experience and analysis in this area. The book is designed to inform the policy dialogue on accounting and auditing issues among government officials, the accounting profession, the private sector, academia, and civil society in LAC countries. It also seeks to disseminate the lessons learned to key players at the international and regional level, including the donor community, in order to generate momentum for reform of accounting and auditing throughout the region.
Nothing impacts the welfare of individuals and households more directly than employment and earnings opportunities. In developing countries, labor market reform is a crucial component for the success of overall economic policy reforms. Despite success in other areas of economic reform over the past ten years, Argentina, Brazil, and Chile continue to face significant labor policy issues.
To reduce the rhetoric around the issues - in Argentina, a high level of unemployment exists; in Brazil, the high costs of public employment have created large government deficits and public debt; and in Chile, there is a growing income inequality and uncertainty of employment - the book uses a systematically quantitative approach. The value of the quantitative methods in analysis is that they can provide frameworks to better understand the effects of various policy actions. The results can then be translated into benefits and costs that policy makers can more easily explain to their constituents. The policy recommendations resulting from the issues analyzed in Crafting Labor Policy: Techniques and Lessons from Latin America may be beneficial to other developing countries enacting labor market reforms."
As the ongoing political and economic transition in the Central and Eastern Europe countries (CEE) moves into the next century, the most advanced countries in the region are preparing to deal with their prospective entry into the European Union. More a process than an event, joining the EU is likely to place heightened demands on public administrations throughout the region. To assist these countries with their efforts, the Bank conducted a study of the regions. The results of that study are included in this volume. 'Ready for Europe' specifies and clarifies the administrative requirements of accession. The author uses in-depth case studies for three pre-accession countries, Estonia, Hungary, and the Czech Republic to make these specifications. The book defines the performance level countries will need to attain for a range of administrative tasks so the countries may reach a minimal threshold for EU membership. It applies selected standards to determine each country's readiness for accession and for the longer-term transition agenda. The author focuses on these three critical areas of administrative performance in the context of EU accession: • How advanced is the development of a politically neutral, professional human resource cadre in the civil service? • Do countries have the necessary institutional infrastructure at the government's core (that is, cabinet level) to formulate and coordinate policymaking in an efficient and democratic manner? • How well are the dedicated institutional structures and processes established to shepherd countries through the accession process working?
Looking for accurate, up-to-date data on development issues? World Development Indicators is the World Bank's premier annual compilation of data about development. This indispensable statistical reference allows you to consult over 800 indicators for more than 150 economies and 14 country groups in more than 90 tables. It provides a current overview of the most recent data available as well as important regional data and income group analysis in six thematic sections: World View, People, Environment, Economy, States and Markets, and Global Links.
World Development Indicators 2011 presents the most current and accurate development data on both a national level and aggregated globally. It allows you to monitor the progress made toward meeting the Millennium Development Goals endorsed by the United Nations and its member countries, the World Bank, and a host of partner organizations. These goals, which focus on development and the elimination of poverty, serve as the agenda for international development efforts.
TABLE OF CONTENTS
1. World View - living standards and development progress
2. People - gender, health, and employment
3. Environment - natural resources and environmental changes
4. Economy - new opportunities for growth
5. States and Markets - elements of good investment climate
6. Global Links - evidence on globalization
With more than 1.5 billion people living in countries affected by conflict, the World Development Report 2011 (WDR) looks into the changing nature of violence in the 21st century. Interstate and civil wars characterized violent conflict in the last century; more pronounced today is violence linked to local disputes, political repression, and organized crime. The report underlines the negative impact of persistent conflict on a country’s or a region’s development prospects, and notes that no low income, conflict-affected state has yet achieved a single Millennium Development Goal.
The risk of major violence is greatest when high levels of stress combine with weak and illegitimate national institutions. Societies are vulnerable when their institutions are unable to protect citizens from abuse, or to provide equitable access to justice and to economic opportunity.
These vulnerabilities are exacerbated in countries with high youth unemployment, growing income inequality, and perceptible injustice. Externally driven events such as infiltration by foreign combatants, the presence of trafficking networks, or economic shocks add to the stresses that can provoke violence.
The WDR 2011 draws on the experiences of countries that have successfully managed to transition away from repetitive violence, pointing to a specific need to prioritize actions that build confidence between states and citizens, and develop institutions that can provide security, justice, and jobs. Government capacity is central, but technical competence alone is insufficient: institutions and programs must be accountable to their citizens if they are to acquire legitimacy. Impunity, corruption, and human rights abuses undermine confidence between states and citizens and increase the risks of violence. Building resilient institutions occurs in multiple transitions over a generation, and does not mean converging on western institutional models.
