The Indonesian economic quarterly reports on and synthesizes the past three months' key developments in Indonesia's economy. Its coverage ranges from the macro economy to financial markets to indicators of human welfare and development. It is intended for a wide audience, including policy makers, business leaders, and financial market participants, and the community of analysts and professionals engaged in Indonesia's evolving economy.

All countries have a formal economy and an informal economy. But, on average, in developing countries the relative size of the informal sector is considerably larger than in developed countries. This paper argues that this has important implications for housing policy in developing countries. That most poor households derive their income from informal employment effectively precludes income-contingent transfers as a method of redistribution.

This report is intended to provide guidance on best practices in mining licensing, based on examples from low, middle and high income countries in Africa, Asia, North America, and South America. It is not a 'how-to guide' or a licensing implementation toolkit, but rather identifies certain common features of successful mining licensing regimes worldwide that other national or sub-national jurisdictions might usefully incorporate in new mining laws and regulations or revisions or existing ones.

This paper reviews the evidence about the effects of urbanization and cities on productivity and economic growth in developing countries using a consistent theoretical framework. Just like in developed economies, there is strong evidence that cities in developing countries bolster productive efficiency. Regarding whether cities promote self-sustained growth, the evidence is suggestive but ultimately inconclusive. These findings imply that the traditional agenda of aiming to raise within-city efficiency should be continued.

This paper investigates the presence of endogenous peer effects in the adoption of formal property rights. Using data from a unique land titling experiment held in an unplanned settlement in Dar es Salaam, the analysis finds a strong, positive impact of neighbor adoption on the household's choice to purchase a land title. The paper also shows that this relationship holds in a separate, identical experiment held a year later in a nearby community, as well as in administrative data for more than 160,000 land parcels in the same city.

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.

In its report to the September 22, 2008 meeting of the Ad Hoc Liaison Committee (AHLC), the World Bank noted that the Palestinian Authority (PA), Israel, and the international donor community made some progress on the three parallel conditions for Palestinian economic revival, albeit to different degrees. The report notes the dramatic impact of Israel s recent three-week offensive in Gaza and analyzes the variety of recovery and reconstruction schemes being explored by the donor community.

The world faces unprecedented opportunities to reduce global poverty and improve human welfare. Strong global growth and better economic policies in recent years have substantially reduced poverty in many developing countries. However, with the recent financial turmoil in the United States and rising prices for food, oil, and other commodities, the world economy faces heightened risks and volatility. Policymakers around the world face the challenge of maintaining momentum in growth, as well as of improving the quality of growth.

Nonperforming Loans (NPLs) in the banking system constituted 16.5 percent of total loans, owing primarily to the corporate sector. The Credit Bureau, maintained by the Association of Serbian Banks, also discloses dramatic increases in corporate and retail defaults over the past year. NPL resolution and loan loss mitigation is hampered by a still evolving but uneven collateral and enforcement framework that complicates restructuring and leads to delays and lower recoveries in execution procedures.

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.