Natural resources are being discovered in more countries, both rich and poor. Many of the new and aspiring resource exporters are low-income countries that are still receiving substantial levels of foreign aid. Resource discoveries open up enormous opportunities, but also expose producing countries to huge trade and fiscal shocks from volatile commodity markets if their exports are highly concentrated. A large literature on the "resource curse" shows that these are damaging unless countries manage to cushion the effects through countercyclical policy. It also shows that the countries least likely to do so successfully are those with weaker institutions, and these are most likely to remain as clients of the aid system. A new World Bank policy research working paper by Anton Dobronogov, Fernando Brant Saldanha, and me considers the question of how donors should respond to their clients' potential windfalls. It discusses several ways in which the focus and nature of foreign aid programs will need to change, including the level of financial assistance.
The call for a price on carbon is growing louder in the corridors of business and government. Last week, former U.S. Treasury Secretary Hank Paulson wrote in The New York Times that climate risks are perhaps the biggest “known unknown” that we face, and he asked “farseeing business leaders” to demand a price on carbon—it’s the quickest, most efficient way to manage these risks.
Paulson was previewing the Risky Business report, which calculated the economic impact of climate change on U.S. businesses’ balance sheets. A few days later, CDP released a report on corporate use of internal carbon pricing.
CDP surveyed executives to find out why leading businesses are already valuing carbon to future-proof their business plans. It is interesting to note that some of the largest U.S. utilities, including American Electric Power and Exelon, price carbon in an effort to avoid stranding large fossil-fuel-fired power plants and to reassure investors. Other less carbon-intensive businesses use internal prices to help achieve corporate sustainability goals—TD Bank aims to go carbon neutral, and Walt Disney Corporation (as well as Microsoft) uses internal pricing to encourage employee innovation while delivering profits. The value of encouraging more sustainable growth like this came through this week in the World Bank Group’s new Adding Up the Benefits report, which calculated the value of climate-smart development in lives, jobs, and economic growth, as well as the climate.
The recently enacted National Food Security Act, 2013 (NFSA) is being described as a ‘game changer’ to strengthen food and nutritional security in the country. It goes without saying that, be it basic staples (wheat and rice) or other foods (edible oil, pulses, fruits, vegetables, milk and milk products, egg, meat, fish etc), India has been quite successful in ensuring their ample availability to its population. But in addition to food availability, there are two more critical factors in ensuring food security to the citizen’s - access to food and its absorption for better nourishment.
Despite robust economic growth in recent years, one-third of India’s population, i.e. more than 376 million people in 2010 still lived below the poverty line, as per World Bank’s definition of $1.25 a day. Besides, the National Family Health Survey (NFHS-3) of 2005-06 highlighted that amongst children under five years, 20% were acutely and 48% chronically undernourished. The above facts definitely underline the continued relevance for safety net targeting that makes the poor and vulnerable food secure in terms of nutrition, dietary needs and changing food preferences.
A few weeks ago, I travelled to Gujarat to attend the project launch workshop for the second Gujarat State Highway Project (GSHP-II). It is a return visit to Gujarat after my last visit in 2008. I was the task team leader for the first Gujarat State Highway Project (GSHP) during 2005-2008, so I knew the state quite well and I expected to see a lot of changes during this new visit. But when I got there, I was still surprised.
Our team first went on a site visit first. We passed one road section which was improved in 2006 under the GSHP. The road will looked new. My colleague Arnab Bandyopadhyay, who is the Project Leader for GSHP-II, asked the engineers from the Roads and Buildings Department (R&BD) whether they have rehabilitated the road recently. The answer was no. “You must be kidding,” I said to them. “How can an 8-year old road still look so new?” But they were very firm. “No. We have not done any new works on those GSHP roads since they were constructed.”
I have to confess I am indifferent to soccer. Until last week, I was mostly annoyed by the distraction brought by the current World Cup.
And then things changed a bit. Reading Le Monde, I was intrigued by a graphical representation of a complex network. It just so happened to be a representation of the strategy of the Dutch soccer team. This is a simple and clever representation, which—at least, for me—makes soccer interesting.
“When you smile, the world smiles back.”
We all know that smiling helps lift our moods as well as the moods of others. Each time you smile at someone, you entice them to smile back. But what about the messages we post online?
Turns out, Facebook has been conducting a social psychology experiment on some of its users, and the results confirm what we already know… but in a surprising way.
In the experiment, Facebook manipulated the number of negative and positive posts appearing in the news feeds of some users. When Facebook reduced the number of positive posts appearing in a news feed, making it feel more negative, individuals not only shared fewer positive posts but actually shared more negative posts, spreading the negativity they received. Conversely, when negative posts were reduced, making news feeds seem more positive, users produced fewer negative posts and more positive posts. The study demonstrates the concept of emotional contagion (EC), the process by which a person or a group influences the emotions and affective behavior of another person or group through the conscious or unconscious induction of emotions.
For the US authorities I will still be “a legal alien”, but according to the UN definition I am going to be a migrant from tomorrow on. More precisely: I will be a long-term international migrant since I have been residing for more than twelve months in a country other than the country of usual residence. Today, I am still a short-term international migrant (three to twelve months in another country than the one of usual residence).
I am wondering whether the statistic offices immediately realize that there is another migrant living on this planet. I may be the 46,199,912th migrant living in the US or one of estimated 234 million migrants living worldwide (or 3.2 per cent of the world population). And I will also be part of the majority of international migrants (59 per cent) who lives in a developed country.
In June, a joint team from Operations Risk, Public Sector Governance and Integrity and Controllers invited researchers from the Corruption Research Center Budapest (CRCB) – Mihály Fazekas and István János Tóth – for a week of discussions with Bank staff on the measurement of corruption risk in public procurement, utilizing big data.
CRCB is an NGO made up of an interdisciplinary team of political scientists, economists, computer scientists and lawyers. Their goal is to help citizens understand corruption in public spending and quality of government, focusing on the public procurement process. Over the past few years, CRCB have been collecting vast quantities of previously unexploited data on public procurement for some countries in Europe, sifting through these datasets to analyze risk of corruption and evidence of cartels, using a combination of quantitative and qualitative methods.
Two years ago today, I was honored and humbled to become president of the World Bank Group, whose mission – ending poverty – I have been working toward most of my life. One of my first questions for the World Bank economists was whether it would be possible to end extreme poverty, and if so, how long it would take. The answer came back that it would be difficult but possible to end extreme poverty by 2030.
Since then, the 188 countries that hold shares in the World Bank have endorsed this goal, which previously few people believed would ever be achievable, let alone in our lifetimes. And it’s been my mission to find the best ways to leverage the talent, knowledge, and influence of the Bank Group to make it happen.