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financial crisis

Interactive timeline highlights key financial crisis events

Sameer Vasta's picture

The World Bank Financial Crisis page now features an interactive financial crisis timeline that lets you see major events that have occurred during the crisis, as well Bank stories, reports, videos and photos that are related to the crisis.

Financial Crisis Timeline Screenshot

Also on the Financial Crisis page: videos from World Bank experts on the crisis, feature stories about the impact of the crisis, and a brief overview of the financial crisis and the Bank's work.

CSO forum kicks off

Angie Gentile's picture

October 2 2009. World Bank Annual Meetings. World Bank Presiden Robert B. Zoellick and IMF Managing Director Dominque Strauss-Kahn meet with CSO/NGO representatives. Archbishop Noungane of South Africa moderates. Photo credit: Simone D. McCourtie/World BankRepresentatives from civil society organizations around the world converged at the Istanbul Conference Center yesterday for a special Townhall meeting with World Bank President Robert Zoellick and IMF Managing Director Dominique Strauss-Kahn.

Just guestimating here, but I’d say there were about 300 CSOs in the room.

At the head of the table was moderator Archbishop Winston Njongonkulu Ndungane, who set the tone by noting how times have changed, with the World Bank and IMF engaging much more closely with CSOs these days.

The Archbishop posed three questions to inform the discussion: How can we work together to avoid another financial crisis? What can the Bank and Fund do to make sure the world doesn’t backslide? And how do shifts in power give those most affected by the crisis a chance to impact the response?

MENA: Economists finding some good news

Alison Schafer's picture

In Istanbul, World Bank economists taking a hard look at how the Middle East and North Africa (MENA) are weathering the financial crisis are finding some good news. The World Bank and the IMF are holding their annual meetings in Turkey, and a status update on the MENA region shows some resilience.

Shamshad Akhtar, the World Bank’s new vice president for the region, said at a press conference today that MENA’s economy grew by almost 6.2 percent in 2008. But Akhtar says the region has been shaken by what she calls the “Triple-F phenomena”—food, fuel and the financial crisis. She says the food crisis has hit the region hardest, in part because of a growing population and a heavy dependence on imported food. But, she says, despite slowing growth, down to 2.2 percent, the region is faring better than many others.

 

 

Akhtar told reporters: “The key message we retain from all this is: the MENA region has weathered the triple crisis well so far.” But there is an “immediate danger of rising unemployment and resurgence of poverty.”

Archbishop Ndungane: ‘We should be intentional about what CSOs are saying’

Angie Gentile's picture

Archbishop Winston Njongonkulu Ndungane, World Bank-IMF Annual Meetings, Istanbul. Photo credit: Simone D. McCourtie/World BankYesterday I caught up with the stately Archbishop Winston Njongonkulu Ndungane, who is attending the Civil Society Forum here in Istanbul. The Archbishop carved out some time to meet before heading off to head a CSO Townhall meeting featuring Bank President Zoellick and IMF Chief Strauss-Kahn.

Archbishop Ndungane is the founder and president of African Monitor, an independent pan-African nonprofit whose main objective is to monitor aid flows, what African governments do with the money, and what impact it has.

 African Monitor holds poverty hearings through which they seek to magnify voices. “We pride ourselves in having the confidence of people on the ground—the voice of people—and taking those voices to the corridors of power,” the Archbishop told me.

Archbishop Ndungane talked about linking up the creative and innovative minds of CSOs with the World Bank on today’s key issues—hunger, climate change, financial crisis. He emphasized the need to develop mechanisms for translating ideas into action.

Taking the temperature of the financial world

James Bond's picture

Global attention is mounting about this year's Annual Meetings of the Bank and the Fund in Turkey. From Egypt, where I am on MIGA business on my way to Turkey, the discussion is around whether the meetings will advance the G20 communiqué in terms of substance and specific implementation measures.

Traffic in Instanbul, Turkey. Photo: Simone D. McCourtie / World Bank I spent two days earlier in the week with global private equity investors. Their anxiety mostly revolves around how financial sector regulation will evolve over the coming months. They feel the cold wind of oversight, and the discussion revolves around two competing plans for financial regulation, one emanating from Brussels and the other from Washington. But everyone accepts that an overhaul of financial sector regulation is the unfinished business from last year's financial crisis, even though views differ on the extent and content of the changes needed. My own concerns are whether the world's piecemeal international governance system will enable a coherent global regulatory structure to emerge from the wreckage of last year's financial meltdown.

In Istanbul I'm looking forward to taking the temperature of the financial world. I hope and expect the meetings to be more subdued than in past years, because we have some serious business to do; and many players who were around at the Singapore meetings are no longer with us (Lehman, Bear Stearns, Merrill, AIG...).

It's a new world.

Ask your question and join the debate on 'What Now? The World Beyond the Crisis'

Nina Vucenik's picture

How should the world look after the global financial and economic crisis?

A special high-level panel will discuss the world post the global economic crisis on Friday, October 2, in Istanbul during the Annual Meetings.

The panel will feature Robert B. Zoellick, Bank Group President; H. E. Sri Mulyani Indrawati, Minister of Finance, Indonesia; H.E. Mahmoud Mohieldin, Minister of Investment, Egypt; Ms. Eleni Gabre-Madhin, CEO, Ethiopian Commodity Exchange; and Professor Paul Collier, Department of Economics, University of Oxford.

The debate will be recorded on Friday, October 2, and will be broadcast over the next two days on France 24.

The panel is taking questions from people from around the world. If you have any questions for the panelists, you can ask them directly through Speak Out, our online chat, and we will pass them on.

