Many countries use trade policy to protect their own consumers from spikes in international food prices. It turns out that this well-intentioned practice can actually do more harm than good. During food price spikes -- such as those in mid-2008, early 2011 and mid-2012 – governments restricted the export of food staples or lowered barriers to importing them. They hoped to keep their domestic prices of rice, wheat, maize, and oilseed low, reasoning that this would help their poor and stop people from falling into poverty. But there is new evidence that, while the practice kept each country’s domestic prices down relative to the world prices at the time, it contributed to the higher international prices that were the source of concern. In a World Bank Policy Research Working Paper, “Food Price Spikes, Price Insulation, and Poverty,” we explore this phenomenon and find that it did not reduce global poverty in 2008. On the contrary, we estimate it may have increased poverty slightly (by 8 million people).
The stimuli that children are exposed to from the beginning of life to age 5 have the greatest impact on development, and they define the health, personality and intellectual capacity of each child. This is why it is crucial to invest early and well in child development. Countries in Latin America and the Caribbean (LAC) are investing more and more in early child development, but what do we know about these initiatives?
The Middle East and North Africa region is on the front lines of climate change. According to the World Bank report Turn Down the Heat: Why a 4 ͦ C Warmer World Must be Avoided (WB, 2012), the region is steadily getting hotter and drier. Of the 19 countries that set new national temperature highs in 2010, the warmest year globally since records were first kept in the 1800s, five were Arab states.
"Connecting to Work", which the World Bank has just published, highlights how ICTs help employ and empower workers around the globe. Read more
From 2006 to 2009, growth of bank deposits dropped by over 12 percentage points globally. The most affected by the 2008 global crisis were upper middle income countries that experienced a drop of 15 percentage points on average. Individual countries such as Azerbaijan, Botswana, Iceland, and Montenegro switched from deposit growth of 58 percent, 31 percent, 57 percent, and 94 percent in 2007 to deposit declines (or a complete stop in deposit growth) of -2 percent, 1 percent, -1 percent, -8 percent in 2009, respectively.
In times of financial stress, depositors get anxious, can run on banks, and withdraw their deposits (Diamond and Dybvig, 1983). Large depositors are usually the first ones to run (Huang and Ratnovski, 2011). By the law of large numbers, correlated deposit withdrawals could be mitigated if bank deposits are more diversified. Greater diversification of deposits could be achieved by enabling a broader access to and use of bank deposits, i.e. involving a greater share of adult population in the use of bank deposits (financial inclusion). Based on this assumption, broader financial inclusion in bank deposits could significantly improve resilience of banking sector funding and thus overall financial stability (Cull et al., 2012).
Aleem Walji, director of the World Bank’s Innovation Labs, recently gave an interview to Forbes and the Skoll World Forum on all things innovation and development. This blog post highlights some of the key points from that interview.
When I joined the World Bank at the end of 2009, I was asked how we could more systematically support innovation. We started by building on the Bank’s own “access to information” policy, which was foundational for our Open Data initiative. When we made our data available to the world in a machine-readable format, searchable, and reusable, back in April 2010, people came in droves. Within months, we had more traffic to our data catalogue than the World Bank homepage.
Another powerful insight we had was to link maps through “Mapping for Results” with poverty data and project results to show the relationship between where we lend, where poor people live, and the results of our work. While it may sound simple or obvious, even today development partners struggle to map the relationship between projects they fund and poverty indicators in a given country. We quickly realized the value of “mapping aid” and making aid data transparent and comparable. The Open Aid Partnership grew out of that impulse.
Operational collaboration between the World Bank and CSOs has grown significantly over the past two decades in such areas of health, education, and environment. Yet, because it largely occurs at the country level and within Bank-finance projects, this expanding collaboration is often not fully visible in Washington. As the latest edition of the World Bank–Civil Society Engagement Review of Fiscal Years 2010–12 demonstrates, important operational collaboration not only continued to grow over the past three years, but expanded to areas such as food security, disaster recovery, and access to information.
In response to the global food crisis which began in 2008, for instance, CSOs in Africa and Asia participated in the delivery of government programs in 16 countries (through seed distribution, school feeding, and agricultural production programs) financed by the Bank’s $2 billion Global Food Crisis Response Program (GFRP). CSOs were also asked to participate in the governance structure of the Global Agriculture and Food Security Program (GAFSP) which has allocated more than $400 million to projects in 12 countries.
It was once located on the grounds of the Uruguayan Embassy in Lebanon, and the name has somehow stuck. Now, Uruguay Elementary School is in a new building in an altogether different, bustling area of Beirut. It is hard to recognize it as a school at first: a seven-story building among other tall offices and manufacturing plants beside a major thoroughfare.
With newspaper headlines focused on violence and political upheavals across the Middle East and North Africa region, it is easy to forget that an annual beginning is also underway. Children from the Mashreq to the Maghreb have started going back to school. Parents are buying school supplies for little ones and millions of teenagers are going down a path that may shape their future careers. This week, Voices and Views presents Back to School 2013 - a series focused on the challenges that both teachers and students face in the region, and the policies and programs that can change a generation.