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January 2017

Access to quality information is crucial to tackle Peru’s environmental problems

Ernesto Sanchez-Triana's picture
Also available in: Español

 Franz Mahr / World BamkBy the early 2000s, Peru faced serious environmental problems. Air pollution in urban areas was so severe that it caused thousands of premature deaths every year. In fact, air quality in Lima was worse than in other large Latin American cities, such as Mexico City or Sao Paulo. Other environmental challenges that damaged people’s health included air pollution inside homes caused by the use of wood for cooking; insufficient access to clean water, sanitation, and hygiene; and exposure to lead, a highly toxic chemical. Together, these environmental problems caused 12 million cases of illnesses annually, dramatically affecting young children, the elderly, and poor people who couldn’t afford medical care. The World Bank estimated that these negative impacts had an economic cost equivalent to 2.8% of Peru’s Gross Domestic Product (GDP) in 2003.
 
One of the main reasons the Peruvian government wasn’t able to respond promptly to these serious environmental problems was the country didn’t have governmental organizations with a clear responsibility for environmental protection. Another important reason was the absence of a system of reliable environmental information to support the government’s decision-making process. For example, there was little awareness about the seriousness of air pollution, largely because most cities didn’t have a functional air quality monitoring network. Even in the few cities that did, the information was not widely disseminated. In the absence of such information, it was difficult to identify which environmental problems were most severe, and to develop actions and assign resources to solve them. In addition, lack of information limited the opportunities for the public—including the poor families and other vulnerable groups that suffered the most from pollution —to discuss their environmental concerns and agree on solutions with government officials.

Making the World Bank Group LGBTI friendly, one step at a time

Caroline Vagneron's picture
Also available in: Français | Español

The business case for greater diversity and inclusion of Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) staff is now well documented, and the corporate world is making solid progress towards LGBTI equality at the workplace. The message is also slowly but surely sinking into international organizations such as the World Bank Group, for which diversity is also synonymous with greater productivity, collaboration, innovation and creativity. In particular, LGBTI-supportive policies are linked to less discrimination against LGBTI employees and more open corporate cultures. Less discrimination and more openness (or less concealment), in turn, are also linked to greater job commitment, improved workplace relationships, improved health outcomes (concealment of sexual orientation is associated with increased psychological distress) and increased productivity among LGBTI employees.

Envisioning the global financial system in a decade

Gloria M. Grandolini's picture
Also available in: العربية | Español | 中文


4 unprecedented disruptions to the global financial system


Climate change, migration, correspondent banking and cybercrime are putting unprecedented and unforeseen pressures on global financial markets.

They aren’t just disrupting the global financial system, but also affect how we approach international development work.

Let’s examine each trend:
  1. “Greening the financial sector” is the new buzz term to finance a transition toward a climate-resilient economy and to help combat climate change. This topic is now getting a lot of attention from the G20 to the Financial Stability Board. The international community is trying to understand what this transition will imply: how resilient the financial sector is to deal with risks stemming from climate change, and how efficiently the financial sector can allocate financial resources. What we know is that currently fossil fuel subsidies and a lack of carbon tax are hindering the market from shifting financial resources from brown to green.
  2. Globally, an estimated 65 million people are forcibly displaced. Migration, resettlement or displacement, of course, impact where and how to channel aid to those in need. But more importantly, as displaced people settle down -- no matter how temporary or long-term -- to become self-sufficient and thrive, they will need to establish new financial relations. This can be for simple transactions such as receiving aid through payment cards (as opposed to cash) or for sending remittances. Or it can be for something more complex as getting a loan to start a business.
  3. At the same time, as the global banking industry is tightening regulations, large banks are withdrawing from correspondent banking and shutting down commercially unsustainable business lines. This recent phenomenon can have a huge impact in some regions on SMEs and on money transfer operators, which largely handle remittances.
  4. Cybercrime is no longer a sci-fi thriller plot, but a tangible potential risk to both national and international financial markets. The focus on cybersecurity risk has increased along with the proliferation of internet and information technology. Fintech is transforming the financial industry -- by extending access to financial services to people and small- and medium-sized enterprises (SMEs) previously left out of the formal financial system – but is also raising many questions, including concerns about cybersecurity. The same technology advancements that are propelling fintech are also addressing cybersecurity risk. However, there is a need to develop an appropriate regulatory framework in combination with industry best practices. This framework is evolving and regulators are grappling with how and when to regulate.

Inconvenient, apocalyptic, or somewhere in between? Why we shouldn’t be complacent about volcanic eruptions

Alanna Simpson's picture
Also available in: Español | Français

A house destroyed by a volcanic eruption. Yogyakarta, Indonesia. Project: JRF. © Nugroho Nurdikiawan Sunjoyo/World Bank

Volcanic eruptions capture the imagination with their awe-inspiring power, but why don’t they capture the attention of decision makers and development professionals working to build resilient communities? People visit Pompeii in the shadow of Mt. Vesuvius, and see the once thriving community destroyed within minutes from a major past eruption, but it does not resonate with their day-to-day lives. We see spectacular footage of erupting volcanoes in the media, but we rarely think about what it means for communities who live within the reach of the multiple volcanic hazards that can occur during eruptions. 

This wasn’t always the case. For 11 years from 1980, volcanic eruptions were at the forefront of the minds of those working in disaster risk management. At the opening of the decade, Mt. St. Helens violently erupted, claiming the lives of 57 and causing over USD1 billion in damage in the USA. Two years later, El Chichon erupted in Mexico killing at least 2,000. In 1985, a very minor eruption of Nevada del Ruiz volcano triggered a massive deadly mudflow (lahar) that killed 23,000 people in the town of Armero, Colombia. A year later, 1,700 people were killed in their sleep by volcanic gases from Lake Nyos volcano in Cameroon.