Many firms in the developing world --
including a majority of micro, small, and medium enterprises
-- operate in the informal economy. The informal firms face
a variety of constraints, making it harder for them to do
business and grow. Lack of access to finance is often cited
as the biggest operational constraint these firms face. This
paper documents the use of finance and financing patterns of
informal firms, highlights differences between use of

Fragile and conflict-affected states (FCS) have become an important focus of World Bank Group assistance in recent years as recognition of the linkages between fragility, conflict, violence, and poverty has grown. Addressing issues of recurring conflict and political violence and helping build legitimate and accountable state institutions are central to the Bank Group's poverty reduction mission. This evaluation assesses the relevance and effectiveness of World Bank Group country strategies and assistance programs to FCS.

The forestry sector in Moldova faces
significant governance and sustainability challenges. The
insufficient level of forest coverage in Moldova has a
serious impact on environment and overall economic growth in
the country. The situation is exacerbated by the reportedly
intense pressure on forest resources exerted by the human
factor. Illegal logging and grazing are considered as
significant factors that contribute to forest loss. There is

Bureaucratic reform is a priority of
donor organizations, including the World Bank, but is
notoriously difficult to implement. In many countries,
politicians have little interest in the basic financial and
personnel management systems that are essential to political
oversight of bureaucratic performance. To explain this, this
paper presents a new perspective on the political economy of
bureaucracy. Politicians in some countries belong to parties

This paper contributes to the
long-standing debate on the merits of decentralized
beneficiary targeting in the administration of development
programs, focusing on the large-scale Malawi Farm Input
Subsidy Program. Nationally-representative household survey
data are used to systematically analyze the decentralized
targeting performance of the program during the 2009-2010
agricultural season. The analysis begins with a standard

After long suffering from benign neglect
if not outright contempt, industrial policy is almost
fashionable again. The global financial and economic crisis
known as the Great Recession has forced researchers and
policy makers to confront the reality that market forces
alone generally do not lead to (constrained)
Pareto-efficient outcomes. Many important national and
global policy objectives (equality of opportunity for all

Recent economic and political
developments have highlighted a challenge shared across the
Arab region of generating employment, promoting inclusive
growth, and improving competitiveness. In the short run,
weakened macroeconomic fundamentals in the developing
economies of the Middle East and North Africa are a key
challenge. The region's main challenge is to achieve
sustainable growth that delivers the quantity and quality of

This report assesses the challenges and
opportunities for the development of the Khatlon oblast in
Tajikistan. The report argues that the rise in the strategic
significance of Khatlon must be matched by responses in
public policy and a strong upturn in private investment to
strengthen economic prospects. The report identifies four
key reform imperatives for stimulating growth in the oblast.
These are: (i) promoting cities and internal connectivity to

In the standard model of corruption, the
rich are more likely to pay bribes for their children's
education, reflecting higher ability to pay. This prediction
is, however, driven by the assumption that the probability
of punishment for bribe-taking is invariant across
households. In many developing countries lacking in rule of
law, this assumption is untenable, because the enforcement
of law is not impersonal or unbiased and the poor have

This paper uses data from a large survey
of Chinese firms to investigate whether local government
efforts to facilitate market development improve firm
efficiency. Both government provision of information about
products, markets, and innovation and government assistance
in arranging loans are positively associated with firm
efficiency. Those private firms with weak access to and
knowledge of financial, input, and product markets benefit

Amidst all the hoopla about China's
rise, it is useful to remember that China is a developing
country whose transition to a market economy is not yet
complete, with institution building still underway. The
uneven pace of progress is reflected in the state of its
public sector, but in some respects, China s public sector
looks formidable. Most often mentioned is the government s
treasure chest of US$3 trillion in foreign reserves. Even

There is now broad consensus among
policymakers that social protection is a powerful way to
fight poverty and promote inclusive growth. This
international consensus is most clearly articulated in the
African Union's Social Policy Framework (SPF), which
was endorsed by all African heads of state in 2009. The SPF
explains that social protection includes 'social
security measures and furthering income security; and also