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APPROVED ; This thesis, empirically analyses the role of cultural aspects in accounting and finance disciplines from diverse perspectives. It is made up of three distinct research papers. The first paper (chapter 4) primarily investigates the impact of sociocultural factors in underpinning early accounting thought in an ancient civilization (Ceylon-presently known as Sri Lanka). The next two papers maintain cultural aspects in the limelight but shift the focus to the modern corporate world. Precisely, the second paper (chapter 5) examines the role of Chief Executive Officer's (CEO) cultural values in the firm leverage decision. The third paper (chapter 6) extends the work of chapter 5 and proposes that a firm does not associate with only a single culture, which has been the conventional research focus, but that firms operate with a multiplicity of cultures. Therefore chapter 6 empirically analyses the impact of cultural differences among the CEO, board of directors and stakeholders in a firm, on determining its idiosyncratic risk. Therefore, this thesis emphasizes the impact of culture on various accounting and finance aspects from a context ranging from antiquity to modern times. Another notable feature is that chapters 5 and 6 of this thesis, transcend the previous common focus of firm nationality based on country of origin and study cultural influences on corporate decision-making at a granular level, i.e. by examining the cultural values of the key players in a firm (e.g. the CEO, board of directors, stakeholders). Overall, it contributes to the existing literature on the impact of culture in Accounting and Finance outcomes. Chapter 4 goes back in time to the 1st-2nd centuries A.D. in ancient Ceylon (presently Sri Lanka) and employs content analysis method to study the English translations of 122 lithic and other inscriptions during the period from 1st century A.D. to the 16th century A.D. The study refers to an array of accounting and non-accounting practices in the ancient days and finds the existence of well-articulated forms of 'kingship accounting' and 'Buddhist temple accounting' practices that were engraved in rock walls or formations in ancient Ceylon. Furthermore this paper sheds light on the existence of cultural, socio-economic, political and technological infrastructure that underpinned the early accounting system, with special reference to the sociocultural landscape in ancient Ceylon that was largely governed by Buddhist philosophies. The study reveals that sociocultural factors exerted a dual impact, i.e. direct and indirect, on early accounting thought. The sociocultural factors that compelled accounting practices to be undertaken in ancient Buddhist monasteries signifies the direct impact, whilst the indirect impact encompasses the role of Buddhist cultural values in shaping the ancient political, technological (literacy, numerical technology and coinage) and economic landscape, which in turn underpinned early accounting thought. This study is unique as it brings to the fore, the influence of socio-cultural factors that prevailed during the ancient era, in ensuring the continuation of early accounting practices. Following a thorough literature review in a Ceylonese context, the researcher believes that this is among the first attempts to do so. Chapter 5 (and subsequently chapter 6) focuses on cultural implications in a modern corporate setting. Chapter 5, in particular, focuses on the influence of CEO's cultural values on the firm leverage decision. It is well-known that debt can mitigate agency problems between managers and stockholders, by minimizing free cash-flows. However, the implicit factors that might motivate a manager to voluntarily choose debt discipline is barely researched. Chapter 5, therefore, focuses on managerial traits conditioned by national culture and their impact on firm leverage decision. This study is novel as it transcends the previous conventional emphasis on a firms' nationality on the leverage decision by focusing on the CEO's cultural origin and proposes that national cultural values of CEOs distort their perception of costs and benefits of debt. In addition to testing the association between CEO culture and firm leverage, the model is extended to closely examine the same, given three scenarios, i.e. when the existing firm leverage is low, moderate and high. By scrutinizing a sample of 594 CEOs, originating from 14 different nationalities, serving 317 Fortune 500 firms in the U.S., during 2000 to 2015 and by employing quantile panel regression with instrumental variables, the study reveals that high mastery CEOs, unknowingly, are in the pursuit of a target capital structure whilst highly embedded CEOs choose to borrow, irrespective of the current firm leverage. Apparently, high mastery CEOs make capital structure decisions that are more in the interest of shareholders, while the capital structure decisions of highly embedded CEOs might be detrimental to the firm. A direct link between cultural values and leverage, has been detected and confirmed via an analysis of a major exogenous intervention (global financial crisis 2007/08) to the system. By using a sample of non-US CEOs, the study reveals that cultural values are portable. Results remain robust to alternative specifications and procedures to mitigate endogeneity concerns. Academically the findings of this paper open up new paradigms that need to be considered in the area of agency conflicts and monitoring costs. Chapter 6 extends the previous work in Chapter 5 and proposes that a firm does not associate with just a single culture but operates with a multiplicity of cultures. Owing to the recent public pressure to increase diversity on boards, firms increasingly employ foreign nationals as board of directors and/or CEOs. As the employees, investors and other stakeholders are mostly local, how would they interact with a foreign CEO and/or board of directors? More importantly how would this interaction among a multiplicity of cultures affect the firm idiosyncratic risk? Whilst the cultural impact on firm outcomes has remained in the spotlight for the last decade or so, the interaction of a multiplicity of cultures within a firm and its impact on corporate outcomes is rarely studied. The study initially employs Feasible Generalized Least Squares Method (FGLS) and then the Dynamic Panel System Generalized Method of Momentum (DPS-GMM) to analyse a sample of 1,190 firms from 12 European countries, over 14 years from 2005 to 2018. The findings reveal that the cultural distance between the CEO and stakeholders, on firm risk, appear to remain positive and strongly significant, regardless of endogeneity correction and various other robustness tests, inferring that the greater cultural distances and the resulting disarray of preferences of CEOs and stakeholder groups may result with CEOs making unpredictable decisions, ultimately increasing performance volatility. CEO' board cultural distance evinces a negative association, which proves statistically significant in most of the endogeneity corrected regression models, implying that a greater distance between the CEO and the board of directors is beneficial to a company as the board will play a more independent and active role in preventing the management from participating in value destroying risky ventures and making strategic decisions single-handedly. Within-board cultural distances generate mixed results. Moreover, to allow for the asymmetries between cultural distances and firm risk, quantile panel regression is employed. Whilst the first two cultural spheres reinforce the previous findings, within-board cultural distances appear to reduce stock performance volatility, in firms with moderate idiosyncratic risks, where the same is amplified in least volatile and most volatile firms, implying that the extra social and human capital that would be brought in to the firm by culturally diverse directors, would help to position the firm better in terms of managing risks, only in moderately uncertain environments. The results of this study remain robust to alternative specifications and endogeneity concerns. To the best of my knowledge, this paper is among the first, to investigate the co-existence of a multiplicity of cultures within a firm and its impact on firm performance volatility. Overall, the objective of this doctoral thesis is to improve the existing knowledge on the subtle and understated influences of cultural differences and resulting human behaviour on business outcomes.

