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Record investment in transport boosts overall private participation in infrastructure in 2014

Henry Kasper's picture

Imagine record commitments in transport that are 26% higher than the next best year since the inception of the Private Participation in Infrastructure (PPI) Database in 1990. That’s exactly what took place in 2014—massive private participation in transport that culminated in the fourth highest level of global investment (transport, energy, and water) ever recorded. Indeed, the PPI Database’s 2014 Global Update released in June, 2015, shows that total investment in transport hit a record high of US$36.5 billion, driven by a handful of outsized deals in
Latin America and, more specifically, Brazil—including a mega airport project totaling US$10 billion. Meanwhile, energy fell 19 percent year-over-year due to fewer commitments in five out of six regions, while water grew 14 percent, driven by key deals in Brazil, Mexico, and Peru. In a separate report, Telecom showed modest year-over-year declines, extending a trend of fewer projects and lower investment over the past five years.  

Is India’s growth oil-fueled?

Frederico Gil Sander's picture
Traffic jam in a street in Old Delhi
Traffic jam in a street in Old Delhi. Credit: Yann Doignon / World Bank

As an intrinsically-optimistic Brazilian, my new assignment following India’s economy suits me well: India is one of the few bright spots in a somber global economy and is set to become the fastest growing large economy in the world. Our recently-released India Development Update projects India’s GDP will grow by 7.5 percent in the fiscal year ending March 2016, and by 7.8 and 7.9 percent in the following two years. Not quite the double-digit growth the Government would like to see, and to be sure there are significant uncertainties about the outlook, but an enviable state of affairs nonetheless.

What is driving the favorable momentum?

The drastic decline in global crude oil prices since June 2014 clearly played an important role. As a net oil importer, the halving of oil prices has been a bonanza for India. External vulnerabilities were greatly reduced as the lower oil import bill shrank the current account deficit despite anemic exports. Lower oil prices also helped contain prices of global commodities, and along with the RBI’s prudent monetary policy led to a significant decline in inflation. This in turn boosted real incomes in urban areas and allowed RBI to lower policy rates by a cumulative 125 basis points in the first nine months of 2015.

Among wealthy nations, Nordic countries are leading the pack on sustainable development

Craig James Willy's picture
Source: Bertelsmann Stiftung

Sustainable development was once thought of as primarily a concern for the poorer, so-called “developing” countries. Today, with industrial civilization spreading across the entire world, devouring ever more resources and emitting more greenhouse gases into the atmosphere, economists believe wealthy countries too are in a sense still “developing” ones. Life on Earth will not survive in its current form if lifestyle of the northern countries remains as it is and extends across the planet.

That is the spirit behind the Bertelsmann Foundation’s latest report on wealthy country’s progress on fulfilling Sustainable Development Goals. Recent developments have often not been pretty. Many countries have stuck to energy-intensive economic models, and inequality has been rising almost everywhere, with economic elites getting an ever-larger part of the pie, while working and middle classes decline.

Let's come clean about dirty cooking

Anita Marangoly George's picture
Photo by Rodney Rascona / Global Alliance for Clean Cookstoves

Really – let’s.

It’s a fact: Indoor air pollution from cooking with solid fuels including wood, charcoal, coal, animal dung, and crop waste in open fires and traditional stoves is the fourth leading cause of death in the world, after heart and lung disease and respiratory infection.

Nearly 2.9 billion people, a majority of whom are women, still cook with dirty, smoke and soot-producing cookstoves and solid fuels. That’s more people using these dangerous appliances than the entire populations of India and China put together.

This has to change. And change is happening as I heard from the various discussions that took place in Accra, Ghana at the Clean Cooking Forum 2015 last week.  Hearing the Minister of Petroleum of Ghana and the Deputy Minister for Gender and Development, I realize that the ambition to provide clean cookstoves and cleaner fuels to the households who need it most is definitely there. But transforming ambition into reality is a challenge. This is true not just in Ghana but in many other parts of the world.    

I have been thinking a lot about this lately, especially as we come up on the climate change conference (COP21) in Paris, where world leaders will gather to reach a universal agreement on mitigating the effects of climate change. Adopting clean energy sources is key to reach that goal. To that end, the UN’s sustainable energy goal (SDG7) that aims to ensure access to affordable, reliable, sustainable and modern energy for all also aims for bringing clean cooking solutions to the 2.9 billion who do not have it today.

