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Private Sector Development

Closing the gender finance gap: Three steps firms can take

Heather Kipnis's picture
Despite eye-opening market potential — women control a total of $20 trillion in consumer spending —  they have somehow escaped the notice of the private sector as an engine for economic growth.  Women are 20 percent less likely than men to have an account at a formal financial institution. Yet a bank account is the first step toward financial inclusion.

Why is it important for the private sector to help with this first step?
 
In increasingly competitive global markets, companies are searching for ways to differentiate themselves, to deepen their reach in existing markets and to expand to new markets. Greater financial access for women would yield a growing market opportunity with phenomenal profit potential for companies. The size of the women’s market, and the resulting business opportunity, is striking:
 
  • Business credit: There is a $300 billion gap in lending capital for formal, women-owned small businesses. Of the 8 to 10 million such businesses in 140 countries, more than 70 percent receive few or no financial services.
  • Insurance Products: The Female Economy, a study in the Harvard Business Review, reported that the women’s market for insurance is calculated to be worth trillions of dollars.
  • Digital payments: Women’s lack of cellphone ownership and use means that millions cannot access digital-payment systems. Closing the gap in access to this technology over the next five years could open a $170 billion market to the mobile industry alone.
 

Greater financial access for women would yield a growing market opportunity with phenomenal profit potential for companies.


For the past several years at IFC, I’ve been working with the private sector, namely financial institutions, to address the supply-and-demand constraints that women face when trying to access the formal financial system. IFC tackles these constraints in three ways:
 
  • Defining the size of the women’s market, female-owned and  -led SMEs, and as individual consumers of financial services
  • Showing financial institutions how to tap into the women’s market opportunity by developing offerings that combine financial products, such as credit, savings and insurance, with non-financial services such as training in business skills
  • Increasing women’s access through convenient delivery channels, such as online, mobile and branchless banking

Setting the stage for African success in global value chains

Anabel Gonzalez's picture

Women work in a greenhouse outside of Bamako, Mali, that is growing watermelons, sweet peppers, tomatoes, and other vegetables. Photo © Dominic Chavez/World Bank.As world trade and investment have increasingly become organized around “value chains” – production lines that cross borders – Africa has struggled to reap the benefits of this trend, even as Asian and Latin American countries churned out cars, microchips, and textiles for consumers across the globe.

Some modern developments suggest that this could be changing – as global production networks have become more sophisticated, encompassing a wider variety of products and processes, they could provide new opportunities for African economies. But critical to success in this new environment are a good business climate, political will, and ease of trade on the continent.

We are issuing a call to action: On Thursday, as part of the World Bank-IMF Spring Meetings, the World Bank Group and Africa investor will host a panel discussion with African entrepreneurs, government officials, and other experts that you can watch online here: “Building African Participation in Global Value Chains.” The discussion will focus on how the different stakeholders – including businesses, banks, and governments – can work together to build African brands capable of creating jobs and increasing the continent’s role and influence on the global economic stage.

If you want to go far, go together

Jana Malinska's picture

A new global network of Climate Innovation Centers will support the most innovative private-sector solutions for climate change.
 
Pop quiz: What does an organic leather wallet have in common with a cookstove for making flatbread and a pile of recycled concrete?
 
Believe it or not, each of these represents something revolutionary: a private sector-driven approach to climate change. Each of these products – yes, even concrete – is produced by an innovative clean-tech company. And as of March 26th, those businesses, and hundreds more like them, have something else in common. They’re connected through infoDev's newly established global network of Climate Innovation Centers (CICs), an innovative project that is taking the idea of green innovation beyond borders.
 
Having piloted the CIC model in seven different countries – Kenya, South Africa, the Caribbean, Ethiopia, Morocco, Ghana and Vietnam – it was time for infoDev, a global entrepreneurship program in the World Bank Group’s Trade and Competitiveness Global Practice, to follow a time-honored business practice: to scale up and take this movement global.

And so, as part of last month’s South Africa Climate Innovation Conference, we joined forces with 14 experts from the seven different countries where the CICs operate to establish the foundations of the world’s first global network devoted to supporting green growth and clean-tech innovation.



CIC staff debate and discuss the new CIC Network during the South Africa Climate Innovation Conference.

This global network of Climate Innovation Centers – business incubators for small and medium-sized enterprises (SMEs) – has been designed to help local ventures take full advantage of the fast-growing clean-technology market. The infoDev study “Building Competitive Green Industries” estimates that over the next decade $6.4 trillion will be invested in clean technologies in developing countries. An even more promising fact is that, out of this amount, about $1.6 trillion represents future business opportunities for SMEs, which are important drivers of job creation and competitiveness in the clean-tech space.

