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The “Missing Middle” and the Growth of Social Enterprises

Aleem Walji's picture

SOCAP (via amsterdam.wordpress.the-hub.net)Every fall at Social Capital Markets (SOCAP), the who’s who of impact investing and social enterprise convene in San Francisco to network and share stories about topics like market-based solutions to poverty, social stock exchanges, and just how much capital is waiting to be deployed to solve the world’s toughest problems. It’s inspiring to be sure, especially the growth in the number and diversity of participation. It’s no longer the sole domain of Ashoka, Skoll, and Schwab who have paved the way for so many others. Today, mainstream Banks from Europe to Asia, fund managers, and wealth advisors are sending a signal that doing good and doing well is a more enlightened form of capitalism.

But behind all the feel-good energy and promises that impact investing will be a $50 billion industry by 2020, there are gaps in the story line and challenges that we must confront as a community. First, there is no clear definition of an impact investor. The industry brings together those who are primarily driven by a financial bottom line (finance first) with those who are seeking to optimize a social return without making a loss (impact first), and finally grant makers who are aiming to improve the efficiency of philanthropic capital (largely foundations). Their world views are different, their expected returns are different, and how they use the same vocabulary (e.g. impact, viability, and sustainability) varies widely.

Renewing urgency around Education for All?

Elizabeth King's picture

Global Partnership for Educaiton (GPE) New Logo

As donors, developing country governments, civil society and private sector representatives gather in Copenhagen for the replenishment of the Global Partnership for Education (GPE), I feel both a sense of pride and urgency.

An imperative: reforming medical and public health education

Patricio V. Marquez's picture

Albania-08054400011 - World Bank

My recent work in Azerbaijan convinced me that reforming medical and public health education programs is critical to revamping clinical processes and public health practices for effective prevention, diagnosis and treatment of diseases and injuries. In this small Caspian Sea country, improving physicians, nurses and public health specialists’ educational programs—which are hampered by outdated conceptual and methodological structures and practices—is starting to receive priority attention in the country’s quest to improve health system performance.

The challenge is shared globally, as different countries are struggling to sufficiently staff their health systems with well-trained, deployed, managed and motivated physicians and nurses to provide quality medical care, and competent staff to manage service delivery and carry out essential public health work such as disease surveillance.

With few exceptions, such as the 2010 Lancet commission report*, medical, nursing and public health education reform has failed to appear in the international health agenda—yet we continue to focus on employment and remuneration of existing personnel. This has to change. Why? Simply because the adoption of and adaptation to local conditions of new knowledge, country experiences and good practices help accelerate social and economic development.

Looking beyond averages in health data

World Bank Data Team's picture

A new data set for more than 80 developing countries reveals some large differences in both health status and health service use by wealth quintile.

Improving health is central to achieving the Millennium Development Goals, but national-level estimates of progress do not reveal the disparities between different groups of the population. A new data set for more than 80 developing countries shows that there are large differences in both health status and health service use by wealth quintile in many developing countries.

The Future of Banking

Thorsten Beck's picture

For better or worse, banking is back in the headlines. From the desperate efforts of crisis-struck Eurozone governments to the Occupy Wall Street movement currently spreading across the globe, the future of banking is hotly debated. A new compilation of short essays by leading financial economists from the U.S. and Europe analyzes the short-term challenges in addressing the Euro-crisis as well as the medium- to long-term regulatory issues. The essays cover a wide variety of topics, ranging from Eurobonds to ring-fencing and taxation, but there are several themes that come through across the chapters. First, many reforms have been initiated or are under preparation, but they are often only the first step towards a safer financial system. Second, there is a need to change banks’ incentive structure in order to reduce aggressive risk-taking. Third, there is an urgent – also political – need to move away from privatizing gains and nationalizing losses, thus from bailing out to bailing in bank equity and junior debt holders.

I will not be able to touch on all the topics discussed in the book, so let me discuss some of the main messages in more detail. Ring fencing – the separation of banks’ commercial and trading activities, known as the Volcker Rule but also recommended by the Vickers Commission in the UK – continues to be heavily discussed among economists. While Arnoud Boot thinks that “heavy-handed intervention in the structure of the banking industry … is an inevitable part of the restructuring of the industry”, Viral Acharya insists that it is not a panacea as long as incentive problems are not addressed. Banks might still undertake risky activities within the ring or might even have incentives to take more aggressive risk. Capital regulations have to be an important part of the equation.

More than we expected: what we would like to know about Conditional Cash Transfers—Part II

Emanuela Galasso's picture

A week ago we hosted an informal workshop with some academic researchers, policymakers and World Bank staff to review "The second generation of evaluations" of CCT programs. Yesterday's post recounted where we stand with respect to 'Opening the Black Box', parsing out what we can about which design features help to produce the human capital impacts that are one of the programs' twin goals. Today we summarize the rest of the discussion.


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