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Latin America & Caribbean

Capital account liberalization and controls: Structural or cyclical policy tools?

Poonam Gupta's picture

Capital flows to emerging market economies are deemed volatile, driven more by external than domestic factors. Surges in capital flows often generate macroeconomic imbalances in emerging markets, resulting in rapid credit growth, asset price inflation, and economic overheating. Reversals are disruptive too, often causing financial volatility, economic slowdown, and in some cases distress in the banking and corporate sectors.

Getting the basics right: How to manage civil servants in developing countries

Jan-Hinrik Meyer-Sahling's picture
Graphic: World Bank

Editor's note: This blog post is part of a series for the 'Bureaucracy Lab', a World Bank initiative to better understand the world's public officials.

Governments can only be effective if the people in government – that is its civil servants – are motivated and able to implement policy and services well. In many developing countries, this remains a remote aspiration. Corruption, lack of staff motivation and poor performance are both popular stereotypes and real-world facts. For many decades, international aid programmes have invested in civil service reform to change this reality. The track record of these reform programs has unfortunately been poor.

Getting to zero traffic fatalities: What will it take?

Irene Portabales González's picture
Also available in: Español
Photo: Geraint Rowland
We must stop deaths on the roads. No one would argue with that, of course. But for us who live in Peru and many other developing countries, the importance of making road safety a global development priority really hits home—especially after a string of dramatic crashes that have made headlines across the country.

Last February, a bus fell to the bottom of a 200-metre ravine and left 45 dead in Arequipa, including several children. A month before, the country witnessed its deadliest traffic crash on record when a bus plunged down a cliff in Pasamayo, just north of Lima, killing some 52 people.

According to government data, 89,304 traffic crashes were reported on the Peruvian road network in 2016, with a total of 2,696 fatalities. However, the latter figure only includes deaths occurring within 24 hours of a crash, and does not account for victims who may die from their injuries later on.

The global statistics are equally concerning. The World Health Organization (WHO) shows in its Global status report on road safety 2015 that traffic crashes represent one of the main causes of death globally, and is actually the leading cause for people aged 15 to 29.

How is rated infrastructure evolving? It’s expanding.

Mar Beltran's picture


Photo: Matej Kastelic / Shutterstock.com

Over the past two decades, rated infrastructure worldwide has grown threefold. Some periods of flatter growth aside, the rise of infrastructure lending for both project finance and corporates has helped steer the sector’s development.

All the while, the infrastructure sector has developed a more robust risk profile compared to companies primarily involved in the production of goods, otherwise known as non-financial corporates (NFCs). And, by most measures, infrastructure credits rated by S&P Global Ratings have displayed lower default rates and ratings volatility, and higher recovery prospects compared to NFCs.

“The past is never dead. It’s not even past.” – William Faulkner

Barbara Minguez Garcia's picture
Ponto-cho Alley, Kyoto. (Barbara Minguez Garcia / World Bank, 2016)
Ponto-cho Alley, Kyoto. (Barbara Minguez Garcia / World Bank, 2016)
 

Ponto-cho mapIt is 7:45 p.m. in Ponto-cho, the historic narrow alley at the core of the Japanese city of Kyoto. Close to the Kaburenjo Theater – where still today Geikos and Maikos (Kyoto Geishas) practice their dances and performances – the traditional adjoining buildings with restaurants and shops are full of guests. Local people, tourists, students… On this Saturday in mid-April, the warm weather brings a lot of people to the streets nearby.

At 7:46 p.m., a M 5.1 earthquake strikes. Seven seconds of swaying. It doesn’t cause major damage, but it is enough to spread panic among a group of tourists. Screams, shoving, confusion… drinks spill, candles fall, people rush.

At 7:49 p.m., the fire starts spreading through the old wooden structures, also threatening the historic theater. Access is difficult due to the narrow streets and panicking crowd.

What happens next?

