Two recently released World Bank reports — one on commodities and the other on remittances — lend insight into an unfolding dynamic in the world today. As oil prices dropped from more than $100 per barrel in June 2014 to as low as $27 in the last few months, the money sent home from people working abroad in oil-producing countries also fell. This drop is a major reason remittances to developing countries declined in 2015 to their lowest growth rate since the 2008-2009 financial crisis.
If you think about it, snow is a pretty amazing thing. It is nature’s way of storing water in the winter, and then using it in the summer when it is needed, namely during the growing season. If it gets too warm, the water does not stay locked up as snow till the summer. Too much warmth also means that more snow and ice may melt than usual, resulting in floods. But at the same time, if the water comes down the mountain too abundantly and too early, there may not be enough water during the growing season, causing drought-like conditions.
Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan are among the Europe and Central Asia Region’s most vulnerable countries to climate change. In these five landlocked Central Asian countries, water resources depend on glaciers and snow pack. In this region, we have already seen average annual temperatures increase since the mid-20th century by 0.5°C in the south to 1.6°C in the north, and impacts are already being observed, from melting glaciers in upland areas (where glaciers have lost one-third of their volume since the 1900s), to droughts and floods in the lowlands (where weather-related disasters are estimated to cause economic losses from 0.4 to 1.3 percent of Gross Domestic Product per year for Tajikistan, Turkmenistan, and Kyrgyz Republic, for instance).
The future looks even more challenging. According to a World Bank report “Turn Down the Heat: Confronting the New Climate Normal,” the region’s glaciers, which account today for 10 percent of the annual stream flow in the Amu Darya and Syr Darya basins, are projected to lose up to 50 percent in volume in a 2°C warmer world, and potentially up to 75 percent in a 4°C warmer world. Melting glaciers and a shift in the timing of rivers’ flow will result in a lot more water in the rivers but this excess availability will not be in sync with growing season’s water needs. In the second half of the century, there would then be too little water flow in the rivers when the glacier volume is reduced. The timing of peak flow of key rivers is projected to shift towards spring with a 25 percent reduction in flow during the critical crop growing season. The report also projects increased heat extremes which mean more of a reliance on irrigated agriculture (the report projects a 30 percent increase in irrigation demand) leading to an increase in water demand, exactly when water availability becomes more unpredictable. In this region, water is also connected to energy security, given the reliance on hydropower, creating further challenges.
All eyes turned to Russia recently, when on 16 December the ruble plunged by more than 11 percent, despite the Central Bank of Russia’s last-minute interest rate hike of 6.5 percentage points to 17 percent. When it looked like Russia’s turmoil might spread to global markets, western economies sat up and paid close attention.
What may have gone unnoticed, however, is the ongoing impact on our client countries in the Europe and Central Asia region.
This time, things were different. We became real players in the public discussion about mitigating climate change in Central Asia.
The forum in question -- the second Central Asia Climate Knowledge Forum: Moving towards Regional Climate Resilience – was organized by the World Bank Group in Almaty in May, and brought together about 200 participants from nearly all institutions interested or involved in this problem -- including top officials of Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan, and donors. Around 30 civil society representatives from the Central Asian countries also attended the event. NGOs were represented more solidly at the second forum compared to the first.
”Focus on the journey, not the destination,” was our guiding principle.
Cities have always been the driving forces of world civilizations. What Niniveh was to the Assyrian civilization, Babylon was to the Babylonian civilization. When Peter the Great, third in the Romanov Dynasty, became Russia’s ruler in 1696, Moscow’s influence began to expand. Peter strengthened the rule of the tsar and westernized Russia, at the same time, making it a European powerhouse and greatly expanding its borders. By 1918, the Russian empire spanned a vast territory from Western Europe to China.
As Peter the Great and his successors strove to consolidate their reign over this empire, major social, economic, cultural, and political changes were happening in the urban centers. Moscow led these changes, followed by St. Petersburg, which was built as a gateway to filter and channel western civilization through the empire. By fostering diversification through connectivity, specialization, and scale economies, these cities started the structural transformation of the Russian empire away from depending on commodities and limited markets in a way that more effectively served local demand.
The Soviet era altered this dynamic.
Emerging Europe and Central Asia (ECA) is an interesting region because what you expect is not always what exists. Since this is written in honor of International Women's Day, discussing women’s labor market participation seems appropriate. The standard indicator used for this is the “female labor force participation” (LFP) rate, which is the proportion of all women between 15-64 years who either work or are looking for work.
Since much of the region has a common socialist legacy, you would expect to see similar labor market behavior among women. However, the proportion of women who work ranges from a low of 42 percent in Bosnia and Herzegovina to 74 percent of adult women in Kazakhstan. And it wasn’t 20 years of social and economic transition that led to this divergence. Even in 1990, the range was about the same. The exception was Moldova which saw a 26 percentage point decline.
- Russian Federation
- Kyrgyz Republic
- Bosnia and Herzegovina
- Europe and Central Asia
- Labor and Social Protection
- Social Development
- Macroeconomics and Economic Growth
- labor market
- International Women's Day