Syndicate content

Climate Change

The future of business matchmaking

Aman Baboolal's picture

How a new green business facility in South Africa is connecting local companies to the global green economy

Traditional trade mission functions are becoming obsolete. Over hors d'oeuvres, business cards are exchanged, elevator pitches are delivered but, in most cases, entrepreneurs leave with empty promises to stay in touch and no useful contacts. This may sound a little cynical but the reality is that in an age of business models “ripe for disruption,” the ways to create viable business partnerships across borders have not changed for decades.
 

To build resilient cities, we must treat substandard housing as a life-or-death emergency

Luis Triveno's picture

Also available in: Español

Damaged houses in Long Island, New York after Hurricane Sandy. Photo by UNISDR.

The scene is as familiar as it is tragic: A devastating hurricane or earthquake strikes a populated area in a poor country, inflicting a high number of casualties, overwhelming the resources and capacity of rescue teams and hospital emergency rooms. First responders must resort to “triage” – the medical strategy of maximizing the efficient use of existing resources to save lives, while minimizing the number of deaths. 

But if governments could apply triage to substandard housing, medical triage would be a much less frequent occurrence – because in the developing world, it is mainly housing that kills people, not disasters.
 
Worldwide, most injuries and deaths from natural disasters are a result of substandard housing. In Latin America and the Caribbean, for example, one-third of the population – 200 million people – lives in informal settlements, which are densely packed with deadly housing units. In 2010, when the 7.0-magnitude Haiti earthquake killed 260,000 people, 70% of damages were related to housing. Similarly, it’s estimated that if an 8.0-magnitude earthquake hit Peru, 80% of the economic losses would be to housing.
 
But the story in rich countries is different. In the past 10 years, high-income countries experienced 47% of disasters worldwide, but accounted for only 7% of fatalities.

Who shares in the European sharing economy?

Hernan Winkler's picture
Data on the sharing economy (Uber, Airbnb and so on) are scarce, but a recent study estimates that the revenue growth of these platforms has been dramatic. In the European Union (EU), the total revenue from the shared economy increased from around 1 billion euros in 2013 to 3.6 billion euros in 2015. While this estimate may equal just 0.2% of EU GDP, recent trends indicate a continued, rapid expansion.

This is important, as the sharing economy has the potential to bring efficiency gains and improve the welfare of many individuals in the region.

This can also generate important disruptions.

While online platforms represent a small fraction of overall incomes, the share of individuals participating in these platforms is large in many European countries. For example, roughly 1 in 3 people in France and Ireland have used a sharing economy platform, while at least 1 in 10 have in Central and Northern Europe (see figure below).

At the same time, the share of the population that has used these platforms to offer services and earn an income is also significant, reaching 10% or more in France, Latvia, and Croatia. This means that at least one out of every ten adults in these countries worked as a driver for a ride-sharing platform such as Uber, rented out a room of his or her house using a peer-to-peer rental platform such as Airbnb, or provided ICT services through an online freelancing platform such as Upwork, to name a few examples.

Disaster risk management a top priority on the international stage this week

Joe Leitmann's picture

Photo by Joe Qian / World Bank

How many school children can be endangered by the schools themselves? The answer was over 600,000 in metropolitan Lima alone.
 
In the region, fraught with frequent seismic activity, nearly two-thirds of schools were highly vulnerable to damage by earthquakes. Working with the Peruvian Ministry of Education (MINEDU), the World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR) conducted a risk assessment that ultimately helped make an estimated 2.5 million children safer and paved the way for a $3.1 billion national risk-reduction strategy.
 
Whether it is building safer schools or deploying early warning systems, disaster risk management is an integral part of caring for our most vulnerable, combating poverty, and protecting development gains.
 
Disaster risk management is a development imperative. Over the last 30 years, the world has lost an estimated $3.8 trillion to natural disasters. Disasters disproportionately affect the poor, threatening to roll back gains in economic and social wellbeing worldwide, and to undo decades of development progress overnight.

Transforming markets, one fan at a time: Punjab and the drive for more energy-efficient celling fans

Saima Zuberi's picture

Surrounded by hardened fan manufacturers in the city of Gujranwala, 70 kilometers north of Lahore, the task facing our World Bank Group team was to convince them that more efficient fans, to be promoted through an energy-efficiency labeling program by Pakistan’s government, would be beneficial to the sector as a whole. Questions abounded about how regulations can help competitiveness, and about whether small and lower-tier manufacturers might be left out of the equation. How would labeling be enforced, and how would forgeries be kept off the market?

Fast-forward 12 months to an IFC advisory project, which the government has set up for the procurement of 20,000 Pakistan Energy Label (PEL) energy-efficient fans in public buildings. Those fans will save the country an estimated  800,000 kilowatt hours – the  equivalent of the annual energy use of about 600 domestic refrigerators – translating to about 400 tons of greenhouse gas (GHG) emissions reduction per year.

The project has created a new market segment for manufacturers of more efficient fans, nine of whom have received certification for the PEL from the National Energy Efficiency and Conservation Authority (NEECA). The fact that four fan manufacturers out of these nine are from the small and medium-sized enterprise (SME) sector is a positive indication of wider acceptance of this standards and labeling initiative.



Photo by Etiennne Kechichian

In time for the region’s next hot season, the request for more information and knowledge about energy-efficient fans has increased. The government of Punjab, as well as NEECA, has launched a comprehensive marketing campaign to promote these PEL fans and to improve the public’s knowledge about their benefits. In a market where heavy, inefficient cast-iron fans are considered good quality, changing perceptions requires coordination with technicians, real estate developers, retailers in the streets of Lahore and the countryside, and a deep understanding of the market.