It could be a fire in the Ponto-cho traditional alley. It could be an earthquake shaking the historic center of Kathmandu (Nepal), the archaeological site of Bagan (Myanmar), or the historic town of Amatrice (Italy). It could be Typhoon Haiyan in the Philippines or Hurricane Irma in the Caribbean, blasting sites with rain, flooding, and gale-force winds.

Cultural heritage assets around the world are at risk. They are often vulnerable due to their age, as well as previous interventions and restorations made without disaster risk or overall site stability in mind. Heritage sites reflect legacies, traditions, and identities. With all this, they carry a large cultural and emotional value of what could be lost – certainly beyond the traditional calculus of economic losses.

In many cases, it is not possible or advisable to conduct reconstruction on cultural heritage sites post-disaster. Therefore, the essence and soul of a cultural heritage site is at risk of being lost forever, making preparedness and preservation even more critical.

How can we protect these special places and traditions from the threat of natural hazards?

The power of sunlight: incentivizing private investment in solar PV

Susanne Foerster's picture


Photo: Pixabay Creative Commons

Solar power is experiencing a surge in popularity across the globe. It prevents carbon emissions, helps diversify the power generation mix, reduces dependence on fossil fuels, and can increase off-grid energy access.
 
With falling costs of solar photovoltaic (PV) technology, advancing storage technology, and grid integration, prices for solar PV electricity have been falling rapidly around the world and solar is now in many countries price competitive with traditional energy sources and has become particularly attractive for developing countries.
 

Communicating volcanic risk: lava, eruptions and uncertainty

Jon Mikel Walton's picture
Volcán de Fuego in Guatemala, one of Central America’s most active volcanos, spews ash and lava flows in January 2018, just 70 kilometers west of Guatemala City. Image credit: NASA
Volcán de Fuego in Guatemala, one of Central America’s most active volcanos, spews ash and lava flows in January 2018, just 70 kilometers west of Guatemala City. Image credit: NASA

We live in an age of compounding uncertainty. The unpredictable impacts of climate change and the rapid urbanization of societies is increasing the complexity, difficulty, and necessity of making sound decisions when faced with numerous options. This uncertainty is acute with respect to natural disasters – for example, predicting hurricane intensity or locating the next big earthquake remain challenging tasks despite advances in science and monitoring tools.
 
The challenge of anticipating and communicating the risk of volcanic eruptions to communities requires complex decision-making. Ecuador’s Cotopaxi Volcano and Indonesia’s Mount Agung are recent examples where the warning signs were present (small earthquakes, increasing gas emissions, and more), yet an eruption came much later than expected. Volcanic eruptions are therefore a double-edged sword that often creates a decision-making dilemma. While signs of volcanic activity can provide adequate time for preparation and evacuation, the very same signs can also create conditions of extreme uncertainty, which can be exacerbated by piecemeal communication around eruption events.
 
So, what have we learned from recent experiences on the challenges of communicating volcanic risk? 

Promoting bankable PPPs in Brazilian municipalities

Fernando Freire Dutra's picture


Photo: Gordon | Flickr Creative Commons

Public-private partnerships (PPPs) in Brazil have been around since 2004 when federal legislation established the legal framework to make them possible. Since then, approximately 100 PPP contracts have been signed in Brazil, totaling almost 160 billion Brazilian reais ($50 billion) in private investment in numerous sectors, including hospitals, schools, public lighting, sanitation, solid waste management, sport arenas, public buildings, urban transport, and roads. Some notable successes include the Belo Horizonte schools PPP, which supports non-pedagogical services in 51 schools, and the 298-bed Bahia Subúrbio Hospital, which opened in 2010.

Connecting with the people beyond the computers: my experience in flood risk management in Buenos Aires

Catalina Ramirez's picture
Also available in Español 

After spending several years in front of a computer every day, I began to feel removed from those people who were the real reason for my work, which aims to build a safer, healthier and more prosperous environment. But when people I knew were directly affected by the issues I was working on, my work took on more meaning and urgency.


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