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As the Paris Agreement becomes reality: How to transform economies through carbon pricing

Laura Tuck's picture

The remarkable pace at which nations of the world have ratified the Paris Agreement on climate change gives us all hope. It signals the world is ready to take the actions we need to keep global warming below 1.5 degrees Celsius. We know, however, that delivering on Paris comes with a high price tag, and that we need to help countries not just transition toward renewable energy but unlock the finance needed to get there.

Amid the enormous challenge ahead, I want to emphasize the transformative economic opportunity that putting a price on carbon pollution presents.

Rising from the Ashes: How fires in Addis Ababa are shedding light on the need for resilience

Maria Angelica Sotomayor's picture

On January 22, 2012 at 6:00 am in the morning, Ethiopians living in the Efoyta Market neighborhood in Addis Ababa woke up to a burning five-story building. More than 13 hours later, the fire had killed two people, destroyed 65,000 square miles including several homes and businesses, and produced damages amounting to ETB 20 million ($1 million), a huge amount in a country where nearly 30% of the population live on less than  $1.90 a day.   

I’ll take my coffee green, no cream, no sugar

Ellysar Baroudy's picture
Photo credit: Katie O’Gara

Ethiopia, the single largest African coffee producer and the world’s fifth largest, is commonly considered to be the birthplace of coffee.  It’s hardly a surprise that when you survey the landscape of Ethiopia’s Oromia region, an area the size of Italy, it is bespeckled with native Coffea arabica farms. 
In Ethiopia, about 95 percent of the coffee is produced by an estimated 1.2 million smallholder farmers. So it was quite fitting to focus on the country’s smallholder coffee farmers in Oromia for a project to help promote climate-smart “green” practices.
This week, the World Bank Group’s BioCarbon Fund Initiative for Sustainable Forest Landscapes (ISFL) announced it was taking part in a project together with the Bank Group’s private sector arm, the International Finance Corporation (IFC), along with the international coffee company, Nespresso and the non-profit, TechnoServe.

Do households use improved cook stoves? What are the benefits? An Ethiopian case study

Michael Toman's picture

About 40% of the human population, or about 2.8 billion people, find commercial fuels like electricity and gas inaccessible, too expensive or too irregularly supplied to use for cooking and heating (Smith et al., 2013; IEA, 2012).  Instead, they rely on solid fuels like coal, fuelwood, dung and charcoal that are combusted inside their homes (Jeuland and Pattanayak, 2012, Grieshop et al., 2011, Smith et al., 2013). Biomass fuels in particular are often self-collected and easy to use in inexpensive traditional stoves. This leads to severe public health problems, especially for women and children exposed to indoor smoke, and also can lead to forest degradation. Without major policy and/or technology changes, the global number of people depending on such fuels is projected to remain very large at least through 2030 (IEA, 2006, IEA and World Bank 2015).  
Improved biomass cookstoves that use less fuel and burn fuel more fully often are recommended as relatively affordable ways to deal with these concerns.

Perspectives from the Horn of Africa: Improving livelihoods for communities hosting refugees

Varalakshmi Vemuru's picture
Communities hosting refugees, more often than not, inhabit marginal areas which are characterized as underdeveloped, underserved, and environmentally fragile. In these areas, basic social services and economic infrastructures are either absent altogether or poorly developed. The dependence for fuel wood, construction timber, grazing and water (for both humans and animals) on already degraded natural resources by a significant population, both hosts and refugees in protracted displacement, often contributes to rapid environmental degradation thereby worsening the situation. In addition, with many of these areas being fragile and vulnerable to the impacts of climate change, protracted displacement further exacerbates the situation. 

In preparing the Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa, which supports Ethiopia, Uganda and Djibouti, consultations with local representatives brought out the critical need to help host communities cope and build resilience. An important challenge posed was how to develop activities that improve the productivity of both traditional and non-traditional livelihoods, including through diversification and income generation in these difficult locales. 
Barren land around Dadaab refugee camps, Kenya (Photo: Benjamin Burckhart)

While the team explored options for support, we were confronted with some realities. These included: (i) a high dependence on traditional and low productivity livelihoods, including agriculture, agro-pastoralism, and pastoralism; (ii) degraded natural resources base due to greater susceptibility to climate related events especially flash floods and droughts; (iii) lack of or limited access to basic social services and economic infrastructure, including rural finance and market infrastructure; (iv) inadequate presence and/or  limited capacity of the public sector; and (v) near absence of and/or non-vibrant private sector. 

