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Inclusive Green Growth Is Smart Growth, as South Korea Is Proving

Rachel Kyte's picture

One of Asia’s fastest growing economies in the last 40 years, South Korea, has emerged as a manufacturing powerhouse that has virtually eliminated poverty.  Its resilient economy survived the 2008–2009 financial crises better than almost any other country, but it is far from complacent.  Korea spends a bigger percentage of GDP on research and development than Germany, the UK and the US.

Today, Korea is a global champion of green growth with a long-term plan for transitioning to green growth and a focus on exporting green tech, and it is moving away from energy imports and energy-intensive industries.  Korea’s journey is not complete, but its progress stands as an inspiration to developing countries wherever they are in theirs.

At the second Global Green Growth Summit, in Seoul on Thursday, President Lee Myung-bak reinforced Korea’s commitment to playing a leadership role on the global stage, restating Korea’s commitment to increasing official development assistance through to 2020 and announcing that 30 percent of that ODA will be green.

Launching our report in Seoul was an excellent opportunity to further strengthen our partnership with Korea and expand our inclusive green growth knowledge base.

Innovative Approaches Urgently Needed to Deliver Energy to Urban Poor

Nicholas Keyes's picture

Back in 2004, the electrical utility in Brazil’s biggest city had a major problem. AES Eletropaulo was losing a large proportion of its revenue due to almost half-a-million illegal connections, most of them in São Paolo’s slums. Not only that, but they were causing often multiple-house fires on a monthly basis, along with frequent electrocutions.  But the utility’s efforts to fix the problem were stymied by its poor relations with slum-dwellers, which made it almost impossible to work in these communities.

AES Electropaulo decided to shift course and made a concerted effort to open a dialogue with São Paolo’s urban poor. New credit instruments were extended to poor families, and campaigns conducted on smart energy consumption and the benefits of safe connections. The breakthrough came with AES Eletropaulo’s decision to train large numbers of local agents who conducted door-to-door outreach to households in slum areas to listen to their comments and concerns. In the process, new safe, efficient connections were extended to 1.4 million households across the vast metropolis.

AES Electropaulo’s effort is just one example of the approaches being taken by countries around the world to meet one of the world’s greatest development challenges:  delivery of modern energy services to the urban poor. 

‘Simplicity’ Key to Results-Based Aid & Financing

Christopher Neal's picture

“Results-based approaches” (RBAs) to development financing have mushroomed in recent years, partly due to tighter aid budgets, but more in response to a consensus that has emerged at development effectiveness forums in Rome, Paris, Accra and Busan.

RBAs have been adopted in numerous health and water projects, where expansion of access to a service—typically an immunization, an attended birth, a water connection—is the key indicator.

But RBAs are more scarce in the energy sector.

Why? Is the energy sector too complex? Are energy business models too diverse? Is there a results-based model that could work in the energy sector?

Moving the Needle on Healthier Environments and Sustainable Development

Rachel Kyte's picture

Over the past few days of the World Bank/IMF spring meetings, it’s been exciting to see just how much interest and real commitment there is among the world’s finance ministers to move toward inclusive green growth and sustainable development.

Several finance ministers at the Rio breakfast with Ban Ki-moon, Bob Zoellick, and Christine Lagarde talked about the need for better national wealth measurements that incorporate natural resources. Some were already implementing new forms of natural capital accounting. Others wanted to know more.

They were absolutely clear about two things: They want better methodology, data, and evidence to help guide them on the path to sustainable development, and they see a clear role for the World Bank as a source of that knowledge.

Leaders of UN, World Bank, IMF Discussing Sustainable Development with Finance Ministers

Rachel Kyte's picture

This year, the World Bank’s spring meetings are offering a rare opportunity for the heads of the United Nations, the World Bank Group, and the IMF to jointly talk to finance ministers from around the world about the critical importance of inclusive green growth and careful stewardship of the Earth’s natural resources.

The venue is a breakfast meeting this morning with over 30 national finance ministers. The meeting will be private – and powerful. We’re hoping for an open and frank discussion among ministers on how to achieve concrete outcomes at the UN Conference on Sustainable Development, Rio+20, in June.

Getting to Sustainable Development, Inclusively and Efficiently

Rachel Kyte's picture

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Sustainable development is built on the triple bottom line: economic growth, environmental stewardship, and social development - or prosperity, planet, people. Without careful attention to all three, we cannot create a sustainable world.

In the 25 years since sustainable development was coined as a term, there has been progress, but the pathway to sustainable development must now be more inclusive green growth.

Bank Spring Meetings highlight solutions to food crisis, conflict

Julia Ross's picture

Photo: Simone D. McCourtie / World Bank

The World Bank-IMF Spring Meetings concluded Sunday, having brought renewed attention to the impact of the food crisis, challenges facing conflict-affected states, and progress toward the Millennium Development Goals, among other issues.

In case you missed one of the many announcements or discussions held over the last two weeks, here are a few highlights:

What would it take to transform Africa's energy sector?

Jamal Saghir's picture

What would it take to transform Africa’s energy sector? This is the question we grappled with in a discussion on Friday with Energy and Finance ministers from across Africa. The discussion was part of a standing-room only event that took place during World Bank-IMF Spring Meetings. The discussion could have gone much longer than the scheduled two hours; this is because so many of us feel so strongly about Africa's energy situation.

Bangladesh: Mapping climate change and food security

Sarah Holmberg's picture

In a blog post by Molly Norris and Joshua Powell for the End Poverty in South Asia blog, they talk about Bangladesh as "ground zero" at the intersection of climate change and food security.

"The country is widely recognized as one of the places most vulnerable to the effects of a changing climate, which strains food systems alongside rapidly growing and urbanizing populations. Yet, despite these dual challenges, the World Bank expects Bangladesh will meet its Millennium Development Goal (MDG) of halving the number of people living in extreme poverty by 2015," they write.

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Africa’s infrastructure: closing the 'efficiency gap'

Angie Gentile's picture

Rural water pump near Ulundi, South Africa. Photo: Trevor Samson/World Bank African countries lag behind their developing country counterparts on infrastructure, and the gaps are only widening over time. One of today’s keynote panels took a deep look at ways to close that gap.

Instead of defaulting to a call for more money, panelists talked about what’s impeding effective use of funds, both public and private, that are made available for infrastructure development on the continent.

To put the conversation into context, here are a few key stats:

  • Africa needs $93 billion a year to catch up with its huge infrastructure backlog over the next decade—an amount that represents more than 35 percent of GDP for fragile states.
  • Current spending on African infrastructure is higher than previously thought, at $45 billion.
  • An estimated cost savings of $17 billion—the so-called “efficiency gap”—could be achieved if existing resources were used more efficiently.

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