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Poverty

Economists weigh in on oil prices and an uneven global recovery

Donna Barne's picture
Also available in: Español | Français | العربية | 中文
World Bank chief economists, clockwise from upper left: Senior Vice President and Chief Economist Kaushik Basu, Augusto de la Torre (Latin America and the Caribbean), Shanta Devarajan (Middle East and North Africa), Francisco Ferreira (Sub-Saharan Africa), Sudhir Shetty (East Asia and Pacific), Hans Timmer (Europe and Central Asia), Martin Rama (South Asia).


​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.”

Faith, the World Bank Group, and Ending Poverty

Donna Barne's picture
Also available in: Français | Español | العربية
More than 30 leaders of faith-based organizations expressed support for ending extreme poverty by 2030.


The World Bank Group and faith-based organizations share something in common – fighting poverty. Now, they’re joining forces to do it. More than 30 leaders representing Bahai, Buddhist, Christian, Hindu, Jewish, Muslim, and Sikh organizations formally expressed support for ending extreme poverty by 2030 – a goal backed by the World Bank Group’s 188 member countries.

Their joint statement, “Ending Extreme Poverty: A Moral and Spiritual Imperative,” released April 9, called for an end to the “scandal of extreme poverty” and said they would use their “voices to compel and challenge others to join us in this urgent cause inspired by our deepest spiritual values.” They added they would commit to hold “all levels of leadership accountable – public and private, domestic and international.”

Five reasons to act now to #endpollution

Paula Caballero's picture
Did you know that about 3.7 million people worldwide died in 2012 from diseases related to ambient air pollution? That is nearly the population of the city of Los Angeles expiring every year from preventable causes.

When you combine death-by-smog with deaths related to exposure to dirty indoor air, contaminated land and unsafe water, the grand total of deaths from all pollution sources climbs to almost 9 million deaths each year worldwide. That’s more than 1 in 7 deaths and makes pollution deadlier than malnutrition.
 
Photo via Shutterstock


This fact deserves to be better known, as there are ready solutions. Inaction is not an option.

 

What is the secret of success in social inclusion? An example from Himachal Pradesh

Soumya Kapoor Mehta's picture
 
We started with a standard warm-up question as Gangi Devi, our first respondent, sat in anticipation. “Tell me a little bit about your society. What is distinctive about the Himachali way of life?” A smile lined up a face creased otherwise with wrinkles. “We are a peaceful society,” she said after thinking a little. “People here are good to one another, we stand by each other.” A person sitting next to her added for good measure, “We Himachalis are very innocent people.”
 
For those working in the development space in India, the state of  Himachal Pradesh, a small state ensconced in the Himalayas with a population of 7 million, is an outlier for many reasons, not least of which is Gangi Devi’s near puritan response.
 
Gangi Devi lives near a tourist centre close to Shimla, the state capital, which has seen increasing tourist footfall in recent years. Even as her community is debating the costs and benefits of increased activity around their village, Gangi Devi and her neighbours trust that the state government would keep people’s interests in mind and address adverse impacts, if any, of increased tourism on the environment.
 
Their belief in the government is supported by real actions. Himachal Pradesh is the first state in India to ban the use of plastic bags. Smoking in public spaces in the city of Shimla is punishable by law.
 
Governance in Himachal Pradesh looks doubly impressive when considered against an enviable development record

Lessons on Forests from Brazil to Ethiopia and Mozambique

André Rodrigues de Aquino's picture
Photo by Andrea Aquino / World Bank​Can Ethiopia and Mozambique learn a lesson from Brazil on harnessing forests sustainably for economic growth?
 
Thanks to a recent knowledge exchange program, yes!
 
As we can all imagine, Africa’s lush greenery and planted forests offer huge potential but the sector’s expansion faces major barriers like access to land, lack of access to affordable long-term finance and weak prioritization of the sector.
 
Take Ethiopia, for example. About 66.5 million cubic meters of the country (46% of total wood-fuel demand) is subject to non-sustainable extraction from natural forest, wood- and scrublands, resulting in deforestation and land degradation. In Mozambique, charcoal is still produced from native forests, leading to immense pressure on natural resources, and way beyond its regeneration capacity. Both countries want to know how the forest sector can contribute to their national development plans and help grow their economies and reduce rural poverty, while being environmentally sustainable.
 
This topic is of even more importance as we celebrate the International Day of Forests on March 21, and helps us raise awareness on the need to preserve forests and use this natural wealth in a responsible and sustainable manner.

