World Bank Group President Jim Yong Kim called on private equity firms to increase their investments in developing countries to help generate the growth, jobs, and equality needed to end extreme poverty.
“…Private equity is going to play a critical role in whether or not we can truly have high aspirations for the 1.2 billion people living in absolute poverty in the world,” he said in a speech that was liveblogged and followed on Twitter with #wblive and #GPEC2013.
As world leaders convene in Doha for this year’s UN Climate Change Conference developing countries are looking for ways to maintain momentum for change to help them transition to climate-smart growth.
When it comes to delivering improved, cost-effective infrastructure and services – a precondition for green growth – public-private partnerships (PPPs) are one way forward. At a recent event co-sponsored with the United Nations Development Programme (UNDP) in Doha, we shared our unique perspective on public sector efforts to attract and leverage private sector climate finance through PPPs.
Some key takeways from the event include:
PPPs help tap new money for infrastructure: Since the 2008 financial crisis, governments have limited financial resources to devote to capital expenditures and expanded public services. Involving the private sector offers a solution.
PPPs boost efficiency through cost savings and shorten delivery periods. They also spur innovation by bringing in private sector know-how.
PPPs facilitate projects under one umbrella: When it comes to climate initiatives, PPPs can efficiently organize and consolidate the numerous and complex arrangements that make a renewable energy (or any other climate-related) project work.
PPPs allow for appropriate allocation of supply and risk demand to the private sector, reducing taxpayer costs.
Since 1989, IFC has been the only multilateral institution providing advice to national and municipal governments on designing and implementing PPP transactions to improve infrastructure and access to basic services such as water, power, agribusiness, transport, health and education.
Find out more about the social enterprise movement in Egypt. This timely piece from BBC that features some exciting social enterprises ranging from roof-top gardening to paper made from recycled agriculture waste.
Development Marketplace partners, Iman Bibars from Ashoka and Magdi Amin from the International Finance Corporation (a co-sponsor of the upcoming Egypt DM) highlight important barriers blocking the movement's growth and hindering its ability to keep pace with demand for improved goods and services to the poor.
A woman works in a small shop in Ghana. Photo by Arne Hoel
What will it take for the world to wake up and realize the advantages of supporting women entrepreneurs in the developing world?
If that sounds like an odd question to be asking in the 21st century, just consider some facts. We know that globally women make up almost half the world’s workforce. And we know that in developing economies, 30-40% of entrepreneurs running small or medium sized businesses are women.
But here’s something you may not know – at least 9 out of 10 women-owned businesses have no access to loans. So, just imagine the frustration of a woman in a developing country, who has started a small business, is attracting a good clientele, has a business plan to grow her business, but can’t get a loan to expand. That's not an isolated story. It’s a frustration shared by many women in the developing world. And the frustration of those women sounds echoingly similar to the frustration still lingering in the voices of older women from rich countries, telling how some three decades ago they were refused bank home loans, despite having a guaranteed income.
PRETORIA, South Africa - I have to admit it. I’m a bit of a development junkie. For most of my adult life, I’ve been reading thick tomes describing the success or failure of projects. I talk to friends over dinner about development theory. And I can’t stop thinking about what I believe is the biggest development question of all: How do we most effectively deliver on our promises to the poor?
So you can imagine how excited I was to have a day full of meetings with South Africa’s foremost experts on development: the country's ministers of finance, economic development, health, basic education, water and environmental affairs, and rural development and land reform - and then with President Jacob Zuma.
I chose to travel to South Africa as part of my first overseas trip as president of the World Bank Group because of the country’s great importance to the region, continent, and the world. It is the economic engine of Africa, and its story of reconciliation after apartheid is one of the historic achievements of our time.
Last week, MIGA hosted a panel discussion on the role of the private sector in sustainable growth as part of the World Bank Group’s Sustainable Development Network Forum 2012. Taking the initiative as an agency of the World Bank Group that encourages investment by the private sector, MIGA brought this angle to the more general sustainable growth discussion.
Keynote speaker Jeffrey Leonard from the Global Environment Fund opened citing the World Bank President’s remarks on sustainable development that were right on the money – outlining an urgent need for attention to the matter, noting that resources must be made available – yes, good, onward! The catch? They were attributed to a president who left office 25 years ago (Tom Clausen).
As Process Partners for the India Development Marketplace 2011, (India DM) one of the exciting things our team at Innovation Alchemy is doing is to help seek and surface interesting Social Enterprises that are working on tough social challenges, and building sustainable models to solve them.
A rigorous assessment process with a panel of independent expert assessors and jury will help the India DM 2011 program arrive at 13 winners who will each get funded with $ 50,000 over 24 months to effectively scale their SE models.
The call for entries has just been launched on December 10th 2010 and Applications can be submitted onlinebefore 23rd January 2011. As this process moves forward we will be traveling across the Target states of Bihar, Rajasthan and Orissa to meet and engage with the social impact community – to help eligible organizations apply for the competitive grant available under the India DM. More on that soon.