Baltički autoput podataka: Kada ćemo mi imati balkanski?

Natalija Gelvanovska's picture
Izvor fotografije: Data Logistics Center
Pre par meseci su Estonija, Letonija i Litvanija završile petogodišnju gradnju Baltičkog autoputa – kičme širokopojasne mreže koja koristi prednosti postojećih optičkih kablova koji poseduju tri baltička energetska postrojenja. Optička kičma dugačka 3000km prolazi kroz baltički region povezujući nove mega centre za podatke u severnoj Evropi Talinu sa čvorištem za podatke zapadne Evrope u Frankfurtu i ima mogućnost daljeg povezivanja sa Rusijom i Belorusijom. Izgradnja i funkcionisanje baltičkog autoputa je odličan primer regionalne saradnje i zajedničke infrastrukture.
 
Baltički autoput je proizvod nekoliko aktera - Data Logistics Center (deo od Lietuvos Energija, državne holding kompanije litvanskih snabdevača energijom), Latvenergo (državne kompanije za električnu energiju u Letoniji), i Televõrk (podružnica privatne energetske firme Eesti Energia iz Estonije). Za razliku od drugih ova mreža je građena tako što su kablovi sa optičkim vlaknima polagani preko visokonaponskih dalekovoda i gasovoda koji pripadaju energetskim kompanijama, umesto korišćenja različitih segmenata operatera za telekomunikacije koji su već bili “priheftani”. Sada klijenti baltičkog autoputa imaju mogućnost da koriste regionalnu infrastrukturu iz jedne tačke.

Autostrada Baltike e të dhënave: Kur do e ketë Ballkani një të tillë?

Natalija Gelvanovska's picture
Foto nga: Data Logistics Center
Para disa muajve, Estonia, Letonia dhe Lituania kanë përfunduar ndërtimin 5 vjeçar të autostradës së Baltikut - rrjet backbone i broadbandit (brezit të gjerë) i cili shfrytëzon asetet e kabllos optike të tri kompanive energjetike Baltike. Backboni fibër pa nyje prej 3000 km që përshkon tërë regjionin e Baltikut, lidhë mega qendrat e të dhënave të Evropës së veriut në Talin me hubat e të dhënave të Evropës perëndimore në Frankfurt dhe ka mundësinë e zgjerimit të lidhjes me Rusinë dhe Bjellorusinë. Ndërtimi dhe operimi i autostradës së Baltikut është shembull i shkëlqyeshëm i bashkëpunimit regjional dhe i bashkëndarjes së infrastrukturës.
 
Autostrada Baltike është krijuar nga Data Logistics Center (pjesë e Lieuvas Energija, kompani shtetërore aksionare e furnizuesit Lituanez të energjisë), Latvenergo (kompani energjetike shtetërore e Letonisë), dhe Televork (subsidiar i firmës private energjetike Eesti Energia në Estoni). Për dallim nga të tjerët, ky rrjet është ndërtuar duke shtruar kabllon optike përgjatë linjave energjetike të tensionit të lartë dhe gypat e gazit të cilat i përkasin kompanive energjetike, e nuk janë përdorur segmentet e ndryshme të rrjeteve të operatorëve të telekomit të cilat janë të "arnuar së bashku". Tani klientët e Autostradës së Baltikut kanë mundësinë e shfrytëzimit të infrastrukturës regjionale pa nyje nga nj pikë e vetme.

Now that there's a Baltic Data Highway, when will we have one for the Balkans?

Natalija Gelvanovska's picture
Photo credit: Data Logistics Center
In January, Estonia, Latvia and Lithuania finished the five-year construction of the Baltic Highway – a broadband backbone network that takes advantage of fiber-optic assets from three Baltic energy and utility entities. The Highway is a seamless fiber backbone of 3,000 kilometers (1,864 miles) across the Baltic region, connecting Northern Europe’s new mega-data centers in Tallinn to Western Europe's data hub in Frankfurt, Germany, with the possibility of extending connections to Russia and Belarus.

The construction and operation of the Baltic Highway is a great example of regional cooperation and infrastructure sharing — and there are many lessons we can learn from it.
 
The Baltic Highway was created by Data Logistics Center (part of Lietuvos Energija, a state-owned holding company of Lithuanian energy suppliers), Latvenergo (a state-owned electric utility company in Latvia) and Televõrk (a subsidiary of private energy firm Eesti Energia in Estonia). Unlike previous data highways, this network was built by laying optical fiber over high-voltage electricity lines and gas pipelines that belong to energy companies, as opposed to using different segments of telecommunications networks that have been “stitched together.” Today, Baltic Highway clients have the opportunity to utilize one seamless regional infrastructure system from a single point.