Lifting of Iran sanctions could have major impact on energy markets

John Baffes's picture
With a lifting of sanctions in 2016, Iran could play a key role in energy markets but boosting capacity will require foreign investment, according to the World Bank’s latest edition of Commodity Markets Outlook.

Boosting clean tech to power a low-carbon future

Zhihong Zhang's picture
A thermo-solar power plant in Morocco. Photo by Dana Smillie / World Bank.

Global warming can be limited by reducing or avoiding greenhouse gases stemming from human activities - particularly in the energy, industry, transport, and building sectorswhich together account for over 75% of global emissions. So low carbon technologies are key to achieving mitigation while creating new economic opportunities.
Since 2008, the $5.3 billion Clean Technology Fund (CTF) - one of the $8.1 billion Climate Investment Funds' (CIF) four funding windows—has been partnering with multilateral development banks (MDBs), including the World Bank and the IFC, to provide concessional financing to large-scale country-led projects and programs in renewable energy, energy efficiency and sustainable transport.
As the world gets ready for the climate negotiations in Paris later this month, the governing bodies of CTF met in Washington D..C. MDBs, donor countries, recipient countries and civil society organizations gathered to, among other things, share the results and lessons of how the CTF is reducing greenhouse gas emissions, creating energy savings, and improving the lives of some of the world’s poorest people by creating jobs and reducing pollution.
The CTF report card is based on the results from operational projects and programs over a one year period. In total, the CTF has achieved 20 mtCO2e in emission reductionsthat’s the equivalent to taking four and a half million cars off the road or shutting down six coal fired power plants.

A better way to build -- promoting sustainable infrastructure

Robert Montgomery's picture

As countries prepare to meet at the G20 summit in Turkey next week, global growth and infrastructure needs will be at the top of decision makers’ concerns. And rightly so: Infrastructure – roads, bridges, ports, power plants, water supply – drive economic growth in many countries by facilitating manufacturing, services and trade. But it’s not just a matter of building more. To achieve good development on a planet stressed by climate change and diminishing natural resources, infrastructure needs to be sustainable.

Energy access is a social justice issue

Jim Yong Kim's picture
Dignity-DTRT, a garment factory in Accra, Ghana, employs 1,500 workers, 75% of them low-income women. © Dominic Chavez/World Bank.
Dignity-DTRT, a garment factory in Accra, Ghana, employs 1,500 workers, 75% of them low-income women.
© Dominic Chavez/World Bank. More photos from Ghana.

ACCRA, Ghana — Energy rationing is popularly nicknamed “dum-sor,” or “on-off” in Ghana, an expression that people use to talk about the country’s frequent power outages. This is a challenge faced by countries across the region — sub-Saharan Africa loses 2.1% of gross domestic product from blackouts alone — and across the developing world.

While the lack of a consistent electricity supply is one of Ghana’s largest economic challenges, the truth is that the country has made progress in increasing access to energy. Today, about 75% of the country is connected to the national electricity grid. This is significantly higher than the regional average: only one in three people in sub-Saharan Africa has access to electricity.

How innovation is disrupting the energy industry – and what it means for the Middle East and North Africa

Reem Muhsin Yusuf's picture
Traffic Jam in Casablanca, Morocco - World Bank l Arne Hoel

We are currently witnessing shifts in major industries as a result of rapid technological innovation and industry interconnectivity. The amalgamation between transport and software, for example, has resulted in Google Maps, Waze and Uber, apps that we all interact with to move from point A to B.

Three innovations to drive infrastructure development

Teo Eng Cheong's picture
container ship in Panama canal

A few months ago, I had a chance to visit the Panama Canal, which celebrated its 100th anniversary last year. It is truly a mega-structure that is the largest infrastructure project of its time.
When I saw it, what struck me the most was - “How could this be possible”? One hundred years ago, Panama was a country that was just formed and capital markets were not very well-developed. And technology was obviously not as advanced as it is today.
Fast forward 100 years, in the world today, Asia has a huge demand for infrastructure. In Singapore, we know of Hyflux, which has one of the largest desalination plants in Singapore. Sembcorp Utilities has a power plant project in Bangladesh recently and PSA has a port in Guangxi China. These are just some examples of Singapore companies who have gone into infrastructure development. Yet, not enough projects have been implemented, especially in Asia.