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Governance

Well-regulated financial technology boosts inclusion, fights cyber crime

Joaquim Levy's picture
Also available in: العربية | Español | Français

Luceildes Fernandes Maciel is a beneficiary of the Bolsa Família program in Brazil. © Sergio Amaral/Ministério do Desenvolvimento Social e Agrário

Financial technology — or FinTech — is changing the financial sector on a global scale. It is also enabling the expansion of financial services to low-income families who have been unable to afford or access them. The possibilities and impact are vast, as is the potential to improve lives in developing countries.

The financial sector is beginning to operate differently; there are new ways to collect, process, and use information, which is the main currency in this sector. A completely new set of players is entering the business. All areas of finance — including payments and infrastructure, consumer and SME credit, and insurance — are thus changing.

My advice for future policymakers: See the public’s success as your success

Sri Mulyani Indrawati's picture
Also available in: Français | Español | العربية

Students line up to wash their hands before eating at Kanda Estate Primary School in Accra, Ghana. © Dominic Chavez/World Bank

The most important word in "public policy" is "public" — the people affected by the choices of policymakers.

But who are these people? And what do they care most about? Policies evolve as the concerns of generations change over time. Regardless of whether you are generation X, Y, or Z, people want the same things: prosperity and dignity, equality of opportunity, justice and security.

How we’re fighting conflict and fragility where poverty is deepest

Sri Mulyani Indrawati's picture
Also available in: العربية | Français | Español

View from cave, Mali. © Curt Carnemark/World Bank

For the first time in history, the number of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030:
good governance, gender equality, conflict and fragility, creating jobs, and, finally, preventing and adapting to climate change.
 
By 2030, more than half of the world’s poorest people will live in very poor countries that are fragile, affected by conflict, or experience high levels of violence
 
These are places where governments cannot adequately provide even basic services and security, where economic activity is paralyzed and where development is the most difficult.  It is also where poverty is deepest. The problems these countries face don’t respect borders. About half of the world’s 20 million refugees are from poor countries. Many more are displaced within their own country.

The way out of poverty and corruption is paved with good governance

Sri Mulyani Indrawati's picture
Also available in: Español | العربية | Français

Woman speaks to World Bank MD and COO Sri Mulyani Indrawati in the Nyabithu District of Rwanda. © Simone D. McCourtie/World Bank

For the first time in history, the number of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030: good governance, gender equality, conflict and fragility, creating jobs, and, finally, preventing and adapting to climate change.


Twenty years ago, the World Bank took up the fight against corruption as an integral part of reducing poverty, hunger, and disease. The decision was groundbreaking then and remains valid today. Corruption diverts resources from the poor to the rich, leads to a culture of bribes, and distorts public expenditures, deterring foreign investors and hampering economic growth.

Panama Papers underscore need for fair tax systems

Sri Mulyani Indrawati's picture

High-rises and hotel buildings in Panama City, Panama. © Gerardo Pesantez/World Bank

The so-called “Panama Papers” scandal reminds us that concealing wealth and avoiding tax payments is neither uncommon nor — in many cases — illegal. But the embarrassing leak exposes something else: The public trust is breached when companies, the rich and the powerful can hide their money without breaking the law. If this breach is left unaddressed, those who aren’t rich enough to hide money will be less willing to pay and contribute to the social contract in which taxes are exchanged for quality services.

As finance minister in my home country of Indonesia, I saw firsthand how a weak tax system eroded public trust and enabled crony capitalism. Shadow markets arose for highly subsidized fuel, family connections secured jobs, and bribes helped public servants beef up their salaries. Tax avoidance among the elites was common and the country couldn’t mobilize the resources we needed to build infrastructure, create jobs, and fight poverty.

Supporting land rights helps us build stronger, more prosperous communities

Ede Ijjasz-Vasquez's picture
Land is an incredibly valuable asset that represents many different things. Land is, first and foremost, a place to call home. For many, it also serves as a critical means of production that they depend on for their livelihoods. Finally, land is inextricably linked to a community's history and culture.
 
Yet, as important as land ownership may be, 70% of the world's population still lacks access to proper land titling or demarcation. This carries a host of negative consequences: when people have to live with the constant threat of potential eviction, they are more likely to remain or become poor, and cannot invest in their land with confidence.
 
Conversely, stronger land rights can be a powerful tool for economic development and poverty reduction. That is why the World Bank is working with client countries to build legal and institutional frameworks that effectively protect land tenure - including for vulnerable groups such as women and indigenous peoples.
 
In this video, World Bank Practice Manager Jorge Muñoz describes in greater depth how the institution is bolstering land tenure around the world as part of its mission to eliminate poverty and boost shared prosperity.

Now's the time to make value-based property taxation happen in Europe and Central Asia

Mika-Petteri Torhonen's picture
Photo: Kyrgyz Republic – Mika Torhonen
The World Bank has supported land reform, land administration, and land management projects in 24 countries in the Europe and Central Asia region (ECA) since the 1991 dissolution of the Soviet Union and Central European socialist countries. This has been a period of catalyzed, unprecedented political, economic, and social changes and also a remarkable success story in creating private property rights, and developing land registration and cadastre systems. The results are becoming visible. According to the 2016 Doing Business Index, 7 of the 10 best- performing property registers are found in ECA countries. It is time to think next steps and how to best utilize these data repositories for development.

From football to fighting poverty: A shout-out for good governance

Sri Mulyani Indrawati's picture
Also available in: 中文 | العربية | Español | Français
Children playing football in Timor-Leste. © Alex Baluyut/World Bank


​The investigation, indictment, and arrest of several FIFA officials sends a simple and powerful message: No matter how untouchable an entity seems to be, in today’s world no organization, company, or government is immune from public scrutiny and law enforcement when it comes to allegations of fraud and corruption. Tolerating corruption as a “cost of doing business” is quickly going out of fashion.

The World Bank works hard to tilt the equation in favor of clean business in its fight against poverty. We investigate and hold perpetrators accountable when we receive allegations of wrongdoing in projects. Since we began this work, we have sanctioned more than 700 firms and individuals for misconduct in our projects. Most of these sanctions involve some form of debarment, rendering persons and firms ineligible to bid on future Bank-financed contracts. We recently released an updated review of our experience in investigating and adjudicating fraud and corruption cases, and it shows that it’s possible to tackle corruption in a way that is efficient, effective and fair. 

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