Investment Rating - The report does not explicitly provide an investment rating for the industry analyzed Core Insights - The paper investigates how shifts in investor demand, particularly from institutional investors, influence firm financing and investment decisions, utilizing a significant MSCI methodological reform as a case study [2][10][18] - The findings indicate that firms experiencing larger predicted inflows due to the MSCI rebalancing increased both equity and debt issuance, with a notable emphasis on debt financing [14][15][18] - The research highlights that institutional investor demand shocks not only affect asset prices but also significantly shape corporate financing and investment behaviors [18][22] Summary by Sections Introduction - The amount of assets managed by institutional investors has grown significantly, reaching 132% of global GDP by 2020, up from 84% in 2004, making them central to global capital allocation [7] - Increased demand for equities from institutional investors can lower firms' cost of equity capital, potentially expanding their investment capacity [7][9] Institutional Setting - The MSCI indexes are crucial benchmarks for institutional investors, with firms included in these indexes accounting for about 50% of total capital raised in equity and debt markets between 2010 and 2015 [25] The 2000-2002 Rebalancing - The MSCI rebalancing involved a shift from total to free-float market capitalization, affecting 2,508 firms across 49 countries, leading to significant changes in investor demand unrelated to firm performance [11][27] Changes in Investor Demand and Capital Raising Activity - Firms with positive predicted inflows raised significantly more capital post-reform, with a 1.5 percentage point increase in capital raised over market capitalization compared to firms with negative inflows [46] - The increase in issuance was evident in both equity and debt markets, with firms raising about 0.4 percentage points more equity and 0.8 percentage points more debt [47] Investment Responses - Firms with positive predicted inflows increased total investment by about 3 percentage points relative to firms with negative inflows after the reform, with significant increases in capital expenditures, mergers and acquisitions, and research and development [60][61] - The allocation of funds raised in capital markets showed that a median firm allocated approximately 62 cents to acquisitions for every dollar raised, indicating a strong focus on M&A [65]

Investment Rating - The report does not explicitly provide an investment rating for the industry analyzed Core Insights - The report highlights that digital skills command substantial wage premiums globally, particularly in low- and middle-income countries where such competencies are scarce. Requiring at least one digital skill raises advertised wages by an average of 1.6%, with returns of 1.3% in high-income countries and 7.5% in low- and middle-income countries. Each additional digital skill increases wages by 0.5% in high-income countries and 2.6% in low- and middle-income countries. Advanced skills yield even higher premiums, with traditional AI skills offering returns of 2.9% across all countries, and generative AI skills demonstrating the highest premiums, reflecting their productivity potential and current scarcity [5][15][18]. Summary by Sections Introduction - The report discusses the transformative impact of digital technologies on labor markets and the increasing demand for digital skills, emphasizing the need to reassess which digital competencies remain economically valuable as basic skills may no longer suffice [11][12]. Data and Methodology - The analysis utilizes a dataset of over 67 million online job postings from 29 countries between 2021 and 2024, allowing for a detailed examination of wage returns to digital skills across various dimensions [14][31]. Findings - Jobs requiring digital skills are associated with significantly higher advertised wages, with a wage premium of 1.6% for requiring at least one digital skill. The premium is notably higher in low- and middle-income countries, reaching 7.5% [15][57]. - Each additional digital skill correlates with a 0.5% wage increase globally, and 2.6% in low- and middle-income countries, indicating a strong demand for digital competencies [60]. - Returns vary by skill type, with traditional AI skills yielding a 3% wage increase per skill, while generative AI skills command premiums of 7%–9% in technical roles and 25%–36% in non-technical roles [18][19]. Conclusion - The findings underscore the critical importance of digital skills for individual earnings and economic development, particularly in low- and middle-income countries, highlighting the need for targeted training and education to bridge the digital skills gap [5][19].

