Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The inadequately educated workforce is identified as the top obstacle for firms in the EU-27, with 27% of firms in typical NUTS2 regions citing it as their primary challenge [2][8] - Economic development alone is unlikely to resolve the issue of inadequately skilled and educated workers, indicating a need for targeted policies to improve education and training [65][66] - Training provided by firms is positively correlated with labor productivity and helps reduce disparities in productivity among firms [27][65] Summary by Sections Inadequately Educated Workforce - Firms in the EU-27 rank inadequately educated workers as their most significant operational obstacle, particularly among medium and large firms [2][8] - The incidence of firms citing this issue varies significantly across NUTS2 regions, highlighting the importance of regional factors [3][10] Economic Development and Education - Higher income levels correlate with a greater share of skilled workers, but this relationship diminishes beyond a certain income threshold [9][12] - Policy focus should shift towards ensuring the availability of adequately educated workers as economies develop, especially in lower-income regions [12][65] Training and Productivity - Approximately 43% of firms in typical NUTS2 regions provide training, with larger firms more likely to do so [22][25] - Training is associated with a significant increase in labor productivity, particularly benefiting less productive firms [27][35] - The relationship between training and the share of university-educated workers suggests that training complements higher education rather than substituting it [26][63] Manager Education and Firm Performance - Firms with highly educated top managers exhibit higher labor productivity, more exports, and greater likelihood of engaging in R&D activities [63][64] - The probability of having a highly educated manager increases with the share of tertiary-educated adults in the region, but not significantly with income levels [51][63] Policy Recommendations - Targeted policies aimed at improving education and skills among workers and managers are essential for enhancing firm performance, particularly for less productive firms and those in poorer regions [66]

Investment Rating - The report does not explicitly provide an investment rating for the industry analyzed Core Insights - The analysis focuses on the adoption of management practices in the private sector across the EU-27, revealing significant variations in management practices and their correlation with productivity [2][4][60] - A consolidated index of management practices is developed, encompassing monitoring, target setting, and creating incentives, which shows a positive correlation with firm-level productivity [2][4][48] Summary by Sections Management Practices Index - The management practices index is constructed using eight variables categorized into monitoring, target setting, and incentives, with scores ranging from 0 to 100 [5][10] - The average management score across the EU-27 is approximately 47, with Malta and Bulgaria scoring the highest, while Portugal and Italy score the lowest [19][27] Geographical Distribution - Management scores vary significantly across EU countries, with Northern European regions generally outperforming Southern regions [21][24] - Regions hosting administrative capitals tend to have higher management scores, indicating a correlation between economic centers and management practices [25][30] Firm-Level Characteristics - Larger firms, those with external management, and higher education levels of top managers are associated with better management practices [32][33][47] - Family-managed firms tend to have lower management scores compared to those with external management, highlighting the impact of management structure on performance [36][37] Management Practices and Productivity - A strong positive correlation exists between management practices and productivity, with a 10-percentage point increase in management scores linked to a 20% increase in sales per worker [54][55] - The report emphasizes that structured management practices contribute to better economic performance, supporting the need for improved management practices across firms [52][64]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - South Africa is experiencing a severe learning crisis in its education sector, with low education outcomes compared to the resources invested and the country's level of development [21][33] - The report emphasizes the need for comprehensive reforms in basic education to transform the education system into a driver of inclusive growth [22][32] Summary by Sections Part 1: The State of the Economy - In 2024, South Africa's GDP growth was estimated at 0.8%, which is below the average growth rate of 4.1% for middle-income countries [24][45] - The fiscal deficit reached 6% of GDP, the highest level since 2009, leading to an increase in public debt to 74.9% of GDP [26][28] - Economic growth is projected to gradually improve towards 2% over the next three to five years, driven by better infrastructure services and a favorable external environment [27][44] Part 2: The Overdue Reform and Emerging Priorities in the Basic Education Sector - The education sector faces three key challenges: a learning crisis, increasing financing constraints, and limited efficiency and equity in public spending [35][40] - The report suggests three actions for better learning outcomes: focusing on foundational learning, leveraging the private sector for education service delivery, and improving efficiency and equity in public spending [38][41] - South Africa's government traditionally spends about 4.3% of GDP on basic education, which is higher than most upper-middle-income countries, but the current financing model is under threat due to reduced fiscal space [40][41]

