Perspectives 56365 on Development Fall 2008 ~ CJ) "C o .c o (.) o (.) he World Bank Perspectives on Development Fall 2008 Published by Pressgroup Holdings Europe S.A. for the World Bank The Agricultural Research Council (ARC) is a premier science ins- titution that conducts fundamental and applied research with partners to generate new knowledge. develop human capital and foster innovation in agriculture. Its research and develop- ment fields include grains. industrial crops, horticulture. lives- tock and natural resources engineering. In its endeavour to address agricultural challenges that impact on the economy, the ARC focuses its research on areas of strate- gic importance such as biofuels, livestock. irrigation schemes and rehabilitation of degradable land. In addition to these strategic areas. the link between agricultu- re and the second economy is another imperative for the ARC. Its goal is to ensure that research contributes to rural develop- ment in a way that alleviates poverty, protects the environment and achieves sustainable food security. Address 1134 Park Street, Hatfield, Pretoria Postal Address: POBox 8783 Pretoria, 0001 - South Africa Tel: +27 (12) 427 9200 Fax: +27 (12) 342 3948 www.arc.agric.za ARC-LNR Excellence in Research and Development Some of the excellent work that the ARC is undertaking for the second economy includes: · Developing and introducing enabling cultivars to overcome production cons- traints. developing low-cost production and pest control systems, identifying and improving indigenous crops. and transferring and training farmers in appropriate technologies. · The ARC continues to be intimately involved in establishing community poverty-relief projects. · Vital information is made available by the ARC on improved cultivars. production practices and disease control. · Training courses are given and field trials on crops are undertaken. · Research and development technology transfer interventions are made to empower new commercial producers to develop. · Training of farmers in technologies such as hydroponics is conducted · Market studies on soil. climate. and infrastructure are undertaken to determine potential crops that can be grown locally. 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Hib Vaccine ( Lyophilized) 212/2, Hadapsar, Pune-411 028, India. Diphtheria, Tetanus, Pertussis with Phones: +91-20- 26993900104 Fax: +91-20-26993924/21 Hib Vaccine ( Lyophilized) E-mail: serumexports@vsnl.com www.seruminstitute.com World's largest producer of DPT and MMR Groups of Vaccines Contents · 7. Introduction to the World Bank Group 15. Message from the President of the World Bank and Chairman of the Board of Directors 26. An Inclusive and Sustainable Globalization I. ional Perspective · p 50. Africa 58. East Asia and Pacific 64. South Asia 72. Europe and Central Asia 78. Latin America and the Caribbean 84. Middle East and North Africa · P II 92. Achieving Low Carbon Growth for the World 98. Low Carbon, High Hopes: Making Climate Action Work for Development 102. Low Carbon Growth: Our Ethical Responsibflity 108. China's Move toward a Low Carbon Economy 112. Adaptation Activities in India 116. Old Livelihoods in New Weather 122. Climate Change Challenges Faced by the Inuit 124. Pacific Islands under Threat! 128. CI ~ mate Change and Insurance Markets 136. Microfinance: Climate Change Connections 140. Adapting to Climate Change in Africa 144. Bali Climate Conference and Its Main Outcomes 148. Challenges and Opportunities: Knowledge for Development under Climate Change · e· . . . . . . ."' . . . . . ""'.""'Olr ... Do~'o.r o s 152. Monitoring the Millennium Development Goals: Selected Indicators · 172. World Bank Publications 2008 5 COM(.ell~ worldwide Le ading the fight against global hunger 850 million people battle hunger every day. It's a fight that must be won. And it can be. Through partnership between governments, international organisations, corporations , ordinary people and international NGOs like Concern Worldwide. CONTACT DETAILS Drawing on 40 years ' experience , we 're leading the search for innovative solutions . 52-55 Lower Camden Street Pioneering new approaches to treating acutely malnourished children in their own Dublin 2, IRELAND communities with ready-to-eat food. +353-1-417-7700 Exploring how modern technology can get cash aid quickly and effectively to people 13 & 14 Calico House, affected by food shortages . Clove Hitch Quay London SW11 3TN, UK Solutions can be found . +44 207 801 1850 Through partnership. Through innovation . Through Concern Worldwide . 104 East 40th Street New York 10016, USA + 1-212-557 -8000 Committed to a world without poverty www.concern.net to the World Bank Group The World Bank Group Missio To fight poverty with passion and professionalism for lasting results. To help people help themselves and their environment by providing resources, sharing knowledge, building capacity, and forging partnerships in the public and private sectors. International Bank for Reconstruction and Development International Development Association To promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. International Finance Corporation To promote foreign direct investment into developing countries to help support economic growth, reduce poverty, and improve people's lives. Multilateral Investment Guarantee Agency 7 Perspectives on Development Fall 2008 __ I In ro ___ -., " to the World Bank Group Introduction e live in a world that is both very rich and W very poor. The average person in some countries earns more than $40,000 a year-$110 a day. But in this same world, around 2.5 billion people-almost half the developing world's population-live on $2 or less a day. Of these, about 1 billion earn less than $1 day. For these people, the Conceived in 1944 to many effects of poverty are life-altering. For example, reconstruct war-torn in developing countries, an estimated 33,000 children die every day from avoidable causes, and every minute Europe, the World Bank at least one woman dies in childbirth. Poverty Group has evolved into one additionally keeps more than 100 million children- most of them girls-out of school. of the world's largest sources of development To further complicate matters, many obstacles exist that make it difficult for people to escape poverty's assistance, with a mission grasp . Inadequate infrastructure hinders access to of fighting poverty with health care, education, jobs, and trade; poor health and lack of education, in turn, deprive people of pro- passion by helping people ductive employment; and corruption, conflict, and help themselves. poor governance waste public resources and private investment. In the face of such obstacles, the challenge of reducing poverty is both enormous and complex. But with the world's population growing by an estimated 3 billion people over the next 50 years, and with the vast majority of those people residing in developing countries, it is a challenge that must be met. The World Bank Group, also referred to as the Bank BOX 1 Group, is one of the world's largest sources of funding Millennium Development Goals and knowledge for developing countries. Its main focus is on helping the poorest people and the poorest countries. Through its five institutions, the Bank Group uses financial resources and extensive experience to help developing countries reduce poverty, increase · Eradicate extreme poverty and hunger economic growth, and improve the quality of life. The twin pillars of its strategy for reducing poverty are · Achieve universal primary education supporting the creation of a favorable investment climate, and in empowering poor people. · Promote gender equality and empower women The range of interventions includes support for · Reduce child mortality sound governance, sustainable development, inclusive delivery of social services, improved infrastructure, pri- · Improve maternal health vate sector development, and job creation. The Bank Group's work focuses on achievement of the · Combat HIV/AIDS, malaria, and other diseases Millennium Development Goals (MDGs), which call for eliminating poverty and achieving sustained · Ensure environmental sustainability development (box 1). The goals are used to set the Bank Group's priorities and they provide targets and · Develop a global partnership for development yardsticks for measuring results. They are the Bank Group's road map for development. 8 f=.\..~ I Perspectives on Development Fall 2008 I I. Introduction to the World Bank Group i The Five World Bank Group Institut,ons · The International Bank Jor Reconstruction and Development lends to governments of middle-income and creditworthy low-income countries. The International Development Association provides interest-free loans-called credits-and grants to governments of the poorest countries. The International Finance Corporation provides loans, equity, and technical assistance to stimulate private sector investment in developing countries. The Multilateral Investment Guarantee Agency provides guarantees against losses caused by noncommercial risks to investors in developing countries. The International Centre Jor Settlement oj Investment Disputes provides international facilities for conciliation and arbitration of investment disputes. Even though the World Bank Group consists of five institutions, only the International Bank for Reconstruction and Development and the International Development Association constitute the World Bank. I Perspectives on Development Fall 2008 I P.-U 9 roduc ion to the World Bank Group I The Bank Group is managed by its member countries · a leader in the fight against corruption worldwide, (borrowers, lenders, and donors), whose representatives · a strong supporter of debt relief, maintain offices at the Bank Group's headquarters in Washington, DC. Many developing countries use Bank · the largest international financier of biodiversity Group assistance ranging from loans and grants to tech- projects, and nical assistance and policy advice. All Bank Group efforts are coordinated with a wide range of partners, · the largest international financier of water supply including government agencies, civil society organizations and sanitation projects. (CSOs), other aid agencies, and the private sector. Over the past 20 years, the Bank Groups focus has For more information about the World Bank Group, changed, and so has its approach. Issues related to gender, visit www.worldbankgroup.org. community-driven development, and indigenous peoples are now integral to the Bank Group's work. We welcome comments on this publication Today, the World Bank Group is as well as on the many projects and activities of the Bank Group institutions. To provide comments, visit · the world's largest funder of education, www.worldbank.org and click on "Contact Us" or send an email to feedback@worldbank.org. · the world's largest external funder of the fight against HIV/AIDS, The Jordan Enterprise Development Corporation OE) A National Tool to Develop Private Sector Enterprises The JE mission is to develop, care for and support enterprises in the Kingdom and increase exports and export opportunities to targeted regional and international markets. Objectives and Services: 1. Upgrading enterprises by providing tailored business solutions. 2. Increasing Jordan's exports of goods and services, by utilizing preferential trade opportunities. 3. Continuously improving enterprise/product competitiveness to meet the needs of a dynamic global market through: · Providing advice to enterprises in preparing, formulating their strategies and assessing their needs. · Providing the necessary technical and financial assistance to improve competitiveness and to reinforce skills and administrative, technical and exporting capabilities. · Developing technical capabilities to undertake studies, research and development. · Contributing to national export development and improvement according to government policy. · Establishing trade centers and exhibitions and opening markets inside and outside the Kingdom. · Preparing studies and research. For further information, please contact: Exporters Services Directorate Tel. + 962 6 5603 507 - Fax. + 962 6 5684 568 - Email: info@jedco.gov.jo - Website: www.jedco.gov.jo Carbon Black Goes Green The globe is littered with millions ofscrap tires, discarded in landfills and stockpiles, posingboth a health and an environmental threat. CBp Carbon Industries (CBp) presents the first environmentally sensitive, commercially viable process for the 100% recycling of scrap tires to produce marketable products. The CBp tire recycling process produces steel, oil (diesel fuel) and 'Carbon GreenTM' a commercial substitute for carbon black. The CBp process also produces gas to generate heat and electricity to power its facilities. This pyro-gas and oil can also be diverted to co-generation facilities to provide 'green' electricity directly to the power grid. After testing tire reclamation technologies from around the world, the European Union Recycle Tire Project Team selected the CBp technology as lithe best commercially available recycle tire technology" and the only one capable ofrealizing the EU's tire recycling goals. "CBp Carbon presents the paradigm for an e ee - .- innovative technological solution to a global environmental problem... e ··· - and the promise of CBpCarbon a greener world." www.cbpcarbon.com John T. Novak President, CEO jnovak@cbpcarbon.com Message from the President and Chairman Message from P t the ' residen, of the World n Bank a, d Chairman of the Board of Executive Directors 008 has been an important year for the World new Climate Investment Funds, to help developing 2 Bank Group. This year, we have developed six strategic priorities to focus our effort. countries test innovative approaches, create a new body of experience , and implement sustainable development strategies. We are giving particular attention to the poorest countries, especially in Africa. Bringing opportunity We are focusing on opportunity in the Arab and growth to these countries means quality educa- World . In the Middle East, even those countries that tion, especially for girls; addressing disease, malnu- are rich in resources are faCing demographiC chal- trition, and clean water; and many other soci9.1 lenges, and they will need to find ways to generate development topics. It involves a growth agenda: jobs, broaden their growth, and create hope. We infrastructure, energy, regional integration linked to have been advancing areas of cooperation, including global markets, and a healthy private sector. This Islamic finance, water, and education. past year, people across the Bank Group worked hard to achieve a record-setting IDA15 of $41. 7 bil- We are also becoming a more effective learning lion, representing a 30 percent increase over IDA14, organization, forming new partnerships, gaining to offer a big boost to those most in need. In April, knowledge and valuable experience, and becoming a we launched an initiative to link Sovereign Wealth better partner to other donors and multilateral agencies Funds with equity investment in Africa, to help by leveraging the best global knowledge to support Sub-Saharan Africa reach its potential as another development. This involves focusing on serving our pole of growth for the global economy. clients and ensuring that we are devoting attention to solving problems, not just analyzing them. This The Bank Group is also focused on development in may be our most vital task, and we have much work states in fragile situations or affected by conflict. This ahead of us. is the modern version of the challenge the Bank faced after World War II, when the International Bank for In recent months, the Bank Group has been espe- Reconstruction and Development helped reconstruct cially focused on responding to the double jeopardy Europe and Japan. Today, we are trying to help of high food and energy prices that threaten to push Liberia , Afghanistan, Haiti, Kosovo, and others. millions back into poverty. The World Bank Group is working with the UN and other international We are addressing the challenges of Middle partners to identify particularly vulnerable coun- Income Countries. This year, we achieved the first tries requiring immediate assistance. In May, the reduction in loan prices in over a decade, along Bank Group created a $1.2 billion Global Food with simplification of processes, extension of matu- Crisis Response FaCility to respond quickly to the rities, and improved access to risk management needs of our clients. At the same time, we are assisting tools . We are developing a host of knowledge and countries to increase production and productivity financial services to help these important clients, across the agricultural value chain , to transform and we are working with them as they expand their today's food problem into a growth opportunity. To activities in other countries, so as to broaden and respond to the impacts of higher energy prices, the diversify the stakeholders in the international eco- Bank Group is both working to address short-term nomic system. needs and scaling up public and private sector projects that enhance sustainable energy access for The Bank is increasing work on global public the poor, efficiency of energy consumption and/or goods, from HIV/AIDs, avian influenza, malaria, TB, supply, and diversification of energy sources to and health systems to pull this work together, to the reduce risk. challenges of global climate change, both adaptation and mitigation. This year, we launched the Forest We are completing the implementation of the rec- Carbon Partnership Facility and Carbon Partnership ommendations of the Volcker Report, which will Program to help developing countries pursue lower- help us set a higher standard for integrity and per- carbon growth paths. The Board also approved our formance . These initiatives will enhance transparency 15 Perspectives on Development Fall 2008 I In roductlo and prevention, clarify responsibilities, strengthen I follow-up actions when we discover fraud and corruption, and make us a stronger institution. This year we also launched our Governance and Anti- Corruption (GAC) strategy, a key foundation for our development work. We have undertaken country- level GAC processes in 27 countries, and are reshap- ing our Country Assistance Strategy (CAS) process and approach to programming. During fiscal 2008 the Bank Group committed $38.2 billion in loans, grants, equity investments, and guarantees to its members and to private busi- nesses in member countries-an increase of $3 .9 billion (11 .4 percent) from fiscal year 2007. IDA commitments were $11 .2 billion, 5 percent lower than the previous year. IBRD commitments in fiscal year 2008 totaled $13.5 billion. IFC commit- ted $11.4 billion for its own account and mobilized an additional $4.8 billion for 372 private sector investments in developing countries, more than 40 percent of which were in IDA countries. Of MIGAS $2.1 billion in guarantees, $690 million went to projects in IDA-eligible countries. MIGAS expo- sure in IDA countries now stands at $2.3 billion, representing 35.6 percent of its portfolio. We have built a good momentum, yet we have much to do to advance an inclusive and sustainable globalization that offers opportunities for all our client countries and their peoples. In clOSing, I want to thank the dedicated staff of the World Bank Group, in Washington and in offices in over one hundred other countries, who are com- mitted to transforming us into a more dynamic, flex- ible, and innovative institution. I also want to thank our Board of Directors, the Governors, and our many contributors and partners. To be most effective and successful, we will need their ongoing help and counsel. Robert B. Zoellick Excerpted, with changes, from the World Banll Annual Report 2008 (Washington, D.C: The World Bank 2008). 