This report on Sudan's Investment Climate Assessment (ICA) provides a baseline assessment of challenges to productivity, diversification and inclusion. Chapter 1 describes some of the questions underlying the three issues of competitiveness, diversification and broad-based growth. Chapter 2 analyzes firm performance and competitiveness. Chapter 3 discusses markets and trust. Chapter 4 describes the role of the financial sector. Chapter 5 analyses the informal sector. Chapter 6 discusses the conflict-affected private sector development.

In 2005, the Millennium Ecosystem Assessment (MA, 2005) provided the first comprehensive report on global ecosystems, the dependence of human societies on the services provided, current state, and likely future trajectory. The MA identified the failure to value ecosystem services as a major contributing cause. The 2001 environment strategy did not explicitly address environmental valuation, although the focus on poverty and environment implies a need for valuing natural resources and environmental services.

This report analyzes in some detail the risks to project finance and the performance of real-sector investments. Options, futures, derivatives, foreign exchange and more exotic instruments are not specifically addressed. The objectives of institutional investors, such as pension funds, include creation of sustained revenues over a long period of time. Clearly, given this long-term perspective, institutional investors need to be particularly aware of growing risks to their investments in climatically sensitive sectors or regions.

The objectives of the Costing Adaptation through Local Institutions (CALI) study were (a) to identify the costs of adaptation through local institutions, and (b) to investigate which institutions help households adapt to climate variability, which efforts and costs are needed to realize the adaptation options, and how they facilitate adaptation to climate variability. The study was carried out in Ethiopia, Mali, and Yemen. This report discusses the results for Yemen.

In Ethiopia, village surveys were conducted in six villages and two expert workshops were organized to discuss the organization of the study and to evaluate the draft results. Based on household surveys, focus group discussions, and institutional stakeholder interviews, we assessed household vulnerability, analyzed the strategies households adopt to reduce the hazards faced, and evaluated the assistance households receive from institutions. Vulnerability profiles were formulated, which show that household vulnerability differs substantially among and within villages.

The aim of this paper is to provide a strategic overview of a decade of experience in supporting public administrations in their efforts to confront excessive groundwater resource exploitation for agricultural irrigation. Special emphasis is put on a series of on-the-ground pilot projects mainly in South and East Asia and Latin America, which are profiled through a series of boxes introduced in the paper.

This strategic framework serves to guide and support the operational response of the World Bank Group (WBG) to new development challenges posed by global climate change. Unabated, climate change threatens to reverse hard-earned development gains. The poorest countries and communities will suffer the earliest and the most. Yet they depend on actions by other nations, developed and developing. While climate change is an added cost and risk to development, a well-designed and implemented global climate policy can also bring new economic opportunities to developing countries.

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.

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.

This paper empirically explores the political-economic determinants of why governments choose to tax or subsidize trade in agriculture. The authors use a new data set on nominal rates of assistance (NRA) across a number of commodities spanning the last five decades for 64 countries. NRAs measure the effect on domestic (relative to world) price of the quantitative and price-based instruments used to regulate agricultural markets. The data set admits consideration of both taxes and subsidies on exports and imports.

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.