Problem setting. Traditional mechanisms and management methods require new strategies for tools, there is an urgent need to reorient to modern management methods, the introduction of digital technologies in management processes to optimize and accelerate them. Creation of modern digital communications, the introduction of omnichannel, automation of standard operations, which increases the productivity of each employee, and in the future – the use of artificial intelligence for processing large data sets and full automation of public services. Modern public administration requires a fundamental rethinking and radical reengineering of management processes to achieve greater efficiency, improve service delivery quality and efficiency, and help increase the level of satisfaction of consumers of public services. Recent research and publications analysis. At the beginning of the 21st century, scholars and practitioners are faced with the need to revise and modernize classical models, concepts, and digital tools of public administration. The issue of digital transformations and reengineering of public administration has been the subject of research by many foreign and Ukrainian scholars, but the scientific literature lacks research on the concepts and mechanisms of digital transformation and reengineering in public administration. The paper objective – elucidation of perspective strategies of digital transformations of public administration, research of concepts and mechanisms of reengineering of service activity of public authorities, and development of offers on modernization of administrative processes. The paper main body. Within the concepts of service-oriented public policy we can define the tasks facing the bodies of public introduction in the process of digitalization of public administration: –increase the efficiency of process management through digital administration; –development of digital interaction with citizens, provision of digital management services. One of the methods of radically improving the quality of local government may be connected with the transition to e-government, reengineering of administrative processes. The vector of reengineering is the introduction of managerial innovations with the use of information and communication technologies, which, in turn, involves the implementation of active actions aimed at replacing the old capabilities of the state body with completely new ones. Currently, there are the following approaches to management: process, system, and situational. The process approach treats the management system as a series of directly interconnected actions, each of which is a process – a management function. The process approach to management is based on the Deming-Schuhart cycle – a model of continuous process improvement, (PDCA cycle: P – Plan, D – Do, C – Check, A – Act). The development of the PDCA cycle with a large number of correlations, with zero deviation, and the use of elements of artificial intelligence should lead to fully automated processes of providing management services by public authorities. The systems approach assumes integrity, which consists of interdependent parts, each of which characterizes the whole, and the organization is considered as a set of interconnected elements, such as people, structure, tasks, technology, and so on. The situational approach is based on the fact that the priority of management methods is determined by the situation. Due to the fact that there are many factors both in the organization and in the external environment, there is no single "best" method of management. Approaches to the management process are implemented through the introduction of management concepts. Business Process Management (BPM) is a concept that aligns an organization's strategy and goals with customer expectations and needs by customizing end-to-end processes. Customer Relationship Management (CRM) is a concept in which the recipient of services is given priority. To optimize management operations and increase organizational efficiency, it is important to combine CRM and BPM technologies. As the core of the CRM system, BPM technology allows you to quickly transform management processes to meet changes in external conditions, giving users immediate access to all the necessary information they need, which significantly speeds up workflows. Advantages of complex application of BPM technology of CRM-system in the field of service activity of public authorities: – modeling, adjustment, and monitoring of processes; – management of unstructured processes; – clear and transparent work processes; – process management in a single environment; – advanced analytics; – fast exchange of information due to integration into a single IT ecosystem; – scalability, security, and mobile access to CRM; – communication between structural units and service recipients. The effectiveness of the CRM solution is achieved by the correct application of the process approach and its close connection with the strategy. The capabilities of the BPM system are the key to continuous improvement of the management model and increase efficiency by combining the efforts of all employees and departments of public authorities. Conclusions of the research. The task of reengineering is to optimize the processes of providing public services. The object of reengineering is administrative processes, their optimization, and improvement, which allow to open and use new opportunities to improve management efficiency. Integrated use of CRM and the concept of BPM realize the main goal of reengineering – the ability to build adaptation systems focused on the production and fulfillment of requests from public service visitors and built processes to ensure they get the maximum result with minimum financial and labor costs. The result of successful reengineering is the improvement of numerical indicators and the quality of services. ; У статті з'ясовано сутність цифрової трансформації в сервісній діяльності органів публічної влади та реінжинірингу адміністративно-управлінських процесів. Визначено завдання концепції сервісно орієнтованої державної політики. Проведено фактологічний аналіз концептуальних стратегій до процесу управління, зокрема процесного, системного та ситуаційного, які реалізуються через концепції управління бізнес-процесами (BPM) та управління взаємовідносинами з клієнтами (CRM). Запропоновано комплексний підхід до використання управлінських концепцій. Розглянуто переваги комплексного використання CRM- та BPM-концепцій для ефективного процесу надання публічних послуг.Ключові слова: публічне управління; сервісна діяльність органів публічної влади; цифрові трансформації; реінжиніринг; CRM-концепція; BPM-концепція.
Cambodia is one of the world's most open economies, sustaining high levels of growth in an environment of relatively weak governance. Emerging from a legacy of genocide and civil conflict, the country has sought to address human and social capital deficits across sectors, weaknesses in public finance, and corruption. Despite improvements in access to basic services, governance constraints persist and may threaten gains from economic integration. Over the 2004-10 period, the Bank's engagement on Governance and Anticorruption (GAC) issues in Cambodia was not defined by a single, overarching priority or entry point (such as core public sector management, natural resource management, or service delivery). Rather, the Bank was opportunistic, opting to support the government's GAC efforts across multiple sectors and institutions. The relevance of this opportunistic approach is judged to be moderately relevant. The Bank's objectives on public financial management (PFM) were highly relevant given Cambodia's nontransparent and weak public expenditure management and limited capacity. The Bank's response to sectoral governance weaknesses such as red tape, inefficiencies, and other forms of rent-seeking in customs is rated modest given the need for the government to implement its World Trade Organization commitments. The Bank's project level engagement is rated as moderately relevant. As a basis for reinstating suspended projects, portfolio-wide measures included the use of an Independent Procurement Agency (IPA) for the International Development Association (IDA) procurements, and the implementation of Good Governance Frameworks (GGF) for all IDA projects.
