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October 2017

“Better Planning, Better Cities” – Cities to share smart solutions to urban sustainability

Xueman Wang's picture

At a meeting of the Asia Society in New York last week, Prime Minister Sheikh Hasina of Bangladesh, estimated that a 1 degree increase in the planet’s temperature (we are already at .8 degrees) would cost her country 3-4% of its GDP growth annually. At the same time, DARA, a European-based NGO, and the Climate Vulnerability Forum released the second Climate Vulnerability Monitor, which estimates that climate change is already costing the world 1.6% of GDP growth globally, and contributing to over 400,000 deaths. The report, written by over 50 scientists, economists and policy experts, also estimates that by 2030 climate change and air pollution combined could cost the world 3.2% of growth globally, and up to 11% in the world’s least developed countries. 

I spent  nine of the last 20 years living in Africa, watching the continent struggle terribly with negative growth in the 90’s, fight its way to positive growth and eventually celebrate a 5-8% growth rate that allowed many African countries to put a serious dent in poverty. But clearly, those hard won gains in poverty reduction and development are at risk, and sooner than we thought. The most important message of DARA’s report is that climate change is not just a problem for future generations.

But as former President José María Figueres of Costa Rica reminded a United Nations General Assembly audience last week, climate change also presents an enormous economic opportunity. Bloomberg’s New Energy Finance reported that over $1 trillion was invested in clean energy last year. And the feeling is that this figure could be much higher if we could just figure out the policies and financial instruments to unleash capital in the direction of green growth. So which path will we seize for our changing climate? The one which builds on the growth and development of past decades or the one which leads to the grim prospect of losing hard fought gains against poverty? The race to choose is on, and for those of us whose dream is a world free of poverty, for those of us who couldn’t bear to see Africa return to the economic and social struggles of the 90’s, we’d better get sprinting.

So today ─ against this very compelling background ─ we launch our new Climate Policy and Finance Department (CPF) at the World Bank. This department brings together the Climate Change team, the Climate Investment Funds (CIFs) Admin Unit, the Carbon Finance program, the GEF and Montreal Protocol teams around this essential question: what can the World Bank Group do to help countries take climate action at a faster speed and larger scale, and turn climate change into an engine for growth?

Global Investment Competitiveness: New Insights on FDI

Anabel Gonzalez's picture

It is easy enough to find data on flows of foreign direct investment (FDI). There are also plenty of anecdotes out there that purportedly encapsulate what businesses worldwide are thinking. It is far more difficult, however, to establish rigorous connections between global investment trends and individual investment decisions by international companies. In the World Bank Group’s newly published Global Investment Competitiveness Report 2017–2018, our team does just this, combining new survey data, rigorous econometric analysis, and extensive literature reviews to reveal what is going on behind the headline numbers.



Here are some of the key takeaways:
 

Reflections on the fifth anniversary of the Open Knowledge Repository

Elisa Liberatori Prati's picture


This blog post is a part of the International Open Access Week blog series. 

Five years ago, the World Bank Open Knowledge Repository (OKR) was launched, making the most recent publications and research easily discoverable and freely available to the general public. Stuart Tucker, the OKR’s Curator, was there from the very beginning. He shares his thoughts and experiences in today’s blog. We also invite you to join us online for our International Open Access Week panel discussion today from 2:00-3:30pm ET at live.worldbank.org.
 


When it was first suggested that the World Bank should have an Open Access “repository,” I joined a small team charged with designing and building it.  As I attended my first Open Repository conference, I witnessed the blossoming field of activity within the Open Access community.

Measuring South Asia’s economy from outer space

Martin Rama's picture
New technologies offer an opportunity to strengthen economic measurement. Evening luminosity observed from satellites has been shown to be a good proxy for economic activity.
New technologies offer an opportunity to strengthen economic measurement. Evening luminosity observed from satellites has been shown to be a good proxy for economic activity.
Economic growth is a key concern for economists, political leaders, and the broader population.

But how confident are we that the available data on economic activity paints an accurate picture of a country’s performance?

Measuring Gross Domestic Product (GDP), the most standard measure of economic activity, is especially challenging in developing countries, where the informal sector is large and institutional constraints can be severe.

In addition, many countries only provide GDP measures annually and at the national level. Not surprisingly, GDP growth estimates are often met with skepticism.
 
New technologies offer an opportunity to strengthen economic measurement. Evening luminosity observed from satellites has been shown to be a good proxy for economic activity.

