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Financial Sector

Phenomenal development: New MOOC draws economic policy lessons from South Korea’s transformation

Sheila Jagannathan's picture

The World Bank Group’s Open Learning Campus (OLC) launched a free Massive Open Online Course (MOOC) today — Policy Lessons from South Korea’s Development — through the edX platform, with approximately 7,000 global learners already registered. In this MOOC, prominent representatives of academic and research institutions in South Korea and the United States narrate a multi-faceted story of Korea’s economic growth. 
 
Why focus on South Korea? South Korea's transformation from poverty to prosperity in just three decades was virtually miraculous. Indeed, by almost any measure, South Korea is one of the greatest development success stories. South Korea’s income per capita rose nearly 250 times, from a mere $110 in 1962 to $27,440 in 2015. This rapid growth was achieved despite geopolitical uncertainties and a lack of natural resources. Today, South Korea is a major exporter of products such as semiconductors, automobiles, telecommunications equipment, and ships.

Source: World Development Indicators, 12/16/2016

Islamic finance in Malaysia: Filling the gaps in financial inclusion

José de Luna-Martínez's picture



In the past decade, the Islamic finance industry has grown at double digits despite the weak global economic environment. By 2020, the Islamic finance industry is projected to reach $3 trillion in total assets with 1 billion users. However, despite its rapid growth and enormous potential, 7 out of 10 adults still do not have access to a bank account in Muslim countries. This means that 682 million adult Muslims still do not have an account at a banking institution. While some Muslim countries have high levels of account ownership (above 90 percent), there are others with less than 5 percent of their adult population who reported having a bank account.

Strengthening Lao PDR’s financial system by making room for failure

José de Luna-Martínez's picture


 

To function properly, a financial system needs to have two doors in place: an “entry” and an “exit”. The first one enables qualified local or foreign institutions to enter the marketplace to provide innovative products and services – such as savings, investments, credits, payments and insurance – to households and firms at competitive prices. The second facilitates the rapid and orderly dissolution of those financial intermediaries that are not able to survive competition, manage risks properly, or comply with rules and regulations.

How to scale up financial inclusion in ASEAN countries

José de Luna-Martínez's picture
MYR busy market

Globally, around 2 billion people do not use formal financial services. In Southeast Asia, there are 264 million adults who are still “unbanked”; many of them save their money under the mattress and borrow from so-called “loan sharks”, paying exorbitant interest rates on a daily or weekly basis. Recognizing the importance of financial inclusion for economic development, the leaders of the Association of South East Asian Nations (ASEAN) have made this one of their top priorities for the next five years.
 
Last week, the World Bank Group presented the latest data on financial inclusion in ASEAN to senior representatives of the ministries of finance and central banks of all 10 ASEAN member countries (Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam). The session, held in Kuala Lumpur, is one of the joint activities the new World Bank Research and Knowledge Hub and Malaysia is undertaking to support financial inclusion around the world.
 

中国的新增银行账户数提升了全球普惠金融数据

Eric Duflos's picture
Also available in: English

根据2014全球普惠金融数据库(Global Findex)信息,中国每10个成年人中有将近8人拥有银行账户,比2011年增长15个百分点。过去三年,全球没有银行账户的人数从25亿降至20亿,来自中国的贡献最为重要。事实上,2014Findex数据显示,全世界5亿新增加的拥有银行账户的成年人中,超过三分之一(1.8 亿)生活在中国。

这一数据库显示出三种积极的发展态势。

1、村人口和贫困人口在新增的拥有银行账户的成年人中占比颇高

现在,在中国最贫困的20%群体中,66%拥有正规的银行账户,这一数据在过去三年增长了28个百分点。农村成年人中(绝大多数贫困人口居住在农村)拥有银行账户的人数也增长了20个百分 点,2014 年,74%的农村成年人拥有银行账户。女性在这样的增长中受益匪浅,目前在金融普惠方面,女性已经与男性程度相当。

中国、发展中经济体和高收入OECD经济体的银行账户情况 





















 

New accounts in China drive global financial inclusion figures

Eric Duflos's picture
Also available in: 中文

Nearly eight in 10 adults in China now have a bank account, according to the 2014 Global Findex. This represents a 15 percentage point increase since 2011. According to the survey, the number of global unbanked has decreased from 2.5 billion to 2 billion in the past three years, and China’s progress has been a major driver of this change. In fact, the 2014 Findex found that of the world’s 500 million newly banked adults, more than one third (180 million) live in China.

