World Bank policy and research bulletin 10(4)

W O R L D B A N K P O L I C Y A N D R E S E A R C H October-December 1999 Volume 10, Number 4 5 New Research 8 Publications and Data 16 Order Form 20382 Creating cities that work in the new global economy s the twenty-first century begins, industrial and developing international capital flows has soared over the past two decades- countries alike face the same challenge: how to reap the particularly among developing ,IAEbenefis of globalization. almcountries. Trade now accounts for w benefits of globalization. almost 50 percent of GDP in devel- oping countries-a share that will Countries able to participate actively in the global market- grow if past trends continue (figure 1). Foreign direct place will enjoy extraordinary benefits-expanded trade, investment in developing countries has also increased, ris- faster growth, lower unemployment, improved living stan- ing from $34.4 billion in 1991 to $155.0 billion in 1998. dards. Countries that cannot compete globally are likely to These expanding global links have benefited many devel- fall further and further behind. The stakes in responding to oping countries, which now produce a range of goods and the challenge of globalization are thus enormous. services once turned out by industrial countries. The shift has been particularly large in industrial components, which Adapting to the new global environment represented about a third of all manufactures traded by the Twenty-five years ago world trade was just $2.1 trillion, early 1 990s. The "sourcing" of components has created a most countries were undemocratic and highly centralized, huge global production network that brings together and only a third of the world's population lived in cities. designers, producers, and distributors from all over the Today, as a result of globalization, decentralization, and world. The use of the World Wide Web, where some pro- urbanization, the world is a vastly different place. World ducers already post their component requirements, will trade reached more than $13 trillion in 1998, and many almost certainly increase the volume of sourcing in the multinational companies operate factories in dozens of twenty-first century, creating new opportunities for develop- countries, many of them in the developing world. Most ing countries. countries are democracies, and political decisionmaking is Growth in trade increases the volume and diversity of increasingly in the hands of regional and local policymakers. goods available to consumers. It exposes companies and And about half the world's population lives in urban areas. workers to international best practices, increasing the effi- All these changes carry the promise of large gains for devel- ciency with which capital and labor are deployed. And it oping countries, but they also expose them to greater risks. improves access to capital inputs, such as machines. The resulting increase in productivity can boost economic Globalization provides tremendous opportunities growth, helping developing countries raise living standards for increasing exports and imports and reduce poverty. As a result of technological progress, political changes, and There is a downside to globalization, however. By expos- changes in trade relations, the volume of trade and private ing domestic industries to competition from abroad, it  F I G U R E 1 a much stronger demand for responsive government, Trade as a share of GDP in developing and industrial putting pressure on national governments throughout the countries, 1981-97 world to devolve power and responsibility to regional and Flercent local bodies. At the same time citizen participation- 50 Developing countries through community and nongovernmental organizations- has risen as individuals seek a larger role in decisions affecting their lives. The trend toward decentralization is helping govern- ments respond to the needs of their citizens. It is also allow- Industrial countries ing policymakers to exercise more effective control over one of the keys to successful integration into the world econ- 4i /omy: creation of effective cities. Urbanization helps nations increase exports Throughout the world more and more people are living in cities. In 1975 only a third of the world's population lived in urban areas; by 2025 this share is projected to reach nearly two-thirds. The majority of these urban dwellers are 1981 1983 1985 1987 1989 1991 1993 1995 1997 expected to live in developing countries, already home to most of the world's cities. How these cities develop will help Note: Trade is the sum of exports and imports of goods and services. Source: World Bank, World Development Indicators 1999 (Washington, DC: 1999). determine how successful developing countries are in raising their living standards in the twenty-first century. threatens business owners and workers alike. By opening up Historically, urbanization has paralleled development, for finiancial markets to international investors, it increases their several reasons. First, manufactured goods and services are volatility and the likelihood of currency crises-as the East produced more efficiently in densely populated areas, Asian financial crisis of the late 1990s showed. because these areas are more likely to have pools of skilled To ensure that globalization strengthens rather than labor and a critical mass of consumers. Second, plants in weakens their economies, developing countries must urban areas benefit from observing nearby competitors' pro- enhance their competitiveness and promote technological duction processes, technology, suppliers, and customers. innovation. They must also become integrated into the Firms do so directly, through communication among pro- global trading network-by adopting policies that promote ducers and their employees in local social networks, and trade, by attracting foreign direct investment, and by form- indirectly, through suppliers, purchasers, and local officials ing partnerships with other national governments, interna- who tell plants what local competitors and other plants are tiornal organizations, nongovernmental organizations, and doing. Finally, the agglomeration of many businesses allows multinational corporations. To stimulate foreign capital cities to create diversified economic bases. Diversification flows without increasing exposure to abrupt changes in reduces cities' vulnerability to fluctuations, because workers investor behavior, they must reform their banking sectors. displaced by one industry can be absorbed by another. To produce ever more sophisticated exports, they must Today, with trade accounting for a rising share of GDP, invest in skills, physical infrastructure, and research and the benefits of urbanization are more important than ever, development. particularly for developing countries. Because domestic firms engaged in trade and transnational corporations seek Decentralization allows governments to respond locations for their plants that are near suppliers, trained to citizens' needs workers, and transport infrastructure, globalization is likely The political landscape of the world has changed dramati- to spur urbanization, especially in developing countries. At cally over the past 25 years. In 1974 fewer than 30 percent the same time urbanization is likely to build support