This article presents the methods for assessing the ecosystem services in foreign countries, the metaanalysis of the literature is conducted considering what methods of assessment of natural ecosystems are applied, as well as the advantages and disadvantages of applied assessment methods are analysed. It is aimed to find the method or the system of methods assessing the ecosystem services which are the most suitable to assess the services provided by ecosystem in urban areas.The rational and balanced use of ecosystem services is very important for their socio-economic assessment, the protection of biodiversity in cities in order to ensure the recreational, cultural, economic, social, sanitary, hygienic and other needs of society. According to the principle of sustainable development, the economic and social development of the country has to be oriented so that the meeting today's needs would not diminish the possibilities to satisfy the needs of future generations, to account for resource constraints, with a view to sustainable use and conservation of resources. Such data are essential to form the policy of natural resource consumption through the management of national resources. The public is more aware of the aesthetic and protective functions of natural ecosystem, but they do not have sufficient knowledge of their economic and social value. Although foreign literature provides a large number of studies in this sphere, only individual methods for assessing the ecosystem services are analyzed in Lithuania. Research in the evaluation of the ecosystem services in Lithuania has not been developed. When it is not possible to quantify the supply with demand for ecosystem services, it is more difficult to prove the real economic risks that arise. Answers to these issues are necessary not only for scientists but also for managers in deciding on the adaptation of limited natural resources for social needs and preservation for future generations. To assess the ecosystem services in urban areas, which are described as ecosystem conditions and processes contributing to human quality of life and important for day-to-day decisions at the political, economic and environmental levels, there is a need for an economic and social assessment system that helps to determine the value of ecosystem services. The value of ecosystem services in most countries of the world is underestimated and incorporated into decision-making. It is important to analyze the theoretical principles of assessing the ecosystem services to develop the economic and social model for the future assessment of the ecosystem services.Analytical methods are more essential in comparing the use of ecosystems than establishing the absolute ecosystem values. Selection methods are used for assessing ecosystem services: market, travel costs, hedonistic. Priority methods: joint analysis, contingent assessment are used as well. Cost-based avoidance methods are used when ecosystem services are valued according to costs incurred as a result of the loss of the ecosystem service or the costs of transferring or replacing the service. The new method for evaluating ecosystem services is the method of deliberative monetary valuation. The multi-criteria assessment method allows to conduct the simultaneous evaluation of several contradictory criteria, which is especially relevant for environmental decision-making. For socio-economic evaluation of ecosystem services, researchers apply a cost-benefit analysis method that is most often used to evaluate public sector investment projects. These projects are generally financially unprofitable, but aim at identifying the socioeconomic value they create. The value-for-consumption and non-use value of ecosystems in the overall economic value structure can be determined by consumer valuation, contingent or hedonistic price methods. The valuation of non-market (non-market flows or assets) is, in essence, an indication of the environmental performance of aggregates rather than a specific expression of the market price of a financial transaction. For this purpose, the subjective, hypothetical value and price determination and justification methodology, the subjective approach based on the value of indirect use or disclosed preferential methods are used to define the value and determine the value. In many cases, ecosystem services are not marketed and do not have market prices, but their economic value or market value cannot be assumed to be zero. In cases where ecosystems do not have a market price (because there is no market), but an individual agrees (is willing) to pay for the opportunity to use it or receive compensation for not using it, the economic value of the good would be related to the amount of the price paid by the consumer. The benefits of urban ecosystems are indirect, therefore, it is often difficult to assess it in monetary terms. However, it is necessary to compare the benefits and costs of this ecosystem resource. It is suggested that different ecosystem services provided in the cities are identified by using different assessment methods appropriate to different ecosystem types. Selection methods based on human behavior and choice are used in cases where interrogators may experience different effects of the provided ecosystem service. These are market price, travel costs, hedonistic, deliberative monetary valuation methods. The preferred methods of disclosure-contingent assessment, choise experiment methods are used to determine the value of non-use provided by all three types of ecosystem services. The value of non-use of ecosystem services is the value of preserving and retaining biodiversity for future generations. The set value helps to prevent loss of change. The most recent method for evaluating ecosystem services – the method of deliberative monetary valuation – is more appropriate to be regarded not as the main but as an additional assessment method. The multicriteria method allows to conduct simultaneous evaluation on the basis of several contradictory criteria, which is especially relevant for national policies in environmental issues. The cost-benefit analysis method is most often used in evaluating public sector investment projects. These projects are generally financially unprofitable, but aim at identifying the socioeconomic value they generate.In determining the value of providing ecosystem services in cities, it is important to choose the right method or system. The diversity of ecosystem services and their functions suggests that it is necessary to integrate assessment methods in such a way as to enable them to reflect the benefits of these services for the public not only at present, but also preserving the ecosystem for future generations. All methods have the advantages and the disadvantages, only by combining them we can have rational assessment of natural ecosystem services. In the evaluation of the services provided by the type of ecosystem in the city, it is suggested to use cost benefit analysis and conjoint analysis methods. The contingent assessment method should be used to assess cultural and regulatory services. An appropriate regulatory type of ecosystem services is evaluated using both multicriterion and choise experment methods, integrating the contingent method with the travel cost method when assessing cultural ecosystem services. In order to incorporate society into decision-making, additional methods of a deliberative monetary valuation and expert evaluation are needed. ; Šiame straipsnyje pateikiami ekosistemos teikiamų paslaugų vertinimo metodai, naudojami užsienio šalyse, atliekama literatūros metaanalizė atsižvelgiant į tai, kokie gamtinių ekosistemų vertinimo metodai taikomi, išanalizuoti taikomų vertinimo metodų privalumai ir trūkumai. Siekiama surasti ekosistemos paslaugų vertinimo metodą ar taikomų metodų sistemą, tinkamiausią įvertinti urbanizuotų teritorijų ekosistemos teikiamas paslaugas. Analizuojant metodus, svarbiausias dėmesys skiriamas racionaliam ir subalansuotam ekosistemos paslaugų naudojimui, jų socialinei ir ekonominei naudai, bioįvairovės apsaugai miestuose siekiant užtikrinti visuomenės rekreacinius, kultūrinius, ekonominius, socialinius, sanitarinius-higieninius ir kitus poreikius.

