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The 27th World Bank report deals with one of the central challenges of development. It looks at what governments can do to create better investment climates for their societies and has a major effect on economic growth, the rate of unemployment and standards of living. The investment climate contains four core sectors: Stability and security, regulation and taxation, finance and infrastructure, and workers and labor market. If governments really want to reduce poverty, they need to bridge many gaps, build credibility with firms, foster public trust and legitimacy. The World Development Report 2005 explains how good strategies play a critical role for growth and poverty reduction in developing countries.
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