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Financing

Can we find a real and viable solution for women who need banking services?

Malcolm Ehrenpreis's picture

Since the beginning of time, women have been at a disadvantage when looking for financial loans. One reason is that women have less control over land and assets that can be used as traditional collateral. This puts a real damper on her ability to launch an enterprise or, even when she manages to launch one successfully, to take it to the next level.

In Africa, women’s entrepreneurial knack is self-evident to anyone who sets foot on the continent—just look at any roadside! So, this problem is likely quite costly and holding back development. Can we solve it somehow?

A Arne Hoels it happens, the Entrepreneurial Finance Lab, an entity that spun off from Harvard’s Center for International Development in 2010, has developed a tool using something called “psychometric testing”, which measures personal characteristics such as knowledge, skills, education, abilities, attitudes and personality traits as a means to predict how likely it is a person will pay back a loan. And it is proving quite effective. Could this be a way to finally help find a solution for women who don’t have any credit history or hold formal title to assets that are traditionally accepted as collateral?

The World Bank Group’s Global Practice for Finance and Markets (GFMDR) started thinking seriously about this, and worked to see it if it could be integrated in a Bank-funded project in Ethiopia (the Women Entrepreneurship Development Project, US$50m). Francesco Strobbe leads the project team, and started to discuss the issue with us in the World Bank’s Africa Region Gender Innovation Lab (GIL). “I thought this was a great opportunity to test some innovative measures to see if we could reach a real breakthrough with much potential for women entrepreneurs—in Ethiopia and elsewhere.”

More and Better Financing for Development

Homi Kharas's picture

One of the major issues in the Open Working Group’s outcome report on the shape of the post-2015 agenda is the availability and access to financing to allow the goals to be met. There is a great temptation to simply try and calculate the financing needs for each goal and add them up to get the total financing need. Because this approach seems simple, it is appealing to many. The problem is that it is conceptually wrong.
 

The Time to End Poverty Is Now

Joachim von Amsberg's picture



If you saw how poor I was before, you would see that things are getting better.
 
When I hear stories like that of Jean Bosco Hakizimana, a Burundian farmer whose life was transformed by a cow, I get excited about the change we can all make. Jean Bosco’s income is improving, his kids are eating better, his wife has some nice clothes, and his manioc fields are yielding better harvests — all thanks to the milk and fertilizer from this one cow.
 
A similar story is playing out in more than 2,600 communities across Burundi, offering new life to a people once decimated by civil war. These community agricultural programs sponsored by the International Development Association (IDA), the World Bank’s fund for the poorest, show that development doesn’t have to be that complicated and that collective effort can make all the difference.

Charting a Better Future through IDA

Joachim von Amsberg's picture

Available in Español, Français, عربي

Results Matter -- See IDA at Work

Speaking ahead of the upcoming World Bank-IMF Spring Meetings, Bank Group President Jim Yong Kim called on the international community to seize the historic opportunity presented by favorable economic conditions in developing countries and end extreme poverty by 2030. This is an exciting goal, and success in achieving it has become possible. Kim pointed to the International Development Association, or IDA, the Bank’s fund for the poorest, as central to the tremendous effort needed to make this happen.

Every three years, development funders and borrowing country representatives meet to deliberate and agree on IDA’s strategic direction, financing, and allocation rules, and we just kicked off this process for the 17th “replenishment” of IDA (which provides development financing for the period July 1, 2014-June 30, 2017).

Two days of open discussion in Paris on March 20-21 with both investors and borrowers covered the complex development agenda faced by IDA countries, as well as the fund’s strategic approach to dealing with these issues. We worked to chart a way forward for IDA to most effectively improve the lives of the roughly 1 billion people in IDA countries still living on less than $1.25 a day.

Identifying the Potential for Results-Based Financing

Although Results-Based Financing (RBF), an approach that allocates public funds based on the achievement of specified results, has had some practical successes in the health and education sectors, its use in the sanitation sector has been limited. Identifying the Potential for Results-Based Financing for Sanitation by Sophie Trémolet looks at the potential for application.

Featured Tools: Toolkit for Public-Private Partnerships in Roads & Highways

Anna Barbone's picture

The Toolkit for Public-Private Partnerships in Roads and Highways is intended to be a key reference guide for public authorities in developing countries for the development of their PPP programs in the highways sector. However, much information on the subject is readily available, notably through the internet, and the Toolkit has not vocation nor pretends to be a unique reference on the subject.

Supply meets demand: Chinese infrastructure financing in Africa

David Dollar's picture

China is emerging as a major financer of infrastructure projects in Africa, as documented in Building Bridges, a report released this week by the World Bank.  This is a very welcome development because Africa has an infrastructure deficit and China has both the financial resources and the construction industry capacity to help meet the demands.