for of the world's nations had democratic systems; today more globalization. Cities will support increased trade because than 60 percent are democracies. As a consequence, there is they will benefit from the opening of new markets in which .2 World Bank Policy and Research Bulletin October-December 1999  to sell their output and purchase their inputs. They will also * Create an environment that reduces the cost of doing support the freer movement of capital to finance industry, business. Effective cities minimize transactions costs that infrastructure, and services. Effective cities may thus benefit make it difficult for businesses to enter and exit local from a virtuous cycle in which globalization increases markets. They eliminate or reduce trade protection. urbanization, which builds support for further They establish a rule of law that protects individuals and globalization. businesses. * Exploit a comparative advantage in producing tradable How can developing countries create effective cities? goods. Developing countries that create competitive cities will reap * Create diverse industries in order to reduce vulnerability the benefits of worldwide growth. Countries that fail to to market fluctuations. urbanize successfully will be left behind by a world that is technologically sophisticated and increasingly integrated. Good policies and bad policies What do developing countries need to do to help create Cross-country experience suggests that national and sub- globally competitive cities? national governments have very different roles to play in creating effective cities. What is the appropriate role of each Alleviate urban problems level of government? Cities represent developing countries' best hopes for pro- moting living standards by becoming integrated into the The role of national governments global economy. But many cities arc plagued with problems Governments throughout the world have tricd to altcr thc that inhibit economic progress, including inadequate hous- path of urbanization-almost always without success. In ing and sanitation and high levels of poverty, crime, disease, Africa governments encouraged rural migrants to move to and pollution. About half of urban residents in developing cities through subsidies to urban services and price distor- countries suffer from waterborne diseases and diseases tions favoring the urban sector. Elsewhere, as in China, gov- spread by water-related vectors, such as malaria and dengue ernments have sought to restrain the flow of people to cities, fever, and in many cities health conditions for the poor are though with limited success. These attempts to control the worse than in rural areas. path of urbanization have created cities that have reduced Air quality in urban areas is also much worse than in rather than increased economic growth. rural areas. More than 1.1 billion urban residents worldwide These failures suggest that governments should not try to are exposed to levels of air pollution that exceed World influence the pace of urbanization or the location of urban Health Organization standards. The problem is particularly areas. Instead, the national government should try to create acute for the poor, wvho are more likely to work at polluted an environment that is conducive to economic growth industrial sites and live in poorly ventilated homes. throughout the country by adopting macroeconomic poli- Despite large investments in infrastructure in the 1980s cies that promote price stability, establishing institutions and 1990s, more than 220 million people in urban and that enforce the rule of law, and investing in infrastructure pern-urban areas lack access to clean water and sanitation that helps support effective cities. services. Almost half a billion urban dwellers do not even have simple latrines, and solid waste often piles up on city The role of subnational governments streets, where it contributes to the spread of disease. Local and regional rather than national governments will play the critical roles in helping cities attract and retain for- Create environments that attract foreign investment eign investment. Subnational governments can improve the Cities with inadequate infrastructure and a high incidence urban environment in many ways: of crime and poverty are unlikely to attract investment, * Financing capital investment in infrastructure directly, local or foreign, which is key to improving living standards. through partnerships with private investors, or by helping They can become trapped in a vicious spiral. What can municipalities raise capital on financial markets. cities do to attract foreign investment? * Efficiently providing basic services, particularly clean air, * Improve governance and mobilize domestic resources so clean water, and good sewerage, through privatization where as to improve the physical and human capital base. appropriate. October-December 1999 World Bank Policy and Research Bulletin 3  Creating well-functioning land markets in which owner- China, for exa-mple, national and local governments have ship rights are clearly established. committed to restoring the country's largest city to its for- . Creating a legal environment that is conducive to entre- mer greatness (box 1). Urbane al new al represents an impor- preneurship and growth. tant part of S.anghai's plan to regain its status as one of the - Protecting property rights. most modere cities in Asia. s testgnidg polth ies that create a criicat mass of specatpc indcustries. This article draws on the World Bankl World Development iCreating a forum within which private and public secaor Report 1999/2000: Entering the 21st Century-The actors can communicate and define common goals for the city. Changing Development Landscape (New York: Oxford Attracting and building human capital. University Press, 1999;for ordering information, see the last page). The box drmws on Weiping Wa , "Shanghai, " Cities 6i Meeting the challenge no. 3 (1999): 207-16. Somse policymakers in the developing world are successfully ad(iressing the challenge of creating effective cities. In 4 World BaCtk Powicy anr d Research Bulletioa Ogtober-Denember 1999  Measuring the Economic Value of unsatisfactory performance in the pub- N ew te s e a r c h Environmental Protection Projects: lic health sector by corporatizing pub- Methodology and Application to lic hospitals-granting them varying The research projects described Armenia's Lake Sevan degrees of financial and managerial here are directed by World Bank Sari Soderstrom and Maureen Cropper autonomy through a corporate board staffandfunded by the Bank' EastAsia and Pacific Region, Rural while retaining ownership. As a rela- central Research Support Budget Development and Natural Resources tively new organizational form, corpo- (RSB). For information about Sector Unit; and Development Research ratization leaves some questions about the research projects described Group institutional design unanswered. here, contact the researchers at Lake Sevan, a large, high-altitude lake This research will look at issues the Bank, main address in Armenia with much symbolic, of institutional design in Lebanon. (see back page). cultural, and historical importance to It will analyze a successful case of Armenians, has been significantly corporatization-a hospital that infor- Health, Environment, depleted