16 Perspectives on Development Fall 2008 The Siemens answer: An efficient energy cOllversion chain with the world's most efficient combined cycle gas turbine, saving up to 40,000 tons of CO 2 . Delivering environmentally friendly energy means: generating and transmitting power more efficiently while enabling a reliable distribution. Being the only company worldwide that offers solutions covering the entire energy conversion chain, we develop innovative ways to reduce emissions: for instance our newest gas turbine which will enable the combined cycle plant in Irsching, Germany to save up to 40,000 tons of CO 2 per year while powering a city of 3 million people. www.siemens.com/answers Answers for the environment. S EM NS 1.lntrodu The Board of Executive Directors he Executive Directors are responsible for the Effectiveness, Ethics, Governance and Administrative T conduct of the Bank's general operations; they perform their duties under powers delegated by the Board of Governors. As provided in the Articles of Matters, and Personnel. With the committees' help, the Board discharges its oversight responsibili- ties through in-depth examinations of policies Agreement, 5 of the 24 Executive Directors are appointed and practices. The Executive Directors' Steering by single-member countries having the largest number of Committee, an informal advisory body, meets shares; the rest are elected by the other member countries, regularly. which form constituencies in an election process con- ducted every two years. The resident Board of Executive Directors play an active role in preparing agendas Directors represents the evolving perspectives of member and issue papers for the semi annual meetings of the countries on the role of the Bank Group. joint World Bank-International Monetary Fund Development Committee. In fiscal 2008, Directors The Board decides on IBRD loan and guarantee considered a variety of documents, including the proposals and on IDA credit, grant, and guarantee fifth Global Monitoring Report, which reviewed proposals made by the President. Directors shape progress toward the Millennium Development Goals policies that guide general operations of the Bank (MDGs); the framework for the Bank's role in global and its strategic direction. They are responsible for public goods; a document on strengthening the presenting to the Governors at the Annual Meetings Bank's engagement with IBRD partner countries; a audited accounts, an administrative budget, and the strategic framework on climate change and economic Annual Report on the operations and policies of the development; and progress reports on the Bank Bank, and other matters that, in their judgment , Group's plans for promoting clean energy, spurring require submission to the Governors. The progress on Aid for Trade, and addressing food and Independent Evaluation Group (lEG), which reports energy prices. to the Board, provides independent advice on the relevance, sustainability, efficiency, and effectiveness Working jointly with the President of the World of operations. (See http://www.worldbank.orglboards Bank in support of the Bank Group's goal of inclusive and http://www.worldbank.orglieg.) and sustainable globalization, the Board helped shape implementation of the six strategic themes presented Directors serve on one or more standing commit- at the 2007 Annual Meetings. The themes focus on the tees: Audit, Budget, Committee on Development poorest countries, particularly in Africa; fragile and 18 Perspectives on Development Fall 2008 The Board of Executive Directors From left to right: (standing) Gino Alzetta, Svein Aass, Giovanni Majnoni, Herman Wijffels, Alexey Kvasov, James Hagan, Sid Ahmed Dib, Michael Hofmann, Masato Kanda, Mohamed Kamel Amr, E. Whitney Debevoise, Ambroise Fayolle, Michel Mordasini, Samy Watson, Felix Alberto Camarasa; (seated) Dhanendra Kumar, Abdulrahman Almofadhi, Zou Jiayi, Mat Aron Deraman, Caroline Sergeant, Jorge Humberto Botero, Mulu Ketsela, Louis Philippe Dng Seng. Not pictured: Jorge Familiar. postconflict states; middle-income countries; global these, 12 were prepared with IFC, and several were and regional public goods; expanding opportunity for prepared collaboratively with other donors. the Arab world; and knowledge and learning. (See http://www.worldbank.org.) Poverty Reduction During fiscal 2008, the Board approved the estab- lishment of a state- and peace-building fund. The The Board's work on poverty reduction continued Directors highlighted the principles of transparency to be heavily influenced by its determination to and internal governance, project integrity, anticorrup- accelerate progress toward halving world poverty by tion efforts, and cooperation with partners. In response 2015. It noted with concern that progress continued to the food crisis, the Board approved the Framework to be uneven across countries and sectors, and for a Global Food Crisis Response Program (GFRP) stressed the importance of sharpening the focus on and establishment of the Food Price Crisis Response the links needed to achieve the MDGs; coordinating (FPCR) Trust Fund and the proposed transfer out of donor support to ensure predictability of aid flows; IBRD's surplus to the FPCR Trust Fund. FollOWing the supporting country training, institutional capacity External Review Committee on Bank-IMF collabora- building, and the results agenda; and addreSSing tion, Directors considered the Joint Management issues to help the Bank Group meet Paris Declaration Action Plan, which provides a roadmap for effective on Aid objectives. Poverty Reduction Strategy Papers collaboration by the Bretton Woods institutions to (PRSPs) layout a country's own poverty reduction ensure consistent policy advice to member countries. strategy (PRS) and specify the policies, programs, During fiscal 2008, Directors visited Ethiopia, India, and resources needed to achieve development and Madagascar, Malawi, Maldives, Mongolia, Nepal, the poverty-reduction goals. PRSPs describe the coun- Philippines, Tunisia, and the Republic of Yemen to try's macroeconomic, structural, and social policies assess project implementation firsthand. and programs over the medium to long term, as well as associated financing. PRSPs and annual progress reports are country owned, and thus are discussed, Country Programs but not approved, by the Board and the IMF In fiscal 2008, 29 PRSP products were discussed. Africa During fisca l 2008, the Board considered accounted for 16 PRSP products; followed by Europe 49 Country Assistance Strategy (CAS) products. Of and Central Asia, and Latin America and the Perspectives on Development Fall 2008 I p:d 19 I. I du I n The Board of Executive Directors I Caribbean, with 4 each; 3 in South Asia; and 2 in East Asia and Pacific. IDA15 Donor countries pledged a record $25.2 billion for the World Bank to help overcome poverty in the poorest countries. In total the 15th Replenishment of IDA (IDA 15) will provide $41.7 billion, an increase of $9 .5 billion over IDAI4, the largest expansion in donor funding in IDA's history. The Executive Directors' Advisers, the IDA Deputies, played noteworthy roles in the IDA discussion prepara- tions, and numerous Directors and their staffs participated in the IDA Deputies' five replenishment meetings. The Board was pleased to endorse this most successful IDA15 in February 2008. It reiterated the importance of IDA's role in building government capacity to design appropriate debt management strategies and improve debt management. The Board also reviewed one Heavily Indebted Poor Countries (HIP C) Completion Point document, one Preliminary HIPC document, three HIPC Decision Point documents, and one Interim Debt Relief document. Oversight and Fiduciary Responsi bil ity The Board exercises oversight and fiduciary responsibilities, in part through its Audit Committee, which has a mandate to assist in overseeing and mak- ing decisions about the Bank Group's financial condi- tion, its risk management and assessment processes, the adequacy of its governance and controls, and its reporting and accounting policies and procedures. This year the Board addressed Significant reform and strengthening of the Bank Group's oversight andsup- porting systems. These included changes to the Department of Institutional Integrity, the Office of Ethics and Business Conduct, and several compo- nents of the Conflict Resolution System, and the introduction of a Whistle-Blower Policy for protected disc~osures. Administrative Budget The total budget for fiscal 2008 was $2,148.3 million, net of reimbursements, including $175.5 million for the Development Grant Facility and the Institutional Grant Programs. The net budget of $1,637.1 million represented a 2.9 percent increase over fiscal 2007. The Board approved a budget, net of reimbursements, of $2,179.1 million for fiscal 2009. 20 Perspectives on Development Fall 2008 Further Information at repsolypf.com ECONOMY Repsol, chosen the most trans- t oil company in the world r the second year in a row taken on a voluntary commitment to reduce its C0 2 emissions by one million tons during the time period of 2005-20 12 and that, already as of 2003, it has had a Carbon Management Plan. These e uutiatives. as well as oth. rs, have given Repsol YPF aprivilt'g(:d ranking in the Climate Leadership Index, ,1II1iC1lt inI:tlJllb the most advanced companies world I. n r duction The Board of Executive Directors I Executive Director Alternates Casting Votes of Appointed E. Whitney Debevoise a e Ana Guevara United States Toru Shikibu b c i Masato Kanda japan Michael Hofmannd Ruediger Von Kleist Germany Alex Gibbs b e Caroline Sergeant United Kingdom Ambroise Fayolle a d Alexis Kohler h France Elected Gino Alzetta d(c) Melih Nemli Austria, Belarus, Belgium, Czech Republic, Hungary, Kazakhstan, (Belgium) (Turkey) Luxembourg, Slovak Republic, Slovenia, Turkey Jorge Familiar c, e, i Jose Aleiandro Rojas Costa Rica , EI Salvador, Guatemala, Honduras, Mexico, Nicaragua, Spain, (Mexico) Ramirezo Venezuela, (Republica Bolivariana de) (Republica Bolivariana de Venezuela) Herman Wijffels a(VC), c, i(VC) Claudiu Doltu h Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, Israel, (Netherlands) (Romania) Macedonia (former Yugoslav Republic 00, Moldova, Netherlands, Romania, Ukraine Samy Watson b, c Ishmael Lightbourne Antigua and Barbuda, The Bahamas, Barbados, Belize, Canada, Dominica, (Canada) (The Bahamas) Grenada, Guyana, Ireland, jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines Rogerio Studartb Jorge Humberto Boteroh Brazil, Colombia, Dominican Republic, Ecuador, Haiti, Panama, Philippines, (Brazil) (Colombia) Trinidad and Tobago Giovanni Majnoni c(VC) Nuno Mota Pinto h Albania, Greece, Italy, Malta, Portugal, San Marino, Timor-Leste (Italy) (Portugal) James Hagan a, c Do Hyeong Kimh Australia, Cambodia, Kiribati, Korea (Republic 00, Marshall Islands, (Australia) (Republic of Korea) Micronesia (Federated States 00, Mongolia, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Vanuatu Dhanendra Kumar d, e(VC) Zakir Ahmed Khan h Bangladesh, Bhutan, India, Sri Lanka (India) (Bangladesh) Mulu Ketsela a, c, i(C) Mathias Sinamenye Angola, Botswana, Burundi, Ethiopia, The Gambia, Kenya, Lesotho, Liberia, (Ethiopia) (Burundi) Malawi, Mozambique, Namibia, Nigeria, Seychelles, Sierra Leone, South Africa, Sudan, Swaziland, Tanzania, Uganda, Zambia, Zimbabwe Svein Aasse(C) Jens Haarlov h Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, Sweden (Norway) (Finland) Javed Talat b, d Sid Ahmed Dib Afghanistan, Algeria, Ghana, Iran (Islamic Republic 00, Morocco, Pakistan, (Pakistan) (Algeria) Tunisia Michel Mordasinib(c). f Jakub Karnowski h Azerbaijan, Kyrgyz Republic, Poland, Serbia, Switzerland, Tajikistan, (Switzerland) (Poland) Turkmenistan, Uzbekistan Merza H. Hasan a, e, i Mohamed Kamel Amr Bahrain, Egypt (Arab Republic 00, Iraq, jordan, Kuwait, Lebanon, Libya, (Kuwait) (Arab Republic of Egypt) Maldives, Oman, Qatar, Syrian Arab Republic, United Arab Emirates, Yemen (Republic 00 Zou JiayiC(C) Yang Jinlin China (China) (China) Abdulrahman M. Ahnofadhia(C) Abdulhamid Alkhalifa Saudi Arabia (Saudi Arabia) (Saudi Arabia) Alexey G. Kvasov Eugene Miagkov Russian Federation (Russian Federation) (Russian Federation) Mat Aron Deraman b, d Chularat Suteethornh Brunei Darussalam, Fiji, Indonesia, Lao People's Democratic Republic, (Malaysia) (Thailand) Malaysia, Myanmar, Nepal, Singapore , Thailand , Tonga, Vietnam Felix Alberto Camarasa d , e Francisco Bernasconi h Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay (Argentina) (Chile) Louis Philippe Ong Sengb(VC), e, f Agapito Mendes Dias h Benin, Burkina Faso, Cameroon, Cape Verde, Central African Republic, Chad, (Mauritius) (Sao Tome and Principe) Comoros, Congo (Democratic Republic 00 , Congo (Republic 00, Cote d'ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, Sao Tome and Principe, Senegal, Togo Committees d. Personnel Committee g. Pension Finance e. Committee on Governance and h. CODE Subcommittee a. Audit Committee Executive Directors' Administrative i. Ethics Committee b. Budget Committee Matters c. Committee on Development f. Pension Benefits and Administration C = Chairman Effectiveness Comminee VC = Vice-Chairman 22 . . ~ Perspectives on Development Fall 2008 o e rgy. · ·gh e cle cy. Conn C d. Running environmentally-friendly networks starts with energy efficiency. As a world leader in developing energy-saving base stations that use renewable energy, we can help you conserve resources and save money. Environmental performance that delivers tangible business benefits - it makes good green business sense. Find out more at www.unite.nokiasiemensnetworks.com/environment Reinventing. The world. Connected. Nokia Siemens Networks ~\\\\\""It~·.II' www.unite.nokiasiemensnetworks.com/environment ~,\\\\\~ Copyright 2008 Nokia Siemens Networks. All rights reserved. o d I The Board of Executive Directors Inspection Panel Staff diversity is critical to the Bank's organizational effectiveness. In 2007, the Bank Group adopted a five- The Inspection Panel provides a vehicle for private year Diversity &. Inclusion Strategy for staff, emphasiz- citizens, especially poor people, to bring claims to the ing four key themes-the role of leadership; more Bank's Board, which decides, on the recommendation inclusive staffing processes; new learning to promote of the panel, whether to launch an investigation. This behavior change; and fresh metrics that focus on devel- process has given voice to people who may have been oping-country nationals , gender, and Sub-Saharan adversely affected by Bank-financed projects. African and Caribbean nationals. The Bank Group's agenda supports staff with disabilities and those of any In fiscal 2008, the Inspection Panel received six requests sexual orientation. for inspection involving Bank projects, five of which were registered. The panel recommended investigations in three cases. (See http://wwwworldbank.orglinspectionpanel.) A global workforce A global community, the Bank staff represents 161 countries. The work of IBRD and IDA is performed by about 8,600 people working in Washington, DC, and in almost 120 country offices worldwide. Today 36 percent of staff work in country offices. Fall 2008 Perspectives on Development I 25 An Inclusive and Sustainable Globalization An Inclusive and Sustainable Globalization Overcoming Challenges and Creating Opportunities year that saw soaring food and commodity A prices reaffirmed the role the World Bank plays in international economic develop- ment and poverty reduction worldwide . The Bank's achievements over the past year illustrate its ability to tackle global crises and support sustainable growth with care for the environment in its client countries while safeguarding and improving people's health, education, and other human development outcomes. The Bank collaborates with numerous other multilateral organizations and partners to realize the most far-reaching results possible. Much needs to be done without delay to alleviate global crises. An estimated 2.5 billion people are trying to survive on $2 or less a day. The slide of the U.S . dollar and resulting weakening economy, together with the credit crunch, have led to a global financial crisis, which has clearly and significantly put added stress on the poorest people. Skyrocketing food prices are a harsh reality, resulting in even greater hunger and malnutrition worldwide. The World Bank responded in May 2008 with a rapid where extreme poverty is expected to grow. Africa , financing facility for the food crisis, addressing especially its Sub-Saharan nations, is the Banks priority immediate needs with immediate action. Swift needs continent for action. assessments were undertaken in the field with the World Food Program, the Food and Agriculture The International Development Association is the Organization, and the International Fund for Bank's arm for supporting the world's poorest coun- Agricultural Development. The first grants under the tries in their efforts to boost economic growth , lower facility were approved for Djibouti ($5 million), poverty, and improve people's living conditions . It is Haiti ($10 million) , and Liberia ($10 milhon). the largest multilateral channel for providing conces- sional financing to countries with low-per-capita Other commodity costs continue to climb, with income, with a special emphasis on Sub-Saharan the potential to make the most basic necessities inac- Africa. For the 15th Replenishment of IDA (IDAI5) , cessible for many. Climate change threatens agricul- 45 donor countries pledged a record $25.2 billion in tural productivity and consequently the world's food December 2007 to further the cause of overcoming supply as well as the income of most of the poorest poverty in the poorest of the low-income countries people. Natural catastrophes, such as this year's around the world . In total , IDA15 will provide $41.7 earthquake in China and cyclone in Myanmar, devastate billion, an increase of 30 percent over the IDA14 millions who may not survive without immediate disaster replenishment. This is the greatest expansion in relief. Communicable diseases, with HIV/AIDS and donor funding in the history of IDA. The World malaria being the most critical, continue to challenge Bank Group pledged a record $3.5 billion transfer to us. The World Bank, in collaboration with its member IDA from IBRD's net income ($1.8 billion) and des- countries and international partners, is making ignations of IFCs retained earnings for grants to IDA progress in the face of these challenges. of up to $1 .8 billion. Today the World Bank is in a strong position, with unprecedented funding, to It is projected that the increase in the gross domestic move further toward achieving the Millennium product (GDP) for developing countries will decline to Development Goals, chief among them, eradication 7.1 percent in 2008, whereas high-income countries of extreme poverty and hunger. are predicted to grow by a modest 2.2 percent. Globally, poverty is in decline, exemplified by East This report details the numerous actlvltles the Asia, where the Millennium Development Goal World Bank has pursued in the past fiscal year in the (MDG) of halving extreme poverty by 2015 from fight against poverty, concentrating on three major 1990 levels already has been achieved. Progress on areas : the Bank's agenda for low-income countries, poverty reduction and the other MDGs varies widely, including countering the effects of rising food prices however, and conditions are especially dire in Africa, and increasing lending in agriculture and rural Perspectives on Development Fall 2008 I p.." 27 I. 1 n An Inclusive and Sustainable Globalization BOX 1 Midpoint Progress Toward the Millennium Development Goals Many achievements have brought the MDG targets for 2015 within reach in some cases. For the goals to be realized six criteria must be met: stronger and more inclusive growth in Africa and fragile states, more effort in health and education, integration of the development and environment agendas, more and better aid, movement on trade negotiations, and stronger and more focused support from multilateral institutions like the World Bank. · Eradicate Extreme Poverty and Hunger From 1990 through 2004, the proportion of people living in extreme poverty fell from almost a third to less than a fifth. Although results vary widely within regions and countries, the trend indicates that the world as a whole can meet the goal of halving the percentage of people living in poverty. Africa's poverty, however, is expected to rise, and most of the 36 countries where 90 percent of the world's undernourished children live are in Africa . Less than a quarter of countries are on track for achieving the goal of halving undernutrition. · Achieve Universal Primary Education The number of children in school in developing countries increased from 80 percent in 1991 to 88 percent in 2005. Still, about 72 million children of primary school age, 57 percent of them girls, were not being educated as f 2005 . · Promote Gender Equality and Empower Women The tide is turning slowly [or women in the labor market, yet far more women than men-worldwide more than 60 percent-are contributing but unpaid family workers. The World Bank Group Gender Action Plan was created to advance women's economic empowerment and promote shared growth. · Reduce Child Mortality There is some improvement in survival rates globally; accelerated improvements are needed most urgently in South Asia and Sub-Saharan Africa. An estimated 10 million-plus children under five died in 2005; most of their deaths were from preventable causes. · Improve Maternal Health Almost all of the half million women who die during pregnancy or childbirth every year live in Sub- Saharan Africa and Asia. There are numerous causes of maternal death that require a variety of health care interventions to be made widely accessible. · Combat HIV/AIDS, Malaria, and Other Diseases Annual numbers of new HIV infections and AIDS deaths have fallen, but the number of people living with HIV continues to grow. In the eight worst-hit southern African countries, prevalence is above 15 percent. Treatment has increased globally, but still meets only 30 percent of needs (with wide vari- ations across countries) . AIDS remains the leading cause of death in Sub-Saharan Africa (1 .6 million deaths in 2007). There are 300 to 500 million cases of malaria each year, leading to more than 1 mil- lion deaths. Nearly all the cases and more than 95 percent of the deaths occur in Sub-Saharan Africa . · Ensure Environmental Sustainability Deforestation remains a critical problem, particularly in regions of biological diversity, which continues to decline. Greenhouse gas emissions are increasing faster than energy technology advancement. · Develop a Global Partnership for Development Donor countries have renewed their commitment. Donors have to fulfill their pledges to match the current rate of core program development. Emphasis is being placed on the Bank Groups collabora- tion with multilateral and local partners to quicken progress toward the MDGs' realization. (See http://www.developmentgoals.org.) development ; middle-income country initiatives , Reducing Poverty such as the Economic Research Forum in the Middle and Inequality East and the Bank's recent innovations in lending; and global issues, including commodity prices, cli- At the heart of the World Bank's work is its focus mate change , governance and anticorruption, and on poverty reduction and inclusive growth. Despite gender. progress achieved over the past few years, about 28 I Perspectives on Development Fall 2008 Redifining Rural India 1982 was a watershed year for Rural India, when NABARD dedicated itself to the service of the N ation. With the mission to promote integrated rural development and secure prosperity of rural areas, NABARD h as assiduously touched practically every facet of development t hrough