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inclusive development

Media (R)evolutions: Making broadband policy universal for inclusive development

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

In order to ensure economic and social development is inclusive, all citizens, including the poor and those living in rural areas, must have access to information. Communication services, which includes mobile broadband, remains a crucial element in this goal. However, cost, competition, demand and affordability, and customer distribution (among others) all influence how telecommunication firms view the feasibility of providing specific technology services.

National broadband plans (NBPs) and universal access and service (UAS) policies that provide regulation, financing, and access goals are essential to ensuring that a country can provide broadband services. These policies, which can be tailored to ensure they will provide access to poor and rural communities, should not be viewed as an obligation but an opportunity for growth. The World Bank acknowledges this in the 2016 World Development Report: Digital Dividends:

Government policies and regulation of the internet help shape the digital economy. Particularly through their policies for the ICT sector, governments and regulatory agencies create an enabling environment for the private sector to build networks, develop services, and provide content and applications for users. Increasingly, governments seek to cooperate across borders on issues such as cybersecurity, privacy, and cross-border data flows. Internet-enabling policies have evolved over time, especially those for the ICT sector [...] Broadband internet, in particular, is seen as a general-purpose technology, essential for the competitiveness of nations, and governments have invested more than US$50 billion in broadband networks since 2009 as part of stimulus packages. Most also have national broadband plans.


With this in mind, the Broadband Commission tracks national progress towards a set of targets, the first of which is to make broadband policy universal. Advocacy target 1 states, “All countries should have a National Broadband Plan or strategy or include broadband in their UAS definitions.” According to its latest annual report, The State of Broadband: Broadband catalyzing sustainable development, growth in the number of countries with NBPs has progressed over the past eight-year period, but has stabilized in the past three. There are now 151 countries with a NBP, and 38 have not yet developed one. Azerbaijan is the most recent addition to the list of countries with an approved NBP, and another seven countries are planning to introduce one: Cape Verde, Cuba, Dominica, Iraq, Solomon Islands, Saint Lucia and Togo.

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

Poverty is Sexist 2016 Report
ONE Campaign
Last year ONE released its first “Poverty is Sexist” report, aimed at pressuring leaders to put girls and women at the heart of key policies and decisions. The report demonstrated two truths: 1. That poverty and gender inequality go hand-in-hand. Being born in a poor country and being born female amount to a double whammy for girls and women: they are significantly worse off than their counterparts in richer countries, and in every sphere they are hit harder by poverty than men. 2. Investments targeted towards girls and women pay dividends in lifting everyone out of poverty more quickly, and are essential in the overall fight to end extreme poverty everywhere. 2015 saw the world debate and decide the Sustainable Development Goals (SDGs), the Addis Ababa Action Agenda and a climate deal at COP 21 in Paris. This year, leaders have the opportunity to turn these aspirations into results.
 
Practice Note: Young People's Participation in Peacebuilding
UNDP
Throughout the world, more than 600 million young people live in fragile and conflict-affected contexts today.  They are among the most affected by the multiple and often interlinked forms of violence – from political violence and criminal gangs to organized crime and terrorist attacks that plague their countries and communities, bearing enormous and long-lasting human, social and economic costs. Over the past decade, the involvement of some young people – particularly young men, but also increasingly young women – in violence and extremist groups has led some to paint youth generally as a threat to global security and stability. But research shows that youth who participate actively in violence are a minority, while the majority of youth – despite the injustices, deprivations and abuse they can confront daily, particularly in conflict contexts – are not violent and do not participate in violence. Moreover, a growing body of evidence suggests that young women and men can and do play active roles as agents of positive and constructive change.
 

Blog post of the month: What is your challenge? Creating Jobs and Livelihoods for the bottom 40%

Parmesh Shah's picture

Each month People, Spaces, Deliberation shares the blog post that generated the most interest and discussion. In February 2016, the featured blog post is "What is your challenge? Creating Jobs and Livelihoods for the bottom 40%" by Parmesh Shah.

A farmer harvests mung beans in Cambodia's northern province. Extreme poverty in the world has decreased considerably over the past three decades. In 1981, more than half of citizens in the developing world lived on less than $1.25 a day. This rate has dropped dramatically to 21% in 2010. Moreover, despite a 59% increase in the developing world’s population, there were significantly fewer people living on less than $1.25 a day in 2010 (1.2 billion) than there were three decades ago (1.9 billion). However, 1.2 billion people still live in extreme poverty—an extremely high figure, so the task ahead of us remains herculean.
 
