Making World Development Work

Work is constantly reshaped by technological progress. New ways of production are adopted, markets expand, and societies evolve. But some changes provoke more attention than others, in part due to the vast uncertainty involved in making predictions about the future. The 2019 World Development Report will study how the nature of work is changing as a result of advances in technology today. Technological progress disrupts existing systems. A new social contract is needed to smooth the transition and guard against rising inequality. Significant investments in human capital throughout a person’s lifecycle are vital to this effort. If workers are to stay competitive against machines they need to train or retool existing skills. A social protection system that includes a minimum basic level of protection for workers and citizens can complement new forms of employment. Improved private sector policies to encourage startup activity and competition can help countries compete in the digital age. Governments also need to ensure that firms pay their fair share of taxes, in part to fund this new social contract. The 2019 World Development Report presents an analysis of these issues based upon the available evidence.

Economic, technological, and political shifts as well as changing business strategies have driven firms to unbundle production processes and disperse them across countries. Thanks to these changes, developing countries can now increase their participation in global value chains (GVCs) and thus become more competitive in agriculture, manufacturing and services. This is a paradigm shift from the 20th century when countries had to build the entire supply chain domestically to become competitive internationally. For policymakers, the focus is on boosting domestic value added and improving access to resources and technology while advancing development goals. However, participating in global value chains does not automatically improve living standards and social conditions in a country. This requires not only improving the quality and quantity of production factors and redressing market failures, but also engineering equitable distributions of opportunities and outcomes - including employment, wages, work conditions, economic rights, gender equality, economic security, and protecting the environment. The internationalization of production processes helps with very few of these development challenges. Following this perspective, Making Global Value Chains Work for Development offers a strategic framework, analytical tools, and policy options to address this challenge. The book conceptualizes GVCs and makes it easier for policymakers and practitioners to discuss them and their implications for development. It shows why GVCs require fresh thinking; it serves as a repository of analytical tools; and it proposes a strategic framework to guide policymakers in identifying the key objectives of GVC participation and in selecting suitable economic strategies to achieve them.

Discussion of the governance of global trade and the multilateral trading system is too often dominated by developed-country scholars and opinion-makers, with inadequate attention given to developing country perspectives. Making Global Trade Governance Work for Development gathers a diversity of developing country views on how to improve the governance of global trade and the WTO to better advance sustainable development and respond to the needs of developing countries. With contributions by senior scholars, commentators and practitioners, the essays combine new, empirically-grounded research with practical insights about the trade policy-making process. They consider the specific governance issues of interest to developing countries and acknowledge the changing dynamics in the global economy and in trade decision-making.

Worldwide, the number of poor people increased during the past decade, despite technological improvements, more open trade, and improved policy frameworks in developing countries. Regional conflicts, adverse shifts in terms of trade, and marginalization of poor countries in the new global economy explain this outcome. This highlights the need to reform development assistance and improve its effectiveness. Making Development Work examines the four key principles of the Comprehensive-Development Framework, a World Bank initiative currently being piloted in twelve developing counties. The initiative promotes a holistic long-term vision of development, domestic ownership of development programs, and focus on results; and stronger partnership between government, the private sector, and the civil society. The first section of the volume describes the evolution in development thinking that culminated in this new consensus. The second focuses on country ownership of development policies and programs. Based on empirical evidence, it proposes a new view of the aid relationship as a mutual-learning process. The third section focuses on results and on the ways aid agencies might enhance development impact of their operations. It concludes with a preliminary assessment of strategies for scaling up from specific projects to sector and programmatic approaches, and suggests ways to adapt them to counter conditions. The experience of a bilateral aid agency, U.S. Agency for International Development (USAID), is examined in this context. The fourth section focuses on partnership, emphasizing that aid agencies must be explicit about the kinds of partnerships they seek with countries and the kinds of strategic selectivity they will exercise. The final chapter pulls together the lessons of development experience at various levels of operation. It outlines key tensions between comprehensiveness and selectivity, ownership and conditionality, speed and broad-based ownership, focus on results and poor local evaluation capacity, and enhanced country focus and globalization. Promising approaches to manage these tensions are put forward to replace one-size-fits-all prescriptions with client empowerment and social learning. Making Development Work offers rich lessons on improving the effectiveness of aid. It will be of particular interest to development practitioners, students and professors of development economics studies. Nagy Hanna is a lead corporate strategist and evaluation officer at the World Bank. He has published extensively on development, management, and knowledge. Robert Picciotto is director-general of Operations Evaluation at the World Bank.

The world's trade regime is promoted by international agencies and most governments as the best way to lift the poor out of poverty and achieve sustainable development. But does it contribute to human development or not? This reassessment looks in detail at the way it has worked under the GATT and under the World Trade Organization, and analyses how it is working and how it can be improved. The book aims to make major contribution to the debates surrounding globalization and the impact of trade on the poor, on social stability and on the environment. It is intended to provide a benchmark for future policy discussion and analysis.

Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.

Inclusive." --Résumé de l'éditeur.