Robert Osudi is an economist at the Public Debt Management Office of the National Treasury of Kenya. In addition to working on debt policy, strategy, and risk management, his work in Kenya’s debt office focuses on analyzing fiscal risks, fiscal commitments, and contingent liabilities of Public-Private Partnership (PPP) pipeline projects. Robert is halfway through a four-month special assignment working with the Infrastructure, PPPs & Guarantees (IPG) Group at the World Bank Group as a PPP fiscal risk analyst under the auspices of the Global Secondment Program.
The secondment program offers an opportunity for selected officials of a member country, regional agency, development bank, international organization, academia, or private enterprise, to be appointed to the Bank for a specific period to enhance their skills, share knowledge, build strategic alliances, promote cultural exchange and diversification to contribute to the Bank’s work. Secondees are funded by the releasing organization.
We sat down with Robert to understand what he is learning during his on-the-job training in Washington and how he can apply that knowledge upon his return to Kenya.
Private Sector Development
Photo: European Commission
Greece has had a very poor track record in reducing the amount of waste going into landfills. One of the main reasons for this, other than the NIMBY (not-in-my-backyard) opposition to creating waste management facilities, was that for decades choosing the right technology was the apple of discord, causing disagreement and delaying advancement towards integrated waste management. In the last few years, however, three Public-Private Partnership (PPP) waste management projects have been initiated in Greece.
This past July, within two years of signing the PPP contract in 2015, the first project was inaugurated in Western Macedonia—without a day’s delay, any contract change, or cost overrun. The system will cut the amount of waste going to landfill, reuse material for commercially-viable products, boost the region’s growth prospects through job creation, and raise public awareness to prevent waste.
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The Malian diaspora counts between four and six million people, many of whom have benefited from a good education and rich experiences, that could help develop high-potential businesses in their home countries.
However, starting and running a business in Mali isn’t easy. That’s why Pape Wane, a Malian reality TV producer, decided to partner with local business incubators to launch the Diaspora Entrepreneurship competition in order to identify, promote, and support members of the diaspora community who can seize business opportunities in Mali, while also understanding the unique challenges of the local ecosystem.
Using the codes of reality TV, the competition has strived to resonate with Mali’s youth by increasing their awareness of entrepreneurship’s potential to address the country’s socio-economic challenges.
It’s not always easy to convince the private sector to participate in public infrastructure projects—especially in developing countries and emerging economies. Why is this a problem? Because there simply is not enough public money to meet the growing demand for infrastructure, which is a key element of development and poverty alleviation. The need is great, numbering in the trillions of dollars.
But there is good news—the market has both the trillions and the expertise to use it, if the conditions are right. And the World Bank Group has a number of instruments that can help create an environment that meets the needs of the private sector in financially, environmentally, and socially sustainable ways. Guarantees are one of those instruments, a tool that is highly effective in leveraging limited resources for mobilizing commercial financing for critical infrastructure projects.
A new Country Economic Memorandum gives us a chance to step back and look at the deep drivers of growth since Malawi’s independence in 1964. What stands out, though, is just how far Malawi has fallen behind its peers. It’s easy to look at the seemingly insurmountable challenges the country faces—from droughts and floods to the country’s landlocked status—yet other countries in the region have experienced just as many climate-related disasters, and overcome them better. And throughout the 50 plus years of its independence, Malawi has been fortunate to be at peace and mostly politically stable.
Ukraine is not a newcomer to the world of science and technology. One positive legacy from the country’s Soviet history is a talented and technically qualified workforce that persists even today. Eighty percent of 19-25 year-old Ukrainians are enrolled in universities, the country has one of the largest pools of IT developers and programmers in the world – 90,000 strong – and its high-skilled diaspora has spread through Europe and North America. As a result, the country has a booming ICT sector, estimated at $2.5 billion in exports in 2015, and is home to globally competitive startups such as Looksery, which was bought by Snapchat for $150 million in 2015, PetCube, and others. On the surface, the country has the ingredients and the potential to be an innovation-driven economy.
Photo: Gustave Deghilage | Flickr Creative Commons
Does experience in implementing Public-Private Partnerships (PPPs) reduce a country's chances of contract failure?
In a recent study entitled Do Countries Learn from Experience in Infrastructure PPPs, we set out to empirically test whether general PPP experience impacts the success of projects—in this case, captured by a project's ability to forego the most extreme forms of failure that lead to cancellation.
Photo: Artit Wongpradu / Shutterstock.com
Islamic finance has been growing rapidly across the globe. According to a recent report by the Islamic Financial Services Board, the Islamic finance market currently stands around $1.9 trillion. With this growth, its application has been extended into many areas — trade, real estate, manufacturing, banking, infrastructure, and more.
However, Islamic finance is still a relatively untapped market for public-private partnership (PPP) financing, which makes the recent publication Mobilizing Islamic Finance for Infrastructure Public-Private Partnerships such an important resource, especially for governments and practitioners.
When the central government of Somalia collapsed in 1991, everything collapsed with it. Infrastructure was destroyed. Basic services, such as electricity and clean water, were no longer provided. Government institutions were looted. As a result, the economy disintegrated and the Somali people’s contract with the State became void. In the following years, the civil war and recurrent droughts forced many people to migrate or join extremist groups.
In recent years, however, the situation has gradually changed for the better. Government institutions are slowly recovering and becoming stronger, people are enjoying relative peace, and the economy is being revitalized by capital from the diaspora. Nonetheless, many challenges remain, including the most chronic one: youth unemployment.
How can we create job opportunities for the youth? One possible solution is establishing Small Production Businesses (SPB) in the country.