The World Bank - Working for a world free of poverty

Open Forum Gender: Getting to Equal

World Development Report 2012

Arab World: A New Social Contract

April 2008

International Poverty Centre's resources

UNDP's International Poverty Centre (IPC) has created a new section in their website where all their publications are easily accessible, listed by country and region.

Freedom of Information – Let’s Start Looking beyond the Law

Photo Credit: Trevor Samson, 2002 (WB)There is a lot of attention paid to Freedom of Information (FOI) Acts. The World Bank outlined some of the issues related to the subject both in a World Development Report in 2002, with a chapter on media and also in the book, The Right To Tell. Active research also went on afterwards to identify countries that had an FOI regime and those that did not.  There are clearly many benefits to the public in countries that have enacted FOI laws.

Banking everywhere, and not a single village left out

Only about one-quarter of households living in developing countries have any form of financial savings with formal banking institutions. Even in countries that have experienced substantial development over the last decade or two, this statistic remains stuck stubbornly at a level that would not be acceptable for any other measure of socio-economic development: 10% in Kenya, 20% in Macedonia, 25% in Mexico, 32% in Bangladesh.

 

NT2: Not a World Bank hydropower project

A few weeks ago I wrote that “many perceive NT2 to be a World Bank hydropower project. From my perspective, that’s inaccurate in every respect. More on that in a future posting.” Following intense pressure from my reading public (thanks, Nanda), it’s time to explain what I meant.

First, while the World Bank is a strong proponent of NT2, it doesn’t own or implement the project. NT2 is a project of the Government of Lao PDR, involving an innovative public-private partnership of three key private sector companies and a Lao state-owned enterprise. Together, these four partners own the Nam Theun 2 Power Company (NTPC), which has a contract with the Government to build, own, operate and transfer the NT2 hydroelectric power scheme for the next 25 years or so. The project is being financed with around $1.3 billion of largely private sector money: the World Bank Group is providing risk guarantees that helped establish the private sector confidence to put together this large financing package, as well as a $20 million IDA credit to finance part of the Government’s equity stake in NTPC (which is in turn used to finance some of the social and environmental programs). There are also several other international financial institutions involved in the financing (click on the chart for a larger view).

Small Business Finance - What Works, What Doesn't?

May 5 and 6 will see an interesting conference on small business finance here in Washington DC, covering topics from lending techniques, innovations, the impact of market structure, government interventions and alternatives to bank finance.

The Tabloid Over Your Shoulder

Photo Credit: Flick User fxgeekBefore I joined the World Bank about a year and half ago, I worked for DFID, the British Government's development ministry. DFID is part of the British Civil Service. That means I was a civil servant. And I attended a variety of training courses at the Civil Service College. And the experience taught me a thing or two about the sources of pressures for accountability faced by ordinary civil servants. And here I refer to pressures for accountability emanating from outside the civil service itself. I want to discuss the three leading sources of pressure.

Goodbye Aceh

Img_0171Ulaanbaatar, Mongolia. Early March, Saturday afternoon. Outside temperature: -15 degrees celsius. I am sitting in my hotel room studying a manual on rescue diving. I am confident that I am the only person in all of Mongolia doing this. You can't get much further from an ocean than this.

I'm a bit fuzzy on the chain of events that led to this. But the result is clear - in a few days I will leave Aceh and move to Ulaanbaatar, the coldest capital city in the world, where I will support IFC's work in Mongolia. The thought of leaving Indonesia is actually painful. But the good news is that I'll be able to get my family back together. Because this was not a family post, we have lived apart for nearly two years. My daughter, now four, has become a native Russian speaker. And my son, now seven, has learned to read and write and Skypes me almost every day. I have missed a lot.

There are many things I had planned to write about but never did: camping with former GAM rebels, illegal logging, the delights of cycling among motorbikes, an Acehnese wedding, camping on a haunted, uninhabited island. And there were many things I never got around to doing. I suppose these will have to wait.

