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How much should Bhutan worry about debt?

Yoichiro Ishihara's picture
Bhutan hydropower
Construction of the Dagachhu Hydropower Plant in Bhutan. Photo Credit: Asian Development Bank

In many respects, Bhutan has been a development success story. Its people have benefitted from decades of sharp reductions in poverty combined with impressive improvements in health and education. The country is a global model in environmental conservation. It is the first carbon negative country; Bhutan’s forests, which cover over 70% of the country, absorb more carbon dioxide than is produced by its emissions.

The Kingdom of Happiness also must grapple with the reality of managing budgets, creating infrastructure, and preparing its citizens to be able to create and take advantage of jobs of the future. To do that, we are working with closely with Bhutan to build the foundations for a more prosperous future through the cultivation of a vibrant private sector economy and supporting green development.

At the same time, Bhutan has invested generously in hydropower energy production to create a reliable and lasting source of green energy for its people. It also benefits from exporting excess electricity to neighboring India, whose energy needs continue to increase at a rapid pace with their growing economy.

In large part due to the hydropower investments, Bhutan’s public debt was 107 percent of the Gross Domestic Product (GDP) as of March 2017. Hydropower external debt was at 77 percent of GDP with non-hydropower external debt accounting for 22 percent of GDP. Questions have arisen on whether this level of debt is sustainable and what should be done to address it.

Women and finance: unlocking new sources of economic growth

Ceyla Pazarbasioglu's picture


From basic financial services to board rooms, strengthening women’s role in finance is one of the keys to boosting economic growth.

In every country, women and men alike need access to finance so that they can invest in their families and businesses.  But today, 42% of women worldwide – about 1.1 billion – remain outside of the formal financial system, without a bank account or other basic tools to manage their money.   
 

Towards a single market for public procurement in Caribbean small states

Shaun Moss's picture
Building seawalls. Photo: Lauren Day/World Bank

The first ever meeting of the Heads of Procurement of the Organization of Eastern Caribbean States (OECS) took place on June 20-21 in Barbados with the dark storm clouds of Tropical Storm Bret as the backdrop. Fittingly, the discussion focused on how to create a common market for public procurement and to use procurement as a tool to better prepare for and respond to the natural disasters endemic to the region.

It’s not about the ‘Left’ or ‘Right’, but about ‘power’

Suvojit Chattopadhyay's picture

 John Ferguson/OxfamIn our theatres of war, brought to us live on primetime television and on social media, we are presented with a rampant muscular ‘Right’ taking on an anti-national ‘Left’. But if you look closely, you will realise that the political and social conflicts that are being tagged as “Right vs Left” have almost nothing to do with the labels being used for them.

For instance, muscular nationalism today seems to belong to the ‘Right’, while all forms of dissent that makes the government see red denotes the ‘Left’, although this is not really the case if you consider Cold War-era communist regimes and their remnants. When it comes to society and culture, conservatives are ‘Right’ while progressives are the ‘Left. On matters relating to the economy though, free-marketers and innovators are on the ‘Right’, while those favouring state intervention are on the ‘Left’.

Essentially then, what we are witnessing around us is a pure play for power – power that extends into the lives of people. Researchers have studied ‘power’ extensively: Steven Lukes in his seminal work, Power: A Radical View, introduced us to a three-dimensional view of power: a continuum in ways one can exercise power, ranging from coercion to agenda-control to manipulation. Others, such as Lisa VeneKlasen and Valerie Miller, have termed the different forms Visible Power, Hidden Power and Invisible Power.

Women: The Hidden Figures Behind Côte d’Ivoire’s Economic Emergence

Jacques Morisset's picture



Politicians and economists often go to great lengths to scrutinize hundreds of pieces of data to identify complicated solutions, to the point of ignoring the obvious facts staring them right in the face! Although Côte d'Ivoire is devising complex strategies in a bid to achieve middle-economy status, it tends to overlook the role of women, who largely face deep inequalities that are difficult to ignore.

Climate in Crisis: How Risk Information Can Build Resilience in Afghanistan

Julian Palma's picture
Photo Credit: Rumi Consultancy/ World Bank
Afghanistan is vulnerable to a number of natural hazards, including earthquakes, flooding, drought, landslides and avalanches, as well as hazards arising from human interaction. Among low income countries, Afghanistan is second only to Haiti in terms of the number of fatalities caused by natural disasters between 1980 and 2015. In the last few years, however, the Afghan Government has increasingly understood how the consequences of extreme weather events and disasters add to existing security risks. Severe and prolonged droughts, for instance, have increased food insecurity, causing on average $280 million in economic damage to agriculture each year. Natural disasters and climate-related shocks affect 59 percent of the population, concentrated in economically poorer regions, as opposed to security-related shocks (15 percent).[1]
 