scores of innovative initiatives over the years. From emancipating millions of impoverished rural women through microfinance and supporting thousands of farmers clubs to integrated development across the country. From financial inclusion of disadvantaged and deprived to connecting h arts and hinterlands through the Rural Infrastructure Development Fund . From implementing 'credit plus' approach under t. -te District Rural Industries Project to promoting microfinance 1 in titutions and SI-IG federations. From partnering with NGOs and agencies across the country to providing marketing outlets for goods and produce of artisans and entrepreneurs through 'rural haats' and 'rural marts: The journey of NABARD over the yeaL reflects the growth of the Nation and Rural India, as welL of Invigorating the Rural Economy Foun ation for He Ithy Envlronm nt an Hum n Development Solutions to a dirty environment Mission: To empower Nigerians with good health, basic human rights, a healthy environment and relevant skills for sustainable livelihoods in their respective settlements. The Foundation for Heatthy Environment and Human Development (FHEHD) came about due to the felt need for a heatthy, sustainable and conducive environment; and the added need for exploring ways and means of promoting human development in such an environment. Track Records: · Awareness Creation and mitigation measures on HIV I AIDS; · Partnered with the European Union on provision of water and sanitation facilities for eight rural communities; · Partnered with Japan Water Forum Fund to provide water and sanitation facilities for rural institutions. FHEHD is concemed that these and other rela1ed problems should be seen and addressed as global challenges of mankind that need to be resolved at both micro and macro levels of society, and is seriously seeking sponsorship to address these issues. An Inclusive and Sustainable Globalization 1 billion people-15 percent of the world's popula- 15 percent). At the other extreme is Sub-Saharan tion-stilllive on less than $1 a day, and 2.5 billion Africa. Despite a 4.7 percentage point decline in the live on less than $2 a day. share of people living in extreme poverty between 1999 and 2004, some 31 percent of Africa's popula- The poor typically lack access to education, ade- tion will still be living on less than $1 a day by quate health services, and clean water and sanita- 2015-higher than the MDG target of 23 percent. tion. They are more vulnerable to economic shocks, There are some exceptions, however; countries such natural disasters, violence, and crime . The Bank as Ghana, Mozambique, Tanzania, and Uganda are continues to support country-owned development making solid progress toward the MDGs. strategies that seek to reduce poverty by expanding growth opportunities. It seeks to improve the ability The recent increase in food prices may set back of poor households to participate in the economy recent gains in reducing poverty. Preliminary esti- and to have better access to basic services. The Bank mates from the World Bank indicate that the persist- focuses on improving infrastructure and risk man- ence of current food prices may well translate into agement instruments and on creating more account- lOSing almost seven years of progress in poverty able and transparent institutions. reduction, with up to 105 million people in low- income countries pushed into poverty over the next Poverty Projections three years. Higher food prices may also heighten inequality within countries, worsen malnutrition, Recent estimates suggest that over the next decade and aggravate the vulnerability of people living with the share of the population living in extreme pover- conflict, HIY, or drought conditions. ty is expected to decline in all developing regions but by greatly varying degrees . By 2015, the share of To help countries respond to this crisis, the Bank the population in developing countries living on less is working closely with UN agencies on a common than $1 a day will stand at 10 percent, down from strategy, responding in four main ways: with policy 29 percent in 1990. The absolute number of people advice, expedited financing, financial market insur- in extreme poverty globally is tentatively projected ance products, and research. The Bank has launched to fall from 1.2 billion in 1990 and 970 minion in the Global Food Crisis Response Program, a facility 2004 to 624 million in 2015. providing up to $1.2 billion of accelerated financial support and technical advice to especially vulnera- Although the decline in world poverty is a positive ble countries. sign, poverty reduction has been highly uneven across regions. In East Asia the goal of halving Employment and Inclusive Growth extreme poverty has already been achieved: the per- centage of people living on $1 a day is expected to Rising inequality over the 1990s has severely drop to 2 percent (although the percentage of people reduced the potential impact on poverty from living on $2 a day will account for a still significant the rapid growth experienced by many countries. 31 Perspectives on Development Fall 2008 ·I tion An Inclusive and Sustainable Globalization BOX 2 Development Marketplace The Development Marketplace program is a small-grants program that identifies and funds innovative, early-stage projects with high potential for development impact. It is supported by many organizations, chief among them the Bill &: Melinda Gates Foundation and the Global Environment FaCility, and is administered by the Bank. The program's merit-based competition attracts ideas from a range of innovators, including civil society groups and businesses. Competitions are held annually at regional, country, and global levels. The 2008 global competition, devoted to sustainable agriculture for development, attracted over 1,700 appli- cants. One hundred finalists from 42 countries were selected by agriculture development experts from inside and outside the Bank Group . These finalists were invited to attend the Development Marketplace event at Bank headquarters September 24-26, 2008. At the event, 25-30 project leaders were selected to receive up to $200,000 each to implement their ideas over two years. The Bank will monitor imple- mentation and commission independent evaluations of the projects about 18 months after they close. (See http://www.developmentmarketplace.org.) On average, between 1990 and 2004, only one-third follows from continuing sharp increases in the work- of growth in output transferred to growth in ing-age population and in female labor market par- employment. tiCipation. Sub-Saharan Africa will have to grow more than three times faster than projected simply Demographic trends suggest that the next decades to maintain current employment rates. will see growing pressure to create employment opportunities in most low-income countries in Many of the poor are employed but earn a below- response to a sustained growth in labor supply that subsistence living. Recent estimates suggest that over 500 million people (18 percent of the employed) are "working poor," earning less than $2 a day-and this share is growing worldwide, with the exception of India and China. Thus, for growth to be inclusive, a multipronged approach to create jobs in selected sectors while enhancing the quality of employment, especially labor income, in others must be implemented. The Doha Round Despite the July 2008 failure of the Doha discus- sions, the World Bank continues to support the com- pletion of an ambitious Doha Round of trade talks . Successful conclusion of the Doha agreement would improve the functioning of the multilateral trading system and help establish more efficient and resilient agricultural and nonagricultural trade globally. It would reduce the distortions in agricultural trade created by decades of subsidies by developed coun- tries and import barriers by both developed and developing countries. The Doha agreement would increase incentives to invest in agricultural mar- ketS-including in low-income countries-and in the long run would help reduce the chance of future global food price crises. Overall, the agreement would provide a more supportive international framework for developing countries, especially the world's poorest, as they seek to improve their trade 32 Perspectives on Development Fall 2008 product groups en(:onI.M In the photovoltalc val lane gas through DOI1VM. . In solar cells. Nltol J2ft1~iII'. global leader In the em_,. for the fast growing HVA International HVA International is a worldwide operating consultancy & project development company in the agricultural sector. We offer a full range of seNices starting from project idea and ending with a full operational enterprise. ~ssistance with turning a project idea into a solid and practical business plan required by banks to obtain financing HVA has a solid Evaluation Successful Be sustainable projects through quality management support during Realization preparation, execution, start-up and handing-over ccass;tulprojects and have ample expertise in a broad range arcane, oR palm, coffee, tea, dairy and poultry. For more information, please visit our website www.hvainternationa/.com or call us on +31-20-3116000. I An Inclusive and Sustainable Globalization performance ; integrate into the world economy; and achieve more rapid, sustainable, and inclusive economic growth. The Bank is scaling up its Aid for Trade activities to strengthen in-country programs on trade and competitiveness. Agriculture and Rural Development Even before the rapid rise in food prices, the World Bank had sharpened its focus on the critical role that agriculture and rural development can play in helping people move out of poverty. Agriculture is critical because some 75 percent of the world's poor live in rural areas, and the sector has a power- ful influence on economic growth, poverty reduc- tion, and environmental sustainability. The World Development Report 2008: Agriculture for Development, released in October 2007, focuses on three key sets of recommendations: increasing agricultural productivity, especially in Sub-Saharan Africa ; shrinking growing income inequalities between rural and urban areas in more urbanized and middle-income countries; and contributing to environmental sustainability everywhere. (See http://www.worldbank.orglwdr2008.) Consistent with the WDR message about the need for more and better investments in agriculture for development, the Bank is planning a major scale-up of lending in agriculture and rural development in fiscal 2009, especially in Sub-Saharan Africa. Underperformance in agriculture has been a major limitation of Africa's development, according to the Independent Evaluation Group (lEG). For most of the Assisting Fragile and Conflict- past two decades, both governments and donors, Affected Countries including the World Bank, have neglected the sector. Lending from the Bank has been sprinkled across var- Following the approval of a new Rapid Response ious agricultural activities such as research, extension, to Crises and Emergencies policy in February 2007, credit, seed provision, and policy reforms in rural the separate conflict and fragility agendas were space, but with insufficient recognition of the syner- merged with the creation of the Fragile and Conflict- gies among them. Drawing on its comparative advan- Affected Countries Group in July 2007. The aim is tage as a multisector lending institution and as the to deliver effective programs, in collaboration with single largest donor to African agriculture, the Bank other partners, in support of sustainable growth and now has an opportunity to help ensure a coordinated economic and social development, peace building, and multifaceted approach to agriculture development and sound governance . in Africa . Although fragile states are not necessarily afflicted The Bank is working to align client priorities and with conflict, and conflict-affected countries are not harmonize partner efforts in agricultural initiatives. always hindered by fragile governance, troubling The Bank is supporting the African Union's attributes exist in both . Hence, the Bank and some Comprehensive African Agricultural Development of its partners recognize the commonalities and Plan as well as the Global Donor Platform for Rural believe that they should support these at-risk coun- Development, made up of 29 donor agencies active in tries. The assistance will be based on institutional agriculture and rural development. The Bank has also research on conflict prevention and reconstruction increased its dialogue and diagnostic studies with as well as on studies of links between peace- and partners at the country level. state-building and governance. Perspectives on Development Fall 2008 I p...~ 35 · n rodu Strengthening Support for Based on client demand in middle-income countries, Middle-Income Countries this response could include requiring governments to make substantial contributions to financing, requiring Middle-income countries are critical to the Bank's payment for technical assistance and advisory services, fight against global poverty, as they are home to nearly and making Bank loans available to provincial and 70 percent of the world's poor (defined as people who local governments. A task force, convened in fiscal earn less than $2 a day). Most of these countries face 2008 to build on the work started in 2006, identified constraints in mobilizing the funds needed to invest in four areas of emphasis: improving client responsive- infrastructure, health, education, and the reform of ness and flexibility; expanding the range and use of policies and institutions essential to improving the financial products; building a dynamic organization investment climate. Some middle-income countries leveraging Bank Group synergies; and building knowl- are able to borrow on foreign markets or access risk edge to take on 21st century challenges, particularly management instruments, but often where these through local partnerships and enhanced South-South sources of finance are available, the maturities are usu- cooperation. ally short and the rates high. A few middle-income countries have achieved investment -grade ratings. The Bank has improved the delivery of cus- tomized development solutions by introducing By implementing the strategy for middle-income a range of financial and nonfinancial innovations. countries endorsed by the Development Committee in On the financial side, during fiscal 2008, IBRD 2006, the Bank is responding to continuing strong announced the biggest simplification of and reduc- demand for both traditional and innovative products. tion in its loan pricing since the Asian financial crisis. (See http://www.worldbank.orglibrd.) Borrowers now have access to IBRD loans at longer maturities and at prices that are lower and more trans- parent than they had been. In response to demand for market -based instruments to address catastrophic risk, the Bank Group launched the Caribbean Catastrophic Risk Insurance Facility; it also enhanced existing contingent loan products to address countries' emergency liquidity needs following catastrophes and other exogenous shocks. The IFC's Global Index Reinsurance Facility is in place, and the Bank Group initiated the Global Emerging Markets Local Currency (Gemloc) bond program to help catalyze the develop- ment of local currency bond markets in emerging mar- ket countries. The Bank Group is also exploring other mechanisms for local currency lending and is consid- ering innovative approaches for funding climate change and green initiatives. For example, Mexico Signed the first climate change development policy loan in May 2008. On the nonfinancial side, the Bank introduced simple projects that can be eaSily replicated, mecha- nisms for additional financing of successful projects, and revisions to emergency and rapid response lending policies. The Bank has been piloting the use of country systems, approved by the Board in April 2008, for financial management and safeguards, and it plans to pilot national procurement systems short- ly. Up to 10 countries with a mix of income levels will participate in the procurement pilot, with at least one pilot country in each region. The Bank is also trying to identify ways to streamline its investment lending procedures so that it is more flexible and bet- ter equipped to deliver its products under the Bank's new business model for middle-income countries. (See http://www. world bank. 0 rglmidd leincomecountries.) 36 p..-d I Perspectives on Development Fall 2008 I An Inclusive and Sustainable Globalization Health, Education, and Gender mandatory health insurance, analysis of restrictions and mechanism for overcoming bottlenecks in the Complementing the Bank's strategic investment in implementation of health strategies in low-income markets, the human development agenda helps people countries, and the initiation of work on human in developing countries acquire the good health, edu- resource constraints and fiscal space for health. In cation, and skills they need to succeed in the work- addition, as a result of a highly generous contribution place, live better, and contribute to national cohesion from Norway, a trust fund of $100 million was set up and economic growth. for results-based financing in at least four low-income countries. Implementation has also started at the Health regional level, especially in Africa, in the areas of results-based financing, human resources for health, In fiscal 2008, the Bank committed $948 million in and harmonization and alignment of donor aid. its continuing efforts to significantly improve health outcomes, while also moving ahead to implement its In addition, the Bank continued its work with client Health, Nutrition, and Population (HNP) Strategy, countries and global and regional partners to prevent "Healthy Development," approved by the Board in and treat communicable diseases, which are the leading April 2007. The strategy reinforces the Bank's ultimate killers of children and adults in the developing world , objective to improve the state of people's health, espe- claiming more than 12 million lives a year. Although cially in poor and vulnerable groups, under the aegis several potentially deadly epidemics have been of its overall mission to reduce poverty and spur contained, HIV and others remain threats. Dengue and opportunity. The HNP strategy calls for the Bank yellow fever have reappeared; tuberculosis killed to focus rigorously on its key strengths in health 1.6 miUion people in 2005; and more than 1 million peo- systems-strengthening and health financing and ple die of malaria every year, mostly infants, young chil- economics, and also to help government leaders and dren, and pregnant women, and most of them in Africa. the international community to commit to achieving and monitoring results. The current food crisis is derailing recent gains in reducing malnutrition. Between 1990 and 2005, the Progress was made in terms of knowledge develop- share of children under five with moderate and severe ment and country-specific work in keeping with the stunting fell from 33.5 percent worldwide to 24.1 per- strategy. In particular, budgets were approved to gener- cent. While food prices are not the main driver of ate new knowledge products, which focused on lessons malnutrition, they do affect nutritional outcomes learned from country experience on good practice in through their impact on real incomes and household health-financing reform, governance mechanisms for purchasing behavior. 37 Perspectives on Development Fall 2008 I. Intro uction An Inclusive and Sustainable Globalization I In addition to emphasizing a cross-sectoral approach good-quality employment; to increase the number of for achieving the health-related MDGs, the Bank is women starting agribusinesses and engaging in high- implementing the bold agenda of the Paris Declaration value agriculture; and to boost women's access to on Aid Effectiveness. For example, the Health S, an essential infrastructure services, particularly trans- informal group of heads of health-related organiza- portation, water, and energy. tions, was formed to amplify an urgent appeal to accel- erate efforts to achieve the MDGs and to share The Bank launched a research program in fiscal accountability for progress at the country level. The 200S as part of the Doing Business project on reforms International Health Partnership (IHPl), led by the that improve business opportunities for women. In World Health Organization and the Bank, is a new and partnership with the Nike Foundation, it began inves- crucial development in this context. Since its initiation tigating ways to promote economic opportunity for in 2007, this partnership has grown to include adolescent girls by providing conditional cash trans- 15 African and Asian countries and 10 major donor fers and skills training that matches labor market countries. IHPI seeks to align donors with recipient needs. Financial support from the governments of country interests through mutual accountability in a Australia, Canada, Denmark, Germany, Iceland, concerted quest to attain the health MDGs. Norway, Spain, Sweden, and the United Kingdom and from the Nike Foundation continues to encourage Education innovation in mainstreaming gender issues in the Bank's work (See http://www.worldbankorglgender.) The Bank provides about a fourth of global external funding for education, making it the largest donor in Social Protection and Labor the world in the sector. The Bank's portfolio of educa- tion projects was $7.4 billion by the end of fiscal200S, This sector helps client countries create good jobs, funding 140 operations in 92 countries. New commit- provide effective assistance programs for poor and vul- ments accounted for 7.S percent of total Bank lending. nerable groups, and better manage risk It focuses on Over the past four years, its lending for education has six main areas: labor markets, pensions, social safety remained steady at about $2 billion a year, about half nets, social funds, vulnerable groups (such as the dis- of it through IDA on concessionary terms. About abled and child workers), and social risk management. 