New worldwide education statistics and data query tool

The World Bank's EdStats (Education Statistics) collects worldwide data on education from national statistical reports, statistical annexes of new publications, and other data sources. The database has just been updated and its Query tool offers preliminary education indicators for the 2006 school year (with new imput from 93 countries) and the 2007 school year (nine countries).

Check out the interactive Query tool to customize reports by country (or group of countries), choosing from more than 100 indicators over many years. And put your results in a chart or map that you can export to use in your own documents and reports.

Gates opens market doors for farmers

The Bill and Melinda Gates Foundation recently announced that it will increase its budget for farming projects by 50 percent this year as food prices soar around the globe. 

According to its website the foundation will inject  the additional funds into existing projects designed to help farmers cultivate more resilient crops, and helping producers gain better access to markets for their products. The Foundation, created in 1994, focused initially on health and
education. In May 2006 it launched a call for a "Green Revolution" in
Africa.

An English vicar and the frog with no lungs

Priests and vicars have long demonstrated a penchant for biodiversity. There have been missionaries in remote places who have built up and preserved beautiful collections of butterflies, plants etc. which eventually found their way into the great natural history museums of the world.  The Rev. Gilbert White (1720-93) was the classic 18th century English clergyman-naturalist. Over many years he made observations of the plants and creatures he saw and he pulled the strands together in a widely-read book, 'The Natural History of Selborne'.  In a reflective letter to a colleague in 1768 he wrote, "It is, I find, in zoology as it is in botany: All nature is so full that that district produces the greatest variety which is the most examined"

It is in this context that I read the news earlier this month that a small frog, Barbourula kalimantanensis, from Indonesian Borneo, previously known from just a few specimens, had been found to have no lungs.  It is the first frog known to respire solely through its skin but not the first amphibian.  This is a great discovery but maybe not so surprising.  To paraphrase Rev. White, 'the more you look the more you find'.  Nature is so rich, so varied, so surprising, that the existence such an animal would not be totally unexpected. 

Today is the World Malaria Day

The World Malaria Day raises awareness about this devastating disease which:

  • Kills more than one million people every year – most of them children under age five and pregnant women.
  • Kills nearly 3,000 children every day.
  • Is estimated to cost Africa about US$12 billion annually in lost gross domestic product (GDP), slowing GDP growth by as much as 1.3 percent per year.
  • Is a preventable and treatable disease – half of these deaths could be avoided.

Check out the World Bank's Booster Program for Malaria Control in Africa

 

No nets, no soccer

Malaria_soccerToday is World Malaria Day, a few articles have caught my eye lately on the subject. The disease is one of the most deadly in the world, claiming the lives of over one million people annually. In Africa, a child dies every 30 seconds from malaria.

The American professional soccer league, MLS, has partnered with “Nothing But Nets,” a UN Foundation campaign to fight malaria. MLS followed the path of the NBA and other organizations that have joined the campaign. Anyone can donate and with each $10 Nothing But Nets is able to provided one anti-malarial insecticide-treated net.

In another piece of news, Novartis decided cut the price of its anti-malarial drug Coartem by 20 percent starting today. The company said the price reduction was made possible through efficiency gains after expanding its operations - makes one wonder how long Novartis has been waiting for Malaria Day.

To learn more about the disease and even to take quiz on the subject you can visit the World Bank’s Web site on malaria.

Fridays Academy: Gender and Economic Growth

From  Raj Nallari and Breda Griffith's lecture notes.

Gender Inequalities and Economic Growth

At the outset, we expect a simultaneous relationship between gender inequality and economic growth. Stotsky (2006) states that “gender disparities lead to weaker economic growth and that stronger economic growth leads to reduced gender disparities” (p. 17). “Growth may affect gender inequalities by breaking down barriers to women’s work participation, by reducing the time spent in the home on non-market labor, and by changing institutional mores. We will examine basic statistical evidence, followed by theoretical evidence and finally empirical studies that develop a model that includes growth and gender equality.

 

Statistical relationships between gender inequalities and economic growth

Sweeter than sugar?