This impact evaluation reviews the investment climate (IC) reform programs implemented by the World Bank Group (WBG) in Burkina Faso, Liberia, Rwanda, Sierra Leone, and South Sudan. It follows a study carried out in 2011 across the same countries. The purpose of the evaluation is to update, expand, and deepen the initial analysis within the framework of the earlier study, in order to gain a better understanding of the impact and sustainability of the IC reform activities implemented by the WBG. The evaluation covers a total of 25 IC-related projects implemented by the WBG in the five countries since the mid-2000s. The evaluation consists of three main elements, namely: a review of the outcomes achieved by the IC programs; an analysis of how IC reforms translate into impacts that is into tangible benefits for private firms and for the economy as a whole; and an assessment of the sustainability of IC reforms. The result is a significant improvement in the overall quality of the business environment in the five countries. This report is structured as follows: section one gives introduction. Section two provides an overview of the context in which the WBG programs were implemented, with a short presentation of the salient features of the five countries; section three briefly reviews the activities undertaken by each WBG program; section four analyzes the outcomes of the IC reform programs, with a review of the reforms supported, of the influence of these reforms on the business environment, and of the private sectors perceptions of IC reforms; section five reviews in detail the impact of IC reform programs, providing estimates of both direct impacts (cost savings) and indirect impacts (changes in enterprise formation and formalization, investment, and employment); section six analyzes the sustainability of IC reforms, with respect to both current and prospective sustainability and with an analysis of the main factors influencing sustainability; and finally, section seven summarizes the key findings of the evaluation.
In all matters regarding climate change, the modern world presents complex challenges which highlight how investments in infrastructure have as of yet been inconclusive. Th e emission percentages calculated by relevant studies demonstrate the need for long-term investments in infrastructures, to ultimately reduce the impact on the environment and our health. To this end, in alignment with the principles expressed in the Paris Agreement – reducing global warming and incentivising a zero-emission transportation system – and the Sustainable Development Goals (SDGs), these new infrastructures will require a structural change that can be guaranteed by multilateral development banks (MDBs), given their nature, especially within developing countries. 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Glyphosat ist weltweit und auch in Europa der am häufigsten eingesetzte Pflanzenschutzmittel-Wirkstoff. In Deutschland und in der gesamten EU wird darüber diskutiert, ob Glyphosat weiterhin zulassungsfähig ist, aber auch die Notwendigkeit einzelner Anwendungen und der Anwendungsumfang stehen zur Debatte. Um Fragen zum zukünftigen Umgang mit Glyphosatherbiziden zu klären, sind zunächst jedoch weitere Erkenntnisse zum Einsatz, aber auch zur Ertragswirkung notwendig. Ziel der vorliegenden Dissertation war es, zum Glyphosateinsatz Bestimmungsfaktoren und detaillierte Anwendungsmuster zu bestimmen sowie eine Übersicht über Auswirkungen auf den Ertrag von Kulturen im Nicht-GVO-Anbau zu erstellen. Zu diesem Zweck wurde mit einer Landwirte-Befragung ein Datensatz (n = 2026) zum Glyphosateinsatz generiert und ausgewertet, sowie eine Übersicht zu weltweiten Glyphosat-Studien erstellt (n = 6841), die dann auf Beziehungen zu Ertragswirkungen im Nicht-GVO-Anbau analysiert worden sind. Der Fragebogen umfasste 38 Fragekonstrukte bestehend aus betrieblichen Daten, Details zur Glyphosatanwendung sowie fachlichen und persönlichen Einschätzungen. Ein Teil der Umfrage enthielt auch Fragen zur individuellen Einstellung des Teilnehmenden zu Glyphosat. Dabei wurde deutlich, dass die Meinungen zum Nutzen, zur Notwendigkeit und zu Substitutionsmöglichkeiten stark variieren. Ebenso unterscheiden sich auch die Betriebe hinsichtlich des Glyphosateinsatzes. Mittelwertvergleiche, Regressionsanalysen, Strukturgleichungsmodelle und eine Cluster-Analyse wurden dabei zur Analyse angewandt. Während ein Teil der Landwirte im Jahr der Erhebung komplett auf Glyphosat verzichteten, wendeten es andere Betriebe mindestens einmal auf der gesamten Ackerfläche an. Zwischen diesen Extremgruppen gibt es eine ganze Bandbreite an Betriebstypen, die sich anhand verschiedener betrieblicher Parameter unterscheiden und mittels einer Cluster-Analyse zu sieben Gruppen zusammengefasst worden sind. Betriebe mit einem höheren Glyphosateinsatz in den Anwendungsbereichen Vorernte, Stoppel- und Vorsaatbehandlung weisen tendenziell einen niedrigeren Pflugeinsatz, einen niedrigeren Arbeitskräftebesatz und/oder mehr Ackerfläche auf. Betriebe im Cluster mit dem intensivsten Glyphosat-Einsatz werden als "rationalisierte Betriebe" bezeichnet; sie weisen den niedrigsten Arbeitskräftebesatz und im Durchschnitt nur einen geringen Anteil wendender Bodenbearbeitung auf und haben – mehr als alle anderen Cluster – bereits erhebliche Probleme hinsichtlich Minderwirkungen bei selektiven Herbiziden. Es wurde diskutiert, dass diese Betriebstypen am deutlichsten von Reduktionszielen betroffen wären und womöglich sogar ihr Anbaumanagement umstellen müssten. Bestimmungsfaktoren des Glyphosateinsatzes variieren zwischen kulturspezifischen Anwendungsbereichen stark. Jede Anwendung ist unterschiedlich in das jeweilige Betriebsmanagement integriert und weist eigene Besonderheiten auf. Es fällt jedoch auf, dass die Intensität der Raps-Stoppelbehandlung nicht im Zusammenhang mit einer reduzierten Bodenbearbeitung steht. Bei dieser Anwendung steht die Arbeitsökonomie stärker im Vordergrund als bei anderen Anwendungen. Wurzelunkräuter sind weniger als Grund für Glyphosatanwendungen anzusehen als vielmehr Unkrautpopulationen, die mit den übrigen Herbiziden als schwer bekämpfbar angesehen werden. Die betrieblichen Anwendungsverteilungen der kulturspezifischen Glyphosat-Anwendungsbereiche