East Asia and Pacific
Lower oil prices are a boon for oil importers around the world. But how well are oil-producing countries adapting to the apparent end of a decades-long “commodity supercycle” and lower revenues? And what does this mean for the global economy?
World Bank economists provided insights on the situation in six developing regions at a webcast event April 15 ahead of the World Bank Group-IMF Spring Meetings. The discussion focused on the challenge of creating sustainable global growth in an environment of slowing growth.
World Bank Chief Economist Kaushik Basu said the global economy is growing at 2.9% and is “in a state of calm, but a slightly threatening kind of calm. … Just beneath the surface, there’s a lot happening, and that leads to some disquiet, concern – and the possibilities of a major turnaround and improvement.”
When you combine death-by-smog with deaths related to exposure to dirty indoor air, contaminated land and unsafe water, the grand total of deaths from all pollution sources climbs to almost 9 million deaths each year worldwide. That’s more than 1 in 7 deaths and makes pollution deadlier than malnutrition.
This fact deserves to be better known, as there are ready solutions. Inaction is not an option.
Over the past three decades, China has successfully lifted more than 500 million people out of poverty. For many years, the government’s poverty alleviation strategy focused on ensuring that every person had access to enough food. Driven by rapid economic development and urbanization, China is today one of the world’s largest producers and consumers of agricultural products.
Now the Chinese government has turned its attention to making the country’s food supply safer. The issue has become so important that, in the words of President Xi Jinping: “Whether we can provide a satisfying solution on food safety to the people is an important test on our capacity of governance.”
According to a poll published in March 2015, more than 77 percent of respondents ranked food safety as the most important quality of life issue. Environmental pollution, which experts consider one of the causes of China’s food safety problems, was another top issue worrying the public.
Chinese people attach significant importance to food, beyond its nutritional characteristics, due to historic memories of starvation. Food is also a symbol of regional pride and distinction, as well as a reflection of respect to guests.
Traditionally Chinese people believe each type of food brings specific medicinal features. Ginger cures a cold, garlic stops diarrhea, spinach is good for the blood, walnuts are good for the brain, pear relieves a cough, etc. When in China, you cannot avoid stories on how adding a specific food to one’s diet helped cure some disease. Therefore, it is understandable why Chinese people attach such importance to food safety. Contaminated or unsafe food poses a threat to public health and also risks undermining social stability and cultural identity.
The root causes China’s food safety problems come from the country’s rapid development. China has experienced unprecedented growth in recent decades and now is the world’s second-largest economy. Such rapid expansion has unleashed positive and negative effects. The industrial boom coupled with urban expansion and infrastructure development put significant pressure on both land and water resources. Over the long term, that pressure could constrain the ability to produce more food.
Two and a half billion people in the world do not have access to formal financial services. This includes 80% of the poor — those who live on less than $2 a day. Small businesses are similarly disadvantaged: As many as 200 million say they lack the financing they need to thrive.
This is why we at the World Bank want men and women around the world to have access to a bank account or a device, such as a cell phone, that will let them store money and send and receive payments. This is a basic building block for people to manage their financial lives.
Why is this so important? Financial inclusion helps lift people out of poverty and can help speed economic development. It can draw more women into the mainstream of economic activity, harnessing their contributions to society. And it will help governments provide more efficient delivery of services to their people by streamlining transfers and cutting administrative costs.
A step out of poverty
Studies show that access to the financial system can reduce income inequality, boost job creation, and make people less vulnerable to unexpected losses of income. People who are "unbanked" find it harder to save, plan for the future, start a business, or recover from a crisis.
Being able to save, make non-cash payments, send or receive remittances, get credit, or get insurance can be instrumental in raising living standards and helping businesses prosper. It helps people to invest more in education or health care.
World Bank Vice President and Special Envoy for Climate Change Rachel Kyte speaks from the World Conference on Disaster Risk Reduction underway in Sendai, Japan, about the need for greater investment in resilience. As the conference was taking place, a Category 5 cyclone swept across Vanuatu, leaving destruction in its wake.
It’s one of the harsh realities of today.
Just as representatives from around the globe began to gather in Sendai, Japan, for an international disaster risk conference, authorities in Vanuatu were issuing evacuation alerts with Cyclone Pam intent on a destructive path towards the Pacific island nation.
On the eve of the official opening of the World Conference on Disaster Risk Reduction in Sendai, three cyclones – including the ferocious Cyclone Pam – were casting a menacing shadow over the Asia Pacific region.
It underscores a simple point. The threats posed by natural disasters are on the rise.
Breakthroughs in energy technology are happening all over the world, improving access to power for people and making a real difference in their quality of life. While technological innovation tends to come predominantly from developed economies, we see incredible entrepreneurialism in developing countries when it comes to adopting and adapting new technology for local markets and needs. The challenge for poorer countries is getting timely access to the best and cleanest technologies.
When I was approached by Ideas Lab to share my energy innovation predictions, I decided to crowdsource ideas from my team in the World Bank’s Energy Global Practice. These are people in regular — almost daily — contact with the government and private sector in the world’s key emerging markets and low-income countries.
Their workdays are occupied by the challenge of improving energy services for millions of people in developing countries while also reaching the 1.2 billion people in the world still waiting for any electricity connection. And the challenge is to do this in ways that are sustainable for economies, people and the environment.
1. In terms of technology breakthroughs, at the top of everyone’s list: energy storage.