Among the poor, 78% live in rural areas, and 500 million of these are small farmers. Of these, 170 million are women farmers. Globally, 2.5 billion are dependent on small farms as a source of livelihood and employment.  Agriculture contributes one third of GDP in Africa and more than 65% of the workforce depends on this sector. There has been significant progress in increasing agricultural production and expansion of livelihood and economic opportunities in rural areas. There are about 40 million enterprises, from very small to medium-sized, involved in agribusiness. 
 
Nevertheless, they are too small in size and quality to make the kind of dent in jobs and employment that is needed.  Agriculture accounts for 32% of total employment globally, according to the ILO’s Global Employment Trends Report 2014.  In 2013, 74.5 million youth – aged 15-24 - were unemployed, an increase of more than 700,000 over the previous year. That same year, the global youth unemployment rate reached 13.1%, which was almost three times as high as the adult unemployment rate. One contributing factor in these rates is the lack of interest in agriculture among youth cohorts.  Simply put, agriculture is not a preferred job and livelihood option for young people.
 

What is your challenge? Creating Jobs and Livelihoods for the bottom 40%

Parmesh Shah's picture
A farmer harvests mung beans in Cambodia's northern province. Extreme poverty in the world has decreased considerably over the past three decades. In 1981, more than half of citizens in the developing world lived on less than $1.25 a day. This rate has dropped dramatically to 21% in 2010. Moreover, despite a 59% increase in the developing world’s population, there were significantly fewer people living on less than $1.25 a day in 2010 (1.2 billion) than there were three decades ago (1.9 billion). However, 1.2 billion people still live in extreme poverty—an extremely high figure, so the task ahead of us remains herculean.
 
Among the poor, 78% live in rural areas, and 500 million of these are small farmers. Of these, 170 million are women farmers. Globally, 2.5 billion are dependent on small farms as a source of livelihood and employment.  Agriculture contributes one third of GDP in Africa and more than 65% of the workforce depends on this sector. There has been significant progress in increasing agricultural production and expansion of livelihood and economic opportunities in rural areas. There are about 40 million enterprises, from very small to medium-sized, involved in agribusiness. 
 
Nevertheless, they are too small in size and quality to make the kind of dent in jobs and employment that is needed.  Agriculture accounts for 32% of total employment globally, according to the ILO’s Global Employment Trends Report 2014.  In 2013, 74.5 million youth – aged 15-24 - were unemployed, an increase of more than 700,000 over the previous year. That same year, the global youth unemployment rate reached 13.1%, which was almost three times as high as the adult unemployment rate. One contributing factor in these rates is the lack of interest in agriculture among youth cohorts.  Simply put, agriculture is not a preferred job and livelihood option for young people.
 

The neglected universal force for peace and stability: LOVE?

Leszek J. Sibilski's picture
2016 Summer Session students, Montgomery College

“Gravitation is not responsible for people falling in love.” – Albert Einstein
 
When I present lectures on sociological theories, I often see in my students’ bored facial expressions indicating a total lack of interest in the subject. But, when I move the lecture to issues related to education, social class, or global stratification, I can see a few faces turning into a full attention mode, but still not all the students are with me. However, there is one topic that will cause the entire class to lay down their e-devices and start to listen to every word: that is the topic of LOVE. Love strikes me as a neglected force that, once released, could bring about international stability and boost economic development.
 
Love emerges in my lectures for its role in interpersonal relations in socialization and development. I begin my lecture with a discussion about the role of family in social development and then move towards marriage and, more broadly, love. The topic family frequently triggers strong emotional reactions among students. As classroom discussions reveal many have experienced some family difficulty or problems. And then comes the topic of love: each time when I talk about love, I can see melting facial expressions in each of my students. The purpose of the lecture is not only focused on romantic teenage love based on hormones and erotic attraction. In the Bible, in the Gospel of John, Chapter 15:13 “The Greatest Social Worker Ever” says, “Greater love has no one than this – that someone lay down his life for his friends.” I always substantiate this quote with a compelling story about the Polish Franciscan Maximilian Kolbe who volunteered to die by starvation in place of a stranger in the Nazis’ death camp of Auschwitz. Pope John Paul II declared him "The Patron Saint of Our Difficult Century." All of sudden, gender, complexion or ethnicity no longer matter. Neither does religion, age or sexual orientation. When I see students’ reaction to my lecture on love in everyday life, I get chills down my spine and goose bumps all over my body.
 