weisen jeweils eine U-Verteilung auf: Jeweils ein großer Anteil verzichtet auf Anwendungen, während ein anderer großer Anteil diese auf der gesamten Kulturfläche appliziert. Jedoch wendet auch ein mehr oder minder hoher Anteil an Landwirten Glyphosat nur auf einzelnen Schlägen oder Teilflächen an. Die Auswertung von 11.900 Peer-Review-Magazinen und die Diskussion von 42 Studien mit Bezug zu Ertragswirkungen hat ergeben, dass für ökonomische Analysen des Glyphosateinsatzes in europäischen Anbausystemen keine validen Aussagen zu Ertragswirkungen in aktuellen Nicht-GVO-Anbausystemen getroffen werden können, da Glyphosat-Ertragswirkungen hinsichtlich der vorhandenen Anwendungsmuster noch nicht hinreichend beschrieben worden sind. Es wird empfohlen, dies nachzuholen, um eindeutige Aussagen über den betriebswirtschaftlichen Nutzen machen zu können, aber auch um eine Entscheidungsgrundlage für Landwirte anzubieten. Während es für Wirkungsstudien noch Forschungsbedarf gibt, liegen basierend auf dieser Arbeit bereits fundierte Erkenntnisse zur Anwendung von Glyphosat vor. Die empirische Analyse dieser Dissertation gibt Anlass zu der Vermutung, dass Glyphosat oftmals auch als Routineanwendung in stark rationalisierten Betriebsabläufen zum Einsatz kommt. Dies gilt insbesondere für die Stoppelanwendungen. Entsprechend den von Betrieb zu Betrieb unterschiedlichen Anwendungsmustern werden die Anpassungskosten im Falle eines Glyphosatverbots auf einigen Betrieben sehr gering ausfallen oder gar nicht vorhanden sein und auf anderen Betrieben sehr groß ausfallen. Einige Betriebe werden ihr Anbaumanagement deutlich umstellen müssen. ; Glyphosate is the most commonly used active ingredient in pesticides in the world. However, in Germany, as in the rest of the European Union, its use is surrounded by controversy: Should its use continue to be approved? Are single applications necessary? If so, how much should be applied? To answer such questions regarding the future handling of glyphosate herbicides, insight is needed into their use and yield impacts. The purpose of this dissertation was to identify the determinants and detailed patterns of glyphosate use and to review its yield impacts in non-GMO arable farming. Data was gathered and analysed from 2,026 farming operations with or without glyphosate use. The growing season 2013/2014 was set as a reference. The questionnaire addressed 38 constructs regarding farm data, details of glyphosate use and professional and personal attitudes towards glyphosate pesticides. This was supported by a literature review (n=6,841 articles) providing an overview of global glyphosate use and yield impacts. The part of the glyphosate use survey containing questions about individual attitudes towards glyphosate use, the need for its use and alternatives to its use identified wide variance among respondents. Similarly, farms vary greatly regarding the intensity of their glyphosate use. Several methods were used to identify and analyse use patterns: means comparisons, regression analyses, structural equation modelling and a cluster analysis. While some of the farms did not use glyphosate at all, others used it at least once on their entire arable area. Between these extreme groups lies a large spectrum of farm types that differ in several operational aspects. In all, seven clusters were identified. Farms with greater glyphosate use in preharvest, postharvest and presowing applications tend to plough less, employ fewer workers per hectare and/or be larger. These farms can be characterized as "rationalized farms"; while they have the smallest workforce and the lowest tillage levels, they also suffer greater herbicide efficacy losses than any other farm type. These farm types would most likely be impacted more than others by any goals set for the reduction of glyphosate use and be forced to reorganize their farm management practices. Determinants of glyphosate use vary greatly since scopes of application tend to be crop-specific. Thus, every application is integrated differently into the operational management of different farms and has its own specific characteristics. However, it stood out that the intense postharvest application in rapeseed production does not result in a great reduction in tillage; instead, this application produced greater effects on worker efficiency than did others. Moreover, perennial weeds are not considered as cogent a reason to use glyphosate as weed populations that are felt to be resistant to other pesticides. The frequency distributions of farms' crop-specific glyphosate use are U-shaped: A large percentage of farms don't apply glyphosate, but, at the same time, a large number apply it on their entire cultivated area. Yet, there are also many farms between these extremes that use glyphosate only site or field specific. An analysis of 11,900 peer-reviewed journals and 42 studies on the yield effects of glyphosate use revealed research gaps. In all, we located 6,841 relevant articles. A cluster analysis showed that a large part of the research was related to glyphosate-resistant cropping systems and toxicological topics. Information on glyphosate yield effects in non-GMO cropping systems is also available—albeit rarely. Sixty-seven papers addressed the yield or weed control effects of postharvest, presowing or preharvest treatment, while only 42 addressed yield effects. Of these 42 studies, four had been conducted in Europe. Considering the highly diverse glyphosate application patterns, after examining the results of all 42 articles, we concluded that there is no scientific basis for published economic calculations on glyphosate yield benefits. To cover current cropping systems adequately, future studies need to be adapted to Europe-specific arable farming conditions. Although research on the yield efficacy of glyphosate is still needed, based on findings of this dissertation it is clear that well-substantiated information regarding the use of glyphosate is already available. The empirical analysis in this dissertation shows that there are reasons for the assumption that glyphosate is often used as part of a routine process. The farm-specific patterns we identified clearly indicate the farm-specific adjustment costs that will result should glyphosate be banned.