The WDR 2011 draws together lessons from national reformers escaping from repetitive cycles of violence. It advocates a greater focus on continuous preventive action, balancing a sometimes excessive concentration on post-conflict reconstruction. The report is based on new research, case studies, and extensive consultations with leaders and other actors throughout the world. It proposes a toolkit of options for addressing violence that can be adapted to local contexts, as well as new directions for international policy intended to improve support for national reformers and to tackle stresses that emanate from global or regional trends beyond any one country’s control.
Developing countries lose an estimated US$20-40 billion each year through bribery, misappropriation of funds, and other corrupt practices. Much of the proceeds of this corruption find ‘safe haven’ in the world’s financial centers. These criminal flows are a drain on social services and economic development programs, contributing to the impoverishment of the world’s poorest countries. Many developing countries have already sought to recover stolen assets. A number of successful high-profile cases with creative international cooperation have demonstrated that asset recovery is possible. However, it is highly complex, involving coordination and collaboration with domestic agencies and ministries in multiple jurisdictions, as well as the capacity to trace and secure assets and pursue various legal options—whether criminal confiscation, non-conviction based confiscation, civil actions, or other alternatives.
This process can be overwhelming for even the most experienced of practitioners. It is exceptionally difficult for those working in the context of failed states, widespread corruption, or limited resources. With this in mind, the Stolen Asset Recovery (StAR) Initiative has developed the Asset Recovery Handbook: A Guide for Practitioners to guide those grappling with the strategic, organizational, investigative, and legal challenges of recovering stolen assets. A practitioner-led project, the Handbook provides common approaches to recovering stolen assets located in foreign jurisdictions, identifies the challenges that practitioners are likely to encounter, and introduces good practices. Included are examples of tools that can be used by practitioners, such as sample intelligence reports, applications for court orders, and mutual legal assistance requests.
During the 1980s and 1990s, financial sectors were the Achilles’ heel of economic development in Latin America and the Caribbean (LAC). Since then, these sectors have grown and deepened, becoming more integrated and competitive, with new actors, markets, and instruments springing up and financial inclusion broadening. To crown these achievements, the region’s financial systems were left largely unscathed by the global financial crisis of 2008–09. Now that the successes of LAC’s macrofinancial stability are widely recognized and tested, it is high time for an in-depth stocktaking of what remains to be done.
Financial Development in Latin America and the Caribbean: The Road Ahead provides both a stocktaking and a forward-looking assessment of the region’s financial development. Rather than going into detail about sector-specific issues, the report focuses on the main architectural issues, overall perspectives, and interconnections. The report’s value added thus hinges on its holistic view of the development process, its broad coverage of the financial services industry beyond banking, its emphasis on benchmarking, its systemic perspective, and its explicit effort to incorporate the lessons from the recent global financial crisis. Financial Development in Latin America and the Caribbean: The Road Ahead builds on and complements several overview studies on financial development in both LAC countries and the developing world that were published in the past decade. It will be of interest to policy makers and financial analysts interested in improving the financial sector in the LAC region.
Global Development Finance 2012: External Debt of Developing Countries is a continuation of the World Bank’s publications Global Development Finance, Volume II (1997 through 2009) and the earlier World Debt Tables (1973 through 1996). As in previous years, GDF 2012 provides statistical tables showing the external debt of 129 developing countries that report public and publicly guaranteed external debt to the World Bank’s Debtor
Reporting System (DRS). It also includes tables of key debt ratios for individual reporting countries and the composition of external debt stocks and flows for individual reporting countries and regional and income groups along with some graphical presentations.
GDF 2012 draws on a database maintained by the World Bank External Debt (WBXD) system. Longer time series and more detailed data are available from the Global Development Finance 2012 on CD-ROM and the World Bank open databases, which contain more than 200 time series indicators, covering the years 1970 to 2010 for most reporting countries, and pipeline data for scheduled debt service payments on existing commitments to 2018.
The database covers external debt stocks and flows, major economic aggregates, and key debt ratios, as well as average terms of new commitments, currency composition of longterm debt, and debt restructurings in greater detail than can be included in the GDF book. The CD-ROM also contains the full contents of the print version of GDF 2012. Text providing country notes, definitions, and source information is linked to each table.
Global Development Finance 2012: External Debt of Developing Countries is unique in its coverage of the important trends and issues fundamental to the financing of the developing world. This report is an indispensible resource for governments, economists, investors, financial consultants, academics, bankers, and the entire development community.
Ninth in a series of annual reports comparing business regulations in 183 economies, Doing Business 2012 measures regulations affecting 11 areas of everyday business activity:
- starting a business
- dealing with construction permits
- employing workers
- registering property
- getting credit
- protecting investors
- paying taxes
- trading across borders
- enforcing contracts
- closing a business
- getting electricity
The report updates all indicators as of June 1, 2011, ranks countries on their overall "ease of doing business" and analyzes reforms to business regulation identifying which countries are strengthening their business environment the most.
