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March 2013

How does risk affect your life? – Join us for a Live Chat on the World Development Report 2014

Norman Loayza's picture

Adverse events coming from systemic or idiosyncratic risks may destroy lives, assets, trust, and social stability. While risks in some areas have diminished in recent years (notably health, and economic crises in developing countries), risk has become more pronounced in other areas, including natural hazards, crime, the environment, and food prices. Especially when risk is mismanaged, the consequences can be severe, turning into crises with often unpredictable consequences.

Profile: The audacity to dream big in Tunisia

Erik Churchill's picture

                              Photo Source: Yoann Cimier | www.yoanncimier.com

“If we are able to say that a poor, majority Muslim, and conservative society is capable of making a democracy of international standard, other countries in the region will have no excuse not to follow us,” says Amira Yahyaoui. “But Tunisia won’t succeed unless we continue to be bold. We must be audacious in our ambitions.”

India's Air Pollution Woes

Muthukumara Mani's picture

The World Health Organization’s recent Global Burden of Disease (GBD) Assessment estimates that outdoor air pollution causes 620,000 premature deaths per year in India, a six fold increase since 2000. The main causes are growing emissions of particulate emissions (PM10) from transport and power plants. GBD in this analysis has ranked air pollution as the sixth most dangerous killer in South Asia and fifth leading cause of deaths in India.

Also, according to the WHO, across the G-20 economies, 13 of the 20 most polluted cities are in India and over 50% of the sites studied across India had critical levels of PM10 pollution. A recent rapid survey by Delhi based Center for Science and Environment revealed that almost 75% of respondents considered air pollution as a major cause of concern and as responsible for respiratory illnesses.

A flower for Sharon Russell

Dilip Ratha's picture

It was early 2001, I think, when I got a call inquiring about future-flow securitization of remittances. She was preparing for a talk at the UN, the caller said, and she was intrigued by yet another way in which remittances impact the migrants’ country of origin. That was two years before I began my research on remittances. The caller that day was Dr. Sharon Stanton Russell, a pioneer in the field of remittances and migration, a mainstay of migration studies at MIT and the Inter-University Committee on International Migration (IUCIM).

Sharon passed away on February 27, 2013. More than 300 people attended her funeral on March 23.

Trade: The World Is Not Flat Yet

Otaviano Canuto's picture

Thomas Friedman’s bestseller The World Is Flat highlights the strong forces pushing the world towards a single economic platform. The technology-fueled globalization in the provision of services, and the widespread organization of production processes as global value chains are part of his narrative.

Quote of the Week: President Barack Obama

Sina Odugbemi's picture

"And let me say this as a politician – I can promise you this, political leaders will never take risks if the people do not push them to take some risks. You must create the change that you want to see. Ordinary people can accomplish extraordinary things."

-Barack Obama, 44th President of the United States

Quoted from Remarks of President Barack Obama to the People of Israel, The White House, Office of the Press Secretary

Cyprus Bank Bailout – Should Depositors Pay the Bill?

Asli Demirgüç-Kunt's picture

The Cypriot banking system is insolvent and desperately in need of a bailout. Like Ireland, this island banking system has expanded rapidly over the years and currently has assets equal to almost 7 times its GDP, making the system too big to fail, but also "too big to save." Funding needed to recapitalize the banks is currently estimated to be around 17B euros (almost 100 percent of Cypriot GDP) making it impossible for Cyprus to resolve its crisis alone. A 10B euro rescue package was recently negotiated, but the bailout package proposed by the Troika — made up of the IMF, the EU and the ECB — still leaves Cypriots to come up with a sizable sum. The question is what to do.

The recent bailout plan proposed by the government (yet rejected by the Cypriot parliament) sparked significant controversy globally because it required a depositor levy to "bail in" all depositors to help pay for the bailout. On the one hand, the proposal is seen as violating the deposit guarantee and risk leading to bank runs elsewhere in the Euro Area and beyond. On the other hand, the Cypriot government felt the need to turn to depositors because a full bailout is out of the question given their debt burden will already reach unsustainable limits even with the partial bailout; most of their sovereign debt is under English law and cannot be restructured; their banks have few bonds to be written down; and about half of their depositors are rich Russian depositors attracted by their favorable tax system.

India's NREGS (Part I): Creating Jobs—on Demand—in Agriculture

R. Subrahmanyam's picture

In 2006, India launched the National Rural Employment Guarantee Scheme (NREGS) to tackle underemployment and unemployment in the agricultural sector. The program guaranteed a minimum of 100 days of work every year to anyone who requested it. How is it doing? We examine this question in a two-part series. In Part I, we talk with R.Subrahmanyam, Principal Secretary of Rural Development in Andhra Pradesh. He says that since 2006, the program has been extended to 1 million villages, providing employment to more than 2.5 billion households, at a cost of $33 billion.


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