Based on experience with supporting traditional livelihoods and livelihood diversification in a range of settings, including fragile and conflict affected contexts, the team and partners in Ethiopia, Uganda and Djibouti arrived at the following key considerations to promote livelihoods: 
  • Ensuring a focus on women and youth for livelihoods support given they are among the most vulnerable both among host and refugee communities.
  • Putting in place an inclusive and participatory planning process for livelihoods promotion and diversification is necessary to ensure community ownership.  
  • Establishing and/or strengthening community institutions focused on livelihoods is critical not only for training, capacity building, and livelihoods development; but also for promoting social cohesion and peace building between host and refugee communities thus creating an enabling environment for livelihoods promotion. 
  • Appreciating and mobilizing individual and community talents, skills and assets could serve to be a good starting point for supporting livelihoods in target communities, although designing livelihood programs and promoting livelihoods diversification requires careful assessment.
  • Understanding existing streams of livelihoods and livelihood diversification options is essential to better explore (i) existing traditional forms of livelihoods - stabilizing, expanding, and making them productive and sustainable; (ii) alternative forms of livelihoods (livelihoods diversification), including self-employment - micro-enterprise development, targeting micro-entrepreneurs; (iii) skilled wage employment - opportunities for youth and women in growing sectors of the economy; and (iv) technical, behavioral, and market-performance assessment for determining viable options. 
  • Access to finance should look at savings and credit groups and their saving mobilization and internal lending activities alongside the formal and non-formal financial institutions within and outside the target communities. 
  • Collectives of producers would need to be built on small scale livelihoods undertaken by individuals, community groups or institutions. The aggregation and/or upscaling will require access to larger markets, infrastructure for storage, transport facilities and appropriate technology for value addition and value chains; and importantly partnerships with the private sector.
  • Leveraging on initiatives that are existing, innovative and working in target communities and then adding value, including scaling up is more helpful. Given the challenging circumstances, transplanting models from more stable and developed environments may have limited chances of taking root.
  • Capacities and strengths of implementing agencies, local governments and communities should determine the scope and scale of livelihood activities while also paying attention to addressing the skills deficit and building sustainable capacity for planning, implementation and management of livelihood programs at all levels.
  • Phasing and sequencing of livelihood interventions will help manage the trade-off of a short-term versus a long-term planning horizon innovatively. Piloting and scaling up based on experience is a useful strategy to pursue.
  • Linkages and partnerships for greater impact need to be actively explored and established. Regular coordination meetings help encourage collaboration and partnerships, and provide feedback on implementation, share key learning and discuss challenges. 
Irrigation scheme in Dollo Ado, Ethiopia  (Photo: Benjamin Burckhart)

Promoting livelihoods is a challenging proposition in most contexts, much more so in displacement situations with their unique circumstances.  We are happy to share our perspectives as we work to help the people living in the Horn of Africa and look forward to hearing your views. 

On the road to sustainable growth: measuring access for rural populations

Edie Purdie's picture

This is part of a series of blogs focused on the Sustainable Development Goals and data from the 2016 Edition of World Development Indicators.  This blog draws on data from the World Bank’s Rural Access Index and on results presented in the report Measuring Rural Access: using new technologies

In Nepal, 54 percent of the rural population lives within 2 kilometers of an all season road.

Nepal, Rural Access Index: 2015

Just over half of the rural population in Nepal lives within 2 kilometers of a road in good or fair condition as measured by the Rural Access Index (RAI) in 2015, leaving around 10.3 million rural residents without easy access. The map shows how the RAI varies across the country: in the southern lowlands, where both road and population density are high, the RAI is around 80 percent in some districts. In the more rugged northern regions, lower road density and poor road quality leave many disconnected, resulting in a low RAI figure – in many places less than 20 percent.

Experience from the Horn of Africa: Using area-based and inclusive planning to coordinate the humanitarian-development response to forced displacement

Varalakshmi Vemuru's picture

In the previous blog, we wrote about some essential features of a development response to forced displacement, which is the first question that we confronted in preparing a project to support the Horn of Africa (HOA) region address the impacts of protracted refugee presence.

We are just starting work on this Development Response to Displacement Impacts Project (DRDIP) in the HOA, informed by our understanding documented in the joint World Bank-UNHCR Forced Displacement and Mixed Migration report. As we move forward, we are gaining useful insights on coordinating the humanitarian-development response.
Among the countries of the HOA, which have been hosting refugees for a long time now, Ethiopia hosts the largest number of refugees. The refugees reside in 23 refugee camps located in the five National Regional States of Afar, Benishangul-Gumuz, Gambela, Tigrai, and Ethiopian Somali in 16 Woredas and 15 kebeles. The environmental impact of the refugee presence, stemming from fuelwood and construction timber needs, extends across 117 kebeles.

Project preparation took us to the Sherkole refugee camp in Benishangul-Gumuz and the Asaiyta refugee camp in Afar National Regional States. Through interactions with local host communities, refugees, woreda and kebele officials, Administration for Refugee and Returnee Affairs (ARRA -- Government of Ethiopia’s refugee agency), and UNHCR field staff and local NGOs, we learned, for example, that both host and refugee communities wanted accessible secondary and high school education for their children; had to travel long distances, as much as 60 kilometers, if they needed a surgical intervention; and spent more time each day traveling to meet their fuel wood needs due to receding tree cover.

Classroom in Nakivale, Uganda (Photo: UNHCR)

However, discussions also revealed that the planning processes for the multi-agency refugee response (often led by ARRA and UNHCR in Ethiopia) and the development planning led by national and local government entities were essentially two separate processes – the former focusing primarily on refugees, and the latter on host communities. Both were functioning under a budget and capacity constraint.