Olpcxo613016Nicholas Negroponte’s longtime MIT colleague Walter Bender has recently left the One Laptop per Child program. Bender was responsible for software and content for "XO" laptops including its innovative Sugar operating system. This all happened amidst OLPC’s move to change its open-source approach as it welcomes Microsoft’s Windows operating system. Bender will now try to further the development of the XOs' Sugar, and get it to run on Linux computers other than XOs.

Bender's departure is the second big executive loss to be added to OLPC's setbacks and reportedly Negroponte wants OLPC to operate more efficiently. An executive-search firm has been trying to hire a chief executive for the group for more than a year – anyone needs a job?

For the record: The Bank is *not* warning about Thailand's rice export risks

I see there has been some blog chatter about the World Bank's position on Thailand's rice exports. Let me take the chance here to set the record straight: Thailand is a great international trading partner, it's commited to maintaining its rice exports, and we support this action. This is very important at this time of food price hikes and it's the responsible thing to do.

(The chatter --see some examples here and here-- started with a Bloomberg story  published yesterday).

Where do you find information on Nam Theun 2?

If you’ve read any of the posts in my blog so far, you’ll notice that I’ve mentioned multiple times how much information there is on Nam Theun 2. One of the cornerstones (pdf) for the World Bank’s involvement on NT2 was that the project would be handled in a transparent manner, and that’s why all of the key reports on NT2 are publicly available. The aim of being transparent means that key documentation related to the project as it was being developed and now implemented is public, that the Bank proactively keeps people informed about what is happening (ahem, the blog for one), and that there would be continuous outreach to stakeholders including local and international consultations.

Assessment of impacts to fisheries, resettlement plans, environmental mitigation measures, economic studies, the famous Concession Agreement, independent assessments, semi-annual progress reports from the World Bank… they are all available on the web (see more below). Moreover open channels of communications are ongoing, meaning that -- for example from the World Bank side -- if you, reader, whoever you are, write to me with a question or comment, I will make sure to answer and point you to the relevant information, or put you in touch with one of my colleagues, or arrange a field visit if necessary.

The Titanic, Rivets, and . . . the Public Sphere?

It may seem like a bit of a reach to connect the recent book about faulty rivets on the Titanic with the public sphere, but bear with me. I've long wondered about whether and how public safety issues connect up to larger issues of a free press, oversight, corruption, and the public sphere. In the book, the authors allege that, due to time and cost pressures, weaker rivets were used by the shipbuilding company that built the Titanic, and that those contributed to the fault lines that ultimately led to the Titanic's sinking. The company that built the Titanic has disputed these allegations.

Earth Day celebration ideas

Planet To celebrate Earth Day some people join protest rallies, some others disappear into the wild, but here is a list of more conventional ideas. Feel free to send your own.

  • Calculate your carbon footprint (and preferably try to reduce it).
  • Plant a three to offset 730kg of carbon emissions (if not one cuts it down).
  • Bike to and from work.
  • Recycle (even if no one is looking).
  • Avoid plastic bags.

China’s economic year of living dangerously

Last week China reported its first quarter GDP data.  Consumer inflation for the quarter was 8%, which is too high, but we already knew that.  The main news was that GDP growth came in at 10.6% year-on-year.  This is down from last year’s 11.7% rate, but higher than most forecasts for 2008 (including the Bank’s revised 9.4% forecast).  There was a healthy decline in the trade surplus for the quarter of about $5 billion or 10%.  The trade adjustment took a good form in that exports grew at a respectable 21% rate while imports surged 29%.  Most of this increase in exports was to the European Union, while growth of exports to the U.S. moderated to a 5% rate.  All of this looks to be in the direction of the rebalancing that China is trying to achieve.

About the same time that the data came out I gave a talk at the Institute for International Economics (link corrected on Jan. 12, 2009) in Washington, DC, with some excellent economists and China experts present.  The tone of my remarks was cautious optimism that China is gradually shifting toward more domestically driven growth and has the potential to weather the downturn in the U.S. and the global economy rather well.  Some participants agreed with this relatively upbeat assessment, but a number of economists thought that the risks of a much more negative outcome were pretty high.  It is useful to run through the thinking behind the pessimistic view in order to be prepared with measures to counter a sharp downturn if it starts to develop.

