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E-commerce is booming. What’s in it for urban transport?

Bianca Bianchi Alves's picture

Worldwide, e-commerce has experienced explosive growth over the past decade, including in developing countries. The 2015 Global Retail E-Commerce Index ranks several of the World Bank’s client countries among the 30 most important markets for e-commerce (China ranks 2nd, Mexico 17th, Chile 19th, Brazil 21st, and Argentina 29th). As shown in a 2017 report from Ipsos, China, India, and Indonesia are among the 10 countries with the highest frequency of online shopping in the world, among online shoppers. Although growth in e-commerce in these countries is sometimes hindered by structural deficiencies, such as limitations of banking systems, digital payment systems, secure IT networks, or transport infrastructure, the upcoming technological advances in mobile phones and payment and location systems will trigger another wave of growth. This growth will likely lead to more deliveries and an increase in freight volume in urban areas.

In this context, the Bank has been working with the cities of Sao Paulo and Bangalore to develop a new tool that helps evaluate how different transport policies and interventions can impact e-commerce logistics in urban areas (GiULia). Financed by the Multidonor Sustainable Logistics Trust Fund, the tool serves as a platform to promote discussion with our counterparts on a subject that is often neglected by city planners: urban logistics. Decision-making on policies and regulations for urban logistics has traditionally been undertaken without sufficient consideration for economic and environmental impacts. For instance, restrictions on the size and use of trucks in cities can cause a number of side effects, including the suburbanization of cargo, with warehouses and trucks located on the periphery of cities, far from consumers, or the fragmentation of services between multiple carriers, which may lead to more miles traveled, idle truck loads, and inefficiencies.

Boosting access to market-based debt financing for sub-national entities

Kirti Devi's picture



Many countries are experiencing urbanization within the context of increased decentralization and fiscal adjustment. This puts sub-national entities (local governments, utilities and state-owned enterprises) in the position of being increasingly responsible for developing and financing infrastructure and providing services to meet the needs of growing populations.
 
However, decentralization in many situations is still a work in progress. And often there is a mismatch between the ability of sub-nationals to provide services, and the autonomy or authority necessary to make decisions and access financing—often leaving them dependent on national governments. Additionally, they may also contend with inadequate regulatory and policy frameworks and weak domestic financial and capital markets. 

Budget-strapped cities are creating financing—out of thin air

Luis Triveno's picture

Photo: Jonathan O'Reilly / Shutterstock

The world is urbanizing fast200,000 people are moving to cities every day in search of homes, jobs, as well as education and healthcare services for their families. Supporting this influx with proper infrastructure and services for water, sanitation, transport, and green spaces will require an estimated $1 trillion each year.
 
Given the difficulties of further increasing the tax burden or the level of public debt, it’s time for cities to think more creatively about alternative sources of funding.

Not willing to wait for their national governments to bless them with scarce infrastructure funds, innovative mayors have figured out how to squeeze a new source of urgently needed capital out of thin air, literally.

Filling the local PPP capacity gap in Brazil: how the CP3P program can help

Marcos Siqueira's picture


Photo: Passarinho/Pref.Olinda | Flickr Creative Commons

A few weeks ago, I delivered the training for the Certified Public-Private Partnership Professional (CP3P) Preparation exam to a group in São Paulo. I was about to commence my closing remarks at the end of the three-day very intensive journey, when a particularly dedicated participant asked: “Why is it that we have never heard of so many of these concepts before?”
 
It was indeed a very good question.

Forest-smart strategies are taking off

Werner Kornexl's picture
© Flore de Préneuf/World Bank
© Flore de Préneuf/World Bank

The more we know about our rapidly changing environment, climate, and demographics, the more we learn about how critical forests are for our resilience, overall wellbeing, livelihoods, and economies. Unfortunately, in a world of budgetary constraints and competing interests, governments face increasingly complex decisions when it comes to supporting different sector priorities. The solution is to move away from the traditional approach of sectors operating in isolation or in competition with one another, and more towards an integrated win-win approach. But how?