35 percent of all Bank aid for education in fiscal 200S was provided through multisector investment projects Through lending interventions and analytical work, and multisector development policy loans. the Bank is helping clients to improve the functioning of their labor markets and the creation of better jobs The Bank's education sector completed several through improved regulations, active labor market important research studies in fiscal 200S. These stud- programs, and unemployment benefit schemes. Its ies-on linking education pohcy to labor market out- efforts are enhanced by a multidonor trust fund on comes; science, technology, and innovation; school- employment creation, established at the end of calen- based management; and educational assessment- dar year 2007, which is closing knowledge gaps, amplified the connections among education, empow- supporting capacity building, and helping countries erment, opportunity, and economic growth. implement a multisector operations framework known as MILES (macroeconomics, investment climate, labor Gender market institutions, education and skills, and social protection). (See http://www.worldbankorglsp.) During fiscal 2007, the Bank adopted an action plan to empower women economically. Gender Equality as Smart Economics was endorsed by the Group of Eight Harnessing the Commodities heads of state in June 2007. In April 200S, the Bank Boom for Sustainable announced six new commitments on gender equality, Development including improving the integration of gender equali- ty into agriculture and rural development projects by A commodities boom in oil, gas, and minerals in 2010, channeling through IFC at least $100 million in many parts of the developing world is opening oppor- credit lines at commercial banks for women entrepre- tunities for marshaling the resulting revenue windfalls neurs by 2012, and increasing IDA investments for for sustainab]e deve]opment. Commodity prices have gender equality. fluctuated considerably since 2000; in the past year they had risen, in general, by more than 75 percent as com- Fiscal 200S saw activities launched in all develop- pared with 2000 prices. Nearly half of Sub-Saharan ing regions to promote investments to better inte- Africa's population lives in countries that are rich in oil, grate women into the economy by increasing their gas, or hard-mineral resources. The challenge is to effec- access to land, labor, credit, and product markets. tively channel the revenue into programs that fight These activities aim to promote women's transition to poverty, hunger, malnutrition, illiteracy, and disease. 38 p...""d I Perspectives on Development Fall 2008 Global Energy Solutions At Optimal Technologies our goal is to create a more efficient, reliable and environmentally responsible el ectric power grid from end to end. Our unique products and services have the potential to create unprecedented environmental and consumer benefits world wide. Solutions for the Grid of the 21st Century Optimal's product and servic es suite includes supply-side electric power grid analysis, optimization, ranking and management services called AEMPFASTTM , and a demand- side energy management and home automation system called SUREFASTTM . Combined, AEMPFAST and SUREFAST end-to-end solutions create a true SMARTGRIDTM An electric power system that is efficient, interactive, self-balancing, reliable, and enviro,nmentally responsible. Learn more at www.otii.com Copyright C Optimal Technologies Internalionat Inc. All rights reserved. 1.lntrodu This country-driven initiative will provide technical assistance and build national capacity across the natu- ral resources value chain. Even with efficient financial markets, a critical chal- lenge remains for many developing countries. One of the cruel ironies today is the connection between ris- ing energy and food prices. Higher energy prices have increased fertilizer and transport costs and stimulated biofuel production. Food and energy prices usually represent over 70 percent of the consumption basket of the poor. In the face of even higher prices, poor households will cut back on food consumption and education~and girls will invariably be the first withdrawn from schooling. Reliance on traditional fuels will increase with damag- ing consequences to the environment. Climate Change In line with the World Bank Group's plan to ramp up work on climate change, the Bank Significantly accelerated its efforts to help client countries cope with climate change while respecting another aspect of its core mission: promoting economic development and poverty reduction by helping provide modern energy to growing economies. Drawing on more than a decade of experience in the field, the World Bank responded to increasing calls in the international com- munity to work faster and do more to help developing countries mitigate the increase in greenhouse gas emissions and adapt to the risks and impacts posed by climate change. The starting point for the Bank's work is the recog- nition that climate change is more than an environ- mental challenge; it is also an economic, development, and investment challenge that calls for urgent action. For many developing countries, the impact can be enormous: they stand to suffer the most from climate change because of their geographic location and sensi- tivity to extreme weather events. In IDA-eligible coun- tries, for instance, 870,000 people have been killed and almost 2.5 billion affected by climate-related dis- asters over the past 25 years. Apart from the immedi- ate drama of disaster, climate change can reduce agri- cultural productivity, deplete already scarce water resources, increase the incidence of devastating vector- Transforming natural resource wealth into long-term borne diseases such as malaria and dengue, and harm economic growth requires sound practices across a ecological systems and their biodiversity. broad set of issues, including awarding and monitoring contracts; collecting revenue; managing the economy, The Bank Group launched a series of global consulta- including price volatility; and investing revenues effec- tions with stakeholders to help formulate a Strategic tively for national development. The Bank is creating a Framework on Climate Change and Development by new partnership-Extractive Industries Transparency the end of 2008. This framework will outline the orga- Initiative Plus Plus (EITIll)-with multilateral, bilater- nization's integrated approach to the issue. The Bank al , private sector, academic, and civil society partners. had already set goals for piloting adaptation instruments 40 Perspectives on Development Fall 2008 An Inclusive and Sustainable Globalization and reducing greenhouse gas emissions by increasing BOX 2 The Stolen Asset lending for clean energy while also significantly increasing access to electricity, particularly in Sub- Recovery (StAR) Initiative Saharan Africa. Overall, Bank lending for energy rose to $4.2 billion in fiscal 2008, and the share of low- carbon projects in the Bank's energy portfolio grew The World Bank Group, in partnership with the to about 40 percent. Low-carbon growth country UN Office on Drugs and Crime, launched StAR in case studies were launched for Brazil, China, India, September 2007. The initiative seeks to help Indonesia, Mexico, and South Africa. In late 2007, developing countries track, freeze, and recover the the Board of Directors approved the creation of two proceeds of corruption and prevent government new carbon finance facilities, the Forest Carbon funds from being stolen. StAR helps build the Partnership facility and the Carbon Partnership capacity to request the legal assistance necessary to recover assets, urges financial centers to lower Facility. These new facilities complement the more barriers that retard asset recovery, develops part- than $2 billion allocated to 10 other carbon funds nerships to share information and experience, and and facilities the Bank currently manages. Sixteen offers expertise on making transparent the use of governments and 66 private companies from vari- recovered assets for development purposes. It also ous sectors have contributed to these funds. (See works with UN member nations to ratify and http://www.worldbank.orglclimatechange.) implement the United Nations Convention Against Corruption. The Independent Evaluation Group (lEG) assessed Bank Group support for the environment to its clients in public and private sectors from 1990 through 2007. It found that this support has increased Significantly sector governance and $304 million to support improve- and performance has improved, especially since 2001, ments in the rule of law. This support accounted for when the Bank Groups first explicit strategy for the 19 percent of total Bank lending. environment was adopted . According to the lEG, an even greater effort is required, however, and a number lEG examined lending and other Bank support in of key constraints still need to be overcome, including 1999-2006 for public sector reform in four areas: public insufficient government commitment to environmen- financial management, administrative and civil service, tal goals and weak institutional capacity on the revenue administration, and anticorruption and trans- ground . The Bank Group also needs to update its envi- parency. It found that among countries borrowing for ronment strategy; further strengthen cross-sectoral public sector reform, more than 80 percent of IBRD and collaboration; improve mechanisms to monitor and 69 percent of IDA borrowers showed improved perform- assess environmental results and impacts of its lending ance. lEG noted that bank lending for public sector and nonlending services; and improve coordination reform was successful when reform objectives were real- both internally among the Bank, IFC, and MIGA and istic and institutional capaCity was considered. Moving with its external development partners. Strengthening Governance and Reducing Corruption The World Bank Groups strategy to scale up assistance to improve governance and fight corruption in client countries was unanimously endorsed by the Board in March 2007. An implementation plan was launched in December 2007, and a Governance and Anticorruption Council was created, chaired by the Managing Directors on a rotating basis, with senior-level representation from across the Bank Group. The strategy caUs for action on four key fronts: supporting good governance and anti- corruption at the country level, preventing corruption in Bank-financed projects, addreSSing the private sector's role in public sector governance and anticorruption efforts, and supporting global efforts to reduce corrup- tion. The Bank is the leading donor globally in provid- ing support for strengthening public sector manage- ment. In fiscal 2008, Bank support for governance and rule of law was $4.7 bmion-$4.4 billion for public 41 Perspectives on Development Fall 2008 p:d I I uctl forward, improvements in human resource management In fiscal 2008 , an independent panel headed by refonns and the complex political and sequencing issues former u .S. Federal Reserve Chairman Paul Volcker of refonn efforts are key areas on which the Bank shou~d reviewed the work of INT within the context of the focus, particularly in low-income and fragile settings. World Bank Group's governance and anticorruption strategy and affirmed that INT must play a central The Bank is a leader in the development and appli- part in that effort. The Bank announced in January cation of governance diagnostics, such as Doing 2008 that it would implement the Volcker panel's Business reports, investment climate surveys, public recommendations. These include the creation of an expenditure tracking surveys, Public Expenditure and independent advisory board composed of interna- Financial Accountability indicators, the World Bank tional anticorruption experts to protect the inde- Institute (WBI) governance and anticorruption country pendence and strengthen the accountability of INT, diagnostics, and the WBI governance indicators. as well as the formation of a preventive services con- sulting unit to help Bank staff guard against fraud An example of WBI's assistance to build capacity and corruption in Bank projects. In addition, a vice was an interactive global event, "Business and the president-level pOSition was created to head INT. Rules of the Game, " organized by WBl and InWent (See http://www.worldbank.orglintegrity.) (Capacity Building International , Germany) for more than 300 private sector, government, civil society, and In the spirit and interest of good organizational gov- multilateral agency leaders. People from 49 countries ernance , members of the Bank Group's Executive discussed the role of business in fighting corruption, Management team authorized public disclosure of a responding to climate change, and advancing the summary of the annual statement of their 2007 finan- MDGs. cial interests and activities filed during 2008. The Executive Managers have committed to public disclo- The Department of Institutional Integrity (INT) sure to help demonstrate to stakeholders that in the investigates allegations of fraud and corruption in discharge of their official duties and responsibilities, Bank-financed projects as well as allegations of possi- they are not, and do not appear to be, influenced by ble staff misconduct. INT reports its findings to the improper consideration associated with their own Bank's senior management, which in turn decides on private interests. The summary disclosure statements corrective measures to be taken. Since 1999, INT has are to be posted on the Bank Group's public Web handled nearly 3,000 cases of alleged fraud, corrup- site after an internal review and certification by the tion, or other wrongdoing, resulting in the public Bank Group's Office of Ethics and Business Conduct, debarment of 340 companies and individuals, whose and separate external certification of accuracy by a names have been listed on the Bank's Web site. renowned consulting firm. 42 p...--d I Perspectives on Development Fall 2008 ,I An Inclus'ive and Sustainable Globalization Financial and Private Sector finance and infrastructure, the labor market, and Development corruption, as well as the level, type, and effiCiency of regulations. To enhance the confidence and cred- The World Bank's Voices of the Poor project asked ibility of the indicators, lEG recommended recruit- 60,000 people around the world how they hoped to ing more and more diverse informants, disclosing escape poverty For men and women alike, the two the number of informants, and increasing the trans- most common responses were employment in a busi- parency of the data. ness of their own and income earned from a job. Their answers underline why private sector and financial Building Robust and Diverse Financial sector development are a critical part of the Bank Sectors Group's strategy: the private sector is the key genera- tor of jobs and incomes that help the poor rise out of The most important finance sector innovation of the poverty fiscal year was the launch of the Global Emerging Markets Local Currency (Gemloc) bond program, Improving the Business Climate approved by the Board in October 2007. Gemloc com- bines the comparative advantages of the Bank Group The Doing Business project is a core piece of the and the private sector to help devdop local currency Bank's poverty reduction strategy; it focuses on the reg- bond markets through three complementary efforts: a ulatory burdens faced by small and medium enterpris- private sector investment manager that develops es. The annual Doing Business reports compare indica- investment strategies for local currency bond markets; tors on business regulations and their enforcement in a newbond index (GEMX), based on market size and 178 countries. (See http://www.doingbusiness.org.) investability indicators; and Bank adViSOry services on reforms that can facilitate the creation of strong local Country coverage of the Bank's enterprise surveys bond markets. (See http://www.gemloc.org.) continues to expand. Results on 75,000 firms in 105 countries are now available online. This infor- Demand for participation in the Financial Sector mation-which includes data on business percep- Assessment Program-a joint World Bank-International tions and dozens of indicators on the quality of the Monetary Fund (IMF) program that helps countries business environment-helps underpin Bank opera- identify vulnerabilities in their financial systems and tional work. determine needed reforms-remained strong across countries at all levels of development. Twenty-three InJuly 2007, the Board endorsed the 2008-11 strat- countries and one regional supervisory body egy for the multidonor Foreign Investment AdViSOry Service (FIAS). The focus of FIAS has shifted from regional programs to technical advice centered on core products, from diagnostics to implementation, and from project number and volume metrics to results metrics. Its two main priority areas are simplifying reg- ulations and generating investment. FIAS supports regulatory simplification by provid- ing advisory support to client governments on reforms, as well as by offering in-depth assistance on regulatory governance, licensing, tax Simplifica- tion, trade logistics, and secured lending. FIAS is leading an increasing number of successful Doing Business-related reform projects throughout the world involving IFC facilities, the Bank, and other donors. (See http://www.fias.net.) lEG recently undertook an evaluation of the con- struction, relevance, and use of the Doing Business indicators. lEG found Doing Business successful in motivating policy debate in countries but less suc- cessful as an aid in designing policies. The Group found no evidence that the indicators had distorted policy-making incentives in countries. It recommend- ed that the indicators be interpreted within the coun- try context, taking into consideration access to Perspectives on Development Fall 2008 I p:d 43 I. Introd An Inclusive and Sustainable GlobaHzation C ion I received initial assessments or updates during CGAP coined the term). CGAP experts are working fiscal 2008, bringing the share of Bank and IMF with regulators in 10 countries to facilitiate peer learn- members that have participated or volunteered to do ing on the cutting edge of policy challenges created by so to 75 percent. the convergence of the communications and financial services industries. The CGAP Technology Program The Bank took over management of the Financial has projects under way in Kenya, Mongolia, Pakistan, Sector Reform and Strengthening (FIRST) Initiative in the Philippines, and South Africa, and uses new tech- fiscal 2008 . This $100 million multidonor grant nologies such as mobile phones and smart cards to program seeks to build robust and diverse financial provide 2 million low-income people with financial sectors in low- and middle-income countries. FIRST services that can help improve their lives. CGAP is also approved 30 projects, valued at $8.06 million, in developing a model to prepare the poorest people for fiscal 2008; 34 percent of this funding went to Africa. micro finance and has launched seven pilots in five countries-Ghana, Haiti, India, Pakistan , and Peru- over the past year. (See http://www.cgap.org.) Improving Corporate Governance The Corporate Governance and Capital Markets Migration and Remittances Advisory Department led the development of a com- mon approach shared by the world's leading develop- The Bank's involvement in international migration ment finance institutions for integrating corporate increased substantially over the past four years, with governance into due diligence procedures. Thirty-one an expanded research program, an increase in interna- institutions Signed the statement at the fall 2007 tional consultations on migration issues, and support meetings in Washington, DC. The department also for improved handling of remittances by client coun- established a program for corporate governance code tries' financial systems. In fiscal 2008 the Bank pub- development in the Middle East and North Africa , lished Migration and Remittances Factbook 2008 (also which has fostered wide acceptance of the value of available online); an edited volume, The International sound corporate governance practices for private sec- Migration of Women; and more than 25 working tor growth in the region. papers, including papers on diaspora bonds and secu- ritization of remittances. Reducing the Cost of Remittances Data sets covering high-skilled emigration and The Bank provided support for ongoing reforms in bilateral migration and remittances were expanded in payment, remittance, and securities systems in more fiscal 2008. The Bank also completed or is conduct- than 40 countries in fiscal 2008. Its global payment ing surveys of migration and remittance behavior at system survey covers more than 140 countries and the household level in Brazil, Ghana, India (Kerala), 300 technical issues in payment, remittance, and secu- Samoa, Tajikistan, and Tonga; conducted a study of rities settlement. The survey results will help Bank staff the Indonesia-Malaysia remittance corridor; and ini- create indicators that can be used to support advice to tiated studies on the development implications of clients on payment system development. During fiscal human trafficking and a possible role for the Bank in 2008, the Bank also launched a remittance price data- preventing trafficking, and on the implications of base to monitor industry response to the release of climate change for migration flows in Central international standards and provide a benchmark America . Country assistance strategies in many to consumers. The goal is to help reduce the cost of countries have discussed the implications of large- remittances services, potentially saving recipients in scale migration. A fiscal 2008 country economic developing countries as much as $12 billion a year. memorandum for Kenya, for example, included rec- ommendations for mobilizing the resources of the diaspora. Expanding Microfinance Programs During fiscal 2008 the Bank continued to support The Consultative Group to Assist the Poor (CGAP), refugees in postconflict environments in Africa, facili- which includes the Bank, advises and trains regulators tate temporary migration to more developed neigh- and policy makers around the world ; governments bors in the Pacific Islands, and study how regional such as Cambodia, the Democratic Republic of Congo, transport corridors can be used to control HIV trans- Kosovo, the Lao People's Democratic Republic, and mission in Sub-Saharan Africa . Globally, the Bank con- Malawi; and global standard-setters such as the Basel tinued its efforts to provide social protection to emi- Committee on issues related to access to microfinance . grants through training, provision of information, and regulation of recruitment as well as by strengthening CGAP has led the charge globally on technology for health, education, and incentives to reduce the impact access to finance and "branchless banking" (indeed, of the brain drain. 