- Urban Development
- Social Development
- Public Sector and Governance
- Private Sector Development
- Migration and Remittances
- Labor and Social Protection
- Financial Sector
- Climate Change
- Agriculture and Rural Development
- East Asia and Pacific
- The World Region
- South Asia
- Sri Lanka
(Source: FRED Economic Data)
A recent World Bank Group feature story broke down country by country the potential regional consequences. And according to the Bank Group’s Global Economic Prospects report, the decline in oil prices will dampen growth prospects for oil-exporting countries.
There are various factors that can be used to assess the impact of falling oil prices on countries. One such factor is trade. Countries exporting mostly fuel products will lose export revenue as oil prices drop. The chart below shows the top 15 countries that exported fuel in 2012. You can visualize the data for other years and products using the World Integrated Trade Solution’s (WITS) product analysis visualization tool.
Luck has struck the region of East Africa: for a couple of years now, new announcements of natural resource discoveries are being made every few months. Mozambique has found some of the largest natural gas deposits in the world, while Tanzania, Uganda, and Kenya have also discovered gas and oil. Exploration is still ongoing, so even more discoveries could be forthcoming. Luck has definitely struck the region, but the main question is: how will the people in these countries benefit from this?
Do political institutions limit ‘rent-seeking’ (excessive profits free from competition) by political elites? Very much so, if they’re working properly, argue the four authors (Jørgen Juel Andersen, Niels Johannesen, David Dreyer Lassen, and Elena Paltseva) of ‘Petro Rents, Political Institutions, and Hidden Wealth: Evidence from Offshore Bank Accounts.’ Their paper examines unique public data—on bank deposits held in some of the world’s best-known tax havens—to establish whether oil, in particular, really is the ‘resource curse’ it is made out to be by a range of political scientists and development professionals. (Spoiler alert—the answer is ‘yes.’)
Cities are the engines of growth
People congregate in cities to share ideas, create businesses and build better lives. Urban centers have always been the hearts of economies, driving growth and creating jobs. But cities also strain under the burden, their transport and utility arteries often overloaded with the pressure of supporting rapid urbanization and development. While only around 30 percent of Kenyans have access to electricity, around 60 percent of all electricity is consumed in the country’s capital, Nairobi.
As a result, access to energy can be both costly and unreliable. In many fast-growing cities, the demand for energy outstrips both total supply and the capacity of the grid to deliver that energy to businesses and households. Blackouts are a typical result and they are costly and dangerous. Energy generation is also often very inefficient. As such, energy efficiency holds a big opportunity for reducing wasted energy resources, freeing up financial resources for private and public actors, and reducing the carbon footprints of the mentioned cities.
New carbon pricing systems are being developed in China, Chile and other countries to help reduce greenhouse gas emissions and encourage clean energy and sustainable development. This will mean new reporting requirements and regulations for an increasing number of national and multi-national companies.
To help corporate leaders prepare, we studied the experiences of three companies that are already operating within one or more carbon pricing systems and the steps they took to prepare for a world where greenhouse gas emissions have a price.
Our report released today by the Partnership for Market Readiness describes the impacts of a changing climate on business strategies, analyzes risks and opportunities as new climate policies are implemented, and distills lessons learned by Pacific Gas and Electric Company, Rio Tinto, and Royal Dutch Shell. The three companies represent a variety of energy-intense industries, including oil, gas, metals, mining and energy generation, transmission and distribution. Two operate in more than one jurisdiction with emissions trading.
Buildings now dot the skyline of Bonifacio Global City in Metro Manila, which hosts, among others, the offices of the World Bank and the International Finance Corporation. Who would have thought that this former military camp could be transformed into a bustling economic center in less than ten years? And, with the rise of commercial buildings and residential condominiums following the area’s fast-paced growth, we see a growing demand for electricity that causes stress on the environment and resources.
Table 1: Migrants and outward remittances in GCC countries, 2013
Why are petroleum prices dropping so fast anyway? Have they reached rock bottom yet? Should we be worried if they continue to fall? These are questions that probably every finance minister in either oil-rich or oil importing nations is trying to answer.