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No Money, No Worry

Maya Brahmam's picture

Rafu, the chief of the fishing villageThe World Bank recently completed two surveys that confirm that large global banks are restricting or terminating relationships with other financial institutions and that banking services for money-transfer operators have become increasingly limited.

The risk is that a decline in correspondent banking services can lead to financial exclusion, particularly for remittance providers – poor people working in richer countries who send money home to their families in poorer countries. To a large extent, these restrictions have come about because of worries about money laundering or financing for terrorism and less appetite for risk.

However, there are alternatives. Mobile money is a fast-growing alternative to traditional banks. CBS’s Lesley Stahl recently reported on how MPesa has transformed financial inclusion in Kenya, where people- many of them poor- do most of their financial transactions via cellphone and outside of traditional banking systems.  She also pointed out that tech giants like Google, Facebook, PayPal and Apple are all exploring this new consumer market, where sending money can be as simple as sending a text message. Also, according to the Financial Times, mobile money is making serious inroads in Latin America, where 37 mobile money services are now operational across 19 countries. Unlike the experience of Africa, Latin Americans are using mobile money to support urban middle-class lifestyles.

A nice example of how government-to-government peer pressure can lead to innovation

Duncan Green's picture

John HammockGuest post from John Hammock of the Oxford Poverty & Human Development Initiative

In Duncan Green's thought-provoking blog ‘Hello SDGs, what’s your theory of change?’ he rightly identifies peer pressure as a potentially very effective means of governments coming to internalise the SDGs in their domestic processes and influencing others to follow suit. Let me give an instructive case study based on our experience at OPHI.

I think there is common ground that effective change must be owned by the implementers of change, not by donors or academics, not by consultants or think-tanks, not by well-wishers (or even bloggers).  Change happens in government when the change is owned and this happens when the policy maker sees how the policy will help both deal with the problem in real time and help the government in power.

Let’s take the case of multidimensional poverty and its measurement.  OPHI—an academic centre—developed at the end of 2008 the Alkire Foster method to measure multidimensional poverty, giving the world a practical tool to measure many deprivations that poor people face at the same time. Four years later, three ‘vanguard’ governments [to borrow Dunanc's phrase!], Mexico, Colombia and Bhutan, had adopted the measure but take-up elsewhere was painfully slow. Statisticians and geeks loved it, but governments were not following the starting three.

Quote of the Week: David Brooks

Sina Odugbemi's picture

David Brooks"Politics is the process of making decisions amid diverse opinions. It involves conversation, calm deliberation, self-discipline, the capacity to listen to other points of view and balance valid but competing ideas and interests."

- David Brooks, a New York Times Op-Ed columnist, who writes about politics, culture and the social sciences. He has also written several books, including The Road to Character, The Social Animal, and Bobos in Paradise.

Keep calm and celebrate the 2015 International Men's Day

Leszek J. Sibilski's picture

International Men's DayThe greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.”Bob Marley

After writing about International Men’s Day (IMD) last year, I didn't need to do so this year; however, during a lively discussion in one of my sociology classes, one of the female students asked me to provide her with the definition of a man. After reciting the textbook definition, a couple of thoughts crossed my mind. First, I have never been a fan of defining any human being, since we are constantly evolving. Secondly, this question ignited an idea within my teachings on gender problems to create a special class unit solely devoted to the celebration of men’s and boys' roles in contemporary society. This semester, all of my almost 100 students (and their relatives and social networks) will learn about not only International Men’s Day, but also about the importance of men and boys in our global society.

In 2015, the theme is: “Make a difference for men and boys.” The objectives of International Men's Day include a focus on men's and boy's health, improving gender relations, promoting gender equality, and highlighting positive male role models. It is an occasion for men to celebrate their achievements and contributions, in particular their contributions to community, family, marriage, and childcare. International Men's Day is celebrated in over 60 countries of the world.