The availability of disaster risk information is particularly important for a fragile state like Afghanistan where 4 out of 5 people rely on natural resources for their livelihoods.[2] To strengthen resilience, investments in Afghanistan need to incorporate information on natural hazards in their planning, design and implementation. To help support government efforts, the World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR), in close cooperation with the Afghanistan National Disaster Management Authority (ANDMA), recently produced a comprehensive multi-hazard assessment level and risk profile[3], documenting information on current and future risk from fluvial and flash floods, droughts, landslides, snow avalanches and seismic hazards. The main findings, methodology and expected outcomes were recently discussed and presented to the Disaster Risk Management community of practice within the World Bank Group. A number of takeaways from the discussion are presented below:
 
What is Afghanistan’s risk profile and vulnerability?
  • Flooding is the most frequent natural hazard historically, causing average annual damage estimated at $54 million; large flood episodes can cause over $500 million in damage
  • Historically, earthquakes have caused the most fatalities, killing more than 10,000 people since 1980
  • 3 million people are at risk from very high or high landslide hazard
  • Droughts have affected 6.5 million people since 2000; an extreme drought could cause an estimated $3 billion in agricultural losses, and lead to severe food shortages across the country;
  • An estimated 10,000 km of roads (15 percent of all roads) are exposed to avalanches, including key transport routes like the Salang Pass

Bangladesh: Building resilience in the eye of the storm (Part 2/3)

Sameh Wahba's picture

Photo: Swarna Kazi / World Bank

This is the second of a three-part series, "Resilience in the of the Eye of the Storm," on how Bangladesh has become a leader in coastal resilience.

 
With a population of 160 million, Bangladesh is situated at the epicenter of some of the deadliest cyclones the world has ever experienced. Catastrophic events are the norm rather than the exception. A severe tropical cyclone can strike every 3 years and 25% of the land floods annually.
 
The network of the mighty Ganges-Brahmaputra-Meghna rivers makes its meandering journey through the delta into the Bay of Bengal forming the coast of Bangladesh.
 
The jagged coastline of Bangladesh spans hundreds of miles and is subject to multiple challenges: 62% of the coastal land has an elevation of up to 3 meters and 83% is up to 5 meters above sea level. These low-lying areas are highly vulnerable to natural hazards.
 
Earlier this year, I got a chance to see first-hand the challenges that this demanding landscape had brought onto the communities of a remote coastal village. What struck me most when speaking to members of this coastal community was their courage and resilience. Aware that a calamity can hit anytime, they struggle to protect their livelihoods affected by saltwater intrusion, and their own lives which are increasingly at risk due to rising sea levels, and exposure to more frequent and devastating storms and cyclones.
 
By 2050, the coastal population is projected to grow to 61 million people, whose livelihoods will increasingly be at risk due to the impact of climate change.
 
Triggered by climate change, seawater inundation could become a major problem for traditional agriculture. According to the Intergovernmental Panel on Climate Change Fifth Assessment Report (2014), climate-related declines in food productivity will impact livelihoods and exports and increase poverty. In Bangladesh, it is estimated that these factors would cause a net increase in poverty of 15% by 2030.
 
To mitigate against such risks, the government has been investing in strengthening the resilience of the coastal zone. Over the years, Bangladesh has become an example of how protective coastal infrastructure, together with social mobilization and community-based early warning systems, is helping to build resilience.

To achieve #Housing4All, don't throw the baby out with the bathwater

Luis Triveno's picture
This page in: Français

Mexico City. Photo by VV Ninci via Flickr CC

In a world divided over how to deal with such serious problems as terrorism, immigration, free trade, and climate change, governments agree on the urgency of solving what is arguably the biggest problem of all: supplying safe, well-located, and affordable housing for the billions of people who need it.

There is even agreement on the basic steps to that goal:  improving land management and adopting more tenure-neutral policies.

There is also consensus on the fact that government alone cannot afford to pay the bill.  According to McKinsey & Co., the annual price tag for filling the “global housing gap” ($1.6 trillion) is twice the cost of the global investments needed in public infrastructure to keep pace with GDP growth.
 
As we approach the 70th anniversary in 2018 of the declaration of housing as a “universal human right,” it’s time for governments to turn to an obvious solution for closing the housing gap that they continue to ignore only at their peril: long-term market finance. Without a substantial increase in private capital, the housing gap will continue to increase, and so will the odds of social discontent.

Connecting on climate action and Sustainable Development Goals

Max Thabiso Edkins's picture


Global action on climate change to help achieve the Sustainable Development Goals was a key message delivered by the Italian Ministry of the Environment, Land and Sea at the United Nations High Level Political Forum in New York. All4TheGreen, the Ministry’s collaboration with the Connect4Climate program of the World Bank Group, was presented as an important case-study to encourage citizen engagement to achieve a sustainable future. All4TheGreen was a week of more than 80 events in the lead-up to the recent G7 Environment minister’s meetings in the cultural and academic hub of Bologna, Italy.


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