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Europe and Central Asia

International Debt Statistics 2018 shows BRICs doubled bilateral lending commitments to low-income countries in 2016 to $84 billion

World Bank Data Team's picture
The 2018 edition of International Debt Statistics (IDS) has just been published.

IDS 2018 presents statistics and analysis on the external debt and financial flows (debt and equity) of the world’s economies for 2016. It provides more than 200 time series indicators from 1970 to 2016 for most reporting countries. To access the report and related products you can:

This year’s edition is released less than 10 months after the 2016 reference period, making comprehensive debt statistics available faster than ever before. In addition to the data published in multiple formats online, IDS includes a concise analysis of the global debt landscape, which will be expanded on in a series of bulletins over the coming year.

Why monitor and analyze debt?

The core purpose of IDS is to measure the stocks and flows of debts in low- and middle-income countries that were borrowed from creditors outside the country. Broadly speaking, stocks of debt are the current liabilities that require payment of principal and/or interest to creditors outside the country. Flows of debt are new payments from, or repayments to, lenders.

These data are produced as part of the World Bank’s own work to monitor the creditworthiness of its clients and are widely used by others for analytical and operational purposes. Recurrent debt crises, including the global financial crisis of 2008, highlight the importance of measuring and monitoring external debt stocks and flows, and managing them sustainably. Here are three highlights from the analysis presented in IDS 2018:

Net financial inflows to low-and middle income countries grew, but IDA countries were left behind

In 2016, net financial flows into low- and middle-income countries grew to $773 billion - a more than three-fold increase over 2015 levels, but still lower than levels seen between 2012 and 2014.

However, this trend didn’t extend to the world’s poorest countries. Among the group of IDA-only countries, these flows fell 34% to $17.6 billion - their lowest level since 2011. This fall was driven by drops in inflows from bilateral and private creditors.

From Istanbul to Manila—different fault lines, similar challenges

Elif Ayhan's picture
 “It’s not the mountain we conquer, but ourselves.” This was the response given by Sir Edmond Hillary when asked how he and his companion Tenzing Norgay became the first to summit Mt Everest, when so many before had failed. He believed we could all overcome our biggest challenge simply by deciding to act.

Is it possible for the same sentiment to be applied by government leaders – leaders who have the privilege and responsibility to preside over some of the world’s largest and most dynamic cities, especially those that share a common challenge in terms of seismic risk? Metro Manila, the megacity of the Philippines, the seat of government, and the engine of the national economy, has been destroyed numerous times over the last 500 hundred years by earthquakes, and currently sits upon a fault that is overdue to move. Istanbul, with world-class cultural heritage sites treasured by all, also sits near major fault lines expected to move any day. Tokyo and Wellington, the heart of government, culture, and history, also share exposed locations close to major fault lines.

In Wellington, decades of work – including the current Get Ready week! – have aimed to prepare the city for the next “big one”; but compared to the burgeoning megacities of Manila, Tokyo, or Istanbul, it is a small hill to conquer. How do you prepare these megacities with population of up to 15 million people? How do you climb the mountain of needs to build resilience? According to Sir Hillary, the answer is simple, you need to take the decision to accomplish something extraordinary.

In September 2017, the World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR) through the Japan-World Bank Program for Mainstreaming Disaster Risk Management in Developing Countries supported a knowledge exchange between Turkey and the Philippines focused on the challenge of building seismic resilience in megacities with high urbanization. For the World Bank, it was clear from the start that seismic risk is a priority on the Urban Resilience Agenda, when Johannes Zutt was able to explain to the visiting delegation the technical details of how base isolation is used to protect critical hospitals in Istanbul. The delegation saw impressive progress made by Turkey and Istanbul, from revised institutional frameworks, strengthened preparedness and response capabilities, and retrofitted schools and hospitals to adapted municipal e-services that ensure that the construction of resilient new buildings are approved fast and with the right safety checks. While massive seismic risk still exists within Istanbul, visible and concrete actions are also underway to improve the safety of its citizens.
 
 

 

A Toast to Food: Looking for innovation in Croatia’s food industry

Innovation in food may seem obscure. There are only so many ways you can cut a carrot and you cannot simply reinvent the pig. But in an increasingly busy and wealthy world, the nature of demand for food is changing and scope exists for innovation in the way we deliver food to match people’s lifestyles. With demand for such new segments rapidly growing across Europe, Croatia seems well-poised to exploit this trend.

So why aren’t more farmers and firms champing at the bit to get a piece of this economic pie?



 

Chart: An Over 30-Fold Increase in Turkey's Power Generation Capacity

Tariq Khokhar's picture

Since 1970, the electricity generation capacity of Turkey has increased more than 30-fold to reach 70,000 MW in March 2015. In a country of nearly 80 million people, demand for electricity has risen about 7 percent annually in recent years, requiring steady efforts to expand the sources of reliable and clean power. Starting in the early 2000s, through a series of interlinked measures supported by the World Bank Group, the country has worked to meet this growing demand, while spurring private-sector investment and innovation. Read more.
 

Why education infrastructure matters for learning

Janssen Teixeira's picture
A classroom in Godineşti in Gorj county, Romania. (Photo: Chiara Amato / World Bank)


Buildings, classrooms, laboratories, and equipment- education infrastructure - are crucial elements of learning environments in schools and universities. There is strong evidence that high-quality infrastructure facilitates better instruction, improves student outcomes, and reduces dropout rates, among other benefits.
 
