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Emerging market sovereign bonds: Does it cost more to issue a bond under the English law?

Dilip Ratha's picture

It seems it does. During 2008-2012, post-crisis, launching under English law increased spreads by more than a third on average. In other words, by choosing the UK law, a nation rated B+ (for example, Ecuador, Ghana, Greece, Pakistan and Zambia) apparently paid 7.7% interest rate per annum instead of 6 percent, and a nation rated BB (for example, Bangladesh, Nigeria, Serbia or Vietnam) paid nearly 5.7% instead of 4.5% (figure 1). Such an increase in spread is equivalent to a rating downgrade of 3 notches or more.

When firefighting is not enough: The humanitarian community needs better risk management

Rasmus Heltberg's picture

A new report by the United Nations Office for Coordination of Humanitarian Affairs (OCHA) Saving Lives Today and Tomorrow is a wakeup call to the humanitarian community to improve risk management. The report builds on and has several parallels to the World Development Report (WDR) 2014 on Risk and Opportunity: Managing Risk for Development, and I was therefore invited to speak at its UN launch in New York last week.

New Working Paper by Aart Kraay and David McKenzie: Do poverty traps exist?

LTD Editors's picture

This paper reviews the empirical evidence on the existence of poverty traps, understood as self-reinforcing mechanisms through which poor individuals or countries remain poor. Poverty traps, understood as self-reinforcing mechanisms through which poor individuals or countries remain poor, have captured the interest of many development policy makers, because poverty traps provide a theoretically coherent explanation for persistent poverty. They also suggest that temporary policy interventions may have long-term effects on poverty. However, a review of the reduced-form empirical evidence suggests that truly stagnant incomes of the sort predicted by standard models of poverty traps are in fact quite rare. Read the entire paper here.

Aspiring to Understand Aspirations

Scott Abrahams's picture

The following post is a part of a series that discusses 'mind and culture,' the theme of the World Bank’s upcoming World Development Report 2015.

In Ethiopia, 3% of students will go to college.* But how many would you guess say that they want to?

The answer is 75%. That is how many of the 14 to 15 year-olds surveyed by the Young Lives team out of Oxford said they would like to complete a university degree. Of those kids, 9 in 10 expect to get there.

Friday Roundup: Malthusian worries, USAID global development lab, Hillary on ending poverty, Africa Impact Evaluation and a sharing prosperity event

LTD Editors's picture

Eduardo Porter's Apr 1 column 'Old Forecast of Famine May Yet Come True,' touches on Malthus, famine and the sweeping impacts of climate change highlighted in the latest IPCC report.

Virginia Gewin of Nature magazine carries a story on USAID's new Global Development Lab, a $100 million effort that will fund research into technological solutions for targeted problems related to food security and nutrition, maternal and child survival, energy access and sustainable water solutions.

Social Progress Index 2014 launched today

Merrell Tuck-Primdahl's picture

In April 2013, the Social Progress Imperative launched a research product, the Social Progress Index, during a forum at the University of Oxford. Now it's year two and they've grabbed headlines with the results of the 2014 index, finding New Zealand is on top and Chad at the bottom of the overall rankings. What also jumps out are big differences in social progress for countries with similar incomes.

According to Index, economic success alone doesn't explain social progress. The USA (16th), for example, ranks lower than New Zealand, even though the Kiwi nation's GDP is lower. The same pattern is seen for countries at all levels: Ghana (96th) has a similar GDP per capita as Nigeria (123rd), but scores a lot higher on social progress.

An outside view on the WDR 2015: Will adding a behavioral dimension to development mark a paradigm shift?

Chris Eldridge's picture

The following post is a part of a series that discusses 'mind and culture,' the theme of the World Bank’s upcoming World Development Report 2015.

Recently I was asked to give some feedback on the upcoming World Development Report 2015 (WDR 2015). WDR 2015 will be both important and timely. The following are some initial suggestions for the report.

River Salinity in Coastal Bangladesh in a Changing Climate

Susmita Dasgupta's picture

With a virtual certainty that sea-level rise (SLR) will continue beyond 2100 even if greenhouse gas emissions were stabilized today, it is essential that we gain understanding of the potential impacts of SLR and begin planning adaptation, especially for countries with major risk of SLR. The urgency of responding to the growing alarm over climate change effects worldwide is hitting headlines this week, as the Intergovernmental Panel on Climate Change (IPCC) just released its Climate Change 2014 report warning that climate change is already having widespread effects on every continent and throughout the world’s oceans.

Friday Roundup: Tunisia cronyism, Africa land grabs, Banerjee to lecture, Piketty and Easterly books reviewed, Basu in top thinker contest and more

LTD Editors's picture

The Washington Post's Monkey Cage has a post on crony capitalism in Tunisia that draws from the findings of a widely reported WB working paper by Bob Rijkers, Caroline Freund and Antonio Nucifora  titled 'All in the Family: State Capture in Tunisia.'

Kayode Ogunbunmi, correspondent from City Voice newspaper in Nigeria, covered the World Bank's Annual Land and Poverty Conference in Washington this week his story for Reuters TrustLaw website looks at how foreign investors are often blamed for Africa land grabs conducted by local ruling elites.

Land matters: Experts grapple with issues of measurement, ownership and equity

Merrell Tuck-Primdahl's picture

Good stewardship of land – whether fertile fields or tracts on the edges of growing cities – can drive sustainable and equitable development. Done well, good land governance can enable farmers, community leaders, city planners, remote sensing scientists, researchers and relief organizations to successfully deal with climate change, urbanization, gender equality, and food security. But the complexity of land administration, and its attendant institutional and political hurdles, often hamper progress and reinforce deep-seated inequalities and inertia instead of fostering growth and shared prosperity.

This is what makes the Annual World Bank Conference on Land and Poverty happening this week at the World Bank so important. Over 1,000 experts from 115 countries have gathered here for the event and are exploring a wide range of problems and potential solutions.

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