World Bank Working Papers

Many governments rely on oil companies to efficiently exploit natural resources. Governments have the challenging task of deciding which companies should be awarded exclusive rights to explore, develop, and produce their petroleum resources, and on what conditions such rights should be awarded. This paper analyzes the available evidence on the advantages and disadvantages of various systems used by petroleum-producing countries to allocate petroleum exploration, development, and production rights, and considers the policy implications of each system. The experience of six petroleum-producing countries is presented in detail, and numerous other examples are provided to derive lessons of wider applicability. The paper presents various conclusions for policy makers about the optimal design of allocation systems.

This study outlines the difficulties poor communities face in accessing peri-urban land in South Africa that could have implications and lessons for similar communities in other countries facing spatial segregation issues. 'In Search of Land and Housing in the New South Africa' focused on one community, composed largely of laid-off farm workers that wanted to buy their own farm in a peri-urban area west of Johannesburg. Their dream was to establish a mixed-use settlement. They wanted to call the village Ethambalethu-'Our Hope.' About 250 families started their own association and savings scheme to make their dream a reality. By 1997, they had saved enough money to make their first purchase offer. A decade later, the community's dream is still not a reality. The families have faced numerous obstacles: two cancelled sale agreements, wrongful arrest, being sued in court, an out-of-court settlement for which community members were paid to not move into the white neighborhood, and large sums of their own money spent on consultants and environmental impact studies. In an agreement with the Mogale City Municipality, where the land is located, the community now has at least a confirmed right to occupy the land. But it does not yet legally own the land, and is still trying to get permission to build on and work the land. The case of Ethembalethu is not unique. Millions of black South Africans live in peri-urban areas. Yet, government programs, development planning and environmental regulations, and the current land and housing markets do not support realization of their aspirations to become homeowners on sites of their choice.

Combating Terrorism Financing Through Effective Risk Management of Alternative Remittance Systems In today's interconnected world, alternative remittance systems (ARS) play a crucial role in facilitating financial transactions, particularly in developing economies. However, these systems can also be vulnerable to abuse by terrorist financiers. This working paper provides a comprehensive analysis of the risks associated with ARS and offers practical strategies for mitigating these risks. This paper is for government officials, financial regulators, and law enforcement agencies seeking to strengthen their counter-terrorism financing efforts. It offers insights into: - Understanding the anatomy of ARS and their vulnerabilities. - Developing effective risk mitigation measures. - Balancing security concerns with the need to maintain financial inclusion. - Improving international cooperation in combating terrorist financing. Gain a deeper understanding of the challenges and opportunities in regulating ARS and protecting financial systems from abuse.

The media's contribution to development occurs simultaneously along five closely intermingled influences: plurality and transparency, behavioral, infrastructure and platform, economic, and trade. The media are at the cutting edge of technological change, where the digitalization of content, Next Generation Networks, falling device and distribution costs, ever-increasing abundance and new business models are overturning the pre-existing order of markets and the media, though broadcasting, particularly radio, remain crucial in developing countries. This offers new development opportunities requiring new policy initiatives, and the realization of this by the development community. In many instances the media has yet to attain its appropriate status on the list of development priorities.

The purpose of this book is to provide policy insights to decision-makers, academics and researchers on investment flows and patterns in Southeast Europe. The report explores some of the determinants of private investment, such as: the financing sources for investment, the contribution of FDI and the role of public investment. It finds that investment rates in Southeast Europe are substantially lower than among the EU-8 and the fast growing East Asian economies, which could explain partly the slower economic growth in Southeast Europe.

This study finds that pension reforms in recent years have improved the efficiency and sustainability of pension systems in the new member states of the European Union and Croatia. However, for many countries, these probably have not gone far enough to ensure long-term sustainability, given the aging of the population. Reforms have included changes to Pay-As-You-Go (PAYG) systems, including increases in retirement ages (not at least for women), new benefit formulas, and new indexation mechanism. Some countries (Latvia and Poland) have further strengthened the link of contributions and benefits to the sustainability of the PAYG system through the introduction of national defined contribution accounts. The link is strengthened also by moving to a point system, which has been adopted by many of the countries. Several countries have introduced a second, private, pension pillar, funded through diversion of part of the pension contributions, thereby diversifying risk. However, some countries (in particular the Czech Republic, Slovenia, and Romania) will need to do more to safeguard the long-term viability of their pension systems, while others face challenges to ensure equitable pension systems and adequate living standards for all elderly people.