The concern about food insecurity in rural populations needs to be rethought and adapted to the overall living conditions of households by shifting to a concentrated spatial scale and a long-term analysis. This change will allow identifying territories on a finer scale than the national level in order to allocate development objectives and to link them to areas with high development potential. The finer level of analysis will also allow regrouping the actions carried out on a smaller scale in order to structure all the activities carried out on the targeted area and population. The general comment that the development and emergency aid has been focused in circumscribed areas and that the level of analysis is based on two scales, one "macro" (national, regional, departmental) and the other "micro" (village, community, household, individual and community) reinforces the need to create an intermediate level of analysis. The latter will serve to improve the structure other actions carried out at different levels and the articulation of the activities to be carried out and the targeted population. From a state of the art analysis of subject such as development, targeting, territory, food security, resilience, etc; different finding have led to the definition of a major question and an objective which form the core structure of the present dissertation. The research question is defined as "how to structure the targeting and identification of areas with high potential to articulate all the emergency and development actions carried out on several scales of analysis?". At the end of these observations, the objective of this research is "the establishment of a tool to support spatial and temporal decision making in structuring the emergency and development actions and targeting of populations subjected to food insecurity ". Three considerations emerge from this objective and research question: spatiotemporal analysis and targeting, development potentials, rural production systems. The various productions are also studied over a long series in order to consider the yield variations over time. Finally, these two analyzes, spatial (systems) and temporal (yields) are crossed in order to demonstrate the contribution of this decision-supporting tool in the articulation and structuring of the other two levels of targeting populations to food insecurity. The decision-supporting tool has been tested on the case study of the Nigerian population. The main outcomes are: the characterization of the opportunities and constraints of the Nigerian rural production systems; the identification of the products to be developed by production system; the identification of the most promising pathways by means of the distribution of the yields by systems. Finally, an essential point must be made about the increase of conservation methods and transformations for increasing the added value obtained by Nigerian households. At the end of this dissertation, the tool demonstrated its importance in structuring and articulating the targeting of food insecurity in the field of emergency aid and development: The territorial zones in the production systems identify the problems to which one or several solutions must be found. Production systems allow a concentration of actions according to the definition of the general and specific objectives of the agricultural development assistance programs. Potential outputs to be developed in production systems allow diversification of agriculture and structuring of development from a national point of view. The actions defined by the Technical and Financial Partners at the level of a village, a community and / or a commune can be more easily integrated into this scale of analysis and can be structured later in national development policies Agricultural policy. The increase in productivity in Niger depends on the development of products within the most favorable zones and not on the whole territory. However, this tool is complementary to the other targeting tools already in place. It should also be complemented by the same type of analysis at the level of West Africa and an analysis of the flows and prices condition to favor the flow of production. ; Le ciblage des potentialités de développement agricole en milieu rural doit être repensé et adapté à l'ensemble des conditions de vie des ménages d'un point de vue d'une échelle spatiale concentrée et d'une analyse sur une longue période. Ce ciblage identifie des territoires sur une échelle plus fine que le niveau national afin de répartir les objectifs de développement agricole et de les articuler sur des zones ayant un haut potentiel. Ce niveau d'analyse permettra aussi de regrouper les actions menées à une échelle plus « micro » afin de structurer l'ensemble des activités menées sur la zone. En effet, le constat que l'aide au développement et d'urgence se concentre dans des zones circonscrites et que le niveau d'analyse repose sur deux échelles, l'une « macro » (national, régional, départemental) et l'autre « micro » (village, collectivité, ménage, individu et communauté) renforce le besoin de créer un niveau d'analyse intermédiaire afin d'assurer une meilleure structuration des actions menées à différents niveaux et une meilleure articulation entre un territoire considéré (zone d'actions), les activités à mener et la population cible. A partir d'un état de l'art sur les sujets connexes à notre réflexion (développement, ciblage, territoire, sécurité alimentaire, résilience), différents constats ont permis d'aboutir à la définition d'une question majeure et d'un objectif structurant la présente dissertation. La question de recherche est définie comme suit : « comment structurer le ciblage et l'identification des zones à fortes potentialités permettant d'articuler l'ensemble des actions d'urgence et de développement menées sur plusieurs échelles d'analyse ? ». A l'issue de ces constats et réflexions, l'objectif de la présente recherche est « la mise en place d'un outil d'aide à la décision spatiotemporelle articulant et structurant le ciblage des potentialités de développement agricole en matière d'aide d'urgence et de développement ». Trois considérations ressortent de cet objectif et question de recherche : l'analyse et le ciblage spatiotemporels, les potentialités de développement, les systèmes de production ruraux. L'analyse spatiale est caractérisée par l'étude des systèmes de production ruraux. Ceux-ci sont définis selon des paramètres biophysiques et socioéconomiques. Ils reflètent une vision systémique identifiant des systèmes agraires. Les différentes productions sont aussi étudiées sur une série longue afin de montrer la tendance des produits à considérer (analyse temporelle). Enfin, ces deux analyses, spatiales (systèmes) et temporelles (produits) sont croisées afin de démontrer l'apport de ce type d'outil en matière d'articulation et de structuration des deux autres niveaux de ciblage (« macro et micro »). Les principaux résultats reposent sur l'identification des produits à développer par système de production, la caractérisation des opportunités et contraintes des systèmes de production ruraux nigériens. De plus, cette analyse spatiotemporelle permet une meilleure identification des potentialités grâce à la distribution des rendements par système et leur comparaison. A l'issue de cette dissertation, l'outil a démontré son importance en matière de structuration et d'articulation du ciblage structurant à l'insécurité alimentaire dans le domaine de l'aide d'urgence et du développement agricole. Les zones territoriales définies en systèmes de production permettent une concentration des actions en fonction de la définition des objectifs généraux et spécifiques des programmes d'aide de développement agricole. Les potentiels produits ont été répartis dans les systèmes de production et permettent de diversifier l'agriculture tout en structurant le développement d'un point de vue national. A l'inverse, les zones à faible potentiel de développement agricole ont été analysées. Elles représentent les zones les plus vulnérables en matière de développement agricole. En outre, les actions définies par les Partenaires Techniques et Financiers (PTF) à l'échelle d'un village, d'une communauté et/ou d'une commune peuvent s'insérer plus facilement dans cette échelle d'analyse et se structurer par après dans les politiques nationales de développement agricole. Il est à noter que l'accroissement de la productivité au Niger passe par le développement de produits au sein des zones les plus propices et non sur l'ensemble du territoire. Le présent outil permet d'acquérir une vision en réseau voire maillage de l'ensemble des potentialités agricoles et d'élevage en fonction des systèmes de production. Toutefois, il serait souhaitable d'insérer le présent outil et de le transposer à une échelle sous-régionale afin de caractériser les échanges au sein de la sous-région et d'orienter les excédents vers des zones consommatrices.

