Syndicate content

Financial Sector

Taking the temperature of the financial world

James Bond's picture

Global attention is mounting about this year's Annual Meetings of the Bank and the Fund in Turkey. From Egypt, where I am on MIGA business on my way to Turkey, the discussion is around whether the meetings will advance the G20 communiqué in terms of substance and specific implementation measures.

Traffic in Instanbul, Turkey. Photo: Simone D. McCourtie / World Bank I spent two days earlier in the week with global private equity investors. Their anxiety mostly revolves around how financial sector regulation will evolve over the coming months. They feel the cold wind of oversight, and the discussion revolves around two competing plans for financial regulation, one emanating from Brussels and the other from Washington. But everyone accepts that an overhaul of financial sector regulation is the unfinished business from last year's financial crisis, even though views differ on the extent and content of the changes needed. My own concerns are whether the world's piecemeal international governance system will enable a coherent global regulatory structure to emerge from the wreckage of last year's financial meltdown.

In Istanbul I'm looking forward to taking the temperature of the financial world. I hope and expect the meetings to be more subdued than in past years, because we have some serious business to do; and many players who were around at the Singapore meetings are no longer with us (Lehman, Bear Stearns, Merrill, AIG...).

It's a new world.

Latin American performed better than other regions in crisis

Augusto de la Torre's picture

In the lead-up to the World Bank-IMF Annual Meetings, the Latin America and Caribbean Region VPU of the World Bank is co-hosting and attending the Americas Conference.

The Latin American region is exiting financial crisis on a strong footing.

Americas conference raises region’s expectations about its future

Carlos Molina's picture

In the lead-up to the World Bank-IMF Annual Meetings, the Latin America and Caribbean Region VPU of the World Bank is co-hosting and attending the Americas Conference.

Government and business leaders attending the Americas Conference went home Wednesday with a renewed sense of accomplishment after devoting two intense days to tackling an ambitious yet urgent agenda for the region’s future.

The grand rooms of the historic Biltmore Hotel in Coral Gables still reverberate from the animated discussions that took place here amid the lush settings of Miami’s oldest city. These discussions will likely steer the debate on two of the most important issues facing the region: the global financial crisis and renewed threats to democracy in the region as embodied in the Honduran crisis.

Americas conference tackles Latin America's thorny Issues

Carlos Molina's picture

In the lead-up to the World Bank-IMF Annual Meetings, the Latin America and Caribbean Region VPU of the World Bank is co-hosting and attending the Americas Conference.

The Americas Conference got off to a good start today after addressing two of the most pressing issues facing the region: the impact of the financial crisis, that has engulfed Latin America for more than a year, and the political impasse that is rocking democracy in Honduras.

A group of World Bank experts told the meeting of Government and business leaders that Latin America is turning the corner vis-a-vis the financial crisis -one of the region’s worst-, as some countries were already showing signs of an early recovery.

A Renewed Faith in Public Investment

Marcelo Giugale's picture

In the lead-up to the World Bank-IMF Annual Meetings, the Latin America and Caribbean Region VPU of the World Bank is co-hosting and attending the Americas Conference.

As the dust settles in Latin America in the wake of the global financial crisis, along with the tough challenges ahead for the economic recovery, there seem to be unique opportunities to improve our region’s long-term outlook.

I have no doubt that this important Miami Conference –where Latin America converges in many ways, cultural and economic- is the ideal place to bring these ideas to the table and kick off a fruitful debate.

After the Crisis—World Bank President lays out vision for new global system

Angie Gentile's picture

Zoellick SAIS speech, After the CrisisOn the eve of the 2009 World Bank-IMF Annual Meetings, Bank President Robert Zoellick called on world leaders to reshape the multilateral system and forge a “responsible globalization”—one that would encourage balanced global growth and financial stability, embrace global efforts to counter climate change, and advance opportunity for the poorest.

“Coming out of this crisis, we have an opportunity to reshape our policies, architecture, and institutions,” Zoellick said, speaking at the DC-based Paul H. Nitze School of Advanced International Studies of the Johns Hopkins University.

“As agreed in Pittsburgh last week, the G-20 should become the premier forum for international economic cooperation among the advanced industrialized countries and rising powers. But it cannot be a stand-alone committee,” the Bank’s president noted.

In a speech laden with historical references, he spoke of the legacy of institutions established to deal with the global economy some 60 years ago and how the economic crisis is contributing to a changing multilateral global architecture.

"Bretton Woods is being overhauled before our eyes," Zoellick said.

The crisis has underscored the growing importance of the large emerging economies. “The current assumption is that the post-crisis political economy will reflect the rising influence of China, probably of India, and of other large emerging economies,” Zoellick said. “[T]he Greenback’s fortunes will depend heavily on U.S. choices.”

An opportunity to project a dynamic post-crisis region

Sergio Jellinek's picture

In the lead-up to the World Bank-IMF Annual Meetings, the Latin America and Caribbean Region VPU of the World Bank is co-hosting and attending the Americas Conference.