Economic Growth - Vietnam's GDP growth accelerated to 8% in 2025, up from 7.1% in 2024, driven by strong exports and increased public investment[1] - Exports grew by 16.7% in 2025, reaching a record $153 billion, primarily due to high-tech and electronic products exported to the U.S.[7] - Foreign Direct Investment (FDI) reached $27.6 billion in 2025, a 9% increase from the previous year[7] Trade and Investment - Imports rose significantly by 19.4% in 2025, reflecting growth in intermediate trade[7] - Net exports began to drag on overall growth, contrasting with previous years when they contributed positively[1] - Public investment is projected to total 8.5 trillion VND (approximately $400 billion) from 2026 to 2030[1] Inflation and Financial Conditions - Headline inflation averaged 3.3% in 2025, below the target of 4%-4.5%, aided by declining global energy prices[8] - Despite rapid credit growth, financial conditions tightened marginally due to ongoing exchange rate pressures and slow deposit growth[1] - The dong depreciated by 3.6% in 2025, limiting the central bank's ability to lower interest rates[8] Banking Sector and Credit Growth - Credit growth reached approximately 145% of GDP in 2025, with a year-on-year increase of 19%[9] - Banks issued $16 billion in bonds in 2025, a 31% increase, to secure medium- to long-term funding[9] - The central bank raised the credit target for commercial banks from 16% to 19% in 2025[9] Structural Reforms - Significant reforms were initiated in 2025, including the merger of government departments and provinces to enhance administrative efficiency[10] - Revisions to public finance laws aim to improve budget allocation and execution, thereby accelerating public investment[10] - Ongoing reforms are expected to enhance policy execution and the investment environment, boosting investor confidence and productivity[10]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The Human Capital Index Plus (HCI+) measures the average human capital a child born today can expect to accumulate over their working life, highlighting significant disparities in human capital across countries [4][8] - On average, children born today in low- and middle-income countries will forgo 51% of their future potential earnings due to current levels of human capital development [1][19] - The HCI+ reveals that a child born today could earn 47% more globally if their country's human capital matched that of top performers at similar income levels, with a 51% increase for low- and middle-income countries [19][20] Summary by Sections Introduction - There are vast productivity differences across countries, with GDP per hour worked in the most productive countries being over 30 times that of the least productive [3] - Two-thirds of low- and middle-income countries have seen a deterioration in core dimensions of human capital over the past 15 years [3] Human Capital Index Plus (HCI+) - The HCI+ extends the original Human Capital Index by measuring human capital accumulation beyond age 18, focusing on health, education, and employment up to age 65 [6][8] - The index is decomposable, allowing for easy identification of components contributing to observed gaps in human capital [6] Global Patterns - Human capital deficits exist in all countries, with significant disparities; on average, countries operate roughly 40 points below best-in-class performance [25] - Regions below the global HCI+ average could increase future labor earnings by 58% to 76% if they matched top performers [32][34] Gender Gaps - There is a 20-point difference in the HCI+ between men and women globally, translating to 20% lower labor earnings for women [42][44] - Closing gender gaps in regions like MENAAP and South Asia could lead to potential earnings increases of 70% and 56% for women, respectively [44][46] Policy Recommendations - The report emphasizes the need for targeted investments in nutrition, health, education, and employment to address human capital shortfalls [50][51] - It advocates for broader policy approaches that include home environments and neighborhoods, as well as workplace learning opportunities [53][55]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The Human Capital Index (HCI) measures the expected human capital a child born today can attain by age 18, considering health and education risks in their country [11][21] - The revised Human Capital Index Plus (HCI+) extends the HCI by incorporating human capital accumulation through higher education and skills acquired during working life, recognizing that human capital development continues beyond formal schooling [14][39] - The HCI+ tracks human capital across three domains: health, education, and on-the-job learning, allowing for a more comprehensive understanding of productivity impacts [15][43] Summary by Sections Introduction - Human capital encompasses health, knowledge, skills, and resilience, which are crucial for productivity and economic growth [10][20] - Investments in human capital can lead to sustainable growth and poverty reduction, but countries often underinvest due to delayed benefits [10][20] HCI and HCI+ Methodology - The HCI measures human capital accumulation from birth to age 18, while the HCI+ extends this measurement into adulthood, capturing ongoing human capital development [24][39] - The HCI+ is designed to be responsive to current policies and outcomes, making it more relevant for policymakers [33] Components of HCI+ - The HCI+ includes three domains: - Health and nutrition, which considers stunting and adult survival rates [44] - Education, which evaluates years of schooling and learning outcomes [45] - On-the-job learning, which assesses work experience and labor market participation [46] - Each domain's contribution to productivity is quantifiable, allowing countries to identify areas needing improvement [15][43] Economic Implications - A 1% increase in HCI+ is associated with a 1% increase in average earnings potential, which can correlate with GDP growth in the long term [56][57]

