Education Systems and Multilateral Development Banks: International Practices and Perspectives
This article examines the role of multilateral development banks (MDBs) in financing education development at the national level. It evaluates the share of national expenditures spent on education, analyzes loan structures by stage of education, and highlights key measures and instruments. In the context of the global economic slowdown, expected to continue for the long term, the most important objective is to identify new drivers of economic growth as traditional sources are exhausted. One of the main sources of economic growth is human capital, especially with regard to the gradual transition from an industrial economy to a service and knowledge economy. Human capital accumulation is particularly important in developing countries. Most developing countries face insuperable obstacles in building human capital accumulation particularly with regard to education development.
The potential contribution of MDBs to human capital accumulation has been underestimated and there is a lack of empirical research on this issue. An evaluation of current experience will help identify opportunities for MDBs to increase their role in education performance, which in turn could have a positive impact on economic growth in developing countries.
This article addresses this issue by studying MDBs’ financing of education projects in emerging economies. The authors collected a database that includes information on the volume and structure of financing with a breakdown by education stage. It was based on more than 500 projects funded by key MDBs. Sources included loan and grant agreements, project interim reports and project completion reports. The authors calculated an average annual ratio of MDB education financing to public expenditure for each country in the final selection.
Results showed that the ratio of average annual MDBs allocations to average government expenditures on education is relatively low — between 1.5% and 4.0% for most countries. The largest share can be seen in relatively small countries, where government expenditures stay at low levels. Large developing countries such as Brazil, India, Indonesia and Mexico are lead in terms of absolute volumes of financing from MDBs. The authors also show that most projects during period researched aimed at reducing inequality, developing infrastructure, improving teacher qualifications and reforming the management of education system. The authors also give recommendations for the BRICS New Development Bank.
Concerns about population ageing apply to both developed and many developing countries and it has turned into a global issue. In the forthcoming decades the population ageing is likely to become one of the most important processes determining the future society characteristics and the direction of technological development. The present paper analyzes some aspects of the population ageing and its important consequences for particular societies and the whole world. Basing on this analysis, we can draw a conclusion that the future technological breakthrough is likely to take place in the 2030s (which we define as the final phase of the Cybernetic Revolution). In the 2020s – 2030s we will expect the upswing of the forthcoming sixth Kondratieff wave, which will introduce the sixth technological paradigm (system). All those revolutionary technological changes will be connected, first of all, with breakthroughs in medicine and related technologies. We also present our ideas about the financial instruments that can help to solve the problem of pension provision for an increasing elderly population in the developed countries. We think that a more purposeful use of pension funds' assets together with an allocation (with necessary guarantees) of the latter into education and upgrading skills of young people in developing countries, perhaps, can partially solve the indicated problem in the developed states.
The institute of investment operations guarantees is designed to ensure, through legal measures, a relative stability of reproduction and freedom of capital movement in the world economic system amid the backdrop of social, economic and political crisis. The notion of investment guarantee stands for the investment insurance mechanism both on the state and the state-by-state basis, aimed at compensation for damages caused to a foreign investor upon occurrence of events economically affecting the investment. The article discusses the activity of the Multilateral Investment Guarantee Agency (MIGA) established under the Seoul Convention. MIGA's guarantee opportunities, conditions for granting investment guarantees and risks which could be covered by the Agency's guarantees are specified.
We analyze institutional determinants of the development of local currency (LCY) corporate bond markets in the period from 2010 to 2016. We consider a wide range of indicators of the quality of institutional environment: the Heritage Foundation's Index of Economic Freedom, the Worldwide governance indicators, the World Economic Forum’s indicators of corporate culture, development and regulation of financial markets. Unlike most previous studies, we test not only static regression models (multifactor linear regressions), but also dynamic models based on the generalized method of moments, which allows to solve the problem of endogeneity of variables.
The results show that low quality of institutional environment, macroeconomic and financial instability stimulate growth of the share of LCY corporate bonds in the total issuance volume. In the periods of instability LCY corporate bonds become less attractive for foreign investors, and issuers are forced to raise capital in the domestic market. The most significant factors in both static and dynamic model specifications are the World Bank’s indicators of regulatory quality and rule of law. A decline in sovereign credit ratings also gives impetus to the development of LCY corporate bond markets.
An original result is that more developed stock markets suppress the growth of LCY corporate bond markets: equity and corporate bonds are competing financing sources for companies from developing countries. A developed banking sector contributes to the growth of the LCY corporate bond market: banks act as dealers and market makers. Devaluation of the national currency has a significant positive influence on the explained variable.
The essay focuses in the issue of sustainable healthcare systems development, in the poorest countries particular, and the taken measures to tackle it in three main areas: maternity care, children's mortality reduction and struggle against HIV/AIDS and other dangerous diseases. The author highly estimates the impact of intellectual property rights on the possibilities for providing universal access to medical services in the developing countries.
This paper focuses on the period beginning with 1998, with only a brief reference to early reform initiatives of the G8. It will examine and comment on reform proposals as well as reforms actually achieved or underway. It will pay particular attention to the reform dimension of the evolving G5, Heiligendamm Process, BRIC (Brazil, Russia, India, China), Major Economies Meeting and G20 groupings, and to the G8's relationship to these structures. The chapter concludes with outlining possible trajectories of G8 reform.
Five papers analyze the bidirectional relationship between poverty and migration in developing countries. Papers discuss the patterns of migration in Tanzania (Kathleen Beegle, Joachim De Weerdt, and Stefan Dercon); work-related migration and poverty reduction in Nepal (Michael Lokshin, Mikhail Bontch-Osmolovski, and Elena Glinskaya); the evolution of Albanian migration and its role in poverty reduction (Carlo Azzarri, Gero Carletto, Benjamin Davis, and Alberto Zezza); migration choices, inequality of opportunities, and poverty reduction in Nicaragua (Edmundo Murrugarra and Catalina Herrera); and how developing country governments can facilitate international migration for poverty reduction (John Gibson and David McKenzie). Murrugarra is Senior Economist in the Latin America and Caribbean Region at the World Bank. Larrison is a PhD candidate and Assistant Teacher in the Trachtenberg School of Public Policy and Public Administration at George Washington University. Sasin is Economist in the Poverty Reduction and Economic Management Department at the World Bank. Index.
We study the relationship between SMS (small medium size) firm ownership structure and obstacle to finance. The empirical research considers both the concentration of the company's ownership (controlling owner) and the presence of foreign participants in the equity capital. Our aim is to identify those determinants of financial markets (bond market development), legal institutions and firms characteristics in the transition economies of the post soviet countries that can be considered as barriers to attracting financial resources. This paper sheds light on large shareholders’ influence on obstacle to finance.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.