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Indonesia

My advice for future policymakers: See the public’s success as your success

Sri Mulyani Indrawati's picture
Also available in: Français | Español | العربية

Students line up to wash their hands before eating at Kanda Estate Primary School in Accra, Ghana. © Dominic Chavez/World Bank

The most important word in "public policy" is "public" — the people affected by the choices of policymakers.

But who are these people? And what do they care most about? Policies evolve as the concerns of generations change over time. Regardless of whether you are generation X, Y, or Z, people want the same things: prosperity and dignity, equality of opportunity, justice and security.

Panama Papers underscore need for fair tax systems

Sri Mulyani Indrawati's picture

High-rises and hotel buildings in Panama City, Panama. © Gerardo Pesantez/World Bank

The so-called “Panama Papers” scandal reminds us that concealing wealth and avoiding tax payments is neither uncommon nor — in many cases — illegal. But the embarrassing leak exposes something else: The public trust is breached when companies, the rich and the powerful can hide their money without breaking the law. If this breach is left unaddressed, those who aren’t rich enough to hide money will be less willing to pay and contribute to the social contract in which taxes are exchanged for quality services.

As finance minister in my home country of Indonesia, I saw firsthand how a weak tax system eroded public trust and enabled crony capitalism. Shadow markets arose for highly subsidized fuel, family connections secured jobs, and bribes helped public servants beef up their salaries. Tax avoidance among the elites was common and the country couldn’t mobilize the resources we needed to build infrastructure, create jobs, and fight poverty.

Why investing in forests is money—and time-- well spent

Tone Skogen's picture
Also available in: Português
Togo_Andrea Borgarello / World Bank

It is widely acknowledged that reducing emissions from deforestation could bring about one-third of the greenhouse gas emission reductions we need by 2030 to stay on a 2-degrees trajectory. But protecting and managing forests wisely does not only make sense from a climate perspective.  It is also smart for the economy. Forests are key economic resources in tropical countries. Protecting them would increase resilience to climate change, reduce poverty and help preserve invaluable biodiversity.

Here are just a few facts to illustrate why forests are so important. First, forests provide us with ecosystem services like pollination of food crops, water and air filtration, and protection against floods and erosion. Forests are also home for about 1.3 billion people worldwide who depend on forest resources for their livelihood. Locally, forests contribute to the rainfall needed to sustain food production over time. When forests are destroyed, humanity is robbed of these benefits. 

The New Climate Economy report shows us that economic growth and cutting carbon emissions can be mutually reinforcing. We need more innovation and we need more investments in a low carbon direction. This requires some fundamental choices of public policy, and the transformation will not be easy. However, it is possible and indeed the only path to sustained growth and development. If land uses are productive and energy systems are efficient, they will both drive strong economic growth and reduce carbon intensity.

Already, the world's large tropical forest countries are taking action. 

Por que investir nas florestas é dinheiro e tempo bem empregados

Tone Skogen's picture
Also available in: English
Togo_Andrea Borgarello / World Bank

É amplamente reconhecido que a redução de emissões provenientes do desmatamento poderia corresponder a um terço da diminuição das emissões de gases de efeito estufa necessária até 2030 para o planeta não aquecer mais de 2ºC. No entanto, proteger e gerenciar as florestas de forma prudente não somente faz sentido de uma perspectiva do clima. É também algo inteligente para a economia. As florestas são recursos econômicos de suma importância nos países tropicais. Protegê-las aumentará a resiliência às mudanças do clima, reduzirá a pobreza e ajudará a preservar a biodiversidade.

Seguem apenas alguns fatos para ilustrar por que as florestas são tão importantes. Primeiro, as florestas nos prestam serviços de ecossistema, tais como polinização de safras de alimentos, água e filtração do ar, bem como proteção contra inundações e erosão. As florestas também abrigam cerca de 1,3 bilhão de pessoas no mundo inteiro que dependem dos recursos florestais para subsistência. Em nível local, as florestas contribuem para a pluviosidade necessária para manter a produção de alimentos no correr do tempo. Quando as florestas são destruídas, esses benefícios são roubados da humanidade. 

O novo Relatório sobre a Economia Climática nos mostra que o crescimento econômico e a redução das emissões de carbono podem se reforçar mutuamente. Precisamos de mais inovação e mais investimentos para ter uma economia de baixo carbono. Isso requer certas escolhas fundamentais de política pública e a transformação não será fácil. No entanto, é possível e na realidade trata-se do único caminho para um crescimento e desenvolvimento sustentados. Se o uso da terra for produtivo e os sistemas energéticos forem eficientes, ambos impulsionarão um desenvolvimento econômico sólido e reduzirão a intensidade das emissões carbono.

Em âmbito mundial, os países com as grandes florestas tropicais já estão agindo.

Melihat dampak kebakaran hutan di Sumatra Selatan: Pandangan dari lapangan

Ann Jeannette Glauber's picture
Also available in: English
Indonesia, burned forest. Photo by Ann Jeannette Glauber / World Bank

Musim gugur lalu saya kaget membaca judul berita ini: Kebakaran hutan di Indonesia menghasilkan emisi gas rumah kaca setara seluruh ekonomi Amerika Serikat.
 
