The paper focuses its analysis on the last three decades of the twentieth century. The basic assumption is that Egypt's economic performance during this period was less than satisfactory compared with the most successful examples in the far East and elsewhere. The paper also assumes that Egypt's initial conditions at midcentury compared favorably with the winners in the development race at the end of the century. Egypt has achieved positive progress, no doubt, yet compared with the higher performers in Asia, and given its favorable good initial conditions, the record seems quite mediocre.

South Africa's growth experience provides an example of how contrasting growth trends long-term decline followed by improved growth pivot around political change, in this case a transition to democracy. In the decade prior to 1994, South Africa experienced the worst period of economic growth since the end of the Second World War, with growth variable and declining.

The real exchange rate was not at the center of the first generation of neoclassical growth models, nor was it prominent among the policy prescriptions that flowed from those models. Recent analyses, in contrast, have paid it more attention. This paper analyzes the role of the real exchange rate in the growth process, the channels through which the real exchange rate influences other variables, and policies useful (and not useful) for governing the real rate. An appendix provides econometric evidence supportive of the emphases in the text.

There is no longer any serious debate about whether greenhouse gas emissions from human activity are altering the earth's climate. There is also a broad consensus that efficient mitigation of emissions will require carbon pricing via market based instruments (charges or auctioned tradable permits). The remaining controversies stem mostly from economic and technological forecasting uncertainties, disputes about global and intergenerational equity, and political divisions over collective measures to combat climate change.

The operations policy on Development Policy Lending (DPL), approved by the Board in August 2004, requires that the Bank systematically analyze whether specific country policies supported by an operation are likely to have "significant effects" on the country's environment, forests, and other natural resources. The implicit objective behind this requirement is to ensure that there is adequate capacity in the country to deal with adverse effects on the environment, forests, and other natural resources that the policies could trigger, even at the program design stage.

Climate change presents a profound challenge to food security and development. Negative impacts from climate change are likely to be greatest in regions that are currently food insecure and may even be significant in those regions that have made large gains in reducing food insecurity over the past half-century. Adaptation in the agricultural sector is being given a high priority within this effort because of the inherent sensitivity of food production to climate and the strong inter-linkages that exist between climate, agriculture, and economic growth and development.

This paper tracks the process through which FIAS, the investment climate advisory service of the World Bank Group advised the government of Latvia from 1998 to 2004 on ways to improve the business environment, achieve higher rates of economic growth, and thereby alleviate poverty. This case study shows that it is reasonable to describe how assistance by FIAS led to an improved business environment.

The Country Environmental Analysis (CEA) for Timor-Leste identifies environmental priorities through a systematic review of environmental issues in natural resources management and environmental health in the context of the country's economic development and environmental institutions. Lack of data has been the main limitation in presenting a more rigorous analysis. Nevertheless, the report builds on the best available secondary data, presents new data on the country's wealth composition, and derives new results on the costs of water and air pollution.

This paper explores how a 'conflict and violence sensitive' framework in project assessment, design and implementation facilitates early identification and mitigation of negative consequences of competition and dispute, and promotes sustainable development over the longer term. It discusses the role of renewable resources in perpetuating conflict and violence, and distills lessons from selected development programming experiences in managing conflict risks associated with these dynamics.

Capitalizing on the most recent estimates of agricultural price distortions in China and in other countries, this paper assesses the economic and poverty impact of global and domestic trade reform in China. It also examines the interplay between the trade reforms and factor market reforms aimed at improving the allocation of labor within the Chinese economy. The results suggest that trade reforms in the rest of the world, land reform and hukou reform all serve to reduce poverty, while unilateral trade reforms result in a small poverty increase.

On August 25, 2009, the 13th Government of the Palestinian Authority (PA) presented a program entitled "Palestine: ending the occupation, establishing the state" (hereafter referred to as the program) outlining several national goals, including the achievement of 'economic independence and national prosperity'. The program accords high priority to the development of the public institutions of the PA in order to achieve the stated national goals.

This paper analyzes the political and institutional factors which are behind the dramatic changes in distortions to agricultural incentives in the transition countries in East Asia, Central Asia, and the rest of the former Soviet Union, and in Central and Eastern Europe. The paper explains why these changes have occurred and why there are large differences among transition countries in the extent and the nature of the remaining distortions.