Good governance is critical for all countries around the world today. When it doesn’t exist, many governments fail to deliver public services effectively; health and education services are often substandard; corruption persists in rich and poor countries alike, choking opportunity and growth. It will be difficult to reduce extreme poverty — let alone end it — without addressing the importance of good governance.
In addition to their often devastating human toll, natural disasters can have an extremely adverse economic impact on countries. Disasters can be particularly calamitous for developing countries because of the low level of insurance penetration in those countries. Only about 1% of natural disaster-related losses between 1980 and 2004 in developing countries were insured, compared to approximately 30% in developed countries. This means the financial burden of natural disasters in developing countries falls primarily on governments, which are often forced to reallocate budget resources to finance disaster response and recovery. At the same time, their revenues are typically falling because of decreased economic activity following a disaster. The result is less money for government priorities like education or health, thereby magnifying the negative developmental impact of a disaster.
To address this problem, the World Bank Treasury has been helping our clients protect their public finances in the event of a natural disaster. The most recent innovation is our new Capital-at-Risk Notes program, which allows our clients to access the capital markets through the World Bank to hedge their natural disaster risk. Under the program, the World Bank issues a bond supported by the strength of our own balance sheet, and hedges it through a swap or similar contract with our client. The program allows us to transfer risks from our clients to the capital markets, where interest in catastrophe bonds is growing.
- cat bonds; catastrophe bonds; capital-at-risk notes program; CCRIF
- bond markets
- Disaster Response. disaster risk management
- Latin America & Caribbean
- Turks and Caicos Islands
- Trinidad and Tobago
- St. Vincent and the Grenadines
- St. Lucia
- St. Kitts and Nevis
- Cayman Islands
- Bahamas, The
- Antigua and Barbuda
A few weeks ago, the working group tasked with drafting Sustainable Development Goals (SDGs) issued its official list of recommended goals and targets for consideration by the UN General Assembly in September. It is an extraordinary milestone: As far as I know, it is the first time that metrics are defined through a robust intergovernmental process. The Millennium Development Goals, which will expire next year, were the result of a very different process. The international community is showing a growing appetite for setting targets and tracking results to ensure concrete action on the ground.
While the ultimate outcome of the SDG process is still uncertain, sharpening our collective focus on results is good news for the sustainability of our planet and for creating the conditions not only for pulling people out of poverty, but for enabling rich, productive lives. It is a cliché, but it is true: what gets measured, matters.
It was getting dark and the mist engulfing the jungle made the challenge of spotting the stripes even harder. My guide, a trained local tribal youth, was excited and kept telling stories about the sights and sounds of the jungle. In all fairness, I had enjoyed the trek. Every turn or straight path presented a beautiful landscape, majestic trees, bamboo thickets, gurgling streams, colorful birds, distant animal calls and the gentle fresh breeze. Sighting a tiger would only complete the experience. Will we? Won’t we, see one?
In many ways, the experience of sighting a tiger reflects the challenge its very survival is facing! Will it? Won’t it, survive? But more importantly, will someone notice if it is not around? Fortunately, I was in Periyar Tiger Reserve in the southern Indian State of Kerala, a turnaround success story where the World Bank’s India Ecodevelopment Project significantly increased income opportunities for the locals, improved reserve management and encouraged community participation in co-managing the reserve. Though this happened a decade ago, even today the incomes are sustained and communities are closely engaged! But such success stories are few and far between.
Economists speak a secret language. Markets, management, supply, costs, returns, rents – words I think I know, until I see them on a PowerPoint slide with a graph and an equation that starts with a sigma. Suddenly, it becomes clear these markets aren’t only the ones where I buy my peaches and rent is something more than a monthly check.