This is a first for Indonesia: Program Keluarga Harapan (PKH) is the only household-targeted social assistance initiative to have designed randomized impact evaluation into the initial allocation of the program. This brings three major benefits for policymakers: 1) the evidence available for evaluating the impacts of the PKH program on household welfare is extensive and sound; 2) the program design and the impact analysis design have generated additional excitement, both nationally and internationally, about the program, its goals and social assistance initiatives in general; and 3) the results and underlying data will be made publicly available, which has already spurred interest in additional evaluations that will stock the shelves of social assistance policy research libraries. PKH's success in delivering real benefits to the very poor and in changing behaviors deserves further support and encouragement. PKH's initial weaknesses in implementation and delivery deserve continuing attention and thoughtful solutions for greater effectiveness. The Government of Indonesia (GOI) plans on expanding the PKH program to as many as three million households; while it is doing so, it should continue to refine implementation, coordinate and collaborate with affiliated service providers in health, education, and local government services, and continue developing a corps of organized, enthusiastic, and skilled facilitators who can assist very poor households in achieving healthier behaviors.

In 1995, Moldova introduced free economic zone (FEZ) legislation with the aim of accelerating socioeconomic development by attracting domestic and foreign investment, promoting exports, and creating employment. Since then, seven free economic zones offering tax and customs benefits have been established. This note assesses the static and dynamic economic benefits of the program in Moldova. The free economic zones have been successful in attracting investment from both domestic and foreign sources. The economic zones have become true export platforms, generating a five-fold increase in exported industrial production from the zones between 2004 and 2014. On average, employment in the economic zones had a robust growth in the last seven years and almost doubled since 2008. Evidence suggests that the economic zones have significantly contributed to the diversification of exports and to the changing structure of the Moldovan economy. The effect of the economic zones on domestic firms appears to be modest, however, and unlikely to contribute to the technological upgrading and sophistication of the Moldovan economy. Free economic zones tend to attract industrial activities requiring intensive use of human resources for certain operations. The economic impact of Moldovan free economic zones is ambiguous. Moldovan legislation provides sound and transparent provisions, but the main issue is how this legislation is implemented. The majority of recommendations are focused on streamlining the implementation process, making it easier for companies to operate. Here are the main recommendations for improving the zones : (i) the importance of fiscal incentives should be downgraded by shifting to targeted services for businesses; (ii) reduce corruption and increase accountability by establishing one-stop-shop procedures and elements; (iii) establish a proper mechanism for monitoring and reporting with the zones residents and administrator; (iv) empower the regulator with additional relevant institutional capacities and capabilities; (v) the role of residents in appointing the administrator should be determinant; and (vi) establish a proper mechanism for compensating residents of the zones for restrictive treatment of the real assets.

This paper develops a novel methodology to measure the quantity of jobs and value of wages embodied in exports for a large number of countries and sectors for intermittent years between 1995 and 2011. The resulting Labor Content of Exports database allows the examination of the direct contribution of labor to exports as well as the indirect contribution via other sectors of the economy for skilled and unskilled labor. The analysis of the new data sets documents several new findings. First, the global share of labor value added in exports has been declining globally since 1995, but it has increased in low-income countries. Second, in line with the standard Hecksher-Ohlin trade model, the composition of labor directly contained in exports is skewed toward skilled labor in high-income countries relative to developing countries. However, that is not the case for the indirect labor content of exports. Third, manufacturing exports are a key source of labor demand in other sectors, especially in middle- and low-income countries. And the majority of the indirect demand for labor spurred by exports is in services sectors, whose workers are the largest beneficiaries of exporting activities globally. Fourth, differences in the labor value added in exports share across developing countries appears to be driven more by differences in the composition of exports rather than in sector labor intensities. Finally, average wages typically increase rapidly enough with the process of economic development to more than compensate the loss in jobs per unit of exports. The paper also includes the necessary information to build the Labor Content of Exports database from the original raw data, including stata do-files and matlab files, as well as descriptions of the variables in the data set.

The World Bank Group's investment climate project conducted a survey of foreign investors in the Kyrgyz Republic - both those currently operating and those that have terminated their operations for various reasons. The purpose of the survey was to assess selected aspects of the investment policy and legal environment in place in the Kyrgyz Republic, so as to determine whether the current regulations are investment-conducive or otherwise. The following aspects were studied as part of this survey: reasons for selecting a country for investing, ease of market entry, investor confidence, and protection in running a business, investor incentives and market exit. This report presents the analysis of the results of the survey. It consists of six sections, five of which discuss the results of each of the assessed aspects of the investment policy. The sixth section presents some demographics of the survey.

The World Bank Group's investment climate project conducted a survey of foreign investors in the Kyrgyz Republic - both those currently operating and those that have terminated their operations for various reasons. The purpose of the survey was to assess selected aspects of the investment policy and legal environment in place in the Kyrgyz Republic, so as to determine whether the current regulations are investment-conducive or otherwise. The following aspects were studied as part of this survey: reasons for selecting a country for investing, ease of market entry, investor confidence, and protection in running a business, investor incentives and market exit. This report presents the analysis of the results of the survey. It consists of six sections, five of which discuss the results of each of the assessed aspects of the investment policy. The sixth section presents some demographics of the survey.