Drawing on the findings from responses to a survey conducted in 2008–09 from 114 central banks worldwide (of which 33 are in Africa), this paper aims to better understand how central banks and other national institutions regulate and collect data and other information on cross-border remittance flows. Findings indicate that, although the vast majority of countries, in both sending and receiving countries, collect data on remittances, and 43 percent of receiving countries estimate informal remittances, there is a need for more frequent and better coordinated data collection, both across national institutions and among different divisions within the same national institution, as well as between countries. Survey results also indicate that many new market entrants' transfer activities are unregulated. Countries must take into account new channels and technologies, such as mobile phone service providers, in monitoring remittance flows. It will be important for national regulatory authorities to work closely with mobile telecoms network operators to strike the right regulatory balance, to better understand these new channels' associated risks and fully tap their potential for fostering inexpensive, efficient remittance transfer services. The high cost of transfers was cited in the survey as the top factor inhibiting migrants from using formal channels. Many countries, particularly in Africa, have made progress in rendering exclusivity contracts illegal, which helps increase competitiveness and reduce transfer costs. But further policy reforms and initiatives are needed to address the high costs of remittances. The joint African Development Bank-World Bank Africa Migration Project and G-8 Global Remittances Working Group provided partial funding support for this study.

Empowering Rural Bangladesh Through Sustainable Energy SolutionsRestoring Balance: Bangladesh's Rural Energy Realities examines the critical role of energy in the economic and social development of rural Bangladesh. This study highlights the challenges faced by rural communities, including limited access to electricity, reliance on unsustainable biomass, and the health risks associated with indoor air pollution. Discover how access to modern energy services can transform rural livelihoods, improve education, and empower women. This report offers valuable insights and policy recommendations for policymakers, researchers, and development practitioners seeking to promote sustainable energy solutions and reduce poverty in Bangladesh and similar developing countries. Learn how strategic interventions can unlock the potential of rural communities and create a brighter future for all.

The Caribbean Region is second only to Africa in the impact of HIV and AIDS. The Caribbean Community (CARICOM) has responded to this challenge by promoting a multisectoral response to the epidemic. UNESCO has provided regional leadership in strengthening the education sector component of this response. In 2005, UNESCO launched, with CARICOM and the World Bank, a regioinal dialogue involving representatives of Ministries of Education, national HIV and AIDS coordinating councils, development partners, and regional institutions providing leadership in the HIV response, which led to the development and endorsement of a regional Proposal for Action: Accelerating the Education Sector Response to HIV and AIDS in the Caribbean Region. In June 2006, Ministers of Education and representatives of National AIDS AUthorities met in Port-of-Spain, Trinidad and Tobago, under the auspices of the CARICOM Council on Human and Social Development, and agreed to promote education sector leadership in addressing HIV and AIDS and to create a supportive policy and financial environment at national and regional levels. This report describes the development of these regional processes and how they have led to a stronger education sector response at the regional level. It also focuses on developments in three countries (Guyana, Jamaica, and St. Lucia) as examples of how this regional effort translates into action at the national level.

This report, Remittance Corridors to Uganda: United Kingdom, United States, and South Africa, analyzes and compares three bilateral remittance corridors. The comparison highlights similarities and differences and the significance of the remittance-sending countries to Uganda in terms of volume, corridor formality, risks, and vulnerability to money laundering. It also describes Uganda as a remittance-receiving country and outlines the remittance flows, market players, distribution network, access and usage of remittance, regulatory framework, and measures taken toward anti-money laundering and combating financing of terrorism (AML/CFT). The issues and challenges faced by Uganda are identified and policy recommendations are made for both Uganda and remittance-sending countries.

Large and growing subsidies to residential consumers in Mexico have become a major policy concern. This report explains the growth of subsidies, the current distribution of subsidies across income classes, and uses utility and household survey data to simulate how alternative subsidy mechanisms could improve distributional and fiscal performance. The goal is to help inform discussion in Mexico about how to reduce subsidies and redirect them toward the poor. The findings also offer lessons for other countries that are planning tariff reforms in their electricity sectors.