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Revisiting Public Investment Multipliers
Shi Jie Yin Hang· 2024-10-24 23:03
Investment Rating - The report suggests a positive outlook on public investment in emerging market and developing economies (EMDEs), indicating that public investment can significantly boost economic growth [3][12]. Core Insights - Public investment can increase output by 1.1 percent after five years for every 1 percent of GDP increase in public investment, with potential increases up to 1.6 percent in cases of high efficiency and ample fiscal space [12][13]. - The effectiveness of public investment multipliers is greater during recessions and in capital-scarce economies, with public investment also having crowding-in effects on private investment [12][13]. - The report emphasizes the importance of public investment efficiency and fiscal space in determining the magnitude of its impact on economic growth [12][13]. Summary by Sections Introduction - Public investment is a crucial policy tool for fostering economic growth in EMDEs, especially in the context of significant investment gaps and a slump in private investment [7][8]. Methodology - The report employs a new approach to measure public investment shocks based on cyclically adjusted government investment, analyzing data from 129 countries over the period from 1980 to 2019 [10][36]. Empirical Results - Public investment shocks lead to a gradual increase in output, with a notable increase from 0.4 percent after one year to 1.1 percent after five years for a 1 percent of GDP increase in public investment [55]. - The report highlights significant heterogeneity in the effects of public investment across different EMDEs, with higher-income EMDEs experiencing stronger impacts compared to low-income countries [56].
Natural Resource Management, Fragility, and Conflict Issues
Shi Jie Yin Hang· 2024-10-24 23:03
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Natural Resource | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|---------------|-------------|-------|-------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | Management, | | Fragility, | | | | | | | | and | | | Conflict Issues | | | | | | | | CLIMATE AND | GUIDANCE | NOTE | FOR DEVELOPMENT | | | | | | | | | | | | | | | | | Public Disclosure Authorized NATURAL RESOUR ...
Cambodia - Country Gender Action Plan FY25-FY29
Shi Jie Yin Hang· 2024-10-23 23:03
CAMBODIA GENDER EQUALITY AND SOCIAL INCLUSION Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Cambodia Country Gender Action Plan FY25–FY29 Cambodia Country Gender Action Plan FY25–FY29 ABBREVIATIONS AND ACRONYMS | --- | --- | |---------|---------------------------------------------------| | | | | | | | ADB | Asian Development Bank | | AF | Additional Financing | | ASA | Advisory Services and Analytics | | ASEAN | Association of Southeast A ...
Greener shores: Brazil’s $100 billion decarbonization opportunity
麦肯锡· 2024-10-23 00:08
Industry Investment Rating - Brazil has a significant decarbonization opportunity, estimated to add $100 billion to GDP and create 6.4 million jobs by 2030 [3] Core Viewpoints - Brazil's natural endowments position it as a key player in global decarbonization efforts, with potential to export low-carbon materials and services [1][3] - The country could lead in renewable energy, bio-based solutions, and natural climate solutions, contributing to global emission reductions [3][4][17] Energy Solutions Portfolio - Brazil's renewable energy potential, including wind, solar, and biomass, could drive decarbonization and create a $90 billion market by 2040 [5][6] - Wind and solar energy costs are expected to decrease by 27% and 46% respectively by 2040, potentially becoming the main power sources [6] - Green hydrogen production in Brazil is projected to reach $2.50 per kilogram by 2030, making it globally competitive [7] Bio-based Solutions - Brazil could lead in sustainable biofuels, with a market opportunity of $40 billion by 2040, driven by second-generation ethanol and sustainable aviation fuel [8] - The biocarbon market could reach $3-4 billion by 2030, supporting green pig iron production with 90% lower emissions [9] - Biomethane production could exceed $15 billion by 2040, utilizing waste and byproducts [9] Energy and Resource Efficiency - Brazil's industrial energy intensity increased by 2% annually from 2005 to 2021, highlighting the need for efficiency improvements [11][12] - Heavy industries, representing 