This thesis analyses the foundations and the evolution of the water economy and management in Lebanon by emphasizing the legal, institutional and political frameworks. The study uses a mixed approach combining a qualitative methodology, through surveys, interviews and documentation and a quantitative approach using econometric modeling. By composing our conceptual framework, we seek to define the political economy of the resource in Lebanon and the ties linking water use to land tenure structures. The study is composed of five chapters. Our first chapter reviews the economic literature dealing with the water value and scarcity and addresses a criticism concerning globalized paradigms, mainly, river basin management, good governance and the Integrated Water Resource Management (IWRM). Going beyond those theories and using a historic-materialist approach, we propose our analytical framework of a "waterscape" combining the hydraulic societies theory developed by Karl Wittfogel and the "moments" approach of David Harvey. Our second chapter explores, by adopting a chronological approach over a long period, the evolution of the legal and the institutional structures of water management in Lebanon. This chapter covers four centuries of the Levant territories under the Ottoman Empire, followed by the French mandate over Lebanon and, finally, the national construction phase between the independence and country's civil war. Our analysis seeks to understand the historical foundations of the relationship between land tenure regimes and social power during those periods. We also develop in this chapter the pilars that drove the Lebanese hydraulic mission in order to present an interpretation of the dominant discourse in the water management. Our third chapter reviews the socio-spatial characteristics of the water and wastewater infrastructures during the reconstruction period. We extend our analysis to depict the institutional fragmentation characterizing the water public authorities in Lebanon. We emphasize on the water policies undertaken in the country during this recent period under structural adjustment and neoliberal paradigms, mainly, the adoption of the IWRM principles by the Lebanese government and the ground preparation to Public-Private Partnerships. The fourth chapter offers a public good model analyzing the concerns behind the allocation of water projects during the last two decades. Econometric results clearly approve our hypothesis that the distributive politics are solely driven by partisanship concerns during this period with no consideration about socio-economical and environmental features of regions. The fifth chapter develops the links of water use to the Lebanese agricultural economy in order to understand the main drivers of irrigation. We shed the light on the privileges of big landowner in accessing to subsidies following a water intensive production destined to the Gulf countries. This chapter detects the link between country's food system and water by presenting the virtual water balance and food water footprint. Finally, the chapter verifies the state of water in the liberalization process of the country by using a gravity model. From our reading of the socio-natural process of water in Lebanon, our results show that the modes of use, production and appropriation of the resource in the country are produced by a close relation between land property and power, an inherited link from the political history of Lebanon maintained by the confessional system. ; Cette thèse analyse les fondements et l'évolution de l'économie et de la gestion de l'eau au Liban dans ses cadres juridiques, institutionnels et politiques. L'étude s'appuie sur une méthodologie mixte, à la fois qualitative, à travers des études de terrains et celle de la littérature existante, et quantitative, en utilisant des outils d'analyse économétrique. Nous avons pris comme grille de lecture les liens entre les modes de production et d'usage de l'eau, la nature de la propriété foncière et sa structure dans une démarche d'économie politique. L'étude se compose de cinq chapitres. Notre premier chapitre, élaboré à partir d'une lecture critique de la littérature économique qui traite de la valeur de la ressource et de sa rareté, remet en cause la notion de crise de l'eau. Il propose une critique des paradigmes globalisés, notamment la gestion par bassin et la bonne gouvernance, qui sont à la base de la notion de Gestion Intégrée des Ressources en Eau (GIRE) d'inspiration libérale. En dépassant ces théories à l'aide d'une approche historico-matérialiste, ce chapitre construit notre grille de lecture d'un "paysage de l'eau" en mobilisant la théorie de Wittfogel des sociétés hydrauliques et la théorie des "moments" développée par David Harvey. Le deuxième chapitre suit chronologiquement et sur un temps long l'évolution juridico-institutionnelle de la gestion de la ressource depuis l'Empire ottoman et le mandat français sur le Liban jusqu'à la construction nationale entre l'indépendance et la guerre civile libanaise. Notre analyse reconstitue les fondements historiques de la relation du pouvoir aux régimes fonciers durant ces périodes. Nous développons en particulier les éléments qui sont à la source de la formulation de la vision de la mission hydraulique libanaise afin de présenter une interprétation de la relation de l'Etat à l'eau et le discours dominant de la gestion de la ressource. Le troisième chapitre expose les caractéristiques socio-spatiales du service d'eau potable et d'assainissement dans la phase de reconstruction. Il analyse la nature de la fragmentation institutionnelle des autorités publiques ainsi que la politique de l'eau engendrée par l'ajustement structurel et par les paradigmes néolibéraux, notamment, l'adoption des principes de la GIRE par le gouvernement libanais et la préparation du terrain pour des contrats de Partenariat Public-Privé. Le quatrième chapitre propose un modèle formalisé d'économie publique qui nous informe par ses résultats économétriques sur les critères d'allocation des projets de l'eau durant les deux dernières décennies. Les résultats économétriques de ce modèle vont confirmer notre hypothèse de base en montrant que seule la distance politique apparaît comme facteur décisionnel dans l'allocation des fonds aux régions, sans prise en compte de leurs caractéristiques socio-économiques et environnementales. Le cinquième chapitre étudie la question de l'irrigation et sa place dans les politiques agricoles du pays. Dans le fil de notre analyse sur la relation du pouvoir à l'eau, nous revenons sur les privilèges des grands propriétaires terriens dans l'accès aux subventions pour une production intensive en eau à destination des pays du Golfe. Ce chapitre pose la relation de l'eau au système alimentaire du pays en exposant le commerce et l'empreinte en eau virtuelle du pays. Finalement, nous utilisons un modèle de gravité commercial pour analyser la place de l'eau dans le processus de libéralisation du marché agro-alimentaire du pays. En conclusion, notre lecture de l'évolution du processus socio-naturel du paysage de l'eau confirme que les modes de production, d'usage et d'appropriation de la ressource hydrique au Liban sont le produit d'une relation étroite entre la propriété foncière et le pouvoir, héritée de l'histoire politique du pays et maintenue par son système confessionnel.