This Fifth Edition of the Uganda Economic Update presents evidence that if the urbanization process is well managed, it has the potential to stimulate economic growth and to provide productive jobs for a greater proportion of Uganda's young and rapidly expanding population. In many countries across the world, the growth of cities has stimulated the establishment and expansion of productive businesses by reducing the distance between suppliers and customers. The growth of cities has also facilitated provision of social services and infrastructure through economies of scale. These positive effects from urbanization are already visible in Uganda since the poverty rate is seven percentage points lower in urban areas than in rural areas. Most of the recent job creation is found in cities, and social indicators are also better in urban areas, especially in education and health.

This Fifth Edition of the Uganda Economic Update presents evidence that if the urbanization process is well managed, it has the potential to stimulate economic growth and to provide productive jobs for a greater proportion of Uganda s young and rapidly expanding population. In many countries across the world, the growth of cities has stimulated the establishment and expansion of productive businesses by reducing the distance between suppliers and customers. The growth of cities has also facilitated provision of social services and infrastructure through economies of scale. These positive effects from urbanization are already visible in Uganda since the poverty rate is seven percentage points lower in urban areas than in rural areas. Most of the recent job creation is found in cities, and social indicators are also better in urban areas, especially in education and health. This report conveys the following key messages: (1) over the past 12 years, the number of people living in Uganda s urban areas has been increasing by an average of 300,000 people per year, (2) during the past few decades, similarly rapid rates of urbanization have been recorded in many emerging countries, (3) as is the case in many other developing countries, the prospects of good jobs, higher incomes and better living conditions in the cities continue to attract Ugandans from rural areas, (4) currently, the opportunity presents itself for Uganda to leverage urbanization to benefit a large proportion of the population, and (5) through the implementation of smart policies, Uganda can ensure that its cities are both competitive and livable.

The paper finds a moderate evolution in public debt ratios since debt relief among heavily indebted poor countries (HIPC) and multilateral debt relief initiative (MDRI) recipient countries in Sub-Saharan Africa, with certain exceptions. For eight countries the authors find rapid rates of debt accumulation, which can return them to pre-HIPC debt levels in only a few years. Short-term domestic debt has, despite early fears, in general not filled the borrowing space created by debt relief. However, external debt accumulation on commercial terms in some cases presages repayment spikes, which may combine with short-term domestic obligations to amplify refinancing risk and cause abrupt reductions in public spending, with damaging consequences for development. Finally, despite reduced debt, African economies continue to be commodity dependent and prone to shocks. As global interest rates and commodity prices revert to historically more customary levels, these countries should remain prudent: avoid tax-base erosion, prevent large recurrent spending hikes, and invest wisely in growth, by executing projects effectively to enhance infrastructure. These fiscal fundamentals will be as important for debt sustainability as how much is borrowed and on which terms.

Reforming business licenses is part of a suite of products delivered by the World Bank group's investment climate advisory services, under the business operations practice. The approach to reforms highlighted in this handbook fits into the broader policy framework for business licensing reform and simplification. The framework paper provides the context for business licensing practices; establishes the key principles and concepts underpinning licensing; and gives an overview of licensing reform objectives, issues, and processes. It includes an overall introduction to the use (and abuse) of business licenses, and a further elaboration on the way business licensing reforms can be organized. This handbook is part of a suite of knowledge management products dedicated to business licensing. This handbook is written for business regulation practitioners. It aims to provide reformers with detailed information and guidance on how to implement fast-track, top-down licensing and regulatory reform projects. Its structure follows the process underpinning such reforms, taking readers step-by-step through the successive stages of reforms.

Italy inaugurated its year of G7 presidency with the Italy-Africa summit on 28-29 January in Rome, an event representative of the current government's ambitions.[1] The long-awaited meeting was the first test for the strategy of "cooperation as equals" with African states that Giorgia Meloni has repeatedly proposed as central to her government's foreign policy. It was also the first occasion to test the real scope of the so-called Mattei Plan for Africa, the project with which the Italian government wants to substantiate this strategy but whose official strategic outline has yet to be announced.Great (political) expectations
Rome hosted the summit to achieve several political goals: first, to strengthen its international profile thanks to its ability to gather the African leaders at its table and thus to present itself towards its European partners as a driving force in relations with the continent's governments. Second, the government had a domestic policy objective: that is, to demonstrate to its voters the intention to systemically tackle the issue of irregular immigration, which grew by almost 50 per cent in 2023,[2] offering long-term solutions by engaging the countries of origin and transit and contributing to assert "the right not to be forced to emigrate" of African people.
The third aim was to seek economic partnerships, also involving the Italian private sector, by opening new trade channels with, and investment opportunities in, African countries. This last line of action encompasses the idea, already actively promoted by Rome through bilateral agreements in the past years, of making Italy an 'energy hub' in the Mediterranean for Europe. The Italy-Africa Summit was meant to be an opportunity to articulate these objectives around the idea, central to the Mattei Plan's narrative, of developing a "non-predatory" approach to the African continent.Attendants and absentees
The summit certainly marked a novelty compared to the recent past: the previous Italy-Africa conferences, inaugurated in 2016 by the Gentiloni government, had seen participation limited to the ministerial level. Of the 46 countries participating in the 2024 summit, instead, 21 sent top figures as heads of state (among them, those of Tunisia, the Republic of Congo, Somalia, Kenya and Mozambique) or heads of government (including those of Libya, Ethiopia and Morocco).[3] Equally significant was the presence of representatives of both European institutions and international organisations, such as Ursula von der Leyen, Roberta Metsola and Charles Michel, and African ones, prominent among them African Union Commission President Moussa Faki, as well as African Development Bank Group President Akinwumi Adesina and representatives of United Nations agencies and other multilateral institutions.
Nonetheless, notable was the absence of Africa's most populous country, Nigeria, as well as the lower-level delegation sent by another key state, such as South Africa, which was represented by its deputy foreign minister. Most of the Sahel countries' governments – a region that is a crucial pathway of irregular migration towards Europe – did not show up either.[4]
Finally, the involvement of civil societies – both Italian and African – was evidently quite limited.[5] This seemed indicative of an approach primarily focused on leaders-to-leaders relations and deals as the overarching framework for the 'new' Italy-Africa relations.Cooperation as equals – but who's 'equal'?