Internet governance 2015: Brazil and beyond

CGCS's picture

Christian Moller explores the future of the Internet Governance Forum as the November 2015 IGF meeting in Brazil approaches.

Table flags and backboard of the 7th Internet Governance Forum2015 continues to be a decisive year for Internet governance. As in 2014 with the passage of Marco Civil and the NETmundial Meeting, Brazil is again in the focus of this year’s developments as the tenth meeting of the UN Internet Governance Forum (IGF) will convene in João Pessoa in November. Titled “Evolution of Internet Governance: Empowering Sustainable Development,” in anticipation of this year’s IGF, human rights advocates have already begun to ask whether Brazil’s approach to internet governance might serve as a model for the rest of the world.

Brazil 2014: Marco Civil and NETmundial

In April 2014, a Global Multistakeholder Meeting on the Future of Internet Governance, also known as NETmundial, was hosted by the Brazilian government in São Paulo. NETmundial brought together over nine hundred attendees from governments, international organizations, the private sector, and civil society and resulted in the adoption of a (non-binding) Internet Governance Roadmap. Following the meeting, a number of pieces reviewed and commented on NETmundial’s outcome and final documents. The Center for Global Communication’s Internet Policy Observatory, for example, published Beyond NETmundial: The Roadmap for Institutional Improvements to the Global Internet Governance Ecosystem to explore how sections of “NETmundial Multistakeholder Statement” could be implemented. The meeting also played host to a series diverging narratives not only between governments, States, and civil society, but also among various civil society actors.

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

Malala Strikes Back: Behind the Scenes of her Fearless, Fast-Growing Organization
Fast Co.Exist
After Pope Francis finishes his opening remarks at the UN General Assembly, the room’s attention quickly begins to stray. Colombian pop star and UNICEF ambassador Shakira launches into a well-intentioned rendition of "Imagine," but the gathered heads of state begin to twist in their seats in conversation and mill in the aisles. Then the song ends, and a gentle but firm voice calls down from the upper mezzanine balcony, cutting through the buzz of distraction. "Before I start, may I ask for some quiet. Please pay attention to what youth is asking here."  Chastened, the world leaders take their seats. In elegantly simple language, 18-year-old Malala Yousafzai implores the adults below—who have convened to adopt a series of development goals for the world’s most underserved communities—to follow through on their promise to deliver free, safe, quality education for children across the globe.

Five reasons funding should go directly to local NGOs
A cohort of small villages comes together to lobby for protection of a local forest upon which they depend. A group of church women gather under a tree to plan for how they will get orphaned children back into school. A self-help group forms a cooperative to get better prices for their products. Dhananjayan Sriskandarajah’s discussion of why donors seem unable or unwilling to directly fund local organisations like these was certainly indicative of the international aid and philanthropy world. As he also mentioned, there is a growing community of international small grantmakers that know how to find and fund effective grassroots initiatives. Here’s why we focus our efforts on getting funding down to local NGOs

How do developing country decision makers rate aid donors? Great new data (shame about the comms)

Duncan Green's picture

A small business owner, GhanaBrilliant. Someone’s finally done it. For years I’ve been moaning on about how no-one ever asks developing country governments to assess aid donors (rather than the other way around), and then publishes a league table of the good, the bad and the seriously ugly. Now AidData has released ‘Listening To Leaders: Which Development Partners Do They Prefer And Why?’ based on an online survey of 6,750 development policymakers and practitioners in 126 low and middle income countries. To my untutored eye, the methodology looks pretty rigorous, but geeks can see for themselves here.

Unfortunately it hides its light under a very large bushel: the executive summary is 29 pages long, and the interesting stuff is sometimes lost in the welter of data. Perhaps they should have read Oxfam’s new guide to writing good exec sums, which went up last week.

So here’s my exec sum of the exec sum.

Campaign Art: Wedding vows of poverty

Roxanne Bauer's picture

People, Spaces, Deliberation bloggers present exceptional campaign art from all over the world. These examples are meant to inspire.