The purpose of the paper is to present a more granular view of such projects through the in-depth focus on a limited number of case studies, with a view to understanding what factors in the design of such lending have helped achieve objectives of expanded access, and what forms of interventions may have been less successful. It examines the nature of Bank lending vehicles, the partnering borrower institutions, the country environments in which its loans were extended, as well as broader elements of good practice that make for loan success. It examines the beneficiaries targeted and results achieved. It aims to draws lessons that suggest what factors could lead to success or failure in Bank operations focused on financial access. The remainder of the paper is organized as follows: section two briefly describes the set of the Bank s projects selected for detailed review. Sections three to six contain the core findings of the review. Section 3 focuses on alternative forms of borrower institutions that have served as vehicles for Bank projects, particularly, public sector banks, apex bank structures that include the private sector, rural banks, nonbanks, non-governmental organizations (NGOs) and microfinance institutions, in terms of the degree to which the Bank has been able to successfully partner with such institutions to expand financial access. It also looks at alternative forms of Bank loan design, policy-based loans, investment loans and lines of credit, Learning and Innovation Loans (LILs), matching grants, technical assistance and combinations thereof, and reviews evidence on the role of loan structure (including partnerships with other donors/lenders) and project success. Section four considers the effect of the broader business environment, in terms of financial regulation. Section five reviews elements of good practice that have contributed to success in lending that could be applicable to loans with any objective, and examines their application in the present context. Section six tries to construct a bottom line, reviewing available evidence on outcomes and impact; especially in terms of the ultimate beneficiaries reached. Section seven, the final section, summarizes the main messages emerging from the review and concludes with observations about ways forward.
The international business environment is still changing dramatically and, although international growth may introduce added complexity it may be unavoidable for small and medium-sized enterprises (SMEs) mainly due to the increasing globalization of markets (Levitt 1983) and industries (Yip 2003). In the face of rapid globalization, SMEs are a vital part of the economic systems of both emerging and developed countries. As Veloso (1991) points out, this type of companies may be an important organ for increasing the level of competitiveness of emerging markets. Some studies, for example, Yasuf (2001), go to the extent of suggesting that growth and employment in developing countries depend on the fate of SMEs. The incentive and the legal structures within which firms must operate have been drastically altered. SMEs are no longer protected from foreign competition and local buyers and suppliers are becoming more sophisticated. To compete effectively, SMEs must adapt and reshape themselves to facilitate adjustments and enhance learning for their growth and economic development. This article provides a typology to explain the degree of internationalization of SMEs. At one extreme is tangible internationalization, which is short-term and depends on macro and microeconomics factors exogenous to firms; at the other is a combination of tangible and intangible internationalization, which implies a strong commitment by firms to become competitive at international levels.I argue that different forces have forced the internationalization not only of firms, but also of markets, so that SMEs can become global without a physical presence in foreign markets. Furthermore, it may be necessary for these companies to become global if they are to remain competitive in their local markets. As a result of this paradigm shift, internationalization is based not only on geographical aspects, which are closely related to firm internationalization, but also on intangible considerations, which are closely related to market internationalization.Tangible internationalization is a restricted approach defined as a physical presence in a foreign market; it consists mainly of foreign sales, foreign direct investment (FDI), physical presence in foreign markets, and foreign suppliers. It fluctuates with exchange rates, costs of inputs, and other resource endowments that are tied to a particular geographic location. On the other hand, intangible internationalization implies a change in the comprehensive approach to the way firms should reconfigure, develop and secure resources. Intangible internationalization requires facilitating learning at all levels of a firm to increase the stock of knowledge, and, therefore, to improve flexibility on the production side and increase the likelihood of developing new resources and processes, thus enhancing the firm's critical invisible assets (Itami and Roehl 1987). An SME should aim for both in order to take advantage of a physical presence in foreign markets and provide constant incentives to facilitate learning and new organizational capabilities and processes. Tangible internationalization is a short-term expansion in foreign markets because it takes advantage of temporary macro- and microeconomics conditions; it does not require changes at the firm level. On the other hand, a combination of intangible and tangible internationalization has a higher probability to be sustainable in the long term and mostly depends on the firm's actions to meet international standards.This article emphasizes 5 crucial aspects of that managers need to be aware of: I. A matter of having an strategic plan II. An internal perspective of the firm III.The need of expanding the knowledge bases of SMEs IV.How to access and secure resources: networks V.The entrepreneurial aspectsI. A Matter of Having an Strategic PlanWhile firms have an important degree of freedom to make their own decisions, the effect of the environment cannot be discounted. This matter becomes critically important in the context of emerging economies because firms are not only facing changes in the structure of the industry in which they operate, but also in the surrounding and institutional environments. To