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Symposium 2010

Solution for Building Thriving Companies in Low-Income Economies

The Challenge

Post-conflict economies and many low-income countries, such as Bangladesh, Haiti and Rwanda, offer prospects for high returns. But inward investment flows beyond oil and mining have remained scarc ...

Post-conflict economies and many low-income countries, such as Bangladesh, Haiti and Rwanda, offer prospects for high returns. But inward investment flows beyond oil and mining have remained scarce and have taken a substantial hit as a result of the global crisis.

Encourage signaling of good governance through the rapid pursuit of efficiency, transparency and accountability in government.

Indicators such as the World Bank’s Doing Business Index show that countries can move up the “business environment ladder” in a fairly short period of time. But this is only the easy part, as low levels of investment despite high returns mainly reflect high perceived risk on the side of potential investors.

Hence, to allay the fears of investors, it is essential for governments to send strong signals of their commitment to reforms so as to distinguish themselves clearly from “bad” governments. Uganda’s government, for example, reduced its overstaffed public sector workforce by 30 percent, which helped generate a surge in investment.

    Related Solutions

    Solution
    Symposium 2010

    Encourage investment in financial and physical infrastructure and raise the quality of the labor force to reduce the costs of doing business.

    Encourage investment in financial and physical infrastructure and raise the quality of the labor force to reduce the costs of doing business.

    Encourage investment in financial and physical infrastructure and raise the quality of the labor force to reduce the costs of doing business.

    Polity, Business
    Solution
    Symposium 2010

    Leverage public investment through public-private partnerships on commercially viable projects.

    Leverage public investment through public-private partnerships on commercially viable projects.

    Leverage public investment through public-private partnerships on commercially viable projects.

    Polity, Business
    Solution
    Symposium 2010

    Speed up the process of diversification away from purely commodity-driven growth.

    Speed up the process of diversification away from purely commodity-driven growth.

    Speed up the process of diversification away from purely commodity-driven growth.

    Polity, Business
    Solution
    Symposium 2010

    Where substantial economies of scale remain unexploited, scale up national stock exchanges by creating regional financial hubs.

    Where substantial economies of scale remain unexploited, scale up national stock exchanges by creating regional financial hubs.

    Where substantial economies of scale remain unexploited, scale up national stock exchanges by creating regional financial hubs.

    Polity, Business