70% of the industrial segment, could benefit from material substitution and advanced energy management systems [14] - Recycling rates in Brazil are low, with only 4% of municipal solid waste recycled, compared to over 30% in the EU, India, and the US [15] Natural Climate Solutions - Brazil has 15% of the global potential for low-cost natural climate solutions, with opportunities in carbon removal certificates and deforestation prevention [17][18] - Land use and agriculture sectors could contribute to emissions reductions of 2.9-3.3 GtCO2e by 2050 through restoration and improved practices [19][21] - Brazil's CO2 sequestration potential could generate $16-26 billion annually and create 880,000 jobs through restoration and afforestation projects [24] Economic Impact - A "green powerhouse" scenario could boost Brazil's GDP by $100 billion by 2050 and create 6.4 million jobs, with a carbon price of $35 per metric ton of CO2e [25] - Brazil could eliminate 80% of emissions with a carbon price of $15 per metric ton and 95% with $20 per metric ton, significantly lower than other major emitters [24]
The art of 21st-century leadership: From succession planning to building a leadership factory
麦肯锡· 2024-10-23 00:08
Investment Rating - The report does not provide a specific investment rating for the industry Core Insights - The leadership landscape has evolved significantly, with leaders now facing double the critical issues compared to a decade ago, necessitating a shift in leadership development approaches [2][3] - Six essential leadership traits identified for success in the current environment include positive energy, servant leadership, continuous learning, humility, grit, and resilience [2][4] - Organizations are encouraged to treat leadership development as a core capability to enhance resilience and adaptability to disruptions [2][4] Summary by Sections Leadership Traits - Positive energy, personal balance, and inspiration are crucial for leaders to maintain their effectiveness [2] - Servant leadership focuses on the success of the team and organization rather than individual accolades [2] - Continuous learning and a humble mindset are vital for leaders to adapt and grow [2][4] Best Practices in Leadership - Leaders must engage rigorously with stakeholders and foster constructive dialogue to differentiate their organizations [5] - Building an operating model that prioritizes speed and efficiency is essential for modern leadership [5] - Emphasizing a culture of trust is critical, with leaders needing to analyze and address trust dynamics within their teams [6] Leadership Development Strategies - High-potential managers should be placed in challenging situations to foster growth and resilience [7] - Personalized immersion sessions led by senior executives can enhance leadership capabilities at scale [8] - Feedback mechanisms and self-driven learning journeys are essential for developing new leaders [10][12] The Leadership Factory Model - The concept of a leadership factory involves creating environments where leaders can learn from one another and develop essential skills [6][12] - CEOs are encouraged to act as chief talent officers, identifying and nurturing high-potential leaders within their organizations [11][12] - Performance management systems should align with 21st-century leadership attributes to ensure accountability and empowerment [12]
How CEOs are turning corporate venture building into outsize growth
麦肯锡· 2024-10-23 00:08
Leap by McKinsey How CEOs are turning corporate venture building into outsize growth Companies are creating meaningful growth by developing new ventures. Those with the most mature capabilities are growing quickly and can show the way for companies that are just beginning. This article is a collaborative effort by Belkis Vasquez-McCall, Daniel Aminetzah, Markus Berger-de León, and Paul Jenkins, with Shaun Collins, representing views from Leap by McKinsey and McKinsey Digital. October 2024 Amid geopolitical ...
Child and adolescent mental health as a proving ground for innovation
麦肯锡· 2024-10-23 00:08
McKinsey & Company Strategy & Corporate Finance Practice Child and adolescent mental health as a proving ground for innovation Although one in five people will experience a mental health malady as a child, effective diagnosis and treatment often remain elusive. The Child Mind Institute seeks to bring innovation to the problem. October 2024 | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------- ...
