A Thai business owner in Chiang Mai might open a small resort serving local people as well as tourists. It would probably take him about two months to set up his business after finding the location, staff and getting the company registered. He would find it reasonably easy to start his business.
At the same time, a foreign investor living in Vietnam and considering whether to invest 3 million baht in Thailand to start a restaurant might have a different experience. She would likely find the process a bit complex and challenging. Most websites with the relevant information are written in Thai, the paperwork involved in registering a company can be pretty daunting for foreigners, and getting work permits and a business license can take longer than expected.
One recent scorching afternoon, a display of colorful squat toilets welcomed curious visitors in the main park of the city of Mataram, in Indonesia’s West Nusa Tenggara province.
These visitors were not looking to buy new toilet bowls, nor were they working on home improvement projects. They were among 350 villagers who went ‘shopping’ for ideas and innovations to improve basic services and infrastructure in their home villages.
The 2017 Village Innovation Festival was organized by the provincial government of West Nusa Tenggara, in collaboration with the Ministry of Village's Generasi Cerdas dan Sehat Program.The festival highlighted innovative solutions to address some of the most pressing development challenges faced by village communities.
Remittances to developing countries decreased by 2.4 percent to an estimated $429 billion in 2016. This is the second consecutive year that remittances have declined. Such a trend has not been seen in the last 30 years. Even during the global financial crisis, remittances contracted only during 2009, bouncing back in the following year.
All holders of Indian passports, whose educational qualification is below Matric/X Class (the equivalent of 10th grade in the American system) have a notation ‘Emigration Check Required (ECR)’ stamped in their passports. Under the Emigration Act of 1983, they are required to obtain an Emigration Clearance (EC) while migrating to 18 notified countries[i] for employment/work.
Over the past three decades, China’s unprecedented pace of urbanization has allowed more than 260 million migrants to move from agriculture to more productive activities. This has helped 500 million people escape poverty and for China to grow at an average 10 percent a year for three consecutive decades. At the same time, between 2000 and 2014, weather-related disasters caused more than RMB 4.645 trillion ($749 billion) in damages.
There is strong evidence that climate change is altering the profile of hazards. The observed frequency and severity of extremely heavy rain storms since the 1950s in China have significantly increased and future climate scenarios suggest that interannual variability in rainfall may increase further, aggravating the risk of flooding and as well as severe lack of water.
Over the past two decades, the city of Lishui in Zhejiang Province of China suffered from devastating floods, landslides, as well as heat waves. Today, the over 2 million people of Lishui have a lot to be proud of. Their city is recognized as China’s “top ecological, picturesque paradise for healthy life and home of longevity”. This is the result of close attention from city and provincial officials in understanding the root causes of the problems caused by the changing climate. This has been followed by inclusive planning, design and implementation of technically sound projects that are in harmony with the rivers flowing through the city in concert with the surrounding hilly terrain’s natural and city-wide storm water drainage systems.
Myanmar in 2012, when we started our financial sector engagement, and Myanmar today seem like two different worlds. Back then, sim cards cost close to US$500, visitors carried wads of crisp, new dollar bills, Yangon streets were filled with old models of Toyotas and Nissans, while the capital Nay Pyi Taw had only rickety hotels. Now streets lined with old shops have given way to $1 sim cards, brand new car models, international hotel chains and gleaming new shopping malls. ATMs and “We accept Visa and Master Card” signs are now nearly ubiquitous in the country’s cities.
One regret from my time in Mongolia in the 1990s is that I did not take more pictures. I wasn’t alone in this respect—people generally didn’t carry cameras, and whenever I pulled out my 35mm Nikon I got a lot of stares. I had to buy and develop film in Beijing and, well, I just didn’t take nearly as many photos as I should have. Happily, I did take some.
In the spring of 1997 I conducted the research for a study of Mongolia’s informal sector. It was the first such study in the country and there was a blank slate in terms of information. I was fascinated by how rapidly it had grown, by questions about the size of the sector, by how people working in the informal sector see and organized themselves, by informal entrepreneurship and the spontaneity of markets.
I had as much fun as I have had in my career before or since, poring through statistics, interviewing taxi drivers and shoe shine boys. I interviewed officials on how they decide to provide permission for kiosks to set up shop and how they collaborate with informal (i.e., private, independent) buses. I worked with the NSO and the Ulaanbaatar city statistics department to do a survey to put some numbers with the stories.
These risks could be disastrous for the urban poor, 881 million of whom currently live in slums (up 28 percent since 2000). And climate change – which is increasing the intensity and frequency of natural disasters – will only exacerbate the problem. For this reason, multilateral and government institutions now see resilience and climate adaptation as integral pillars of development.
When I was in primary school, there was a large construction project happening on the road in front of our house. I remember it was loud, dusty and the subject of constant complaints from our neighbors. However, my most vivid memory is of all the shiny, majestic machinery being delivered by the workers in their bright orange uniforms.
There was an immediate fascination among the children with these powerful and temptingly dangerous machines. Of course our parents all drilled us with the same message – “Do not go near, do not touch, do not interfere with the nice men repairing the roads,” and so we abided, but the curiosity and thrill of potentially touching these metal monsters never entirely subsided. Luckily, working in the transport sector now I get to be around construction equipment all the time!
Just two years ago, Ghana was experiencing unstable commodity prices and a deteriorating macroeconomic situation. Yet, through a unique combination of World Bank guarantees nearly $8 billion in private investment was mobilized for the Sankofa Gas Project—the biggest foreign direct investment in Ghana’s history. The transformational project helped address serious energy shortages and put the country on a path to economic growth.
This is just one example illustrating how risk mitigation products play out in practice to encourage private sector investment and improve people’s lives.