This study follows on other IFI initiated impact studies like the PIDG-commissioned study on the Bugoye power plant in Uganda and the study on Powerlinks transmission in India/Bhutan conducted by IFC. This report explains how the impact of IFI investments in Philippine power generation largely travels through its effect on electricity price. Unlike the situation in a number of other emerging markets (notably in Africa) where demand (far) outstrips generation capacity, power supply in the Philippines has historically been able to satisfy demand, albeit at prices which likely constrain demand. Residential electricity consumption depends much more on income than on electricity price (i.e. is elastic with respect to income and inelastic with respect to price). In most commercial sectors electricity use is also rather price inelastic because it constitutes a fixed production cost. In the manufacturing sector, however, electricity is largely a variable cost and electricity consumption has thus been found to be more price elastic. For that reason and because the manufacturing sector is responsible for about a third of electricity consumption, this study focusses on the marginal price decreasing impact of IFI-attributable power generation and thereby on increasing manufacturing sector output. Apart from a direct increase of value added (incomes), more manufacturing output also requires other sectors to increase their output and value added (incomes), which in return will increase electricity consumption, thereby increasing electricity prices.
This study sets out the pathways through which improvements in the availability, affordability and reliability of electricity supply impact on businesses and households. Specifically, it evaluates whether IFC investments into power generation and distribution have helped sustain jobs and incomes in Turkey. IFC is supporting private sector investment in the power sector in Turkey. The organization has exposure both in power generation and distribution. Since 2008, it has provided USD 1,816 million in (A, B and C) loan capital and invested USD 170 million equity capital. A total of USD 1,666 million loan capital went to four generation companies (Enerjisa Enerji, ACWA, Akenerji, and Rotor Elektrik) while the entire equity investment was made into a sixth generation company (Gama Enerji). The distribution company SEDAS received USD 150 million loan capital (and an additional USD 90 million sourced from international banks). IFC has financed plants with a total installed capacity of 6,109 MW of which 3,053 MW are currently operational and the remainder is under construction.
Today, more than half of Haiti's population calls cities and towns their home, in a major shift from the 1950s when around 90 percent of Haitians lived in the countryside. Urbanization is usually paired with economic growth, increased productivity, and higher living standards, but in Haiti it has taken a different course. Potential benefits have been overshadowed by immense challenges, all of which require immediate action. To better understand the factors that constrain the sustainable and inclusive development of Haitian cities, this Urbanization Review organizes the challenges along three dimensions of urban development namely planning, connecting, and financing. Planning reviews the challenges in supporting resilient growth to create economically vibrant, environmentally sustainable, and livable cities. Connecting focuses on the obstacles of physically linking people to jobs and businesses to markets, while financing focuses on identifying the key capital, governance, and institutional constraints that are hurdles to successful planning and connecting.
Almost one in 10 of the world’s population, 679 million, are children younger than five years old. To thrive and develop, these children and their older siblings need care. Yet in many parts of the world, childcare remains scarce. Globally, just over half of the children under age five benefit from a preschool program. Formal childcare is often outside the reach of low- and middle-income employees. For those who can afford it, available options are often limited and poorly aligned with full-time working hours. Access to care is particularly lacking for children younger than three. For employers, the lack of good quality and affordable childcare for their employees can translate into higher turnover and absenteeism, lower productivity, and difficulty recruiting skilled employees. This is because the unavailability or unaffordability of care affects the choices that parents make regarding the type of work that they do, whether they stay at home, or how they combine work with care. For families, gaps in access to quality care can mean less paid working time and lower household incomes.
Participation in a Global Value Chain (GVC) can create more jobs through a structural transformation, and potential jobs spill overs from strengthened backward and forwardlinkages. GVCs can also have a positive impact on jobs for women. Evidence shows a disproportionateshare of jobs in labor-intensive chains benefiting women.Jobs in GVCs are better jobs because of higher wages and better working conditions, as domestic firms seek to comply with global standards to participate. However, these above mentioned labor market outcomes being achieved depend on several parameters, such as the sector of operations, level of firm operation, and existing distortionsin the labor market. But evidence for GVC participation leading to better jobs is strong at the firm level, given the win-win business case through higher productivity, efficiency, and profits.The jobs outcome through GVC participationcan be strengthened through focusing on GVC upgrading strategies, implementing and strengthening private standards, improving national regulations, and strengthening monitoring and evaluation of impact of GVC operations.
Digital technology is transforming the organization and location of production, and thus the future of work. It risks widening the gap between richer and developing countries, and between the better skilled and connected and the poorer population groups within countries, who stand to bear the brunt of the adjustment. But technology also creates opportunities (leapfrogging), to generate jobs, increase earnings and be more inclusive. To take maximum advantage and counter the threat of rising global inequality, developing countries need to address bottlenecks in technology access, invest in skills and create an enabling environment.