WorldPop's high-resolution mapping: the first ingredient for success in development projects

Tatiana Peralta Quiros's picture
Follow the author on Twitter: @tatipq
 

 
Modeled 2012 population in Guatemala at a spatial resolution of 100 m2
People are at the center of all development work: whether we act to prevent and address disasters, protect vulnerable communities, finance projects in infrastructure, education or health, our ultimate goal is always to serve people. Being able to identify, understand and locate beneficiaries as accurately as possible is an essential first step in that process, and the only way to make sure we provide services to those who need it most with maximum impact.

Inside the World Bank, the number of people passionate about using spatial data for development speaks to the relevance of spatial datasets in supporting critical decision making. In an effort to use spatial data more strategically, we recently conducted an informal poll among several Bank units and some partner institutions to find out what types of spatial data are most relevant to development professionals.

This survey found that the spatial distribution of the population was a key data layer needed by Bank staff. The results of the survey showed that that while national level data are useful, subnational detail on administrative boundaries, trade & transport infrastructure, population distribution and socio-economic data down to the city level are just as critical to the majority of respondents.

Why poaching is not “a poverty problem”

Valerie Hickey's picture
Also available in: Français | Español

The World Bank’s vision is a world free of poverty. As this statement suggests, it is rare that we tackle a problem that is not grounded in poverty. Today, on World Wildlife Day, it is our imperative to draw attention to one such issue, an issue that does not stem from poverty but rather comes from greed and neglect. Today, we take on poaching.
 


The illegal capture and killing of wildlife takes place primarily in developing countries but it is not an issue born out of poverty. The criminological community has disproved the notion that poverty causes crime and found rather that many crimes are opportunistic. In the absence of poverty, crime lives on. This is true of wildlife crime as well, as discussed by World Wildlife Fund experts in a recent interview.

Recent Floods in Malawi Hit the Poorest Areas: What This Implies

Stéphane Hallegatte's picture
 
Malawi flood map 2015


By Stéphane Hallegatte, Mook Bangalore, and Francis Samson Nkoka

Malawi is no stranger to significant flooding. In January 2012, floods affected more than 10,000 people and caused US$3 million worth of damage to households and infrastructure. But this year’s floods are much larger in magnitude, even unprecedented.

Beginning in early January, heavy rains triggered significant flooding in the southern and eastern districts of the country. The districts which experienced the largest impacts include Nsanje and Chikwawa in the south and Phalombe and Zomba in the east. So far, the flooding has affected more than 600,000 people, displaced over 170,000, and damaged agricultural crops covering more than 60,000 hectares.

While aggregate numbers and economic cost indicate the seriousness of the event, it is critical to look at exactly who is affected in the country. We have found that the poorest are on the front line.

Will cheap oil lead to cheap food?

Juergen Voegele's picture
Also available in: 中文

The halving of world oil prices over the last six months raises questions about the implications for food prices and the welfare of poor people.
 
Do lower oil prices mean lower food prices? To a certain extent. But for low-energy cropping systems common in most developing countries, and in areas where food is not transported far, the impact will be dampened. For large oil exporters, however, food prices may increase. In general, lower oil prices should lower the cost of moving food from producers to consumers and reduce on-farm fuel and fertilizer costs. But a countervailing factor is that cheap oil may also induce people to drive more, and as fuel ethanol mandates link biofuel use to overall fuel use, ethanol use and the volume of maize used to produce it would also go up. In countries where oil is a large share of exports, real exchange rates may depreciate, which will disproportionately increase the price of traded goods like grains relative to other prices.
 
Is the downturn in agriculture commodity prices necessarily bad for farmers who produce food? A major downturn in commodity prices would not be great for farm incomes, and high crop yields would be needed to help dampen the effect on farm profits.  Lower fertilizer and transport costs may help mitigate any negative impacts.
 
How long will oil prices remain low? While there is no certainty in forecasts, current estimates suggest fuel prices will remain low for 2015, increasingly slightly in 2016. There are three main drivers of the oil price decline which are structural: Significant increases in US shale oil production, receding concerns of oil supply disruptions in the Middle East, and a change in OPEC policy to maintain rather than cut production.

#BestOf2014: Six Popular Environmental Stories You Shouldn’t Miss

Andy Shuai Liu's picture
As we get ready to kick off the new year, let’s recount the voices and stories about how we can enhance the way we interact with our planet. From Ethiopia to Indonesia, we’ve seen our efforts improve lives and help incomes grow as countries and communities strive for greener landscapes, healthier oceans and cleaner air.
 
Take a look back at some of the most popular stories you may have missed in 2014:
 
1. Raising More Fish to Meet Rising DemandPhoto by Nathan Jones via Flickr CC BY-NC 2.0

Aquaculture is on the rise to help feed a growing population. New #Fish2030 report: http://t.co/0fbH4fLDJO http://t.co/Lm5eHsGZaR

— World Bank (@WorldBank) February 6, 2014

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