Clamorous Ethnicities

In my last post, I discussed one of the supreme values undergirding the democratic public sphere: the public use of reason, that is, a commitment to reason, to argumentation, and the possibility of agreement. I discussed the threat posed to that value and the possibilities of the public sphere if claims are based on the supposed demands of a Deity. But irrationality in the public sphere comes from another source as well: the loud and insistent claims of ethnic champions in complex, multiethnic polities.

Now, it is well-known that the problem of politicized ethnicity bedevils quite a few developing countries. Less well known is the peculiar challenge that this problem poses for governance reform. I will use an example that I know well but disguise the name of the country.

Sustainable banking awards: who's winning what?

The Financial Times and IFC announced shortlists of potential winners for the 2008 Sustainable Banking Awards. The awards recognize financial institutions that have led the way in integating their policies with social, environmental, and corporate governance objectives. Below is a sample the categories and the shortlisted candidates, the full list is available here.

Sustainable Bank of the Year

  • Banco Real, Brazil
  • Citi, US
  • HSBC, UK
  • Rabobank, Netherlands
  • Standard Chartered, UK

Sustainable Deal of the Year

  • BlueOrchard Finance, Switzerland/Morgan Stanley, US (microfinance loans)
  • Calyon, France (solar thermal power plants)
  • Citi, US (financing for rural housing)
  • Glitnir Bank, Iceland (geothermal power generation)
  • Merrill Lynch, US (carbon finance to reduce deforestation)

Banking at the Bottom of the Pyramid

  • ASA, Bangladesh
  • Banco Bradesco, Brazil
  • ICICI Group, India
  • Opportunity International, UK
  • Wizzit, South Africa

Futarchy: buzzword or viable option?

There's been a lot of buzz about prediction markets recently:

  • A McKinsey & Co. report on prediction markets quotes James Surowiecki: "I wouldn’t be surprised to see prediction markets used in many more companies than today, not least as a tool to forecast sales. Consumer-facing companies should be particularly interested."
  • Knowledge Management gurus Tom Davenport and Dave Snowden jumped into the fray to cool easy enthusiasm.
  • An article in the New York Times introduces the concept of futarchy. According to Robin D. Hanson, an economist at George Mason University and a fan of alternative institutions, futarchy is "a form of government enhanced by prediction markets. Voters would decide broad goals of national welfare, but betting in speculative markets would determine the policy steps to achieve those goals."

Is "futarchy" a viable option for enhancing bottom-up participation in setting development policies? So, far, to my knowledge, Globalgiving has been the only entity to experiment with decision markets in a development context. I look forward to learn about the results of its pilot.

PS: After this post was published the Financial Times  published an article with a number of intersting examples of applications of predictions market to the non-profit sector. 

Fridays Academy: Gender and Macroeconomics

As usual on Fridays, from  Raj Nallari and Breda Griffith's lecture notes.

 

Savings

Stotsky (2006) notes that gender relations may also impact savings behavior, most certainly at the level of the household but also domestically, internationally and with regard to preferences for risk-taking.  At the level of the economy, gender-based differences influence domestic savings with implications for investment and economic growth.  Furthermore, investment behavior arising from gender-based differences in savings may have implications for exports and imports.

Locally-grown food in the middle of New York City

New York Magazine asked four architects to design whatever they would like for a full city block of space with no clients to worry about. One design offered was a vertical farm, complete with water tanks and each floor would be used for the cultivation of a different crop. Amale Andraos, of Work AC, the firm responsible for the intriguing idea, said in the article that they “are interested in urban farming and the notion of trying to make our cities more sustainable by cutting the miles [food travels].”


Ok, maybe that’s taking sustainable design to an extreme; does anyone have more eco-friendly (and preferably profitable) ideas?