 

After the Crisis—World Bank President lays out vision for new global system

Angie Gentile's picture

Zoellick SAIS speech, After the CrisisOn the eve of the 2009 World Bank-IMF Annual Meetings, Bank President Robert Zoellick called on world leaders to reshape the multilateral system and forge a “responsible globalization”—one that would encourage balanced global growth and financial stability, embrace global efforts to counter climate change, and advance opportunity for the poorest.

“Coming out of this crisis, we have an opportunity to reshape our policies, architecture, and institutions,” Zoellick said, speaking at the DC-based Paul H. Nitze School of Advanced International Studies of the Johns Hopkins University.

“As agreed in Pittsburgh last week, the G-20 should become the premier forum for international economic cooperation among the advanced industrialized countries and rising powers. But it cannot be a stand-alone committee,” the Bank’s president noted.

In a speech laden with historical references, he spoke of the legacy of institutions established to deal with the global economy some 60 years ago and how the economic crisis is contributing to a changing multilateral global architecture.

"Bretton Woods is being overhauled before our eyes," Zoellick said.

The crisis has underscored the growing importance of the large emerging economies. “The current assumption is that the post-crisis political economy will reflect the rising influence of China, probably of India, and of other large emerging economies,” Zoellick said. “[T]he Greenback’s fortunes will depend heavily on U.S. choices.”

2009 Annual Meetings to focus on road to recovery

Nina Vucenik's picture

2009 Annual Meetings

Every fall, Governors of the World Bank Group and the IMF meet to discuss progress on the work of the two institutions. The joint World Bank-IMF Development Committee and the International Monetary and Financial Committee are also convened.

This year’s meetings will focus on the impact of the financial crisis and the ensuing global recession on developing countries, as well as solutions to help countries hit hard by the downturns in capital flows, trade, remittances, and tourism.

Governors are expected to discuss the Bank’s financial capacity as it continues to meet the demand from countries coping with the crisis. In fiscal year 2009, the Bank Group committed nearly $60 billion to help developing countries, which marked a 54 percent increase over the previous year and was a record high.

Other issues on the agenda include the impact of climate change on developing countries and the World Bank's role, against the backdrop of the upcoming climate change negotiations in Copenhagen. Climate change complicates efforts to reduce poverty in developing countries, but a “climate smart” world is possible if we act now, act together, and act differently, according to the latest World Development Report.

Governors are expected to reflect on the results of IDA15 to date. The International Development Association (IDA) is part of the World Bank that provides grants and no-interest loans to the poor countries. A mid-term review of IDA15 gets underway in November.

African ministers address financial crisis

Sameer Vasta's picture

At a recent press conference, three African finance chiefs chastised international credit rating agencies for failing to forecast the global financial crisis and challenged international financial institutions to do a better job of monitoring the global economy and of holding rich and developing countries accountable in the same way.

The Ministers from Zambia, Cote d’Ivoire and Tanzania spoke about the crisis and its effect on Africa. Mustafa Mkulo, Tanzania’s Minister for Finance and Economic Affairs, said:

"This crisis has come when African governments have taken broad based measures to reform their economies, followed by significant achievements. It is now threatening to wipe out our gains of the past ten years and disrupt all our plans for further progress."

More information:

World Bank Group and development partners team up on infrastructure investment

Angie Gentile's picture

Flanked by the finance and development ministers of France and Germany, World Bank Group President Robert B. Zoellick launched two initiatives today that together are expected to mobilize more than $55 billion in financing for infrastructure projects over the next three years.

The multibillion dollar initiatives—the Infrastructure Recovery and Assets (INFRA) platform and Infrastructure Crisis Facility—were created to address the falloff in funding for the construction of roads, water systems, power generation and distribution, and other critical infrastructure.

There is no doubt infrastructure plays a huge role in economic growth and development, Zoellick said.

“In this crisis, we will need more and more to identify creative ways to mobilize additional financing. This facility sends an important market signal,” encouraging the private sector to continue infrastructure investment and development.

April 25, 2009 - Washington DC. World Bank/IMF Spring Meetings 2009. (l-r) Christine Lagarde, Minister of Finance, France; Roger Morier, World Bank; Robert B. Zoellick, World Bank President; Hannfried von Hindenburg, IFC; Heidemarie Wieczorek-Zeul, Development Minister, Germany. Credit: Simone McCourtie, World Bank

France and Germany became the first to sign on to the Infrastructure Crisis Facility with commitments of about $660 million through German development bank KfW and roughly $1.3 billion through French development bank Proparco.

INFRA is designed to help countries offset the negative effects of the financial crisis on their infrastructure services and investment programs, with up to $45 billion available over the next three years. Assistance will be global, but Africa is expected to see a large share of the funding.

The Infrastructure Crisis Facility, administered by IFC, a private sector branch of the Bank Group, is expected to attract more than $10 billion to help bridge the infrastructure financing gap.

At today’s signing, German Development Minister Heidemarie Wieczorek-Zeul appealed to industrialized countries to support the initiative and take into account the situation in developingFrench Finance Minister Christine Lagarde countries. “They’re not responsible for the crisis. We have a special responsibility to be at their side.”

French Finance Minister Christine Lagarde added: This is a time “when we can put our money where our mouth is and commit to deliver…I think the World Bank has done an outstanding job dealing with issues that are difficult. This is a good illustration of how projects should be conducted. They should be focused where they can actually make a difference.”

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On a related note, I caught up earlier today with the Bank’s director for energy, transport and water, Jamal Saghir, who said the Bank’s Board has approved $9 billion in infrastructure projects already this fiscal year. That puts the Bank 47 percent ahead of the amount of infrastructure funding approved this time last year.

Saghir gave a shout-out to staff, who he credited with working hard to speed up project implementation to respond to the crisis.

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