over the past 50 years. With- mally created a corporate structure for and the Economy drawals have lowered the water level itself seven years before legislation for- Zmarak Shalizi and shrunk the surface area, destroy- mally corporatized hospitals nation- Development Research Group ing fisheries and reducing tourism. wide. It will then compare this case Policymakers and the public The Armenian government is con- with two less successful ones, to see often think in terms of a tradeoff sidering actions to stop or partially whether differences in institutional between economic growth and a reverse the damage. The costs of these design explain the differences in out- clean environment. In fact, the actions are estimated to be high. There come. Through the theoretical lens of causation between the two may has been no estimate of the benefits. a principal-agent model, the study also wvork in both directions: faster This study will use contingent valua- will examine the design of an account- growth may cause environmental tion to estimate the benefits related to able corporate board in a public degradation, and environmental the lake's recreational and nonvalue uses. hospital. degradation may slow economic Through surveys, it will assess the will- RSB funding. $39, 000 growth. ingness of Armenians-in the country Staff weeks: I Using data on more than 100 and the diaspora-and tourists to pay to countries, this study will examine prevent further degradation of the lake. Economic Growth, Social Capability, the link between environmental It will test different formats for eliciting and Preindustrial Development pollution and death rates among value (open-ended, close-ended, Peter Miovic three population subgrouips: individu- likelihood), different survey modes Africa Technical Families, als below, of, and above working age. (mailed questionnaires, in-person inter- Macroeconomics 2 The disaggregation of the data will views), and different payment vehicles Recent studies have conjectured that allow health effects primarily affecting (utility bills, a trust fund, tourist fees). differences in preindustrial develop- children to be distinguished from RSB funding: $288,500 ment levels-running along a spectrum those affecting adults. The study Staff weeks: 14 from foraging, band-type societies to will also examine how the incidence intensive agriculture in large-scale of death from environmentally caused Analyzing Problems in Public states-help explain differences in diseases and the level of pollution Hospital Corporatization Using modern economic development. Their affect growth, the rate of human Information Economics findings have suggested a link between capital accumulation, and the rate Anwar Shah population density, used as a proxy for of investment. Operations Evaluation Department, preindustrial development, and devel- RSB support: $39,000 Country Evaluations and Regional opment of human capital. Relations This study will extend this line of Some developing country governments research. It will attempt to verify the have responded to fiscal pressures and relationship between premodern October-December 1999 Wbrld Bank Policy and Research Bulletin 5  (levelopment and recent growth using Delivery of Social Justice in To help in understanding the links larger samples, longer time series, ear- Decentralized Arrangements: between the elements of a comprehen- lier data for premodern development, A Study of the Zambia and sive development framework, this and more sophisticated methods Uganda Situations study aims to develop a conceptual (most important, panel data rather Leslye Obiora and Helen Mbao model of such a framework and then thian cross-sectional analysis). And it Africa Technical Families, to estimate the model empirically will investigate the degree to which Human Development 1; using cross-country, time-series data. premodern development affects and Zambia Country Office The model will be based on a system growth through its influence on state As part of broader decentralization of simultaneous equations linking dif- capacity and institutional quality. efforts, Uganda and Zambia are ferent development goals and policy RSB funding: $23,200 decentralizing dispute resolution instruml-ents. It will be estimated using Staff weeks: 2 mechanisms. This research project will both individual indicators (average examine how vesting local institutions education, Gini coefficients of educa- Managers, Investors, and Crises: with judicial powers has affected tion, infant mortality, carbon dioxide Mutual Fund Strategies in women's ability to enforce thcir rights. emissions) and composite indexes of Emerging Markets The study will identify a random human development and sustainable Sergio Schmukler set of villages in Uganda and Zambia development. Latin America and the Caribbean and, within each village, a representa- RSB funding: $40, 000 Region, Poverty Reduction and tive set of cases brought by women Staff weeks: 10 Economic Management Sector Unit before the local council (160 in total). The Mexican crisis in 1994 and the Interviews will be conducted with the The Effects of Telecommunications Thai crisis in 1997 have focused women who brought the cases and Infrastructure on Investment: attention on the role of international with the local council officials to An Empirical Analysis capital markets in the strong conta- determine how well the local court Charles Kenny gion effects that followed. To help systems work and how they affect Energy, Mining, and Telecommuni- shed light on that topic, this study will women's access to justice. Court cations Department, Telecommuni- look at the behavior of an important records will be examined to see what cations and Informatics Division class of international investor-U.S. laws are applied-whether customary Recent studies have suggested that the mutual funds. It will focus on interna- laws or laws adapted to address gender quality of investment is far more sig- tiornal open-end equity mutual funds inequality. nificant in determining economic that invest in emerging markets, RSBfunding: $40,000 growth rates than is its quantity. Other drawing on data for 1992-98. studies have suggested a connection The study will look at the role of An Empirical Study of a between growth and the quantity of the funds in moving asset prices and Comprehensive Development telecommunications infrastructure. examine their strategies-for example, Framework This research project will use econo- whether they engage in momentum Vinod Thomas and Yan Wang metric analysis to examine the effect tracLing (buying past winners, selling World Bank Institute, of telecommunications on the quality past losers) and herding. And it will Office of the Director and allocation of investment. assess their role during financial crises, Although many developing countries The study will look at how the determining how they allocate portfo- have adopted the "right policies," or at state of telecommunications affects the lios across countries and regions. least a subset of them, few have suc- success of World Bank-supported RSB funding: $39,500 ceeded in reducing poverty. In development projects in other sectors. StaJ, weeks: 30 response to this disappointing out- And it will examine the relationship come, some economists have proposed between