be aware of the different courses of action available, decision makers must understand all the pro-market reforms, not just those that most affect their own industry. According to Weick (1995), the strategic decisions that managers make depend on their cognitive structures and how they make sense of the environment. Managers need to understand any intended change in a way that makes sense or fits an interpretative schema or system of meaning (Bartunek 1984). Andrews (1980) compares the role of the owner-manager to an architect who is in charge of doing the synthesis. Senior managers have the role of analyzing, interpreting, and making sense of clues so as to formulate and implement strategies. Senior managers should act as catalysts to understand and create new interpretative frameworks that provide purpose and direction to the members of the organization (Westley 1990).Laying a Formal Foundation: Making the Implicit Explicit The fact that SMEs have inadequate organizational structures and managerial expertise is a real problem in a changing environment. SMEs do not have the same level of support to increase their competitiveness, and given the lack of managerial expertise, building an adequate structure is not a straightforward process, even though it is a central one. Formalizing routines and processes within firms to make them less dependent on a specific individual is key. This is an important concern because SMEs not only have a less highly developed structure, but their fate is closely linked to one or a few individuals who posses knowledge or resources that have not been made explicit to the rest of the firm.Nevertheless, in a changing environment managers need to be proactive and to rethink their approaches regarding the future activities of their firms. A mere replication of previous strategies may no longer be a valid option when firms are competing in the international arena. The future can be imagined and enacted and that companies must be capable of fundamentally reconciling themselves by regenerating their core competencies and reinventing their industry. The role of managers is not to plan for the future, but to manage the process of learning and to be open to the possibility that new strategies can emerge.II. Analyzing the Firm's ResourcesAn analytical examination of the resources of a firm may help to develop an understanding not only of possible short-run business strategies, but also of future diversifications (Montgomery and Wernerfelt, 1988), growth strategies (Penrose, 1959), and sustainability of long-term rents (Rumelt, 1984). SMEs can compete in the international arena, but they will face international competition from foreign SMEs as well as from multinational enterprises (MNEs). Focusing only on product-market strategies is not enough; instead, the long-term survival of a firm depends on the characteristics and endowment of its resources, which should be valuable and difficult to imitate (Mahoney and Pandian 1992; Grant 1991; Amit and Schoemaker 1993). To be able to compete, the manager-owners of SMEs must know the internal resources and capabilities of their companies. As Andrews (1980: 18-19) suggested, a firm should make its strategic plans "preferably in a way that focuses resources to convert distinctive competence into competitive advantage."Firms are a bundle of different kinds of resources and a set of commitments to certain technologies, human resources, processes, and know-how that manager-owners marshal. This issue is particularly important to the present study because it is not unusual that are controlled, managed, and run by one or a small group of individuals that have a deep, but tacit, knowledge of the firm. What is important is a clear identification—not just a vague idea—of the different resources on which a firm can depend.How to Reconfigure a Firm's Resources? Capabilities exist when two or more resources are combined to achieve a goal and they "emphasizes the key role of strategic management in appropriately adapting, integrating and reconfiguring the internal and external organization skills, resources, and functional competences to match the requirements of changing environment" (Teece et al. 1997: 515). It is important to note that the relative endowment of firms may not necessarily relate to their financial performance because "only the service that the resource can render and not the resources themselves provide inputs into the production process" (Penrose 1972: 25). It is the deployment of a combination of those services that are critical to the rent generation of the firm. Firms need to exploit the existing firm-specific capabilities and also develop new ones (Penrose 1959; Teece 1982; Wernerfelt 1984) to compete internationally and to grow. Over time, SMEs have seen the nature of their rents change; we should expect a shift from Ricardian to Schumpeterian rents. A company may not have better resources, but achieve rents because it makes better use of its resources (Penrose 1959). Rents depend not only on the structure of the resources, but also on the ability of firms to reconfigure and transform those resources. The above discussion leads to the formation of the following hypotheses:III. The Need of Expanding the Knowledge Bases of SMEsThe capacity to exploit a new set of opportunities depends partly on the strategic decisions made by managers. In some cases, these opportunities require at least a reconfiguration of the activities of the firm, but more often, they require the incorporation of new resources and, especially, the introduction of new processes.Firms are as systems of purposeful actions engaging in economic activities to achieve objectives, therefore, they must learn adapt and survive in a complex environment. Organizational learning is the process by which firms can cope with uncertainty and environmental complexity, and their efficiency depends on learning how the environment is changing and then adapting to those changes (March and Olsen, 1976).SMEs need to enhance their learning in two different aspects. First, internal knowledge should be coded and made available to selected members in the company. The manager-owner is knowledgeable about almost all aspects of the business (Mintzberg 1979), and his or her knowledge is personal in the sense that it is located in the mind and not always encoded or available to the rest of the firm. Routines should be created in order to secure the long-term existence of the firm because routines capture the experiential lessons and make that knowledge obtainable by the members of the organization that were not part of the history of the company (Levitt and March 1988).The second way SMEs need to enhance their learning is to make changes in their knowledge base. When socio-economic environments change, firms need to assess the change in order to reformulate how they react to new incentives. The first step is developing a capability to understand