FY 2024 Dominican Republic Country Opinion Survey Report
Shi Jie Yin Hang· 2024-10-22 23:03
Industry Investment Rating - The report does not provide a specific investment rating for the industry [1] Core Views - The World Bank Group (WBG) is perceived as a trusted and effective development partner in the Dominican Republic, with significant improvements in key performance indicators compared to FY19 [6][8][13] - Stakeholders value the WBG's technical assistance, financial resources, and knowledge work, with 54% of respondents valuing technical assistance and implementation support the most [56][58] - The WBG's financial instruments are seen as increasingly positive, with respondents agreeing that the WBG insists on accountability and effectively monitors projects [58] Overall Context - Stakeholders in the Dominican Republic are highly familiar with the WBG, with a mean familiarity rating of 7.3, consistent with FY19 [6] - Respondents who collaborate with the WBG reported significantly higher familiarity (8.4) compared to those who do not (5.8) [6] - The WBG is among the most trusted institutions, with trust ratings significantly increasing for most institutions, especially the national government and the Central Bank [8] Development Priorities - Education and skills development remain the top priority for respondents, followed by environment/natural resource management and climate change [27][28] - 37% of respondents identified education and skills development as a priority, while 36% and 33% identified environment/natural resource management and climate change, respectively [29][30] WBG's Engagement and Collaboration - The WBG is increasingly seen as an open, responsive, accessible, and flexible partner, with significant improvements in these areas compared to FY19 [32][33] - Respondents perceived the WBG as collaborating more effectively with the national government, other donors, and civil society compared to FY19 [36][37] - Stakeholders want the WBG to collaborate more with civil society (50%) and provincial/municipal governments (45%) [40][42][44] Financial Instruments and Knowledge Work - 50% of respondents have used the WBG's knowledge work, with those who have used it reporting high satisfaction with its quality [59][60] - The WBG's knowledge work is perceived as contributing significantly to development results, with a mean rating of 8.6 for its contribution to development results [61][64] Future Role of the WBG - Stakeholders suggest that the WBG should engage more with stakeholders, better align with the Dominican Republic's development priorities, and increase financial support [67][68] - Focus areas for the WBG include education, climate change, gender equity, and digital development, with 40% of respondents emphasizing the need for better alignment with local needs [68][69][70][72][73] Communication and Outreach - Respondents prefer to receive WBG communications through events/conferences (56.4%), direct contact with staff (49.3%), and e-Newsletters (44.3%) [96][97] - 70% of respondents recalled hearing or seeing something about the WBG recently, with direct contact, newspapers, and social media being the most common sources [98][99]
Sub-national Differences in Human Capital in the CEMAC Region
Shi Jie Yin Hang· 2024-10-22 23:03
Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The CEMAC region shows a human capital index ranging from 0.27 to 0.46, indicating that residents achieve between 25% and 50% of their potential [1] - Significant disparities exist within countries, particularly between urban and rural areas, which can be addressed through strategic spending [1] - The report emphasizes the need for increased investment in education, health, and social assistance to strengthen human capital [1] Summary by Relevant Sections Cameroon - The human capital index varies from 0.31 to 0.32 in the East and North-West regions, while the South-West region scores 0.46 [2] - Geographical disparities are evident, with the East, North-West, Adamaoua, and Far North regions performing significantly worse than the Centre, North, Littoral, West, South, and South-West regions [2] Chad - The human capital index ranges from 0.26 to 0.28 across most regions, with N'Djamena scoring the highest [7] - Southern regions face major health challenges, indicated by low survival rates to age 5 [7] Central African Republic - The human capital index is uniform, ranging from 0.28 to 0.30, with the capital Bangui scoring 0.37 [11] - The number of years of schooling in Bangui is significantly higher than in other regions [11] Republic of Congo - The human capital index varies from 0.37 in Likouala and Kouilou to 0.54 in Pointe-Black, with a national average of 0.46 [15] - The Sangha region has the lowest survival probability to age 5 at 88% [15] Recommendations - Prioritize investment in disadvantaged regions to reduce inequalities [17] - Improve access to health and education services through social safety nets [17] - Collect more regional data on human capital dimensions, particularly in Equatorial Guinea and Gabon [17]
From Ambition to Action
Shi Jie Yin Hang· 2024-10-22 23:03
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized REPORT Public Disclosure Authorized ENERGY SUBSIDY REFORM IN ACTION FROM AMBITION TO ACTION Practical Insights on Energy Subsidy Reforms REPORT ENERGY SUBSIDY REFORM IN ACTION FROM AMBITION TO ACTION Practical Insights on Energy Subsidy Reforms Defne Gencer and Beatriz Arizu ABOUT ESMAP The Energy Sector Management Assistance Program (ESMAP) is a partnership between the World Bank and over 20 partners to help low- and mid ...