Watching the reactions of my students, I have become deeply convinced that love is not only a universal force for good, but one that also brings to the human heart hope and peace for a better tomorrow. When humans are in love, they can selflessly endure more- since love, like ray of hope, stimulates them to persevere. Hopefulness too, encourages us to explore, build, innovate and thrive, but it all starts with love. 
 

How can the World Bank better support persons with disabilities? Send us your ideas

Ede Ijjasz-Vasquez's picture
As part of the World Bank Group Annual Meetings that took place in Lima last October, we organized a Wikistage event to discuss the corrosive effects and the social and economic implications of exclusion. The World Bank Group has two corporate goals: to support developing countries in the elimination of extreme poverty by 2030, and the boosting of shared prosperity. The main message of the Wikistage event was simple: it is impossible to achieve these goals if countries and societies do not tackle the root causes of exclusion.

One of the statements that has stayed with me from the event was from Victor Pineda, President of World Enabled. He said: “Disability does not discriminate. Each and every one could, at any point, fall into disability. It’s the only minority group that everybody can join” We are an accident away to join a group that is commonly excluded by societies around the world.

Fortunately, the development community has begun to realize the critical role of exclusion, and in particular exclusion of people with disabilities. This has been a year of fundamental change for the recognition of peoples with disabilities in the development agenda through the Sustainable Development Goals (SDGs).  

The Post-2015 Development Agenda clearly states that disability cannot be a reason or criteria for lack of access to development programs. The new framework is audacious. It unequivocally bolsters equal opportunities for persons with disabilities in access to education, vocational training, jobs, transportation, public spaces, human settlements, and political life.

The SDGs include seven targets that explicitly refer to persons with disabilities; and six further targets on persons in vulnerable situations, which include persons with disabilities.

These targets alongside the Convention on the Rights of Persons with Disabilities, now ratified by 160 countries provide both the moral imperative and clear milestones to ensure that persons with disabilities can fully participate in and benefit from poverty reduction and development efforts.

Our research in the World Bank shows the many ways in which persons with disabilities are ignored, stereotyped, and stigmatized in the countries where we work. The rising attention to issues of social inclusion is based on the realization that, while great strides have been made in reducing extreme poverty, in country after country, entire groups remain excluded from development gains.

Our social inclusion flagship report – Inclusion Matters – highlights the importance of societies to provide the ability and the opportunity to excluded populations to access services, markets, and spaces. Furthermore, our research shows that without a sense of dignity, providing the ability and opportunity to excluded populations is not enough to achieve a transformation of their well-being.

Introducing our new Sustainable Communities blog series

Ede Ijjasz-Vasquez's picture
Making sure that villages, cities, but also countries and societies at large can grow in a sustainable way will be key to achieving the World Bank’s twin goals of eliminating poverty and boosting shared prosperity. This new blog series on “Sustainable Communities” will provide a platform for our experts to explore the multiple aspects of sustainability – environmental, social, economic, and discuss what concrete solutions can be implemented to pave the way for a brighter, more sustainable future.
 
 

Things I Learned from WikiStage WBG Lima

Maya Brahmam's picture

The first WikiStage WBG was held in Lima on October 6 on the topic of social inclusion. You can view the entire show at World Bank Live.  

WikiStage Lima crewWhat’s a WikiStage?
This was a special event organized by the World Bank and produced under license from WikiStage. It featured an inspirational sequence of talks, performance, and films in a 3-minute, 6-minute or 9 minute format. The WikiStage Association in Paris is a non-profit organization that supports a global network of volunteers and event organizers. WikiStage is independent from Wikipedia or other “Wiki” projects and is a young knowledge sharing collaborative that began in 2013 and today represents a network of more than 50 event organizers in 10 countries.

Our goal was to create an interesting and tightly choreographed program that explored social inclusion through the perspectives of people from a variety of different backgrounds and disciplines. It was presented in English and Spanish to a live audience of 500 and livestreamed to a global online audience.

Here are three things I learned from organizing the WikiStage WBG Lima.