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The Republic of Yemen is facing severe humanitarian and development crises exacerbated by climate change, with a projected GDP growth of 2% in 2024, still significantly lower than the 2014 GDP of USD 22.7 billion [18] - The assessment identifies key climate-related health risks, including food insecurity, waterborne diseases, vector-borne diseases, heat-related morbidity, and risks from flooding [84] Section Summaries Section I: Climate - Yemen's climate is characterized by extreme temperatures and variable rainfall, with an average national warm season maximum of 36.5°C and annual rainfall averaging 190 mm [33][34] - The mean annual temperature has increased by 0.42°C per decade from 1971 to 2020, with projections indicating further increases under high greenhouse gas emission scenarios [35] - Floods are the most significant climate hazard, accounting for 87% of economic losses from natural disasters between 1971 and 2013 [49] Section II: Climate-Related Health Risks - The report assesses six primary climate-related health risks, including food insecurity, waterborne diseases, vector-borne diseases, heat-related health issues, direct exposure to floods, and risks to health infrastructure [84] - Yemen ranks as the 11th most food-insecure country globally, with 17 million people food insecure as of 2022 [90] - Waterborne diseases have been exacerbated by climate-related hazards, with a history of cholera outbreaks affecting millions [102] Section III: Adaptive Capacity and Readiness - The report discusses the need for improved leadership and governance, health information systems, service delivery, and financing to enhance adaptive capacity [31][32] - The assessment highlights the importance of targeting vulnerable populations, particularly internally displaced persons, to increase resilience against climate impacts [21][22] Section IV: Proposed Actions - Proposed actions include strengthening health information systems, improving health service delivery, and enhancing health financing mechanisms to address climate-related health risks [40][41][42] - Further research is recommended to better understand the economic costs of health impacts due to climate change [43]

Investment Rating - The report does not explicitly provide an investment rating for the home-based childcare (HBC) industry Core Insights - Home-based childcare (HBC) is a crucial yet often neglected childcare option for low-income families, providing affordability, flexibility, and a familiar environment [6][12] - Enhancing the quality of HBC is essential for improving child developmental outcomes and increasing female labor force participation [6][14] - Recognizing HBC as a public good is vital for its sustainability and impact, necessitating incorporation into policies and financing [6][15] Summary by Sections Workforce Development - Developing the HBC workforce involves providing accredited training programs, mentoring, and coaching opportunities to enhance skills [3][10] - Training initiatives like those from OneSky in Vietnam and BRAC in Bangladesh focus on ongoing professional growth for HBC providers [27] Nutritional Support - Integrating nutrition support into HBC programs is critical, with examples of state-funded programs providing meals and training for providers [3][32] - Colombia's HBC program ensures that children receive daily meals meeting their nutritional needs [71] Quality Assurance System - Establishing a quality assurance system is necessary to formalize HBC services, including registration and oversight [3][29] - Quality standards should be flexible and adaptable to the context of HBC, focusing on responsive care and safe environments [30] Access to Financial Support - Access to finance is crucial for HBC sustainability, with models like public-private partnerships and microcredit being explored [3][28] - Innovative financial mechanisms in Colombia, such as government subsidies covering 75% of HBC-related expenses, demonstrate effective funding strategies [28] Global Overview - HBC is increasingly recognized as a viable childcare option, with significant demand in low-income communities [23][34] - The scale of HBC is rising globally, with notable examples in the USA and Colombia, where state-supported models serve millions of children [23][67] Country Case Studies - In Bangladesh, HBC is emerging as a solution for urban low-income mothers, addressing the lack of access to formal childcare [40][44] - Kenya's HBC initiatives, such as Kidogo and Tiny Totos, are empowering women and improving childcare quality through innovative models [55][60] - Colombia's Hogares Comunitarios de Bienestar (HCB) program serves over 1 million children, integrating health, nutrition, and early education [67][70]

Investment Rating - The report rates the Sierra Leonean education system's readiness to adopt educational technology as low, indicating significant opportunities for improvement within the EdTech ecosystem [35]. Core Insights - The assessment highlights a substantial lack of policies aimed at integrating technology in education, accompanied by minimal on-the-ground technology usage [35]. - There is a critical need to develop and communicate relevant policies specifically concerning Teachers and Students, along with increased awareness and capacity building in various areas [39]. - The report identifies six key pillars for evaluating EdTech integration: School Management, Teachers, Students, Devices, Connectivity, and Digital Education Resources (DER) [22]. Summary by Sections Introduction - The government of Sierra Leone established the Directorate of Science, Technology, and Innovation (DSTI) in 2018 to leverage technology for national development, with education as a key focus area [15][16]. - The COVID-19 pandemic underscored the importance of digital technologies for remote