telecommunications and the a comprehensive development frame- type and quantity of foreign direct work with a larger set of development investment flows into a country. The objectives and policy instruments. results should shed light on what ele- 65 World Bank Policy and Research Bulletin October-December 1999  ments of telecommunications infra- both industrial and developing coun- financial, and environmental factors structure are most important in attract- tries. In East Asia, through pyramid and allow identification of conditions ing foreign direct investment and structures and cross-holdings, a single under which sustainable management determining the returns to investments. individual, family, or coalition of fam- would be socially desirable. The pro- RSB funding: $32,000 ilies often ends up controlling many ject will produce operational guide- Staff weeks: 4 firms, a type of organization referred lines and a training package for use in to as a group. countries with acute sedimentation Excessive Regulation of Small What are the costs and benefits of problems. Business: A Cross-Country group ownership structures? Using RSB funding: $176,400 Analysis data on about 3,000 firms in nine East Staff weeks: 30 Simeon Djankov Asian economies, this study will test Financial Sector Strategy the relative importance of three possi- Global Development Network: and Policy Department ble effects of group ownership: Researching the Researchers Many studies have found that small expropriation of minority sharehold- Lyn Squire businesses have distinct positive effects ers, effective allocation of scarce Office of the Vice President, on economic growth and equity. capital among firms in a group, and Development Economics These findings suggest the importance greater access to external capital and What key actions can be taken in the of knowing which conditions encour- thus an enhanced role of external short run to increase policy-oriented age the development of the small busi- markets in monitoring firm behavior. research in developing countries, ness sector-and which discourage it. RSB funding: $39, 000 improve its quality, and strengthen its This research project will analyze the Staff weeks: 4 impact? This project aims to answer small business sector and the regula- these questions by surveying research tions that affect it in 73 developing, Economic and Engineering institutions in developing countries. industrial, and transition economies. It Evaluation of Alternative Questionnaires will be sent to more will examine which regulations relating Strategies for Managing than 500 developing country research to startup encourage or hinder the cre- Sedimentation in Storage institutions, asking them to rate the ation of small firms, and which regula- Reservoirs importance of a range of activities tions relating to regular operations Alessandro Palmieri, Farhed Shah, supportive of research. Institutions encourage or hinder their growth and and Ariel Dinar will also be asked to provide informa- development. The types of regulations Rural Development Department tion about themselves, such as their to be examined will include licensing The traditionally accepted practice in type, size, main activities, funding and registration, postregistration designing and operating reservoirs is sources, and access to electronic municipal requirements, labor regula- to have them fill slowly with sediment, communications. tions, taxation, and utility hookup. leaving the consequences of the sedi- The project will use the survey RSBAfunding: $39,500 mentation and abandonment of reser- results to assess the needs of research Staff weeks: 3 voirs for future generations. That stage institutions in aggregate, by region, by has already arrived for many reser- national income level, and by institu- Costs and Benefits of Group in voirs, and the suitable sites for new tional characteristics. The findings will Developing Countries: Theory and reservoirs ate limited. What is needed inform the choice of activities pursued Tests Using East Asian Firms is sustainable management of dams. by the Global Development Network Stijn Claessens and Simeon Djankov This study aims to develop a gen- (see the July-September 1999 issue). Financial Sector Strategy and Policy eral framework for assessing the RSB funding: $22,500 Department economic feasibility of sediment Staff weeks: 10 Much of the literature on the modern management strategies that could firm presumes widely dispersed own- significantly prolong the life of dams. ership. But recent studies have This framework will incorporate revealed ownership concentration in economic, physical-hydrological, October-December 1999 World Bank Policy and Research Bulletin 7  How Do the Poor Cope with a financial markets and the greater Widespread Natural Disaster? r u fuM ic all o n s diversity of financial instruments have A Study of the 1998 Flood of broadened access to funds and Rural Bangladesh and Data expanded financial instruments, prod- Shahidur Khandker ucts, and services. These new activities Development Research Group For information on how to order the and new sources of profit have Lacking credit, insurance, and salable World Bank publications reviewed in resulted in new and increased risks. assets, the poor are particularly vulner- this issue, seepage 16 This report provides a comprehen- able to the effects of large shocks such sive overview of topics relating to the as floods, cyclones, and earthquakes. B 0 0 K S assessment, analysis, and management How do poor households cope with of financial risks in banking. It shocks, and how can they best bc sup- Intellectual Property Rights in cmphasizes risk management princi- ported through interventions by gov- Agriculture: The World Bank's Role ples and provides a framework for ernments, donor agencies, and in Assisting Borrower and Member identifying the key players in the risk nongovernmental organizations? Countries management process and allocating This study will address those ques- Uma Lele, William H. Lesser, tasks to them. tions by looking at the 1998 flood in and Gesa Horstkotte-Wesseler, editors rural Bangladesh, which-despite The private sector's growing involve- J 0 U R N A L S predictions to the contrary-did not ment in agricultural biotechnology lead to major human catastrophe. A research makes intellectual property The articles summarized below survey will collect detailed household- rights an urgent issue for developing appear in the August issue of the and community-level information on countries. This volume presents papers World Bank Research Observer, flood damage, household coping from a major World Bank workshop vol. 14, no. 2. mechanisms, and the speed of recov- on intellectual property rights in agri- ery. The study will look at how house- culture, with valuable insights into Road Funds, User Charges, holds' coping ability depends on this complex area. Workshop partici- and Taxes socioeconomic class and village insti- pants felt it vital to resolve disputes Ken Gwilliam and Zmarak Shalizi tutions. And it will examine how surrounding intellectual property This article argues that dedicated road much interventions substitute for rights in developing countries-to funds managed by independent boards informal coping mechanisms-and protect food security and to ensure of user