Investment Rating - The report does not explicitly provide an investment rating for the dual apprenticeship program in Côte d'Ivoire, but it indicates that the program is effective in improving youth employment outcomes and reducing working poverty, suggesting a positive outlook for investment in similar initiatives. Core Insights - The dual apprenticeship program leads to a 14 to 20 percent increase in youth earnings two to five years after completion, with significant gains across the earnings distribution [4][14][62] - The program reduces the share of youth in extreme working poverty by 7.3 percentage points and working poverty by 6.9 percentage points, indicating a substantial impact on poverty reduction [14][40][64] - The earnings gains primarily arise from self-employment rather than wage employment, highlighting the program's effectiveness in enhancing skills and productivity in informal labor markets [15][50][63] Summary by Sections Introduction - The report addresses the challenges of low-paying jobs and high working poverty in low- and middle-income economies, emphasizing the need for effective skills training programs [11][12] Experimental Design and Data - The dual apprenticeship program was implemented as a randomized controlled trial targeting youth aged 18 to 24 in Côte d'Ivoire, combining on-the-job training with technical skills training [22][24] Results - Earnings increased by 9,394 FCFA (15%) two years post-program, with sustained increases of 11,505 FCFA (19.6%) and 12,127 FCFA (13.5%) three and five years post-program, respectively [40][60] - The program significantly reduced the incidence of extreme working poverty and improved task complexity and productivity among participants [40][43][64] - The increase in earnings was primarily driven by self-employment, which rose by 6,138 FCFA (26.7%) post-program, while wage employment did not show significant gains [50][52] Conclusion - The findings suggest that dual apprenticeships can effectively reduce working poverty and improve employment outcomes in informal economies, providing a viable pathway for skill upgrading and better-paying jobs [62][63][64]

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The report highlights significant differences in productivity between women-run and men-run private hotels in Georgia, emphasizing the importance of considering technological heterogeneity when analyzing productivity gaps [4][11][21]. - Women-run hotels demonstrate a higher technical efficiency by 21 percentage points compared to men-run hotels, but this advantage is largely negated by the inferior technology available to women due to socio-cultural and economic factors [4][63]. - The findings indicate that the technology gap has a more pronounced effect on productivity at lower efficiency levels, illustrating a "sticky floors" effect, while no such evidence is found for overall efficiency [4][21]. Summary by Sections Introduction - The report discusses the productivity gap between women and men managers in the hotel sector, challenging the assumption of technological homogeneity and introducing the concept of technological heterogeneity to better understand these differences [11][12][21]. Hotels Sector and Gender Equality in Georgia - As of February 2024, Georgia has 1,232 registered hotels with a total capacity of 37,788 rooms and 85,149 beds, showing significant growth despite the COVID-19 pandemic [22][23]. - Gender inequality persists in Georgia, with women spending significantly more time on unpaid domestic work and earning 24.6% less than men for the same work [24][26]. Methodology - The report employs Data Envelopment Analysis (DEA) to measure hotel efficiency, using an input-oriented model with variable returns to scale [27][28]. - The meta frontier analysis is utilized to distinguish between technical efficiency and the technology gap, providing a clearer picture of productivity differences [4][21]. Baseline Results - The average meta efficiency of hotels in Georgia is 0.48, indicating that hotels can reduce inputs by 52% without affecting output [57]. - Women-run hotels have a mean technical efficiency of 0.69, significantly higher than the 0.48 for men-run hotels, demonstrating better exploitation of available technology [60]. - The mean meta technology ratio (MTR) for men-run hotels is 0.99, while it is only 0.71 for women-run hotels, indicating a substantial technology gap [62]. Propensity Score Matching - The report uses propensity score matching to estimate the causal impact of gender on efficiency, confirming that women-run hotels have higher technical efficiency by 24.9 percentage points compared to men-run hotels [75]. Robustness - Various alternative measures of efficiency were tested to ensure the robustness of the findings, confirming the initial results regarding productivity gaps [78].

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Digital skills are increasingly important in the labor market, with individuals possessing advanced digital skills earning, on average, 18.9 percent higher wages than those without such skills [2][12] - The wage premium for high digital skills varies significantly across regions, with Central Asia showing a premium of 47.7 percent, followed by Eastern Europe at 26.7 percent, and the South Caucasus at 23.5 percent [12] - Approximately 43.7 percent of individuals in the Europe and Central Asia region report a complete absence of digital skills, indicating a significant gap in digital competencies [11][31] Summary by Sections Introduction - Human capital, including digital skills, is crucial for productivity and earning capacity, influencing economic growth and poverty reduction [7][8] - The paper emphasizes the role of digital skills in reshaping employment prospects and economic development [8] Literature Review - Previous studies indicate a strong correlation between education and earnings, with a 10 percent increase in earnings for each additional year of schooling [15] - Digital skills are identified as a key form of human capital, with significant impacts on labor market outcomes [16][17] Empirical Strategy - The study employs a modified Mincerian equation to analyze the impact of digital skills on wages, focusing on individual-level wage regression [24][25] Data - The analysis utilizes data from the Life in Transition Survey, covering 30 countries in Europe and Central Asia, with a focus on socio-economic conditions and digital skills [27][28] Results - The findings reveal that education level is the most significant determinant of digital skill acquisition, with a university degree increasing the likelihood of high digital skills by 32.4 percentage points [58] - Individuals from low-income households are significantly less likely to acquire high digital skills, with a reduction of 17.6 percentage points in probability [58] - Gender and urban residency also influence digital skill acquisition, with men and urban residents more likely to possess high digital skills [64][66]