the new dynamics. When regulatory and competitive conditions change rapidly, persistence in the same routines can be hazardous because managers and employees use organizational memory or knowledge to make decisions and to formulate the present strategy of the firm.The effectiveness of decisions taken by an SME is greatly influenced by its knowledge base which, in turn, is the result of learning processes that are no longer applicable and may be misleading. Changes in the knowledge base are probably requisite for any firms competing in an industry with tradable products. Supporting infrastructure and routines may prove essential to increase the learning pace and to effectively integrate the new knowledge and reduce the inertia due to outdated knowledge.IV. How to Access and Secure Resources: NetworksSMEs, compared to larger firms, face major challenges in terms of securing and updating resources. Where internal resources are important to accounting for a firm's performance (Gnyawali and Madhavan, 2001), resources also can be secured within networks that may allow firms to be competitive locally and internationally. Increasingly, networking is seen as a primarily means of rising required resources. Resources, such as information, equipment, and personnel, can be exchanged in networks because of relationships between. Networks are important instruments to ease the constraints facing SMEs in terms of access to: a) capital markets to obtain long-term finance both locally and internationally, b) narrow and highly regulated labor markets, c) information and technologies, d) inefficient tax codes, and e) highly bureaucratic and expansive legal procedures. SMEs may be part of a network not only because it may find complementary resources, but also because owners and managers may have friendship ties with other owners and mangers. These non-economic reasons may be as important as economic ones.A Particular Kind of Network: Industry Clusters An extensive literature exists on the topic of industry clusters. Ricardo's "comparative advantages" can be considered as a pioneering concept of industrial clusters; and Marshall's exposition about externalities is based on industrial localization. Industrial clusters are characterized by having extensive interfirm exchanges and an advantageous environment to pursue business activities. Marshall (1961) argues that industry localization may be an important factor because a) it creates a market for workers with certain industry-specific skills, b) it promotes production and exchange of non-tradable specialized input, and c) firms may take advantage of informational spillovers. Krugman (1991) points out that given the existence of market imperfection, pecuniary externalities may also play an important role in determining the concentration of industry in a specific geographic location. Pouder and St. John (1996) argue that clustered firms have a greater legitimacy than firms outside a cluster. Clusters can provide a critical mass to counterbalance the political influence of large firms and to increase the pressure for investments that affect the productivity of the cluster. Furthermore, competition within clusters increases productivity and new firm development (Porter 1998).V. The Entrepreneurial AspectsIntangible internationalization requires facilitating learning by its employees in order to constantly transform the firm. Implementing mechanisms to expand the knowledge base and to diffuse information should allow SMEs to increase their capacity to develop new goods and services, and to compete in new markets. Key characteristics of this type of internationalization are common interests, trust and openness that allow employees to challenge assumptions. Intangible internationalization is a more difficult international expansion, but it provides sustainable competitive advantages. Consequently, SMEs would become competitive by reducing their costs, introducing new products and expanding their potential markets.It is not possible to engage in tangible internationalization without having a minimum level of intangible internationalization or being competitive without some degree of valuable, rare, in-imitable, non-substitutable resources (Barney 1991). SMEs should aim for both types of internalization in order to take advantage of physical presence in foreign markets and constantly provide the incentives to facilitate learning, new organizational capabilities and processes.Firms have different combinations of internationalization. In order to analyze how SMEs can take advantage of both tangible and intangible internationalization, the foundation of the potential competitive advantages need to be identified. Therefore, it is crucial to understand how firms deliver products that have value for customers, but also to understand what makes these firms different from the rest (Hall 1998). I argue that there are three major categories of differential that have a strong impact on the nature of internationalization of SMEs. The first is called firm differential, and includes a) organizational (team level), b) managerial (individual level), c) physical endowment and d) technological capabilities differentials. The second category is based on the home country characteristics and it is called country differential. The final category,market differential, takes into consideration the specific features of local markets and industries. These differentials deeply influence the role of owner-manager. There are three basic approaches that a SME can adopt while anticipating and responding to the needs of its customers. The first one is the approach of the Schumpeterian entrepreneur (Schumpeter, 1934), a leader who breaks away from routine and introduces either new goods/services or new production processes for existing goods/services. The second one is related to Porter's (1980) concept of cost leadership even though Porter studied larger firms from developed countries. The last style of owner-manager is the Kirznerian entrepreneur, who is a person alert to opportunities (see figure 1). This type of role implies that the owner-manager acts as a broker in order to take advantage of over-optimistic or over-pessimistic reactions of economic agents (Kirzner 1973); therefore, the owner-manager will act "in regard to the changes occurring in the data of the markets" (Mises 1949: 255).ConclusionIn the business literature, internationalization involvement usually results from one of two factors: a) the firm possesses some monopolistic advantage that it can use in another country, or b) the host country owns resources that are valuable to the foreign firm. While these reasons may be necessary and sufficient conditions for larger companies, is not necessarily the case for SMEs whom have no option but to internationalization.Those two factors do not necessarily apply to SMEs because they need to become international even if they do not compete in international markets. The average level of competitiveness of SMEs is below that of multinational enterprises. 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Policy ArticleWorking Paper 2618, the World Bank Yip, G. (2003). Total Global Strategy II. Prentice Hall, Upper Saddle River, New Jersey.Sobre el autorCoordinador Académico de Finanzas FACS, Universidad ORT Uruguay