What would it take to implement a similar project in the Balkans?

Building skills for more technology entrepreneurship in Beirut

Hallie Applebaum's picture


The World Bank collaborated with local Lebanese technology communities to host Open Innovation Week in Beirut at the end of February, bringing speakers from prominent US-based institutions, such as Google, Stanford University, and the Massachusetts International Technology (MIT) for “tinkering with a purpose”. That purpose was to harness the power of open source tools to fix problems and build up their technology and entrepreneurship skills. 

Expectations for a Paris climate agreement & the role of carbon pricing

Dirk Forrister's picture
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Dirk Forrister, CEO and president of the International Emissions Trading Association (IETA), talks about expectations for a 2015 international climate agreement in Paris.
 

History in the making: 'Policy relevance' and long perspective, with the Spring Meetings starting a series of summits

Christopher Colford's picture

History “is a critical science for questioning short-term views, complicating simple stories about causes and consequences, and discovering roads not taken. Historical thinking – and not just by those who call themselves historians – can and should inform practice and policy today. . . . History can upset the established consensus, expand narrow horizons, and ‘keep the powerful awake at night.’ In that mission lies the public future of the past.” -- "The History Manifesto"
 
Lace up your running shoes and summon your stamina: At the starting line of the Spring Meetings sprint, policymakers and economy-watchers are now poised for an adrenaline-fueled week of debates on diplomacy and development at the World Bank Group and the International Monetary Fund.
 
History hangs heavily over the Bank and Fund this week, amid an animating awareness that “2015 is the most important year for global development in recent memory,” as World Bank Group President Jim Yong Kim declared in a speech last week at the Center for Strategic and International Studies. In an environment that has provoked dire warnings by the IMF’s Christine Lagarde about the danger of prolonged low-growth, high-unemployment “secular stagnation” – with “the new mediocre” threatening to become “the new normal” – this week’s meetings will be just the starting-point in a series of events in 2015 that could define the development agenda for decades.

A July conference in Addis Ababa will determine the financing mechanisms for future development initiatives. A September summit at the United Nations in New York will adopt a detailed set of Sustainable Development Goals. A December forum in Paris will adopt – or reject – a worldwide treaty to restrain climate change. Along the way, the Bank and Fund will convene policymakers – in Lima rather than Washington – for the Annual Meetings in October.

Pulling off a success at any one such summit would be a dramatic achievement. Delivering triumphs at all three summits might require masterstrokes of diplomacy.

“When we look at the longer-term picture,” said Kim in his CSIS speech, “we see that the decisions made this year will have an enormous impact on the lives of billions of people across the world for generations to come." The challenges that Kim and Lagarde analyzed in their pre-Spring Meetings speeches require “governments [to] seize the moment” – starting this week – if they hope for success in the Addis-UN-Paris trifecta.
 

Crystallizing a digital strategy in the "Pearl of Arabia"

Dr. Salim Sultan Al-Ruzaiqi's picture
Known as the “Pearl of Arabia“ for its stunning landscapes and rich cultural heritage, the Sultanate of Oman is also striving to adopt economic reforms that are in accordance with global market expectations and demands of our time. The country is currently undergoing a transition to a knowledge-based economy as outlined in its economic vision 2020. Information and communication technologies are at the core of this transformation, serving as the key enabler of economic diversification.
 
A view of Muscat, Oman's capital.
Photo: Andrew Moore, flickr

Oman’s national e-Governance initiative — which is called eOman — came into effect in 2003 and since then has been serving as the main framework for Oman’s digital transformation, including ICT industry and infrastructure development, creation of better public services and development of human capital. Since 2009, Oman has been consistently recognized by the United Nations Public Service Programme for its efforts.
 
We asked Dr. Salim Sultan Al-Ruzaiqi, Chief Executive Officer of the Information Technology Authority (ITA) of Oman — the agency responsible for the implementation of eOman strategy — to share with us the key solutions his agency has been working on to tackle the country’s development challenges and to highlight some of the lessons learned. Read Dr. Al-Ruzaiqi’s selected responses below, or download the full version of the interview here

Can you tell us some of the key points of the Oman Digital Strategy (e.oman)?
Let me start first by emphasizing that His Majesty’s grand vision of diversifying the Omani economy was the key driver of embarking on developing and implementing e.oman. This grand vision was set out in the economic vision 2020 that included transforming Oman into a sustainable knowledge based society. In His address to Oman Council in November 2008, His Majesty stressed the need to develop the technological and practical skills of citizens and provide them with the resources and training required to enhance their capabilities and incentivize them to seek knowledge. His Majesty also directed the Government to simplify processes, adopt technology in its daily operation, and focus on electronic delivery of its services.

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