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Financial Sector

Women rise to unlock opportunities for SDG implementation

Mahmoud Mohieldin's picture
Lucy Odiwa, an entrepreneur in Tanzania whose firm, promotes safer and more sustainable methods for handling menstrual health hygiene management (MHM) won the first place in the SDGs&Her competition. © Womenchoice Industries

Visit any community and you will see women breathing life into every part of the economy and society, be it in agriculture, healthcare, marketing, sales, manufacturing, or invention. Through their presence in every walk of life, women make significant contributions to the 2030 Agenda, including its 17 Sustainable Development Goals (SDGs), the most ambitious set of goals that the international community has ever set for itself
 
However, despite representing 50% of the population, women remain over-represented among the world’s poorest and most vulnerable groups and under-represented as leaders and drivers of change. The lack of recognition of women’s contributions, particularly through their businesses and economic activities, has severely limited their access to finance, new markets and knowledge – necessary for economic growth and poverty reduction.

Ten Years after Lehman: Where are we now?

Asli Demirgüç-Kunt's picture

The tenth anniversary of the collapse of Lehman Brothers is a good opportunity for us all to reflect on the global financial crisis and the lessons we have learned from it. By now, there is widespread agreement that the crisis was caused by excessive risk-taking by financial institutions. There were increases in leverage and risk-taking, which took the form of excessive reliance on wholesale funding, lower lending standards, inaccurate credit ratings, and complex structured instruments. But why did it happen? How could such a crisis originate in the United States, home to arguably the most sophisticated financial system in the world? At the time, my colleagues and I argued incentive conflicts were at the heart of the crisis and identified reforms that would improve incentives by increasing transparency and accountability in the financial industry as well as government. After all, if large, politically powerful institutions regularly expect to be bailed out if they get into trouble, it is understandable that their risk appetite will be much higher than what is socially optimal.

Protecting Somalia’s growing mobile money consumers

Thilasoni Benjamin Musuku's picture



The mobile money market is booming in Somalia. Approximately 155 million transactions, worth $2.7 billion or 36% of gross domestic product (GDP), are recorded every month. Mobile money accounts for a high proportion of money supply in the domestic, dollarized economy and has superseded the use of cash; seven out of 10 of Somalis use mobile money services regularly.

Sowing the seeds for rural finance: The impact of support services for credit unions in Mexico

Miriam Bruhn's picture

Low and volatile agricultural incomes, poor connectivity, low population density and limited information are just a few reasons that have kept commercial banks away of rural areas in developing countries, where nonbank financial institutions (such as MFIs, cooperatives, or credit unions) have played an important role.

However, these rural institutions tend to be small and often suffer from bad risk management, poor governance, and weak technical and managerial capacity. These constraints are in turn passed on to the borrowers in the form of higher interest rates and credit rationing. The lack of human and organizational capital among lenders is a type of market failure where public interventions may be both effective and market friendly (Besley, 1994).

Helping East Africa attract investment in priority sectors

Axel van Trotsenburg's picture
© Sarah Farahat/World Bank
© Sarah Farhat/World Bank

This month’s Development Finance Forum is bringing together public and private sector leaders to talk about how we can drive more private finance in three sectors that are key to development in East Africa: agribusiness, housing finance and tourism. The region’s leaders see these as critical to sustained growth, job creation and long-term economic transformation for their countries.

The World Bank Group sponsors the Forum annually to connect key stakeholders who, by working together, can change the investment landscape in the least developed countries. We aim to pinpoint what each major player can contribute, as well as explore promising ideas, initiatives and partnerships that need an extra impetus to succeed. It’s an exciting time to be an investment partner in the region with its extremely dynamic economies and a lot of innovation taking place.

When elephants fight, it is the grass that suffers

Mark Moseley's picture


Photo: shplendid | Flickr Creative Commons

Talk of trade tariffs and heightened geopolitical tensions are dominating news headlines recently. As developed economies consider escalating protectionist policies, it’s easy to forget about the situation many emerging markets face.

As outlined in the World Bank’s Global Economic Prospects report released in June this year, protectionist policies would affect emerging market and developing economies (EMDEs) more severely than advanced economies. And this is at a time where increased investment and spending in EMDEs, including in infrastructure, is sorely needed.

How innovative financing can support entrepreneurship and sustainable livelihoods

Michelle Kaffenberger's picture
A fruit and vegetable stand in Kampala. Photo: Arne Hoel / World Bank

According to The Africa Competitiveness Report 2017, Africa is forecasted to produce just 100 million new jobs by 2035, while the working age population is projected to grow by more than 450 million. The fastest population growth will occur in the 15 to 35-year-old demographic.  This growing working-age population presents both an opportunity and a potential risk to Africa’s future prosperity. To ensure these new workers engage in productive livelihoods and prevent significant increases in extreme poverty and civil unrest, governments will need to enable job creation, including scaling cost-effective livelihood development programs targeting the extreme poor. Described below is a cost-effective approach which is yielding promising results and scaling through results-based financing.

A Catalyst for Green Financing in Indonesia

Philippe H. Le Houérou's picture



It is an unfortunate but fact of life that Indonesia often deals with the impacts of natural disasters. It was sadly evident again this week when I arrived in Jakarta to the unfolding disaster caused by the earthquake in Lombok, West Nusa Tenggara. My condolences go out to the families and friends of those who lost their lives.

While scientists are reluctant to say a specific natural disaster is caused by climate change, they say a changing climate is resulting in more extreme events around the world. That’s why at International Finance Corporation (IFC), the largest global organization working with the private sector in emerging markets, finding new avenues for climate financing is a key priority.

Green bonds offer a pathway. The world is witnessing a rapid growth in green bonds, dramatically increasing the flow of capital to green projects and bringing new financiers into the climate smart investment space.

From spreadsheets to suptech for financial sector market conduct supervision

Douglas Randall's picture

From Spreadsheets to Suptech for Financial Sector Market Conduct Supervision

Market conduct supervisors in the financial sector have a tough job. And it’s getting tougher.  

Their core work involves collecting data from disparate sources and undertaking complex analyses to identify and assess risks. They must also determine compliance with rules that are often principles-based. For example, what do complaints data, consumer agreements and marketing materials indicate about whether a financial service provider is treating its customers fairly?

Solving Africa’s currency illiquidity problem

David Bee's picture

Some 41 currencies serve the African continent. Many of these are characterised by their illiquid and rarely traded status on the global financial market, as well as their volatility. So for those wishing to do business with Africa, these currencies — as difficult and expensive to source — can pose a real problem.

From the Namibian dollar to the Seychellois rupee, it is vital that organisations are able to source emerging market currencies reliably, on time, and at competitive prices. Yet such necessities often elude those trading with Africa, who view currency concerns as one of the biggest barriers to the development of Africa as an emerging — and therefore high growth — opportunity for international investors.


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