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Colombia

Latin America and the Caribbean: Back to Normal?

José Juan Ruiz Gómez's picture


The ritual publication by the leading multilateral organizations, think tanks and investment banks on the macroeconomic outlook for Latin America and the Caribbean which, without being too dramatic, puts an end to the era of growth rates above the region’s potential, has inevitably attracted the interest of policymakers, investors and the public in general.

Replacing the car with a smartphone… Mobility in the shared economy

Shomik Mehndiratta's picture
Follow the author on Twitter: @shomik_raj
 

Photo: Sam Kittner / Capital Bikeshare
The sharing economy has been around for a long time. But recent technological advances like the development of real-time transactions through smartphones and credit cards have taken the potential of the shared economy to a whole new level, and opened the door for substantial changes in the way we think about urban mobility.

Recently, I was invited to join a panel on the sharing economy moderated by Prof. Susan Shaheen at UC Berkeley, focusing more specifically on shared mobility.

The panel acknowledged that shared mobility is already transforming the mobility landscape globally, but could go a lot further in increasing the sustainability of urban mobility systems. The panel identified a number of key research gaps that we need to pay close attention to if we want to create a policy environment that is conducive to mobility innovations. Three that I want to highlight are:
 
  • Supporting open data and open-source ecosystems is critical considering the tremendous potential of open-source software and data-sharing for improving transport planning, facilitating management and providing a better experience for transport users (for more detail, please see my previous blog on how the transport sector in Mexico is being transformed by open data)
  • Looking into shared-economy solutions for those at the bottom of the pyramid – solutions that don’t require credit cards and smartphones as prerequisites (see this blog on the bike-share system in Buenos Aires for a good example)
  • The world of driverless cars is coming – which, depending on how policy responds to it, could spell really good or really bad news for the environment: if such technology is used primarily in shared mobility scenarios, it could greatly reduce the environmental cost of motorized transport; on the other hand, the possibility of “empty trips” with zero-occupancy cars could exacerbate the worst elements of automobility (see Robin Chase’s blog in The Atlantic Cities for a great discussion on this). That is why it is critical to create a policy environment that appropriately prices the ‘bads’ of congestion, accidents and emissions while steering the world of driverless cars towards sharing and resource conservation.

A new path away from violence: the story of Raul

Jessica Gallegos's picture

Raul is short, skinny and has an enormous smile. Looking at him, it was hard to believe that this fifteen-year-old had long been feared in his community as a gang leader and had been the author of horrible crimes in Colonia Santa Marta in El Salvador.

“Will you take me for a 1,000 pesos?”— Making sure public transport subsidies really target the poor

Camila Rodriguez's picture
Also available in: Español

Follow the authors on Twitter: @TweetingCamila and @shomik_raj
 

A commuter in Bogotá, Colombia
(World Bank)
When analyzing the modernization of Bogota’s extensive bus system, we read a lot of technical analyses on public transport business models, risks, incentives, etc. But in a city where 11,6% of the population lives below the poverty line, social reality trumps all theoretical studies. In a new report entitled The promise and challenges of integrating public transportation in Bogotá, experts from Embarq estimate that as many as 23% of bus users sometimes plea for discounted rides, asking the bus driver: “Will you take me for 1,000 pesos?”

This situation points to one of the toughest challenges faced by public transport systems: how to reconcile financial sustainability and social inclusion? On the one hand, if fares do not cover operational costs, systems need subsidies to survive, which can pose serious financial and political risks. In some cases, transport systems operating with inadequate financial resources may experience system deterioration, safety problems and service curtailment. On the other hand, if fares are set to reflect the real price of transport services so that operators can recoup their costs without subsidies, then the poor are often priced out. This is exactly the problem that Bogotá is currently struggling with, despite its well-deserved reputation for innovation and excellence in public transport: fares of its state-of-the-art Transmilenio Bus Rapid Transit (BRT) system are pegged at cost-recovery levels that may price out many of the city’s poorest. Recent studies show that the lowest income households in Bogotá (socioeconomic strata 1, 2, 3 according to the local classification) are already devoting 20-30% of their total income to transportation, spending more than US$2 daily.  The situation may be even worse when Bogota’s city-wide public transit reform (the Integrated Public Transport System or SITP) is fully implemented, as bus drivers, with the adoption of smart cards, may no longer be able to offer unofficial discounts to passengers at their discretion, a common practice in the traditional system.