The concept of market transformation is at times abstract – but we’ve seen signs in this relatively small project, implemented by the Trade & Competitiveness (T&C) Global Practice of the World Bank Group, that targeted and client-based interventions can have a significant impact on the competitiveness of an industry.

New project uses satellites for rapid assessment of flood response costs

Antoine Bavandi's picture

High-risk areas for natural disasters are home to 5 billion out of the 7 billion total people on our planet.

Overall global losses from natural disasters such as floods, landslides or earthquakes amount to about $300 billion annually. A rapid and early response is key to immediately address the loss of human life, property, infrastructure and business activity.

Severe flooding occurred during the 2011 monsoon season in Thailand, resulting in more than 800 deaths. About 14 million people were affected, mostly in the northern region and in the Bangkok metropolitan area.

After such natural disasters, it is important that governments rapidly address recovery efforts and manage the financial aspects of the disaster’s impacts. Natural disasters can cause fiscal volatility for national governments because of sudden, unexpected expenditures required during and after an event.

This is especially critical in emerging-market economies, such as those in Southeast Asia, which have chronic exposure to natural disasters. To conserve and sustain development gains and analyze societal and financial risks at a national or regional scale, it is also critical to understand the impacts of these disasters and their implications at the socioeconomic, institutional and environmental level.
 
New project to monitor and evaluate flood severity

Financed by the Rockefeller Foundation, this World Bank Group’s Disaster Risk Financing and Insurance Program (DRFIP) and Columbia University’s Earth Institute joint project aims to define an operational framework for the rapid assessment of flood response costs on a national scale.  Bangladesh and Thailand serve as the initial demonstration cases, which will be expanded to other Southeast Asian countries such as Cambodia, Lao PDR, Myanmar and Vietnam.

Forest and climate-smart development in the Democratic Republic of Congo

Daniela Goehler's picture
Also available in: Français
Communities are working to reduce deforestation and forest degradation to address climate change in the DRC. Photo credit: Laura Otálora/The World Bank 

The Democratic Republic of Congo’s efforts to shift to sustainable land use is producing first results in the Mai Ndombe province- an encouraging model for other countries seeking to reduce deforestation and forest degradation.

As I look out the window of our small propeller plane heading toward Inongo, the capital of the Mai Ndombe province in the Democratic Republic of Congo (DRC), the difference in landscape is jarring. The areas around Kinshasa, the sprawling capital city with a population over 10 million, are marked by degraded lands with barely a tree in sight. As we fly further north and east, we pass over scattered patches of green on savannahs, but when we cross over into the Congo Basin, there are suddenly forests as far as the eye can see. Mai Ndombe, my final destination, spans more than 12 million hectares, most of which are forest, and is part of one of the most important tropical ecosystems left on earth.
 

Celebrating 15 Years of reengagement in Afghanistan

Raouf Zia's picture




Shortly after the Soviet invasion in 1979, the World Bank suspended its operations in Afghanistan. Work resumed in May 2002 to help meet the immediate needs of the poorest people and assist the government in building strong and accountable institutions to deliver services to its citizens.

As we mark the reopening of the World Bank office in Kabul 15 years ago, here are 15 highlights of our engagement in the country:

To foster innovation, let a hundred flowers bloom?

Jean-Louis Racine's picture


Helen Mwangi and her solar-powered water pump in Kenya © infoDev/World Bank

Managers of initiatives that support innovative entrepreneurs have a choice to spread their resources (and luck) among many opportunities or focus them on the most promising few. In developing countries, public and donor programs can learn a lot from how private investors pick and back innovative ventures.

In the early days of infoDev’s Climate Technology Program, our thinking was very much about letting a hundred flowers bloom: supporting a large number of firms with the hope that a few would emerge as blockbusters. Firms were selected on the basis of objective metrics tied to the innovative nature of their ideas and their economic, social and climate-change impacts. For example, while infoDev’s partner the Kenya Climate Innovation Center has more than 130 companies in its portfolio, a $50 million venture-capital fund in California would have at most six. Inspired by private investors, we have since rethought our program objectives for these centers, as well as the way we select and support businesses. The Kenya center is going through a rationalization of the firms it supports.

Like many public programs, infoDev and its network of Climate Innovation Centers had good reasons to support large numbers of companies. The main reason is the need to spread the entrepreneurship risk through a diversified portfolio. A recent infoDev literature review found that up to a third of all new firms do not survive beyond two years, let alone grow. Out of those that survive, data from high-income countries suggest that fewer than 10 percent become high-growth firms. So casting a wide net increases the chances of hitting the jackpot. The opposite approach, picking winners, is seen as destined to fail and distort the market. 

From algorithms to virtual reality, innovations help reduce disaster risks and climate impacts

Ede Ijjasz-Vasquez's picture
(Courtesy of Red Cross Red Crescent Climate Centre)
 

Natural disasters such as floods and droughts disproportionally affect the poor and vulnerable people, causing thousands of fatalities each year. If no further adaptation is pursued, climate change induced increases in disaster risk and food shortages may push an additional 100 million people into poverty.
 
Today, we celebrate the annual World Red Cross and Red Crescent Day. To reduce the impacts of disasters on the poorest and most vulnerable, and build their resilience, it is essential that we collaborate and innovate to bring solutions to the community level. Close coordination with the humanitarian sector is therefore more important than ever before.
 
The World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR) have a strong ongoing partnership with the Red Cross Red Crescent—the world’s largest humanitarian network—and in particular the Red Cross Red Crescent Climate Centre.
 
Better disaster-risk data for timely forecast and rapid financing


Pages