representatives can be an inter- wvhich are most effective. uninterrupted supply of new tech- mediate step toward a long-term solu- RSBfunding: $39, 000 nologies to resource-poor farmers. tion to insufficient or uncertain St fweeks: 8 budgetary allocations to road mainte- Analyzing Banking Risk: nance. The article recommends indi- A Framework for Assessing cators for determining whether a road Information 1 atintuny ~n~atc Corporate Governance and fund should be introduced, contin- rcscar~hps~je~P un~ckr way or Financial Risk Management ued, or abolished in specific cases. re~nfy ~rnpt~d th 'W~rldHennie van Greuning and Sonja Brajovic-Bratanovic Between the State and the Market: In the past decade rapid innovations Can Informal Insurance Patch the cuStudir.s (~~~g~ ~ in financial markets and the interna- Safety Net? orde in&nfo~matnam ~ tionalization of financial flows have Jonathan Morduch ~ab~yacfr~atcIi t~j~<~ ~significantly changed the nature of Most households in low-income coun- ~ banking. New knowledge-based activi- tries rely on informal insurance ties, such as trading in financial mar- arrangements rather than publicly kets, are now major sources of profit managed or market-provided schemes. for banks. The growth of international Informal mechanisms can be highly 8 Wlorld Bank Policg and Research Bulletin October-December 1999  effective in the right circumstances, land policies that incorporate these ele- Do Community-Managed Schools but they are often weak. Public policy ments requires a coherent legal and Work? An Evaluation of El can help by encouraging private, flexi- institutional framework and pilot pro- Salvador's EDUCO Program ble coping mechanisms while discour- grams to examine the applicability of EmmanuelJimenez and aging those that are fragile or that interventions under local conditions. Yasuyuki Sawada hinder economic and social mobility. This article examines how decentraliz- Climate Change, Agriculture, ing educatioinal responsibility to com- Using Household Surveys to Build and Developing Countries: munities and schools affects student Analytic Capacity Does Adaptation Matter? outcomes. It uses the example of El Lorraine Blank and Margaret Grosh Robert Mendelsohn and Ariel Dinar Salvador's Community-Managed This article reviews the results of Agronomic simulation models predict Schools (EDUCO) Program, designed efforts in five countries to build a that global warming will reduce grain to rapidly expand rural education national capacity to analyze social yields in cool wheat-growing areas but following the country's civil war. It policy-efforts undertaken in con- have not examined the possibility that finds that enhanced community and junction with Living Standards farmers will adapt to climate change. parental involvement in EDUCO Measurement Survey projects. The Based on data from Brazil and India, a schools has improved language skills five case studies show that building recent set of models finds that farmers and diminished students' absences. such capacity requires explicit plan- do take local climate into account and ning, significant time and money, their ability to do so will help mitigate Can Private School Subsidies open access to data, and strong sup- the impact of global warming. Increase Schooling for the Poor? port from policymakers. The Quetta Urban Fellowship The articles summarized below Program Managing Government Exposure appear in the September issue of the Jooseop Kim, Harold Alderman, to Private Infrastructure Risks World Bank Economic Review, and Peter E Orazem Timothy Irwin, Michael Klein, vol. 13, no. 3. This article evaluates a program Guillermo E Perry, and Mateen designed to stimulate girls' schooling Thobani A SYMPOSIUM ON EDUCATION through the creation of private girls' If governments, in privatizing infra- REFORMS schools in poor urban neighborhoods structure, assume risks that should be of Quetta, Pakistan. It finds that the borne by investors, they may reduce Evaluating Education Reforms: program increased girls' enrollment by incentives for efficiency and incur sig- Four Cases in about 33 percentage points. The pro- nificant liabilities. Governments need Developing Countries gram's success varied across neighbor- to restrict their risk exposure to politi- Elizabeth M. King and Peter E Orazem hoods, but was not clearly related to cal and regulatory risks over which This symposium features four studies relative wealth or to parents' education. they have control. And when they of education reforms and their impact provide guarantees, they should try to on enrollment and learning. Together, Central Mandates and Local measure their cost and improve their these studies make an important point Incentives: The Colombia handling of accounts and budgets. for development work: by evaluating Education Voucher Program ongoing policies and programs, poli- Elizabeth M. King, Peter E Orazem, The Evolution of the World cymakers can learn what works and and Darin Wohlgemuth Bank's Land Policy what does not under specific circum- This article analyzes incentives for Klaus Deininger and Hans Binswanger stances. They also show, however, that municipalities and private schools to This article examines the evolution of determining whether a policy or pro- participate in Colombia's education the World Bank's rural land policy gram has achieved its objectives is not voucher program. It finds that the over the past two decades. Although always easy. demand for secondary education rela- the guiding principles remain the same, tive to public school capacity and the new elements have emerged. Achieving availability of spaces in private schools October-December 1999 World Bank Policy and Research Bulletin 9  were key predictors of municipal par- income needed. Individual-level that have been used. And it identifies ticipation. Schools with moderate survey data reveal that people's subjec- lessons from the experiences of devel- educational quality and moderate fees tive estimate of that minimum fell oping countries in confronting the were the most likely to participate. about 1.7 percent each month. This challenges of regulatory reform. meant that a declining percentage of Situdent Outcomes in Philippine people felt poor-even though a Accelerating China's Elementary Schools: An Evaluation growing percentage had incomes Rural Transformation of Four Experiments below a real poverty line. Albert Nyberg and Scott Rozelle Jee-Peng Tan, Julia Lane, and While China's rural economy has Gerard Lassibille Labor Market Analysis and Public advanced in recent years, the country A L990-92 Philippine program to Policy: The Case of Morocco still needs to foster several critical reduce dropout rates and improve stu- Julia Lane, Guillermo Hakim, institutions, such as an effective fiscal dent learning in primary education andJavier Miranda system, a more efficient rural financial randomly assigned four experimental This article uses detailed industry and system, a workable land tenure interventions to 20 schools in selected household data to understand why arrangement, and a revamped trade lovw-income areas. Economic justifica- Morocco's labor market performed and investment environment for agri- tion was strongest for the interventions poorly in 1985-95. The data indicate culture. This report brings together that provided