The January summit shed light on the fact that Italy's 'pivot to Africa' is certainly generating international attention and potentially innovative, but also presents a number of potential shortcomings and drawbacks, both in its narrative and implementation. Some of these were laid bare in the speech by African Union Commission President Moussa Faki during the summit. While welcoming the "paradigm shift" called for by Giorgia Meloni in relations with Africa, Faki also voiced critical remarks: first, he lamented the lack of consultation of its institution by the Italian government before announcing the Plan, although still hoping for future cooperation in the Partnership. He also stressed the urgent need to match words with deeds and remarked upon the autonomy of the African Union in engaging in Partnerships "not based on any block".[6]
Faki's speech highlights that, in engaging African counterparts, the articulation of the Italian narrative of a non-patronising partnership between equals must be implemented in a thorough and consistent manner. This directly calls into question who the 'equals' involved really are. There is a risk that this narrative simply translates into elite-level foreign policy practices based on personal trust between European and African personalities in the absence of a broader engagement with different segments of states and societies. Without a wider approach that also factors in societal concerns and voices, deals between European and African leaders may surely deliver short-term results in decreasing migration flows and striking private sector contracts; at the same time, however, inasmuch as they sustain a patrimonial personality-centred system, accelerate the crisis of representation at the expenses of civil society and amplify intra-elite competitions conducive to military coups, such deals and relations may well be a good recipe for instability in the long run.How to (not) Europeanise the Plan
For their part, the representatives of EU institutions welcomed Italy's Plan. President von der Leyen praised the Plan as consistent with the broader European Global Gateway initiative, which includes a Europe-Africa investment package of 150 billion euros.[7] An integration of the Mattei Plan into a EU frame will indeed be essential to meet its ambitions as the initial pool of resources announced by Giorgia Meloni during the summit – 5.5 billion euros – are clearly not enough to develop a continent-wide strategy.[8]
To 'Europeanise' the Plan, Italy may try to replicate the modus operandi it tested in Tunisia with the Memorandum of Understanding signed in July 2023.[9] That includes working to obtain the support of a few like-minded EU member states and the President of the Commission with the aim of mainstreaming its Africa policy across the EU institutions and in coordination with other EU member states. This mechanism is agile and seemingly holds benefits for all the parties involved. It fits in with Italy's ambition to lead European policies in Africa and to benefit from EU funds in developing shared ventures with African counterparts. It also helps European governments to demonstrate that they are taking concrete actions on the migration issue. And, finally, it fulfills the President of the Commission's ambition to deliver on trade, financial and infrastructural agreements.
As much as it benefits specific EU member states and individuals, this modus operandi may however potentially erode the foundations of an EU common framework on Africa, undermine EU institutions and their normative profile, and encourage competition among EU member states rather than common action. Legitimising elite-to-elite deals that involve authoritarian leaderships and neglect local civil societies seriously undermines the credibility of the EU as an international actor championing human rights; furthermore, a purely transactional approach focused on reaping short-term benefits carries the risk of fuelling a sort of zero sum competition between member states, to the detriment of the overall effectiveness of EU policy towards the region. The involvement of other key European states such as Spain, France and Germany – that were not represented at the January summit in Rome – will be necessary to prevent this potential fragmentation from materialising in the future.A possible pathway
An official text of the Mattei Plan has yet to be published. So there remains room to adapt this ambitious vision, also considering what emerged during the summit. The main critical issues concern not only the resources available, but also the actual ability to create a virtuous and genuinely equal interlocution with all relevant African counterparts.[10]
It is important to reiterate that the latter cannot be limited to the representatives of more or less democratic governments. If the Plan's ambition is really to trigger positive development processes in the medium to long term, involvement must be extended beyond leader-to-leader diplomacy in the partner countries. Italy should move from words to action in its plea for a new equal-to-equal diplomacy, making sure to establish solid relations with institutional counterparts and diverse segments of the society. In the same way, integrating the Plan into a broader European framework – at the level both of continental institutions and of member states – is an indispensable prerequisite to guarantee adequate support in terms of resources and expertise and to avoid triggering potentially detrimental competition dynamics.Filippo Simonelli is Junior Researcher in the Italian Foreign Policy Programme at the Istituto Affari Internazionali (IAI). Maria Luisa Fantappié is Head of the Mediterranean, Middle East and Africa Programme at IAI. Leo Goretti is Head of the Italian Foreign Policy Programme at IAI.[1] Italian Government, President Meloni's Opening Address at the Italia-Africa Summit, 29 January 2024, https://www.governo.it/en/node/24861.[2] Italian Ministry of the Interior, Cruscotto statistico giornaliero, 31 December 2023, http://www.libertaciviliimmigrazione.dlci.interno.gov.it/sites/default/files/allegati/cruscotto_statistico_giornaliero_31-12-2023.pdf.[3] The full list of participants is available on the Italian government website: https://www.governo.it/en/node/24853.[4] Interestingly enough, on Sunday 28 January, the first day of the summit, three major Sahel countries, Mali, Niger and Burkina Faso, announced their withdrawal from the West Africa regional organisation Ecowas. See Boureima Balima and Tiemoko Diallo, "Three West African Junta-led States Quit ECOWAS Regional Block", in Reuters, 28 January 2024, https://www.reuters.com/world/africa/niger-mali-burkina-faso-say-they-are-leaving-ecowas-regional-block-2024-01-28.[5] Daniela Fassini, "«Piano Mattei, più ombre che luci». Il vertice secondo missionari e Ong", in Avvenire, 31 January 2024, https://www.avvenire.it/attualita/pagine/piano-mattei-piu-ombre-che-luci-il-vertice-sec.[6] African Union, Speech by H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission, at the Italy – Africa Summit: A Bridge for Common Growth, 29 January 2024, https://au.int/en/node/43449.[7] European Commission website: Global Gateway, https://commission.europa.eu/node/5445_en.[8] While in Rome, Ursula von der Leyen met with African Development Bank Group President Adesina to define a new Financial Framework Partnership Agreement to boost infrastructural investments in Africa. See European Commission, Global Gateway: European Commission and African Development Bank Group Unlock New Funding for African Infrastructure Projects, 28 January 2024, https://ec.europa.eu/commission/presscorner/detail/en/IP_24_443; Italian Government, President Meloni's Opening Address at the Italia-Africa Summit, cit. On the issue of resources and financing for the plan see also Daniele Fattibene and Stefano Manservisi, "The Mattei Plan for Africa: A Turning Point for Italy's Development Cooperation Policy?", in IAI Commentaries, No. 24|10 (March 2024), https://www.iai.it/en/node/18219.[9] Luca Barana and Asli Selin Okyay, "Shaking Hands with Saied's Tunisia: The Paradoxes and Trade-offs Facing the EU", in IAI Commentaries, No. 23|40 (August 2023), https://www.iai.it/en/node/17362.[10] President Adesina, who was among the African representatives who welcomed positively the plan, has pointed out some projects, already designed by the Bank, as a pathway to follow. See African Development Bank, Italy to Collaborate with the African Development Bank Group as It Unveils Its $5.95 Billion Strategic Plan for Africa, 2 February 2024, https://www.afdb.org/en/node/68468.

