Policies for capacity development

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Assessment of skill and technology indicators at the macro-micro levels in Sudan

In this paper we examine skill and technology indicators at the macro and micro levels in Sudan. Different from the Sudanese literature, a novel element in our analysis is that we use new primary data from the macro and firm surveys and we provide a new contribution and fill the gap in the Sudanese literature by examining five hypotheses on the causes and consequences of low skill and technology indicators at the macro and micro levels in Sudan. We verify our first hypothesis that the interaction between the deficient educational system -caused by low quality of education- and the high share of unskilled workers leads to poor provision of training; low skill levels; skills mismatch; low transfer of knowledge/external schooling effect; weak technology indicators and dependence on foreign technologies at the micro level. We confirm our second hypothesis that the poor local technology indicators/indigenous capability to build the local technology and heavy dependence on foreign technology can be attributed to lack of R&D activities/efforts, due to a lack of funding, low skill levels, weak linkages, lack of networks systems and collaboration between universities and industry/firms, low transfer of knowledge and a lack of entrepreneur perspective. We support our third hypothesis that the transfer of knowledge/external schooling effects is successful at the micro level but unsuccessful at the macro level due to low educational qualifications and deficient educational and training systems. We confirm our fourth hypothesis that skill and technology indicators are significantly determined by firm size and industry. We support our fifth hypothesis concerning the consistency of upskilling plans at the macro-micro levels. Finally, one advantage and interesting element in our analysis is that we provide a new contribution to the Sudanese literature, since we explain the causes, consequences and interaction between the low skill and technology indicators and the transfer of knowledge. We recommend further efforts to be made to improve skill and technology indicators and transfer of knowledge at the macro and micro levels which are all essential for economic growth and development in Sudan.Skill, technology, firm size, industry, Sudan

Discourses on ICT and development.

Research on ICT and development (ICTD) involves assumptions on the nature of ICT innovation and on the way such innovation contributes to development. In this article I review the multidisciplinary literature on ICTD and identify two perspectives regarding the nature of the ICT innovation process in developing countries - as transfer and diffusion and as socially embedded action - and two perspectives on the development transformation towards which ICT is understood to contribute - progressive transformation and disruptive transformation. I then discuss the four discourses formed by combining the perspectives on the nature of IS innovation and on the development transformation. My review suggests that ICTD research, despite its remarkable theoretical capabilities to study technology innovation in relation to socio-economic context, remains weak in forming convincing arguments on IT-enabled socio-economic development.

Energy Subsidies in the Arab World

The policy of maintaining tight control of domestic energy prices has characterized the political and economic environment in most Arab countries, together with many other parts of the world, for decades. The objectives behind such a policy range from overall welfare objectives such as expanding energy access and protecting poor households’ incomes; to economic development objectives such as fostering industrial growth and smoothing domestic consumption; and to politi- cal considerations, including the distribution of oil and natural gas rents in resource-rich countries. While energy subsidies may be seen as achieving some of a country’s objectives, this paper argues they are a costly and inefficient way of doing so. Energy subsidies distort price signals, with serious implications on efficiency and the optimal allocation of resources. Energy subsidies also tend to be regressive, with high-income households and industries benefiting proportionately most from low energy prices. However, despite such adverse effects, energy subsidies constitute an important social safety net for the poor in many parts of the Arab world, and any attempts to reduce or eliminate them in the absence of compensatory programmes would lead to a decline in households’ welfare and erode the competitiveness of certain industries. Therefore, a critical factor for successful reforms will be the ability of governments to compensate their populations for the reduction or removal of subsidies through carefully designed mitigation measures that protect the poorest and assist the economy in its long-term adaptation. We argue that a reform of energy pric- ing mechanisms in the Arab world may be seen as beneficial from more than one perspective, and as offering potential paths for reform. Nevertheless, this paper recognizes that the current political climate in the region will render the reform of domestic energy prices difficult in practice, such that reform may indeed be a medium- to long-term endeavour

Institutions, Governance and Technology catch-up in North Africa

This paper aims to analyse the effects of institution quality on technology catch-up in five North African countries (Algeria, Egypt, Morocco, Sudan and Tunisia) compared to 3 groups of developing and emerging countries (Sub Saharan Africa, Asia, and Latin America) over the period 1970-2005. The study adopts a two-stage methodology. In the first step we estimate the technology gap using the matafrontier approach. In second step we test the relationship between the technology gap and the quality of governance. The empirical results show that institutions (corruption, law and rules and investment climate) are very important in closing the technology gap and speeding up the technology catch-up. Other determinants of the technology gap are also identified: foreign direct investment, human capital and trade.metafrontier, technology gap, catching-up, efficiency, stochastic frontier, governance, North Africa

Promoting innovation in developing countries: a conceptual framework

The author provides a conceptual framework for approaching the promotion of technological innovation and its diffusion in developing countries. Innovation climates in developing countries are, by nature, problematic, characterized by poor business and governance conditions, low educational levels, and mediocre infrastructure. This raises particular challenges for the promotion of innovation. The latter should be understood as the diffusion of technologies-and related practices-which are new to a given context (not in absolute terms). What matters first is to provide the necessary package of support-technical, financial, commercial, legal, and so on-with flexible, autonomous agencies adapting their support and operations to the different types of concerned enterprises. Facilitating and responding to the emergence of grass-root needs at the local level is also essential. Support to entrepreneurs and local communities should be primarily provided in matching grant forms to facilitate the mobilization of local resources and ownership. It is of primary importance to pay the greatest attention to country specificities, not only in terms of development level, size, and specialization, but also in terms of administrative and cultural traditions. At the global level, major issues need also to be considered and dealt with by appropriate incentives and regulations: the role of foreign direct investment in developing countries'technological development, conditions of technologies'patenting and licensing, the North-South research asymmetry, and brain drain trends.Innovation,Environmental Economics&Policies,Agricultural Research,Poverty Assessment,Health Monitoring&Evaluation

The role of non-bank financial intermediaries (with particular reference to Egypt)

Non-bank financial intermediaries (NBFIs) comprise a mixed bag of institutions, ranging from leasing, factoring, and venture capital companies to various types of contractual savings and institutional investors (pension funds, insurance companies, and mutual funds). The common characteristic of these institutions is that they mobilize savings and facilitate the financing of different activities, but they do not accept deposits from the public. NBFIs play an important dual role in the financial system. They complement the role of commercial banks by filling gaps in their range of services. But they alsocompete with commercial banks and force them to be more efficient and responsive to the needs of their customers. Most NBFIs are also actively involved in the securities markets and in the mobilization and allocation of long-term financial resources. The state of development of NBFIs is usually a good indicator of the state of development of the financial system. The author focuses on contractual savings institutions, namely pension funds and life insurance companies, that are by far the most important NBFIs. He also offers a brief review of the role and growth of other NBFIs, such as leasing and factoring companies, as well as venture capital companies and mutual funds. The author covers developments in selected countries in different regions of the world. He also examines the recent growth of NBFIs, especially contractual savings institutions and securities markets, in Egypt. He discusses the necessary regulatory and other policy reforms for promoting NBFIs--in particular, the openness to international markets and foreign presence that is essential for the transfer of skills and technologies.Banks&Banking Reform,Payment Systems&Infrastructure,International Terrorism&Counterterrorism,Insurance&Risk Mitigation,Financial Intermediation,Banks&Banking Reform,Financial Intermediation,Insurance&Risk Mitigation,Contractual Savings,Non Bank Financial Institutions