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April 2013

Communicating Climate Risks to Investors: the Next Major Ratings Failure

Alan Miller's picture

 Reserves of coal outside a power generation plant. - Photo: Shutterstock

Only a few years ago, the failure to properly quantify and communicate the risks of a widely traded commodity, mortgage-backed securities, caused major damage to the US and ultimately the global economy. According to the IMF, total losses will approach $4 trillion (pdf). A significant share of the losses were incurred by pension funds and insurance companies typically viewed as among the more risk-averse and cautious segments of the investment community.

A new report by the Carbon Tracker Initiative and the Grantham Research Institute on the Environment and Climate Change evaluates the failure to properly value the risks of climate policy to companies with major fossil fuel reserves and finds a similar potential for massive financial fall-out. They conclude that “Between 60-80% of coal, oil and gas reserves of publicly listed companies are ‘unburnable’ if the world is to have a chance of not exceeding global warming of 2°C.” (A short video explaining the research and mapping the amounts of investment at stake in different countries is available online).

VillageReach: Innovative Approaches to Improve and Strengthen Healthcare Systems in Low-Income Countries

Virginia Ziulu's picture

VillageReach is a non-profit social enterprise whose mission is to save lives and improve well-being in developing countries by increasing last-mile access to healthcare and filling gaps in essential supporting infrastructure, especially for remote, underserved rural communities. VillageReach received the Development Marketplace award in 2003 and also participated on the Development Marketplace Investment Platform program with its vaccination program in Mozambique.

This program focuses on improving the performance of the health system in Mozambique through the use of dedicated distribution channels for vaccines and other medical commodities to community health centers. The program’s key objective is to achieve high vaccination rates and low vaccination dropout rates, as well as to increase the overall knowledge and trust in the use of local health services. The key feature of the program is to achieve systemic change in the performance of the Mozambique Ministry of Health by building its capacity and expanding the dedicated logistics system, which would result in VillageReach decreasing its role over time as greater capacity is built.

Government Spending Watch - A New Initiative You Really Need to Know About

Duncan Green's picture

I’m consistently astonished by how little we know about the important stuff in development. Take the Millennium Development Goals – the basis for innumerable aid debates, campaigns, and negotiations. A large chunk of the MDG agenda concerns the size and quality of public spending – on health, education, water, sanitation etc. So obviously, the first thing we need is to know how much governments are spending on these things, right?

Well no actually, because we don’t have those numbers. Until now. Oxfam has teamed up with an influential and well-connected NGO, Development Finance International, which advises developing country governments around the world. Working with a network of government officials, DFI has pulled together and analysed the budgets of 52 low and middle income countries (With another 34 to follow). The result is a new database, called Government Spending Watch, (summary of overall project here) and a report ‘Progress at Risk’, previewed in Washington last Friday in a joint DFI/Oxfam America event to coincide with the IMF and World Bank Spring meetings. The full report won’t be ready ‘til May, but an initial draft exec sum is available, and here’s what it says.

Notes From the Field: Opening the Balkans to Services Trade

Julia Oliver's picture

About "Notes From the Field": With this occasional feature, we let World Bank professionals who are conducting interesting trade-related projects around the globe explain some of the challenges and triumphs of their day-to-day work. The views expressed here are personal and should not be attributed to the World Bank.

Borko Handjiski. Source: World Bank.

The interview below was conducted with Borko Handjiski, a senior economist in the World Bank’s Poverty Reduction and Economic Management (PREM) network. Until his recent move to the Africa region office, Mr. Handjiski was the regional trade coordinator for the Europe and Central Asia region. He spoke with us about efforts to liberalize trade in services in the Balkan countries, a subject he and Lazar Sestovic wrote about in a 2011 study, “Barriers to Trade in Services in the CEFTA Region.” In the interview, which has been edited for clarity, Mr. Handjiski explains how the World Bank is helping the Balkan countries better understand the benefits of liberalizing services trade and work with stakeholders in formalizing a regional trade agreement.

The Last Mile, at Last?

Onno Ruhl's picture

Onno visiting a medical dispensary in Okhla, Delhi, IndiaIt looked like an ordinary little drugstore. A reasonable supply of medication on the right, and man behind a small desk in the middle.

But what was on the desk was not ordinary: a netbook laptop and a fingerprint scanner. And on the left were boxes, all the same medication, with names written on them. “Try it,” Neema said. “Scan your finger.” I did and the screen turned yellow. “You have never been here yet” said Neema, “I cannot give you any medication.”  

The Many Faces of Corruption in the Russian Federation

Gregory Kisunko's picture

"No single national score can accurately reflect contrasts in the types of corruption found in a country." Michael Johnston, 2001

Corruption comes in various forms - administrative corruption being one example, state capture (a.k.a. “grand corruption”) being another. Although administrative corruption is not necessarily the most damaging form for economic growth and private sector development in Russia, and while its occurrence appears to be declining in Russia, perceptions of “state capture” are worsening.

Aid allocation: Should equally poor countries be treated equally?

Paolo Verme's picture

Donor countries are routinely confronted with the problem of how to allocate the aid budget. The debate on aid allocation has called for various types of indicators including institutional capacities and governance but in the practice of aid allocation a multitude of factors, such as strategic geopolitical interests, budget constraints and internal political considerations, still play an important role in most countries. However, if we focus on welfare indicators and on current practices of aid allocation, there are two monetary indicators that have gained prominence over the last few decades: GDP per capita and the poverty rate. GDP per capita is a natural choice of an indicator that is well understood and widely available. The poverty rate is a more recent choice explained by the new status that poverty acquired as a development objective. For a combination of events such as the fall of the Berlin wall in 1989, the publication of the World Development Report on poverty in 1990 and the establishment of the Millennium Development Goals in 2000, multilateral organizations have increasingly adopted poverty reduction as the overarching development goal. This new focus on poverty and the increased availability of expenditure surveys worldwide have also enabled the use of poverty measures to rank countries and allocate aid.

Empowering Adolescent Girls in Port-au-Prince: 'We are the future of Haiti'

Olivier Puech's picture

Available in Español, Français

Empowering Adolescent Girls in Haiti For almost a year, the World Bank has been supporting the Adolescent Girls Initiative (AGI) in Haiti, where much of the country is still recovering from the 2010 earthquake. Through this program, 1,000 low-income Haitian girls between the ages of 17 and 20 who did not complete secondary school have been able to receive vocational and technical training in areas of work not traditionally open to women.

The program seeks to ensure that these young Haitian women can enter the labor force with skills and experience. Internships are an integral component of the training they receive. In this context, the acquisition of technical skills suited to labor market needs and a change in mindset are critical to altering this situation in tangible ways.

I had the opportunity to go to Port-au-Prince when the program was launched and meet the future beneficiaries. I returned a few weeks ago to observe the progress made.

Lions and tigers and bears, what on earth! In Jordan, no less?

Tracy Hart's picture

        Source: Wiki Creative Commons

I have been working on biodiversity in protected areas in Jordan for several years, and I am still learning about this country. On my most recent trip, I discovered that Jordan is home to lions and tigers and bears. Imagine! The Hashemite Kingdom of Jordan is located between three continents, giving Jordan a rich biodiversity.


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