This past week I attended the bi-annual conference for the International Institute of Fisheries Economics and Trade. The hottest topics in fisheries economics were presented – the global state and outlook of aquaculture, capture fishery models, artisanal fishing, governance, rights based management, individual transferrable quotas, the impact of climate change, and dozens of others. Mostly comprising academics, the talks were technical, pithy, and representative of latest. An honest opportunity for discourse amongst equals to share and vet their work on ocean economies.
As a non-economist, I was in the minority here (though not a complete outsider – ecologists, trade experts, and fishermen were also in the mix). In spite of this lack of ‘expertise’ it is clear that the issue of ocean health is an economic one. We lose billions of dollars every year from mismanaging our fisheries and degrading ocean habitats. That money comes out of everyone’s our pockets. From small-scale fishers to large industry fleets to average consumers, we all pay the price. Economics can indeed play a large role in solving our ocean health problems, how challenging it is to get economists to agree on these solutions is another matter…
For two decades, the world has made extraordinary progress in development — lifting nearly 700 million people out of extreme poverty and halving the percentage of people living on less than $1.25 a day. Now the work gets even harder: extending that progress will require us to focus on improving lives in some of the world’s most difficult corners.
Conflict and poverty are mutually reinforcing. Large numbers of the world’s poorest live in areas torn by conflict, instability, and violence — and the numbers are growing. Quite simply, we cannot end poverty and boost shared prosperity by 2030 unless we ramp up our work in these areas.
July 18 is Mandela Day when we honor Nelson Mandela’s legacy of service and commitment to social justice, including the fight against extreme poverty. July 18 marks his birthday, the first one since his death in December at the age of 95. The day offers an opportunity to reflect on Mandela’s transformative impact on the world, the power of an individual to change the course of history, and his enduring legacy in the fight against extreme poverty.
Food Safety is becoming a priority in Zambia. The government is revising its food safety strategy and preparing new legislation to improve and modernize food safety governance. In the private sector, a number of food enterprises are upgrading their food safety practices to stay on par with their peers abroad and cater to increasingly demanding consumers.
These improvements are timely and appropriate. While the extent of foodborne risks in Zambia isn’t fully known, recurrent cholera and typhoid outbreaks as well as the fact that 60 percent of the population suffers from diarrhea suggest that foodborne pathogens, poor hygiene and sanitation and other food safety risks are having a negative impact. Anecdotal information supports this point. In conversations with partners in Zambia, over a cup of coffee or dinner, I asked what they thought could cause diarrhea? Most of them responded that it was probably something they ate. They complained that while diarrhea was not a “big deal,” and that “their stomachs were used to bacteria,” it reduced productivity because they had to take sick days away from work. Aside from causing a high death rate among children and the elderly, these diseases place a significant burden on straining public health services, reduce the productivity of the working population and constrain development. Furthermore, the economic and human costs of these diseases are huge.
Even though I didn’t grow up watching football, admittedly I’ve developed an interest in the sport during this month-long emotional World Cup soap opera. And like me, millions of people will be glued to their television sets for this Sunday’s finals match between Argentina and Germany.
Above and beyond the superstars, the fans and controversies, I learned more about how this beautiful game is used to build communities, overcome social and cultural divides and advance peace. It seems sports have a way of changing the lives of people around the world - but what does this exactly look like?
Rift Valley Fever, which can infect both humans and animals, has long plagued East Africa. And climate change, in combination with urbanization, population growth, and travel, can increase conditions that are favorable for this disease and many others.
Temperature, humidity, and rainfall will be affected by climate change –and each can influence the way that disease develops and spreads. Mosquitoes, for example, thrive in warm, humid climates. As climate change alters the geography of these conditions, the number and range of mosquitoes will also change, spreading the diseases that they carry, and exposing populations that have never before seen them. But this is not just true for mosquitoes – ticks, midges, and other vectors that carry disease also stand to have greater impact with climate change. The impact will be felt—with increasing intensity– by both humans and animals. Of the nearly 340 diseases that have been identified in humans since 1940, ¾ are zoonotic, passing directly from animal species to humans.