Just two years ago, Ghana was experiencing unstable commodity prices and a deteriorating macroeconomic situation. Yet, through a unique combination of World Bank guarantees nearly $8 billion in private investment was mobilized for the Sankofa Gas Project—the biggest foreign direct investment in Ghana’s history. The transformational project helped address serious energy shortages and put the country on a path to economic growth.
This is just one example illustrating how risk mitigation products play out in practice to encourage private sector investment and improve people’s lives.
This blog is part of the series "Small changes, big impacts: applying #behavioralscience into development".
While Latin America is rich in water, people’s ability to access safe, reliable water supply remains elusive in most countries. Worse, most countries and major cities in the region will face economic water scarcity in less than a decade. Strategies to manage water scarcity vary, from investing in water recycling facilities to changing consumer behavior.
The most common ways to change consumer behavior are to increase the price or conduct communication campaigns to encourage conservation. Neither solution, however, is guaranteed to succeed. In some cases, they even backfire. Increasing price, for example, can upset citizens who currently pay little for poor quality water. Likewise, if done poorly, communication campaigns can cause panic and increase consumption and water stockpiling, something Bogota faced in 1997 when a tunnel providing water to the city collapsed and caused water shortages.
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Over the past three years and a half, our team has been working on a transport project with the state of São Paulo in Brazil. The project involves a lot of traveling, including frequent commutes between the World Bank office in Brasilia and the State Department of Transport in São Paulo (DER-SP)—a journey that is estimated to take 2 hours and 40 minutes. This includes the time to drive from the World Bank office to Brasilia Airport, flight time, and commuting from São Paulo’s Congonhas Airport to the State Department of Transport.
Let’s say that, on a typical Wednesday, the team needs to attend a meeting in São Paulo. To ensure we can make it on time, we plan our day carefully, book our flights and define the right time to leave the office in Brasilia. With a plan in place, we leave the office at 10:00 am and head to Brasilia Airport. The first leg of the trip takes 35 minutes and we manage to arrive early for our 11:00 am flight, which, unfortunately, is delayed by 20 minutes. We land in São Paulo, quickly get out of the terminal, and manage to hop on a taxi at 1:20pm… not bad! We are now on the last leg of our journey, a mere 14-kilometer drive between Congonhas Airport and the meeting place, which is supposed to take only 20 minutes. However, there is a short thunderstorm that floods the city and closes off key streets. This single event leads to complete traffic chaos along the way, and our planned 20-minute transfer from the airport turns into a 1-hour-and-15-minute ordeal. These traffic disruptions have a serious impact on our meeting as well, as some Department of Transport staff cannot join and some items of the agenda cannot be discussed.
This incident may seem anecdotal, but it is a good illustration of our extreme dependency on transport systems and the weaknesses associated with it. Because transport is so critical to our social and economic lives, it is extremely important to understand, anticipate, and minimize the different types of risks that may impact transport systems.
In most regions of the world, over 70 percent of freshwater is used for agriculture. By 2050, feeding a planet of 9 billion people will require an estimated 50 percent increase in agricultural production and a 15 percent increase in water withdrawals.
Buyers agreed to destroy obsolete equipment to prevent its reuse in the power distribution network
What do electricity meters and mobile phones have in common? Answer: both are present in millions of Brazilian homes and both become electronic waste as soon as they are discarded. Though they do not contain heavy metals, their materials pose risks from the moment they are discarded in waste dumps or landfills.
Basically, any general statement you use to describe Brazil can be countered with a ‘but…’. The vast internal diversity in the country calls for nuanced statements. When it comes to the status of gender equality in Brazil, there are several layers of ‘but’.
Brazil has come a long way towards gender equality.
Parents love their children. Farming is hard work. The child is reading a book. Children work hard at school.
These are the sentences that women ages 25-34— who reported their highest level of education as being primary school or less — were asked to read as part of the Demographic and Health Surveys (DHS) Woman’s Questionnaire.