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.”
The Lebanese are generous people – that was clear to me when I visited an elementary school in Beirut attended by many Syrian children who fled their war-torn nation with their parents. The children greeted me warmly and told me that Lebanon was very similar to Syria, but that they really missed their homes. It’s inspiring to see how the Lebanese have opened up their doors, their schools, their health clinics, and their communities for more than 1 million Syrian refugees.
There’s been a lot of talk about food riots in the wake of the international food price hikes in 2007. Given the deaths and injuries caused by many of these episodes, this attention is fully justified. It is quite likely that we will experience more food riots in the foreseeable future—that is, if the world continues to have high and volatile food prices. We cannot expect food riots to disappear in a world in which unpredictable weather is on the rise; panic trade interventions are a relatively easy option for troubled governments under pressure; and food-related humanitarian disasters continue to occur.
In today’s world, food price shocks have repeatedly led to spontaneous—typically urban—sociopolitical instability. Yet, not all violent episodes are spontaneous: for example, long-term and growing competition over land and water are also known to cause unrest. If we add poverty and rampant disparities, preexisting grievances, and lack of adequate social safety nets, we end up with a mix that closely links food insecurity and conflict. The list of these types of violent episodes is certainly long: you can find examples in countries such as Argentina, Cameroon, Pakistan, Somalia, Sudan, and Tunisia showcased in May’s Food Price Watch.
The challenge of moving from conflict and fragility to resilience and growth is immense. More than half of the countries counted as low income have experienced conflict in the last decade. Twenty per cent of countries emerging from civil conflict return to violence in one year and 40% in five years.
While the use and production of reliable evidence has become more common in much of the international development debate and in many developing countries, these inroads are less prevalent in fragile and conflict-affected situations (FCS). Programming and policy making in countries affected by conflict and prone to conflict is often void of rigorous evidence or reliable data. It is easy to argue, and many do, that it is impossible to conduct rigorous evaluations of programs in conflict-affected states. However, in spite of the very real challenges in these environments, such evaluations have been conducted and have contributed valuable evidence for future programming, for example in Afghanistan, the DRC, Colombia, northern Nigeria and Liberia.
My unit Center for Conflict Security and Development, (CCSD) is teaming up with the Department of Impact Evaluation (DIME), as well as the International Initiative for Impact Evaluation (3ie), and Innovations for Poverty Action (IPA), in a series of activities to enhance the evidence base on development approaches to peace- and state-building challenges. A first goal is to scope out where our evidence base is thinnest: what are the programs and interventions that remain least tested, but have theories of change suggesting great potential? We are hoping to take stock of what we and other donor institutions have been doing in this area of development, and map this into what we have learnt and what we most need to learn more about. USIP, USAID, IRC as well as leading academics in this field and IEG, are kindly helping in this endeavor, and we hope to be able to share some initial findings at our fragility forum later this year.
Each month, about one million people enter the labor force in Africa. Another one million start looking for work in India. Add to this millions of others around the globe, and worldwide, some one billion people will enter the labor force between now and 2030.
Why is that date important? That’s the deadline World Bank Group President Jim Kim has set for ending extreme poverty and boosting shared prosperity. Making this happen will require not only a healthy and skilled labor force, but also requires creating ample job opportunities, and ensuring that young adults can find productive work.
The World Bank Group is searching internally and globally for 18 experienced and driven professionals to help achieve two ambitious goals: reducing the number of people living on less than $1.25 a day to 3% by 2030 and promoting shared prosperity by fostering the income growth of the bottom 40%. These leaders will be crucial to our plan to improve the way we work, so we can deploy the best skills and expertise to our clients everywhere, to help tackle the most difficult development challenges around the world.
Last month, the Bank Group’s member countries endorsed our new strategy which for the first time leverages the combined strength of the WBG institutions and their unique ability to partner with the public and private sectors to deliver development solutions backed by finance, world class knowledge and convening services.
