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Financial Sector

Scaling up inclusive innovations: 10 lessons for donors

Johannes Linn's picture
Women in Jharkhand, India
Women in Jharkhand, India. © Natalia Agapitova/World Bank

Only a small fraction of women in rural India have a bank account, reinforcing existing gender inequity. Without access to financial services, women miss out on government benefits, like cash transfers. Alternative for India Development (AID) delivers financial products to women and other underprivileged populations through a unique business model. In partnership with the government and commercial banks, AID established more than 600 Common Service Centers that serve as one-stop delivery points to financial and government services. In just three years of operation, AID opened 200,000 deposit accounts, one-third of which belong to women. Thanks to these accounts, underprivileged populations was able to receive pensions, government subsidies and access free savings accounts.

AID is just one of a large and growing number of businesses that combine profits with impressive development results. These businesses are known as social enterprises, and the innovations they develop play a critical role in providing life-improving goods, services, and employment to hundreds of millions of poor people. Social enterprises can be distinguished from other public and private organizations by the fact that they pursue social objectives through commercially viable business models and are independent from the government.
In his recent blog, World Bank Group President Jim Kim urged the development community to partner with social enterprises to achieve the Sustainable Development Goals. This will require a different approach to scaling results of successful social enterprises, their inclusive innovations, and business models. In a recent Brookings Working Paper we reviewed the literature and experience with scaling up social enterprise innovations and summarized lessons for how scaling up can be best managed. Here we briefly explore the main implications for external donors.

Building more affordable and disaster-resilient housing in Latin America and the Caribbean: a few policy ideas

Julian Palma's picture
Photo by C64-92 via Flicker Creative Commons

Between 2010 and 2017, Chile was struck by 10 major natural hazard events. These disasters affected as many as 340,583 houses and cost $3.6 billion in reconstruction (Ministry of Housing and Urbanism of Chile). Post-disaster assessments point to housing as one of the most affected sectors in the wake of climate-related and other natural hazards—most commonly floods, earthquakes, landslides, and fires. In a 22-year period between 1990 and 2011, minimum losses in the housing sector for 16 countries in Latin America and the Caribbean (LAC) amounted to $53 billion.

In the LAC region, one quarter of the population lives in slums, characterized by the prevalence of substandard housing quality as well as incremental and self-construction of homes. Families living in these informal settlements are at greatest risk to natural hazard impacts. Programs providing new housing do not always reach families in the lowest quintiles; and without access to affordable and well-located housing alternatives, households have no other option than to build informally, and in areas most prone to natural disasters.

Money for her or for him? Unpacking the impact of capital infusions for female enterprises

Markus Goldstein's picture
In a 2009 paper, David McKenzie and coauthors Chris Woodruff and Suresh de Mel find that giving cash grants to male entrepreneurs in Sri Lanka has a positive and significant return, while giving the same to women did not.   David followed this up with work with coauthors in Ghana that compared in-kind and cash grants for women and men.  Again, better returns for men (with in-kind working for some

Energy prices rose almost 3 percent in April: Pink Sheet

John Baffes's picture

Energy commodity prices rose 2.7 percent in April as the crude oil average rose 2.5 percent, according to the World Bank’s Pink Sheet.

Non-energy prices declined 2.4 percent as agriculture fell 1.4 percent, food and beverages prices dipped by 2.1 percent and 1 percent, respectively, and raw materials rose 0.3 percent. Fertilizer prices declined 6 percent.

Metals and minerals prices slid 4.3 percent, led by an almost 20 percent tumble in iron ore. Precious metals eased 2.7 percent.

The Pink Sheet is a monthly report that monitors commodity price movements.

Developing local capital markets to fund domestic long-term financing needs

Ceyla Pazarbasioglu's picture



Finance fuels economic growth and development. Yet, it is also clear that traditional funding sources – public finances, development assistance or banks loans – will not be sufficient to finance the Sustainable Development Goals.

Both developed and developing countries are turning to capital markets to find new sources of funding and to attract private sector financing, investment and expertise.

A key priority for the international development community is to unlock adequate private sector financing so that emerging market countries can meet their financing needs to fund strategic objectives, such as improving infrastructure.

We estimate that the amount of infrastructure financing covered by the private sector could be more than doubled, if countries harness the full potential of local capital markets.

At the World Bank Group, we are committed to marshal our expertise to increase the use of capital markets for investment financing. Helping countries develop government debt markets is vital to our goals of eliminating extreme poverty and boosting shared prosperity.

Asia’s financial connections with the rest of the world: changing patterns

Ruth Llovet Montanes's picture

As economies in the East Asia and Pacific (EAP) region have developed, they have also become important in international financial transactions, both as a source and destination of cross-border bank lending, foreign direct investments (FDI), and portfolio investments. But, as we document in a new paper (Didier et al., 2017), the composition of those financial connections has been changing in recent years in at least two fronts: (i) the partners with which EAP countries interact and (ii) the type of financial transactions conducted.

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?


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