The reality was that refugee children in Asaiyta who did not have access to high school in the camp attended the high school run by the government, and refugee women sought medical care at the local government hospital when the primary health centre was ill-equipped to address the problem.

For Sherkole, UNCHR was planning to establish a high school which could potentially support both refugees and host communities, as the existing high school was oversubscribed. But the conversation had not happened yet on how best to complement an existing high school so that both host and refugee children would be able to save time currently spent on walking to school and avoid the discomfort of sitting in congested classrooms.  

These realities led us to better focus on value for money of investments – efficiency, effectiveness and sustainability – and a potential tool for planning which could bring the government and UNHCR as well as NGOs that operate in these areas to exchange information and coordinate better their existing, ongoing and planned investments in service delivery.

Our experience in the Horn of Africa shows that area-based and inclusive planning has the following elements that would increase efficiency, effectiveness, and sustainability:

  • Both hosts and refugees are participants in the planning process and enabled to share their priorities, challenges and proposals;
  • Break the silos of planning and consider the needs of both host and refugee communities while planning an intervention irrespective of who was initiating the intervention;
  • Given that government would be the long-term custodian of the infrastructure and services, it was critical that all facilities created in an administrative area are recorded on government books and budgetary provisions made by local governments for operations and maintenance with contributions also coming in from the UNHCR;
  • Service delivery norms for basic social services are adhered to in terms of population served, irrespective of how many were local and refugees, in deciding the level of service provision (health clinic, primary health centre, or hospital) based on what was already available; and
  • Ensuring parity in qualification and remuneration of staff to ensure both UNCHR and government facilities are staffed and functional.

Some may argue that area based and inclusive planning is not new and offers an opportunity for intersectoral planning focused upon spatial or locational investment decisions, and that this is key to designing solutions to address problems and achieve functional integration between sectors. However, translating this concept into practice on the ground is the challenge, which all stakeholders are likely to face in the displacement context given their individual mandates and narrow beneficiary focus.

The DRDIP preparation process has however convinced us of the commitment of all concerned to stay focused on the beneficiaries and their needs, ensuring value for money through optimum utilization of limited capacities and resources. Some of the regions e.g. Afar and Ethiopian Somali where the project will be implemented already have experience in an area based planning approach that has been developed and implemented under the World Bank financed Pastoral Community Development Project (PCDP). What is different is the context and the prevalent practice. A very encouraging beginning indeed and a long journey ahead.

Forced displacement: What can the development community contribute to supporting displaced persons and host communities?

Varalakshmi Vemuru's picture
Also available in: Español
Every day we are confronted with new images of people making a desperate bid to escape their living conditions and countries against treacherous and unforgiving odds. Globally, there is a number of situations that are contributing to this unprecedented movement of people, including:
  • Forced displacement due to war, conflict, and persecution;
  • Involuntary migration due to poverty, erosion of livelihoods, or climate change impacts that have destroyed and degraded life support systems; and/or even
  • Voluntary migration of indomitable spirits unable to reconcile with the status quo and seeking better social and economic opportunities.

To better understand forced displacement, I led a joint World Bank-UNHCR team that brought out the Forced Displacement and Mixed Migration Report for the Horn of Africa (HOA) – a region with an estimated 242 million inhabitants that includes eight countries (Djibouti, Eritrea, Ethiopia, Kenya, Somalia, South Sudan, Sudan, and Uganda), which collectively host more than 9.5 million displaced persons, including more than 6.5 million internally displaced persons and approximately 3 million refugees.

Hope for the world’s poorest springs in Myanmar

Axel van Trotsenburg's picture

Aung San Suu Kyi, state counselor and minister of foreign affairs for Myanmar, addresses an IDA 18 replenishment meeting on June 21, 2016. © Aung San/World Bank

Daw Aung San Suu Kyi, state counselor of Myanmar and Nobel Peace Prize winner, told representatives from governments rich and poor at a meeting this week in Myanmar that reducing poverty and ensuring that everyone benefits from economic growth calls for a deep focus on addressing the challenges of fragility and conflict, climate change, gender equality, job creation, and good governance.
Suu Kyi was speaking at the opening session of a meeting of the International Development Association (IDA), the World Bank’s fund for the poorest, where donors, borrower representatives and World Bank Group leadership are brainstorming ways to achieve these goals. She said that Myanmar’s real riches are its people, and they need to be nurtured in the right way.

Jobs: The fastest road out of poverty

Sri Mulyani Indrawati's picture

A worker at the E-Power plant in Port-au-Prince, Haiti. © Dominic Chavez/World Bank

For the first time in history, the proportion of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series, I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030:
 good governance, gender equality, conflict and fragility, preventing and adapting to climate change, and, finally, creating jobs.

Good jobs are the surest pathway out of poverty. Research shows that rising wages account for 30 to 50% of the drop in poverty over the last decade. But today, more than 200 million people worldwide are unemployed and looking for work — and many of them are young and/or female. A staggering 2 billion adults, mostly women, remain outside the workforce altogether. In addition, too many people are working in low-paying, low-skilled jobs that contribute little to economic growth. Therefore, to end poverty and promote shared prosperity, we will need not just more jobs, but better jobs that employ workers from all walks of society.