learning and the need for a better EdTech ecosystem [16]. Methodology - The Education Technology Readiness Index (ETRI) evaluates EdTech integration through de jure policies, de facto understanding, and practical implementation across six pillars [22]. - Data was collected through surveys conducted in 2022, covering 300 primary schools across various provinces [24][28]. Results Overall Findings - The ETRI assessment reveals a significant lack of policies for technology integration in education, with minimal technology usage observed [35]. - De jure policies were established for Digital Education Resources and somewhat for Connectivity and School Management, but severely lacking for Teachers, Students, and Devices [36]. Findings Across the Six Pillars 1. **School Management** - Received the highest score among the six pillars but is still at a critical stage, with a lack of specific guidelines for ICT integration [48]. - Only 60% of head teachers recognized their responsibility to integrate ICT, with limited training opportunities available [51]. 2. **Teachers** - Policies supporting teachers' use of ICT are weak, with no official digital competency framework in place [58]. - Only 5% of teachers reported confidence in using ICT for various applications, indicating a dire need for policy development and implementation [61]. 3. **Students** - There are no policies for integrating ICT into the curriculum for primary school students, leading to zero access to ICT [68]. - Teachers reported that students' use of EdTech was non-existent, reflecting inadequate ICT skills among students [70]. 4. **Devices** - Less than 3% of surveyed schools had any digital devices available, highlighting a critical lack of access [76]. - There are no policies mandating student access to digital devices, and monitoring of device availability is insufficient [78]. 5. **Connectivity** - Basic policies exist, but the lack of digital devices and electricity in schools poses significant challenges to connectivity [85]. - Only 5% of head teachers believed that the internet connectivity was adequate, with 96% of schools lacking digital devices to connect [87]. 6. **Digital Education Resources (DER)** - The report indicates that while policies exist, access and effective use of DERs remain limited [21].

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Women's participation as workers, top managers, and firm owners in the EU-27 is significantly lower than that of men, with only 35.3% of workers being women and 18.1% of firms having a woman as the top manager [4][8] - The gender gap in labor productivity is larger in wealthier regions, indicating that economic development does not necessarily lead to gender equality in employment and management [30][62] - Women are often concentrated in less productive firms that pay lower wages, suggesting that improving job quality is essential for closing gender gaps in income [8][62] Summary by Sections Women's Participation - Women's participation as workers, top managers, and firm owners is measured by the share of women in firms, with 39.9% of firms having one or more women owners and an average ownership share of 22% [2][8] - The share of women workers is statistically significantly higher in the least developed NUTS2 regions compared to more developed regions [10][11] Economic Development and Gender Gaps - The relationship between economic development and women's labor market participation is nonlinear, with participation declining as income per inhabitant increases [9][10] - The report identifies that country-specific factors account for about 85% of the total gender gap in employment [14] Labor Productivity - Labor productivity in women-run firms is statistically significantly lower than in men-run firms, with a gap of about 25.2% before controls and 16.5% after [18][34] - The productivity gap is more pronounced at lower quantiles of labor productivity, indicating the presence of "sticky floors" rather than "glass ceilings" [29][66] Factors Influencing Gender Gaps - Several factors contribute to the gender gap in labor productivity, including country-specific factors, industry concentration, and the regulatory burden faced by women-run firms [35][38] - Women-run firms are less likely to engage in R&D activities and have lower employment growth rates compared to men-run firms [40][60] Access to Finance - There is limited evidence that women's ownership affects access to finance, with no significant differences in financial constraints between women-run and men-run firms [60][61] Conclusion - The report concludes that significant gender gaps exist in employment, management, and firm ownership across the EU-27, with economic development not guaranteeing gender equality [62][66]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - Eswatini's economic growth has been modest since the late 1990s, averaging 2.8 percent from 1996 to 2020, with a strong rebound averaging 5.3 percent from 2021 to 2023 [28][31] - The public debt stock was 40.4 percent of GDP in 2023, down from a peak of about 45 percent in 2022, while public expenditure arrears were estimated at 4.9 percent of GDP in 2023 [31][35] - The Fiscal Adjustment Plan (FAP) aims to reduce the fiscal deficit and reinforce debt sustainability by broadening the revenue base and reducing the public wage bill [32][34] Macro-Fiscal Context - Expansionary fiscal policy since the late 1990s has limited the government's ability to respond to external shocks, with the fiscal deficit falling to 2.1 percent in 2023 from about 7 percent in 2018 [36][37] - The volatility of Southern African Customs Union (SACU) revenues has contributed to public debt accumulation and expenditure arrears [36][37] Revenue Mobilization - Domestic revenue mobilization can be optimized by reviewing and rationalizing tax holidays and expenditures, with tax expenditures amounting to nearly 13 