I’ve no doubt that the upcoming Americas Conference has the potential to become a platform to project a more dynamic, competitive and democratic Latin America as it exits its worst financial and economic crisis in decades.

Costa Rica’s President Oscar Arias will attend the Miami forum as a special guest, whose voice is one of moderation and respect for the region’s diversity, but also of uncompromising commitment to the core values of democracy and peace.

His vision as chief mediator in the Honduras crisis and author of the San Jose Accord should provide an important contribution to discussions on the plight of this Central American nation.

Political stability in the region is, clearly, one of the key topics being addressed at the Miami conference, which lends particular relevance to the presence of former President and special UN envoy to Haiti, Bill Clinton.

Post-crisis debate likely to heat up in Miami setting

Carlos Molina's picture

In the lead-up to the World Bank-IMF Annual Meetings, the Latin America and Caribbean Region VPU of the World Bank is co-hosting and attending the Americas Conference.

Old rumors fill corridors and grand rooms mimmicking 12th century Sevillian architecture. Perhaps are distant echoes from heated discussions that shaped Government agendas in previous years.

Or maybe it’s just small talk. Either way, it isn’t a stretch of the imagination to think about the Bushes, Clintons, Arias, Uribes or Bachelets of this world exchanging quick policy jabs within the corridors of the historic Biltmore walls as part of the decade-old Americas Conference, only a few days away now from trying to ignite once again an animated debate about the region’s political and economic future.

Cocooned in its limbo of palm trees and warm Miami breeze, the Biltmore Hotel seems to spur high stakes decision-making that has truly contributed to the region’s history -from Free Trade Agreements to Plan Colombia –while serving as a vacation hub for countless royalty and regional elites since the hotel was built in 1926.

In its first effort of this kind, the World Bank has joined this prestigious Conference as a partner, in the hopes of further engaging in a dialogue with the region as it exits the global financial crisis.

The latest move is part of the World Bank Group’s proactive approach to the crisis. It already has contributed an unprecedented US$17 billion in FY09 –triple previous annual commitments- to help countries in the region weather the financial crisis.

African ministers address financial crisis

Sameer Vasta's picture

At a recent press conference, three African finance chiefs chastised international credit rating agencies for failing to forecast the global financial crisis and challenged international financial institutions to do a better job of monitoring the global economy and of holding rich and developing countries accountable in the same way.

The Ministers from Zambia, Cote d’Ivoire and Tanzania spoke about the crisis and its effect on Africa. Mustafa Mkulo, Tanzania’s Minister for Finance and Economic Affairs, said:

"This crisis has come when African governments have taken broad based measures to reform their economies, followed by significant achievements. It is now threatening to wipe out our gains of the past ten years and disrupt all our plans for further progress."

More information:

Improving capacity building in post-conflict and fragile settings

Nina Vucenik's picture

Young children in school. Ghana. Photo: © Curt Carnemark / World BankThree African ministers shared their experience with Bank officials on Thursday when they met to discuss ways to develop capacity in post-conflict countries.

 “We are here to listen—tell us how we can better assist you. And please, be frank,” said Obiageli Ezekwesili, World Bank Africa Region Vice President.

Ezekwesili asked the ministers from Liberia, Rwanda and the Democratic Republic of Congo (DRC) to discuss capacity development efforts in their countries, and to identify what has and has not worked, and how donors can provide more effective support for human development, infrastructure, and public sector reforms.

Several common themes emerged from the ministers’ interventions, including:

  • Donors prioritizing support for primary and secondary education, and not higher education
  • Donors pressing a “one size fits all” approach on countries, trying to replicate programs that were successful elsewhere
  • The failure by expatriate advisors in civil service posts to transfer their knowledge and skills to local counterparts
  • Tension among returning members of the Diaspora and local populations that stayed behind, partly around incentive structures for civil service
  • An urgent need to deliver skills-training and create job opportunities for young ex-combatants
     

South Africa. Photo: Trevor Samson / World BankAugustine Ngafaun, Minister of Finance for Liberia, outlined the enormity of the challenges facing his country, which has “75 percent of the educational facilities destroyed” combined with a “massive brain drain” as a result of professionals fleeing during Liberia’s recent conflict.

“We have very few doctors, teachers and hardly any engineers,” said Ngafaun, Liberia's Minister of Finance.

He also noted that, despite the importance of the mining sector for Liberia’s growth, there are not even five geologists in the entire country.

Rwanda’s Finance Minister James Musoni noted that even though the reconstruction challenges were daunting, his country has made significant progress since the 1994 genocide. He said it is crucial for the donor community to understand the context in which each country operates, as in some cases the political leadership may not be ready.

Ezekwesili stressed the need to build confidence in all sectors, pointing out that “development solutions work only to the extent that the capacities of the nation-state, the private sector, and civil society are strong.”

“The lack of capacity is magnified by the stress of the post conflict environment,” Ezekwesili said. 

Story: Improving Capacity Building in Post-conflict and Fragile Settings—African Ministers Share their Experience

Pages