teachers with learning that marked structural changes and information on these crucial issues for materials, which helped them pace weak demand in the product market rural development in China. And it lessons by students' abilities, and that were responsible. The article demon- assesses strategic options from the initiated parent-teacher partnerships. strates that this kind of microeco- perspective of efficiency, equitable nomic analysis, using data sets often development, and growth. available in developing countries, can Callm after the Storms: inform policy dialogue. Economic Reform and Income Distribution and Environmental Performance Welfare in Chile, 1987-94 D I S C U S S I 0 N, in Transition Economies Francisco H. G. Ferreira and T E C H N I C A L , A N D Gordon Hughes and Magda Lovei Julie A. Litchfield R E L A T E D P A P E R S Technical Paper 446 After rising during most-but not Most observers expect the transition to all--of the period 1960-85, inequal- Managing the Regulatory Process: a market economy to yield environ- ity in Chile seems to have stabilized Design, Concepts, Issues, and the mental benefits as market incentives since around 1987. As inequality Latin America and Caribbean Story foster more efficient production, better remained broadly stable, sustained J. Luis Guasch and Pablo T Spiller use of resources, and increased commu- economic growth led to substantial Latin American and Caribbean Studies nity input. This report reviews progress we]fare improvements and poverty As economies become more open, in environmental trends--air and water reduction, according to a range of pressures on countries to become pollution and health indicators-in the measures and with respect to three more competitive drive the call for transition economies of Central and diflerent poverty lines. regulatory reform to reduce costs and Eastern Europe and the former Soviet foster increased productivity, competi- Union. It continues and builds on the Changes in the Perception of the tiveness, and growth. This report World Banks work in analyzing the Poverty Line during the Depression provides an overview of the costs and environmental effects of transition, in lRussia, 1993-96 benefits of regulation throughout the restructuring, and privatization with a Branko Milanovic and Branko Jovanovic world. It provides case histories of reg- view to identifying priority areas for This article analyzes how the precipi- ulation in different countries, devel- investment and policy initiatives. tous decline in real income during the oped and developing, and in various economic transition in Russia affected sectors, such as power and transporta- people's perception of the minimum tion. It presents different strategies 10 World Bank Policy and Research Bulletin October-December 1999  P O LI C Y R E S E A R C H Nonfarm Income, Inequality, Financial Sector Inefficiencies WO R K ING PAPERS and Land in Rural Egypt and Coordination Failures: Richard H. Adams Jr. Implications for Crisis Management Working Papers disseminate the TPS 2178 * Contact Moira Pierre-RichardAgenor findings of work in progress and Coleridge-Taylor, room MC3-797, andJoshua Aizenman encourage the exchange of ideas fax 202-522-3283. WIPS 2185 * Contact Tanya among Bank staff and all others . Shiel room J4-282, fax 202- interested in development issues. how Ild Labor 676-9810. Workig Paprs cn be own- Schooling Interact with Adult Labor Working Papers can be down- Ranjan Ray Contagion, Bank Lending Spreads, WWPS 2179 * Contact Michelle Mason, and Output Fluctuations bank.org/research/workingpapers room MC4-338, fax 202-522-1158. Pierre-RichardAgenor, Joshua or requestedfrom the contactperson indicated at the Bank's main address. Regulating Privatized Infrastructures WAIS 2186 Contact Tanya and Airport ServicesV/S28 CotcTay and Airport Services Shiel, room J4-282, fax 202- The Intriguing Relation between Ofelia Betancor and Robert Rendeiro 676-9810. Adult Minimum Wage and Child WIPS 2180 * Contact Gabriela Labor Chenet-Smith, room J3-147, fax Who Determines Mexican Kaushik Basu 202-334-8350. Trade Policy? WVPS 2173 * Contact Michelle Mason, . Jean-Marie Grether, Jaime de Melo, room MC4-338, fax 202-522-1158. Prvtization andultio and Marcelo Olarreaga of the Seaport IndustryWP217*CnatLlTbd, Prospective Deficits and the Asian Lourdes Trujillo and Gustavo Nombela WroS 2187 - Contact Lili Tabada, Currency Crisis WVPS 2181 * Contact Gabriela room MC3-333,fax 202-522-1159. Craig Burnside, Martin Eichenbaum, Chenet-Smith, room J3-147, fax Financial Liberalization and the and Sergio Rebelo 202-334-8350. Capital Account: Thailand, 1988-97 WTS 2174 * Contact Emily Khine, . . Pedro Alba, Leonardo Hernandez, room MC3-347, fax 202-522-3518. The Integraton of Transton and Daniela Klingebiel 202-522-3518. iconOmieS into the ord V/PS 2188 * Contact R<ose Vo, Sector Growth and the Dual Economy Trading System r Contax Rose2V01 Model: Evidence from Cote d'Ivoire, Constantine Michalopoulos room MC9-624, fax 202-522-2031. Ghana, and Zimbabwe WVPS 2182 * Contact Lili Alternative Frameworks for Niels-Hugo BlIunch and Dorte Verner Tabada, room MC3-333, fax Providing Financial Services WVPS 2175 * Contact Hazel Vargas, 202-522-1159. Stijn Claessens and Daniela Klingebiel room 18-138, fax 202-522-2119. V/PS 2189 * Contact Rose Vo, fax ~~~~~~Market Discipline and Financial ro C-2 a 0-2-01 Fiscal Risks and the Quality Safety Net Design room MC9-624, fax 202-522-2031. of Fiscal Adjustment in Hungary Asll Demirgui,-Kunt The Credit Channel at Work: Hana Polackova Brixi, Anita Papp, and Harry Huizinga Lessons from the Republic and Allen Schick WPS 2183 * Contact Kari Labrie, of Korea's Financial Crisis WVPS 2176 * Contact Alison Panton, room MC3-456, fax 202-522-1155. Giovanni Ferri and Tae Soo Kang room H4-296, fax 202-522-2751. Financial Services and the World WTS 2190 * Contact Kari Labrie, Fiscal Adjustment and Contingent Trade Organization: Liberalization room MC3-456, fax 202- Government Liabilities: Case Studies Commitments of the Developing 522-1155. of the Czech Republic and Macedonia and Transition Economies Can No Anirutist Policy Be Better Hana Polackova Brixi, Hafez Ghanem, Aaditya Mattoo Than Some Antitrust Policy? and Roumeen Islam WPS 2184 * Contact Lili Aaditya Mattoo WVPS 2177 * Contact Alison Panton, Tabada, room MC3-333, fax WPS 2191 * Contact Lili Tabada, room H4-296, fax 202-522-2751. 