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Financial Sector

Energy, metals commodity prices seen strengthening

John Baffes's picture

Prices for most industrial commodities, notably energy and metals, are projected to rise in 2017 while agricultural prices are expected to remain stable, the World Bank says in its April 2017 Commodity Markets Outlook.

Closely watched crude oil prices are forecast to rise to an average of $55 per barrel (bbl) over 2017 from $43/bbl in 2016, climbing to $60/bbl next year. The forecast is unchanged since October and reflects the balancing effects of production cuts agreed by the Organization of Petroleum Exporting Countries (OPEC) and other producers on one side and a faster-than-expected rebound in the U.S. shale oil industry on the other. World oil demand is growing strongly, although at a slower pace than the 2015 spike triggered by lower oil prices.

Toward water and sanitation for all: Featuring Matt Damon, co-founder of Water.org

Brittany Scalise's picture
Matt Damon urges ministers to move aggressively toward water and sanitation for all.
Watch his full remarks: http://live.worldbank.org/water-and-sanitation



Last week, on April 20th, Matt Damon, co-founder of Water.org, addressed ministers of finance, water, and sanitation from across the world at the Sanitation and Water for All (SWA) Finance Ministers’ High Level Meeting at the 2017 World Bank-IMF Spring Meetings. The meeting focused on finding ways to fill the enormous financing gap via innovative financial solutions. Mr. Damon urged ministers to consider the full breadth of financing options to achieve the goal of providing safe, affordable, and sustainable water and sanitation for all.

Can government subsidies spur science-industry collaboration and innovation?

Miriam Bruhn's picture

Efforts to foster collaboration between science and industry have long been a part of innovation policy in many countries. Firms stand to benefit from accessing the specialized infrastructure and expertise available in universities. Researchers gain access to practical problems that can provide greater relevance for their research, and to industrial capabilities for manufacture and assistance in commercializing their ideas to take them to market. Yet, there are barriers that inhibit collaboration, including financing constraints, information asymmetries, and transaction costs in negotiating collaboration agreements.

Nascent stock exchanges — tales of success and failure

Thorsten Beck's picture

Public equity markets are seen as a critical component of a developed financial system, with such markets going back to the 18th and 19th century in many advanced economies.  There have been therefore intensive efforts of donors and local government to establish such markets across the developing world, in the 1980s across Sub-Saharan Africa and in the 1990s across many transition economies.  These efforts, however, have been met with mixed success, illustrated by the statement by a local market practitioner that “an entire year’s worth of trading in the frontier African stock markets is done before lunch on the New York Stock Exchange.”1 On the other extreme are markets such as China, which have developed rapidly over the past two decades, with many listed companies, high trade volume and a broad investor basis.  What explains why some countries have well-developed public equity markets while others have shallow and illiquid markets?

Progress toward Universal Financial Access

Stephen Kehoe's picture


Photo Credit: Women’s World Banking 

Two years ago, Visa announced a commitment, alongside other organizations, to provide financial access to 500 million unbanked adults as part of the World Bank Group’s goal of achieving Universal Financial Access (UFA) by 2020.  It’s widely reported that 2 billion people worldwide (38% of all adults) don’t have access to formal financial services—no bank or savings account, no formal way to store or send money, no basic financial tools to manage life or business or help to generate income.

There was no doubt in our minds that Visa had a role to play, given the reach of our payments network and the fact that facilitating the issuance of digital payment accounts is our core business.  What was not as clear was how much our efforts would need to factor in changes to strategy in order to ensure the kind of accounts people are receiving hit their mark in terms of usage and provided a genuine pathway to full financial inclusion. 

The 2017 Atlas of Sustainable Development Goals: a new visual guide to data and development

World Bank Data Team's picture

The World Bank is pleased to release the 2017 Atlas of Sustainable Development Goals. With over 150 maps and data visualizations, the new publication charts the progress societies are making towards the 17 SDGs.

The Atlas is part of the World Development Indicators (WDI) family of products that offer high-quality, cross-country comparable statistics about development and people’s lives around the globe. You can:

The 17 Sustainable Development Goals and their associated 169 targets are ambitious. They will be challenging to implement, and challenging to measure. The Atlas offers the perspective of experts in the World Bank on each of the SDGs.

Trends, comparisons + country-level analysis for 17 SDGs

For example, the interactive treemap below illustrates how the number and distribution of people living in extreme poverty has changed between 1990 and 2013. The reduction in the number of poor in East Asia and Pacific is dramatic, and despite the decline in the Sub-Saharan Africa’s extreme poverty rate to 41 percent in 2013, the region’s population growth means that 389 million people lived on less than $1.90/day in 2013 - 113 million more than in 1990

Note: the light shaded areas in the treemap above represent the largest number of people living in extreme poverty in that country, in a single year, over the period 1990-2013.

