Abstract

Infrastructure plays a key role in promoting economic growth and opportunities.In particular, the efficient provision of basic infrastructure services, like water and sanitation, is a key ingredient in fostering a country's social and economic development. Previous studies have found that infrastructure has a positive impact on output, and can improve economic opportunity, including health and education for the poor, particularly in developing countries. In Argentina, a 2005 study, found that child mortality fell by 8 percent in areas that had experienced improved coverage and quality of basic water and sanitation through utility reform, with most of the reduction occurring in low-income areas where the water network expanded the most. More generally, Fay and Morrison found that allowing the poorest quintile in developing countries the same access to basic services as the richest quintile would reduce child mortality by 8 percent and child under development by 14 percent. Calderon and Serven also found a significant positive impact of infrastructure access and quality on overall inequality. Furthermore, the book sheds some light on how to address the main challenge for the future which may be to attract specialized operators to the smaller municipalities which do not currently have them. For that purpose in Colombia, for example, over the last two years, the policy framework has been focused on promoting the sector's development, by using the departments as the intermediate institutional level between the National Government and the municipalities, to formulate programs with regional impact and promote comprehensive investment plans. Document type: Book

Abstract

Since the last Ad Hoc Liaison Committee (AHLC) meeting, the PA has continued to strengthen its institutions, delivering public services and promoting reforms that many existing states struggle with. The quality of its public financial management (PFM) has further improved. Education and health in the West Bank and Gaza (WB&G) are highly developed, comparing favorably to the performance of countries in the region as well as globally. Ultimately, sustainable economic growth in WB&G can only be underpinned by a vibrant private sector. The latter will not rebound significantly while Israeli restrictions on access to natural resources and markets remain in place, and as long as investors are deterred by the increased cost of business associated with the closure regime. Education and health indicators for WB&G are impressive and reflect extensive coverage of the population, but a focus on improving the quality of these services remains warranted. Similarly, education investments take time to mature. While the PA is already implementing an education sector plan that highlights the importance of improving the quality of education, the relevance of graduates' skills remains an area requiring further attention. This report will therefore reflect on recent growth trends but also on the future trade regime and employability of the WB&G labor force.