To function properly, a financial system needs to have two doors in place: an “entry” and an “exit”. The first one enables qualified local or foreign institutions to enter the marketplace to provide innovative products and services – such as savings, investments, credits, payments and insurance – to households and firms at competitive prices. The second facilitates the rapid and orderly dissolution of those financial intermediaries that are not able to survive competition, manage risks properly, or comply with rules and regulations.
East Asia and Pacific
Selecting contractors with the right capacity and experience for large value works contracts is critical for implementation and timely completion of the works.
How do you achieve that?
The China’s Fujian Meizhou Bay Navigation Improvement Project offers some lessons of how the Bank team successfully worked with the client in selecting the right contractors through appropriate procurement strategy and due diligence.
The total project cost is US$138 million and the Bank loan is US$50 million. The project seeks to improve the capacity of the main navigation channel in Meizhou Bay and enhance the management capacity of the Meizhou Bay Harbour Administration Bureau.
And so, what better place than Singapore for the Asia Launch of the Competitive Cities for Jobs and Growth: What, Who & How report. The World Bank Group, along with the Centre for Liveable Cities and International Enterprise Singapore co-sponsored the launch as part of Urban Week held in Singapore from 8-11 March, 2016. The roundtable was attended by over 100 delegates representing cities from 23 countries.
The competitiveness potential for cities is enormous. Almost 19 million extra jobs, annually, could be created globally if cities performed at the level of the top quartile of competitive cities. Of this potential, more than 1/3, i.e. equivalent to an additional 7 million jobs, comes from cities in East Asia. Between 2000 and 2010, nearly 200 million people moved to East Asia's urban centers – these people will need jobs. Where will these jobs come from? How will they be generated?
It is widely acknowledged that reducing emissions from deforestation could bring about one-third of the greenhouse gas emission reductions we need by 2030 to stay on a 2-degrees trajectory. But protecting and managing forests wisely does not only make sense from a climate perspective. It is also smart for the economy. Forests are key economic resources in tropical countries. Protecting them would increase resilience to climate change, reduce poverty and help preserve invaluable biodiversity.
Here are just a few facts to illustrate why forests are so important. First, forests provide us with ecosystem services like pollination of food crops, water and air filtration, and protection against floods and erosion. Forests are also home for about 1.3 billion people worldwide who depend on forest resources for their livelihood. Locally, forests contribute to the rainfall needed to sustain food production over time. When forests are destroyed, humanity is robbed of these benefits.
The New Climate Economy report shows us that economic growth and cutting carbon emissions can be mutually reinforcing. We need more innovation and we need more investments in a low carbon direction. This requires some fundamental choices of public policy, and the transformation will not be easy. However, it is possible and indeed the only path to sustained growth and development. If land uses are productive and energy systems are efficient, they will both drive strong economic growth and reduce carbon intensity.
Already, the world's large tropical forest countries are taking action.
Recent studies in neuroscience and economics show that early childhood experiences have a profound impact on brain development and thus on outcomes throughout life. A growing number of impact evaluations from low- and middle-income countries underscore the importance of preschool for children’s development (to highlight a few: Cambodia, Mozambique, and Indonesia).
Just consider some statistics. It’s estimated some one point four million people move to cities every week. And by 2050, we will add nearly 2.5 billion people to the planet, with 90 percent of the urban growth in that time taking place in developing countries.
Yet living in cities can be risky business. Many large cities are coastal, in deltas or on rivers and at risk from of flooding from powerful storms or rising sea levels. Globally 80 percent of the world’s largest cities are vulnerable to severe earthquakes and 60 percent are at risk from tsunamis and storm surges.
In 2015, more than 500 million hectares of forests were held by indigenous peoples. Despite the increase in forest area designated for and owned by indigenous peoples in recent decades, governments still administer 60 percent of these forest areas while firms and private individuals administer 9 percent. Pressure exerted by indigenous peoples over the past few decades has led to a 50 percent increase in forest areas recognized as being owned or designated for use by indigenous communities. The greatest strides have been made in Latin America and the Caribbean, where indigenous peoples control 40 percent of forest land. Similar trends have been observed in other regions across the globe.
For the indigenous peoples who have always lived in the forests, these areas represent their space for cultural reproduction, food production, and spiritual security. For governments and companies, forests contain major assets for food production, economic development, security, climate change mitigation, carbon sequestration, water, minerals, and gas extraction. Added to these divergent views on forest ownership and use is the proliferation in recent decades of conflicts over territorial control and forest resources. Growing international demand for commodities (minerals, hydrocarbons, soybeans, and other basic agricultural products) has fueled greater economic activity linked to the development of forest resources. However, this progress has come at a price: adverse environmental impacts, the reclassification of spaces, and the dispossession of the rights, interests, territories, and resources of indigenous peoples (ECLAC 2014).
In this context, a question arises: What is contributing to the behavioral change, both at the country and global levels, which leads us to conclude that a reversal in the situation has begun?
On a spring morning in 2016, Mrs. Dinh Thi Son of the Thai ethnic minority group brought her two month old baby to the Trung Son Hydropower Project construction site for medical services. Why go to a construction site? Because it has a health center that’s fully equipped with medical devices, well stocked with medicines, an ambulance, and doctors and nurses who provide healthcare services 24/7 for workers and local people alike.
We already see a large number of cities taking the lead in sustainability through innovative financing mechanisms, technological advances, policy and regulatory reforms, efficient use of land and transport, waste reduction, energy efficiency measures, and reduction of GHG emissions.
What is needed now for scaling this up is systematic knowledge exchange and learning among cities. Peer-to-peer learning is a powerful tool once contextualized and adapted to the particular socio-economic and political context. Iterative learning with feedback loops can help in finding transformative solutions.