Judul lain berbunyi: Antara Juni dan Oktober 2015, lahan sebesar 2,5 juta hektar – atau 4,5 kali luas Bali – terbakar guna membersihkan lahan untuk produksi minyak kelapa sawit, tanaman hasil hutan non-kayu dengan nilai tertinggi, terdapat dalam, antara lain, produk makanan, kosmetik dan biofuel.
 
Belum lama ini, bersama Vice President for Sustainable Development Laura Tuck dan Indonesia Country Director Rodrigo Chaves, saya mengunjungi Sumatra Selatan, salah satu provinsi yang paling menderita akibat kebakaran hutan.
 
Kami melihat berbagai ilalang dan tanda-tanda lanskap rusak yang lain, mengganti kawasan hutan gambut yang kaya akan keanekaragaman hayati.
 
Kami berbicara dengan masyarakat setempat yang menjelaskan bahwa mereka menutup pintu dan jendela dengan handuk basah agar mengurangi asap. Keluarga mereka termasuk dari setengah juta warga yang menderita gangguan pernapasan serta sakit kulit dan mata akibat kebakaran hutan. Anak-anak mereka termasuk diantara 4,6 juta siswa yang tidak bisa sekolah, bahkan selama beberapa minggu, akibat kebakaran hutan.
 
Namun walaupun banyak keluarga kehilangan pemasukan karena usaha mereka terpaksa  tutup sementara, ada juga yang mengatakan api itu memperbaiki kondisi  tanah setempat.

Seeing the impact of forest fires in South Sumatra: a view from the field

Ann Jeannette Glauber's picture
Also available in: Bahasa Indonesia
Indonesia, burned forest. photo by Ann Jeannette Glauber / World Bank

This past autumn, I saw a shocking headline: Forest fires in Indonesia were creating as many greenhouse gas emissions as the entire United States economy.
 
Between June and October 2015, an estimated 2.6 million hectares—or 4.5 times the size of Bali— burned to clear land for production  of palm oil, the world’s highest value non-timber forest crop, used in food products, cosmetics, biofuels.
 
Recently, along with Vice President for Sustainable Development Laura Tuck and Indonesia Country Director Rodrigo Chaves, I visited South Sumatra, one of the provinces hardest hit by the fires.
 
We saw scrubby fire-adapted landscapes that had replaced biodiversity-rich peat swamp forests.
 
We spoke with local communities who explained how they covered doors and windows with wet towels, to help reduce the smoke.  These families are among the half million people who suffered from fire-related respiratory infections, skin and eye ailments; their children were among the 4.6 million students who missed school last year due to fires, some for weeks at a time.
 
While some of these families lost earnings or assets due to the fires, others spoke of how fire improves soil quality. 
 

What El Niño teaches us about climate resilience

Francis Ghesquiere's picture
It was recorded by the Spanish conquistadors, and triggered famines that have been linked to China’s 1901 Boxer Rebellion and even the French revolution.

Named by Peruvian fishermen because of its tendency to appear around Christmastime, El Niño is the planet’s most large-scale and recurring mode of climate variability. Every 2-7 years, a slackening of trade winds that push sun-warmed water across the Pacific contributes to a rise in water temperature across large parts of the ocean. As the heat rises, a global pattern of weather changes ensues, triggering heat waves in many tropical regions and extreme drought or rainfall in others.

The fact that we are undergoing a major El Niño event should cause major concern and requires mobilization now. Already, eight provinces in the Philippines are in a state of emergency due to drought; rice farmers in Vietnam and Thailand have left fields unplanted due to weak rains; and 42,000 people have been displaced by floods in Somalia.

And this is before the event reaches its peak. Meteorologists see a 95% chance of the El Niño lasting into 2016, with its most extreme effects arriving between now and March. Coastal regions of Latin America are braced for major floods; India is dealing with a 14% deficit in the recent monsoon rains; and poor rainfalls could add to insecurity in several of Africa’s fragile states. Indeed, Berkeley Professor Soloman Hsiang has used historical data to demonstrate that the likelihood of new conflict outbreaks in tropical regions doubles from 3% to 6% in an El Niño year.

But despite its thousand-year history, the devastation associated with El Niño is not inevitable. Progress made by many other countries since the last major event, in 1997-98, shows that we can get a grip on its effect – and others caused by climate trends.

EITI agenda advances despite divergent views

Charles Feinstein's picture
 
Photo by EITI

Tensions were high at the international Board meeting of Extractive Industries Transparency Initiative (EITI) in Berne, Switzerland.  EITI Board members, 20 in all, including civil society representatives, investors, managers of multinational corporations, and implementing and supporting country officials, debated stridently for two days on issues like how EITI implementing countries are judged on whether they have met the requirements of the “Standard” set by the EITI. As my first EITI Board meeting, I was surprised to find such divergent views on operational issues when we clearly all agree on the end goal: increasing transparency in the extractive industries to decrease the space for corruption and enhance the development impact of revenues from the sector. 

In 2013, EITI raised the bar of transparency with the introduction of a new Standard that requires more detailed reporting on extractive company and state owned enterprise payments, government receipts and a broader range of contextual information on the sector in EITI implementing countries. The first batch of reports produced under the Standard arrived between late 2014 and early 2015. Many EITI countries have so far struggled to meet the enhanced requirements of the Standard and concerns have been raised about how they will be assessed when they undergo the validation process (the quality assurance process that leads to the judgement of compliance with the EITI Standard). 

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