Although illegal in most countries, child marriage remains a common practice. Globally, about 39,000 girls are forced to marry each day; that's another child marriage every 2 seconds.  It is often hidden from public discussion, as young girls and boys are often married early to alleviate their family’s financial burden or in hopes of securing a better future for them.  While both genders are affected, child marriage disproportionately affects young females. 
Few child brides stay in the classroom, which is unfortunate not only because these girls lose out on an aspect of self-development and exploration, but also because the loss of educational achievement prevents them from acquiring more lucrative jobs, thereby improving their household income. The World Bank’s 2012 World Development Report on Gender Equality and Development drew attention to the fact that the exclusion of girls and women from school results in a less educated workforce, inefficient allocation of labor, lost productivity, and consequently diminished progress in economic development. It also identified a multiplier effect:  better educated women tend to be healthier, have fewer children, and provide better health care and education to their children, all of which eventually improve the well-being of all individuals and can lift households out of poverty. These benefits also transmit across generations, as well as to communities at large.

Nevertheless, in 26 countries, girls are more likely to be married before age 18 than enrolled in secondary school, according to a report, “Vows of Poverty”, from CARE.  The report was released to mark International Day of the Girl on Oct. 11, 2015, and provides an overview of the forces driving young girls into marriage and out of school while also describing what can be done to reverse those trends.  The following video is part of their campaign end child marriage for girls worldwide.
Vows Of Poverty

The political economy of welfare schemes

Suvojit Chattopadhyay's picture
Medical checkups for children in India.Social welfare schemes the world over are going through interesting times. Egged on by fiscal management targets, welfare cuts are routinely passed off as “reforms”. Subsequently, there is usually pressure on governments to target welfare to the most deserving. Determining who the deserving beneficiaries are and the appropriate value of these transfers is critical.
In a recent edition of the Pathways’ Perspectives, social policy specialist Stephen Kidd bats for universal social security schemes. His central argument is built around the political economy of targeting, suggesting that “inclusive social security schemes build political alliances between those living in poverty, those on middle incomes and the affluent”. Governments that are interested in scaling up social security schemes prefer universal coverage. The argument goes that this way, they build a wide coalition of interests that support their scheme and hope that this support translates into electoral endorsement. On the other hand, governments that are interested in scaling back social security schemes do so by first withdrawing from universal schemes and then introduce an element of targeting. Soon, those that do not benefit from the scheme are more likely to see it as wasteful public spending and therefore, support a move to cut back.

The things we do: How your mobile phone records can predict your creditworthiness

Roxanne Bauer's picture

Jinotega, NicaraguaRisk is a financial term that can mean life or death for a budding entrepreneur.  Many entrepreneurs need to take out loans from banks in order to have enough money to start their businesses.  Banks, though, need to be able to reliably determine which of these potential entrepreneurs will repay the loans and which will default. In developed countries this is usually accomplished through credit reports, which contain an individual’s credit history as reported to a credit bureau by lenders. This system, however, can be problematic in developing countries where many people do not have bank accounts, don’t interact frequently with formal institutions, or are paid informally in cash.  As a result, banks often lack verifiable information on the probability that a loan applicant will be successful. 

Interestingly, one set of data that is available in most countries is mobile phone records.  By the end of 2015, there will be more than 7 billion mobile cellular subscriptions, with a penetration rate of 97%, up from 738 million in 2000.  Due to the incredible market saturation of mobile phones and the ability of mobile phone operators to keep records of call activity (even with prepaid plans), operator records can provide rich information about individual behavior and social networks.  For example, phone records indicate whether or not an individual keeps their balance top-upped so that they can make calls in case of an emergency, how many people they call during the day, how long their calls last, and so on.

Daniel Björkegren, an economist at Brown University and Darrell Grissen of the Entrepreneurial Finance Lab (EFL) wondered whether these phone records could reveal insights into an individual’s behaviors that could be applied elsewhere- specifically whether this information could determine an individual’s creditworthiness.