Abstract

In 2005, the Millennium Ecosystem Assessment (MA, 2005) provided the first comprehensive report on global ecosystems, the dependence of human societies on the services provided, current state, and likely future trajectory. The MA identified the failure to value ecosystem services as a major contributing cause. The 2001 environment strategy did not explicitly address environmental valuation, although the focus on poverty and environment implies a need for valuing natural resources and environmental services. In consultations on the 2010 environment strategy, a wide range of stakeholders stressed the importance of mainstreaming environmental services. To better direct limited resources for environmental valuation and training, a closer look is needed to identify the conditions under which valuation has had an impact on: policy and project design, policy dialogue in client countries, environmental investments, and strengthening the capacity of national institutions. This report presents a review of environmental valuation in World Bank operational and analytical work, identifying what has been done, and the impacts environmental valuation has had. The report identifies the conditions under which valuation is most likely to influence decision-makers, and finally, the implications for the 2010 environment strategy. The report is organized as follows: section one gives context; section two gives introduction; section three gives approach to learning from past experience; section four focuses on coverage of ecosystem services; section five presents prioritizing environmental valuation; section six deals with why environmental valuation not done; and section seven gives recommendations. Document type: Book

Abstract

This study briefly summarizes the development experiences of special economic zones in China and Africa, the lessons that Africa can learn from China, and the preliminary results of the Chinese investments in special economic zones in Africa. The study makes recommendations on how to unleash the power of special economic zones and industrial zones in Africa through strategically leveraging the Chinese experiences. The success factors of Chinese special economic zones include the strong and long-term commitment of the government, a conducive business environment in the zones, strategic locations, technology upgrading and skills training, and strong linkages with the local economy. However, the Chinese experiences highlight some pitfalls to avoid, such as the “mushroom approach” and high-level overlaps at the later stage, environmental degradation, and the unbalance between industrial development and social dimensions. This calls for a bigger role for the market. Sub-Sahara Africas experience with traditional economic zones has been relatively poor, except in a few countries, such as Mauritius. The key challenges include the poor regulatory and institutional framework, lack of effective strategic planning, weak governance and implementation capacity, and inadequate infrastructure, among others. Since 2006, China has implemented special economic zone projects globally, including in four countries in Sub-Saharan Africa. It is still too early to conduct a full assessment of these projects; however, the evidence shows that some zones have begun to attract investments and make important contributions to the local economy. The main challenges include access to land, regulatory barriers, resettlement and coordination issues, and lack of external infrastructure. Document type: Book

Abstract

The aim of this paper is to provide feedback on the question of socioeconomic benefits from rural road development and the impact of transport infrastructure on the poor, particularly the poorest and the bottom 20 percent of the population. This paper relies on impact evaluation methodologies, which are traditionally used in social sectors but less so in the transport sector. The study, including first surveys, was launched in 2003 under the Tocantins Sustainable Regional Development Project. The paper highlights the context that led to the project’s design, which included an impact evaluation of the works envisaged under the project. The paper also highlights some of the main challenges faced by this impact evaluation and how these challenges were addressed for the present study. It then provides details about the data collected during the surveys and the key relevant characteristics of the population targeted by the surveys. It discusses the possible estimation methods envisioned to undertake the study and provides the main results of the assessment based on these methods. The analysis shows that improved rural roads changed people’s transport modal choice. People used more public buses and individual motorized vehicles after the rural road improvements. The paper also finds that the project increased school attendance, particularly for girls. Although the evidence is relatively weak in statistical terms, it indicates that the project contributed to increasing agricultural jobs and household income in certain regions. Document type: Book

Abstract

Cost-benefit analysis (CBA) is the root of Health Economics and is based on the welfare theory. CBA is the broadest economic evaluation (EE) method that assesses all benefits and costs in monetary units; the production of welfare is expressed in terms of net benefit (the difference between benefits and costs). The main goal in the welfarist approach is to maximize welfare according to individuals’ preferences. The application of CBA principles faces multiple obstacles, mainly because valuing health in terms of monetary units is challenging and raises ethical and methodological constraints. In the health sector, CBA has received relevant criticism, leading to the emergence and adoption of other methods of EE, such as cost-effectiveness analysis (CEA) and cost-utility analysis (CUA). However, attempts to apply welfarist principles to CEA were far of being accepted, and consensus among health economists in this regard still does not exist. The extra-welfarist approach encompassing CEA and CUA has progressed toward maximizing health outcomes and focusing on equity and fairness issues. The most common technique used in CBA to elicit preferences is the contingent valuation (willingness to pay). Despite the challenging task of valuing mental health outcomes, some studies demonstrate the feasibility of this technique in people with mental disorders, though some level of inconsistency and inaccuracy in respondents’ answers was reported. Despite methodological limitations among all EE methods applied to health, there is a growing interest in CBA and, more specifically, in discrete choice experiment, especially for health services and public health policies, and in exploring patients’ treatment preferences. The Mental Health field adds challenges to CBA regarding the complexity of defining and measuring outcomes representing mental health maximization. Document type: Book