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East Asia & Pacific is facing some great development challenges today: urbanization, protection of the environment, the need to find renewable energy sources and many others. This site wants to create a conversation around those important issues. More »

Philippines

Climate Change won't go away – so get the basics right now

Editor's note: This post is part of Blog Action Day on climate change. For more information, visit blogactionday.org.

Apologies for having been out of touch since Carbon Expo. I needed a break, and summer in Croatia proved one can have a life beyond international development and carbon finance. Climate change, however, very much stayed on my mind with reports of wildfires in the United States and Greece. Clearly, one cannot escape all-encompassing global change, in particular when negotiations have now started in earnest on a post-2012 treaty to reduce carbon emissions and provide financing for developing countries.

Some still think that climate change is just a buzz topic and will quietly disappear from global attention. Let me assure you that many people in East Asian and Pacific countries would disagree. They are hit by natural disasters, which in recent years not only steadily increased in frequency, but also in intensity.

Philippines flooding: Responding to a disaster in real time


Flood affected areas in Metro Manila Region and Rizal Province, Philippines. Hi-res version. Canadian Space Agency Image processing, map created 29/09/2009 by UNITAR/UNOSAT.

Saturday morning, September 26, in Washington, DC: I am driving my daughter to class. I check my Blackberry and see an urgent email from Mukami, our Disaster Management team member in Manila, asking me to call her. (I need to stop reading emails at red lights. It’s probably against the law and it’s certainly obsessive).

I call Mukami on her cell-phone. She says that Manila has seen some of the worst flooding in its history after Typhoon Kestana dumped 16.7 inches of rain in just 12 hours on Saturday. The Government is immediately looking for satellite images to help in the search and rescue efforts. Some World Bank staff were still unaccounted for. She also asks about what other assistance the Bank can offer the Government in the aftermath of this disaster.

Philippines: Surviving Tropical Storm Ondoy - Ketsana

For 24 hours last Saturday, Typhoon Ondoy dumped 455 millimeters of rain on Luzon, causing massive floods and destroying lives and property in Metro Manila. (Photo courtesy of IRRI Images under a Creative Commons license)

Muelmar Magallanes, an 18 year-old construction worker, had already saved 30 people from the raging floodwaters last Saturday. Shivering and exhausted, he dived back into the murky waters to save a mother and a baby girl who were bobbing up and down among the floating debris and brought them to safety. Then he was gone, swept away by the torrents. His body was found the following day.

Magallanes is one of the more than 240 casualties caused by Tropical Storm Ondoy (international name: Ketsana). For 24 hours last Saturday, Typhoon Ondoy dumped 455 millimeters of rain (double the volume brought to New Orleans by Hurricane Katrina) on Luzon, causing massive floods in Metro Manila and the adjoining regions, destroying lives and property, and creating anguish and devastation in the metropolis.

Doing Business 2010: Indonesia, China and the Philippines among countries noted for at least one reform

Earlier today, the World Bank released its annual Doing Business report, which tracks business regulation reforms and ranks emerging economies on the “ease of doing business.” In East Asia and Pacific, 71 percent of the countries have undertaken at least one positive reform – with Indonesia being the region’s most active reformer, according to the report (pdf). Among other things, Indonesia cut the time required to start a business and the number of days to transfer a property.

Deflation in Thailand?

When the capacity of the economy to supply goods and services (given by its factories, workers, etc.) exceeds demand, as happens in a crisis, there is pressure for prices to fall. A continued decline in prices (deflation) can in turn aggravate the economic crisis, because consumers expect prices will be lower in the future and so have an incentive to postpone purchases. They also fear that their wages (the price of labor) may decline along with other prices, and tend to save more. These factors further reduce demand and may create a vicious cycle, such as the one that happened in Japan in the 1990s.

But not all changes in prices are related to the underlying domestic economy. If price changes are expected to be "one-off" then the expectations of consumers about future prices do not change, and the logic above does not apply.

Remittances to East Asian countries now expected to fall 6 to 8.8 percent in 2009

A few weeks ago, the World Bank’s migration and remittances team released its latest forecast of global remittance flows, indicating that even fewer migrants from developing East Asian and Pacific countries may be sending home money this year than they predicted in an earlier report. Remittances flowing to countries in the region are now forecast to fall by 5.7-8.8 percent in 2009, according to the report (pdf). Revised 2008 data show China, the Philippines and Vietnam are in the top 10 recipients of remittances among developing countries.