percent of GDP in 2022 [43][44] - The tax gap was estimated at about 5 percent of GDP in the 2022 fiscal year, indicating potential for increased revenue through improved tax administration [46] Public Spending - Public expenditures represent about 30 percent of GDP, with social sector spending absorbing about 9.6 percent of GDP between 2018 and 2022, yet outcome indicators fall short [49][50] - Enhancing public procurement systems and digitalizing the public sector could improve the efficiency and value of public spending [51][53] Public Investment Management - Strengthening public investment management while incorporating climate considerations is crucial for maximizing the impact of public spending [56][58] - The public investment management system faces challenges such as under- and over-budgeting and delays in project implementation [57][58] Health Sector Insights - Addressing structural challenges in the health sector could lead to better health outcomes, with key indicators remaining high despite substantial investments [60][62] - Strengthening primary healthcare services and enhancing resource management are vital for improving service delivery and health outcomes [63][64] Conclusion and Policy Options - The report outlines a roadmap for reforming fiscal policy and enhancing public financial management, focusing on stabilizing revenue streams and improving expenditure efficiency [65]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The establishment size distribution in the European Union shows that higher-income countries have larger establishments and a higher concentration of employment in the top 10 percent of establishments compared to lower-income countries [1][12][65] - Misallocation of resources is a significant factor contributing to the differences in establishment sizes across countries, with smaller establishments being more prevalent in lower-income economies [2][3][65] - The age of establishments, level of foreign ownership, and export levels positively correlate with establishment size, while establishments with female top managers tend to be smaller [13][31][42] Summary by Sections Establishment Size Distribution - The mean establishment size is higher in economies with greater GDP per inhabitant, with an average size of 30.2 workers across the EU [16][20] - Lower-income countries exhibit a higher prevalence of smaller establishments, confirming predictions of misallocation literature [1][15][65] Employment Share of Larger Establishments - The employment share of the top 10 percent of establishments is larger in higher-income countries, averaging 58.3 percent across EU countries [47][52] - A 10 percent increase in GDP per inhabitant correlates with a 1.7 percentage point increase in the employment share of large establishments [47][52] Factors Influencing Establishment Size - Establishments with foreign ownership are larger, with a 1 percentage point increase in foreign ownership associated with a 3.5 percent increase in establishment size [32][33] - Older establishments tend to be larger, with the average age of establishments in NUTS1 regions being 28.1 years [34][35] - Establishments managed by females are significantly smaller, with a 1 percentage point increase in the share of female top managers leading to a 1.8 percent decrease in mean establishment size [42][31] Establishment Size Distribution Analysis - The establishment size distribution in higher-income countries shows a thicker right tail compared to lower-income countries, indicating a greater number of larger establishments [15][64] - The slope of the establishment size distribution is less steep in higher-income countries, suggesting a higher concentration of larger establishments [64][65]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report emphasizes that AI has the potential to transform the financial sector, particularly in risk-based supervision (RBS), by enhancing efficiency and effectiveness in supervisory processes [12][13][18] - AI can automate routine tasks, improve data processing, and enable predictive analytics, which allows supervisory authorities to proactively manage risks [64][82][84] - The integration of AI into supervisory practices is seen as a significant advancement, enabling authorities to handle large volumes of data and identify trends that traditional methods may miss [90][91] Summary by Sections Executive Summary - AI is poised to revolutionize the financial sector, particularly in risk-based supervision, which has been a challenge for many countries, especially middle- and low-income nations [12][13] - The report highlights the need for supervisors to adapt to AI technologies to enhance their capabilities and address existing challenges [18] Main Challenges Faced by Financial Sector Supervisors - Supervisory authorities struggle with implementing effective RBS due to limited resources, outdated processes, and insufficient data quality [19][23][28] - The report identifies that many supervisors have not fully embraced advanced supervisory technologies, which hampers their ability to implement RBS effectively [26][30] Empowering Financial Supervisors with AI Capabilities - AI can significantly enhance RBS by automating time-consuming tasks and allowing supervisors to focus on high-risk activities [64][65] - The report discusses various AI technologies, such as machine learning and natural language processing, that can improve data quality and assist in compliance monitoring [70][67] Use Case of AI in Supporting Activities of Supervisory Authorities - Financial authorities globally are adopting AI to improve regulatory supervision and risk management, with examples from regions like North America, Asia, and Europe [93][94] - The Australian Securities and Investments Commission's MAI system exemplifies how AI can generate real-time alerts for market anomalies, enhancing market surveillance [95][96]