Doing Business 2012 includes a new set of indicators on the time, steps and cost for a private business to get an electricity connection. The data on connection services can inform utilities, regulators and governments seeking to strengthen the performance of the electricity sector.
The Doing Business reports illustrate how reforms in business regulations are being used to analyze economic outcomes for domestic entrepreneurs and for the wider economy.
Doing Business 2011
The Doing Business report, which was started in 2003, has become one of the key ways in which the bank and other observers gauge business climate within developing countries...
The Financial Times, 11/4/10
[Doing Business started] as a way to encourage countries to reduce obstacles to entrepreneurship. Developing countries compete to land a spot on the top 10 list of most-improving countries because it is seen as a way to get attention and investment.
The Wall Street Journal, 11/3/10
[Doing Business] has succeeded in putting the issue of business red tape on the international political agenda.
The WDR 2012: Gender Equality and Development will focus on the evolution of gender equality across the world in the context of the development process. The report will consider gender equality as a core development goal in itself, and will argue that gender equality matters for the pace of development. Improvements in gender equality can generate gains in economic efficiency and improvements in other development outcomes. And gender equality has consequences for the quality and representativeness of the institutions a society develops.
For key dimensions of gender equality, the report will show that although many women around the world still continue to struggle with gender-based disadvantages, much has changed for the better and at a more rapid pace than ever before. But the report will also show that progress needs to be expanded, protected and deepened.
In order to understand why progress has varied across dimensions of gender equality and between countries, the report will look at how markets interact with formal and informal institutions to influence household decision-making by providing incentives, shaping preferences, or imposing constraints. Markets and institutions can combine to provide strong incentives for greater gender equality, but can also fail to do so if they treat males and females differentially.
Policymakers and practitioners still face gaps in knowledge both in how gender equality matters for development and how best to incorporate these links in policy design. This WDR aims to bridge these gaps by building upon the growing body of multidisciplinary theory, evidence, and data on these links while highlighting the knowledge gaps that remain.
Economic development is a process of continuous technological innovation and structural transformation. Development thinking is inherently tied to the quest for sustainable growth strategies. This book provides a neoclassical approach for studying the determinants of economic structure and its transformation and draws new insights for development policy. The market is the basic mechanism for effective resource allocation at each level of development. However, economic development as a dynamic process entails structural changes, including industrial upgrading and diversification and corresponding improvements in hard and soft infrastructure. Such upgrading and improvements require coordination and go hand in hand with large externalities to firms' transaction costs and returns to capital investment. Thus, in addition to an effective market mechanism, the government should play an active role in facilitating structural changes. The book provides empirical evidence in support of this framework as well as concrete advice to development practitioners.
In recent years, revelations of grand corruption and the plunder of state assets have led to greater scrutiny of financial relationships with politically exposed persons (PEPs) - senior government officials, family members and close associates - and potential money laundering risks associated with these customers. Notwithstanding the efforts by many financial institutions and regulatory authorities to prevent corrupt PEPs from entering and using the financial system to launder the proceeds of corruption, there has been an overall failure in the effective implementation of risk-based systems to detect corruption proceeds. Politically Exposed Persons: A Guide to Strengthening Preventive Measures for the Banking Sector is designed to help banks and regulatory authorities address the risks posed by PEPs and prevent corrupt PEPs from abusing domestic and international financial systems to launder the proceeds of corruption. The book provides recommendations and good practices aimed at improving compliance with international standards and increasing supervisory effectiveness. Implementation of an effective PEP regime is a critical component of the prevention and detection of transfers of proceeds of crime and, therefore, ultimately in the process of recovering these proceeds of corruption. The United Nations Convention against Corruption and the Financial Action Task Force Forty Recommendations on Money Laundering require countries to ensure that financial institutions implement systems to identify and verify PEP customers, enhance due diligence procedures at account opening, and provide ongoing monitoring of transactions. Politically Exposed Persons: A Guide to Strengthening Preventive Measures for the Banking Sector will be an important tool for individuals, governments, financial and private sector companies, and international organizations involved in developing and implementing standards aimed at fighting corruption and money laundering, and trying to recover stolen assets and the proceeds of corruption.
A joint effort led by the African Development Bank and the World Bank, Leveraging Migration for Africa is the first comprehensive publication on harnessing migration, remittances, and other diaspora resources for the development of Africa. It comes at a time when countries in Africa and elsewhere are grappling with difficult choices on how to manage migration.
Policy makers can help leverage the contributions of migrants to the development of Africa, reduce remittance costs, improve the efficiency of remittance markets in both origin and destination countries, and address the needs of the origin countries without restricting the emigration of high-skilled professionals. Innovative financing mechanisms such as issuance of diaspora bonds and securitization of future remittance flows can help finance big-ticket projects, such as railways, roads, power plants, and institutions of higher learning that will, step by step, help to transform Africa. This volume contributes to a greater understanding of migration and its potential role in Africa’s development.