Overjoyed at the emergency rehabilitation of Bauerfield International Airport, Vanuatu’s gateway for travelers, Linda Kalpoi, the general manager of the Vauatu Tourism Office, was in buoyant spirits as she attended the May 6 ceremony announcing the repair’s completion.
Vanuatu yearned for good news. Still recovering from Cyclone Pam’s devastation in March 2015, it was hit by political turmoil after the unprecedented conviction of 14 members of Parliament in October 2015. Then, on January 22, 2016 – the same day Ni-Vanuatu citizens were casting ballots for a snap election – Air New Zealand suspended flights due to safety concerns over the runway condition. Qantas and Virgin Australia followed suit a week later. With only a few airlines still operating, the country lost a sizeable chunk of international tourists.
Airport planning in Vanuatu has long been fraught with differing opinions and priorities. Multiple governments with conflicting visions for developing international air transport, as well frequent changes to the staff and leadership of Airports Vanuatu Ltd (AVL), had left the runway in critical need of repair.
For the first time in history, the number of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030: good governance, gender equality, conflict and fragility, creating jobs, and, finally, preventing and adapting to climate change.
By 2030, more than half of the world’s poorest people will live in very poor countries that are fragile, affected by conflict, or experience high levels of violence
These are places where governments cannot adequately provide even basic services and security, where economic activity is paralyzed and where development is the most difficult. It is also where poverty is deepest. The problems these countries face don’t respect borders. About half of the world’s 20 million refugees are from poor countries. Many more are displaced within their own country.
- international development association
- food crisis
- Horn of Africa
- forced displacement
- Sustainable Communities
- Great Lakes
- shocks and vulnerabilities
- justice and development
- Jobs and Development
- jobs and poverty
- food security
- community-driven development
- Social Development
- The World Region
- Syrian Arab Republic
- Cote d'Ivoire
- Congo, Democratic Republic of
- Central African Republic
"When something such as the Panama Papers [disclosures on global tax avoidance] happens, we seem to be surprised. We should not be."
— Vito Tanzi, former leader of international tax policy at the International Monetary Fund; author of "Taxation in an Integrating World" (1995)
"Taxes are what we pay for civilized society," said the famed U.S. Supreme Court Justice Oliver Wendell Holmes Jr. So what does it say about society when it tolerates a skewed tax system that applauds tax avoidance, accommodates tax evasion, mocks the compliance of honest taxpayers and drags its feet on tax cooperation?
Those are some of the philosophical (and pointedly political) questions that are being debated this week at the World Bank, at a conference that has gathered some of the world's foremost authorities on international tax policy along with international advocates of fair and effective taxation.
If you can't make it in-person to the Bank's Preston Auditorium this week, many of the conference sessions are being livestreamed and the video will be archived at live.worldbank.org/winning-the-tax-wars
The livestreamed sessions include a pivotal speech by a determined tax-policy watchdog, former Sen. Carl Levin (D-Michigan) — the former chairman of the U.S. Senate's Permanent Subcommittee on Investigations — whose address on "Reducing Secrecy and Improving Tax Transparency" will be one of the highlights of the forum.
Coming just a week after a global conference in London on tax havens, tax shelters and abusive tax-dodging — a conference that highlighted some wealthy nations' lackadaisical approach to enforcing tax fairness — this week's Bank conference, "Winning the Tax Wars: Protecting Developing Countries from Global Tax Base Erosion" will propel the fair-taxation momentum generated by the recent Panama Papers disclosures. That leaked data exposed the rampant financial engineering (by high-net-worth individuals and multinational corporations) to avoid or evade taxes.
The concept of “Gross National Happiness” has been long discussed, debated, understated, overstated or seen as a gimmick. Now what is really Gross National Happiness? And how does the World Bank engagement fit in it? Let’s look into it together in an attempt to de-mystify the concept into what it really is, which is: a vision, broad policy directions trickling down to programs, a survey, a policy screening tool, and yes also, a foreign policy instrument and a brand.
The visionary statement, “Gross National Happiness is more important than Gross Domestic Product” was first enunciated by His Majesty the Fourth King of Bhutan in the 1970s. In turn, the Fifth King declared: “Today, GNH has come to mean so many things to so many people but to me it signifies simply - Development with Values. Thus for my nation today GNH is the bridge between the fundamental values of kindness, equality and humanity and the necessary pursuit of economic growth.” Article 9-2 of the constitution directs the state “to promote those conditions that will enable the pursuit of Gross National Happiness”.
GNH is translated into broad policy directions that provide the Government’s overarching, long-term strategies and five-year plans. The four pillars of GNH philosophy are: sustainable development; preservation and promotion of cultural values (traditional and cultural heritage paramount - its loss leads to a general weakening of society); conservation of the natural environment (Bhutan’s constitution: 60 percent forest coverage, green economy), establishment of good governance.