Interestingly, despite indicating falling remittance flows to the East Asia and Pacific region, the outlook states that South and East Asian countries have been relatively strong. There is, of course, a risk of a further slowing down. For example, remittance money flowing to the Philippines appears to still be growing this year. But such positive flows went from 14 percent year-on-year growth in 2007-08 to just 3 percent growth so far in 2009, according to the report.

The report’s authors write that there may be key risks that further threatening global remittance flows to developing countries – including a longer-than-projected financial crisis threatening jobs and income for immigrants in developed countries. However, they write, recovery may come by next year: “We expect that remittance flows to developing countries could decline by 7-10 percent in 2009, with a possible recovery in 2010 and 2011.”

What’s the significance of remittances? One notable example came from blogger Eric Le Borgne last April. Eric pointed out that remittances are a key factor to the economic health of the Philippines, as well as the country’s resilience so far during the global financial crisis.

Philippines offers insight into future of mobile banking and the poor

It’s now evident that people in developing countries have access to the internet and mobile phones like never before, which (as I recently wrote about) may lead to increased economic growth, job creation and good governance. A huge piece of this broad puzzle is mobile banking, and utilizing mobile phones to bring financial services to people who wouldn't otherwise have access to banks ("unbanked").

A new study, released last month by the Consultative Group to Assist the Poor (CGAP) and GSMA, estimates that there are more than one billion people worldwide who are unbanked, yet have access to mobile phones. And by 2012, that number is expected to grow to 1.7 billion people.

Web videos for a cause: using films to raise awareness, donations

A while back, I saw this blog post, written by a Global Voices blogger Juliana Rincón Parra, highlighting storytellers using online videos to raise awareness about hunger in the Philippines. Among other videos, the blogger pointed out one film in particular, called Chicken a la Carte, a touching video that has been viewed thousands of times after spreading virally on the web through social media sites and email.

This got me thinking, and wondering, about how else online videos are being used to raise awareness of issues and spread word about charities and organizations. It is clear that a short film or video, if done well, can be an incredibly effective at turning an issue we’ve heard of into something much more personal and emotional. And as the Chicken a la Carte film shows, sites like YouTube can facilitate a video’s rapid and widespread broadcasting to mindboggling degrees.

New web and mobile connectivity report: China, the Philippines lead region in IT jobs

Students take a computer course at a private school in Cambodia.

A number of fascinating web-related findings came out of a World Bank report, released this week, which ties Internet and mobile phone access in developing countries to economic growth, job creation and good governance. Connectivity in the developing world seems to be better than ever. In developing countries worldwide, there are currently three billion mobile phone users, and the number of Internet users in developing countries increased by 10 times between 2000 and 2007.

In East Asian and Pacific countries, the number of Internet users (15 percent) was slightly above the developing-country average in 2007 (13 percent), but was still below the world average that year (22 percent). The connectivity and access to new information and communications technologies changes the way companies and governments do business, while bringing vital health, financial and other market information to people like never before.

While India is the clear leader in creating information technology-related jobs, China and the Philippines both stand out as benefiting by generating new job opportunities. And within the industry, the Philippines is also notable, because its IT services workforce is made up of 65 percent women, who hold more high-paying jobs than in most other sectors of the economy.

You can take your own look at the statistics compiled on each country, or create your own custom reports, from the IC4D Data & Methodology page.

You can also submit questions now for Christine Zhen-Wei Qiang, World Bank economist and editor of the report, for a live online chat on July 28 at 11 a.m. in Washington, D.C.

CarbonExpo: On climate change and carbon finance, cities initiate change

Pongtip Puvacharoen works at the World Bank's East Asia and Pacific stand on the first day of Carbon Expo in Barcelona.

As promised, here's my first update from Barcelona and the CarbonExpo. Today is the first official day of the Expo, and my colleague from Bangkok, Pongtip Puvacharoen, and I basically just finished helping the World Bank's East Asian clients – China, Indonesia, Mongolia, the Philippines, and Thailand – set up the East Asia and Pacific Pavilion.

This year's CarbonExpo focuses on the efforts of cities to increase their sustainability by introducing clean transport, improve air quality, increase the production of renewable energy, and improve energy efficiency. I do love living in cities, in particular "megacities" of over 8 million inhabitants. But I am also a big fan of trees, green spots in between the concrete, and a fresh breeze – some things I sometimes miss in the U.S. and in East Asian metropolises.

This is why I really thought it important that Jakarta (Indonesia), Tianjin (China), and Bangkok (Thailand), participated in the Symposium on Cities, Climate Change, and Finance, co-organized by the World Bank, the Spanish government, and the City of Barcelona. After all cleaner, greener, and more livable cities are good for all of a city's inhabitants, rich and poor, and help improve living standards and the health of its people.