202-522-1159. room MC3-333, fax 202-522-1159. October-December 1999 World Bank Policy and Research Bulletin 11  Districts, Spillovers, and Managing Risks of Capital Mobility Jamaica's Food Stamp Program: Government Overspending Mansoor Dailami Impacts oni Poverty and Welfare Reza Baqir WIPS 2199 * Contact William Nedrow, Kene Ezemenari WPS 2192 * Contact Suhasini room J3-283, fax 202-334-8350. and Kalanidhi Subharao Devadas, room MC3-342, fax The Role of Trust in Financial WPS 2207 * Contact Gloria Peralta, 202-522-3518. Sector Development room MC4-616, fax 202-522-3283. Children's Growth and Biagio Bossone Ethnic Partition as a Solution Poverty in Rural Guatemala WVPS 2200 * Contact Elena Mekhova, to Ethnic War: An Empirical Critique AMichele Gragnolati room MC9-622, fax 202-522-2031. of the Theoretical Literature WVPS 2193 * Contact Michele . Nicholas Sambanis Gragnolati, room 17-040, fax Industria Capital Accumulation WIPS 2208 * Contact Hedy Sladovich, 202-522-0050. Biagio Bossone room MC2-609, fax 202-522-1154. Does Democracy Facilitate the WIPS 2201 * Contact Elena Mekhova, Does Corruption Relieve Foreign Economic Transition? An Empirical room MC9-622, fax 202-522-2031. Investors of the Burden of Taxes Study of Central and Eastern Europe . . . and Capital Controls? an[d teFreSoitUinSpecilihzation without Regret: Shang-Jin Wei and the Former Soviet Union Transfer Rights, Agricultural WPS 2209 * Contact Hedy Sladovich, jean,-jacques Dethier, Hafez Ghanem, Productivity, and Investment WS20 otc eySaoih and Edda Zoli inoancIndustriandzinvestmnt room MC2-609, fax 202-522-1154. V/PS 2194 * Contact Hafez Ghanem, in an Industrializing Economy Woom H420194, Contact Hafez22-2753Michael R. Carter and Yang Yao The Slippery Slope: Explaining room H4-201, fax 202-522-2753. VWPS 2202 * Contact Maria Fernandez, the Increase in Extreme Poverty Aggregating Governance Indicators room MC3-542, fax 202-522-1151. in Urban Brazil, 1976-96 Daniel Kaufinann, Aart Kraay, Francisco H. G. Ferreira and Pablo Zoido-Lobato'n Market versus Administrative and Ricardo Paes de Barros Reallocation of Agricultural Land in WTPS 2195 ' Contact Diane Bouvet, a Period of Rapid Industrialization DWVPS 2210 * Contact Grace Ilogon, room J3-273, fax 202-334-8350. Michael R. Carer and Yang Yao room MC4-552, fax 202-522-3283. Governance Matters WPS 2203 * Contact Maria Fernandez, Competition Policy, Developing Daniel Kaufmann, Aart Kraay, room MC3-542, fax 202-522-1151. Countries, and the World and PabloZoidoConatDn Corruption under Moral Hazard Trade Organization TVPS 2196 - Contact Diane Bouvet, Gunnar S. Eskelan and Henrik Thiele Bernard Hoekman and Peter Holmes room J3-273, fax 202-334-8350. WIPS 2204 * Contact Hedy V/S S221] - Contact Lili Tabada, Production Sharing in East Asia: Sladovich, room MC2-609, fax W'Qho Does What for Whom, 202-522-1154. Is African Manufacturing and Why? Foreign-Owned Capital Skill-Constrained? Francis Ng and Alexander Yeats and E nen Tariffs Howard Pack and Christina 1'axson V/PS 2197 * Contact Lili and Endogenous Tariffs WPS 2212 * Contact Hedy Sladovich, Tabada, room MC3-333, fax WTS 2205 * Con tact Lili room MC2-609, fax 202-522-1154. 202-522-1159. Tabada, room MC3-333, fax Fiscal Solvency and Sustainability How the Chinese System of Charges 202-522-1159. in Economic Management and Subsidies Affects Pollution Household Childcare Choices and Hinh T Dinh Control Efforts by China's Top Wounsehork Behaviori ussian WITPS 2213 * Contact Manorama Rani, Industrial Polluters Womens Work Behavior in Russia room J11-278, fax 202-473-8179. Michael M. Lokshin Hua Wang and Ming Chen WPS 2206 * Contact Patricia Sader, WPS 2198 * Contact Hua Wang, room MC3-632, fax 202-522-1153. room MC2-626, fax 202-522-3230. 12 World Bank Policy and Research Bulletin October-December 1999  Trade Policy and Market Access The Dynamics of Poverty and Do School Facilities Matter? Issues for Developing Countries: the Effectiveness of Poland's The Case of the Peruvian Social Implications for the Millennium Round Safety Net (1993-96) Fund (FONCODES) Constantine Michalopoulos Wlodzimierz Okrasa Christina Paxson and Norbert Schady WPS 2214 a Contact Lili Tabada, WITS 2221 * Contact Sheila Fallon, WIPS 2229 * Contact Norbert Schady, room MC3-333, fax 202-522-1159. room MC3-558, fax 202-522-1153. room MC8-138, fax 202-522-1557. Implementation of Uruguay Labor Market Integration in the Bankruptcy Reorganization through Round Commitments: Presence of Social Capital Markets: Auction-Based Creditor The Development Challenge Maurice Schiff Ordering by Reducing Debts J. Michael Finger and Philip Schuler WIS 2222 * Contact Lili Tabada, (ACCORD) WPS 2215 * Contact Lili Tabada, room MC3-333, fax 202-522-1159. Donald B. Hauscl room MC3-333, fax 202-522-1159. . . and S. Ramachandran Integrated Financial Supervision: WP'S 2230 * Contact Lili Tsang, room Corruption and Trade Tariffs, Lessons from Northern European MC8-140, fax 202- 522-1784. or a Case for Uniform Tariffs Experience Roberta Gatti Michael Taylor and Alex Fleming What's Behind Mercosur's Common WPS 2216 * Contact Roberta Gatti, W/PS 2223 * Contact Sylvia Torres, External Tariff? room MC3-353, fax 202-522-3518. room H6-326, fax 202-522-0005. Marcelo Olarreaga, Isidro Soloaga, and Alan Winters Border, Border, Wide and Far, Growth Forecasts Using Time Series WPS Winters How We Wonder What You Are and Growth Models WITS 2231 - Contact Liii Tabada, David C. Parsley and Shang-Jin Wei Aart Kraay and George Monokroussos room MC3-333, fax 202-522-1159. WPS 2217 * Contact Hedy Sladovich, WITS 2224 * Contact Rina Bonfield, Market Access Advances and Retreats: room MC2-609, fax 202-522-1154 room MC3-354, fax 202-522-3518. The Uruguay Round and Beyond Who Avoids and Who Escapes How Did Highly Indebted Poor j Michael Finger and from Poverty during the Transition? Countries Become Highly Indebted? Ludger Schuknecht Evidence from Polish Panel Data, Reviewing Two Decades of Debt Relief WIPS 2232 - Contact Lili Tabada, 1993-96 William Easterly room MC3-333,fax 202-522-1159. Wlodzimierz Okrasa WITS 2225 * Contact Kari Labrie, User's Guide to an Early Warning WIPS 2218 * Contact Sheila Fallon, room MC3-456, fax 202-522-1155. System for Macroeconomic Vulner- room MC3-558, fax 202-522-1153. Money, Politics, and a Future for ability in Latin Arnerican Countries Money Polllcs,and aFutur forSantiago Herrera and Con rado Garcia The Effect of the United States' the International Financial System WPiS 2233 * Contact Conrado Garcia Granting Most Favored Nation Michael Klein 2233 -146,fax202-522-2119 Status to Vietnam WITS 2226 * Contact Mina Salehi, roon 18146, fax 202-522-2119. Emiko Fukase and Will Martin room I9-240, fax 202-522-2029. The Green Revolution and the WITS 2219 * Contact Lili Tabada, . Productivity Paradox: Evidence The Sri Lankan Unemployment fo h ninPna room MC3-333, fax 202-522-1159. Problem Revisited from the Indian Punjab A Quantitative Evaluation Martin Rama * Murgai of Vietnam's Accession to WPS 2227 * Contact Sheila Fallon, WITS 2234 - Contact Maria the ASEAN Free Trade Area room MC3-558, fax 202-522-1153. 202-522- i 151. Emiko Fukase and Will Martin FcC inP igy atIl WITS 2220 * Contact Lili Tabada, Foscal Contigency Planning Beyond Capital Ideals: room MC3-33.3, fax 202-522-1159. for Banking Crises Restoring Banking Stability Gerard Caprio Jr. and Patrick Honohan WI'S 2228 * Contact Agnes Yaptenco, WIS 2235 * ContactAgnes Yaptenco, room MC3-446, fax 202-522-1155. room MC3-446 fax 202-522-1155. October-December 1999 World Bank Policy and Research Bulletin 13  Valuing Water for Chinese Industries: Designing Pro-Poor Water and Sewer - A Marginal Productivity Assessment Concessions: Early Lessons from Bolivia Hua Wang and Somik Lall Kristin Komives World Bank W7PS 2236 * Contact Roula Yazigi, WPS 2243 * Contact Mina Salehi, room MC2-533, fax 202-522-3230. room I9-240, fax 202-522-2029. Ref orming Tax Systems: The World True World Income Distribution, i s BGDE= Banak Record in the 1990s 1988 and 1993: First Calculations, Luca Barbone, Ari'ndam Das- Gupta, Based oni Household Surveys Alone Luc De Wulf and Anna Hansson Branko Milanovic Oig e=- Wi9S 2237 * Contact Luca Barbone, WPS 2244 * Contact Patricia Sader, eW room J7-119, fax 202-473-8466. room MC3-556, fax 