Ceilings on lending rates remain a widely-used instrument in many EMDEs as well as developed economies. The economic and political rationale for putting ceilings on lending rates is to protect consumers from usury or to make credit cheaper and more accessible. Our recent working paper shows that at least 76 countries around the world, representing more than 80% of global GDP and global financial assets, impose some restrictions on lending rates. These countries are not clustered in specific regions or income groups, but spread across all geographic and income dimensions.
In the last few years, CSA—which is an approach to agriculture that boosts productivity and resilience, and reduces GHG emissions- has gained momentum as understanding of its critical importance to the food system has risen. Nearly every government representative and farmer I meet during my missions (most recently in Bangladesh, Nepal and Pakistan) expresses genuine interest in making CSA part of their farming routines and agricultural sector.
This momentum is reflected in the Bank’s own actions. Since the Bank started tracking CSA in 2011, our CSA investments have grown steadily, reaching a record US$ 1 billion in 2017. We expect to maintain and even increase that level next year as our efforts to scale up CSA intensify.
In Gaile Parkin's novel Baking Cakes in Kigali, two women living in Kigali, Rwanda – Angel and Sophie – argue over the salary paid to a development worker: "Perhaps these big organisations needed to pay big salaries if they wanted to attract the right kind of people; but Sophie had said that they were the wrong kind of people if they would not do the work for less. Ultimately they had concluded that the desire to make the world a better place was not something that belonged in a person's pocket. No, it belonged in a person's heart."
It's not a leap to believe – like Angel and Sophie – that teachers should want to help students learn, health workers who want help people heal, and other workers in service delivery should want to deliver that service. But how do you attract and motivate those passionate public servants? Here is some recent research that sheds light on the topic.
. The sector is an engine of job creation: , while the share of jobs across the food system is potentially much larger. In Ethiopia, Malawi, Mozambique, Tanzania, Uganda, and Zambia, the food system is projected to add more jobs than the rest of the economy between 2010 and 2025.
There is a well-known idiom saying that you can't compare apples and oranges. But this is precisely the challenge researchers often face when it comes to measuring the jobs impact of development projects. Having standardized impact evaluation tools and methods is a milestone for private sector-led job investments, and it allows international financial institutions, development practitioners, and governments to build on existing knowledge to develop solutions. And this is precisely one of the goals that Let's Work partnership, composed of 30 different institutions, is currently pursuing; to track the number of jobs generated from private sector-led interventions, the quality of those jobs, and how inclusive those jobs are in a standardized way, so apples are compared to apples and oranges to oranges.
Photo: Scaling Solar project in Zambia
What is a common thread between Argentina, Maldives, and Zambia? In each of these countries, the World Bank provided guarantees to support transparent auctions for renewable energy. Through these, I have seen how the Bank’s involvement helped increase private investors’ confidence, attract world-class developers, and ultimately reduce tariffs.
Drawing on 10 years of diverse experience in the power sector in both public and private organizations, my role is to help bridge the divide between public and private parties and help each side better understand the other. The World Bank is ideally positioned for this. Both sides understand the World Bank carries out a detailed due diligence and ensures the auction meets international standards. Both sides appreciate the World Bank will be an honest broker if issues arise. Because of its long term and continuous involvement in our client countries, the World Bank can help identify and solve issues early on. As such, no World Bank project-based guarantee has ever been called.
The world’s climate is changing, and is projected to continue to do so for the foreseeable future. The impact of climate change will be particularly felt in agriculture, as rising temperatures, changing rainfall patterns, and increased pests and diseases pose new and bigger risks to the global food system. Simply put, climate change will make food security and poverty reduction even more challenging in the future.
During a meeting with top government officials in Zambia recently, the World Bank Regional Vice-president for Africa, Makhtar Diop, asked what was at the top of their minds. "Jobs!", was their unanimous response. He turned around to his team and said: "Please continue to focus on jobs and support the government in achieving their ambition." Indeed, jobs is an issue we have been focusing on in Zambia for over a year.
Developing countries made considerable gains during the 2000s, resulting in a large reduction in extreme poverty and a significant expansion of the middle class. More recently that progress has slowed—and the prognosis is for more of the same, given an environment of lackluster global trade, a lack of jobs coupled with skills mismatches, greater income inequality, unprecedented population aging in richer countries, and youth bulges in the poorer ones. As a result, developing countries are unlikely to close the development gap anytime soon.
When I met Esther Nyambe, she was dressed in a vibrant swirl of brown, green and violet and was pedaling a water pump. Nyambe heads a community organization in Mbeta Island, where women are taking the lead to improve access to safe water and diversify their income through climate-smart farming.
Mbeta Island is surrounded by the Zambezi River and faces increasingly unpredictable floods. Climate change is a reality in this landlocked country where more than half of the population lives in poverty. The island has seen floods that can turn communities into swamps.