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September 2016

Forever Young? What Africa can learn from Southern Africa’s demographic transition

Lucilla Maria Bruni's picture
Forever Young: Southern Africa’s Demographic Opportunity


There has been an increase in attention on Africa’s changing population. Academics, development organizations and the media (among others, BBC, The Guardian, Financial Times, The Economist) have highlighted Africa’s late demographic transition – the population is young and will remain so for a long time, as fertility rates are not falling there at the same rate as they have fallen in the rest of the world.

Quote of the week: Edward Snowden

Sina Odugbemi's picture

"We are living through a crisis in computer security the likes of which we’ve never seen, but until we solve the fundamental problem, which is that our policy incentivises offence to a greater degree than defence, hacks will continue unpredictably and they will have increasingly larger effects and impacts.”

- Edward Snowden, an American computer professional, former Central Intelligence Agency (CIA) employee, and former contractor for the United States government who copied and leaked classified information from the National Security Agency (NSA) in 2013 without authorization. His disclosures revealed numerous global surveillance programs, many run by the NSA and the Five Eyes Intelligence Alliance, with the cooperation of telecommunication companies and European governments.

You ran a field experiment. Should you then run a regression?

Berk Ozler's picture
Recently, a colleague came over for dinner and made the following statement: “Person X told me that Imbens is now saying that we should not be running regressions to estimate average treatment effects in experiments.” When I showed some sympathy for this statement while focusing more on making tortillas, she was resistant: it was clear she did not want to give up on regression models…

What are some critical innovations for improving port-hinterland connectivity?

Bernard Aritua's picture
Photo credit: Hxdyl/Shutterstock
Imagine landing in the wee hours of the morning into Netaji Subhas Chandra Bose International Airport in Kolkata, India. As you leave the airport in a taxi, you find yourself stuck in heavy traffic and this at 4:00am in the morning! It does not take long to realize that you are sharing the roads with other early rising passengers riding in cars and buses, but also with a long queue of freight trucks, which seem to be the majority of vehicles along the road. Why are so many freight trucks winding through the city center? You soon learn from the taxi driver that some of the trucks are heading to, or coming from the famous ‘Barabazar’ market, but others are heading towards Kolkata port.

As your taxi leaves the line of trucks behind, you realize that you could be in any port-city in India or, for that matter, in China, USA or Europe. The types and number of trucks, and the freight carried may vary, but the challenges of port-generated traffic affecting the city hinterland is common. Of course, urban mobility solutions are multi-dimensional and usually include complementary strategies, investments and actors. However, the root cause of port-generated city traffic is simply a product of conventional port planning.

In Kolkata, the problem of port-generated traffic could get worse with the completion of the Eastern Dedicated Freight Corridor and National Waterway 1 (Jal Marg Vikas project). However, thanks to an innovative port-hinterland connectivity solution, supported by the World Bank, the ports of Kolkata and Haldia will dramatically increase their capacity while solving the issue of port-generated traffic. This is great news for the many truck drivers, who can often take a whole night just to get in queue to enter the port.

How long is the maturity of corporate borrowing?

Sergio Schmukler's picture

The extent to which firms borrow short versus long term has generated much interest in policy and academic discussions in recent years. For example, concerns of a shortage of long-term investment in the corporate sector have led several institutions to promote policy initiatives aimed at extending the maturity structure of debt, which is often considered to be at the core of sustainable financial development (World Bank, 2015). There is also evidence that more short-term debt increases around financial crises, both as a cause and as a result of financial instability. However, there is little evidence on the actual maturity at which firms borrow around the world.

In a new working paper (Cortina, Didier, and Schmukler, 2016), we study how firms in developed and developing countries have used the expansion in different debt markets (domestic and international bonds and syndicated loans) to obtain finance at different maturities, and how their borrowing maturity evolved during the global financial crisis of 2008–09.

Where the glass ceiling is already smashed

Monique Villa's picture

There is a growing sector where women are rising to the top, smashing through the glass ceiling as never before, and transforming the world with big ideas.

It’s called social entrepreneurship and it’s disrupting the traditional status quo, fostering innovation and developing sustainable business ideas to solve the world’s most pressing social problems.

From training rats to detect landmines, to offering micro-lending to Indian farmers, these entrepreneurs see success not just through financial returns, but also in terms of social impact. The ultimate business goal? To set up successful companies that improve the lives of underserved and marginalized communities. It’s not just about the balance sheet, but it’s not charity either.

A Thomson Reuters Foundation poll, conducted in partnership with Deutsche Bank, UnLtd, and the Global Social Entrepreneurship Network (GSEN) shows that women are embracing social entrepreneurship, especially across Asia.

According to our survey, 68 per cent of those polled across the world’s 44 biggest economies said women were well-represented in management roles within the industry. The Philippines ranked first as the country where women were most active in the sector, while Malaysia, China, Hong Kong, Indonesia and Thailand took five of the other top ten slots.
 

Pensions, power & development performance

Elias Masilela's picture
Woman who works in the daycare kitchen of a local farm in Milnerton, South Africa


The investment of pension fund assets has moved from an obscure topic for actuaries, to an issue which raises political attention at the highest level.

This is for the simple reason that it directly touches the social and economic livelihoods of people.

Since the 2008 global financial crisis, developed economies have been looking for additional sources of long-term capital to fill the gaps which bank and government balance sheets can’t fill. This is a search that has engulfed the developing world for much longer if not for as long as they exist. Younger developing economies are starting to see their pension funds grow, side by side with an increasing awareness of the impact which productively invested assets can have on economic growth both today and tomorrow. If invested for the aligned intensions of social impact and financial return, pension funds can improve people’s lives today and secure their income in future. However, this isn’t a general phenomenon – applying only to larger funds which have invested in the intellectual capacity of their Trustees, and in countries which have understood and embraced the strong relationship between the macroeconomic performance and asset performance.

Redirecting pension investments from short-term assets (government paper, bank deposits) to investments with a long-term impact is key to delivering, not only improved, but sustained returns. Private equity (PE) - equity capital not quoted on a public exchange – is one such asset class. PE investment is increasingly in vogue as such capital is the foundation of all economies, and indeed leads to the development of robust stock markets. If structured with pension investors’ risk-return consideration in mind, it can deliver the diversification benefits which these investors need.  If properly targeted, such investments will be vital in meeting the Sustainable Development Goals, considering that 15 of the 17 SDGs have a focus on growth, development and sustainability (the last two being on implementation and capital resource origination). Active participation in investee companies by shareholders such as pension funds will be vital for ensuring a future sustainable and shared economy. In turn, for this to work optimally, requires conscientious and capable Trustees.

Weekly links September 16: infrastructure myths, surveying rare populations x 2, being a development mum, and more…

David McKenzie's picture

PBS Documentary follows students around the world for 12 years as they fight to get basic education

Nina Chaudry's picture
 2003 – 2016


The idea for this 12-year documentary project, Time for School, came after Pamela Hogan (our producer) read an op-ed in which economist Amartya Sen argued that investing in education was key to promoting a country’s economic and social growth.


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