The investment needs for low-carbon, climate-resilience growth are substantial. Public resources can bridge viability gaps and cover risks that private actors are unable or unwilling to bear, while the private sector can bring the financial flows and innovation required to sustain progress. For this partnership to reach its full potential, investors need to be provided with the necessary signals, enabling environments, and incentives to confidently invest in emerging economies.
Over 25,000 people have descended on the Bourget in the suburbs of Paris to attend the much anticipated 21st Conference of Parties on climate change, or “COP21”. The first meeting today is due to be attended by 120 heads of state including 11 from the Middle East and North Africa (MENA). But what is the convention about, really?
In late 2014, the World Bank’s Competitive Cities team visited the Moroccan city of Tangier, to carry out a case study of how a city in the Middle East & North Africa Region managed to achieve stellar economic growth and create jobs for its rising population, especially given that it is not endowed with oil or natural gas reserves like many others in the region.
In just over a decade, this ancient port city went from dormant to dominant. Between 2005 and 2012, for example, Tangier created new jobs three times as fast as Morocco as a whole (employment growth averaged 2.7% and 0.9% per year, respectively), while also outpacing national GDP growth by about a tenth. Today, the city and its surrounding region of Tanger-Tétouan is a booming commercial gateway and manufacturing hub, with one of Africa’s largest seaports and automotive factories, producing some 400,000 vehicles per year (with Moroccan-made content at approximately 35-40%, and a target to increase that share to 60% in the next few years). The metropolitan area now boasts multiple free trade zones and industrial parks, while also thriving as a tourist destination. As in our previous city case studies, we wanted to know what (and who) drove this transformation, and how exactly it was achieved.
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In the run-up to the COP21 climate conference, one question becomes central: where will we find the solutions on the ground—and the people to implement them—to realize the renewed political ambitions on climate?
To development economists (like myself), the uprisings that started in Tunisia and spread to several countries in the Arab world in 2010-11 came as somewhat of a surprise. For the previous decade, almost all the indicators of economic well-being were strong and improving.
The Arab Spring and its aftermath have inspired much discussion of the social contracts that had defined the relationship between citizens and the state in the Arab world. In the past, the typical social contract of a state in the Middle East or North Africa broadly afforded that citizens would be provided jobs and public services, and presumably political stability, in return for limiting civil liberties that could be used to challenge governing regimes. The political transition in Morocco has provided space for addressing civil liberties in the debate on new social contracts.
Global warming can be limited by reducing or avoiding greenhouse gases stemming from human activities - particularly in the energy, industry, transport, and building sectors—which together account for over 75% of global emissions. So low carbon technologies are key to achieving mitigation while creating new economic opportunities.
Since 2008, the $5.3 billion Clean Technology Fund (CTF) - one of the $8.1 billion Climate Investment Funds' (CIF) four funding windows—has been partnering with multilateral development banks (MDBs), including the World Bank and the IFC, to provide concessional financing to large-scale country-led projects and programs in renewable energy, energy efficiency and sustainable transport.
As the world gets ready for the climate negotiations in Paris later this month, the governing bodies of CTF met in Washington D.C. MDBs, donor countries, recipient countries and civil society organizations gathered to, among other things, share the results and lessons of how the CTF is reducing greenhouse gas emissions, creating energy savings, and improving the lives of some of the world’s poorest people by creating jobs and reducing pollution.
The CTF report card is based on the results from operational projects and programs over a one year period. In total, the CTF has achieved 20 mtCO2e in emission reductions—that’s the equivalent to taking four and a half million cars off the road or shutting down six coal fired power plants.
In my years of service with the World Bank, I have never come across such poignant testimony. I thought I had heard it all—everything I could ever know about exclusion, poverty, and vulnerability. But, in Sidi Slimane, a small city in the northwestern center of Morocco, I met marginalized youth who find new ways to express the hardships they are going through.
We are currently witnessing shifts in major industries as a result of rapid technological innovation and industry interconnectivity. The amalgamation between transport and software, for example, has resulted in Google Maps, Waze and Uber, apps that we all interact with to move from point A to B.
World Bank Chief Economist for the Middle East and North Africa, Shanta Devarajan discusses potential economic scenarios for the region.