East Asia and Pacific
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.
Take a look back at some of the most popular stories you may have missed in 2014:
1. Raising More Fish to Meet Rising Demand
- natural capital
- food security
- Climate Change
- Agriculture and Rural Development
- The World Region
- South Asia
- Latin America & Caribbean
- East Asia and Pacific
A notable shift at the 2014 Forum from previous ones, in addition to the mounting numbers in attendance (the event “sold out” with registration closing weeks early), was the buzz about adaptation. It permeated across panels and speakers, making clear the conversation on land-based sectors and climate change has moved well beyond mitigation. The Program on Forests (PROFOR) contributed to advancing the conversation by convening a high-level panel on “Moving forward with adaptation-based mitigation.”
But the quest for greater yields and profits has compromised soil health, mining soils for nutrients, over-using fertilizers, and creating over 4 billion hectares of man-made deserts.