From the smallest rural villages in Bangladesh to the large, bustling metropolitan centers of Cairo or Istanbul, small and medium enterprises (SMEs) are the lifeblood of Islamic communities around the world, keeping local economies humming.
I first became interested in the potential of leveraging Islamic finance to grow SMEs when I led a seminar on the topic in 1997. I’ve come full circle, almost 20 years later, when I had the opportunity to speak last month in Istanbul at a conference on “Leveraging Islamic Finance for SMEs” organized by the World Bank Group, the Turkish Treasury, the Islamic Development Bank and TUMSIAD, the largest association of SMEs in the country with 10,000 members.
Private Sector Development
Financial products must be adapted to women’s needs, like enabling them to open their own account or improving their financial literacy. Photograph: World Bank Photo Collection
Two billion people worldwide still lack access to regulated financial services. Despite significant progress and the increased technical and financial resources devoted to financial inclusion, much work remains ahead.
There is broad consensus that access to a transaction account can help people better manage their life and plan for emergencies.
But financial access and the underlying financial infrastructure taken for granted in rich countries, such as savings accounts, debit cards or credit as well as the payment systems on which they operate, still aren’t available to many people in developing countries. This past September, I participated in the Global Policy Forum of the Alliance for Financial Inclusion (AFI) held in Mozambique. This annual meeting convened policymakers, the private sector and other stakeholders to assume new commitments, discuss best practices and agree on the way forward.
More than 700 million people live in extreme poverty around the world. If that number seems daunting, then consider this: 1.1 billion people – more than three times the population of the United States – live without electricity.
So it goes without saying that ending energy poverty is a key step in ending poverty itself. And world leaders agree – a sustainable development goal just for energy was adopted last month. It emphasizes the role of renewable energy in getting us to the finish line of reaching sustainable energy for all by 2030. What will give us a big boost in that race? Private financing.
Tomorrow morning, Pope Francis will kick off the UN General Assembly’s session on the Sustainable Development Goals (SDGs) and by the end of the day, the world’s leaders will have affirmed the 17 goals. This is a momentous occasion, worth celebrating, but the hard work begins Monday morning. That’s when the focus shifts from what to how.
The first 16 goals cover a range of critical development needs, expanding on the Millennium Development Goals that have guided development efforts since 2000. The final SDG is qualitatively different. Rather than expound on what we want to achieve, it addresses how we will achieve the goals. It focuses on the means of implementation.
By encouraging private investment in infrastructure, we can spur growth in the developing world
Later this month the United Nations is expected to finalize its Sustainable Development Goals, a global action plan designed to end poverty and support long-term growth. One of the goals states, “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.”
In many parts of the developing world, from Asia to Latin America, a massive infrastructure shortfall may be the single most significant obstacle to human and economic development. Addressing it will underpin progress on many of the SDGs.
Since childhood, Gircilene Gilca de Castro dreamed of owning her own business, but struggled to get it off the ground. Her fledgling food service company in Brazil had only two employees and one client when she realized she needed deeper knowledge about what it takes to grow a business. To take her business to that next level, she found the right education and mentoring opportunities and accessed new business and management tools.
- financial inclusion
- International Finance Corporation
- Goldman Sachs
- Small Businesses
- Overseas Private Investment Corporation
- Career & Money
- Income Inequality
- Gender Gap
- Private Sector Development
- East Asia and Pacific
- Latin America & Caribbean
- Congo, Democratic Republic of
- United States
I have been fascinated by the concept of frontier all my life. What brought us here? What’s next? As a kid, my favorite book was “Ten Thousand Whys,” a pop-science series with all kinds of seemingly trivial questions like “Why are there fewer stars in the sky in winter?”
I wrote my Ph.D. dissertation on the Production Efficiency Frontier Theory — how to identify the most efficient units in a production network and measure the technical frontier. Later I became more of a macroeconomist and my interest expanded to identifying countries standing on the growth frontier. Subsequently, I began studying the deepest thinkers and became convinced that humanity is on an important new frontier of cosmic evolution.
This year, World Health Day on April 7th is dedicated to improving food safety from the farm to the plate. This is a timely reminder that food safety is a global public health issue: Foodborne disease causes suffering, death, reduced productivity, loss of wages, decreased trade competitiveness and access to markets and ultimately exacerbate poverty.
Unsafe food containing harmful bacteria, viruses, parasites or chemical substances is the root cause of more than 200 diseases, ranging from diarrhea to cancers. Foodborne and waterborne diseases kill an estimated 1.5 million people annually, including many children under the age of 5.
Thanks to a recent knowledge exchange program, yes!
As we can all imagine, Africa’s lush greenery and planted forests offer huge potential but the sector’s expansion faces major barriers like access to land, lack of access to affordable long-term finance and weak prioritization of the sector.
Take Ethiopia, for example. About 66.5 million cubic meters of the country (46% of total wood-fuel demand) is subject to non-sustainable extraction from natural forest, wood- and scrublands, resulting in deforestation and land degradation. In Mozambique, charcoal is still produced from native forests, leading to immense pressure on natural resources, and way beyond its regeneration capacity. Both countries want to know how the forest sector can contribute to their national development plans and help grow their economies and reduce rural poverty, while being environmentally sustainable.
This topic is of even more importance as we celebrate the International Day of Forests on March 21, and helps us raise awareness on the need to preserve forests and use this natural wealth in a responsible and sustainable manner.