As shown in Figure 1, there is a strong correlation between nightlight intensity and GDP levels in South Asia: the higher the nightlight intensity on the horizontal axis, the stronger the economic activity on the vertical axis.
Figure 1 Nightlight intensity increases with economic activity
Figure 1 Nightlight intensity increases with economic activity

However, measuring nightlight is challenging and comes with a few caveats. Clouds, moonlight, and radiance from the sun can affect measurement accuracy, which then requires filtering and standardizing.

On the other hand, nighlight data has a lot advantages like being available in high-frequency and with a very high spatial resolution. In the latest edition of South Asia Economic Focus, we use variations in nightlight intensity to analyze economic trends and illustrate how this data can help predict GDP over time and across space.

Social inclusion: Let’s do things differently to end poverty!

Maninder Gill's picture



The launching of the iPhones 8 and X and the advent of genomic-based precision medicine for disease treatment and prevention, are new reminders that technological innovation is fueling momentous change in our daily lives. Indeed, as Professor Klaus Schwab, the chairman of the World Economic Forum describes, the physical, digital and biological trends underpinning what he calls 'the fourth industrial revolution', are unleashing changes “unlike anything humankind has experienced before.”  

Are you reaping the full benefits of the technology revolution?

Sara Sultan's picture

Women and girls are particularly affected by the lack of safe and accessible water, sanitation and hygiene (WASH). They suffer during menstruation and childbirth, and also carry the burden of hours spent collecting water when is it not easily accessible, causing them to miss school and risk rape and harassment. To address this, women and girls are emphasized in Sustainable Development Goal (SDG) #6: “By 2030, achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations.”
 
While anecdotal evidence is important — and well known — it is critical to also collect data and indicators to quantify the problems, to sensitize and inform stakeholders, and ultimately, to find solutions. However, we are struggling with a global lack of monitoring to collect such data.

Questions for policymakers seeking to create or restructure a national educational technology agency

Michael Trucano's picture



After a decade of strong growth in the late 1970s and early 1980s, Cameroon was compared favorably with fast-growing East-Asian economies. This fame came to a sudden stop in the late 1980s when the country experienced one of the world’s deepest and most protracted recessions, triggered by large fall in the terms of trade and appreciation of the real exchange rate. Debts - previously at reasonable levels - mounted, banks failed and poverty increased. A 50% devaluation of the CFA Franc, a currency Cameroon shares with other former French colonies, in January 1994 pushed the foreign-currency denominated debt to increase to over 100 percent of GDP, triggering the Heavily Indebted Poor Countries (HIPC) debt relief process. Cameroon successfully exited HIPC in 2006. Since then, the authorities have set the goal to become a middle income country by 2035, anchoring their growth strategy on building infrastructure. After some initial success, with real growth steadily increasing from 1.9% in 2009 to 5.9% in 2014, the country is facing again some fiscal strains and risk of its debt distress has risen from low to moderate to high, in just 3 years.

Developing East Asia and Pacific – a balancing act

Sudhir Shetty's picture

Developing East Asia and Pacific (EAP) is rightly touted as the success story of development. While the much-touted East Asian Miracle seemed to have stalled with the onset of the Asian Financial Crisis 20 years ago, the region rebounded quickly thereafter and regained its status as the world’s fastest-growing developing region. As impressive has been how well it has weathered the global crisis a decade ago. The numbers below tell the story.

“Nudge units” – where they came from and what they can do

Zeina Afif's picture

This is the sixth in this year’s job market series 
                                                                          
Labor misallocation is believed to be a key driver of differences in income across countries (Hsieh and Klenow 2010). However, the causes of this misallocation are not always well understood and there is little evidence on what interventions can improve the allocation of workers in the economy. These issues are particularly important in Sub-Saharan Africa, where worker mobility from low to high productivity sectors is often limited (McMillan, Rodrick and Verduzco-Gallo 2014).
 
My job market paper provides new experimental evidence from Ethiopia showing that subsidizing job applications can reduce inefficiencies in the allocation of workers’ talent.

A new generation of CEOs: Running a business in West Africa as a woman

Alexandre Laure's picture

Also available in: Français

What is it like to set up and run an incubator as a woman? The answer, much like anywhere else in the world for working women, is that it’s complicated.

In many countries, it’s still unusual to see women working in certain sectors. Regina Mbodj, CTIC Dakar CEO, knows very few women in Senegal who studied ICT. “When I came home and told people about my studies, a lot of people responded, 'I thought only men did that!'"

Mariem Kane, an engineer by training and now president of Mauritania’s incubator Hadina RIMTIC, said that career development can be difficult for women who have been trained in hard skills. “It’s tough for women to find opportunities in these sectors and, because we’re considered more suited to softer skills, we aren’t given the opportunity to prove ourselves.”


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