Not even the eruption of Iceland’s Eyjafjallajokull could keep the Netherlands’ Prince of Orange, the chair of the UN Secretary General’s Advisory Board on Water and Sanitation, and the World Bank’s Ngozi Okonjo-Iweala from participating in a Davos-style panel discussion of solutions for the 2.6 billion people who still lack access to sanitation.
The BBC’s Katty Kay moderated today’s official Spring Meetings event, which also included South Africa’s Minister of Water and Environmental Affairs Buyelwa Patience Sonjica; Senior Deputy Assistant Administrator at USAID’s Bureau for Global Health Gloria Steele; Ek Sonn Chan from Cambodia’s General Director of the Phnom Penh Water Supply Authority; and IFC’s Executive VP Lars Thunell.
I haven’t seen the Bank’s J building mini-amphitheater filled with that much energy since, well, ever. The standing room-only event started with a delighted Ngozi acknowledging the crowd for bringing the issue of water and sanitation to such a high level on the occasion of the Spring Meetings.
The President of Mongolia, Elbegdorj Tsakhia, sat at the table behind a Greek salad. We were at a lunch hosted by the Corporate Governance Development Center, an NGO which brings international best practices in corporate governance to Mongolia. Also present were the Minister of Education, the Director of the Financial Regulatory Commission (FRC), the Deputy Chief of Party of the USAID-funded Economic Policy Reform and Competitiveness Project (EPRC), which helped to establish the Center with the Institute of Finance and Economics, and CEOs of leading Mongolian firms. Several International Finanace Corporation (IFC) clients were among them.
The salad looked delicious, but it would have to wait. President Elbegdorj was speaking about the role of corporate governance in Mongolia. "Corporate governance is important for Mongolia's competitiveness," he said. I was delighted. I've been waiting a long time for this moment.
I thought that seeing zoo animals would have prepared me for seeing these unfettered beasts at close quarters, but I was completely wrong. They are HUGE.
I’d seen the video, read the book, heard the David Attenborough podcast, written the box, gone to the zoos, got the T-shirt. So I thought I knew Komodo Dragons pretty well, even if I hadn’t seen them in the wild. I’d seen many other types of monitor lizards in forests and along rivers all over Asia and Australia, and didn’t think that seeing a larger one would be an especially great way to use up a precious day of vacation.
So when we landed in Flores in the dry Lesser Sunda islands of southern Indonesia, we were in two minds whether to bother to go to Komodo National Park which for nearly 20 years has been a World Heritage Site. There are certainly other things to do in western Flores such as trekking the Mbeliling forests, visiting the remarkable highland village of Waerebo, snorkelling/diving, and vegging out in some interesting hotels such as the EcoLodge. Eventually, on the grounds that it would be faintly ridiculous to be so close to such a famous site and not to take a day to go, we rented a boat for the two-hour trip to the park’s Tourist Zone. (Mind you, I believe I’m one of the very few people ever to have gone to Agra and not seen the Taj Mahal.)
Children breathe thick, toxic smog from thousands of stoves in Ulaanbaatar's ger districts, which are home to 60 percent of the city's population.
There’s no capital city anywhere in the world with a housing problem like Ulaanbaatar, Mongolia. Imagine a city of one million people. Then imagine 60 percent of them living in settlements without water, sanitation or basic infrastructure, often in traditional Mongolian felt tents, known as gers. Then imagine these people relying on wood- or coal-burning stoves for cooking and heating, with fuel costs eating up 40 percent of their income. Then imagine the discomfort of having to get up in the middle of the night when it’s -35 degrees Celsius to go to the bathroom – outdoors.
Worst of all, imagine you and your children breathing the thick, toxic smog from thousands of stoves 24 hours a day, seven days a week. Unfortunately, this is not imagination, this is the real situation for over a half million people living in the ger districts of the capital. Not a pretty picture.
The Inter-American Development Bank and the Inter-American Investment Corporation, the World Bank Group (IBRD, IFC and MIGA), Corporacion Andina de Fomento, the Caribbean Development Bank and the Central American Bank for Economic Integration are all working together to explore new opportunities to protect the economic and social gains achieved in the region during the last five years.
World Bank President Robert Zoellick spoke about the importance of this joint effort:
"Latin America and the Caribbean have achieved substantial economic and social progress over the last five years and we must ensure that this is not lost because of the external shock of the global crisis. We need to avoid a social and human crisis."
Restaurants in Mongolia can face fines for not having the right number of forks.
Mongolia's done a good job in reforming its business environment since the collapse of communism in the early 1990s. In Doing Business 2009, the country ranked 58th out of 181 economies and outperformed its neighbors, Russia and China, by significant margins. Well done. But that doesn't mean that things are easy for small businesses here. The overall business environment is a serious drag on Mongolia's development prospects, and the situation keeps getting worse as the financial crisis sinks its claws into the economy.
One area fully in Government control is business inspections. This is an important function: inspections protect the health and safety of the general public. But when inspections run wild, they can become a major burden to businesses, especially small ones. Inspections can impose large costs on businesses in terms of time and money, encourage firms to bribe their way out of violations, and even encourage entrepreneurs to operate in the shadows. That means less tax revenue and potentially dangerous products and services being offered to the public.