Building Metros in Latin America: Not all projects are created equal, but they all need strong institutions

Daniel Pulido's picture
Follow the author on Twitter: @danpulido
 

Construction of the Quito Metro
Representatives from international and local commercial and development banks convened in Bogota, Colombia at the end of March for the Second International Workshop to discuss the First Line of the Bogota Metro. Bogota is currently undertaking the engineering studies required to develop the metro project but the key question remains:  how to develop it in a manner that reduces costs, mitigates risks and maximizes benefits for users? Together with other Bank colleagues, I was invited to the workshop to discuss the procurement and financing models adopted in other urban rail projects in Latin America (see workshop presentations here). My main take away from the discussions is that although there is no such thing as a single recipe for success, there is one widely recognized essential ingredient: strong government institutions with the sufficient managerial and technical capacity to prepare, manage and supervise these complex projects.

Measuring Development Success in Difficult Environments

Laura Ralston's picture

The challenge of moving from conflict and fragility to resilience and growth is immense. More than half of the countries counted as low income have experienced conflict in the last decade. Twenty per cent of countries emerging from civil conflict return to violence in one year and 40% in five years.

While the use and production of reliable evidence has become more common in much of the international development debate and in many developing countries, these inroads are less prevalent in fragile and conflict-affected situations (FCS). Programming and policy making in countries affected by conflict and prone to conflict is often void of rigorous evidence or reliable data. It is easy to argue, and many do, that it is impossible to conduct rigorous evaluations of programs in conflict-affected states. However, in spite of the very real challenges in these environments, such evaluations have been conducted and have contributed valuable evidence for future programming, for example in Afghanistan, the DRC, Colombia, northern Nigeria and Liberia.

My unit Center for Conflict Security and Development, (CCSD) is teaming up with the Department of Impact Evaluation (DIME), as well as the International Initiative for Impact Evaluation (3ie), and Innovations for Poverty Action (IPA), in a series of activities to enhance the evidence base on development approaches to peace- and state-building challenges. A first goal is to scope out where our evidence base is thinnest: what are the programs and interventions that remain least tested, but have theories of change suggesting great potential? We are hoping to take stock of what we and other donor institutions have been doing in this area of development, and map this into what we have learnt and what we most need to learn more about. USIP, USAID, IRC as well as leading academics in this field and IEG, are kindly helping in this endeavor, and we hope to be able to share some initial findings at our fragility forum later this year.

Putting A Price on Carbon: Nations Opt For Market-Based Solutions

Xueman Wang's picture

 Curt Carnemark/World Bank

Climate change is a threat to global development and to poverty alleviation. And yet, reducing greenhouse gas emissions is proving difficult because all players in an economy contribute to the problem. To make a difference, we must reduce our emissions in a coordinated manner.

This is no easy task. So where do we go from here?

One approach involves pricing the “externalities” that are contributing to climate change. Pricing externalities into the costs of production is nothing new. A classic textbook example is the paper mill that sits upstream from a fishing village.

Discharge from the mill pollutes the river, diminishing the fishermen’s catch. The mill freely uses the water of the river in its production of paper, but does not pay for the damage of the negative externality that it causes. To remedy the situation, regulations can be put in place to stop waste from going into the river – or the mill can pay a fine equivalent to the loss of the fishermen’s revenue.

The latter is an example of an externality priced into the cost of production. The same can be done to combat climate change.

In this case, carbon emissions are the externality that must be priced. Doing so provides a cost-effective and efficient means to drive down greenhouse gas emissions as the cost of such pollution goes up.

A Coalition of the Working – That’s What the Oceans Need

Rachel Kyte's picture
Los océanos nos necesitan


​What is it about oceans? Ocean events seem to be getting bigger and broader in their participation. No matter whether the people in the room are representing government, seafood companies, private foundations, or conservation groups, they are unified by one thing: the need for serious action and soon.

Why I’m More Optimistic than Ever about Biodiversity Conservation

Valerie Hickey's picture
Conservation biology was baptized as an interdisciplinary problem science in 1978 at a University of California San Diego conference. But the conservation movement precedes this conference by at least a century, when the first national park was established in Yellowstone in 1872 and signed into law by U.S. President Ulysses S. Grant. Both the academic discipline and the practice of conservation have had two things in common for a long time: they remained steadfast to their original mission to protect nature and their proponents were largely American and European and mostly middle class. 
 
But nothing stays the same forever.
 

“La buseta”, “el pesero” and other things we miss in public transportation from Bogota and Mexico City

Leonardo Canon Rubiano's picture

Safe, Clean, Affordable Transport is the motto of the World Bank’s Transport Sector. Evidence from several analyses for urban transport systems suggests that improving the transport system:
  • reduces passenger travel times, 
  • reduces GHG emissions due to transport, 
  • reduces vehicle operating costs for the transport system, and 
  • reduces transport-related road accidents (injuries and fatalities). 

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