Is the shale gas revolution a brake on progress towards faster adoption of renewable energy? Many argue that it is, but there is also persuasive evidence that it could also boost integration of renewable energy into power grids, by providing a complement to intermittent sources of electricity.
Taxing Labor versus Taxing Consumption?
Europe’s welfare systems face substantial demographic headwinds. Increasing life expectancy and the approaching retirement of “Baby Boomers” will increase public expenditures for years to come. Rightfully, much attention is focused on containing additional spending needs for pensions, health and long term care. But how is all this being paid for?
Currently, the majority of social spending, including most importantly pension benefits, in most countries in Europe and Central Asia is financed through social security contributions, which are essentially taxes on labor. This has two important implications. First, in terms of fiscal sustainability, the growth in spending is only a concern if expenditures grow faster than the corresponding revenues. Since labor taxes are the predominant source of financing for most welfare systems in both EU and transition countries, aging will not only increase spending, but simultaneously exert pressure on revenues. With the exception of countries in Central Asia and Turkey, the labor force, and hence the number of taxpayers that pay labor taxes will decline by about 20 percent on average across the region. Second, already today, labor taxes, including both personal income taxes and social security contributions account on average for about 40 percent of total gross labor costs in Europe and Central Asia (including EU member states), compared to an average of 34 percent in the OECD. This means that for every US$ 1 received in net earnings, employers on average incur a labor cost of US$ 1.67. And out of the 67 cents that are paid in labor taxes, 43 cents (or 65 percent) are directly used to finance social security benefits. By increasing the cost of labor, the high tax burden potentially harms competitiveness, job creation, and growth in countries in the region.
International Green Week in Berlin, the world's largest exhibition for agriculture, food, and horticulture, is the sort of place where you can taste food from all over the world, see animals of all shapes and sizes (ever heard of a Pustertaler Schecken?), and explore the latest innovations in GPS-guided agricultural machinery. The event attracts not only 400,000 curious visitors, it also draws global decision-makers from government, the private sector, science, and civil society, including some 70 ministers of agriculture.
Established in 1926, this event could probably make a reasonable claim that it has seen it all before. But, of course, it hasn’t. This year, the focus was on resilience.
The already present impacts of climate change are demanding innovation and partnership in agriculture on a scale never seen before. It is not an academic discussion about some uncertain future – it is posing challenges to farmers today, and it’s having an impact on their bottom lines.
When Jane Otai said there are flying toilets in slums of Nairobi, most of her audience, like me, was trying to figure out what she meant.
A few others laughed softly. Because there are no toilets, she said, “people just do it [in bags] and throw it on the rooftops.” And it is really difficult for women and girls, she added.
Join me in a Twitter Chat on why global food prices remain high on Dec. 4 at 10 a.m. ET/15:00 GMT. I'll be tweeting from @worldbanklive with hashtag #foodpriceschat. Ask questions beforehand with hashtag #foodpriceschat. Looking forward to seeing you on Twitter.
Today there are 842 million who are hungry. As the global population approaches 9 billion by 2050, demand for food will keep increasing, requiring sustained improvement in agricultural productivity. Where will these productivity increases come from? For decades, small-scale family farming was widely thought to be more productive and more efficient in reducing poverty than large-scale farming. But now advocates of large-scale agriculture point to its advantages in leveraging huge investments and innovative technologies as well as its enormous export potential. Critics, however, highlight serious environmental, animal welfare, social and economic concerns, especially in the context of fragile institutions. The often outrageous conditions and devastating social impacts that “land grabs” bring about are well known, particularly in severely food-insecure countries.
So, is large-scale farming—particularly the popularly known “super farms”—the solution to food demand challenges? Or is it an obstacle? Here are the 10 key questions you need to ask yourself to better understand this issue. I have tried to address them in the latest issue of Food Price Watch.
- food security
- food price watch
- super farms
- South Asia
- United States
- United Kingdom
- Trinidad and Tobago
- Russian Federation
- Congo, Democratic Republic of
It is not often that you find Indigenous Peoples from around the world meeting in one of the most important baroque castles of Germany. Perched on a cliff, with a natural moat created by the river Lahn, the castle of Weilburg allows a bird’s eye view of the surrounding forest landscape.
These forests were not always lush and thriving. Centuries before, the construction of the castle led to massive logging in the adjacent forests and finally the ruling aristocrat ordered restricted use of timber for construction and introduced a new building code. As a result, Weilburg became the national center of a novel construction technique using clay and straw, which is now seen in towns across Germany.
Coincidently, a new approach to tackling deforestation is also what 80 Indigenous Peoples’ leaders, government representatives, civil society practitioners and international experts from 24 countries discussed this week at a three day workshop in Weilburg’s castle.
The central challenge was to identify practical approaches to ensure the full and effective participation of Indigenous Peoples in REDD+, a performance-based mechanism for reducing emissions from deforestation and forest degradation. The meeting was jointly organized by the Federal Ministry for Economic Cooperation and Development (BMZ), the Forest Carbon Partnership Facility (FCPF) and the UN-REDD Programme.
Under current trajectories, the world is headed toward a world that will be 4 degrees warmer by the end of this century. Despite the mounting concern around this scenario, many countries throughout the Europe and Central Asia (ECA) region are understandably reluctant to introduce more ambitious climate policies because they are worried about the negative consequences on competitiveness or energy affordability, for instance.
However, as we try to show in our recent publication, Growing Green: the Economic Benefits of Climate Action, strategic investment in climate action can benefit these countries in the medium- and long-terms – thus offsetting the negative consequences of these investments.
Above all, countries need to focus on three types of climate action: climate action as a co-benefit, climate action as an investment, and climate action as insurance.
LONDON -- I'm just back from the G8 meeting in Northern Ireland, and under the leadership of Prime Minister David Cameron, we focused on some critical but often overlooked elements on how the world can end extreme poverty in a generation: taxes, trade, and transparency. Watch the video to see why I feel so strongly about this.
Spring has arrived. Despite a late start, this winter lasted longer than usual in many countries, especially in various parts of Europe. And this year again, the melting snows reveal a trend that has been observed over the past several years: households are increasingly using wood to heat their homes. No, this time we are not talking about World Bank client countries where wood is known to account for large shares of energy consumption.
Financial Markets…Spanish and Italian government bonds bounced back from their earlier losses, with their benchmark 10-year yields dropping 6 basis points to 5.17% and 4 bps to 4.36%, as a report showed German investor confidence surged to the highest level in nearly three years this month, boosting risk-appetite for the region’s high-yielding debt. Notably, Spain sold €4 billion ($5.35 billion) of 3- and 9-month bills with an average yield of 0.421%, down from 0.441% in January auction.