Almost two years ago Program for Results (PforR), the newest financing instrument for World Bank operations, was introduced to great expectations within the Bank and the international development community.
Construction of the Quito Metro
Like seismic waves rippling outward after a tectonic shift, reverberations are roiling the economic-policy landscape after the U.S. launch of the groundbreaking new analysis by Thomas Piketty, the scholar from the Paris School of Economics whose landmark tome – “Capital in the Twenty-First Century” – has newly jolted the economics profession.
Any Washingtonian or World Bank Group staffer who somehow missed the news of Piketty’s celebrated series of speeches and seminars last week – in Washington, New York and Boston – received an unmistakable signal this week about what an important intellectual breakthrough Piketty has achieved. President Jim Yong Kim on Tuesday cited Piketty while putting the issue of economic inequality at the top of his list of priorities during his review of the Spring Meetings of the Bank and the International Monetary Fund. Noting that he was already about halfway through reading Piketty’s “Capital,” President Kim sent a clear message that the skewed global distribution of wealth, as analyzed by Piketty and emphasized by many officials at the Bank and Fund's semiannual conference, should be top-of-mind for policy-watchers at the Bank and beyond – indeed, at every institution that hopes to promote shared prosperity.
Piketty’s scholarship is now receiving widespread acclaim as a landmark in economic analysis, and is being recognized both for its “exhaustive fact-based research” and its sweeping historical perspective. More of a patient dissection of hard data than a political roadmap, Piketty’s book has quickly become the subject of multiple praiseworthy reviews, notably in the New York Times and the Financial Times. One usually level-headed Bloomberg View analyst, recoiling from the “rapturous reception” accorded to the book, may have gone slightly overboard this week in asserting that Piketty's insights had been greeted by American liberals with “erotic intensity.”
Predictably, Piketty's book has also quickly become the target – “Piketty Revives [Karl] Marx,” blared a Wall Street Journal headline; “Marx Rises Again,” warned the New York Times’ lonely conservative scold – of the whack-a-mole ideological purists in laissez-faire Op-Ed columns, who forever seem tempted to equate modern-day liberalism with long-gone Leninism. Eager to publish denunciations of any idea, however modest, that might justify (heaven forfend) tax increases on stratospheric income-earners and the top-fraction-of-the-One Percent, the free-market fundamentalists on the Wall Street Journal’s editorial board – unabashed cheerleaders for plutocracy – have opened up one of their trademark barrages via their Op-Ed columns (“This book is less a work of economic analysis than a bizarre ideological screed”; “The professor ought to read ‘Animal Farm’ and ‘Darkness at Noon’ ”). The Journal's jihad clearly aims to demean or discredit anyone who might flirt with such Piketty-style notions as restoring greater progressivity to the tax code. (Egad: Progressive taxation? Next stop: Bolshevism.)
The 2004 Indian Ocean Tsunami – Triggering engagement in Disaster Risk Management (DRM)
In 2004 December, Sri Lanka faced the worst disaster in its history - the Indian Ocean Tsunami. More than 35,000 people lost their lives and around 5,000 people went missing. At the time of the Tsunami, Sri Lanka did not have a proper legal and institutional mechanism to manage disaster risk. In the aftermath of the catastrophe, the Government made very serious efforts to establish a mechanism to avoid dramatic loss of life in future disaster events.
Subsequently, the Disaster Management Act was passed and the National Council for Disaster Management, chaired by the President, was established. A Ministry of Disaster Management (MoDM) was created and charged with the disaster risk management (DRM) portfolio and the Disaster Management Centre (DMC) was established July 2005 to implement DRM programs across the country.
With these mechanisms in place, the Government began strengthening disaster preparedness, especially for tsunamis. Three pieces were put in place including: i) development of a tsunami early warning system; ii) implementation of awareness raising programs, from the grassroots to national levels; and, iii) regular evacuation drills were conducted in all coastal villages. The system has proven successful as the DMC issued Tsunami evacuation warnings in September 2007 and April 2014, which resulted in the safe evacuation of coastal communities.
These are some of the views and reports relevant to our readers that caught our attention this week.
The Transformative Impact of Data and Communication on Governance: Part 3
How do digital technologies affect governance in areas of limited statehood – places and circumstances characterized by the absence of state provisioning of public goods and the enforcement of binding rules with a monopoly of legitimate force? In the first post in this series I introduced the limited statehood concept and then described the tremendous growth in mobile telephony, GIS, and other technologies in the developing world. In the second post I offered examples of the use of ICT in initiatives intended to fill at least some of the governance vacuum created by limited statehood. With mobile phones, for example, farmers are informed of market conditions, have access to liquidity through M-Pesa and similar mobile money platforms.
Cashing in: why mobile banking is good for people and profit
Using digital finance to tackle development problems can improves lives, and offer innovative companies handsome rewards. Whether it is lack of access to water, energy or education, development professionals are well versed in the plethora of challenges facing billions of people. The traditional approach to solving these problems has been to think big – in terms of the millennium development goals, government aid programmes, or huge fundraising campaigns. But there are dozens of startups and larger companies with innovative ideas who are approaching these challenges in new ways using digital finance.
The EU-Turkey customs union (CU) has been a key catalyst in the economic transformation of Turkey over the past two decades and an effective mechanism for deeper integration between the two parties, according to a new World Bank evaluation of the CU.
While its supporters and critics may continue to debate in the political arena, this much is now clear: the CU has brought enormous benefits to Turkey and has done more to facilitate trade than a free trade agreement (FTA) would have. But more can still be done to both modernize the agreement and deepen trade integration between the parties.
It’s the first class of an adult literacy program for young Moroccan women. Ghita comes to the front of the class, picks up a piece of chalk and carefully draws a line on the blackboard. It is the letter alif, the first letter of the Arabic alphabet, one of the simplest to recognize and write: a single downward stroke.
It is close to six months since the largest open government jamboree to date – the Open Government Partnership (OGP) Annual Summit in London last autumn. Since then the membership of the OGP continues to grow – up to 63 countries. And now a new set of regional meetings are scheduled for May through August. Open government junkies can boost their air miles accounts with a hectic world tour from Indonesia to Ireland to Costa Rica. Such gatherings should offer useful space for reflection. So what is happening on the ground?