Moldova has suffered over the last two decades from rising poverty, territorial secession, armed conflict, and the spillover effects of a regional financial crisis, with declining population size and life expectancy, and an economy approximately one-half of what it was in 1990. The return of the Moldovan Communist Party (PCRM), which won two major elections after 2001, contributed to increasing centralization of governmental authority along with a reform agenda that emphasized greater state control over the economy, fiscal support to state enterprises and collective farms, land consolidation, economic protectionism, and the tolerance of monopolies in industry and energy. At the same time, the government has increased social expenditures, and taken major steps to improve public financial management. Bank engagement was moderately effective at the country and project levels, and substantially effective at the sector level. There was progress in several aspects of public financial management (PFM). Regulatory streamlining has reduced costs to business, although resistance to civil service reform has left much work to be done. The Bank has also helped achieve progress on Governance and Anticorruption (GAC) issues in primary education, roads, and private sector development. Education progress is highly uneven across regions, for example, overweight trucks continue to tear up roads, and private investment is not enough to make a dent in high unemployment. A graduated approach to country systems and road sector technical audits help address GAC issues at the project level. The overall impact of GAC strategy implementation was moderate. The GAC committees set up at the regional and sectoral Bank department levels are particularly useful mechanisms for disseminating practices from the GAC Council. Staff has been proactive in using Country Governance and Anticorruption (CGAC) resources. However, three applications for window one funding were not approved, reducing the ability of this small program to seize opportunities.
A worldwide financial crisis of enormous magnitude continues to unfold rapidly. Unlike other crises in recent decades, the current episode is rooted in industrial countries' financial systems and is affecting low-income and middle-income countries (MICs) alike. Defaults on securitized sub-prime mortgages as a real estate market bubble burst led to failures or near-failures of several large financial institutions and a collapse of inter-bank and commercial paper markets. A tightening of credit, combined with declining consumer confidence, has brought on worldwide recession with growing unemployment, and many fear that the downturn will be severe and protracted. At the same time, the rapidly multiplying signs of contraction are prompting strong responses, including fiscal stimulus packages and reductions in benchmark lending rates, on the part of several of the affected developed countries. The Bank Group is well placed to help mitigate the impact of the current crisis with financing and advisory services, and its clients are already requesting increased support. A rapid, high-quality response that combines financial and advisory support can do much to ease the inevitable ramifications of the crisis. Lessons from evaluations of previous Bank Group responses to past crises can help inform the response to the current crisis in order to increase its effectiveness.
This study provides an overview of Arab official development assistance (ODA) over the past four decades. Trends in volume, composition, and direction are discussed in chapter two and the institutional framework is discussed in chapter three. Over 90 percent of Arab development assistance is provided by three countries: the Kingdom of Saudi Arabia (KSA), Kuwait, and the United Arab Emirates (UAE).
South Africa has rapidly reduced trade barriers since the end of Apartheid, yet agricultural production and exports have remained sluggish. Also, poverty and unemployment have risen and become increasingly concentrated in rural areas. This paper examines the extent to which remaining price distortions, both domestic and foreign, are contributing to the underperformance of the agricultural sector vis-a-vis the rest of the economy. The author draws on a computable general equilibrium (CGE) and micro-simulation model of South Africa that is linked to the results of a global trade model. This framework is used to examine the effects of eliminating global and domestic price distortions. Model results indicate that South Africa's agricultural sector currently benefits from global price distortions, and that removing these will create more jobs for lower-skilled workers, thereby reducing income inequality and poverty. The author also fined that South Africa's own policies are biased against agriculture and that removing domestic distortions will raise agricultural production. Job losses in nonagricultural sectors will be outweighed by job creation in agriculture, such that overall employment rises and poverty falls. Overall, the findings suggest that South Africa's own policies are more damaging to its welfare, poverty and inequality than distortionary policies in the rest of the world. Existing national price distortions may thus explain some of the poor performance of South Africa's agricultural sector and rural development.
The focus of this paper is on the institutions outside the executive branch that include supreme audit institutions, legislative oversight bodies (such as parliamentary public accounts and budget committees, and ombudsmen), related independent bodies, and civil society organizations. Through their support for accountability, donor countries and international financial institutions seek to help countries: promote voice and accountability as an intrinsic human right, and improve development outcomes in terms of poverty reduction, sustainable development. The report is organized as: first, provide a brief literature review of research on accountability, and how donors and other actors can work to improve it, including a review of the experience of other bilateral and multilateral donors in supporting domestic accountability through their policies, strategies, and behaviors as well as through direct support to accountability actors and systems. Second, briefly review the guidance prepared for Bank staff toward enhancing accountability. Third, review some examples of the Bank's experience in supporting domestic accountability. Finally, we present some conclusions and accountability-related questions for further analysis.