The World Region
Economists tend to agree on the importance of competition for a sound market economy. So what’s the problem when it comes to governments competing to attract investors through the tax treatment they provide? The trouble is that by competing with one another and eroding each other’s revenues, countries end up having to rely on other—typically more distortive—sources of financing or reduce much-needed public spending, or both.
All this has serious implications for developing countries because they are especially reliant on the corporate income tax for revenues. The risk that tax competition will pressure them into tax policies that endanger this key revenue source is therefore particularly worrisome.
When the world united around the historic Paris climate agreement, in 2015, the message was clear: It’s unfair to pass the burden of climate change to future generations.
We now need to put words into action. This week, leaders from 20 of the largest economies are meeting in Hamburg to find solutions to global challenges. Climate change will be front and center.
As the co-chairs of the Carbon Pricing Leadership Coalition (CPLC), we want to accelerate climate action and reaffirm our commitment to carbon pricing. The discussions in Germany are a great opportunity to keep the momentum going.
Launched during the Paris climate talks, the CPLC now consists of 30 governments and over 140 businesses, all fighting for a common cause: to advocate for the pricing of carbon emissions across the world. We are calling for bold leadership from everyone – governments, companies, academia and civil society. The CPLC provides a forum for these groups to show collaborative leadership on carbon pricing.
(Photo: Getty Images)
There is a huge need for new and upgraded infrastructure around the world, particularly in emerging markets. Policy makers like to talk about raising trillions of dollars to fund infrastructure, but the truth is that capital for good projects exists. Regulation and lack of policy clarity are inhibitors.
What lacks is a strong pipeline of projects that meet societal needs and are financeable. If we can increase the quality of projects, and encourage smart and efficient regulations, the money to fund them will follow.
We identified several areas that should be prioritized by the international community and local governments.
Today we’re releasing a revamped Health, Nutrition & Population (HNP) Data portal which offers a quick look at over 250 indicators covering topics such as health financing and the health workforce; immunization and the incidence of HIV and AIDS, malaria and tuberculosis, non-communicable diseases and the causes of death; nutrition, clean water and sanitation, and reproductive health; as well as population estimates and population projections.
We encourage you to explore the resources above, here are three stories you can find in the data:
Delivery assistance provided by doctors, nurses, and trained midwives can save the lives of mothers and children. While more than 70 percent births are attended by skilled health staff worldwide, this average falls to 51 percent in low-income countries. The poorest women are least likely to deliver babies with assistance from skilled health staff at birth.
I had the opportunity recently to participate in the Third Edition of the World Reconstruction Conference, where I was reminded once again of a sobering reality – that we live in an increasingly interconnected world where multiple crises overlap in complex ways, from the impacts of climate change to a spike in violent conflict, historically high levels of forced displacement, and the worst famine in 70 years.
At the same time, I was encouraged by how the international community is coming together, breaking silos to forge a comprehensive response. While the Conference focused on the role of post-crisis recovery and reconstruction for resilience building and disaster risk reduction, partners recognized the complexity of this effort. The joint communique noted that conflict and fragility require special attention as it can aggravate the impact of natural disasters and make the recovery process more challenging.
As infrastructure projects are increasingly decentralized to sub-national governments (SNGs) in many countries, policymakers are keenly interested in developing sub-national bond markets to open up access to private-sector financing. However, the transaction costs of bond issuance are still prohibitive for small SNGs.
Pooled financing—through regional infrastructure funds, municipal funds, or bond banks—is being explored as a solution. Yet, many questions remain:
“Individuality is the product of both biological inheritance and personal experience,” said Professor Charles A. Nelson during a recent presentation at the World Bank. Professor Nelson has been studying neurobiological development and the effect of adversity on the brain for some time now (e.g., here and here). So we asked him to open the black box of brain development for us and help us understand what it all means to those of us working on ending extreme poverty and boosting shared prosperity. Below are some highlights from his talk.
Public procurement of services, works and supplies is estimated to account for 15-20% of GDP in developing countries, and up to 50% or more of total government expenditure. Efficient and effective procurement is vital to core government functions, including public service delivery and provision of infrastructure. Weaknesses in procurement systems can lead to large-scale waste of public funds, reduced quality of services, corruption, and loss of trust in government.