Newly published data, methods and approaches for measuring development

Can 'fintech' innovations impact financial inclusion in developing countries?

Margaret Miller's picture
A digital transaction in the Democratic Republic of Congo. Such transactions are made possible in part by FINCA. FINCA's strategy in Africa is to focus operations on underserved markets and groups, namely rural areas and women. Photo: Anna Koblanck/IFC


Financial technology, “fintech,” has been reshaping the financial services industry with the level and speed of innovation that’s simply fascinating.

A month ago, my colleagues and I attended the 5th Annual Lendit USA conference to check out about the latest innovations and thinking in this field and see how we can apply it to our work.

There is growing interest in trying to figure out this new industry and take advantage of the opportunity. Now billed as the largest Fintech industry meeting in the world, Lendit organizers started this event four years ago with about 200 participants. This year’s event attracted more than 5,000 people.

We work on various areas of financial inclusion and are interested in new ways that can help expand access to financial services to hard-to-reach populations and small businesses in developing countries.

We returned with a new appreciation for the magnitude of change that is coming, and how quickly it could occur – and already is in some instances.  Some innovations will help developing countries leapfrog into this new tech era. This could have a significant – and potentially highly positive - impact on financial inclusion, and fundamentally change the nature of financial infrastructure. 

However, these opportunities come with potential risks, such as those related to (un)fair lending practices related to unmonitored use and analysis of big data or increased systemic vulnerabilities due to threats to cybersecurity. 
 

Banking on Myanmar’s financial sector: The road ahead

Nagavalli Annamalai's picture

Myanmar in 2012, when we started our financial sector engagement, and Myanmar today seem like two different worlds. Back then, sim cards cost close to US$500, visitors carried wads of crisp, new dollar bills, Yangon streets were filled with old models of Toyotas and Nissans, while the capital Nay Pyi Taw had only rickety hotels. Now streets lined with old shops have given way to $1 sim cards, brand new car models, international hotel chains and gleaming new shopping malls. ATMs and “We accept Visa and Master Card” signs are now nearly ubiquitous in the country’s cities.

Urban jungles in jeopardy

Ivo Germann's picture
Why the world’s cities are at risk – and what we can do to make them more resilient



We may not know exactly what the world will look like in two decades, but we know this: it is going to be a world of cities.
 
The global population is becoming increasingly urban, and at an astonishing rate. Each year, urban areas are growing by an average of more than 75 million people – more than the population of the world’s 85 smallest countries combined.
 
For the world’s economy, this is great news, since cities produce 80 percent of global GDP, despite currently being home to only 55 percent of the population. But it is a problem for urban infrastructure, which can’t keep up with such fast-paced growth. As a result, cities, already vulnerable, are becoming increasingly susceptible to natural disasters – from flooding and landslides that can decimate informal housing settlements, to earthquakes that can devastate power grids and water systems.
 
These risks could be disastrous for the urban poor, 881 million of whom currently live in slums (up 28 percent since 2000). And climate change – which is increasing the intensity and frequency of natural disasters – will only exacerbate the problem. For this reason, multilateral and government institutions now see resilience and climate adaptation as integral pillars of development.
 
The Swiss State Secretariat for Economic Affairs (SECO), for example, considers low-emission and climate-resilient economies to be key to global competitiveness. A recent report by the World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR) found that climate change may force up to 77 million urban residents into poverty by 2030 – unless we take action to improve the resilience of cities around the world.

The Citizens’ Charter—a Commitment toward Service Delivery across Afghanistan

Ahmad Shaheer Shahriar's picture
Citizens charter launch in presidential palace
Inaguration of the Citizens’ Charter Afghanistan Project (CCAP) on 25th September, 2016 was attented by the President, the Chief Executive of Afghanistan, cabinet ministers, and over 400 representatives from the donor community, international organizations, and Community Development Councils (CDCs) from all 34 provinces of the country. Photo Credit: Rumi Consultancy / World Bank


Will rural communities in Afghanistan be deprived of development services upon the completion of the National Solidarity Programme (NSP) in the Ministry of Rural Rehabilitation and Development (MRRD)?
 
What will happen to the Community Development Councils (CDCs) established in rural communities to execute people’s development decisions and priorities?
 
Will our country continue to witness reconstruction of civic infrastructure?
 
These were some of the questions that troubled thousands of villagers as the NSP neared its formal closure date - NSP had delivered development services in every province of Afghanistan for 14 years.
 
To address these questions and allay their concerns, the Government of the Islamic Republic of Afghanistan formally launched the Citizens’ Charter Program on September 25, 2016 to sustain the uninterrupted development and reconstruction in Afghanistan.


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