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Where is the Wealth of Nations?

Kirk Hamilton's picture

Ghana. Photo: © Arne Hoel/The World Bank

If you have ever had a conversation with a finance minister couched in terms of hectares of forestland or tons of greenhouse gases, then you appreciate one of the central problems of environment and development. It tends to be a short conversation, and for good reason – talking about the environment and natural resources this way simply doesn’t fit the model used by economists. If we want to reach ministers of finance and development planning we need not only to value the economic contribution of nature, but to express it in the framework of the System of National Accounts (which includes, among other measures, Gross Domestic Product or GDP as the predominant indicator of economic progress used by macroeconomists).

“Missions Suspended”: Does The Bank Need to Worry about ‘Political Risks’ - and What Does That Mean?

Verena Fritz's picture

For World Bank staff, it’s the announcement on the intranet: at a rate of about once a month, missions are being suspended to some country. All upcoming trips to the concerned country are being cancelled. Sometimes, the events – a disputed presidential election, riots against rising food prices, an increase in bus fares or the price of electricity, or a sudden clash between different ethnicities who previously seemed to live together peacefully – makes international news. At other times, the country concerned is too obscure and the instability is either too short-lived or too recurrent and there is barely a mentioning in the media.

Pakistan, A Bittersweet Homecoming

Zeeshan Suhail's picture
Speaking with colleague Ahsan Tehsin, who worked on the Bank's damage and needs assessment for Pakistan.

I have always had a desire to work in a developing country and have felt a pull towards Pakistan due to my heritage. So after two exciting years in Washington DC, I came across an opportunity to work in the Islamabad office; I went for it.

Within days of accepting the position -to work for the Multi-Donor Trust Fund supporting the Khyber Pakhtunkhwa, Federally-Administered Tribal Areas and Balochistan regions- I was in Islamabad. I had lived in the country for years when I was younger. With family and my fluency in Urdu, this was a homecoming of sorts, but a bittersweet one.

Each day on my way to work I am welcomed by the many checkpoints placed every few kilometers with law enforcement inspecting every vehicle with caution and professionalism (two qualities I once thought they were incapable of possessing!). I encounter at least seven checkpoints. The security situation has deteriorated to such an extent that these barriers to the flow of traffic - and in the mornings, to the flow of thought – bring calm to an otherwise chaotic world.

Diaspora bonds for development financing during a crisis

Dilip Ratha's picture

On September 16 Greece announced that it plans to issue a diaspora bond. In the past the governments of India and Israel have raised over $35 billion dollars, often in times of liquidity crisis. Preliminary estimates suggest that Sub-Saharan African countries can potentially raise $5-10 billion per year by issuing diaspora bonds. Countries that can potentially consider diaspora bonds are Bangladesh, Colombia, El Salvador, Ghana, India, Jamaica, Kenya, Mexico, Morocco, Nepal, Nigeria, Pakistan, Philippines, Romania, Senegal, South Africa, Sri Lanka, Uganda, Zambia, and Zimbabwe (and also Greece, Ireland, Italy, South Korea and Spain). 

A role for the G20 in aid for trade?

John Wilson's picture
Port of Rades, Tunisia. Photo: © Dana Smillie / World Bank

As the G20 looks to establish itself as a permanent fixture in the multilateral policy dialogue, it should consider the global aid-for-trade agenda a top priority. The Summit in Seoul next month presents a unique opportunity to take concrete action in new directions on aid for trade.

The G20 originated – in part – as a global financial crisis management forum, and expanded out of the G8, in the wake of the 2008 world economic crisis. The Group has gained momentum and is solidifying its unique position as the most influential decision making group on global economic stability and growth. As it looks to solidify its transition as a global “steering committee” to sustain sound global growth what better policy issue to champion than one that is high profile, critical to both developed and developing countries, and in need of more effective global coordination -- than aid for trade?  

Evaluating the evaluating of the Millennium Villages Project

Michael Trucano's picture

not all millennium projects are this neatly contained within clearly defined bordersWhen is the rigorous impact evaluation of development projects a luxury, and when is it a necessity?

This is a question asked in a new paper examing the Millennium Villages Project (MVP), a high profile initiative that, according to its web site, offers a "bold, innovative model for helping rural African communities lift themselves out of extreme poverty".

