This week marks the launch of the new, World-Bank supported Ethiopia Climate Innovation Center (CIC). The center joins a global network of CICs and is designed to support local Ethiopian businesses that are responding to the challenges of climate change by providing mentorship, financing, access to markets, and policy support.
Many people have the misconception that my field -- global development -- is just about do-gooders and charities helping the poor. To be sure, many charitable groups are doing generous, laudable work. But global development extends far beyond charity and has a greater impact on the global economy than most people think.
Strong economic growth in developing countries became an engine for the global economy after the 2008-09 financial crisis, accounting for roughly 50 percent of all global growth. In addition, fully half of the United States’ exports now go to emerging markets and developing economies.
Global economic development can be good for your bottom line. Our focus is on helping more than a billion poor people lift themselves out of extreme poverty and on boosting the incomes of the poorest 40 percent in developing countries. To do that, we need to find economic growth strategies that help all segments of society in emerging markets -- reaching even fragile states striving to put years of conflict behind them and to create good jobs for their people.
The question I ask my team all the time is, what’s our plan? Increasingly scarce public funding isn’t enough to get the job done. We need to attract private sector investment that creates jobs. Ninety percent of all jobs in the developing world are created by the private sector. If we have high aspirations for the poor and vulnerable, there is no argument: We need the private sector to flourish, even in the poorest countries.
In the Middle East and North Africa (MENA) region there is really very little choice. The region only receives about two percent of the world’s annual precipitation and holds about 1.2 percent of the world’s renewable water resources. This makes water a deeply precious and scarce resource. The statistics are stark: The amount of water consumed in the United States averages 2,800 cubic meters per person per year, whereas in Yemen, it is 100 cubic meters per person.
The theme of this year’s #worldwaterday focuses on water and energy. And for good reasons.
"1700 people Sir!” Satya said. “Everybody is fine.” Satya had just shown me the equipment of the multi-purpose cyclone shelter in Ganjam District, where Cyclone Phailin made landfall. The equipment had looked exactly the same as what I had been shown during the briefing the day before at the Odisha Disaster Management Agency in Bubaneshwar.
That had surprised me because the shelter where we were was almost ten years old, being one of the first ones to be built after the super cyclone of 1999. “I am the Secretary of the Shelter Management Committee Sir; I am in charge of maintenance.” Satya had said when I asked him how come everything looked in such good shape. “I have done this for seven years.” He added proudly. I was amazed. It is not often that a field visit highlights a facility that is close to ten years old. Even new facilities rarely look this good…
For the last six years, a power plant in San Luis Potosi, Mexico has bought water from a nearby wastewater treatment plant to use in its cooling towers (instead of using freshwater). This operation, Project Tenorio, a public-private partnership, continues today and has already resulted in the reduction of groundwater extraction of at least 48 million cubic meters (equivalent to 19,000 Olympic size pools) and increased aquifer sustainability.
This is a good example of the water and energy nexus in practice: the wastewater treatment plant covers almost all of its operating costs from this additional revenue stream and the power plant gets a more reliable water source that is also 33% cheaper than groundwater in that area.
Treated wastewater has been used to reduce the water requirements of power plants in several other countries as well, as water supply becomes more variable or disappears. In the US, for example, around 50 power plants are using treated wastewater for cooling in order to adapt to water shortages. However, innovative integrated approaches like these are still more of an exception than the norm.
While recently touring drought-stricken California, President Obama remarked: "We can't think of this simply as a zero-sum game. It can't just be a matter of there's going to be less and less water so I'm going to grab more and more..."
In his State of the State address, California’s Governor, Jerry Brown, declared a drought emergency. He suggested: “Among all our uncertainties, weather is one of the most basic. We can’t control it. We can only live with it…We can take this drought as a stark warning of things to come.”
He further emphasized the need to conserve water, expand storage, rethink water rules, invest in drinking water protection, and rethink the amount of state water each sector receives.
But, how can California move away from existing rules, expectations, and legacies that include multi-layered federal subsidies and senior water rights to a non-zero sum approach to resolve competing and conflicting water realties?
After more than two hours stranded at a small town train station near Tokyo, Japan, with record snowfall and freezing temperatures outside our windows, the train driver addressed us for the third time – no new updates. “Our personnel are working to fix the problem,” the voice said. At that moment, an older man seated next to me leaned over and told me, “We have to do our part; the people working in the snow are trying their best to fix the system, so we can move. We should remain calm and wait - we cannot be part of the problem.” I was starting to understand why Japanese are so resilient.
This adventure began last February, following my participation in the launch of the new, $100 million joint program between Japan and the World Bank for disaster risk reduction. This program, implemented by the Global Facility for Disaster Reduction and Recovery (GFDRR), will benefit a large number of especially vulnerable countries around the world. As part of this new initiative, the World Bank also launched the Disaster Risk Management Tokyo Hub.
The launch for the Tokyo Hub was held at a high level symposium at the Japan Keidanren (Japan Business Federation) on February 3, which attracted more than 400 people and had substantial media coverage. The Senior Vice-Minister for Finance/Senior Vice-Minister for Reconstruction Jiro Aichi (a native of Sendai) spoke of Japan's commitment to disaster risk management (DRM) and thanked the World Bank for its strong support, before kicking off an intense program of inter-agency meetings to better utilize Japanese expertise in DRM practices.
My experience with Japanese solidarity and resilience, however, was best highlighted the day I was returning home. On February 9, as I was trying to get to Narita airport, more than 27 centimeters of snow fell on Tokyo and other areas of Japan, the heaviest of 40 years. Many buildings in the city collapsed, leaving at least 11 dead and more than 1,200 injured across the country.