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Why are energy subsidy reforms so unpopular?

Guillermo Beylis's picture

It is well established in the economic literature that it’s the rich who benefit from the lion’s share of energy subsidies. Yet, it is often the poor and vulnerable who protest loudly against these reforms. Why does this happen? What are we missing?

Can modern technologies facilitate spatial and temporal price analysis?

Marko Rissanen's picture

The International Comparison Program (ICP) team in the World Bank Development Data Group commissioned a pilot data collection study utilizing modern information and communication technologies in 15 countries―Argentina, Bangladesh, Brazil, Cambodia, Colombia, Ghana, Indonesia, Kenya, Malawi, Nigeria, Peru, Philippines, South Africa, Venezuela and Vietnam―from December 2015 to August 2016.

The main aim of the pilot was to study the feasibility of a crowdsourced price data collection approach for a variety of spatial and temporal price studies and other applications. The anticipated benefits of the approach were the openness, accessibility, level of granularity, and timeliness of the collected data and related metadata; traits rarely true for datasets typically available to policymakers and researchers.

The data was collected through a privately-operated network of paid on-the-ground contributors that had access to a smartphone and a data collection application designed for the pilot. Price collection tasks and related guidance were pushed through the application to specific geographical locations. The contributors carried out the requested collection tasks and submitted price data and related metadata using the application. The contributors were subsequently compensated based on the task location and degree of difficulty.

The collected price data covers 162 tightly specified items for a variety of household goods and services, including food and non-alcoholic beverages; alcoholic beverages and tobacco; clothing and footwear; housing, water, electricity, gas and other fuels; furnishings, household equipment and routine household maintenance; health; transport; communication; recreation and culture; education; restaurants and hotels; and miscellaneous goods and services. The use of common item specifications aimed at ensuring the quality, as well as intra- and inter-country comparability, of the collected data.

In total, as many as 1,262,458 price observations―ranging from 196,188 observations for Brazil to 14,102 observations for Cambodia―were collected during the pilot. The figure below shows the cumulative number of collected price observations and outlets covered per each pilot country and month (mouse over the dashboard for additional details).

Figure 1: Cumulative number of price observations collected during the pilot

Innovation in the air: using cable cars for urban transport

Leonardo Canon Rubiano's picture
Also available in: Español
Photo: Andy Shuai Liu/World Bank

Invented over a century ago for exploring mountainous regions, aerial cable cars have recently made an appearance in several big cities, where they are being used as an alternative to conventional urban transport modes. This technology uses electrically-propelled steel cables to move suspended cars (or cabins) between terminals at different elevation points.
 
The tipping point. The emergence of cable cars in urban transport is fairly new. Medellín, Colombia pioneered the use of cable cars for urban transport when it opened its first “Metrocable” line in 2004. Since then, urban cable cars have grown in popularity around the world, with recent projects in Latin America (Rio de Janeiro, Caracas, Guayaquil, Santo Domingo, La Paz, and Medellín), Asia (Yeosu, South Korea, Taiwan, Hong Kong), Africa (Lagos, Constantine), and Europe (London, Koblenz, Bolzano).  Cable cars can be an attractive urban transport solution to connect communities together when geographical barriers such as hills and rivers make other modes infeasible.

A Lifetime Approach To Preventing Violence In Latin America

Jorge Familiar's picture
A prevention program against crime and violence in Zacatecoluca, El Salvador, supports sporting activities for the children from this municipality. Photo: Victoria Ojea/World Bank

Finding peace in Colombia

Catalina Quintero's picture
Sunday was the day that all Colombians, in Colombia or abroad, voted in a referendum to ratify or not the peace agreement that was signed on September 26 between the Revolutionary Armed Forces of Colombia (FARC) rebel group and the Colombian government.
 
As a Colombian living in Washington, D.C., I was serving as a voting monitor (Colombians citizens who volunteer to make sure the process runs smoothly and transparently) here all day, from 7 a.m. until 4 p.m. Most of us were for the YES vote; so we were both saddened and surprised when we heard the news that the NO vote had narrowly won.
 
Though I was pessimistic at first, I thought about the great peacemakers of this world, and in particular Nelson Mandela who once said: "In the end, reconciliation is a spiritual process, which requires more than just a legal framework. It has to happen in the hearts and minds of people." I have come to a different conclusion about this supposed "blow" to achieving peace in my country. I think this is a lesson in what the true meaning of peace is, especially for those of us who work on combatting conflict and often think that peace is a technocratic agreement.
 