Chemicals are an essential part of our daily lives. They are used to produce consumer goods, to protect or restore our health and to boost food production, to name but a few examples — and they are also involved in a growing range of environmental technologies. Europe's chemical and associated industries have developed rapidly in recent decades, making a significant contribution to Europe's economy and to the global trade in chemicals. Whilst synthetic chemicals clearly bring important benefits to society, some of them are hazardous, raising concerns for human health and the environment depending on their pattern of use and the potential for exposure. Certain types of naturally occurring chemicals, such as metals, can also be hazardous. Emissions of hazardous substances to the environment can occur at every stage of their life cycle, from production, processing, manufacturing and use in downstream production sectors or by the general public to their eventual disposal. Emissions arise from a wide range of land-based and marine sources, including agriculture and aquaculture, industry, oil exploration and mining, transport, shipping and waste disposal, as well as our own homes. In addition, concern regarding chemical contamination arising from the exploitation of shale gas has grown recently. Hazardous substances in water affect aquatic life… Hazardous substances are emitted to water bodies both directly and indirectly through a range of diffuse and point source pathways. The presence of hazardous substances in fresh and marine waters and associated biota and sediment is documented by various information sources, including national monitoring programmes, monitoring initiatives undertaken by the Joint Research Centre (JRC), reporting under the Water Framework Directive (WFD), international marine conventions (e.g. HELCOM and OSPAR) and European research studies. These substances comprise a wide range of industrial and household chemicals, metals, pesticides and pharmaceuticals. Hazardous substances can have detrimental effects on aquatic biota at molecular, cellular, tissue, organ and ecosystem level. Substances with endocrine‑disrupting properties, for example, have been shown to impair reproduction in fish and shellfish in Europe, raising concerns for fertility and population survival. The impact of organochlorines upon sea birds and marine mammals is also well documented, as is the toxicity of metals and pesticides to freshwater biota. From a socio‑economic point of view, such impacts diminish the services provided by aquatic ecosystems, and consequently the revenue that can be derived from them. …and can pose risks to human health Human exposure to man-made chemicals has been implicated in a range of chronic diseases, including cancer as well as reproductive and developmental impairment. Exposure to toxic chemicals can occur via inhalation, ingestion and direct contact with skin, although the understanding of the relative risk posed by each of these exposure routes remains incomplete. However, exposure can be linked to the presence of hazardous substances in water, through the ingestion of contaminated drinking water and the consumption of contaminated freshwater fish and seafood. The exceedance of regulatory levels in seafood is documented for several hazardous substances in the seas around Europe. In addition, whilst human exposure to mercury in the Arctic, in part through the consumption of marine food, has declined, concentrations in the blood of more than 75 % of women sampled in Greenland exceed US guideline levels. Alongside concerns about exposure to individual substances, awareness is growing with regard to the importance of mixtures of several chemicals, as found in the more polluted water bodies of Europe. Laboratory studies have shown that the combined effects of chemicals upon aquatic life can be additive — resulting in observable detrimental effects for combinations of chemicals even if these are present, individually, at levels below which any adverse effects can be detected. Such concerns also extend to potential effects arising from human exposure to a mixture of chemicals via various pathways, including water. Biological effects‑directed measurements have proved to be effective in addressing the problems of complex chemical mixtures in European water bodies. In addition to the potential for adverse impacts upon human and ecosystem health, the presence of hazardous substances in drinking water supplies requires their removal. Alternatively, where the level of treatment involved is so high as to be uneconomic, a supply can be decommissioned. In both cases, significant costs are incurred. A key measure for reducing the level of purification required for Europe's drinking water is the establishment of safeguard or protection zones around the source. The creation of such zones, recognised in the WFD legislation, must be associated with regulatory powers to control polluting activities. Legislation designed to protect Europe's waters… The implementation of more established legislation related to chemicals has produced positive outcomes. Abatement measures established under the Integrated Pollution Prevention and Control (IPPC) Directive, for example, have contributed to a decline in metal emissions to water and air, whilst legislation relating to the production, use and disposal of polychlorinated biphenyls (PCBs) has resulted in declines in concentrations found in marine biota. A similar outcome has resulted from the banning of tributyltin (TBT) in anti‑fouling paints due to its endocrine-disrupting impacts on marine invertebrates, although high levels in marine sediments can still be observed in certain locations. Europe has also introduced a range of relatively recent legislation to address the use of chemicals and their emissions to the environment, including water. The Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), designed to improve the protection of human health and the environment from the risks posed by chemicals, has a key role to play in this respect. REACH attributes greater responsibility to industry with regard to managing these risks and providing safety information on substances used. The Regulation also calls for the progressive substitution of the most dangerous chemicals once suitable alternatives have been identified. The chemical quality of Europe's surface waters is primarily addressed by the recently adopted Environmental Quality Standards Directive (EQSD). This WFD 'daughter' directive defines concentration limits for pollutants of EU-wide relevance known as priority substances (PSs). The limits are defined both in terms of annual average and maximum allowable concentrations, with the former protecting against long-term chronic pollution problems and the latter against short‑term acute pollution. Some of these pollutants have been designated as priority hazardous substances (PHSs) due to their toxicity, their persistence in the environment and their bioaccumulation in plant and animal tissues. The EQSD requires cessation or phase-out of discharges, emissions and losses of PHSs. For any substance identified as being of concern at local, river basin or national level, but not as a PS or PHS at EU level, standards have to be set at national level. Compliance with this requirement is critical. …is facing new challenges Some recent information with respect to the chemical status of Europe's surface water bodies is available within the WFD river basin management plans (RBMPs) which indicate, in general terms, that a variety of hazardous substances pose a threat to good chemical status in Europe. These include certain substances, for example mercury, TBT and polyaromatic hydrocarbons (PAHs), which can be described as persistent, bioaccumulative and toxic and which occur widely in the environment. Although regulation has led to documented reductions in the emissions of such substances to air and water (indeed, the presence of many is a legacy of past use), their persistence and ubiquity, particularly in sediment and biota, mean that they continue to pose a risk to aquatic