Syndicate content

Latin America & Caribbean

Supporting Entrepreneurs: Breaking Down Barriers for Access to Finance

Irene Arias's picture
Also available in: Español

​Small and medium sized companies are the backbone of Latin America’s economy. They represent more than 90 percent of all enterprises in the region, generating over half of all jobs and a quarter of the region’s gross domestic product. They are essential to economic growth, yet their success is often blocked by one key obstacle: lack of credit. Nearly a third of companies in the region identified lack of credit as a major constraint, according to recent surveys.

Take the case of Sonia Arias, who owns a small textile business in Medellin, Colombia. When she opened her business seven years ago, she took an informal loan that left her with sky-high interest rates and little cash to reinvest. “When I was paying these loans,” she said, “it felt like we were being hit with a stick.”

Empowering new generations to act

Paula Caballero's picture
Also available in: العربية | Español | Français | 中文
Photo by CIAT via CIFOR FlickrWhen I look at the rate of resource depletion, at soil erosion and declining fish stocks, at climate change’s impacts on nearly every ecosystem, I see a physical world that is slowly but inexorably degrading. I call it the "receding reality"—the new normal—slow onset phenomena that lull us into passivity and acceptance of a less rich and diverse world.

In my lifetime, I have seen waters that were teeming with multi-colored fish, turn dead like an empty aquarium. I have seen the streets of Bogota, my home town, lose thousands of trees in a matter of years.

It’s tempting to feel demoralized. But as the world’s protected area specialists, conservationists and decision makers gather in Sydney, Australia, this week for the World Parks Congress, there is also much to hope for.

 

5 Ways Marine Parks Benefit People

Amanda Feuerstein's picture
Photo via Shutterstock​Marine Protected Areas will be a topic for discussion at the IUCN World Parks Congress, which is opening today in Sydney.  And it should be: MPAs—which are marine spaces that restrict human activity and manage resources to achieve long-term conservation of nature—are one of the many tools for better ocean management.  This is one of the reasons the World Bank Group supports efforts to establish MPAs in countries including Indonesia and Brazil.

Every MPA is not created the same; some allow fishing and some do not, some are small and some are large, some are connected and some stand alone. When they are well planned and well executed, MPAs can help feed communities, protect jobs and boost biodiversity in the ocean. Here are the top five reasons why MPAs can be GREAT!

1. Spill Over Effects

The benefits of an MPA extend far beyond the boundaries of protection. When well planned, MPAs act as the home base for migratory species. These species use the protected area to reproduce, feed or congregate. But they do not stick around for long. This is called the “spill over effect” and it is hugely beneficial to local fishing communities. Even if fishing is restricted inside the MPA, just outside the border the fish are more numerous and far larger. For example, in Indonesia, community income increased 21 percent in 258 villages near a network of six protected areas.

Opening the Green Bond Market in Mexico

Mauricio González Lara's picture
Also available in: Español

“Growing a Green Bond Market in Mexico: Issuers and Investor Summit” was held Oct. 27 in Mexico City, organized by the International Finance Corporation (IFC), the Asociación de Bancos de México, HSBC, and Crédit Agricole. The timing could not have been better. Although the first green bonds were issued in the last decade, their popularity has exploded in recent years. According to estimates, the market will be a $40 billion one this year, a figure that represents a fourfold increase relative to last year.

A green bond is a financial market debt instrument. Its uniqueness lies in the commitment of the issuer to channel the funds raised exclusively toward green projects, that is, projects that have a positive impact on climate change and involve both renewable energy and energy efficiency.

It’s Not the How; It’s the Why

Shanta Devarajan's picture
Also available in: Español | Français | العربية

Hardly a week goes by without my hearing the statement, “It’s not the What; it’s the How.”  On the reform of energy subsidies in the Middle East and North Africa, for instance, the discussion is focused not on whether subsidies should be reformed (everyone agrees they should be), but on how the reform should be carried out.  Similar points are made about business regulations,educationagriculture, or health. I confess to having written similar things myself.  And there is no shortage of such proposals on this blog
 
Reforms are needed because there is a policy or institutional arrangement in place that has become counterproductive.  But before suggesting how to reform it, we should ask why that policy exists at all, why it has persisted for so long, and why it hasn’t been reformed until now.  For these policies didn’t come about by accident.  Nor have they remained because somebody forgot to change them.  And they are unlikely to be reformed just because a policymaker happens to read a book, article or blog post entitled “How to reform…”

