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September 2009

'I'll Be Gone and You'll Be Gone'

Sina Odugbemi's picture

There was an article in the New York Times recently with the title 'What's Really Wrong With Wall Street Pay?'  In the article, the writer discusses a problem world leaders want to do something about but are not sure how. How do you stop compensation packages for bankers and traders in global markets from encouraging them to take the kinds of wild risks that have done so much damage to the global economy?  I wish the leaders the very best of luck in dealing with that one. Success in the endeavor is far from certain...to put it gently.

What caught my eye as I was reading the piece is what the writer says bankers call the "I.B.G-Y.B.G." problem, as in 'I'll be gone and you will be gone'. It is the moral hazard problem. Traders in global markets take incredible risks and recklessly, they collect their bonuses and move on. The firm takes all the risk. Well, it turns out that taxpayers take risks as well, since governments have had to bail out so many banks deemed too big to fail.

Returning to Siberut: 30 years later, little has changed on remote Indonesian island

Tony Whitten's picture

Go anywhere after a 30 year break and you expect to see change – and you hope things will be better. Thus my wife Jane and I, together with our four children, were intrigued to see what life was like now on Siberut, the largest and most northerly of the Mentawai Islands off the west coast of Sumatra, when we visited it a few weeks ago. Jane and I had lived in a hut in the middle of the island conducting wildlife research for over two years until 1978. We wanted to see our closest friend there, Potifar Tengatiti Siribetuk, as well as other old friends, our old study area, some of the remaining traditional houses, and as many of Siberut’s four endemic species of primates as we could.

Visiting the island and the provincial capital of Padang also provided an opportunity to observe the impacts of the $1 million of grants which had focused on Siberut under the Phase 1 of the World Bank-implemented Critical Ecosystem Partnership Fund. These grants had followed on from an Asian Development Bank loan project (pdf) from 1992-2000 which was not a resounding success for a variety of reasons. This had itself followed on from WWF projects.

"Finance isn't a game"

Anne-Katrin Arnold's picture

The financial crisis has prompted some discussion about the role of the media in this particular recession. From the perspective of accountability that's an interesting question: What if the media become cheerleaders for those they are supposed to hold accountable? According to some reports in the Financial Times earlier this year this has indeed happened this year and last, or, at least, the media has failed it's mandate as watchdog during and leading up to the current financial crisis.

Supporting Low Carbon Development: Six country cases

Jane Ebinger's picture

A year ago I was assigned from a World Bank operations team providing support to countries in Europe and Central Asia on energy, climate mitigation and adaptation to work in a Bank administered trust fund, the Energy Sector Management Assistance Program (ESMAP), as a thematic coordinator for energy and climate change in this program. One of my roles is to coordinate a program that is providing support to six emerging economies—Brazil, China, India, Indonesia, Mexico and South Africa—that are proactively seeking to identify opportunities and related financial, technical and policy requirements to move towards a low carbon growth path.

The program has been underway for two years and individual country studies have been managed by World Bank operational teams. The governments of these countries have initiated country-specific studies to assess their goals and development priorities, in conjunction with greenhouse gas (GHG) mitigation opportunities, and examine the additional costs and benefits of lower carbon growth. This requires analysis of various development pathways—policy and investment options that contribute to growth and development objectives while moderating increases in GHG emissions.

Renewable biogas provides clean, affordable energy for rural households in Nepal

Environmental Specialist Javaid Afzal demonstrates supervision practices of Bank staff as he inspects the internal workings of a biogas plant currently under construction.

Trecking through the remote and rugged mountainous areas of Nepal, it was evident to me that the abundance of natural beauty starkly contrasted with the scarcity of access to affordable and environmentally sustainable energy sources.

In Nepal, Most households still rely on traditional energy sources for cooking and heating, such as firewood or agriculture residue with few having access to electricity.

The high demand for firewood has created a number of environmental problems such as deforestation, soil degradation, and flooding. Firewood also requires considerable time for families to collect and its use results in indoor air pollution which particularly impacts women and children.

A solution has been the introduction of biogas as a way to bring cleaner, safer, and more affordable energy to rural households. It is created when animal and human waste are converted into clean sources of cooking fuel, replacing the need for wood, dried dung, and fossil fuel based sources of energy. Its byproduct can also be used as a natural fertilizer to increase agricultural yield.

Web Snobbery 2.0

Caroline Jaine's picture

Up until very recently I was very sniffy about corporate and government engagement online.  I always figured that the real strength in new media lay in the credibility born from broadcasting the voices of the unheard.  I associated digital engagers using blogs and micro-blogs, social networks and chat forums to be identified with the individual, with community journalists wishing to distance themselves from mainstream media, and with speaking free from constraints of institution or authority.

Until last week in fact, any official blogging from the likes of government ministers would make me shudder and I assumed it was with ignorance that organisations and authorities around the world stumbled into this new digital playground. I sniggered at local authority Tweets and hollow-laughed as government Facebook groups requested my membership.  Then a friend reminded me that my own words (these in fact) appear branded on the website of a rather large organisation – no less than the World Bank.  Ah. Right. And I have to confess I have never been censored and rarely edited by the bank (save for my typos).  I decided to have a conversation with a Digital Diplomacy expert in the hope it would resolve my issues for me.  It did.


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