Economics & Development

The incidence of fiscal policies in MENA indicates that the poorest households benefit more from direct transfers and in-kind services, even as they disproportionately pay more in indirect taxes. In contrast, wealthier households gain disproportionately from indirect subsidies. The incidence of fiscal policies reveals who ultimately bears the burden of a tax or receives the benefit of government spending, which may differ from who is statutorily responsible for paying the tax. MENA's tax systems face significant challenges in balancing revenue generation and equity. While direct taxes have the potential to reduce inequality, their limited implementation weakens their impact. Indirect taxes, although a key revenue source, often contribute to increased poverty and inequality, as the poorest households are negatively affected. Comprehensive fiscal reforms are needed to optimize the role of both direct and indirect taxes in promoting inclusive growth and development. Direct transfers, including health and education services, are well-targeted, benefiting the poorest deciles and effectively reducing inequality. Direct transfers are well-targeted and play the most significant role in poverty reduction. Indirect subsidies, particularly in the energy sector, have remained untargeted, benefiting higher-income households who consume more energy. The inefficiency and regressive nature of these subsidies hinder social equity. Reforming energy subsidies is essential for improving economic sustainability, reducing inequality, and supporting the transition to a greener energy future. Furthermore, addressing the challenges in health and education, such as unequal access and low quality within rural and urban areas, limit the full potential of education and health spending.

Ghana Market Access and Connectivity Project for Ghana, with the development objective to improve and sustain all-season farm-to-market road connectivity in selected districts of Ghana. Component 1: Rehabilitation of feeder roads, focused on upgrading approximately 1,050 kilometers of rural links using a multicriteria framework to connect high-production areas to markets, integrating climate-resilient drainage and structures, road safety features for vulnerable users, universal accessibility in settlements, targeted measures to increase women’s employment on works, and exploration of last-mile fiber optic conduits and better access to warehouses and logistics facilities. Sub-components: 1.1 Improvement of all-weather road access from farm-gates to markets through rehabilitation and climate- and safety-informed designs; 1.2 Supervision of road rehabilitation and maintenance works by decentralized, resident firms to ensure quality and compliance; 1.3 Implementation of the Resettlement Action Plan to address land acquisition and livelihood impacts prior to civil works. Component 2: Road maintenance and support to the Road Maintenance Trust Fund reforms, establishing performance-based contracts to maintain rehabilitated roads over the project life and embedding predictable funding and supervision for sustainability. Sub-components: 2.1 Maintenance of feeder roads rehabilitated under the project through performance-based contracts to preserve all-season access; 2.2 Support to the Road Maintenance Trust Fund reforms, including technical assistance to strengthen revenue mobilization and allocation, update the National Tolling Policy, improve axle load regulation, and develop an enterprise resource planning platform (ERP) interfaced with the Web-based Integrated Geographic Information System Road Asset Management System (WIGRAMS); and Road Asset Management through expanded asset and traffic data collection, annual inventories, and enhanced use of WIGRAMS for evidence-based planning and budgeting. Component 3: Project management and implementation support to fund operational costs, fiduciary audits, monitoring and evaluation, a Grievance Redress Mechanism, citizen engagement, and capacity building for implementing agencies and contractors. Sub-components: 3.1 Project management and implementation support for systems, procurement, and training; 3.2 Strengthening national Environmental, Social, Health and Safety institutional capacity, supporting the Environmental Protection Agency, the Department of Factories Inspectorate, and the Lands Valuation Division to improve regulatory compliance, occupational health and safety oversight, and land acquisition and resettlement practices, including measures to prevent and address sexual exploitation and abuse and sexual harassment risks. Component 4: Contingent Emergency Response Component to enable rapid reallocation of uncommitted funds in case of eligible emergencies, guided by a Contingent Emergency Response Component Manual and an Emergency Action Plan consistent with Environmental and Social Framework requirements.

This presentation explores the importance of quality assurance systems in delivering effective childcare services and improving child development outcomes. It highlights the essential components of childcare quality, emphasizing that both structural factors, such as safe environments, adequate materials, and trained staff, and process factors, such as responsive caregiving, play-based learning, and caregiver-child interactions, are necessary for positive outcomes. The presentation discusses common challenges faced by low- and middle-income countries, including inadequate standards and limited regulatory systems, and outlines practical approaches for establishing feasible quality standards, registration processes, workforce development, monitoring systems, and data-driven oversight. It concludes that strong quality assurance systems are critical to ensuring safe, accessible, and nurturing childcare services across diverse settings.

This document relates to the IFC Project Number 51716.