'Model Law for Best Practice in Financial Consumer Protection': An important driver for Universal Financial Access

Ros Grady's picture

The Client Protection Principles: Model Law and Commentary for Financial Consumer Protection (the "Model Law"), recently launched by the Microfinance CEO Working Group, has the potential to be a useful resource for the many developing and emerging economies that are seeking to design and implement international best practices in financial consumer protection, having recognized that consumer protection is a critical element in building and maintaining trust in the financial sector and achieving financial inclusion targets.

The Model Law was prepared on a pro-bono basis by the international law firm DLA Piper on the basis of the 7 Client Protection Principles of the Smart Campaign. The project, which took place over a 15-month period and was managed by Accion on behalf of the Council of Microfinance Counsels, included consultations with financial inclusion stakeholders and legal experts, who undertook a review of existing legal frameworks in various countries. Reference was also made to international best practices and principles such as the World Bank’s Good Practices on Financial Consumer Protection and the G20 High Level Principles on Financial Consumer Protection.
 
The Model Law is a high-level, activities-based law that is intended to apply equally to all financial-services providers. This includes “banks, credit unions, microfinance institutions, money lenders and digital financial-service providers.” The apparent aim is to ensure an equal level of protection for all consumers and a level playing field. The consumers concerned may be an individual or a micro-, small or medium-sized business, and so the law will apply equally to consumption and small-business facilities. Many of the provisions are framed in terms of principles, the detail of which would need to be filled out in related legislation.


 
The framework of the Model Law follows the Smart Campaign’s 7 Client Protection Principles, and so it covers the topics of appropriate product design and delivery; prevention of overindebtedness; transparency; responsible pricing; fair and respectful treatment of clients; privacy of client data; and mechanisms for complaint resolution. There is also a section covering the establishment of a dedicated supervisory authority with broad functions relating to the regulation, supervision and registration of financial-services providers, market monitoring and enforcement.

Piggybanks for plunder: Corrupt cash flows to Global Cities, requiring transparency and complete disclosure of assets

Christopher Colford's picture



Corrupt cash from secretive international sources – deliberately funneled through ‘shell companies’ to conceal the money’s illicit origins – is often used to buy ‘Towers of Secrecy’ in leading global cities like New York, as documented by a recent New York Times investigation.

Cities exert a magnetism that’s irresistible – attracting not just the most ambitious who seek economic opportunity and the most creative who revel in cultural richness, but also lawbreakers and looters: notably nowadays, the corrupt kleptocrats and tax-avoiding oligarchs whose hot money increasingly flows into the safe haven of prime real estate in the world’s leading cities.

At least part of the trend toward soaring center-city property prices, according to many anticorruption monitors, is due to the impact of illicit financial flows. It’s not just the plutocratic One Percenters who are steadily bidding up real-estate valuesPlunderers and profiteers – often concealing their identities, with the aim of shielding their wealth from tax authorities and international asset-trackers – use prestigious parcels of center-city property as a piggybank to shelter their tainted lucre.

The most vibrant and most competitive of Global Cities – notably London, Paris, New York, Hong Kong and Singapore – have long been magnets for money, luring the world’s most enterprising entrepreneurs as well as its most desperate refugees. As their global vocation and vitality have lured the ambitious and the avaricious, however, the “priced out of Paris” syndrome has often taken over: Gentrification has morphed into “plutocratization,” notes Simon Kuper of The Financial Times, with “global cities turning into vast gated communities where the One Percent reproduces itself.”

Meanwhile, “the middle classes and small companies [are] falling victim to class-cleansing," Kuper asserts. "Global cities are becoming patrician ghettos” – with the middle class and the poor being driven ever-further out from the center-city in search of affordable housing, doomed to interminable commutes to sterile suburbs or brooding banlieues.

Most of the property price spiral in world-leading cities is surely attributable to the allure of cosmopolitan life in an age when urbanization is accelerating worldwide. But as two members of the World Bank Group’s unit on Financial Market Integrity (FMI) and the Stolen Asset Recovery (StAR) Initiative recently wrote in a StAR blog post, the melt-up of prime property prices often involves corrupt money and evasive property-registration practices.