Gender equality hits the highway in Northern Brazil

Satoshi Ogita's picture


Young women, some still girls, await long-haul truck drivers that stop by a gas station in the State of Tocantins, located in the North region of Brazil. Here, impoverished women and girls look to get extra cash in exchange for sex, a phenomenon seen on a daily basis in small towns along the federal highway BR-153. The high dropout rate of girls and gender-based violence are commonplace there. While better road infrastructure brings more economic opportunities to the region, higher road traffic and activity can also increase social risks like gender-based violence.   
 
A World Bank’s multisectoral project in Tocantins seeks to improve efficiency of road transport, in particular, state and rural road network, and to support institutional strengthening in the following five sectors: public administration, agriculture, tourism, environment, and education. While the project does not include any roadwork specifically on the highway BR-153, it aims at reducing existing risk of gender-based violence along the highway as part of the education component of the project.  
 
Schools play an important role in building respectful relations between girls and boys, challenging gender-based stereotypes and combatting discrimination that contributes to violence against women and girls. Accordingly, based on the level of the dropout rate and violence statistics, six high schools along BR-153 were selected to host a pilot initiative to improve awareness of gender-based violence and in the area.

Changes must come to the way agriculture is funded in Brazil

Diego Arias's picture

A matching grant enabled the Brazilian cooperative Coopervoltapinho to build a rice silo. All photos by Romeu Scirea.

Imagine driving along a rural road and seeing many small farms, all growing flourishing crops. Would you know how the farmers obtained the funds to plant these crops, enhance their productivity, and deliver them to market?
 

Our food system depends on the right information—how can we deliver?

Diego Arias's picture
Photo: CIF Action/Flickr
For most of us, watching the weather forecast on TV is an ordinary, risk-free and occasionally entertaining activity. The weatherman even makes jokes! But when your income depends on the rain or the temperature, the weather forecast is more than just an informative or entertaining diversion. Information can make or break a farmer’s prospects. Farmers get a sense of the risks they face down the road and plan their planting, harvest, use of inputs like fertilizers and pesticides, crop and livestock activities and market sales around weather reports and other information—on prices, local pests and diseases, changes in credit terms and availability, and changes in regulations, among other things.

The availability and quality of such agriculture risk information is hugely important for farmers, and the potential impact of bad information can be quite costly, leading the farmer to make wrong decisions and eventually lose revenue. Information systems that have unreliable sources and/or poor data processing protocols, produce unreliable results, no matter how complex the data processing model is. In other words, one can have “garbage in – garbage out.” Information is integral to agriculture risk management, not only in the short term to hedge against large adverse events, but also in the medium and long term to adapt to climate change and adopt climate smart agriculture practices. Climate-smart agriculture programs and agriculture risk management policies are toothless unless farmers have reliable information to implement changes on the ground.

Investing in agriculture risk information systems is a cost-effective way of making sure that farmers--and other actors along the food supply chain-- make the right decisions. But agriculture risk information systems in most countries suffer from lack of capacity and funding. Mexico, a country with an important agriculture sector, does not have information on market prices of agriculture products like maize, which is why a new Bank project aims to strengthen their capacity in this area. Mexico is not alone. Argentina solved this same problem recently with World Bank support, creating a market price information system for basic grains.

The growing economic clout of the biggest emerging markets in five charts

Ayhan Kose's picture

Global economic growth is accelerating. After registering the slowest pace since the 2007-2009 financial crisis in 2016, global growth is expected to rise to a 2.7 percent pace this year and 2.9 percent over 2018-19.

While much has been said about better economic news from the major advanced economies, the seven largest emerging market economies—call them the Emerging Market Seven, or EM7 – have been the main drivers of this anticipated pickup.

Chart 1:

The contribution of the seven largest emerging market economies to global output has climbed substantially over the last quarter century.

The EM7 -- Brazil, China, India, Indonesia, Mexico, Russia and Turkey – accounted for 24 percent of global economic output over 2010-2016, up from 14 percent in 1990s. Although this is a smaller share than the Group of Seven major industrialized economies, the G7’s portion of global economic output has narrowed to 48 percent from 60 percent over the same time frame.
 

Contribution to global output (percent)

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