Climate change is a threat to global development and to poverty alleviation. And yet, reducing greenhouse gas emissions is proving difficult because all players in an economy contribute to the problem. To make a difference, we must reduce our emissions in a coordinated manner.
This is no easy task. So where do we go from here?
One approach involves pricing the “externalities” that are contributing to climate change. Pricing externalities into the costs of production is nothing new. A classic textbook example is the paper mill that sits upstream from a fishing village.
Discharge from the mill pollutes the river, diminishing the fishermen’s catch. The mill freely uses the water of the river in its production of paper, but does not pay for the damage of the negative externality that it causes. To remedy the situation, regulations can be put in place to stop waste from going into the river – or the mill can pay a fine equivalent to the loss of the fishermen’s revenue.
The latter is an example of an externality priced into the cost of production. The same can be done to combat climate change.
In this case, carbon emissions are the externality that must be priced. Doing so provides a cost-effective and efficient means to drive down greenhouse gas emissions as the cost of such pollution goes up.
India’s stellar economic performance during the past decade has brought immense benefits to the people. Emmployment opportunities have increased, enabling millions to emerge from poverty.
But rapid growth has been clouded by a degrading environment and a growing scarcity of natural resources. Today, India ranks 155th among 178 countries accounting for all measurable environmental indicators, and almost dead last in terms of air pollution. What’s more, more than half of the most polluted cities in the G-20 countries are in India. The deteriorating environment is taking its toll on the people’s health and productivity – and costing the economy a staggering Rs. 3.75 trillion each year (US$80 billion) - or 5.7 percent of GDP. So, does growth – so essential for development – have to come at the price of worsened air quality and other environmental degradation? Fortunately, India does not have to choose between growth and the environment.
If you go to a conference on cities and climate change, you inevitably hear the statement that “countries talk…but cities act”. This message was loud and clear at the C40 Cities Climate Leadership Summit in Johannesburg last month, where a new report released by the C40 and ARUP detailed the 8000+ initiatives that C40 member cities are undertaking to either reduce GHG emissions or increase their climate resilience. Since the first such report came out in 2011, more cities are reporting on their efforts, and those reporting are doing ever more, expanding the array of initiatives they have launched.
Scanning the Twittersphere for the hashtag #wbheat, you'll get an idea of how successful the World Bank's online course on climate change has been.
Learning is a key accelerator for development. In fact, knowledge and learning are intricately connected. As a global development institution, we produce world class knowledge on development issues. However, the impact of this knowledge can only be fully realized when we transform it into learning for our development partners, practitioners, policy makers, our staff and, in fact, the public at large. Barely two percent of our knowledge products get translated into bite-sized practical learning.
Today, we are seeing a revolution in education and learning. Digital and on-line learning is helping us to scale up and reach thousands of people who are eager to learn and apply new knowledge and continue their learning as they progress through their careers, face new challenges, and acquire new competencies. This outreach and democratization of learning takes on greater importance as we endeavor to provide the best possible solutions for vexing development problems. Learning today is thankfully not a matter of sitting in a class room and listening to a lecture. It is available to us at our fingertips, just-in-time, and conveniently sized to our needs.
Vietnam is one of the world's development success stories. It is undeniable.
Between 1990 and 2010, Vietnam grew at an average annual rate of 7.4 percent—one of the world’s top five growth performance records, anywhere, over the same 20-year period. In the process, the incidence of poverty has declined dramatically, from 58 percent in 1993 to about 10 percent today. Nowadays Vietnam is no longer considered a low-income country: it has attained lower-middle income status.
Yet this successful economic transition has also generated a number of challenges. Chief among them is that of sustaining economic growth going forward.
- ending poverty
- South Asia
- Urban Development
- Social Development
- Private Sector Development
- Migration and Remittances
- Information and Communication Technologies
- Global Economy
- Climate Change
- Agriculture and Rural Development
- South Asia
- Sri Lanka
A few weeks ago, we passed a big milestone in the World Bank Group’s climate change and development work. For the first time, small-scale farmers earned carbon credits from an agricultural land management project.
The project in western Kenya kicked off what will surely be many more soil carbon projects in coming years. It also shows how sustainable farming (such as increased mulching and less tilling) can be part of the global effort to reduce greenhouse gas emissions – while improving livelihoods for poor, rural families.
The soil carbon project, made possible by an accounting system for low-carbon farming approved in 2011, took several years to prepare and implement. I had the fortune to be right there, working with farmers on the ground in Kenya and trying to understand their reality.
Building social movements. I often hear about the need to create social movements to tackle a number of entrenched global challenges such as ending extreme poverty, promoting greater income equality, and combatting climate change.
History is full of social movements that have succeeded and failed. The lessons from one ongoing movement that I know well – the fight against AIDS – should be examined closely by those looking to build movements today.
Lesson No. 1 from the AIDS movement is to believe only in the possibility -- not the inevitability -- of success. Opponents will fight and appear immovable. As those of us who lived through the early days of the AIDS fight, it was always far from certain that we would reach our goals.