This week in Addis Ababa, Ethiopia, during the Third International Financing for Development Conference, the United Nations, along with the World Bank Group, and the governments of Canada, Norway and the United States, joined country and global health leaders to launch the Global Financing Facility (GFF) in support of Every Woman Every Child. Partners announced that $12 billion in domestic and international, private and public funding had already been aligned to country-led five-year investment plans for women’s, children’s and adolescents’ health in the four GFF front-runner countries: Democratic Republic of the Congo, Ethiopia, Kenya and Tanzania.
Rwanda’s level of financial inclusion is fast increasing, propelled forward by ambitious targets and innovative policy and regulatory approaches. The 2008 and 2012 FinScope surveys showed that financial inclusion had doubled from 21 to 42 percent and the 2015 iteration is expected to show continued progress. But with such a large and rapid movement of adults into the formal financial sector, ensuring that the ‘newly banked’ are able to effectively and responsibly select and use financial products is critical.
In the last couple of months, we saw some amazing events making the news headlines. From World Bank President Jim Kim’s outstanding lecture at Georgetown University on “Lessons from Ebola”, to the World Health Organization’s (WHO) announcement that Ebola response is moving to the next stage, one may think that the pandemic is over. That no more lives will be lost to this terrifying disease.
But voices from the scientists, who have been the first to discover the Ebola virus last year, raised above the general enthusiasm and warned the international community to stay focused. Researchers from Institut Pasteur in France fear that the virus has mutated and could have become even more contagious. The new variation poses a higher risk of transmission. This means that dozens, if not thousands, of lives could be again at risk.
And while WHO shifts the focus from slowing transmission of Ebola to ending the epidemic, the world may actually be at the verge of a new pandemic emergency. With the recent surge in new cases in Sierra Leone, the world must stay focused until we reach and maintain zero cases in each affected country.
The UN Secretary General convened an International Ebola Recovery Conference last week to advocate that recovery efforts go beyond redressing direct development losses to build back better and ensure greater resilience.
Forty-five years ago, the World Bank began a major shift in its approach to development. Prior to the 1970s, the Bank’s overwhelming focus was on infrastructure projects, consistent with our origins as an agency focused on post World War II reconstruction. The later shift came with recognition that sustained economic development had a lot to do with human development, not just physical development, which led to our first projects on population. In the early years, these focused on the Caribbean, North Africa and South and East Asia, and were underpinned by recognition that population dynamics have direct impact on poverty, health, human capital and economic growth.
In May, the World Health Organization released numbers on how many health workers in Guinea, Liberia, and Sierra Leone have been affected by Ebola. The numbers are striking: For these heroic workers, the probability of being infected by Ebola is 21 to 32 times more likely than for a member of the general public.
The current African commodity/resource booms raise the question of how to appropriately use the revenues gained. Professor Ravi Kanbur of Cornell University talks to the distributional dilemmas and the best way forward for these growing countries to achieve transformation. He argues that African countries should generate sustainable growth by investing in infrastructure and human capacity building and not in the light manufacturing industrial policies that have worked so well in East and South Asia.
These are some of the views and reports relevant to our readers that caught our attention this week.
Does talking about corruption make it seem worse?
What do most people immediately think of when you ask them why poor countries are poor? We’re pretty confident that it will be corruption. Whether you ask thousands of people in a nationally representative survey, or small focus groups, corruption tops people’s explanations for the persistence of poverty. Indeed, 10 years of research into public perceptions of poverty suggests that corruption “is the only topic related to global poverty which the mass public seem happy to talk about”. Which is odd, because it’s the absolute last thing that people actually working in development want to talk about.
Africa’s moment to lead on climate
Climate change is the greatest threat facing humanity today. To avoid catastrophe, we must dramatically reduce the carbon intensity of our modern energy systems, which have set us on a collision course with our planetary boundaries. This is the challenge leading up to three key international events this year: a July summit on financing for new global development goals, another in September to settle on those goals and — crucially — a global meeting in December to frame an agreement, and set meaningful targets, on climate change. But focusing on ambitious global climate goals can mask the existence of real impacts on the ground. Nowhere is this truer than in sub-Saharan Africa. No region has done less to cause climate change, yet sub-Saharan Africa is experiencing some of the earliest, most severe and most damaging effects. As a result, Africa’s leaders have every reason to support international efforts to address climate change. But these leaders also have to deal urgently with the disturbing reality behind Africa’s tiny carbon footprint: a crushing lack of modern energy.
The African continent is on the cusp of a major transformation. Many economies are growing, with growth driven by investments in infrastructure and energy, trade, and by a stable macro-economic environment. I think that this growth will lead to socio-economic transformation (with higher-income jobs and a better quality of life) if it is also accompanied by building skills and research capacity in applied sciences, engineering, and technology (ASET).
Public-Private Partnerships (PPPs) have been an important option to develop infrastructure and services.
However, challenges for preparing, procuring and monitoring PPP projects in LICs are huge. Challenges include weak institutional capacity, constraints in fiscal space, shallow capital markets, and lack of access to long-term financing.
Despite these challenges, LICs have made important efforts to implement PPP policies, laws and regulations. As a result, these countries closed 377 PPP deals between 1987 and 2013. Even with this considerable effort, LICs still have important infrastructure needs. This is a good start, but hardly enough to tackle the problem.
During the project selection stage, LIC governments have to discuss whether a particular project should be implemented under a PPP scheme or through traditional procurement. There are several reasons why governments decide to implement a PPP: to accelerate public investment programs, maximize the fiscal space or to try to avoid fiscal controls, for example.
At this key decision point, various options can be considered by governments, including a Value for Money (VfM) analysis.
Deep inside the sprawling HEAL Africa Hospital complex in the Eastern Congolese city of Goma is a small ward where women recover from injuries they suffered during complicated births and violent sexual attacks. When I entered, I first saw Muwakeso, a fragile-looking elderly woman sitting on a chair next to a bed. It took me a moment to realize that she wasn’t the patient, but rather her 3-year-old granddaughter Sakina, who was curled up into a tiny mound under a hospital sheet on the bed.
Sakina was heavily sedated to numb the pain after the second of three major surgeries she underwent to reconstruct parts of her lower body following a horrific attack about a year ago. Muwakeso recalls five men in civilian clothes approaching her house and beating her. Before she lost consciousness she heard Sakina screaming. The young girl was raped, but Muwaseko doesn’t know by how many men, and Sakina is unable to say.