A solid business environment can help fragile states rebuild (Credit: World Bank)
One and a half billion people live in areas affected by fragility, conflict or large-scale organized criminal violence. Their hope at a better life is often marred by the realities that exist around them. It is indeed a vicious cycle as one of the findings from the Word Bank’s World Development Report 2011: Conflict, Security and Development, confirms that lack of economic opportunities and high unemployment are key sources of fragility.
However, it is not completely hopeless in fragile states. Our work in the World Bank Group shows us daily that a favorable business environment in which entrepreneurs are enabled provides an opportunity for people to escape poverty. The key question is-- how can we build a solid business environment in fragile states to ensure strong private sector-led growth?
Agribusiness can help Nepal's products claim a larger share of the global market (Credit: World Bank)
Take a moment and think about where you would go for the best tea, coffee or dumplings. Would a country like Nepal rank high on your list, or for that matter even be on your go-to list? For a majority of people, maybe not immediately. Yet I would argue that the country should actually rank very high on your list (in full disclosure, this post and report are about agro-processing in Nepal).
On the flip side, the question for the Nepalese and interested agro-processors comes back to, well how do we make it rank at the top of anyone’s list? The food is already above standards and extremely palatable, thus it wouldn’t be very difficult to market. And imagine the type of marketing and branding that could be used; Himalayan grown, grown in the cool climates of the Tibetan mountains, and so on.
The failure of SIFIs could set off a global financial disaster (Credit: istock photo, BrianAJackson)
The Global Financial System can’t stand another systemic shock. Even as efforts are rallying to accelerate the recuperation of global financial systems, regulators should remain vigilant for possible deterioration. Restoring financial stability through recovery plans and extended interventions using public funds mandates closer monitoring of the financial markets as well as additional measures to minimize the likelihood and severity of potential outcomes if systemically important financial institutions (SIFIs) were to fail.
A culture of angel investment could help entrepreneurs in developing countries (Credit: infoDev)
Investors and ‘Africanists’ Wesley Lynch and Keet van Zyl, co-founders of AngelHub in South Africa had fascinating things to say about early-stage innovation financing during infoDev’s Global Forum on Innovation and Technology Entrepreneurship in South Africa. Not only did they help in selecting the most inspiring entrepreneurs for the Forum’s Dragons’ Den pitching contest, they were putting forward a lot of passion in explaining how a culture of angel investment for startups and fledging entrepreneurs could be established on the African continent. As access to finance is noted often as the main problem for innovative startups, we should look seriously at models that show potential.
Will any government be brave enough to let a big bank fail? (Credit: Ian Kennedy, Flickr Creative Commons)
Five frightening years after the meltdown of the global financial system – with the world’s advanced economies stuck in a painful slump – policymakers are still struggling to reinvigorate job growth. If the unemployed were awaiting some tangible initiative from this summer’s G8 summit, they were surely disappointed: Last week’s G8 summit communiqué offered only boilerplate assertions that “decisive action is needed to nurture a sustainable recovery and restore the resilience of the global economy.”
The financial fiasco of 2008 left human wreckage in its wake. An additional 120 million people worldwide were plunged into poverty at the nadir of the crisis, wiping out years of development progress. According to the World Bank's most recent World Development Report, there are now about 200 million unemployed worldwide; 1.5 billion only marginally employed in tenuous jobs; and 2 billion dropouts from the workforce.
(Credit: CIAT, Flickr Creative Commons)
Ces quelques dernières années, un élan d’optimisme a porté le Rwanda au rang d’exemple à suivre en Afrique. Ce phénomène découle, il me semble, des nombreuses réformes lancées par le gouvernement rwandais pour stimuler le secteur privé, ainsi que du taux de croissance impressionnant qu’a connu le pays. Entre 2006 et 2011, le revenu par tête du Rwanda a augmenté de 5,1 pourcent en moyenne par an, soit la cinquième meilleure performance en Afrique sub-saharienne, et bien au-delà de la moyenne régionale de 2,4 pourcent. De plus, le Rwanda se place aujourd’hui au troisième rang des pays d’Afrique sub-saharienne en matière de qualité du climat des affaires telle que mesurée par l’index Ease of Doing Business du groupe Banque mondiale. Dès lors, la question se pose: le Rwanda est-il bien le nouvel exemple à suivre en Afrique ?
The G8's actions on 'beneficial ownership' are a breakthrough in the fight against financial crimes (Credit: James Lauritiz,Digital Vision Collection, Getty Images)
The move was momentous and, until a few weeks ago, quite unexpected. In a push to tear down the walls of corporate secrecy, the G8 has just committed to ensuring that each of its members will have immediate access to the identity of the so-called “beneficial owner” - the individual who ultimately pulls the strings behind companies- in their jurisdiction. Not very long ago talk of “beneficial ownership” was the domain of a handful of policy wonks and the odd NGO; now it’s taken center stage.
The G8’s statement represents a major breakthrough in fighting financial crime, corruption and tax evasion. Law enforcement and regulatory action have been hampered for far too long by the lack of access to information on the individuals who, ultimately, benefit from the ill-gotten gains stashed away in a variety of exotic sounding entities around the world. The seemingly impenetrable barriers of corporate secrecy have been lifted and the walls are coming down.
The financial crises has entered a new, difficult phase (Credit:©iStockphoto.com/Photomorphic)
The Thirteenth Annual Financial Sector World Bank/Federal Reserve/International Monetary Fund Seminar on Policy Challenges for the Financial Sector was held on June 5 to 7th, attracting more than 90 participants from over 60 countries. There were many distinguished speakers, including World Bank President Jim Yong Kim, IMF Managing Director Christine Lagarde and Federal Reserve Chairman Ben Bernanke. One of the highlights was a provocative lunchtime address on The Contradictions of System Stability: One Asian View by Andrew Sheng, the President of the Fung Global Institute.
With as many as 12 million mobile phone users, mobile is booming in Afghanistan (Credit: USAID, Flickr Creative Commons)
Afghanistan has made significant progress in its development since 2001. Yet, these achievements remain fragile due to a volatile security situation and limited human capacity. Of an estimated 30 million inhabitants, 46 percent is under the age of 15 and with high population growth, the country is experiencing a classic youth bulge. In addition, literacy rates remain at extremely low levels (approximately 43% for men and 12% for women).
Does Rwanda's impressive growth tell the whole story? (Credit: CIAT, Flickr Creative Commons)
Over the last few years, a lot of optimism has been built around Rwanda being the next big thing in Africa. I guess one reason for this optimism is Rwanda’s impressive list of business friendly reforms and its equally impressive growth performance. Between 2006 and 2011, per capita income in Rwanda grew at an average rate of 5.1 percent per annum, fifth highest in Sub-Saharan Africa (SSA) region and much better than the regional average rate of 2.4 percent. Moreover, Rwanda currently ranks third in the region in the quality of the business environment as measured by the World Bank Group’s Ease of Doing Business index. So, is Rwanda really the next big thing in Africa?