Instrumental to the success of our strategy is the establishment of Global Practices and Cross-Cutting Solution Areas, which will bring all technical staff together, making it possible for us to expand our knowledge and better connect global and local expertise for transformational impact. Our ultimate goal is to deploy the best skills and expertise to our clients at the right time, and become the leading partner for complex development solutions.
We are accepting applications for the Global Practice senior directors who will lead these pools of specialists in the following areas: Agriculture; Education; Energy and Extractives; Environment and Natural Resources; Finance and Markets; Governance; Health, Nutrition, and Population; Macroeconomics and Fiscal Management; Poverty; Social Protection and Labor; Trade and Competitiveness; Transport and Information Technology; Urban, Rural, and Social Development; and Water.
- Public private partnership
- fiscal management
- Rural Development
- disaster risk management
- health nutrition and population
- Natural Resources Management
- global practices
- Urban Development
- Social Development
- Public Sector and Governance
- Labor and Social Protection
- Information and Communication Technologies
- Financial Sector
- Agriculture and Rural Development
- Macroeconomists for the Poor
At least 80% of countries considered fragile or affected by conflict are home to valuable extractive resources that the global economy hungers for. Earth’s riches like oil, gas, and minerals often fuel conflict, trapping all but the elites in poverty amid vast wealth.
A high-level panel of industry experts and representatives from CSOs and resource-rich nations weighed in today on the challenges that define poverty or prosperity in a fragile country.
Fragile states endowed with natural resources have the chance to benefit from their transformational impact, said Sri Mulyani Indrawati, managing director and chief operating officer of the World Bank Group. "Success can mean stability and development, and failure can mean aid dependency,” she said.
Indrawati underscored the need to get things right — alluding to the recurrent discussion regarding the “resource curse.” “Our focus is on transparency, governance, and strengthening country capacity,” she said.
On transparency, panelist Clare Short, chair of the Extractives Industries Transparency Initiative, an international standard that ensures transparency around countries’ oil, gas and mineral resources, acknowledged that extractive resources “are very difficult to manage.”
The Group of 20 leaders met for an intense 24-hour period over two days, discussing the situation in Syria and the global economy. Watch this video blog to hear what World Bank Group President Jim Yong Kim thought shouldn't be forgotten in these important discussions.
The recent political unrest and violence occurring across the world have revived an old question, one that is so straightforward that it rarely gets a straightforward and convincing answer: Does democracy fuel or quench violence? For decades, sociologists, historians, political scientists, criminologists, and economists have hypothesized numerous associations, predicting just about any result.
Let’s focus on democracy’s relationship with crime. Democracies have been predicted to fuel crime (conflict theory); decrease crime (civilization theory); initially raise and then decrease crime (modernization perspective); have no impact at all (null hypothesis); or have an unpredictable impact depending on the development of their political institutions (comparative advantage theory).
In a recently published paper, I argue that the many existing explanations relating crime and democracy suffer from what I describe as an “identification” problem. The different explanations are not necessarily exclusionary in terms of their determinants, mechanisms, and predictions, which makes testing those explanations a rather difficult business. Furthermore, predictions are imprecise. This is unsurprising when dealing with concepts as fluid as democratization, political transitions, and democratic maturity. Arguments talk vaguely of early and late stages and of short or medium terms to describe the processes’ dynamics. The result is a broad range of predictions consistent with various hypotheses simultaneously.
KINSHASA, Democratic Republic of Congo — For too long the people of the Great Lakes region of Africa have suffered from conflict and insecurity. We need to bring peace, security, and development to the region with great urgency to build on an 11-country peace framework arrangement. I am joining with U.N. Secretary-General Ban Ki-moon on a historic trip to the region — the first ever taken together to Africa by the heads of our organizations. Watch the video of my crossing the Congo River, from Brazzaville to Kinshasa, at the very beginning of the trip.