44 Perspectives on Development Fall 2008 II GTBank Guaranty Trust Bank Proudly African Truly International Guaranty Trust Bank First African bank listed on the London Stock Exchange (Main Market) Retail Banking I Corporate Banking I Private Banking I Investment Banking I Treasury Services I Wouldn't you rather bank with us? www.gtbank.com Just dial: 0700 GTCONNECT (0700- 48266-6328), 234-1- 448 0803-900-3900, 0802-900-2900 Please add the prefix 01 for trunk calls and 234 1 for international Nigeria Gambia Sierra Leone Ghana UK I. Introduction I such as those used to measure progress toward the MDGs and IDA Results Measurement System. (See http://www. worldbank. org/data.) Impact Evaluation The Development Impact Evaluation (DIME) Initiative is a Bank-wide collaborative effort involv- ing thematic networks, regional units, and the research group under the guidance of the World Bank's Chief Economist. Its three primary purposes are to add to the number of World Bank-supported impact evaluations, particularly in strategic areas; to increase the ability of staff to design and carry out such evaluations in close collaboration with govern- ment agencies in developing countries; and to build Improving The Quality of a process of systematic learning on effective develop- International Statistics ment interventions based on lessons from completed evaluations. Because reliable statistics are essential for formulat- ing policy and measuring development progress, the Through the combined efforts of DIME, regional ini- Bank's Development Data Group maintains several tiatives (for example, the African Impact Evaluation large international databases that provide key statistical Initiative), and sector-based strategies (such as the information for operational activities and support Human Development Network), 158 impact evalua- critical management decisions. These data are com- tions are being conducted. In comparison, a total of piled from a variety of sources, including the United 106 impact evaluations were completed by the World Nations and its specialized agencies, the Organisation Bank between 1990 and 2007. DIME's current list of for Economic Co-operation and Development, the IMF, themes includes early childhood development, educa- regional development banks, private organizations, tion service delivery, conditional cash transfers, and national statistical offices. Adherence to interna- HIV/AIDS treatment and prevention, local develop- tionally accepted standards and norms results in a con- ment, malaria control, pay-for-performance in health sistent, reliable source of information. services, rural roads, rural electrification, urban upgrading, and youth employment and service. (See To improve the quality of international statistics, the http ://www.worldbank.org/dime.) Development Data Group works with its partners to improve statistical methods, promote data collection activities, compile global data sets, and help countries Civil Society increase their statistical capacity Some of this work takes place through the Partnership in Statistics for Bank relations with civil society continued to Development in the 21st Century (PARIS2l) and the intensify as reflected in the greater numbers of civil International Comparison Program (ICP) . As one of the society organization (CSO) representatives accredit- founding members, the Bank supports PARIS21 and ed to attend the Annual and Spring Meetings during provides financial support to countries through a Trust fiscal 2008 . CSOs also increased their involvement Fund for Statistical Capacity Building (TFSCB) . As of in the Civil Society Policy Forum by sponsoring July 2008, 72 projects had been approved for financing dialogue sessions on such issues as extractive indus- from TFSCB II, and seven for financing from TFSCB III. tries , climate change, and debt relief. Important Of these, 40 are active. (See http://www.paris21.0rg.) policy consultations were held with civil society on country systems for procurement and the strategic The ICP is a worldwide statistical initiative that collects framework for climate change. The Bank began the comparative price data and estimates purchasing power process of reviewing its approaches to civil society parities of the world's economies. The program, which engagement and policy consultation in order to involves partners from national, regional, and interna- improve consistency and the quality of these interac- tional agencies, analyzes data from 146 economies, tions. Bank-CSO relations continued to expand making it the largest statistical initiative in the world. It is at the country level through CSO participation in overseen by the World Bank. project appraisals (73 percent), country assistance strategy consultations (91 percent), and Poverty The Bank makes development data available Reduction Strategy participation (73 percent). (See through online databases and monitoring systems, http://www. worldbank. org!civilsociety). 46 :d I Perspectives on Development Fall 2008 Regional Perspectives WORLD BANK REGIONS, I.R iona erspective I he World Bank today operates out of more than 100 COUNTRY OFFICES, AND BORROWER ELIGIBILITY T offices worldwide. Increased presence in client countries is helping the Bank to better understand, work more closely with, and provide faster service to clients. Three-fourths of outstanding loans are managed by country directors located away from the Bank1s Washington, DC, headquarters. Thirty-six percent of staff are now based in country offices. ·... ·. ... .......... .... ". ..{. . ......... .-..... . .. .. ..-. }---Kiribati ....... ........... -. ~ ... .. " r "'~ Samoa Fj'j l: _ ... LATIN AMERICA AND THE CARIBBEAN FY08 New Commitments IBRD I $4,353 million IDA I $307 million .... . ··· ~ ··T~n~ Portfolio of Projects I $18.8 billion · · ·· . : · ~ ~Antigua and : · St. Kitts and N.vis .'f . r: · Barbuda . .. . . · · :' ........ ··~omini::-l: f' St.Vincent and ' St. lucia ·· · .1' the Grenadines ~ e. Countries eligible for IBRD funds only e ·· ' ~ Grenada _ Countries eligible for blend of IBRD and , DA funds I Trinidad and Tobago Countries eligible for IDA funds only _ Inactive IDA-eligible countries Countries not receiving Bank funds · Offices of the World Bank o Offices with the Country Director present Bank region boundaries 48 Perspectives on Development Fall 2008 I World Bank Regions MIDDLE EAST AND NORTH AFRICA EUROPE AND CENTRAL ASIA FYOS New Commitments FYOS New Commitments IBRD I $1 ,203 million IBRD I $3,714 million IDA I $267 million IDA I $457 million Portfolio of Projects I $7 .0 billion Portfolio of Projects I $1S.1 billion EAST ASIA AND PACIFIC · FYOS New Commitments IBRD I $2,677 million IDA I $1,791 million Portfolio of Projects I $20.9 billion .............·. ~ ...... Marshall Islands "::~:...... ,. ~ ~ _ _ Klnbatl .e......... ..- .. ~ I, ··· J · · SOUTH ASIA FYOS New Commitments IBRD I $1,491 million IDA I $2,756 million o Portfolio of Projects I $22.S billion AFRICA FYOS New Commitments IBRD I $30 million IDA I $5,657 million Portfolio of Projects I $23.3 billion Perspectives on Development Fall 2008 I p...l:t 49 or more than a decade, Africa-still the Bank's Africa F top priority-has posted healthy growth. Its GDP has expanded at an average rate of 5.4 percent a year. This rapid growth has been fueled, on the one hand, by decisive and deft management of the macro- economy of a majority of countries and, on the other hand, by more careful management of the global com- modities boom. As a result, Africa has become an I Africa attractive investment destination for foreign capital, amount of HIPC debt relief provided to the Central notably in the oil, gas, and mining sectors. The upward African Republic is estimated at $S23 million. The trend has awakened memories of the boom of the country's public and publicly guaranteed external debt 1970s, leading to calls on African countries to make was estimated at $1.1 billion. No African country sure that their current fortune is not wasted, as it was reached the completion point (when debt relief is irrev- then. Riots in several African countries, triggered by ocable) under HIPC in fiscal 200S, and none, there- rising fuel and food prices, have served notice that fore, benefited from the Multilateral Debt Relief growth must be inclusive-ensuring that the poor par- Initiative in fiscal 200S. Under that initiative, $37 bil- ticipate in and benefit from its fruits-if the region is lion in debt, the bulk of it owed by African countries, to accelerate progress toward meeting the Millennium will be written off over the next 40 years for countries Development Goals. with sound financial management and a commitment to poverty reduction. The Bank warned predatory During fiscal200S, the Bank expanded its support to lenders in developed countries that it is working to African countries eager to improve management of stop them from preying on the poor and reversing the their natural resources sector. The Bank has helped benefits achieved through debt relief initiatives. build their capacity to secure just and fair deals when extraction concessions are awarded, deepening trans- In response to the food crisis, the Bank provided $10 parency in the management of revenues, and ensuring million in three special financing projects to help some that revenue from the commodities boom fuels sustain- of the most vulnerable countries cope with rising able development. Recognizing the potential of agricul- prices in fiscal 200S. It engaged more than 40 coun- ture to curb poverty, particularly in rural Africa, the tries in policy discussions on the crisis. Bank scaled up support for the sector in fiscal 200S and agreed to increase lending for agriculture in Africa from $36S million in fiscal 200S to $650 million in fis- Combating disease cal 2009 and to $SOO million in fiscal 2010. The Bank also pursued regional solutions for Africa's most To address pandemics, the Bank expanded funding demanding development challenges: bridging the to several landmark regional projects, including the infrastructure gap in the proviSion of the energy indis- Great Lakes Initiative on AIDS Support Project, the pensable for growing economies through initiatives Inter-Governmental Authority on Development such as the West Africa Power Pool, and supporting HIV/AIDS Partnership Program Support Project, the Africa's efforts to expand intra-African trade through Regional HIV/AIDS Treatment Acceleration Project, the expansion of transport corridors and customs and the Senegal River Basin Water Resource reform and harmonization. It boosted Africa's efforts to Development Project (malaria). It also established a access global markets and to use new trade platforms new agenda for action in preventing and dealing with such as the Internet (under the East African Submarine the consequences of HIV/AIDS through 2011 (see Cable System, for example) and funded efforts to com- http://www.worldbank.orglafr/aids). Through its bat HIV/AIDS, malaria, tuberculosis, avian flu, and booster program for malaria control in Africa, the Bank other pandemics. committed about $470 million in IDA resources and trust funds to Sub-Saharan Africa from fiscal 2005 to fiscal 200S-more than nine times the volume of World Bank assistance resources committed between 2000 and 2005. The funds will be used to purchase and distribute more The Bank-the world's largest provider of develop- than 21 million long-lasting insecticidal bed nets, pro- ment assistance to Africa-provided $5.7 billion in vide more than 42 million doses of artemisinin-based loans, credits, and grants to Africa in fiscal 200S. The combination therapy, support indoor residual spraying, Bank approved 91 projects. It also completed lOS eco- and strengthen health systems. nomic and sector work activities and SO nonlending technical assistance activities, many of which focused on strengthening the commitment of countries to Slow but certain progress reforms. Two African countries-the Central African Republic and Liberia-reached the decision point Over the past decade, Africa has shown that it can (when debt relief is revocable) under the enhanced expand and sustain economic growth. It now needs to Heavily Indebted Poor Countries (HIPC) Initiative in reduce income disparities by sharing the fruits of fiscal 200S. At completion point, they would benefit growth more equitably through policies that pull in the from additional relief under the Multilateral Debt Relief poor-particularly rural dwellers, women, and youth. Initiative. Liberia benefited from interim debt relief estimated at $2.S billion in nominal terms for an exter- Deficiencies in infrastructure-as measured by nal public and publicly guaranteed debt estimated at limited roads, power shortages, and inefficient ports, $4.7 billion in net present value terms. The nominal among other things-remain a major challenge, Perspectives on Development Fall 2008 I 51 The West Africa Food Industry Network of Economic Stakeholders is a regional think- tank for dialogue, organization and orientation for professionals of production, trans- formation and distribution in the agriculture sector. II. Regional Persp ct·ves Countries Eligible for World Bank Borrowing Angola Chad Ethiopia Liberia Niger South Africa Benin Comoros Gabon Madagascar Nigeria Sudan Botswana Con~t Democratic The Gambia Malawi Rwanda Swaziland Burkina Faso Repu ic of Ghana Mali Sao Tome and Tanzania Burundi Congo, Republic of Guinea Mauritania Principe Togo Cameroon Cote d'Ivoire Guinea-Bissau Mauritius Senegal Uganda Cape Verde Equatorial Guinea Kenya Mozambique Seychelles Zambia Central African Eritrea Lesotho Namibia Sierra Leone Zimbabwe Republic Somalia stifling the continent's capacity to compete in connection once the grid is available. By not enabling world markets and raising the costs of doing business poorer households to connect to the grid, and by not globally. Export costs in Africa account for lS-35 per- providing information to consumers so they obtain cent of total costs; in China, by contrast, they repre- their maximum benefit, the potential benefits of pro- sent just S percent. viding electricity to the poor are not being fully real- ized . Moreover, households themselves are willing to Recognizing the challenge of working in a continent pay for these benefits, so grid extension into rural prone to conflict, the Bank Group adopted a new Rapid areas can be financially viable. The Bank is starting to Response Policy in fiscal 200S, under which the Bank investigate "smart subsidies" of the sort already used can swiftly deliver assistance to countries emerging for off-grid electrification programs (such as solar from or severely affected by conflicts or disasters. home systems) . However, lEG's report shows that the Through a $250 million Forest Carbon Partnership costs of off-grid electrification are higher than those of Facility, the Bank encourages investment to stop defor- grid extension, and the benefits less. Directing funds estation and minimize the negative impact of climate to connection subsidies for grid extension can reach change in return for access to carbon credits. In fiscal more poor people at lower cost. 200S, the Bank launched the Lighting Africa Plan, which seeks to provide inexpensive, safe, and cleaner The Bank will continue to support initiatives like lighting to 250 million people. these to ensure that aid is effective, predictable, and supportive of results-oriented, country-led programs. The Independent Evaluation Group's new report, It will continue to help minimize transaction costs, in The Welfare Impact oj Rural Electrijication, confirmed keeping with the March 2005 Paris Declaration. the benefits are significant enough to justify the Toward that end, in fiscal 200S the Bank approved a investment. The evaluation also shows, however, that major simplification of and reduction in loan charges the larger share of benefits from rural electrification for the 79 creditworthy low- and middle-income continue to be captured by the nonpoor, although the countries that are clients and shareholders of IBRD. gap is closing with the expansion of electrification. The move has returned loan pricings to the levels Two factors explain this pattern: which communities in effect before the price increases of 1995. (See get connected and which households can afford the http://www.worldbank .orglafr.) Africa Fast Facts Total population: O.S billion Population growth: 2.4% Life expectancy at birth: 50 years Total Fiscal 2008 Total Fiscal 2008 Infant mortality per 1,000 births: 94 Female youth literacy: 64% New Commitments Disbursements 2007 GNI per capita: $952 IBRD $30 million IBRD $42 million Number of people living IDA $5,657 million IDA $4 ,848 million with HIV/AIDS: 22.5 million Portfolio of projects under implementation as of June 30, 2008: Note: Life expectancy at birth and infant mortality rale per 1,000 live $23.3 billion births are for 2006; female youth literacy is for 2005 ; HIVIAIDS data are from the UNAIDSIWHO 2007 AIDS Epidemic Update; other indicators are for 2007 from the World Development Indicatol's database. 54 Perspectives on Development Fall 2008 Africa E1 2 AFRICA AFRICA IBRD and IDA Lending by Theme IBRD and IDA Lending by Sector Fiscal 2008 I Share of Total of $5.7 Billion Fiscal 2008 I Share of Total of $5.7 Billion Water, Sanitation & A~riculture, Urban Develo~ment 11% 2% Economic Management Flood Protection 8% 6% Fishing ForestrY I I Environmental & Natural I I Trade & Integration Resource Management Education Social Protection & Financial & Risk Management Private Sector , 17% Develo~ment Trans~ortation 17% 17% Energy & Mining Social Development, Gender & Inclusion 5%; Human 2% Finance 10% DeveloQment Rural DeveloQment 9% Law & Justice & ~ Health & Public Administration Other Social Services Information & Rule of Law 1 29 % Public Sector Governance Communication Indus!rY & Trade Perspectives on Development Fall 2008 I 55 TABLE 1 II. Region I ers e Africa s I World Bank Lending to Borrowers in Africa by Theme and Sector I Fiscal 2003-2008 Millions of Dollars Theme 2003 2004 2005 2006 2007 2008 Economic Management 37.8 68.0 46.5 31.4 94.6 139.4 Environmental and Natural Resource Management 227.0 195.2 217.2 250.6 212.0 338.0 Financial and Private Sector Development 383.6 810.9 768.2 979.1 962 .7 982.1 Human Development 811.4 618.2 620.2 673.3 1,104.5 572.2 Public Sector Governance 432.4 818.4 708.0 964.7 859.2 1,612.1 Rule of Law 34.5 26.3 30.9 179.7 13.1 22.7 Rural Development 384.1 360.7 537.2 528.6 780.0 526.4 Social Development, Gender, and Inclusion 420.0 374.3 221.8 198.5 314.3 275.2 Social Protection and Risk Management 543.7 209.2 294.3 262.7 272.3 169.0 Trade and Integration 37.2 371.5 232.0 413.1 449.7 407.3 Urban Development 425.5 261.1 211.4 304.9 734.5 642 .2 Theme Total 3,737.2 4,115.9 3,887.5 4,786.6 5,796.9 5,686.5 Sector Agriculture, Fishing and Forestry 303.4 268.5 215.3 585.5 369.7 367.6 Education 423.6 362.9 369 .0 339.3 706.6 373.0 Energy and Mining 324.4 365 .8 509.5 524.5 773 .0 939.4 Finance 67.2 165.7 68.6 142.3 26.3 129.7 Health and Other Social Services 775.9 723.1 590.3 614.0 687.3 467.5 Industry and Trade 92.7 95.4 253.8 348.4 144.2 196.2 Information and Communication 41.4 52 .9 20.0 5.0 146.0 0.8 Law and Justice and Public Administration 721.8 1,004.2 1,077.5 1,263.0 1,352.5 1,748.0 Transportation 690.5 716.6 507.2 602.7 870.8 986.5 Water, Sanitation, and Flood Protection 296.3 360.8 276.2 361.9 720.5 477.9 Sector Total 3,737.2 4,115.9 3,887.5 4,786.6 5,796.9 5,686.5 OfwhichIBRD 15.0 0.0 0.0 40.0 37.5 30.0 Of which IDA 3,722.2 4,115.9 3,887.5 4,746.6 5,759.4 5,656.5 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. 