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Restoring Ocean Health Can Spur Blue Growth in the Islands

Valerie Hickey's picture

Healthy oceans provide food and income for island nations, including through tourism. Valerie Hickey/World Bank

Running from event to event to partnership dialogue here in the beautiful island of Upolu, Samoa, while listening to delegates to the 3rd annual Small Island Developing States Conference, two things ring loud and true: Small islands need ocean-based economic growth to diversify their economies, attract investment, grow their GDP, increase jobs, and end pockets of extreme poverty. And strong ocean-based economies need healthy oceans.
Great ocean states know this. They know that they cannot afford the boom and bust cycle that emerges as natural capital is liquidated and the ocean emptied and trashed. But small islands cannot forsake growth in the name of conserving natural resources either. We can fish the oceans empty; but we mustn’t. The future of growth, jobs, resilience all depend on the sustainable management of the resources of the ocean. For small islands, blue growth is critical; done smartly, blue collapse is avoidable.

Farewell World Bank. You’re on the Right track. And you have a Big Job Ahead!

Andrew Steer's picture

Andrew Steer in Indonesia

Today is my final day at the World Bank.

When I first entered the doors of 1818 H Street three decades and seven Presidents ago, the big buzz in the cafeteria was Cost Benefit Analysis and Basic Needs. President McNamara had  demanded that every project document identify in detail how many of the poorest 25% it would directly and indirectly benefit, and how. The secret to rapid career progress was expertise in shadow pricing (which was appropriate in light of the massive distortions in goods, labor, currency and capital markets in most of our client countries).

But those shadow prices certainly didn’t include the value of environmental externalities. The entire cadre of environmental specialists for the whole institution consisted of one person. (It wasn’t me.)

Last week at the Rio+20 Conference I met up with an old friend, Emil Salim, who for many years was the longest serving Environment Minister in the World, and is still, well into his eighties,  chief environmental advisor to President Yudhoyono of Indonesia. We reminisced about a meeting he and I were at in 1982, when he asked the President of the World Bank for help in dealing with the acute environmental problems associated with Indonesia’s rapid growth. The polite reply he received was “The World Bank is a development agency, not an environment organization. We don’t do this kind of work.”