Disaster Risk: Using Capital Markets to Protect Against the Cost of Catastrophes

Michael Bennett's picture
Hurricane Sandy / NOAA
Hurricane Sandy / NOAA


In addition to their often devastating human toll, natural disasters can have an extremely adverse economic impact on countries. Disasters can be particularly calamitous for developing countries because of the low level of insurance penetration in those countries. Only about 1% of natural disaster-related losses between 1980 and 2004 in developing countries were insured, compared to approximately 30% in developed countries. This means the financial burden of natural disasters in developing countries falls primarily on governments, which are often forced to reallocate budget resources to finance disaster response and recovery. At the same time, their revenues are typically falling because of decreased economic activity following a disaster. The result is less money for government priorities like education or health, thereby magnifying the negative developmental impact of a disaster.

To address this problem, the World Bank Treasury has been helping our clients protect their public finances in the event of a natural disaster. The most recent innovation is our new Capital-at-Risk Notes program, which allows our clients to access the capital markets through the World Bank to hedge their natural disaster risk. Under the program, the World Bank issues a bond supported by the strength of our own balance sheet, and hedges it through a swap or similar contract with our client. The program allows us to transfer risks from our clients to the capital markets, where interest in catastrophe bonds is growing.

Moving Toward Gender Equity: It Takes Strategy and Opportunity

Sammar Essmat's picture



“Maybe in the Middle East … but in our part of the world, there is no gender inequity.” As an Egyptian, I wasn’t surprised to hear such assertions from colleagues when I arrived in the Eastern Europe and Central Asia region to deliver a program aimed at creating opportunities for women in the private sector. With its socialist legacy, the region prided itself on gender equality. Women were historically well-represented in the state-run economic systems. I looked at legal frameworks and the Women, Business and the Law indicators and found little evidence of discrimination. Laws on the books were overwhelmingly gender-neutral. I was puzzled.
 
Then I studied data from the World Bank’s Enterprise Surveys: Women’s rates of participation in the private sector told a different story. Women’s status seemed to be collapsing with the state systems and falling as markets started opening. For instance, now, only 36% of firms in the region are owned by women; that is a lower percentage than in East Asia (60%) and Latin America and the Caribbean (40%). Only 19% of companies in Eastern Europe and Central Asia have female top managers, compared to 30% in East Asia and 21% in Latin America and the Caribbean.
 
So I faced the daunting task of delivering a gender program in a region where few believe that there are gender issues to address.

A Day with Brazil’s Innovative Bolsa Familia Program

Mohamad Al-Arief's picture
Field Visit to Escola Municipal Almirante Tamandare, Vidigal, Brazil

This week I’ve been participating in the World Bank’s South-South Learning Forum in Rio de Janeiro, Brazil, where policymakers from 70 countries are sharing their experiences and discussing practical solutions for successful social protection programs.

3 Blind Spots for Gender Equity: Work, Education, and Violence

Jim Yong Kim's picture
Also available in: Français | Español | العربية

Woman in Nepal

As we mark International Women’s Day, women and girls are better off than just a few decades ago. Boys and girls are going to school in equal numbers in many countries. Women are living longer, healthier lives.

But even with the steady progress we’ve seen over the past few decades, one of our biggest challenges today is to avoid falling prey to a sense of self-satisfaction.  We don’t deserve to, not yet. 

We need a renewed sense of urgency and a clearer understanding of the remaining obstacles.   When it comes to improving the lives of women and girls, we have blind spots.  In fact, we know of three shocking inequalities that persist in education, the working world, and women’s very security and safety.

Blind Spot No. 1: Education of Girls.

We have made impressive gains in achieving universal access to education, but what we’re failing to see is that girls who are poor—those who are the most vulnerable—are getting left behind.  

While wealthier girls in countries like India and Pakistan may be enrolled in school right alongside boys their age, among the poorest 20 percent of children, girls have on average five years less education than do boys.  In Niger, where only one in two girls attends primary school, just one in 10 goes to middle school, and stunningly only one in 50 goes to high school. That’s an outrage.

Pages