56 Perspectives on Development Fall 2008 By extending existing strategies and investing in new tools, we can achieve the long-term goal of eradicating malaria. First comes control. Countries working in partnership can dramatically reduce malarias human and economic costs by expanding use of insecticide-treated bed nets, safe insecticides, and effective medicines. Eradication will require all this and more. From smallpox to yellow fever, vaccines have provided the world with our most efficient means of preventing disease. A first malaria vaccine is closer than ever. Making it available will require new donors and resources and the commitment of policymakers to lay the groundwork for vaccine delivery and use. For more information on the PATH Malaria Vaccine Initiative (MVI), contact Sally Ethelston at sethelston@malariavaccine.org MALARIA VACCINE INITIATIVE or phone + 1 240.395.2705. East Asia G rowth in the low- and middle-income economies of the East Asia and Pacific region picked up from 9.8 percent in 2006 to 10.2 percent in 2007, but was expected to decline by up to and Pacific 2 percentage points in 2008 because of the global slow- down. Nonetheless, sustained growth and pro-poor I East Asia and Pacific policies have produced dramatic reductions in poverty rural-urban migration . A $200 million development in many of the Bank's client countries in the region. In policy loan to Indonesia is deSigned specifically to 2007, the proportion of poor people (with consump- support policy reforms in the country's infrastruc- tion below $2 a day) fell to 25 percent, compared with ture sector. It is helping the government to map 69 percent in 1990. For the region's fast-growing infrastructure needs across sectors and regions and countries, growth has been accompanied by excep- pursue reforms that will benefit people with the tionally rapid urbanization. By 2025, the regions lowest access to infrastructure. In China, where urban population is likely to increase by 500 million energy demand is almost outstripping supply, a people, or 68 percent, placing stress on urban infra- $200 million loan will help catalyze large-scale structure and increasing the need for social safety nets. domestic finanCing to increase the efficiency of energy-intensive industries, while a $191 million While many countries in the region have reached, or loan in Liaoning Province will finance a project to will soon reach, the human development targets set demonstrate energy efficiency and environmental under the Millennium Development Goals, stark dif- performance of heating and gas services in selected ferences between countries remain. Indonesia, the cities. In Vietnam, a $155 million IDA credit and a Philippines, and Vietnam still have to catch up with $9.8 million grant from the Global Environment some of the wealthier middle-income countries, while FaCility are helping the city of Hanoi to improve Cambodia, the Lao People's Democratic Republic, urban air quality and expand its mass transit public Timor-Leste, and some fragile Pacific Island economies transport system. Meanwhile, a $50 million Bank may fall short of some of the 2015 targets. loan is supporting government efforts in China to help millions of rural migrants to shift into urban Most East Asian countries are well positioned to employment through skills development programs navigate the global slowdown because of invest- and social protection schemes. ments made in structural reforms in the past 10 years, but the food price crisis and climbing oil prices have dealt a blow to poor people in a number A dual challenge from climate of the region's client countries. The Bank is advising change several client countries in the region on safety nets for protecting the poorest people and on policy of In a region that both contributes to global green- directions for securing rice supplies, expanding house emissions and is highly vulnerable to the sources of renewable energy, and mitigating the effects of climate change, the Bank is working on short-term impact of high oil prices. many fronts. A climate change and disaster risk man- agement strategy is being developed for Papua New Guinea, and, with support from the Global World Bank assistance Environment Facility and the Global Fund for Disaster Relief and Rehabilitation, the Bank is helping The Bank in fiscal 2008 adopted a new strategy six Pacific Island countries to draw up plans for for the region that reflects the evolving challenges of adapting to potential impacts from climate change. In such a diverse range of economies. It focuses on China, five major carbon-trade agreements are bring- scaling up the Bank Group's engagement to address ing financial resources to support the introduction of the changing demands of middle-income countries cleaner technology in the steel sector, innovations in while also working to support countries dealing biogas reduction from agriculture, and broader use of with fragility and conflict. lower-carbon liquefied natural gas. At the same time, the Bank is working with China to reduce greenhouse In fiscal 2008, the Bank delivered $4.5 billion in emissions by improving energy efficiency, restoring lending for the region, including $2 .7 billion in forests, and investing in renewable sources of energy. IBRD loans and $1.8 billion in IDA credits and In Indonesia, a major agreement, brokered by the grants. Bank, provides local government with credits for preventing around 250,000 tons of carbon dioxide-equivalent emissions every year for the next Supporting countries to make 15 years by collecting and flaring methane gas from a the middle-income shift solid waste landfill site on the main island of Java. The Bank is supporting a number of East Asian countries that are addressing the challenges that Improving governance on the come with moving into middle income, including ground developing sources of clean energy, planning for better urban transport systems, providing social Groundbreaking work on governance and anti- safety nets, and managing the human impacts of corruption continues in the East Asia and Pacific Perspectives on Development Fall 2008 I P-" 59 II. egio al erspe ive Countries Eligible for World Bank Borrowing Cambodia Kiribati Malaysia Mongolia Philippines Timor-Leste China Korea, Marshall Islands Myanmar Samoa Tonga Republic of Fiji Micronesia, Palau Solomon Islands Vanuatu Lao People's Federated Indonesia Democratic States of Papua New Thailand Vietnam Republic Guinea region . A new four-year country assistance strategy a new Poverty Reduction and Growth Operation, for Papua New Guinea has put the transparent man- supported by a $15 million IDA grant, focuses on agement of the countrys natural resources and improving public financial management. revenue stream at the top of its priority list. Through a $17 million loan, the Bank is supporting the country's work to strengthen governance and accountability Addressing fragility and in mining sector institutions and to empower local improving human development people in mining communities to monitor the deliv- ery of programs and services. In Mongolia, which is As Timor-Leste emerges from a recent series of on the verge of a maj or minerals boom, the Bank is security and political setbacks, the Bank is working supporting the government to implement the with its donor partners on key areas of immediate Extractive Industries Transparency Initiative and is priority: improving health services , and building finalizing preparation of an IDA project to help the skills and employment opportunities for the coun- government set up an appropriate financial and reg- try's large youth population . A Bank study, "Timor- ulatory framework for managing the mining and Leste's Youth in Crisis," recommended six priority extractive industries sector in an environmentally actions aimed at empowering young people and sustainable and transparent way. expanding job opportunities. At the end of the fis- cal year, an IDA grant was being-prepared to sup- Communities across Indonesia are being empow- port the government's effort to bring young people, ered to oversee and manage their own development especially in urban areas, into mainstream employ- plans through the government's National ment. Another Bank study, "Opportunities to Community Empowerment Program. Two Bank- Improve Social Services: Human Development in supported urban and rural poverty reduction inter- the Pacific Islands," also highlights the challenges ventions worth a total of $409 million Cof which to growth and development posed by increasing over $315 million is on IDA terms) will support the numbers of youth and rising male unemployment. government's effort to reach all ofIndonesia's 70,000 In Indonesia, an $86 million Bank loan is support- villages with the community-driven and -monitored ing the government's effort to upgrade the qualifica- service delivery program. Meanwhile in Cambodia, tions of over l.4 million teachers and create world- East Asia and Pacific Fast Facts Total population: 1.9 billion Population growth: 0.8% Life expectancy at birth: 71 years Infant mortality per 1,000 births: 24 Total fiscal 2008 Total fiscal 2008 Female youth literacy: 98% New Commitments Disbursements 2006s GNI per capita: $2,180 IBRD $2,677 million IBRD $2,401 million Number of people IDA $1,791 million IDA $1 , III million living with HIV/AIDS: 2.2 m illion Portfolio of projects under implementation as of June 30, 2008: $20.9 Note: Life expectancy at birth and infant mortality rate per 1,000 live births billion are for 2006; female youth literacy is for 200:;; HIVfAIDS data are [rom the U AlDSlWHO 2007 AIDS Epidemic Update; other indicawrs are for 2007 from the World Development Indicators database . 60 p-'"'d I Perspectives on Development Fall 2008 I East Asia and Pacific FIGU E 3 I U E EAST ASIA AND PACIFIC EAST ASIA AND PACIFIC IBRD and IDA Lending by Theme IBRD and IDA Lending by Sector Fiscal 20081 Share of Total of $4.5 Billion Fiscal 2008 I Share of Total of $4.5 Billion Environmental &Natural Water, Sanitation & A~riculture, Urban Development 15% 17% Resource Management Rood Protection 8% 3% Fishing Forestry I I I I Education Trade &Integration Ener~ &Mining Social Protection & Risk Management 2% Financial & Social Development, Private Sector 6% Finance 26% Development Transportation 34% Gender &Inclusion 4%; Health &Other 5% Social Services Rural Development 12% Industry &Trade Rule of Law Law &Justice & Information & Public Sector Governance 14%1 Human DeveloQment Public Administration Communication 15% class educational institutions. Meanwhile, a new fight poverty and deliver government services more Bank-supported rural health program in China will effectively. And a $37 million Infrastructure for test new ideas and approaches for broadening rural Growth trust fund provided by the Australian govern- people's access to quality health services. ment is supporting the Banks analytical studies, poli- cy dialogue, and investment projects in energy, trans- port, water and sanitation, telecommunications, infra- Building partnerships and structure finance, and urban development. In partner- exchanging knowledge ship with the Association of Southeast Asian Nations (ASEAN), the Bank is holding a series of dialogues The Bank is working closely with the China Export- with renowned Asian leaders on their views of devel- Import Bank to bring China's development experience opment. The "Catalysts of Change" series connects 12 to other developing countries through staff exchanges sites via video across the Asia Pacific through the and joint pilot projects in Africa . A new Bank-man- Global Development Learning Network and has fea- aged trust fund worth $15 million, provided by the tured high-profile regional personalities. (See Republic of Korea, is helping East Asian countries http ://www.worldbank.orgleap.) Perspectives on Development Fall 2008 I p..."'d 61 II. egio al East Asia and Pacific I TABLE 2 World Bank Lending to Borrowers in East Asia And Pacific by Theme and Sector I Fiscal 2003-2008 Millions of Dollars Theme 2003 2004 2005 2006 2007 2008 Economic Management 29.7 0.0 87.0 78.7 82.5 0.0 Environment and Natural Resource Management 32 .3 432.2 446.9 396.4 565 .0 746.0 Financial and Private Sector Development 458.8 553.9 340.6 720.7 999 .1 1,132.9 Human Development 152.7 164.6 184.6 543.7 213.4 229.0 Public Sector Governance 341.5 299.0 344.5 385 .9 705.4 644.4 Rule of Law 7.3 67.3 45.8 13.4 0.0 23.5 Rural Development 411.7 400.9 484.1 465.7 608.2 555.4 Social Development, Gender, and Inclusion 143.7 167.2 241.1 83.3 189.9 197.1 Social Protection and Risk Management 161.5 5.5 88.7 144.9 43.8 99.3 Trade and Integration 138.0 82.9 126.5 112.15 233.0 177.3 Urban Development 233.6 399.2 493.5 456.9 403.7 663.2 Theme Total 2,310.8 2,572.7 2,883.3 3,401.6 4,043.9 4 ,468.1 Sector Agriculture, Fishing and Forestry 106.7 290.4 207.9 373.3 268.6 112.8 Education 225.7 118.6 228.0 287.9 125.3 234.3 Energy and Mining 254.3 67.2 359.1 425.2 118.5 666.1 Finance 22.7 49 .0 213.1 197.6 230.1 263.0 Health and Other Social Services 184.1 84.3 204.3 160.6 132.7 213.0 Industry and Trade 32.5 78.7 159.1 29.3 102.0 189.5 Information and Communication 6.6 0.0 5.0 5.3 0.0 10.0 Law and Justice and Public Administration 385.1 257.5 436.6 693.6 887.7 888.8 Transportation 684.3 1,209.9 306.7 652 .3 1,554.7 1,531.7 Water, Sanitation, and Flood Protection 408.7 417.1 763.7 576.5 624.3 359.0 Sector Total 2,310.8 2,572.7 2,883.3 3,401.6 4,043.9 4,468.1 OfwhichIBRD 1,767.1 1,665.5 1,809.8 2,344.3 2,806.6 2,676.7 Of which IDA 543.7 907.2 1,073.6 1,057.2 1,237.4 1,791.4 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. 62 p..."'d I Perspectives on Development Fall 2008 Higher Education and Applied Research for 'Sustainable Asia' For 50 years, the Asian Institute of Technology has worked closely with communities, governments and development agencies for the sustainable development of Asia, through: · Development and gender studies, agricultural and aquatic food production systems, energy, environmental and natural resources management, urban and regional planning; · Management studies with specialization in technology, entrepreneurship, strategy, public administration, international business, finance, marketing, and HRM; · Industrial systems engineering, civil and infrastructure engineering, and ICT for development; · Continuing professional education, short-course trainings, seminars, workshops and conferences, study visits, consultancy services, and tailor-made courses. Degrees PhD EMBA Professional Master's Professional Doctorate All is the home of the ASEAN Regional Centre of Excellence on MDGs. For further information, please visit: South Asia S outh Asia has experienced rapid economic growth, declining poverty, and progress in human develop- ment for more than a decade. As a result, for the first time in its history, the region with the worlds largest concentration of poor people has a real chance of end- ing mass poverty in a generation. Thanks to the econom- ic reforms of the past two decades, annual GDP growth in the region has averaged 6 percent since 2000. This growth has translated into a significant drop in poverty rates across the subcontinent. In the next decade, South Asia is expected to contribute more to global poverty South Asia reduction than any other region. If it can accelerate Supporting lagging regions and growth to S-10 percent a year and sustain it, it can sectors reduce income poverty to the single digits. In recent years, the Bank has sharpened its focus to Rapid growth alone will not necessarily end poverty, ensure that lagging regions such as Bihar in India and however. Economic growth has been accompanied by Baluchistan Province in Pakistan, sectors such as agri- rising inequality, and the region continues to suffer culture, and groups such as women and disadvantaged from some of the worst levels of human deprivation in minorities participate in growth . Inclusion is critical if the world . Corruption, confrontational politics, and the lives of the region's 400 million poor people are to conflict threaten to derail the process of economic improve. In fiscal200S, the Bank approved a $225 mil- development. The region has also been hard hit by the lion loan/credit to the state of Bihar to support imple- recent increase in world food prices, especially for rice mentation of critical structural reforms for attaining sus- and wheat, the two main staples in South Asia . To tainable and inclusive development while improving the address all of these issues, the World Bank's strategy for delivery of key public services. South Asia comprises three pillars-accelerating and sustaining growth, making development inclusive, and About 1 billion people live in rural areas in South strengthening human development-and the cross- Asia. As a result, the region's economy depends on agri- cutting theme of improved governance. culture-and hence irrigation-more than any other region in the world. The Bank provides assistance to The Bank's program also reflects an emerging new South Asian governments in many aspects of the man- reality: South Asia can no longer be characterized as a agement of water resources, including watersheds, uniformly low-income region. Growth is propelling groundwater, international waters such as the Indus several Indian states, along with Bhutan, Maldives, and Waters Treaty, and river basins. In fiscal200S, the Bank parts of Sri Lanka, into middle-income status. At the approved a $150 million credit to enhance water dis- same time, per capita incomes and human develop- tribution in Pakistan's Sindh Province. In neighboring ment indicators in Bangladesh, Nepal, most of Baluchistan, it approved a $25 million credit to boost Pakistan, and the lagging regions of India and Sri agricultural production and improve the use of water Lanka are those of low-income countries. In addition, in irrigation. In Bangladesh, it supported a $62 .6 mil- some 71 million South Asians live in conflict, and vio- lion project to improve agricultural productivity and lence is escalating in Afghanistan, northern Sri Lanka, farm income by revitalizing the national agricultural and parts of India and Pakistan. In recognition of the technology system. diverse needs of the region, the Bank is differentiating its engagement. In education, for example, the Bank is working with partners to improve quality in aspiring Ensuring service delivery amid middle-income countries and states, while in low- armed conflict income countries and states, its focus is on increasing both access to and the quality of primary schools. Continuing its support for developing Afghanistan'S rural economy and improving rural livelihoods, the Bank provided $250 million in grants to improve access World Bank assistance to basic services, increase equitable access to quality basic education, expand micro finance services, and The Bank approved nearly $4.3 billion for South Asia help curb the spread of HIV/AIDS. It also supported in fiscal 200S, $1.5 billion in loans from IBRD and a program of contracting out health services to non- $2.S billion in IDA credits and grants. governmental organizations, increasing the number of people with access to health care by some 6 million. An important component of the Bank's strategy is its analytic and advisory work. A recent report on gender in Bangladesh documented Significant improvements Strengthening infrastructure in gender equality and women's status while pointing to the need to increase female participation in the labor The Bank is working to address South Asia's vast force and give women greater voice in society A study urban and rural infrastructure deficits, often cited as on education in Punjab, Pakistan concluded that the the greatest constraint to foreign investment. Half of dramatic increase in private schools requires policy the region's population still lacks access to electricity makers to re-examine education policies. The Bank To help address the problem, the Bank provided a also published a report proposing economic incentives $400 million loan for the Rampur Hydropower Project and development initiatives to reduce opium produc- in the state of Himachal Pradesh that will provide tion in Afghanistan, conducted a study on labor issues renewable, low-carbon energy to Indias overstretched in India, and performed an environmental assessment northern electricity grid. It also extended a $600 mil- in Pakistan. lion loan to the Power Grid Corporation of India, Perspectives on Development Fall 2008 I p.."'U 65 II. Regional Perspecti es South Asia I Countries Eligible for World Bank Borrowing Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka backed by a guarantee from the government of India, improve living standards, and gain political influence designed to increase reliable power exchange between by banding together in some 630,000 self-help groups. regions and states. The Bank continued its support of this program in fis- cal 2008 by providing $65 million to finance critical investments in institution and capacity building that Making development inclusive will allow community institutions of poor women to become sustainable and self-reliant. The Bank has innovated and scaled up rural liveli- hood and empowerment programs that provide micro- finance, access to markets, and self-employment Responding to climate change opportunities to millions of poor people, especially women and marginalized groups. In fiscal 2008, it Few regions in the world are at greater risk from cli- extended its largest support package to Nepal, provid- mate change than South Asia. The 2007 floods in ing $253 million in IDA grants, $100 million of which Bangladesh, India, and Nepal, which claimed several were allocated to the second phase of the Poverty thousand lives, were a reminder that climate change is Alleviation Fund, which has reached more than already beginning to have an impact. The Bank's 900,000 rural Nepalese in 25 districts. Thanks to this response has been to Significantly scale up its activity program, more than 15,600 households now have on adapting to and mitigating climate change. It is pro- access to paved roads for the first time, and more than viding assistance and advocacy for national programs 32,000 new households now have access to water sup- in urban development, rural areas, coastal zone, and ply, bridges, and sanitation. ecosystem management. It is also embarking on a long- term program to strengthen water cooperation among Some 10,000 community infrastructure projects Bangladesh, India, and Nepal for flood control and have been completed under the Pakistan Poverty hydropower generation. Cooperation among Alleviation Fund, touching the lives of more than Bangladesh, India, and Nepal on flood mitigation 2.5 million people in about 5,000 villages. More than could benefit 400 million people. half of these projects provide safe drinking water or access to safe sanitation. In fiscal 2008, the fund Bangladesh is one of the most vulnerable countries in received additional financing of $75 million from the the world to extreme weather events. The Bank is Bank to mobilize 5 million people in 25 of the coun- working with various partners to help develop a major try's poorest districts into community organizations disaster preparedness program for the country. In fiscal and local support organizations. 