City view of Bogotá, Colombia.  (Photo: Dominic Chavez/World Bank)


It is true that society has been extremely polarized in recent months, and that although this is likely the most comprehensive and technically sound peace deal in this 50+-year-old conflict, the process was not very inclusive or transparent of society at large. Corruption scandals in the current government abound, and the fear that we might turn into another Venezuela if the FARC gain political power (which the agreement provides for to an extent) are not that far-fetched for many Colombians glancing over the border. The process divided Colombian families. There is not one person I have spoken to that has told me that they could easily breach the subject at dinner without a real fight breaking out.
 
The NO vote was a lesson to us Colombians that polarization and choosing sides here isn't the way, that listening to the other rather than just maintaining our position is what we need the most. If we are fighting, and if there is violence verbal or physical within our hearts and minds and at the most basic level of the family, how can we have a national peace when we aren't even at peace with ourselves let alone our family members or colleagues at work? Peace is the work of a united nation, a united effort.
 
I don't think all is lost, in fact, I think this NO vote reminds us that for the peace agreement to hold, we need to be more inclusive of all opposing views. What works for peace is love and not fear, understanding and trust of the other rather than ostracizing someone for a different opinion. It is about taking that anger and resentment within and transforming it, because they don't work. Humility and calmness do.
 
President Santos has declared that the ceasefire still holds while democratically recognizing the NO vote. Former President Uribe has also emphasized his will for peace and for continued conversations with the FARC so that the opposition's views can be included in the agreements. Finally, the FARC has said they will not return to "the jungle" to fight ever again.
 
The whole point is that we had forgotten to look ourselves in the eye, each Colombian, and realize that we are both part of the problem and solution to peace...by finding it within ourselves.

 

Latin America: Is There Hope for Prosperity After the Commodity Price Boom?

Katia Vostroknutova's picture

This blog was previously published in The World Post.

Talk about ‘growth’ in Latin America has become less upbeat today than a few years ago. That’s no surprise. For over a decade, average growth meant at least double the economic activity that we are seeing today. 

Lima, from Gastronomic Center to Capital of Urban Transformation

Eric Dickson's picture

Vista de la costa de Lima

‘Oh you’re going to Lima? I’ve heard the food is supposed to be amazing’. So goes the typical comment I get from friends and family when I would mention my work related travel plans. And in this sense the city does indeed live up to what is now internationally recognized. In my short amount of time in Lima I discovered it has a gorgeous historic downtown area, a stunning coastline peppered with manicured parks in the upscale parts of town, and a largely flat topography coupled with a near complete lack of rain.

#Youthbiz: Thousands of Young Entrepreneurs Discuss Innovation, Growth and Jobs Creation with World Economic Leaders

Luis Viguria's picture

Young entrepreneurs from Latin America

Thousands of young entrepreneurs from 43 countries across the world took part in a series of online and onsite dialogues as part of the Road to Lima 2015 activities. The inclusion of youth in such an important process was possible thanks to the World Bank Group and the Young Americas Business Trust (YABT).

Part of the #Youthbiz movement? Share your story!

Valerie Lorena's picture

Also available in: Français | العربية
 



A boat trip from Port Elizabeth to Kingstown, in the Caribbean country of Saint Vincent and the Grenadines, is a one-hour trip that locals take several times a day. It was during one of these journeys that the boat of Kamara Jerome, a young Vincentian fisherman, ran out of gas six miles from Bequia City in what is termed locally as the "Bequia Channel." While waiting for help with strong wind gusts and the sun on his head, the idea of developing a boat that would run with wind and solar energy was born. Soon after, the idea became a prototype; a boat using green technology was on the water making 20-year-old Jerome a winner of international innovation competitions and a role model to other Caribbean youth. 
 
In Mexico, young engineer Daniel Gomez runs a multimillion bio-diesel company originally conceived as a research project for his high school chemistry class. Gomez and his partners - Guillermo Colunga, Antonio Lopez, and Mauricio Pareja - founded SOLBEN (Solutions in bio-energy in Spanish) in their early twenties. 
 
Although Daniel and Kamara have different educational backgrounds, they do share one important skill, the ability to identify a problem, develop an innovative solution, and take it to the market. In other words, being an entrepreneur, an alternative to be economically active, that seems to work and not only for a few.

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