For example, a recent study from the U.K. found that environmental and design elements of school infrastructure together explained 16 percent of variation in primary students’ academic progress. This research shows that the design of education infrastructure affects learning through three interrelated factors: naturalness (e.g. light, air quality), stimulation (e.g. complexity, color), and individualization (e.g. flexibility of the learning space).
 
Although education policymakers are increasingly focusing on the quality of education and school learning environments, many countries use a fragmented or piecemeal approach to investing in their education infrastructure. In Romania, for example, decisions about education infrastructure investments have historically been made under an uncoordinated and decentralized model, driven by ad hoc needs and limited funding availability, rather than a strategic approach.

Remittance flows set to recover this year, after two years of decline

Dilip Ratha's picture
The latest edition of the Migration and Development Brief and an accompanying Press Release have just been launched. Remittances to low- and middle-income countries are on course to recover in 2017 after two consecutive years of decline, says the latest edition of the World Bank’s Migration and Development Brief, released today.

Water and sanitation deprivation: What is next for Tajikistan?

Emcet O. Tas's picture
Also available in: Русский

Two years ago, I visited a village in Rudaki, a hilly district located to the south of Dushanbe, Tajikistan. It lies about forty kilometres from the capital, but it feels like a thousand kilometres away. On our drive up a hill, we saw women carrying buckets of water from a nearby spring. Moving further up, we saw children bathing and animals drinking from the same river. Once in the village, it was clear that life is largely shaped by water scarcity—the backyards were filled with pots and buckets, fuel and stoves for boiling water, and pit latrines that were no longer used because of lack of water. Although we could spot remnants of a once-functional water supply network, people living there had not had access to piped water for at least two decades. Without it, they were only able to practice the most basic forms of sanitation and hygiene. 
A community in Rudaki district, Tajikistan.
Photo credit: World Bank team.



The conditions we witnessed in Rudaki were harsh, but not rare. Located on the western tip of the Himalayas, Tajikistan is a country blessed with large fresh water resources in its lakes, rivers, and glaciers. Yet, access to safe drinking water and sanitation connected to a functioning sewer system is lacking, particularly for rural residents and the poor. Much of the existing infrastructure was built during the Soviet era and has not been upgraded for decades. Tajikistan is one of the few countries outside Africa that did not meet the Millennium Development Goal on drinking water and basic sanitation. Because poor water and sanitation conditions, together with poor nutrition and care, are key determinants of childhood stunting, Tajikistan’s childhood stunting rates remain high. Recent estimates indicate that in Tajikistan more than one in five children under the age of five are stunted and will not reach their full potential as adults.
 
In a new report, Glass Half Full: Poverty Diagnostic of Water Supply, Sanitation and Hygiene (WASH) Conditions in Tajikistan, we document the realities of Tajikistan’s WASH-deprived population. Our analysis builds on one of the largest data collection efforts of its kind – including national surveys of households and schools, water quality tests, ethnographic work, and case studies of existing WASH projects. It also includes poverty mapping and analysis of other secondary data, including a UNICEF nutrition survey that shared a subsample with our WASH survey.

A crisis in learning: 9 charts from the 2018 World Development Report

Tariq Khokhar's picture

There’s a crisis in learning. The quality and quantity of education vary widely within and across countries. Hundreds of millions of children around the world are growing up without even the most basic life skills.

The 2018 World Development Report draws on fields ranging from economics to neuroscience to explore this issue, and suggests improvements countries can make. You can get the full report here and to give you a flavor of what’s inside, I’ve pulled out a few of the charts and ideas that I found most striking while reading through it.

Each additional year of schooling raises earnings by 8-10 percent

 

The report sets out several arguments for the value of education. The clearest one for me? It’s a powerful tool for raising incomes. Each additional year of schooling raises an individual’s earnings by 8–10 percent, especially for women. This isn’t just because more able or better-connected people receive more education: “natural experiments” from a variety of countries - such as Honduras, Indonesia, Philippines, the U.S., and the U.K. - prove that schooling really does drive the increased earnings. More education is also linked with longer, healthier lives, and it has lasting benefits for individuals and society as a whole.

Taking a proactive approach to climate extremes in Serbia

Darko Milutin's picture

A severe and prolonged heat wave stifled much of Central Europe this summer, buckling train tracks in Serbia and forcing at least 10 countries to issue red alerts for health concerns and water conservation. Once a rare nuisance, extreme weather events like this are becoming more commonplace throughout the region – and more dangerous.

These challenges have prompted the government of Serbia to take a proactive approach to building resilience to climate and disaster risks over the last few years.

Boosting access to market-based debt financing for sub-national entities

Kirti Devi's picture



Many countries are experiencing urbanization within the context of increased decentralization and fiscal adjustment. This puts sub-national entities (local governments, utilities and state-owned enterprises) in the position of being increasingly responsible for developing and financing infrastructure and providing services to meet the needs of growing populations.
 
However, decentralization in many situations is still a work in progress. And often there is a mismatch between the ability of sub-nationals to provide services, and the autonomy or authority necessary to make decisions and access financing—often leaving them dependent on national governments. Additionally, they may also contend with inadequate regulatory and policy frameworks and weak domestic financial and capital markets. 


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