One in eight people worldwide still go to bed hungry every night, and the increased severity of natural disasters like droughts only exacerbates this situation. Humanitarian agencies and development practitioners are increasingly focused on helping the most vulnerable recover from the effect of these shocks by boosting their resilience.
The World Region
Public credit guarantees have become a popular instrument to expand lending to small and medium enterprises (SMEs). More than 30 percent of credit guarantee schemes around the world have some form of state ownership. Public credit guarantee schemes are particularly important in developing countries, where they are the main type of guarantee scheme.
Robert Allen’s recent AER paper on “Absolute Poverty: When Necessity Displaces Desire” is a fascinating read, on many levels. The paper uses linear programming (LP) to compute (four variants of) least-cost diets for twenty countries, using prices from the International Comparisons Project (ICP) microdata. To the resulting least-cost food budgets, estimates of non-food costs covering housing, fuel, lighting, clothing and soap are added, generating “basic need poverty lines” (BNPL) for each country.
Populism – the idea that a particular social group speaks for the nation as a whole, and should be first in the line for social benefits – threatens the core values of the post-World War order. It also challenges the World Bank’s own approach to development policy. As the world prepares for the 50th anniversary of the signing of the Universal Declaration of Human Rights with a year-long commemoration, culminating on December 10, 2018, we at the World Bank can use the occasion to reflect on our commitments and uphold them courageously.
Online pundits, hurried journalists and policymakers love precision. They crave numbers. Preferably exact numbers; ranges suggest uncertainty and make them anxious. As a result, they will love the World Poverty Clock (WPC), a new website that claims to track progress towards ending global poverty in real time (see also this blog and Financial Times article). The website tells you that 632,470,507 people are currently living in extreme poverty - or were, on December 6 at 10:00am… Even more amazingly, the site claims to forecast poverty at any point in the future until 2030, the deadline for the UN’s Sustainable Development Goals. By scrolling along the elegant timeline on the bottom of the WPC screen you will learn, for example, that in 2028, 459,309,506 people will be living in extreme poverty!
Energy commodity prices surged 8 percent in November—the fifth consecutive monthly gain—led by a 9 percent increase in oil prices, the World Bank’s Pink Sheet reported.
Agriculture prices made marginal gains as a 1 percent decline in beverages was balanced by a 1 percent increase in food prices, notably natural rubber (down 12 percent) and cotton (off 2 percent). Fertilizer prices declined 3 percent, led by a 6 percent drop in Urea.
Metals and mineral prices were unchanged. Gains in nickel and iron ore were balanced by declines in lead and aluminum. Precious metals prices rose marginally.
The pink sheet is a monthly report that monitors commodity price movements.
What would bring together the China trade shock, road blocks in the West Bank, and the Belt and Road initiative? The 6th Annual IMF-World Bank-WTO Trade Research Conference, at which staff of the three institutions presented the results of twelve research projects.
The Conference is over, but the website lives on, and here you can find preliminary versions of papers. To whet your appetite, here are three examples of research that use creative methodologies and raise provocative questions.
As behavioral scientists to the World Bank, we at the Mind, Behavior, and Development (eMBeD) Unit tend to see behavioral science everywhere. With the holiday season fast approaching, it’s no surprise that we can apply behavioral science to any number of seasonally appropriate channels, including charitable giving. Reciprocity, it turns out, affects us at every age, and can be a good lesson for charitable giving campaigns.
Agriculture prices edged lower in the month, as raw materials declined, notably natural rubber, which tumbled 12 percent. Food and beverage prices changed little. Fertilizer prices climbed over 5 percent, helped by a 12 percent jump in urea.