In the words of one of the authors of When Does Rigorous Impact Evaluation Make a Difference? The Case of the Millennium Villages, "We show how easy it can be to get the wrong idea about the project’s impacts when careful, scientific impact evaluation methods are not used. And we detail how the impact evaluation could be done better, at low cost."  The paper underscores the importance of comparing trends identified within a project activity with those in comparator sites if one is to determine the actual impact of a specific project.  This sentiment should come as no surprise to those familiar with an area of exploding interest in the international donor and development community -- that of the usefulness of randomized evaluations.

Impending Tragedy of the Digital Commons?

Antonio Lambino's picture

Earlier this month, the Financial Times published a piece by Misha Glenny entitled “Who Controls the internet?”  The article tells the story of USCybercom, the military command in charge of securing vital U.S. interests from attacks on the web.  Last week, it was widely reported that U.S. Legislators asked Facebook CEO Mark Zuckerberg for more information on the revelation that third-party applications running on the ubiquitous social network he founded were transmitting personally identifiable data to private companies.  It may not be immediately apparent, but these two stories and others like them are inextricably related.  These developments run counter to the realization of a global digital commons, one envisioned to enable an unprecedented number of people around the world to freely express themselves and come into contact with the ideas and opinions of others.

Threats and opportunities unite us

Shamshad Akhtar's picture

As a show of solidarity in the lead up to Cancun, a Mediterranean Climate Change Initiative (MCCI) was launched in the coastal town of Vouliagmeni, near Athens this past week. Fifteen member countries signed a declaration that binds them to work together on climate change. To take this initiative forward, an expert group is to meet in Malta in the coming months─it will be followed by a second MCCI event in Turkey.

 

Such solidarity is important. While not among the worse polluters in the world, the Mediterranean countries face an increase of four degrees in average temperature, and a 70% drop in precipitation in the coming years.

 

I participated in this event and shared the World Bank’s position and perspective. I was struck by the high level of commitment and the cooperative spirit of the host of the meeting; Greek Prime Minister George Papandreou, was joined by the Turkish Prime Minister, Recep Tayyip Erdogan, the Palestinian Prime Minister Salam Fayad, Malta’s Premier Lawrence Gonzi, and other representatives of the Mediterranean countries.

 

This initiative , in some sense, is an historic event. Abandoning political differences, the Prime Ministerial commitments and the time devoted to provide national and regional perspectives, is commendable.

 

Delegates echoed the broad consensus regarding the magnitude and severity of the climate change problem and the cross border implications of the environmental degradation it will cause. A recent World Bank study has shown that warming in the Middle East region is about 50% higher than average global warming. Many of the largest cities in the region are located on the coast and are vulnerable to both sea-level rise and increases in extreme weather events─particularly Bahrain, Egypt, Kuwait, Morocco, Qatar, Tunisia, and the UAE.

Migration and Remittances News Roundup: Oct 22, 2010

Ani Silwal's picture

Credit Where Credit is Due: Partial Credit Guarantee Schemes in the Middle East and North Africa

Roberto Rocha's picture

Editor's Note: The following post was submitted jointly by Youssef Hassani, Economist, MENA, Zsofia Arvai, Senior Financial Economist, MENA, and Roberto Rocha, Senior Adviser, MENA.

Many countries in the Middle East and North Africa (MENA) region have established partial credit guarantee schemes (PCGs) to facilitate SME access to finance. These guarantee schemes can potentially play an important role, especially in a period where MENA governments are still making efforts to reduce risks for lenders by improving the effectiveness of credit registries and bureaus and strengthening creditor rights. However, the contribution of credit guarantee schemes to SME finance depends largely on their design. 

Well designed schemes may be able to achieve significant outreach and additionality, i.e. benefit a significant number of SMEs that have substantial growth potential but are effectively credit constrained due to lack of credit information and collateral. In some countries PCGs have also played an important capacity-building role. By contrast, poorly designed guarantees schemes may have a limited development impact by providing guarantees to firms that are not credit constrained. PCGs may also accumulate losses by providing overly generous and underpriced guarantees, and ultimately become a burden to public finances.


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