environments even at sites far from human activity. The presence of these substances can cause widespread failure to achieve good chemical status under the WFD despite, in some cases, the absence of any significant risk from other types of substances. Some hazardous substances are hydrophobic and tend to accumulate in sediment and biota, with the result that their concentrations in these matrices are likely to be higher and, therefore, more detectable and measurable than in water. If measurements are made in the water column, the risk to the aquatic environment may be underestimated, and if different matrices are used in different locations and across different Member States, the results may not be directly comparable. A harmonisation at EU level is, therefore, desirable. For some pollutants, awareness and a currently incomplete understanding of potential effects have developed only recently. These emerging pollutants include substances that have existed for some time, such as pharmaceuticals and personal care products, but also relatively new substances, such as nanomaterials. Their inclusion in routine monitoring programmes has so far been limited, making it difficult to robustly assess the risks to the environment and human health, and thus to justify regulation and better monitoring. Targeted monitoring of selected emerging pollutants across the EU would be desirable to ensure timely awareness of potentially problematic substances that might need to be regulated. This monitoring should be supported by European research studies. The question of hazardous substances in Europe's fresh and marine waters is a complex issue, and climate change will add a further layer of complexity. In the absence of appropriately strong measures, this phenomenon is likely to adversely affect chemical water quality over the coming decades. In regions where more intense rainfall is expected, the frequency and severity of polluted urban storm flows is predicted to increase, whilst the flushing to water of agricultural pollutants, including pesticides and veterinary medicines, may be exacerbated. Hotter, drier summers and increasingly severe and frequent droughts will deplete river flows, reducing contaminant dilution capacity and leading to elevated concentrations of hazardous substances. Rising water temperatures and other stressors associated with climate change may interact with hazardous substances to impact the immune system health of aquatic organisms. Ocean acidification, driven by increasing atmospheric carbon dioxide (CO2), may change the speciation of metals in seawater and, therefore, their interaction with marine organisms. In addition, coastal erosion — likely to be intensified by climate change — may lead to the exposure of historical landfill sites along the coastlines of Europe, releasing hazardous substances to coastal waters. Effective measures exist… A range of measures can be implemented to reduce the emission of hazardous substances to water. It encompasses product substitution, restrictions on marketing and use, requirements to demonstrate the implementation of clean production processes and best available techniques in applications for industrial permits, fiscal instruments, the setting of emissions and environmental quality standards, and action to raise public awareness. Whilst controls 'at source' are desirable, it is very likely that other measures to attenuate the emission of hazardous substances to water will remain essential. Such measures include advanced wastewater treatment, urban stormwater controls and specific agri-environmental practices such as riparian buffer strips. Reducing emissions of hazardous substances has been shown to yield economic and societal benefits. …but they rely on sound information It is not practical or affordable to sample and analyse at sufficient spatial and temporal resolution for hundreds of individual chemicals within fresh and marine waters, including aquatic biota and sediments. However, the focus upon a few pre‑selected priority substances bears a strong risk of missing other problematic substances. In addition, such an approach disregards the effects of chemical mixtures. To address these issues, recent European research studies have led to the development and testing of new assessment and modelling tools that help to link chemical contamination with observed deterioration of ecological quality. Such tools include approaches to evaluate existing chemical and biological monitoring data, together with site-specific experimental techniques to establish cause-effect relationships. Further development of biological effects tools integrated with analytical chemistry is desirable and could contribute, in due course, to the identification of substances associated with risks, in the wider context of the update of the WFD Article 5 'pressures and impacts' analysis. European research funds can play an important role in the further development of these tools. For many hazardous substances, information on industrial emissions to water must be reported under the European Pollutant Release and Transfer Register (E-PRTR). To date, however, reporting under E-PRTR is incomplete as to the spatial extent and temporal resolution of data describing emissions to water — markedly so, for some substances. It is important not only to overcome this limitation in the reporting, but also to improve the quantitative understanding of the sources, emissions and pathways of all hazardous substances significantly. Advances in this area will facilitate the identification of appropriate measures to address chemical pollution of aquatic environments. Chemicals should be produced and used more sustainably Despite the comprehensive suite of legislation now implemented throughout Europe, the ubiquitous use of chemicals in society and their continuous release represent a major challenge in terms of the protection of aquatic ecosystems and human health. Efforts to promote a more sustainable consumption and production of chemicals are needed. They are likely to require a mix of policy responses, including regulation, economic incentives and information-based instruments. Implementing a more sustainable approach to the consumption and production of chemicals would not only benefit Europe's environment but also reduce the detrimental effects arising in other parts of the world as a result of the growing proportion of goods imported to Europe. To help achieve a more sustainable production of chemicals, wider implementation of 'green chemistry' is required. This approach involves developing new processes and technologies that maintain the quality of a product but reduce or eliminate the use and generation of hazardous substances. The adoption of sustainable, green chemistry techniques has been shown to generate financial benefits and hence provide competitive advantage. Currently, however, there is no comprehensive EU legislation on sustainable chemistry in place.

Kenya withstood another difficult year in 2012 as policy tightening and weaker global demand slowed economic activity. With decisive fiscal and monetary policies, the government managed to restore confidence in Kenya's medium term prospects. Kenya's growth rate is still below its potential and its peers, external imbalances remain which threaten its future growth, and the pace of economic growth is not generating enough modern sector wage jobs. With the passage of the new constitution in 2010 and its implementation, stronger institutions are emerging, putting Kenya on a sound footing ready to take off. In the very short term, what remains to be done is for Kenya to deliver a credible and peaceful election in March 2013, and thereafter a smooth transfer of power. In the medium term, Kenya will need to start building a stronger foundation for growth, and undertake structural reforms to correct the external imbalances. To generate more jobs for the burgeoning educated youth population, Kenya will also need to reduce the transaction cost for firms, by reducing job-smothering corruption and the cost of doing business (particularly in transport and energy).