Settlements in cases of foreign bribery cases are big news and growing. More and more countries are allowing these procedures, and their law enforcement agencies are using them forcefully in their efforts to combat foreign bribery. The FCPA, which came into law in the US over thirty five years ago, has paved the way for many other countries to adopt similar legislations, in line with far reaching international agreements such as the OECD Anti-Bribery Convention. These are very welcome developments, which should continue unabated.
The 2003 UN Convention Against Corruption – to which almost 170 countries have become party to - has created an environment for a radical and universal change in the international landscape of anti-bribery legislation. Actual enforcement is making a difference, as illustrated by the rapid growth in settlements by companies and individuals who have contravened the law and have to face the consequences - without going to a full trial. The figures are telling: over the past decade a total of US$ 6.9 billion has been imposed in monetary sanctions through settlements - which is clearly good news in the fight against corruption.
But in the midst of this positive development, there are a number of troubling concerns (from the perspective of the countries affected by corruption). Research by the UNODC/World Bank Stolen Asset Recovery Initiative in our new report ‘Left Out of the Bargain’ has revealed that those countries whose officials have been bribed are most often unaware of the settlements, and receive very little of the moneys involved. Of the US$ 6.9 billion, nearly US$ 5.8 billion came about when the countries where the settlement took place – mostly major financial centers - were different from those of the allegedly bribed foreign public official.
StAR’s analysis of 395 cases reveals that only about US$197 million, or 3%, was returned to the countries whose officials allegedly received bribes.
The World Bank Group is searching internally and globally for 18 experienced and driven professionals to help achieve two ambitious goals: reducing the number of people living on less than $1.25 a day to 3% by 2030 and promoting shared prosperity by fostering the income growth of the bottom 40%. These leaders will be crucial to our plan to improve the way we work, so we can deploy the best skills and expertise to our clients everywhere, to help tackle the most difficult development challenges around the world.
Last month, the Bank Group’s member countries endorsed our new strategy which for the first time leverages the combined strength of the WBG institutions and their unique ability to partner with the public and private sectors to deliver development solutions backed by finance, world class knowledge and convening services.
Instrumental to the success of our strategy is the establishment of Global Practices and Cross-Cutting Solution Areas, which will bring all technical staff together, making it possible for us to expand our knowledge and better connect global and local expertise for transformational impact. Our ultimate goal is to deploy the best skills and expertise to our clients at the right time, and become the leading partner for complex development solutions.
We are accepting applications for the Global Practice senior directors who will lead these pools of specialists in the following areas: Agriculture; Education; Energy and Extractives; Environment and Natural Resources; Finance and Markets; Governance; Health, Nutrition, and Population; Macroeconomics and Fiscal Management; Poverty; Social Protection and Labor; Trade and Competitiveness; Transport and Information Technology; Urban, Rural, and Social Development; and Water.
- Public private partnership
- fiscal management
- Rural Development
- disaster risk management
- health nutrition and population
- Natural Resources Management
- global practices
- Urban Development
- Social Development
- Public Sector and Governance
- Labor and Social Protection
- Information and Communication Technologies
- Financial Sector
- Agriculture and Rural Development
- Macroeconomists for the Poor
A country’s income depends on its accumulated wealth and how efficiently and innovatively this wealth is employed to produce goods and services. Does what a country produce matters? Are there constraints or drivers of wealth accumulation that can be associated with specific economic activities within a country?
The question is as old as development economics. Is specialization in producing (mineral or agricultural) commodities inherently more limiting than producing manufactures? More recently, the question has been extended to a contraposition between manufactures and services.
International long-term private finance to developing countries has changed dramatically in the wake of the global financial crisis. Caught in “post-crisis blues”, as my World Bank colleagues Jeff Chelsky, Claire Morel and Mabruk Kabir called it in a recent Economic Premise, some traditional sources of long-term finance are strained, and alternatives have not been able to adequately compensate. Private financing of infrastructure has been particularly hurt.
Islamic finance is growing in countries like Malaysia (Credit: Asian Development Bank, Flickr Creative Commons)
Over the last three decades, the concepts of Islamic finance have captured the attention of researchers. One of the core principles of Islamic finance is the prohibition of interest and debt-based financing. Instead, economic agents are encouraged to engage in financial instruments of risk-sharing rather than risk transfer. Although the principles of Islamic finance go back several centuries, its practice in modern financial markets became recognized only in the 1980s, and began to represent a meaningful share of global financial activity only around the beginning of this century. The growth of this market has been driven by the high demand for Islamic financial products, as well as the increasing liquidity in Gulf region due to high oil revenues. Table 1 shows the growth trend in Islamic finance for the banking sectors by different regions, with estimates of total Islamic banking assets reaching $1.8 trillion by the end of 2013. Figure 1 shows how the growth of the Islamic financial sector in 2006–10 period surpassed the growth of conventional financial sector in all segments of the market, ranging from commercial banking, investment banking, and fund management to insurance in several Muslim-majority countries.
Cities have always been the driving forces of world civilizations. What Niniveh was to the Assyrian civilization, Babylon was to the Babylonian civilization. When Peter the Great, third in the Romanov Dynasty, became Russia’s ruler in 1696, Moscow’s influence began to expand. Peter strengthened the rule of the tsar and westernized Russia, at the same time, making it a European powerhouse and greatly expanding its borders. By 1918, the Russian empire spanned a vast territory from Western Europe to China.
As Peter the Great and his successors strove to consolidate their reign over this empire, major social, economic, cultural, and political changes were happening in the urban centers. Moscow led these changes, followed by St. Petersburg, which was built as a gateway to filter and channel western civilization through the empire. By fostering diversification through connectivity, specialization, and scale economies, these cities started the structural transformation of the Russian empire away from depending on commodities and limited markets in a way that more effectively served local demand.
The Soviet era altered this dynamic.
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A video about a “scientific accident that may change the world (or at least your battery life)” went “viral” in February. Researchers at University of California, Los Angeles, found a way to make a “non-toxic, highly efficient energy storage medium out of pure carbon using absurdly simple technology,” says ReWire. The “graphene” battery is being touted as capable of “super-fast charging of everything from smartphones to electric cars,” according to ReWire. Responding to Climate Change (RTCC) asks whether the technology holds promise as a way to reduce greenhouse gas emissions. “Replacing heavier materials in vehicle manufacture with graphene, particularly in aircraft can lead to substantial fuel savings,” says RTCC. Gizmodo anticipates how graphene could transform the gadgets of the future.
To do this, we rely heavily on macroeconomic data from the national statistical office, the Ministry of Finance, the Central Bank and other sources. While this sounds straightforward enough (given it’s what economists around the world do when they compile their latest economic assessments) – it’s a rather indirect way to assess the issue.
At a time of fundamental uncertainty on global financial markets, how should the World Bank help countries respond? Mohamed El-Erian, CEO of the global bond management giant PIMCO, took on this question during his recent talk at the World Bank, which was part of the PREM seminar series. One of his answers may come as a surprise: Invest in girls' education!
First, some background: El-Erian is one of the most influential figures in the world of finance. His firm manages $1.8 trillion in assets, an amount that comfortably exceeds Japan's foreign-exchange reserves, and he's on Foreign Policy magazine's list of Top 100 global thinkers. As a longtime former IMF official, El-Erian is also intimately familiar with international financial institutions.