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Public Sector and Governance

Taxing tobacco and the new vision for financing development

Patricio V. Marquez's picture

As part of the 2016 World Bank Group-International Monetary Fund Spring Meetings held this past week in Washington, D.C., a fascinating panel discussion, A New Vision for Financing Development, took place on Sunday, April 17. Moderated by Michelle Fleury, BBC's New York business correspondent, it included World Bank Group President Jim Yong KimBill Gates, Justine Greening (UK Secretary of State for International Development), Raghuram Rajan (Governor of the Reserve Bank of India), and Seth Terkper (Minister for Finance and Economic Planning of Ghana).
A construction worker takes a break in Timor-Leste. © Alex Baluyut/World Bank The panel was in consensus about the current challenging economic and social environment facing the world as a whole.  That environment includes low rates of economic growth across the world, drastic reductions in the price of commodities that are impacting negatively low-and middle-income countries, rising inequality, frequent natural disasters and pandemics, increased number of displaced populations and refugees due to conflict and violence spilling across national borders and continents, and the ambitious United Nations 2030 Agenda for Sustainable Development, which includes a set of 17 Sustainable Development Goals (SDGs). A question debated in the panel was, Where will the resources be found to address these challenges? This question is critical under the current scenario if countries are to continue to build on the progress achieved over the last decade and maintain previous gains.

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.

An office on four wheels brings land administration services to isolated populations

Victoria Stanley's picture
 State Committee on Property Issues of Azerbaijan Republic
Photo: State Committee on Property Issues of Azerbaijan Republic
I recently had the opportunity to see the mobile offices run by the State Service for the Registration of Real Estate (SSRRE) of the Republic of Azerbaijan.  These mobile offices provide the same services any citizen can receive in a physical SSRRE office, but they literally come to you.

Property registration is a very important activity in Azerbaijan which has transformed from a planned economy to a market economy over the past decade. For most citizens their property is the largest asset they own, so being able to register that property in a secure real estate registry is very important. However, there are many reasons that can prevent property owners from visiting an office, whether it be distance, old age, or disability. That’s why SSRRE decided to take the office out on the road. 

World Bank supporting both displaced and host communities to alleviate the burden of forced displacement

Ede Ijjasz-Vasquez's picture
Every year, conflict and natural disasters force millions to flee their homes and seek refuge elsewhere, either within or beyond the borders of their country.
 
While forced displacement is nothing new, the number of displaced people has increased significantly over the last few years: according to The United Nations High Commissioner for Refugees (UNHCR), conflict and war alone had forced a staggering 60 million people away from their home at the end of 2014-the highest level ever recorded.
 
Displacement is often a traumatic experience for the displaced, who may lose their homes, livelihoods, and experience precarious living conditions. In many cases, it also puts tremendous pressure on host communities that do not always have the capacity or infrastructure to absorb a sudden influx of people.
 
The World Bank has been working alongside displaced people and host communities alike in areas such as housing, municipal services, livelihoods, land, disaster risk management, and social cohesion. Priority is given to community-driven programs that put beneficiaries in the driver's seat and empower them to develop projects tailored to their own specific needs.
 
For more information on how the World Bank is addressing fragility, conflict, and violence, please make sure to visit our new Development for Peace blog.

The future of wildlife is in our hands

Claudia Sobrevila's picture
Also available in: Français
Botswana. The Global Wildlife Program

On March 3rd we will celebrate World Wildlife Day. Adopted by the UN General Assembly in 2013, this day raises awareness of the world’s wild fauna and flora. This year’s theme, "The future of wildlife is in our hands" resonates with those who understand the impact of species loss on the health of ecosystems and human survival.

We are currently in the midst of the sixth, man-made mass extinction of plants and animals. Experts estimate the current loss of species to be between 1,000 and 10,000 times higher than the natural extinction rate. The global Living Planet Index (LPI) shows an overall species decline of 52% between 1970 and 2010. Our increasing demands on nature are driving the two biggest catastrophic threats to species decline- habitat loss and wildlife trade. Habitat loss is a threat to 85% of all species.  Exploitation (including poaching and wildlife trade) is the most immediate threat to wildlife populations worldwide.

Illicit trafficking in wildlife is a multifaceted global threat. The problem is particularly acute in Africa, where poaching is leading some charismatic species to the brink of extinction. For example, in 2011 the International Union for Conservation of Nature (IUCN) declared the Western black rhino extinct, largely due to poaching. The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Monitoring the Illegal Killing of Elephants (MIKE) program estimated that in the last 5 years, between 22,000 to 25,000 elephants were poached per year across Africa.

A virtuous circle: Integrating waste pickers into solid waste management

Martha Chen's picture
Also available in: Português | Español | 中文
Waste – its generation, collection, and disposal – is a major global challenge of the 21st century. Recycling waste drives environmental sustainability by reducing greenhouse gas emissions and stimulates the economy by supplying raw materials and packaging materials.
 
Waste pickers are the principal actors in reclaiming waste for the recycling industry. Across the world, large numbers of people from low-income and disadvantaged communities make a living collecting and sorting waste, and then selling reclaimed waste through intermediaries to the recycling industry. Where others see trash or garbage, the waste pickers see paper, cardboard, glass, and metal. They are skilled at sorting and bundling different types of waste by color, weight, and end use to sell to the recycling industry. Yet waste pickers are rarely recognized for the important role they play in creating value from the waste generated by others and in contributing to the reduction of carbon emissions.
 
Fortunately, around the world, waste pickers have been organizing and cities have begun to promote the virtuous circle that comes with integrating waste pickers, the world’s recyclers, into solid waste management.
 
Brazil was the first country to integrate waste pickers, through their cooperatives, into municipal solid waste management systems and the first to adopt a National Waste Policy, recognizing the contributions of waste pickers and providing a legal framework to enable cooperatives of waste pickers to contract as service providers. The national movement of waste pickers in Brazil was awarded a contract to clean the stadiums during the World Cup.
 

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. 

What El Niño teaches us about climate resilience

Francis Ghesquiere's picture
It was recorded by the Spanish conquistadors, and triggered famines that have been linked to China’s 1901 Boxer Rebellion and even the French revolution.

Named by Peruvian fishermen because of its tendency to appear around Christmastime, El Niño is the planet’s most large-scale and recurring mode of climate variability. Every 2-7 years, a slackening of trade winds that push sun-warmed water across the Pacific contributes to a rise in water temperature across large parts of the ocean. As the heat rises, a global pattern of weather changes ensues, triggering heat waves in many tropical regions and extreme drought or rainfall in others.

The fact that we are undergoing a major El Niño event should cause major concern and requires mobilization now. Already, eight provinces in the Philippines are in a state of emergency due to drought; rice farmers in Vietnam and Thailand have left fields unplanted due to weak rains; and 42,000 people have been displaced by floods in Somalia.

And this is before the event reaches its peak. Meteorologists see a 95% chance of the El Niño lasting into 2016, with its most extreme effects arriving between now and March. Coastal regions of Latin America are braced for major floods; India is dealing with a 14% deficit in the recent monsoon rains; and poor rainfalls could add to insecurity in several of Africa’s fragile states. Indeed, Berkeley Professor Soloman Hsiang has used historical data to demonstrate that the likelihood of new conflict outbreaks in tropical regions doubles from 3% to 6% in an El Niño year.

But despite its thousand-year history, the devastation associated with El Niño is not inevitable. Progress made by many other countries since the last major event, in 1997-98, shows that we can get a grip on its effect – and others caused by climate trends.

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