World Development Report 2005 A Better Investment Climate for Everyone

by World Bank; USA, Oxford University Press

• ISBN13: 9780821357248
• ISBN10: 0821357247
• Additional ISBN(s): 9780821356821
• Format: Hardcover
• Copyright: 2004-09-25
• Publisher: World Bank Publications
• More Book Details
• Purchase Benefits

Summary

This is the 27th edition of the annual World Development Report and this edition focuses on a key development challenge of how governments can promote a strong investment climate in their societies, in order to foster economic growth and address poverty reduction objectives. Drawing on surveys of nearly 30,000 firms in 53 developing countries, as well as country case studies and other new research, the report explores options for expanding opportunities for firms and entrepreneurs of all types, from farmers and microenterprises to local manufacturing concerns and multinationals, to invest productively and create job opportunities. Findings drawn include that a strong investment climate should benefit society as a whole as well as individual firms, requires well-designed regulation and taxation systems. and should recognise and embrace the contributions of all types of firms to growth and poverty reduction. Governments need to address barriers to competitiveness and bridge the gap between policies and their implementation and address deeper sources of policy failure which can undermine a sound investment climate. The report also contains selected data from the World Bank's programme of Investment Climate Surveys and the Doing Business Project, as well as from the World Development Indicators 2004.

Table of Contents

Foreword	xiii
Acknowledgments	xv
Abbreviations and Data Notes	xvi
Overview	1	(1)
The investment climate is central to growth and poverty reduction	1	(3)
Tackling costs, risks, and barriers to competition	4	(1)
Progress requires more than changes in formal policies	5	(2)
A process, not an event	7	(2)
Focus on delivering the basics	9	(3)
Going beyond the basics involves additional challenges	12	(2)
The international community can lend a hand	14	(3)
PART I Improving the Investment Climate	17	(60)
The investment climate, growth, and poverty	19	(17)
Understanding the investment climate	20	(4)
How investment climate improvements drive growth and reduce poverty	24	(7)
Sharpening the focus on poverty reduction	31	(4)
Creating a better investment climate for everyone	35	(1)
Confronting the underlying challenges	36	(20)
The basic tension: Firm preferences or the public interest?	37	(3)
Restraining rent-seeking	40	(5)
Establishing credibility	45	(5)
Fostering public trust and legitimacy	50	(3)
Ensuring policy responses reflect a good institutional fit	53	(1)
Making progress	54	(2)
Tackling a broad agenda	56	(21)
The investment climate as a package	56	(2)
Setting priorities	58	(10)
Managing individual reforms	68	(3)
Maintaining momentum	71	(3)
Strengthening capabilities	74	(3)
PART II Delivering the Basics	77	(80)
Stability and security	79	(16)
Verifying rights to land and other property	80	(4)
Facilitating contract enforcement	84	(5)
Reducing crime	89	(3)
Ending the uncompensated expropriation of property	92	(3)
Regulation and taxation	95	(20)
Regulating firms	95	(11)
Taxing firms	106	(5)
Regulating and taxing at the border	111	(4)
Finance and infrastructure	115	(21)
Financial markets	115	(9)
Infrastructure---connecting firms and expanding opportunities	124	(12)
Workers and labor markets	136	(21)
Fostering a skilled and healthy workforce	137	(4)
Crafting interventions to benefit all workers	141	(10)
Helping workers cope with change	151	(6)
PART III Going Beyond the Basics?	157	(30)
Selective interventions	159	(16)
The allure---and traps---of selective interventions	159	(4)
Experience in specific areas	163	(12)
International rules and standards	175	(12)
International arrangements and the investment climate	175	(1)
Enhancing credibility	176	(4)
Fostering harmonization	180	(2)
Addressing international spillovers	182	(2)
Future challenges	184	(3)
PART IV How the International Community Can Help	187	(11)
How the international community can help	189	(9)
Removing distortions in developed countries	189	(1)
Providing more, and more effective, assistance	190	(5)
Tackling the substantial knowledge agenda	195	(3)
Bibliographical note	198	(1)
Endnotes	199	(11)
References	210	(33)
Background papers for the WDR 2005	241	(1)
Case studies commissioned by the U.K. Department for International Development for the World Development Report 2005	242	(1)
Selected Indicators	243	(22)
Measuring the investment climate	244	(9)
Challenges in measuring the investment climate	244	(1)
The World Bank's new measures	245	(5)
Technical notes	250	(3)
Selected world development indicators	253	(12)
Data sources and methodology	253	(1)
Changes in the System of National Accounts	253	(1)
Classification of economies and summary measures	254	(1)
Terminology and country coverage	254	(11)
Technical notes	265