One of the shiny new Ecovía buses
One should not underestimate the importance of Ecovía, a new 30-km BRT corridor crossing Monterrey from east to west. The original goal was to create a high-speed, high-quality mass transit system that could provide rail-like performance at a fraction of the cost. If the first six weeks are any indication, Ecovía certainly has achieved that. At 30 km per hour, the average travel speed of the BRT is close to double that of regular bus lines across the city; an influential local TV host found that end-to-end travel times on the system were over an hour faster than by private car; ridership levels are higher than what government expected for this still partial roll-out (35 of the scheduled 80 vehicles are operating); and in a recent survey, 75% of the sampled riders judged the overall system to be an 8 or higher on a scale of 10.
Access to formal financial services has been expanding in recent years. But as people start to use these services for the first time, it has become clear that the challenge is not only providing access to financial services, but also ensuring that people have the behaviors and attitudes to use financial products responsibly and to their advantage. If not, increased access to finance could potentially lead to over-indebtedness and even financial crises.
Two recent nationwide surveys of 1,526 adults in Colombia and of 2,022 adults in Mexico measure financial capability to provide insights on how people manage their finances. The term “financial capability” refers to a broader concept than financial literacy or knowledge alone. It covers a number of different behaviors and attitudes related to participation in financial decisions, planning and monitoring the use of money, and balancing income and expenses to make ends meet.
The financial capability surveys find for example that, in Mexico, many make financial plans, but far fewer adhere to them. Seventy percent of those surveyed say they budget, but just one-third reported consistently adhering to a budget. Similarly, just 18 percent knew how much they spent last week. In Colombia, while 94 percent of adults reported budgeting how income would be spent, less than a quarter of those surveyed actively monitored spending or had precise knowledge of how much is available for daily expenses.
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.
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On a recent trip to Mexico City, I had the pleasure of participating in three events that really brought home the transformative power of the open data and open source eco-system that is becoming an ever more important element of our work in transport.
First I joined the Secretary of Mobility for Mexico City to inaugurate an open data-based system for alerting public transport users in this city of 8 million of any disruptions to the city’s multimodal transport system consisting of an extensive metro system, a suburban rail line, 5 lines of the Metrobus Bus Rapid Transit system (BRT), an electric trolley system, as well as a substantial publicly operated bus system. The alert system was built using open-source software on an open standardized data set of schedules supported by the Bank last year (read more about that initiative led by my colleague Catalina Ochoa). Not only does this service deliver value for Mexico City commuters immediately, but it also allows any other city that has its data organized in a similar standard GTFS (General Transit Feed Specification) format (over a 1,000 cities do) to use the same code developed for Mexico City off GitHub, a web registry. Moreover, the open standardized formats let developers in Mexico City or elsewhere build apps that use this information. The market for these applications is potentially global, spurring innovation for user-oriented applications in public transport: there are already many hundreds of GTFS based applications.
For the last six years, a power plant in San Luis Potosi, Mexico has bought water from a nearby wastewater treatment plant to use in its cooling towers (instead of using freshwater). This operation, Project Tenorio, a public-private partnership, continues today and has already resulted in the reduction of groundwater extraction of at least 48 million cubic meters (equivalent to 19,000 Olympic size pools) and increased aquifer sustainability.
This is a good example of the water and energy nexus in practice: the wastewater treatment plant covers almost all of its operating costs from this additional revenue stream and the power plant gets a more reliable water source that is also 33% cheaper than groundwater in that area.
Treated wastewater has been used to reduce the water requirements of power plants in several other countries as well, as water supply becomes more variable or disappears. In the US, for example, around 50 power plants are using treated wastewater for cooling in order to adapt to water shortages. However, innovative integrated approaches like these are still more of an exception than the norm.
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.
Two days before the world observes International School Meals Day, I’m here sitting in the U.K. Houses of Parliament thinking about the unexpected evolution of school meals programs in recent years.
If you follow trade negotiations, then you know there are few more contentious than those for the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP).
On February 4, the World Bank’s International Trade Unit hosted Phil Levy, a senior fellow on the global economy at the Chicago Council on Global Affairs, who has been following both negotiations closely. Levy spoke with World Bank staff about the potential implications for developing countries as negotiations move forward in what he calls “bargaining among behemoths.”
At this point in the negotiations, one thing is clear: there are still more questions than answers.
Leaders in the transport, development, and for the first time, business sectors will convene for Transforming Transportation this week in Washington, DC.
Cities are the world’s engines of economic growth. Yet many have a long way to go when it comes to ensuring safe and affordable access to jobs, education, and healthcare for its citizens—in part because their transport systems are inadequate and unsustainable. This weakness is visible in packed slums and painful commutes in cities that fail to provide affordable transport options.
Inadequate transport comes with other costs related to air quality and safety. Beijing, China, battles dangerous levels of air pollution due in large part to motor vehicle emissions. Major Indian metropolises like Mumbai, Kolkata, and Chennai are growing out instead of up, contributing to increased travel distances and an estimated 550 deaths every day from traffic accidents. And across the globe, cities are the locus of up to 70 percent of greenhouse gas (GHG) emissions driving climate change.
Poor transport systems not only hinder the public health and economic growth of cities, they can spur civil unrest. More than 100,000 protestors, for example, gathered in Rio de Janeiro, Brazil, on one night in June 2013 to express a wide range of grievances, including transportation fare hikes, poor public services despite a high tax burden, and other urban issues.
But in these challenges lie significant opportunities – particularly for the business and transport sectors at the city level.
Mobility is a precondition for economic growth: mobility for access to jobs, education, health, and other services. Mobility of goods is also critical to supply world markets in our globalized economy. We could say that transport drives development.
- inclusive development
- inclusive transport
- Bus Rapid Transit
- transport policy
- transport economics
- fiscal incentives
- urban transport planning
- transport planning
- energy use
- transport infrastructure
- public transport
- mass transit
- greenhouse gas
- GHG Emissions
- Carbon Emissions
- road crashes
- vehicle safety
- road safety
- transport and land use
- land use
- urban development
- urban transport
- green growth
- shared prosperity
- poverty reduction
- Millenium Development Goals
- sustainable development goals
- Sustainable Development
- sustainable transport
- low-carbon transport
- Urban Development
- Climate Change
- Latin America & Caribbean
- East Asia and Pacific
- South Africa