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This paper provides a guide to the new World Bank Human Capital Index (HCI), situating its methodology in the context of the development accounting literature. The HCI combines indicators of health and education into a measure of the human capital that a child born today can expect to achieve by her 18th birthday, given the risks of poor education and health that prevail in the country where she lives. The HCI is measured in units of productivity relative to a benchmark of complete education and full health, and ranges from 0 to 1. A value of x on the HCI indicates that a child born today can expect to be only x × 100 percent as productive as a future worker as she would be if she enjoyed complete education and full health.

High fertility and declining mortality rates have led to a very young population in most Sub-Saharan African countries. The region’s labor force is expected to increase by 11 million people per year over the next 10 years. Most of this increase will be new entrants seeking their first job. While the younger generation is better educated than their parents, they often lack the means to translate that education into productive employment. Today, most work is in nonwage jobs on farms and in household enterprises. Even if greater economic activity were to create the conditions for robust growth and economic transformation, the private modern wage sector in low- and lower-middle-income countries could not absorb all the applicants. This report focuses on how to improve the quality of all jobs and to meet the aspirations of youth. It emphasizes that building a strong foundation for human capital development can play an important role in boosting earnings, and it argues that a balanced approach focused on building skills, raising productivity, and increasing the demand for labor is necessary. Youth Employment in Sub-Saharan Africa notes that many youth employment challenges are problems of employment in general. However, youth is a time of transition, and young people face particular constraints to accessing productive work. The report brings together original analysis of household and labor force surveys; it reviews the experience of a number of promising interventions across the continent; it draws from qualitative studies in several countries; and it surveys the most up-to-date evidence from rigorous evaluations of policies and programs. From this information base, the report provides guidance to policy makers on how to intervene along two dimensions―human capital and the business environment―and in three priority areas―agriculture, household enterprises, and the modern wage sector. The ultimate goals are to increase productivity, improve livelihoods, and multiply opportunities for young people.

This article estimates the effect of the oldest sister's education on child human capital development. In many developing countries, the oldest sisters share significant childcare responsibilities in the household and can influence younger siblings' learning. I propose a model that predicts competing effects of increasing the oldest sister's schooling on younger sibling human capital. Using an identification strategy that exploits the gender segregation of schools in Pakistan, I find that the oldest sister's schooling significantly improves younger brothers' literacy, numeracy and schooling. These results indicate that evaluations of programmes targeting girls' education that ignore these spillovers on younger siblings systematically underestimate total benefits.

Does resource allocation by the central government to local governments in Tanzania favour opposition or the ruling party's strongholds? The literature advances two opposing theories – electoral competition and hegemonic party hypotheses. We use unique data on fiscal transfers and human resource allocations to investigate the effect of electoral support on government allocations. Contrary to the two hypotheses, we find no political bias in fiscal resources transferred to local governments. Similarly, we find no strong evidence to suggest any political bias in human resource allocation. On the whole, neither does the evidence confirm nor conclusively disconfirm the two hypotheses. The findings imply that hegemonic-parties do not necessarily opt for a discriminative strategy in intergovernmental resource allocations even after facing a threatening opposition. Flexibility in autocratic menu and the path dependence of government's social policy are likely to explain this kind of hegemonic party's allocative behaviour.

Digital technologies can be a critical channel in boosting economic growth and achieving Sustainable Development Goals. During crises like COVID-19, digitalization can facilitate the reception of remittances from relatives and friends. We analyze the effects of migrant remittances (MRs) on economic growth in ECOWAS countries with a special emphasis on the role of digitalization. The simultaneous equations and the seemingly unrelated regression method are used with data spanning from 1980 to 2017. Findings show that digitization is not a channel for transmitting the effects of MRs on economic growth in ECOWAS countries. However, digitalization constitutes a catalyst of the effects of MRs on economic growth in non-WAEMU countries, while it does not in WAEMU (a sub-regional block of ECOWAS). Nevertheless, remittances contribute to human capital accumulation, investment, and consumption in WAEMU countries. Policies aiming at strengthening digitization are welcome to foster the effect of MRs on countries' economies in ECOWAS, in general, and WAEMU in particular.

This comprehensive review of Cameroon's development policies since the 1970s-including public finance, privatization, trade, infrastructure, and governance-finds that Cameroon's malaise is due less to a lack of resources than to an inability to sustain reforms and to implement growth-enhancing policies. While the government's strategies have been sound, this volume argues that an 'administrative inertia' has set in. This study makes a number of key recommendations to overcome this inertia, enhance cohesion and consistency in government actions, strengthen capacity to effectively execute programs, and hence increase development outcomes for Cameroon. Contributions by: Armand Atomate, Mohammed Bekhechi, Yann Burtin, Ananda Covindassami, Mourad Ezzine, Miriam Schneidman, Isabelle Huyn, Jean-Francois Marteau, Pierre Pozzo di Borgo, Eleodoro Mayorga, Carole Megevand, Giuseppe Topa, Chantal Reliquet, Richard Verspyck, Ali Zafar andDavid Tchuinou.

The world's attention to the countries of the Middle East and North Africa (MENA) region has often been dominated by headline issues: conflict, sanctions, political turmoil, and rising oil prices. Little of this international attention has considered the broad range of development challenges facing this diverse group of countries. Breaking the Barriers reflects the collected thinking of the World Bank's Office of the Chief Economist for the MENA Region on the long-term development challenges facing the region and the reform priorities and strategies for effectively meeting these challenges. It is a comprehensive reform agenda to “break the barriers” to higher economic growth, to ensure sufficient jobs can be created for the region's rapidly growing labor force. At its core, it requires the region's public sector-dominated economies to move to private sector-driven economies, from closed economies to more open economies, and from oil-dominated and volatile economies to more stable and diversified economies. This book examines some of these reforms and the complex issues surrounding their successful implementation. In order for the countries of the MENA region to successfully implement the reforms needed for higher growth and job creation, they will also need to address the fundamental weaknesses in governance throughout the region.

Reihe vom Umschlag

Slow progress in improving the coverage of Latin America and the Caribbean's (LAC's) traditional social protection (SP) programs, combined with the deepening of democracy, have led to calls for a new social contract to provide effective social protection to all citizens. This book highlights the main findings of a regional study by the World Bank, from right to reality: how Latin America and the Caribbean can achieve universal social protection by improving redistribution and adapting programs to labor markets. The report analyzes LAC's social insurance (SI) systems and highlights growing concerns about the incentives they may create and the behaviors they may incite on the part of workers, employers and service providers. It offers an economic analysis of the roots of these problems and suggests a way forward to achieve universal coverage in an equitable manner. The report argues that a coherent overall vision for the SP system should be established if such problems are to be understood and resolved. The goal is to turn the theoretical right to social protection, which is enshrined in many of the region's constitutions and laws, into a reality for all of LAC's population. A central message of the report is that SP systems need to respond to the realities of LAC's labor markets, especially the prevalence of informality and frequent changes of employment.