Three positive trends emerge from this data.

1. Rural and poor people constitute many of the “newly banked” adults.
Sixty-six percent of the poorest quintile in China now have a formal account which represents an increase of 28 percentage points over the past three years. The rural population – which includes most of the poor in China - also saw a major increase of 20 percentage points with 74 percent of rural adults formally banked in 2014. Women have significantly benefitted from this growth and are now almost as financially included as men.


Source: World Bank Findex 2014

Vietnam’s long-term growth performance: A comparative perspective

Axel van Trotsenburg's picture
Also available in: Tiếng Việt


Vietnam has achieved remarkably high and inclusive GDP growth since the late 1980s. GDP growth per capita increased three-and-a-half-fold during 1991-2012, a performance surpassed only by China. The distribution of growth has been as remarkable as its pace: the bottom 40% of the population’s share in national income has remained virtually unchanged since the early 1990s, ensuring that the rapid income gains got translated into shared prosperity and significant poverty reduction.

GDP growth, however, has been operating on a lower trajectory since 2008. This has led to questions regarding the sustainability of the growth process, and, with it, Vietnam’s ability to bounce back to about 7-8% per capita growth. Analysts have voiced concerns over declining total factor productivity growth and growing reliance on capital accumulation. Moreover, a number of competitiveness issues routinely get raised by private investors, including: a widening skills gap, limited access to finance, relatively high trade and transport logistics costs, an overbearing presence of the SOEs, and heavy government bureaucracy that makes it difficult for businesses to operate in Vietnam.

Tiềm năng tăng trưởng của Việt Nam: Góc độ so sánh

Axel van Trotsenburg's picture
Also available in: English


Kể từ cuối thập kỷ 80 của thế kỷ trước, Việt Nam đã có tốc độ tăng trưởng kinh tế cao với lợi ích bao trùm. GDP bình quân đầu người tăng 3,5 lần trong giai đoạn 1991-2012 — chỉ sau Trung Quốc. Cùng với tốc độ tăng trưởng, phân bố tăng trưởng cũng là một thành tích rất đáng ghi nhận: phần thu nhập quốc gia dành cho nhóm 40% dân nghèo nhất hầu như không thay đổi kể từ đầu thập kỷ 1990 tới nay, điều này đảm bảo rằng tăng trưởng kinh tế được phân phối cho mọi tầng lớp và giảm nghèo một cách đáng kể.

Tuy nhiên, kể từ 2008, tăng trưởng GDP đã đi theo một quỹ đạo thấp hơn. Qua đó đã nảy sinh một số câu hỏi về mức độ bền vững của tăng trưởng và liệu Việt Nam có thể khôi phục mức tăng GDP bình quân đầu người 7-8% hay không. Các nhà phân tích quan ngại về xu thế giảm tăng trưởng năng suất nhân tố tổng hợp và mức độ phụ thuộc ngày càng nhiều vào tích tụ vốn. Thêm vào đó, các nhà đầu tư tư nhân cũng thường xuyên nêu các vấn đề liên quan đến năng lực cạnh tranh như kỹ năng ngày càng thiếu, khó tiếp cận vốn, chi phí thương mại và kho vận tương đối cao, độc quyền của các doanh nghiệp nhà nước và bộ máy hành chính cồng kềnh gây cản trở hoạt động của doanh nghiệp.

Liability insurance for climate change

Connor Spreng's picture


Our response to climate change at the global level clearly needs improving. While some governments are managing to set and enforce limits on the emission of greenhouse gases, an international agreement that is both enforceable and meaningful remains elusive. Measures undertaken by private individuals and organizations, though plentiful, largely fail to connect to the political process and continue to fall short in aggregate. Is there a way to combine these public and private efforts? We think there is, as we’ve explored in a recent NZZ article and ETH blog post: a new type of liability insurance.

Looking to the insurance industry for addressing climate change is not new (see, for example, Nobel Laureate Robert Shiller’s column; the Geneva Association’s statement; and the climate change and insurance links discussed at the World Bank’s recent Understanding Risk conference). What has been lacking, however, are ideas for employing insurance instruments at scale, across national boundaries, and in a way that maximizes existing capacities and market mechanisms.

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