202-522-1153. A Revicw of the Role and Impact Opportunities for Improving- of Export Processing Zones Environmental Compliance in Mexico Dorsati Madani Susmita Dasgupta / W/DS 2238 * Contact Lili Tabada, WPS 2245 * Contact Yasmin D'Souza, - room MC3 -333, fax 202-522-1159. room MC2-622, fax 202-522-3230.N ~thir~ The EU Factor in the Trade Policies Infrastructure's Contribution of Central European Countries to Aggregate Output a = Bart/omiej Kaminski David Canning W,PS 2239 * Contact Lili Tabada, WPS 2246 * Contact Hedy Sladovich, s i'dRa room MC3-333, fax 202-522-1159. room MC2-609, fax 202-522-1154 The Effects of Land Registration on Does Deposit Insurance Increase c 4o Firnancial Development and Economic Banking System Stability? - ,,li<Srakbar Growth: A Theoretical and An Empirical Investigation ir o Petty Conceptual Framework Asll Demirgiif-Kunt and Enrica d ' Erank E K Byamugisha Detragiache i WPS 2240 * Contact Elisabeth Gelos, WPS 2247 * Contact Kari Labrie, ^; trfe - room MC9-344, fax 202-477-2733. room MC3-456, fax 202-522-1155. How Land Registration Affects Privatization and Regulation of GE - Ra=t Financial Development and Transport Infrastructure in the St4&cD aD a Economic Growth in Thailand 1990s: Successes ... and Bugs to i1 0 En ,,nk F K Byamugisha Fix for the Next Millennium erOsanMkiIOsz WPS 2241 * Contact Elisabeth Antonio Estache Ge/os, room MC9-344, fax 202- WIS 2248 * Contact Gabriela 477-2733. Chenet-Smith, room J3-147, fax ~ KU edxee QBrsPekvc Confronting Competition: 202-334-8350.dee isv$r Investment Response and Argentinas Transport Privatization a, Constraints in Uganda and Re-Regulation: Ups and Downs D t J.2C 2 ema4 Ritva Reinikka andJakob Svensson of a Daring Decade-Long Experience W'PS 2242 * Contact Hedy Sladovich, Antonio Estache, jose' C Carbajo, <2A1d.IfraiQsmas vi room MC2-609, fax 202-522-1154. and Ginio de Russtache,ie'Cir WPS 2249 - Contact Gabriela Chenet-Smith, room J3-147, fax - g i - - - - - 202-334-8350. i 14 World Bank Policy and Research Bulletin October-December 1999  E L E C T R 0 N I C grams are reaching the poor and bene- the completed questionnaires. Because I N F 0 R M A T I 0 N A N D D A T A fiting them. It focuses on three simple questionnaires are scanned as they are indicators of the effectiveness of service submitted from the field, results can The standard household surveys used provision: access, use, and satisfaction. be ready within a month after the to monitor poverty and welfare are In education, for example, access indi- fieldwork is completed. The CWIQ expensive, labor-intensive, and slow to cators include distance to primary and software automatically verifies and deliver results. To design a survey secondary schools, use indicators cleans the data, then produces prepro- instrument that would be easy to include primary and secondary enroll- grammed tables and charts for the implement and quick to produce ment rates, and satisfaction indicators standard results report. results, the World Bank launched a are based on household ratings of ser- T Technically simple. The OMR and study in 1996 with support from vice quality. When repeated, CWIXQ data cleaning and analysis programs UNICEF, the United Nations becomes an effective monitoring tool. used are not technically demanding. Development Programme, and the CWIQ can also provide disaggregated * Economical. A CWIQ survey International Labour Organisation. results that allow monitoring of pro- involves only about half the costs of a This study developed the Core gram effectiveness for target groups. standard household survey, takes Welfare Indicators Questionnaire In addition to basic information on much less time to administer, and (CWIQ). This survey instrument, household members, the core ques- makes smaller demands on scarce ana- which evolved from an earlier model tionnaire covers their health, educa- lytical skills. used in Africa, complements the tion, and employment and the Although fast and easy to imple- Integrated Survey, a more extensive household's assets and amenities. It ment, a CWIQ survey does require questionnaire developed by the Bank also collects simple information on up-front planning and organization of that is customarily used to measure indicators known to be closely corre- resources before it can take off, to poverty in the region (see this column lated with consumption. These indica- ensure no disruptions. Countries are in the July-September 1999 issue). tors are used to calculate an index for advised to begin with a pilot-not The CWIQ survey produces indica- grouping households into poverty only as a demonstration but also as a tors for policymakers and planners to quintiles. In addition, special modules training exercise for the enumerators evaluate the impact of interventions in can be used to collect information on and analysts. The technical assistance the areas where much development specific topics, such as social capital, provided by the Bank as part of the assistance is targeted-such as health, service delivery, and crop forecasting. first national survey includes training education, and sanitation. intended to ensure that by the second Ghana implemented the first Key features of CWIQ round the country has all the skills national CWIQ survey in 1997, and When first using the CWIQ system, a needed. Nigeria and Tanzania have each car- country can go from pilot to reported ried out a CWIQ pilot as a prelude to results in less than a year. In subse- For more information a full-scale national survey in 2000. quent rounds, a national CWIQ sur- A handbook detailing the CWIQ sys- Lesotho, Mozambique, and Uganda vey can produce final results in as little tem and a CD-ROM containing the plan pilot surveys in 2000, and the as three months-thanks to these key handbook, systems specifications, and Gambia and Mauritania have characteristics: programs are available free of charge. requested assistance with pilots. There - Easy to implement. CWIQ is a short For copies of the handbook and CD- is also interest in the CWIQ outside (eight-page) questionnaire with pre- ROM or for more information about Africa. Jordan carried out a CWIQ coded responses that is easy for both CWIQ, contact Tim Marchant at the pilot in 1998, and Brazil and Vietnam respondents and enumerators to World Bank's main address or at have expressed interest in doing so. understand. With fewer than 80 ques- tmarchant@worldbank.org. For infor- tions, the survey can be completed in mation on the data from the Ghana What is CWIQ? 20-40 minutes. survey, contact the Government CWIQ is designed to show whether * Rapid results. Optical mark recogni- Statistician, Ghana Statistical Service, public services and development pro- tion (OMR) scanners are used to read P.O. box 1098, Accra, Ghana. October-December 1999 World Bank Policy and Research Bulletin 15  o T I he World Bank Policy and Research B U L E TI N Buletin is not copyrighted, and may be repro- Bulletin is published four times a year by duced with appropriate source attribution. Alison the Reseach Advisory Staff. Its purpose The World Bank Strong is the consulting editor. For information is to inform the development comrnmuity of the 1818 H Street, NW or complimentary subscriptons, contact Evelyn Bank's policy and research output. 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