Citing a recent New York Times investigative series that meticulously documented suspicious practices within Manhattan real-estate trends, FMI specialists Ivana Rossi and Laura Pop noted that the property-buyers “took several steps to hide their identity as the real owners of the properties. Some of these steps involved buying condos through trusts, limited liability companies or other entities that shielded their names. Such tactics made it very hard to identify the 'beneficial owner': to figure out who owned what, or who was the ultimate controller of a company (or other legal entities) since the names were not shown in the company records.”

Vast sums are flowing unchecked around the world as never before – whether motivated by corruption, tax avoidance or investment strategy, and enabled by an ever-more-borderless economy and a proliferation of ways to move and hide assets,” said the painstaking New York Times investigation, "Towers of Secrecy," by Louise Story and Stephanie Saul.

Probing “the workings of an opaque economy for global wealth,” the reporters excavated the substrata of this enduring scandal. “Lacking incentive or legal obligation to identify the sources of money, an entire chain of people involved in high-end real-estate sales – lawyers, accountants, title brokers, escrow agents, real-estate agents, condo boards and building workers – often operate with blinders on.”

In a moment of inadvertent self-revelation, a Manhattan real-estate broker confessed her look-the-other-way negligence “when vetting buyers: ‘They have to have the money. Other than that, that’s it. That’s all we need.’ ” A former executive of a property-development firm was equally blunt: “You pretty much go by financial capacity. Can they afford it? They sign the contract, they put their money down with no contingency, and they close. They have to show the money, and that is it. I don’t think you will find a single new developer where it’s different.”

No wonder that the upper reaches of the U.S. real-estate market are “more alluring for those abroad with assets they wish to keep anonymous,” the Times analysis found. “For all the concerns of law-enforcement officials that ‘shell companies’ can hide illicit gains, regulatory efforts to require more openness from these companies have failed.”      

The Times’ discoveries, asserted Rossi and Pop, thus underscore the important issues involved in asset disclosure and "beneficial ownership” rules. Many nations require that public officials fully disclose their financial holdings. Such transparency is one important safeguard against the plundering of public wealth by kleptocrats, corrupt clans or well-connected cronies in countries that are vulnerable to chronic larceny.

Yet some dishonest public officials exploit legal loopholes – or flout the law entirely: “As the StAR publication ‘Puppet Masters’ demonstrated, those that do engage in corrupt activities are likely to use entities such as companies, foundations and trusts to hide their ill-gotten wealth,” wrote Rossi and Pop. “These conclusions are also confirmed by a recent Transparency International UK report. It showed that 75 percent of UK properties in the UK, under criminal investigation since 2004 – as the suspected proceeds of corruption – made use of offshore corporate secrecy to hide the owner’s identities.”

Drawing on a new World Bank Group report (which they co-authored with Francesco Clementucci and Lina Sawaqed), “Using Asset Disclosure for Identifying Politically Exposed Persons,” Rossi and Pop argued that accurate and complete financial disclosure by officials in positions of public trust (known in the financial-integrity world as “Politically Exposed Persons”) are an essential safeguard against the diversion of assets. Such disclosures, by themselves, don’t provide a “magic bullet” solution to prevent corruption, yet they are a vital mechanism in building transparency and trust.

“Once there is an ongoing investigation, the information declared can be very helpful as evidence, both in what has been included as well as omitted,” wrote Rossi and Pop. “In many countries, intentionally leaving out information on a house or a bank account carries serious penalties. Furthermore, financial disclosures can help catch a dishonest public official whose lavish lifestyle – including real estate in a prized location – could not be supported by the resources, such as a public-sector salary, indicated in the declaration.” The key factor in ensuring integrity and combating corruption is thus the full disclosure of “beneficial ownership.”

Property prices in Global Cities are already being propelled upward by the gusher of money that is flooding, through fully legal channels, into the world’s most desirable and stable locations – thus threatening to put affordable housing, in many major cities, beyond the reach of all but the fortunate few. The last thing that already-unaffordable cities need is an unchecked flood of illicit billions and furtive real-estate transactions, which will only intensify the pressure that now threatens to create a renewed boom-and-bust cycle of unstable housing prices.

Urban advocates who are working to promote inclusive, sustainable, resilient and competitive cities will applaud the continued vigilance of asset-trackers and corruption-hunters – like the FMI and StAR units, through their work sans frontières
on the disclosure of beneficial ownership – whose efforts to halt illicit financial flows will provide an additional instrument to help ensure that cities will be as inclusive as possible in a relentlessly urbanizing age.

 

#TakeOn Corruption



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