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Financial Sector

Three Lessons Learned on the Road to Gender Equality

Bahar Alsharif's picture
What is a game changer for women in business and management? That was the topic on everyone's mind at the Confederation of British Industry (CBI) HQ in London this week. I had joined private sector leaders, including representatives from employer organizations around the world, for a one-day conference organized by CBI, the International Finance Corporation (IFC), and the International Labour Organization (ILO). Together, we reflected on latest research, shared best practices, and identified approaches to overcoming "stubborn bottlenecks" in achieving greater gender diversity at top. 
 

Achieving Universal Financial Access by 2020: what the private sector, governments and multilaterals must do

Nina Vucenik's picture
What needs to happen for everyone in the world to have access to a transaction account by 2020? And, more importantly, why does it matter?

This was the issue the president of the World Bank Group, UN Secretary-General, UN Secretary-General’s Special Advocate for Inclusive Finance for Development, private and public sector leaders discussed at an event, Universal Financial Access 2020, during the 2015 World Bank Group-IMF Spring Meetings.

5 ways universal financial access can help people build a better life

Gloria M. Grandolini's picture
Also available in: 中文 | Français | Español | العربية



Transaction accounts can open up access to those currently left out of the banking system, providing a basic entry point, or pathway, to broader financial inclusion

Financial inclusion: Stepping-stone to prosperity

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

In Pakistan, Salma Riaz, right, shows Saba Bibi how to use her new cell phone to receive payments. © Muzammil Pasha/World BankTwo and a half billion people in the world do not have access to formal financial services. This includes 80% of the poor — those who live on less than $2 a day. Small businesses are similarly disadvantaged: As many as 200 million say they lack the financing they need to thrive.

This is why we at the World Bank want men and women around the world to have access to a bank account or a device, such as a cell phone, that will let them store money and send and receive payments. This is a basic building block for people to manage their financial lives.

Why is this so important? Financial inclusion helps lift people out of poverty and can help speed economic development. It can draw more women into the mainstream of economic activity, harnessing their contributions to society. And it will help governments provide more efficient delivery of services to their people by streamlining transfers and cutting administrative costs.

A step out of poverty

Studies show that access to the financial system can reduce income inequality, boost job creation, and make people less vulnerable to unexpected losses of income. People who are "unbanked" find it harder to save, plan for the future, start a business, or recover from a crisis.

Being able to save, make non-cash payments, send or receive remittances, get credit, or get insurance can be instrumental in raising living standards and helping businesses prosper. It helps people to invest more in education or health care.

Islamic sukuk: A promising form of finance for green infrastructure projects

Michael Bennett's picture
Also available in: العربية
Casablanca traffic. Arne Hoel/World Bank


Three trends in the  global financial market are converging to make sukuk, the Islamic financial instrument most similar to a conventional bond, a potentially viable form of finance for green investments: (1) banks are reluctant to finance infrastructure due to stricter capital requirements; (2) an increasing number of investors are interested in ‘environmentally sustainable investing’ (in other words, investing to promote activities seen as positive for the environment); and (3) the market for sukuk  is growing significantly. While these three trends are distinct and not obviously related, taken together, they create a market opportunity for sukuk to be used as a tool to finance environmentally sustainable infrastructure projects.
 
The need for significant infrastructure spending is obvious in both developed and developing countries. From crumbling transportation infrastructure in the United States to inadequate power generation capacity in India, the evidence is clear that improving infrastructure is a global priority. At the same time, popular concern about climate change and the detrimental impact of increasing greenhouse gas emissions has also made improving infrastructure in an environmentally sustainable manner a priority.

Rising Financial Pressures from the East

Aurora Ferrari's picture
It’s hard to get a break in the Europe and Central Asia region, it seems – even a short one. Hit hard by the troubles in the Eurozone at the beginning of the decade, emerging and developing countries in Eastern Europe are, at the beginning of this year, contending with renewed fears. Meanwhile, external pressures have built up on the Central Asia side as well.

All eyes turned to Russia recently, when on 16 December the ruble plunged by more than 11 percent, despite the Central Bank of Russia’s last-minute interest rate hike of 6.5 percentage points to 17 percent. When it looked like Russia’s turmoil might spread to global markets, western economies sat up and paid close attention.

What may have gone unnoticed, however, is the ongoing impact on our client countries in the Europe and Central Asia region.

Managing EU Funds – What We Can Learn from Slovenia

Maya V. Gusarova's picture
Effective management of European Union (EU) funds is not only high on the agenda of the new EU member states but also of the Western Balkan countries that are progressing in the EU integration process. As such, these countries face several important challenges and questions today.

On becoming an EU member, how much will the budget calendar and its preparation need to change? How best to plan and execute projects which are pre-financed? How to record unspent EU funds in the next fiscal year? To what extent should the Ministry of Finance be involved in the process before the signing of financial agreements with the EU? These and other questions arise in relation to the impact on a country’s fiscal position, co-financing obligations, pre-financings and bridging resources, and payment of errors.

Remittances: A Gateway to Financial Inclusion for Poor People

Gloria M. Grandolini's picture
Also available in: العربية | Español | Français
As the United Nations marks International Migrants Day, it’s worth remembering that over 230 million people in the world are migrants. Whether they’re mothers or fathers, daughters or sons, wives or  husbands,  they left home to look for work elsewhere, usually abroad, to support families left behind.

Supporting Entrepreneurs: Breaking Down Barriers for Access to Finance

Irene Arias's picture
Also available in: Español

​Small and medium sized companies are the backbone of Latin America’s economy. They represent more than 90 percent of all enterprises in the region, generating over half of all jobs and a quarter of the region’s gross domestic product. They are essential to economic growth, yet their success is often blocked by one key obstacle: lack of credit. Nearly a third of companies in the region identified lack of credit as a major constraint, according to recent surveys.

Take the case of Sonia Arias, who owns a small textile business in Medellin, Colombia. When she opened her business seven years ago, she took an informal loan that left her with sky-high interest rates and little cash to reinvest. “When I was paying these loans,” she said, “it felt like we were being hit with a stick.”

How Can Innovative Financing Solutions Help Build Resilience to Natural Disasters?

Francis Ghesquiere's picture
Resilience Dialogue 2014


By Francis Ghesquiere and Olivier Mahul

This week, the Resilience Dialogue, bringing together representatives from developing countries, donor agencies and multilateral development banks, will focus on financing to build resilience to natural disasters. 

There is growing recognition that resilience is critical to preserving hard won development gains. The share of development assistance supporting resilience has grown dramatically in recent years. New instruments have emerged in particular to help client countries deal with the economic shock of natural disasters. In this context, an important question is which financial instruments best serve the needs of vulnerable countries? Only by customizing instruments and tools to the unique circumstances of our clients, will we maximize development return on investments. Clearly, low-income countries with limited capacity may not be able to use financial instruments the same way middle-income countries can. Small island developing states subject to financial shocks where loss can exceed their annual GDP face vastly different challenges than large middle-income countries trying to smooth public expenditures over time or safeguard low-income populations against disasters.

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