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Climate Change

Envisioning the global financial system in a decade

Gloria M. Grandolini's picture


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.

2016 in Review: Your favorite social media content

Mario Trubiano's picture
Also available in: العربية | Español | Français

Another year has passed, and as we do each year-end, here’s a rundown of what content resonated most with you on World Bank social media in 2016.

Four World Bank Facebook posts you cared about most

Some of our most popular and engaging content on Facebook in 2016 was, not surprisingly, multimedia. Check out these posts that made the biggest impact with you in the last year.

On October 17 – now recognized as End Poverty Day – Bangladeshi singer Habib Wahid unveiled a new song singing the praises of his country’s rapid progress in reducing poverty and building a prosperous society. Check out the video, and remember why you poured out your approval with more than 161,000 views, 65,000 reactions, and 4,600 shares!

 


Year in Review: 2016 in 12 Charts (and a video)

Tariq Khokhar's picture
Also available in: Español | Français | العربية | 中文

Between the social, political, and economic upheavals affecting our lives, and the violence and forced displacement making headlines, you’d be forgiven for feeling gloomy about 2016. A look at the data reveals some of the challenges we face but also the progress we’ve made toward a more peaceful, prosperous, and sustainable future. Here are 12 charts that help tell the stories of the year.

1.The number of refugees in the world increased.

At the start of 2016, 65 million people had been forcibly displaced from their homes, up from 60 million the year before. More than 21 million were classified as refugees. Outside of Sub-Saharan Africa, most refugees live in cities and towns, where they seek safety, better access to services, and job opportunities. A recent report on the "Forcibly Displaced" offers a new perspective on the role of development in helping refugees, internally displaced persons and host communities, working together with humanitarian partners. Among the initiatives is new financial assistance for countries such as Lebanon and Jordan that host large numbers of refugees.


Invigorating Africa’s climate resilient ocean economies

Benoît Bosquet's picture
Also available in: Français | العربية

© Andrea Borgarello for World Bank/TerrAfrica

We are all too aware that difficult times lie ahead for coastal communities.
 
Coastal erosion, especially in West Africa, has already displaced communities, with economic losses costing about 2.3% of GDP in Togo alone. In the past 60 years, sea temperatures in the Western Indian Ocean increased 0.6 C, triggering mass coral bleaching and deadly climate-related disasters across the region. The economic cost of the 1998 coral bleaching event to Zanzibar and Mombasa was in the tens of millions of dollars. The natural cost is still unknown. 

The next phase of forest action

Julia Bucknall's picture
Also available in: Español | Français
© Andrea Borgarello/World Bank
© Andrea Borgarello/World Bank


Last year, over 100 countries included actions related to land-use change and forests in their nationally determined contributions to fight climate change.

At the World Bank, we’re excited to be part of this next phase of forest action. In April 2016, we launched both a Forest Action Plan and Climate Change Action Plan which take a more holistic and ambitious approach to forests. We proposed to focus on investments in sustainable forest management and forest restoration to enhance economic opportunities for people living in and near forests, but also to help countries plan their investments in sectors such as agriculture, energy and transport in a more thoughtful, ‘forest-smart’ manner – to maximize the benefits of their forest assets.

The data revolution continues with the latest World Bank Innovation challenge

Marianne Fay's picture
Also available in: 中文

On September 22, 2016, we launched the World Bank Big Data Innovation Challenge – a global call for big data solutions for climate resilience and sustainable development.

As the world grows more connected--through mobile phones, social media, internet, satellites, ground sensors and machines—governments and economies need better ways to harness these data flows for insights toward targeted policies and actions that boost climate resilience, especially amongst the most vulnerable. To make this data more useful for development, we need more data innovations and innovative public-private arrangements for data collaboration.

The World Bank Big Data Innovation Challenge invites innovators across the world to reimagine climate resilience through big data solutions that address the nexus areas of food security and nutrition, and forests and watersheds – high priority areas of the World Bank’s Climate and Forest Action Plans and the UN Sustainable Development Goals.

Big data innovation – moving from ideas to implementation

Trevor Monroe's picture

If you want to do something fast, do something that has already been done. If you want to hardwire a data innovation into World Bank Operations, be prepared to involve others in a process of learning by doing.  – Holly Krambeck, Senior Transport Specialist, WBG



As the world grows more connected, data flows from a multitude of sources. Mobile networks, social media, satellites, grounds sensors, and machine-to-machine transactions are being used along with traditional data--like household surveys--to improve insights and actions toward global goals.
 
At the World Bank, a cadre of pioneering economists and sector specialists are putting big data in action. Big data sources are being harnessed to lead innovations like:

  • satellites to track rural electrification, to monitor crop yields and to predict poverty;
  • taxi GPS data to monitor traffic flows and congestion
  • mobile phone data for insights into human mobility and behavior, as well as infrastructure and socio-economic conditions 

How the World Bank helped Giant Pandas recover

Susan Shen's picture
Also available in: 中文



Recently, the IUCN World Conservation Union announced that the Giant Panda is no longer globally endangered with extinction, but has been “down-listed” to globally vulnerable. The Fourth National Survey (2011-2014) in China estimated the range-wide population as 1,864 adult Giant Pandas, and that at least one distinct population, in the Minshan Mountains, includes more than 400 mature individuals. National surveys indicate that the past trend of decline has stopped, and the panda population has started to increase. Forest protection and reforestation in China has increased forest cover over the past decade, leading to an 11.8% increase in forest occupied by pandas and a 6.3% increase in suitable forests that are not occupied, yet.  

E se pudéssemos ajudar as cidades a planejarem de forma eficaz um futuro com um nível mais baixo de carbono?

Stephen Hammer's picture
Also available in: Français | Español

Inglês | Chinês

Banco Mundial

Se a mudança do clima fosse um quebra-cabeça, as cidades seriam uma peça-chave bem no centro. Isso foi reforçado por mais de 100 países no mundo inteiro, destacando as cidades como elemento crítico de suas estratégias de redução da emissão de gases de efeito estufa (GHG) em seus planos climáticos nacionais (também conhecidos como Contribuições Intencionais Nacionalmente Determinadas/INDCs) apresentados à Convenção-Quadro das Nações Unidas sobre Mudança do Clima (UNFCCC) em 2015.

Desde a subsequente assinatura do Acordo de Paris, esses países mudaram de rumo e passaram a transformar seus planos climáticos em ações. E se, como muitos se perguntaram, pudéssemos encontrar uma forma econômica e eficiente para ajudar as cidades – tanto nos países em desenvolvimento quanto nos desenvolvidos – a adotarem um caminho de crescimento de baixo carbono?

#ItsPossible to End Poverty

Christine Montgomery's picture

Ending poverty is within our reach. The percentage of people living in extreme poverty has more than halved since 1990, thanks to the sustained efforts of countless individuals, organizations and nations. 

Show us how #ItsPossible.

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