Investment Rating - The report does not provide a specific investment rating for an industry or company Core Insights - Intergroup hate is a pervasive issue that is escalating globally, driven by normalized hate speech, the proliferation of hate groups, and a political climate that increasingly frames opponents as enemies rather than partners [9] - The report synthesizes ten drivers of intergroup hate into four interlocking components: history, current context, call to arms, and justification of mistreatment, forming a self-reinforcing cycle that legitimizes harm and escalates animosity [3][10] - Interventions can disrupt this cycle at multiple points through coordinated psychosocial, institutional, and economic strategies, particularly emphasizing the importance of context-sensitive and integrated approaches [3][10] Summary by Sections 1. Understanding Intergroup Hate - Intergroup hate is defined as animosity and mistreatment of members of other groups, justified as necessary and good [16] - The report emphasizes that hate is a complex social phenomenon shaped by intergroup dynamics, rather than merely an emotional response [16][19] 2. The 10-Reason Cycle of Hate - The cycle includes four components: History, Current Context, Call to Arms, and Justification of Mistreatment, which mutually reinforce each other [22][23] - Each component contributes uniquely to the escalation of hate, with interventions showing potential to interrupt the cycle at various points [10][62] 3. Historical Context - Group history and personal/family history play critical roles in shaping perceptions and behaviors toward outgroups [30][34] - Educational institutions are highlighted as key sites for reshaping historical narratives to promote tolerance and reduce hate [65][66] 4. Current Context - The current context influences intergroup relations through identities and norms, competition and loss, threat, and lack of control and uncertainty [36][74] - Promoting shared identities and cooperation is essential for breaking the cycle of hate, requiring careful management of intergroup dynamics [75][76] 5. Call to Arms - Leadership and media are pivotal in mobilizing intergroup hate, with leaders often using historical narratives to gain authority and influence [49][52] - Media amplifies leaders' messages and can incite hostility, shaping public perception and contributing to intergroup conflict [52][53] 6. Justification of Mistreatment - Justifications for mistreatment arise from moralization and dehumanization, framing hostility as a defense of moral values and reducing empathy for outgroups [55][58] - These justifications reinforce the cycle of hate, normalizing discriminatory policies and embedding mistreatment into societal structures [60][61] 7. Interventions - The report discusses promising interventions to break the cycle of hate, emphasizing the need for early warning systems to detect hate before it escalates [63][64] - Effective interventions include reshaping collective memory, promoting shared identities, and fostering cooperation among diverse groups [65][74]

Investment Rating - The report does not explicitly provide an investment rating for the industry analyzed Core Insights - The paper examines how suppliers adjust their decarbonization strategies in response to validated emission-reduction targets set by major customers, revealing that downstream climate pressure leads to both real and symbolic responses among suppliers [5][12][14] - High-emission suppliers tend to make substantial operational adjustments, reducing their emission intensity, while low-emission suppliers primarily increase their reliance on carbon offsets, often from lower-quality projects [19][21][22] Summary by Sections Introduction - The increasing adoption of climate commitments by large corporations necessitates suppliers to disclose emissions and adopt climate policies, yet the response of suppliers to such pressures remains unclear [12][13] Findings - Suppliers whose customers obtain Science Based Targets initiative (SBTi) approval are more likely to adopt their own climate targets, with an average reduction in emission intensity of 8.8% following customer target approval [15][62] - The use of carbon offsets increases significantly among suppliers after customer SBTi approval, with a 159% rise in offset intensity relative to industry peers [16][63] - High-emission suppliers show a 15% reduction in total emissions and a 19% decline in emission intensity, while low-emission suppliers exhibit a 267% increase in offset intensity without reducing total emissions [72][73] Offset Quality - Suppliers facing downstream pressure tend to retire lower-quality offsets, indicating a preference for quantity over quality in their compliance strategies [80] - Firms engaging in genuine emissions reductions tend to select higher-quality offsets, suggesting a distinction between symbolic compliance and substantive operational changes [80] Customer Target Announcements - Customer announcements of climate commitments, even without validation, lead to limited supplier responses, primarily resulting in symbolic adjustments rather than meaningful operational changes [85][89]