The word ‘conservative’ has lost all meaning these days, which is both sad and depressing. It is now used as short hand for all manner of romantic reactionaries (who want to go back to some Golden Age), bigots, racists, obscurantists, buffoons, and carnival barkers. Yet modern conservatism is a serious and intelligent approach to politics espoused by some of the finest and deepest minds in the history of political thought. I always say that when I studied political philosophy in graduate school I went into my studies as a political liberal, and while a came out more convinced of the justness and soundness of liberal constitutional democracy, the thinkers that had impressed me the most were mainly conservative political philosophers, particularly David Hume, Edmund Burke, Joseph de Maistre and James Madison. An encounter with these minds is a bracing experience. You do not survive it without your mental architecture being somewhat rearranged.
In what follows, I will attempt a restatement of modern (because it is also, like liberalism, a product of the Enlightenment) conservative political thought as I understand it, and try to indicate why I deeply respect this approach to social and political challenges even if I don’t always agree with it.
Women in a grain market in Kota, Rajasthan.
Strengthening competition policy is an under-acknowledged but potentially cost-effective way to boost the incomes of the poor. Greater competition between firms has the potential to boost growth through its impact on productivity, and it is increasingly acknowledged as a driver of welfare in the long term.
Despite that fact, competition reforms are notoriously difficult to implement. One of the reasons is opposition from interested groups that stand to lose out from these reforms in the short term – and a frequent lack of evidence or voice on the side of those who could gain from the direct effects of more competition.
What is the evidence on the direct impact of competition on the poorest in society, and what do we still need to learn?
A recent review of the evidence by the World Bank Group (WBG) seeks to answer these questions. The review follows two basic ideas. First: Competition policy has the greatest impact on the poor when it is applied to sectors in which the poor are most engaged as consumers, producers and employees. Second: Competition policy should have a progressive impact on welfare distribution in sectors where less-well-off households are more engaged relative to richer households.
Several sectors stand out as being particularly important here.
- Food products and non-alcoholic beverages are by far the most important sector for poor consumers in terms of their share of the consumption basket. They also make up a relatively higher proportion of the consumption basket of the least-well-off households. (See Figure 1, below. Source: WBG computations based on household survey data.)
- The retail sector is also important for consumers as the final segment of the food and beverages value chain. It is also a significant employer of the poor.
- Services such as transport and telecommunications play an important dynamic role in combatting poverty and reducing inequality. Better informed and more mobile consumers are more able to switch suppliers, thus moderating suppliers' market power. Services are also an important input for entrepreneurs.
- Other agri-inputs, such as fertilizer and seed, are key for the incomes of small agricultural producers.
I recently visited one of Bioversity International’s project sites in Begnas, where I met farming couple, Surya and Saraswati Adhikari. They proudly showed me around their biodiverse farm, pointing out some of the 150 plant species they grow and explaining that each one has a specific use. They showed me the vegetables, rice, gourds and legumes they grow to eat and sell; the trees that provide fruits, fodder and fuel, and the many herbs for medicinal and cultural purposes.
For any serious analysis of development in Africa, we must embrace the fact that there are distinct sovereign countries each with its own economic and development needs and likely policy choices. Perhaps at best we can only generalize about clusters of countries that share broadly similar governance, legal and development circumstances and what policies could apply to each cluster.
Let’s look at some of the data. National populations in sub-Saharan Africa range from that of Nigeria (158.4 million) to that of Seychelles (93,000). In 2014, Africa’s highest estimated GNI per capita that of Equatorial Guinea ($10,210), was 27 times larger than that of the Democratic Republic of the Congo, the lowest recorded in the region. In 2013, the estimated GDP per capita of the ten richest African countries was 22.6 times that of the poorest ten. Adult literacy rates in 2013 ranged from 93 percent in Equatorial Guinea to 34 percent in Chad.
Sitting in a large, rain pattered, tent in the grounds of Marlborough House in London last week, I had to admit to a mixture of frustration and admiration. Admirably hosted by the Commonwealth Secretariat, the conference was the civil society and business gathering prefacing the major Anti-Corruption Summit organised by UK Prime Minister, David Cameron.
First, the admiration. Both the outcomes of the Summit and the immense energy by civil society and other leaders in informing and influencing it, are impressive. Registries of beneficial ownership, fresh agreements on information sharing, new commitments requiring disclosure of property ownership, new signatories to the Open Government Partnership and open contracting Initiatives, the commitment from leaders of corruption affected countries and much else on display this week suggests real innovation, energy and optimism in advancing the anticorruption agenda.
The frustration stems from a concern that, while there is much that is new being agreed, one of the principal and most effective existing assets for checking corruption has barely featured in the discussion so far – and it is an asset which is increasingly imperilled.
It isn’t just people like myself who point to the critical role of an independent media. As I’ve argued in a new working paper, when any serious review of the evidence of what actually works in reducing corruption is undertaken, it is the presence of an independent media that features consistently. In contrast, only a few of the anti-corruption measures that have been supported by development agencies to date have been effective.
When the word “Amazonas” is mentioned, what do you think of? Mythical rainforests and winding rivers? The “lungs of the world”? A center of procurement excellence in the Brazilian federation?