2008, the Bank helped Bangladesh recover from the dual shocks of the August flooding and the November In Andhra Pradesh, India, Bank-funded projects cyclone by approving $245 million for flood and have helped some 8 million women build incomes, cyclone response, $175 million of which was quick South Asia Fast Facts Total population: 1.5 billion Population growth: 1.4% Life expectancy at birth: 64 years Infant mortality per 1,000 births: 62 Total fiscal 2008 Total fiscal 2008 Female youth literacy: 65% New Commitments Disbursements 2006 GNI per capita: $880 IBRD $1,491 million IBRD $1,175 million Number of people living with HIV/AIDS: 2.7 million IDA $2,756 million IDA $2 ,379 million Note: We expectancy at binh and infant monality rate per 1,000 live binhs are Portfolio oj projects under implementation as oj June 30, 2008: $22.8 billion for 2006; female youth Iite.racy is for 2005; HNIAIDS data are from the UNAIDSIWHO 2007 AIDS Epidt:mic Update; other indicators are for 2007 from the World Development Indicators database. 66 p.."'d I Perspectives on Development Fall 2008 Integrated Research and I RADe Action for Development Training & Capacity BUilding Biogasifiers for electricity in Gujarat 2008 Analysis of petroleum scenarios 2005 NEC Consultants (Private) Limited Leading Consulting Company of Environment & Energy in Pakistan COMMITTEDTO PROVIDE ENVIRONMENTAL ENGINEERING SERVICESTO THE PUBLIC & PRIVATE SECTOR, ENTREPRENEURS & INTERNATIONAL ORGANIZATIONS NEC SERVICES & PRODUCTS · Environmental Impact Assessment · Water Supply &Treatment · Environmental Planning & Management · Waste Water and Sludge Treatment · Environmental Audits · Solid Waste Management · Energy Audits · Air Pollution Control · Environmental Risk Analysis · Quality & Environmental Management · Environmental Monitoring & Control System &Tools · Disaster Management Planning · Hazard Assessment · Pilot Plant Studies · Environmental Training · Chrome Recovery Plants · CDM Documentation NEC INTERNATIONAL ASSOCIATES · HASKONNING, Royal Dutch Consulting · TECHNIKUS, Sweden Engineers and Architects, The Netherlands · HFC, Texas, USA · PORST CONSULT, Germany · KRACHTWERKTUIGEN, The Netherlands · W.S. ATKINS, United Kingdom · MDF, Management for Development · WOODHILL ENGINEERING CONSULTANTS, Foundation, The Netherlands United Kingdom · LAHMEYER INTL, Germany · IRAMCONSULT INTERNATIONAL, · Degremont, France Dubai, UAE · Sogleberg Sogreah, France · SUSTAINABLE RESOURCE DEVELOPMENT · EA International, USA INC., Canada · Knight Piesold, UK I HEAD OFFICE Plot No. 16, Perfect Site, 21-km Off: Ferozepur Road, Gajju Matta, Near Rohi Nullah Lahore-53100, Pakistan. Tel: (92-42) 527 4527-30 Fax: (92-42) 527 4526 Email: necpvt@wol.net.pk Web Page: http://www.nec.com.pk KARACHI OFFICE Mezzanine Floor, Principal House, Plot No. 39C & 41 C, 22 nd Commercial Street, Phase-II Extension, Defence Housing Authority (DHA), Karachi-75500, Pakistan. Tel: (92-21) 5893341-43 Fax: (92-21) 5893340 Email: necpvt@cyber.net.pk Web Page: http://www.nec.com.pk FIGURE 5 SOUTH ASIA I n. Regional P rspectives South Asia FGU E 6 SOUTH ASIA IBRD and IDA Lending by Theme IBRD and IDA Lending by Sector Fiscal 2008 I Share of Total of $4.2 Billion Fiscal 2008 I Share of Total of $4.2 Billion Water, Sanitation & Urban Economic Flood Protection Environmental &Natural Resource Management T Law &Justice &Public Administration 16% Education Rnancial & Private Sector Information & Rural Development 31% Development Communication <1 % Rule of Law Industry & Trade 4% Health & Other Social Services Human Finance 35 1 % Energy & Mining disburSing. Total World Bank assistance to Bangladesh and governance reforms in irrigation, the financial sec- for flood and cyclone relief is expected to exceed $400 tor, and education in Pakistan are two examples. million. The January 2008 India Detailed Implementation Review, which revealed serious indicators of fraud Improving governance and corruption in five Bank-financed health projects in India, has implications for how the Bank pro- Governance lies at the heart of the Bank's work in motes better governance-in country systems and South Asia. Over the past five years, it has been working within Bank-financed operations. The Bank's with client countries at the economy, sector, and project response to the review seeks to straddle the twin levels to strengthen governance, increase public challenges of strengthening country systems while accountability for results, and mitigate corruption. The enhancing the Bank's own supervision framework. Governance Country Assistance Strategy for Bangladesh (See http://www.worldbank.orglsar.) Perspectives on Development Fall 2008 I p...~ 69 TABLE 3 II.Re io al Per pectives South Asia I World Bank Lending to Borrowers in South Asia by Theme and Sector I Fiscal 2003-2008 Millions of Dollars Theme 2003 2004 2005 2006 2007 2008 Economic Management 123.5 7.7 87.5 56.6 1l.2 122.8 Environment and Natural Resource Management 94.2 94.8 433.9 93.0 309.7 386.6 Financial and Private Sector Development 689 .1 689.9 923.0 550.4 809.9 1,344.5 Human Development 546 .9 760.6 1,04l.6 391.7 1,476.3 788.3 Public Sector Governance 467.3 669.8 639.5 597 .9 916.6 423.7 Rule of Law 12.5 2.9 10.5 7.2 50.4 26.0 Rural Development 403.7 314.1 1,132.5 568 .6 1,095.5 574.1 Social Development, Gender, and Inclusion 197.3 642 .8 265 .3 366.9 372.5 321.5 Social Protection and Risk Management 184.4 98.6 337.0 472.3 550.5 145.4 Trade and Integration 197.3 52.7 63.7 138.8 31.3 68.8 Urban Development 2.6 87.8 59.0 553.7 7.7 45.2 Theme Total 2,918.7 3,42l.6 4,993.3 3,797.2 5,63l.6 4,246.8 Sector Agriculture, Fishing and Forestry 212.6 251.9 940 .8 368.9 733.6 420.5 Education 364.6 665.8 286.4 377.2 724.7 694.5 Energy and Mining 150.6 130.8 83.6 483 .0 243 .7 1,48l.4 Finance 185.8 331.4 461.8 73.0 678.1 86.6 Health and Other Social Services 369.0 334.6 493.2 195.9 1,006.2 247.5 Industry and Trade 144.9 46.1 485 .2 306.5 292 .9 167.5 Information and Communication 11.5 16.9 9l.9 50.0 2.8 13.2 Law and Justice and Public Administration 372.3 925 .5 885.7 1,10l.4 1,165.8 699.6 Transportation 1,067.6 444.8 1,18l.0 520.1 559.9 229.9 Water, Sanitation, and Flood Protection 40.0 273.7 83 .7 321.3 223.9 206.1 Sector Total 2,918.7 3,42l.6 4,993.3 3,797.2 5,63l.6 4,246.8 OfwhichIBRD 893.0 439.5 2,095.9 1,231.0 1,599.5 1,490.6 Of which IDA 2,615.4 2,982.1 2,897.4 2,566.2 4,032.1 2,756.2 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. 70 p...-d I Perspectives on Development Fall 2008 Dr. Prem Nath Agricultural Science Foundation (PNASF)Bangalore, India To promote agricultural education, research and sustainable development with a focus on food and nutrition security PNASF is a Charitable Trust registered with the Government of Karnataka, India. It is established to assist and encourage Indian agricultural scientists to address India's agricultural problems and at the same time use their skills for the benefit I of developing countries. , t facilitates interaction of knowledge and ideas among leading professionals in agriculture, development and planning, on issues of national and international, importance related to agriculture and food. PNASF supports 1 Assistance, organization and/or participation in national, regional or international conferences, workshops, expert consultations, seminars etc; 2 Assistance to small field projects through grant received; 3 Assistance in the dissemination of technical messages through technical publications; 4 Assistance to young agricultural scientists in research through modest grants; 5 Assistance to post-graduate students in agriculture through awards, scholarships etc and 6 Development of linkages or partnership with national, regional and international agriculture and related institutions and societies For further enquires please contact Dr. Prem Nath Agricultural Science Foundation # 9, 1st Cross, 1st Main, 1st Block, Rajmahal Vilas Extension 2nd Stage, Bangalore - 560094, Karnataka State, INDIA Tel: + 91 - 80 - 2341 5188, Fax: + 91 - 80 - 2351 1555 E-mail: pnasf@vsnl.net ; Website: www.pnasf.org Europe and T he Europe and Central Asia region enjoyed robust economic growth of 6.7 percent in 2007, continuing the strong growth and poverty reduction it has experienced since the Central Asia mid-1990s. Nearly 50 million of the regions 480 million people moved out of poverty between 1999 and 2006. Large gains in productivity-the I Europe and Central Asia result of continued enterprise restructuring, tech- European Union (EU). The Bank is supporting the nology diffusion, and double-digit growth in Energy Community of Southeastern Europe, investment (supported by rapid credit expansion which is establishing a market to share energy effi- through lending by domestic and foreign banks)- ciently. Albania, Croatia, the former Yugoslav as well as increased hydrocarbon production have Republic of Macedonia, and Serbia are part of this driven rapid growth in some of the region's coun- effort. tries. Along with strong growth in remittance inflows in many countries, these factors have also boosted private consumption. Using a differentiated business model Despite these gains, by the end of 2006, some 180 million people-more than a third of the The Bank supports poor countries and fragile region's population-continued to subsist on less states in a number of ways, including by decen- than $2.15 a day (the definition of poverty in this tralizing more staff to locations where capacity region because of the additional expenditures for constraints are severe and by helping with donor heating and warm clothing necessitated by the cold coordination, harmonization, and alignment. On climate), and m.illions more were living on less than the other hand, Europe and Central Asia's middle- $4.30 a day (the portion of the population that is income countries, given their diversity, also "economically vulnerable" and could become poor in receive tailored support. For example, in lower- the event of an economic downturn). middle-income countries, investment climate issues are important and require Bank assistance, Rising food and energy prices have complicated while in resource-rich countries, the Bank pro- the conduct of macroeconomic management vides support for diversifying the economic base across the region. In 2007, food prices rose about of clients. In EU-candidate countries, the Bank 12 percent in Central and Eastern Europe and supports the EU accession agenda, whereas in new nearly 20 percent in the Commonwealth of EU member states, the Bank supports countries in Independent States (CIS); energy prices rose about their aim to achieve convergence with EU average 8 percent in Central and Eastern Europe, 18 per- income levels. cent in middle-income CIS countries, and more than 30 percent in low-income CIS countries. Overall, inflation concerns are back on the front Improving infrastructure burner for policy makers in the region, as the CIS countries are now facing an average of 13.4 percent The Bank extended several loans for infrastruc- and the Central and Eastern European countries ture in the region. Among these were $200 million 6.1 percent in inflationary pressures . to improve housing in the Russian Federation, $450 million for railroad rehabilitation in Azerbaijan, $200 million to improve power trans- World Bank assistance mission in Ukraine, $105 million to improve regional and local roads in FYR Macedonia, and The Bank approved a total of 47 IBRDIIDA proj- $140 million to improve urban infrastructure in ects for $4.2 billion in the region, including two Ukraine . food-crisis responses (one regular project and one additional financing) in the Kyrgyz Republic. In addition, the Bank approved one special financing BOX 1 operation and one special financing-additional finanCing in Tajikistan to respond to the food crisis. Improving the Lives The Bank also completed 80 economic and sector of People in Europe and Central Asia work activities and delivered 88 nonlending techni- cal assistance activities focUSing on building country capacity. The Bank's newest flagship report on the The Bank held its first annual "Improving the region, Unleashing Prosperity: Productivity Growth in Lives of People in ECA: A Week of Celebration Eastern Europe and the Former Soviet Union, empha- and Learning" in March 2008. Awards of recogni- sizes the importance of continued policy reform- tion were granted to 22 Bank activities, including particularly in infrastructure, finance, and institu- projects for improving dam safety in Armenia, tional quality-for increasing economic productivity, increasing access to health services in the Kyrgyz which drives growth. Republic, providing higher-quality education for rural students in Romania, and restoring the Regional initiatives are particularly important to Northern Aral Sea. countries that have their sights set on joining the Perspectives on Development Fall 2008 I ~'"'d 73 II. Reg- onal P rsp Countries Eligible for World Bank Borrowing Albania Bosnia and Kazakhstan Montenegro Serbia Turkmenistan Herzegovina Armenia Bulgaria Kyrgyz Republic Poland Slovak Republic Ukraine Azerba~an Croatia Macedonia, fOlIDer Romania Tajikistan Uzbekistan Yugoslav Republic of Belarus Georgia Moldova Russian Turkey Federation Creating an attractive business sustained medium-term process of legal, institu- environment tional, and structural development via improved Structural reforms in most countries have driven quality of fiscal adjustment as well as social the region's ongoing success in creating an attractive protection through pension reform, implementa- business climate. Europe and Central Asia is reform- tion of administrative reforms intended to ing more rapidly than any other region in the world, strengthen administrative capacity, and support of surpassing even East Asia in terms of the ease of efficiency-increasing and cost-saving measures in doing business. Four countries (Croatia, FYR the health system to sustain implementation of the Macedonia, Georgia, and Bulgaria) were among the Public Financial Management and Control Law. top 10 reformers worldwide in 2007. The law has underpinned the outstanding improvements in Turkey's pubhc expenditure In November 2007, the World Bank opened the management system. Centre for Financial Reporting Reform in Vienna. Its goal is to help countries, primarily in Southeast Europe and the new EU member states, to Improving governance and enhance the quality of financial reporting stan- fighting corruption dards in order to improve their investment cli- mates. The Bank continues to work with the European Bank for Reconstruction and Development in conducting the Business Environment and Strengthening the legal, Enterprise Performance Survey (BEEPS). BEEPS institutional, and structural data have been used in studies of corruption, framework judicial systems, and other areas. These data pro- vided the backbone for the Anticorruption in The Bank approved a $400 million Public Sector Transition series of studies as well as for Judicial Development Policy Loan to Turkey to support a Systems in Transition Economies. Both studies Europe and Central Asia Fast Facts Total population: 0.4 billion Population growth: 0% Life expectancy at birth: 69 years Infant monality per 1,000 binhs: 23 Total fiscal 2008 Total fiscal 2008 Female youth literacy: 98% New Commitments Disbursements 2005 GNI per capita: $6,051 IBRD $3,714 million IBRD $2,696 million Number of people living with HIV/AIDS: 1.6 million IDA $457 million IDA $527 million Note: Life expectancy at birth, infant mortality rate per 1,000 live births are Portfolio of projects under implementation as ofJune 30, 2008: $18.1 billion for 2006; female youth literacy is for 2005; HIV/AIDS data are from the UNAIDSIWHO 2007 AIDS EpidemiC Update; other indicators are for 2007 from the World Development Indicators Database. 74 p.:U I Perspectives on Development Fall 2008 Europe and Central Asia FIGU E 7 EUROPE AND CENTRAL ASIA E EUROPE AND CENTRAL ASIA IBRD and IDA Lending by Theme IBRD and IDA Lending by Sector Fiscal 20081 Share of Total of $4.2 Billion Fiscal 2008 I Share of Total of $4.2 Billion Water, Sanitation & Urban Development Economic Flood Protection Environmental & Natural Resource Management Energy & Mining Trade & Integration 12% Social Protection & Rnance Risk Management 3% Rnancial & Private Sector Health & Other Social Development, \ 31% Development Social Services Gender & Inclusion 1%I Transportation 21% Rural Development IndustrY & Trade Rule of Law Law & Justice & Information & Public Sector Governance Human Public Administration Communication monitor changes over time to gain insights into what is working and what challenges , notably corruption, remain in areas that affect the business environment . Addressing global and regional issues The Bank is also addressing a few broad strate- gic themes, such as climate change and energy, at the regional level by building up its stock of knowledge and expertise and then operationaliz- ing on a case-by-case basis . Through lending and advisory services, the Bank is also increasingly supporting activities on energy efficiency, cleaner production, and waste management. Developing lifetime skills After the political and economic transitions of the past , countries in the region now face a third transition: aging populations, which will lead to a declining working-age population and the chal- lenge of how to pay for the necessary social safety nets while dealing with development progress. The region produced a flagship study, Red to Gray: The "Third Transition" oj Aging Populations in Eastern Europe and the Former Soviet Union, that sets the analytical basis for policy reforms that should help client countries deal with issues from pension policies to technology absorption and innovation . (See http://www.worldbank.orgleca .) 75 Perspectives on Development Fall 2008 TABLE 4 II. eg·o al Perspec iv Europe and Central Asia 5 I World Bank Lending to Borrowers in Europe and Central Asia by Theme and Sector I Fiscal 2003- 2008 Millions of Dollars Theme 2003 2004 2005 2006 2007 2008 Economic Management 19.5 242.0 17.4 4.6 5.7 2.6 Environment and Natural Resource Management 122.7 309.4 394.4 148.8 397.6 461.4 Financial and Private Sector Development 483.3 950.2 933.9 1,461.1 823.6 1,295.9 Human Development 550.4 297.1 539.4 360.3 258.3 228.8 Public Sector Governance 317.7 895.1 272.3 589.1 328.8 515.0 Rule of Law 289.8 132.3 66.8 40l.6 230.4 170.6 Rural Development 194.9 117.4 16l.5 238.5 150.1 260.2 Social Development, Gender, and Inclusion 55.9 33.9 246.6 95.1 23.2 24.4 Social Protection and Risk Management 288.5 305.3 668.8 335.9 346.7 125.6 Trade and Integration 130.6 182.6 424.4 226.6 539.5 497.9 Urban Development 216.7 93.6 368.0 183.0 658 .2 588.8 Theme Total 2,670.0 3,559.1 4,093.5 4,044.7 3,762.2 4,171.1 Sector Agriculture, Fishing and Forestry 335.4 168.6 107.0 117.9 53.4 126.3 Education 395.0 164.0 263.8 126.7 81.9 67.4 Energy and Mining 262.9 352 .2 657.9 1,108.3 337.6 546.7 Finance 195.8 836.9 259.1 374.5 353.5 311.5 Health and Other Social Services 415.3 244.3 484.9 339.9 192.9 215.9 Industry and Trade 269.0 126.3 253.5 274.8 395.5 499.0 Information and Communication 1.0 7.0 10.9 0.0 0.0 23.6 Law and Justice and Public Administration 698.9 1,176.8 1,160.6 1,271.7 812.6 919.0 Transportation 30.6 321.2 557.9 416.7 712.3 893.7 Water, Sanitation, and Flood Protection 66.3 162.0 337.9 14.2 822.4 568.0 Sector Total 2,670.0 3,559.1 4,093.5 4,044.7 3,762.2 4,171.1 OfwhichIBRD 2,089.2 3,012.9 3,588.6 3,531.9 3,340.1 3,714.3 Of which IDA 580.8 546.2 504.9 512.8 422.1 456.8 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. 76 Perspectives on Development Fall 2008 z. z. , · ion Pestalozzi offers a long term improving conditions in the nd we urgently need to raise ur work. Pestalozzi Student Pestalozzt changes the lives of exceptional Tracy Makuvire from lto1balbwt people from developing countries who could continue their education at home due to poverty. At a cost of £17,000 per year a Pestalozzl Scholarship ts a investment that lasts a lffe ime. 8ct1fozzt you are helping people heQlthcare, education and alumni use their talents to In need, actively seeking to make this a fairer and more peaceful place. " .,........ _ .... Mukonde Pestalozzi Student Zambia 2005 -2007 PreMed Undergraduate, Georgetown, Washington DC us today by donating at www.pestalozzi.org.uk or phone 00 44 1424 870444 International Village Trust, Ladybird Lane, Sedlescombe, BATTLE, TN)) OUF, UK Registered charity number: 1098422 <0 Photography Chris Parker Latin I n 2007, the Latin America and the Caribbean region marked a fourth straight year of growth in excess of 5 percent-its healthiest spurt since the 1970s. Governments in the region have put in place solid America macroeconomic policies and have taken advantage of favorable external developments to reduce vulnerabili- ties. Financial markets are recognizing the region's and the stronger economic and fiscal position. Brazil and Peru joined Chile and Mexico this year in achieving invest- ment grade. Caribbean I Latin America and the Caribbean Poverty rates have fallen, albeit modestly These $25.2 billion to the World Bank to help overcome declines are linked to the steady economic growth of poverty in the world's poorest countries. Part of these the past few years coupled with more pro-poor public resources will support the Banks ongoing efforts in five expenditures, including targeted cash transfer pro- IDA countries in the region: Bolivia, Guyana, Haiti, grams. The challenge for the region today is to sustain Honduras, and Nicaragua. growth and continue to provide economic and social opportunities for all while faCing a less favorable glob- SpeCial resources are being devoted to Haiti, which al environment. Of most concern in the immediate has recently emerged from civil conflict. In May, the term is management of the impacts of the twin chal- Board approved a $10 million grant from the newly lenges of the economic slowdown in the United States introduced Fast-Track Food Facility to help Haiti and rising fuel and food prices. respond to the food price crisis and to support imple- mentation of the country's poverty reduction strategy The rising global price of food, fuel, and other com- modities is having differing effects across and within Nicaragua will receive funding and debt relief under countries. In broad terms, the boom in commodity and a new, five-year strategy The strategy calls for $240 mil- agricultural prices benefits South America but hurts lion in IDA assistance aimed at spurring economic countries in Central America and the Caribbean (with development; enhancing productivity and increasing the exception of Trinidad and Tobago). Within coun- competitiveness; building human capital; and develop- tries-especially net importers-food and fuel are ing state institutions that will strengthen governance, especially sensitive and their rising costs are causing accountability, and citizen participation in government. sociopolitical stress. Declining remittances from abroad The World Banks Debt Reduction FaCility also is sup- could also reduce growth and negatively affect porting a $1.4 billion cash buyback of Nicaragua's antipoverty strategies, espeCially in Mexico and Central external commercial debt. America. Supporting the middle-income World Bank assistance countries' agenda The Banks strategic partnership with Latin America In March 2008, Colombia became the first country to and the Caribbean focuses on achieving broad-based, benefit from a new Bank policy that significantly sustainable growth to reduce poverty and inequality extends loan maturities. Board approval of a $300 mil- Although this goal applies to all countries in the region, lion loan with longer maturities will help the country the diversity of the countries means that priorities and match the terms of student loans with its borrowings solutions are tailored carefully to individual circum- from the Bank and thus will support Colombias efforts stances. For middle-income countries, the Bank offers to finance higher education for low-income students. an integrated package of services, including analytic advice, technical assistance, policy dialogue, new cus- Supporting the efforts of middle-income countries to tomized financial products, and a platform for global address global issues in individual country contexts has issues management such as trade and climate change. also been an important priority In fiscal 2008, the Bank For low-income countries, it provides concessional approved a Development Policy Loan for $501 million finanCing, donor coordination, and specialized support to support Mexico's efforts under its National Climate for fragile states. Change Strategy to mainstream climate change consid- erations in public policy The loan is designed to In fiscal year 2008, World Bank finanCing for Latin decrease the adverse environmental impacts of green- America and the Caribbean reached $4.7 billion, with house gas emissions and concentrations on a voluntary $4.4 billion in loans from IBRD and $0.3 billion in basis in key sectors. credits from IDA. Brazil, Colombia, and Mexico were the largest borrowers. Transportation, public adminis- tration and law, and education were the largest sectors. Providing timely analysis, sharing The region was responsible for 19 percent of total Bank knowledge IBRDIIDA lending and for 32.3percent of total IBRD lending. Latin America is the region that receives the largest volume of remittances, estimated at about $60 billion in 2007. To better understand the impact of remittances, Working with the poorest the region produced a report, Remittances and countries Development: Lessons from Latin America, which shows that the money migrant workers send back to their In December 2007, donor countries-including for home countries is linked to lower poverty levels and the first time Brazil and Mexico-pledged a record improvements in education and health indicators. 79 Perspectives on Development Fall 2008 II. eg-onal erspe es I Countries Eligible for World Bank Borrowing Antigua and Chile Ecuador Honduras Peru Suriname Barbuda Colombia El Salvador Jamaica St. Kitts and Trinidad and Argentina Nevis Tobago Costa Rica Grenada Mexico Belize St. lucia Uruguay Dominica Guatemala Nicaragua Bolivia St. Vincent and Venezuela, Dominican Guyana Panama the Grenadines Republica Brazil Republic Bolivariana de Haiti Paraguay Remittances also contribute to higher growth and invest- and research projects in Nicaragua and Peru; youth ment and are associated with lower economic volatility employment programs in the Caribbean and Because remittance income is equivalent to 10-20 per- Honduras; labor markets analytical and advisory assis- cent of GDP in many small countries in the Caribbean tance in the Andean countries; and the Brazil and Central America and to 3-10 percent in some larg- Knowledge and Innovation for Competitiveness study er ones (Colombia, Ecuador, Mexico), the economic slowdown in the United States could adversely affect poverty, particularly among recipient households. Bridging the social gap Creating equal opportunities for all citizens is crucial Boosting growth and job creation to reducing the social divide in latin America and the Caribbean. The World Bank is working with countries The Bank continued to support innovative programs across the region to develop universal and affordable in the region to stimulate the investment and competi- social protection; to support programs that reduce tiveness that sustain high rates of economic growth and poverty directly; and to increase access to education, job creation. The overriding priority over the medium- health, and public infrastructure. Major new lending in and long-term for the region is to maintain growth by fiscal 2008 included $83 million to the Brazil Family creating quality jobs for a larger proportion of the pop- Health Extension program to train family health care ulation and by increasing productivity. workers to provide basic health care to urban residents, a $15.7 million grant to the Haiti Community Driven Examples of work in this area include policy advice Development Project, and an $18.5 million IDA loan to on reducing costs of freight transport and logistics Bolivia to expand the quality and coverage of health services for Argentina, Brazil, Colombia, and El care services to women and children. The Bank also Salvador; a regional hydro-energy investment feasibili- provided support in this area through a major regional ty study for Central America; agricultural technology study on youth at risk. Latin America and the Caribbean Fast Facts Total population: 0.6 billion Population growth: 1.2% life expectancy at birth: 73 years Infant mortality per 1,000 births: 22 Total fiscal 2008 Total fiscal 2008 Female youth literacy: 96% New Commitments Disbursements 2005 GNI per capita: $5,540 IBRD $4,353 million IBRD $3,210 million Number of people IDA $307 million IDA $159 million living with HIV/AIDS: 1.8 million Portfolio of projects under implementation as of June 30, 2008: $7 Note: Life expectancy at birth and infant mortality rate per 1,000 live births billion are for 2006; female youth literacy is for 2005; HlV/AIDS data are from the UNAIDSIWHO 2007 AIDS Epidemic Update; other indicators are for 2007 from the World Development Indicators database. 80 p..."'d I Perspectives on Development Fall 2008 Latin America and the Caribbean GURE 9 LATIN AMERICA FI u 10 LATIN AMERICA AND THE CARIBBEAN AND THE CARIBBEAN IBRD and IDA Lending by Theme IBRD and IDA Lending by Sector Fiscal 2007 I Share of Total of $4.6 Billion Fiscal 2007 I Share of Total of $4.6 Billion Water, Sanitation & A~riculture, Urban Development 18% 3% Economic Management Flood Protection 10% 7% Fishing Forest~ II Environmental & Natural I I Resource Management Education Trade & Integration 5% Financial & Private Sector 6% Energ~ & Mining Social Protection & 13% Development Transportation 24% Risk Management 7% Social Development, 5% Finance Gender & Inclusion 2% Health & Other Rural Development 10% Human Development Social Services Law & Justice & Rule of Law Public Sector Governance Public Administration 18%1 110% Indust~ & Trade Strengthening governance ground, as well as by supporting South-South cooperation. In February 2008, more than 100 legislators from The World Bank is helping countries in Latin the Group of Eight (G8) countries and five emerging America and the Caribbean develop effective and sus- economies (Brazil, China, India, Mexico, and South tainable ways to promote good governance and trans- Africa) gathered in Brasilia to participate in a major parency through the strengthening of country systems, international forum on climate change, the GLOBE improving accountability for service delivery, and G8+5 Legislators Forum. Participating lawmakers dis- monitoring and evaluating results. In Guatemala, the cussed and agreed on a Post-2012 Climate Change Bank is continuing to support government efforts to Framework and a Bio-Fuels Statement. increase transparency in public procurement and fiscal management with a $100 million development policy The Bank has been working closely with the World loan. In Mexico, the Bank is supporting an ongoing Trade Organization on the Aid for Trade agenda and has effort to implement, administer, and publicize the participated in several subregional gatherings that country's Freedom of Information Act, one of the first addressed the competitiveness challenges faCing the laws of its kind in Latin America. region. Along with other partners, the Bank participated in Leveling the playing field on The Lancet's series on maternal and child undernutri- global issues tion, which was launched in Lima, Peru in February 2008. The meeting, cohosted by the Bill & Melinda Countries in the region are emerging as key players on Gates Foundation and Johns Hopkins University, high- issues of global concern, and the Bank's role has been to lighted the urgent need to address malnutrition in such support their efforts by partnering through innovative plat- countries as Bolivia, Guatemala, Nicaragua, and Peru. forms for an enlightened dialogue and action on the (See http://www.worldbank.orgllac .) II. Regional P rspe ives Latin America and the Caribbean TABLE 5 World Bank Lending to Borrowers in Latin America and the Caribbean by Theme and Sector I Fiscal 2003-2008 Millions of Dollars Theme 2003 2004 2005 2006 2007 2008 Economic Management 567.2 111.2 310.4 42.5 54.3 131.8 Environment and Natural Resource Management 240.3 159.1 841.2 454.0 353.0 664.8 Financial and Private Sector Development 819.8 912.4 729.6 1,518.7 498.9 622.7 Human Developm en t 1,171.7 1,046.7 469.8 502.6 1,002.5 445.5 Public Sector Governance 798.6 672.0 506.2 1,054.2 519.9 943 .4 Rule of Law 138.8 270.9 147.9 108.8 97.5 50.1 Rural Development 415 .9 249.6 331.8 236.5 415.4 307.5 Social Development, Gender, and Inclusion 123.1 268.9 187.9 282.6 175.5 109.2 Social Protection and Risk Management 1,050.3 926.9 950.4 606.2 419.0 307.0 Trade and Integration 59.6 364.6 233.4 720.3 300.5 224.8 Urban Development 435 .2 337.6 457.1 384.1 696.9 853.1 Theme Total 5,820.5 5,319.8 5,165.7 5,910.5 4,553.3 4,660.0 Sector Agriculture, Fishing and Forestry 58.4 379.6 233.4 291.0 83.4 333 .5 Education 785 .5 218.3 680.0 712.7 369.1 525.3 Energy and Mining 96.2 50.5 212.6 172.8 19.5 266.8 Finance 973 .0 405 .1 530.0 907.3 286.4 249.5 Health and Other Social Services 1,574.1 1,558.9 443.4 821.8 649.1 436.7 Industry and Trade 183 .4 428.0 199.9 569.2 263.3 462 .0 Information and Communication 52.4 14.0 44.7 20.8 0.0 0.0 Law and Justice and Public Administration 1,564.9 1,521.3 1,776.0 1,278.8 1,187.8 851.4 Transportation 146.4 675.7 556.4 785.4 1,223.9 1,083.4 Water, Sanitation, and Flood Protection 386.2 68.4 489.5 350.7 497.8 451.3 Sector Total 5,820.5 5,319.8 5,165.7 5,910.5 4,553.3 4,660.0 OfwhichIBRD 5,667.8 4,981.6 4,904.4 5,654.1 4,353.3 4,353.5 Of which IDA 152.7 338.2 261.3 256.4 200.0 306.5 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. 82 pw-d I Perspectives on Development Fall 2008 The Lilly MDR-TB Partnership is confronting multidrug-resistant tuberculosis, a disease so daunting that no single organization can fight it alone. The Partnership, a public-private undertaking, raises awareness and promotes prevention, mobilizes 18 partners on five continents in the while providing support for communities and battle to stop the spread of MDR-TB and save advocating on behalf of people living with lives. The Lilly initiatives all have one thing MDR-TB. The partners work together closely, in common: improved care for some of the sharing knowledge, expertise and research in world's most vulnerable people. the quest to contain and conquer one of the world's oldest diseases. The public-private partnership provides access to medicines, transfers manufacturing The Lilly MDR-TB Partnership is about more technology to resource-constrained countries, than the transfer of technology and know- conducts research, trains healthcare workers, how - it's the Transfer of Hope. THE ~ MDR~B PARTNERSHIP For more information visit www.lillymdr-tb.com II iliii", . .",,,, \"UI, or the fifth consecutive year, the Middle East and Middle East F North Africa region experienced strong economic growth. with real GDP increasing 5.7 percent in 2007. Growth was almost evenly distributed between and North the resource-rich and resource-poor economies in the region. As a result of skyrocketing global oU prices. the regions expon revenues increased 11.6 percent in 2007. reaching $632 billion. The food crisis has hit the Africa region, a net food importer, hard. IMiddle East and North Africa World Bank assistance that will focus on strengthening skills for develop- ment. The MNA Education Flagship Report was The Bank committed $1. 5 billion in loans, credits, launched during the year. It has already had signifi- and grants to the region in fiscal 2008. The Bank is cant impact: its message on the need for higher providing technical support and emergency financial quality education and greater accountability of educa- assistance to Djibouti and the Republic of Yemen to tion systems reverberated throughout the region. A help them respond to the food crisis. In countries with Regional PISA Analysis and the Syria Education ample food reserves and access to capital markets, it is Strategy furthered this important agenda. Technical providing advice on agriculture and food policies. assistance and policy advice complement an active lending program. The Bank delivered 44 economic and sector work activities and 85 nonlending technical assis- To address the continued problem of youth unem- tance activities in fiscal 2008. This work included ployment, the Bank completed a regional policy note a public expenditure review of Iraq, a development on youth and conducted several dissemination and policy review and country financial accountability consultation events in the region in fiscal 2008 . In assessment of the Arab Republic of Egypt, a gender Egypt, a pilot project addressing child labor and school assessment for Lebanon, a policy note on women and dropout interventions resulted in a national high-level micro finance in Iraq, a report on women workers and workshop to review policies in this area. The Bank is competitiveness in Egypt, and several regional reports also conducting similar activities to incorporate gender focusing on public financial management. The Bank concerns in Bank operations and to enhance women's also launched a flagship report on education in the participation in public life. region, The Road Not Traveled, which emphasizes the central role of incentives and public accountability in increasing the effectiveness of reform efforts and Su pporting sustainable meeting sector goals. Work also began on the Arab development and management World Initiative (see box 2.2). of natural resources Half of the region's population lives under conditions Improving education and training of water stress-and rapid population growth and cli- and reducing youth mate change will further constrict the availability of unemployment water. To address the problem, the Bank is stepping up its activities in the sector and deepening sector policy The Bank is implementing a significant portfolio dialogue. About half of all commitments to the water of activities that seek to increase access to education, sector in the region focus on water supply and sanita- lift quality, and provide market-relevant skills to tion, with the other half supporting water resource graduates. In fiscal 2008, the Bank approved a management, irrigation, and related fields. Analytical $20 million credit to the Republic of Yemen to work and country water assistance strategies have been improve secondary education and increase girls' prepared or are under way in most countries in the access. It also approved a $7.5 million loan to Jordan region. BOX 2 The Arab World Initiative The Arab World Initiative aims to accelerate the Private job creation integration of the Arab world into the global economy Efficient, effective, and transparent allocation and to spur growth, create better jobs, reduce disparities management of public resources for development within the region, increase social inclusion, and better Inclusion of women, youth, minorities, and the manage natural resources. Recognizing that countries poor in the Arab world have been underserved, the Bank Higher quality and relevance of education Grou p has launched consultations with a broad range Better management of natural resources, espe- of stakeholders to identify development priorities. To Cially water further this initiative, Bank activities in the Arab world Achievements to date include support for the estab- will focus on support for the following main goals: lishment of the Arab Water Academy and the cospon- soring of a conference on Strengthening the Pan Arab Development of physical and institutional infra- Free Trade Area. structure for trade and economic diversification 85 Perspectives on Development Fall 2008 sing y is for it d Exploiting the Developing Expanding .ft.a! networks CapitaI 1nv,. . More than 1. The share of Exporting gas t over the world ~ .. - NATIONAL IRANIAN GAS COMPANY www.nigc.ir II io I Pe Countries Eligible for World Bank Borrowing Algeria Egypt, Arab Iraq Lebanon Syrian Arab Yemen, Arab Republic of Republic Republic of Djibouti Jordan Morocco Iran, Islamic Tunisia Republic of Improving governance addresses enhancing the business environment; and a Governance and administrative reform have moved $6 million loan to support the development of to the forefront of the development debate in the exports in Tunisia. It conducted investment climate region. Core issues are the size of the public sector, the assessments or updates in Algeria, Egypt, Jordan, lack of adequate transparency and accountability, th.e Lebanon , Morocco, the West Bank and Gaza, and the mixed quality of regulation, the variable levels of serv- Republic of Yemen and performed advisory work on ice delivery, and the limited voice for civil society In industrial land reform and industrial land markets, response to these challenges, the Bank is supporting fiscal reforms, access to finance, and the business governance aspects of public financial management regulatory environment in Egypt, Morocco, and the and civil service reform in Iraq, Morocco, the West Republic of Yemen . Private and financial sector Bank and Gaza, and the Republic of Yemen. It is pro- development also constitutes an important element viding analytical services and technical assistance in of fee-based programs in Libya and the GulJ anticorruption, fiscal federalism and decentralization, Cooperation Council countries . demand-side governance, and right-to-information legislation. The Bank has conducted Public Efforts to improve the business environment contin- Expenditure and Financial Accountability assessments ued in 2007 , with 59 percent of the region's countries in most countries in the region, and it is currently con- instituting at least one positive reform. Egypt and Saudi ducting country governance and anticorruption assess- Arabia ranked among the world's top reformers. ments in Iraq, Lebanon, and the Republic of Yemen. It has also increased the use of its standard fiduciary eval- uation tools at the project level. Assisting people in conflict- affected countries Fostering private sector and The Bank remains active in Iraq, Lebanon, and the financial sector development West Bank and Gaza. In Iraq, it manages a portfolio of more than $800 million. Activities focus on strength- During fiscal 2008, the Bank approved a $500 mil- ening service delivery in a broad range of sectors and lion loan to support Egypt's financial sector reform assisting the government in its efforts to improve its program; a $51 million institutional reform grant to public financial management. The Bank is also working the Republic of Yemen, a large component of which to improve the livelihoods of displaced Iraqis in the Middle East and North Africa Fast Facts Total population: 0.3 billion Population growth : 1.7% Life expectancy at birth: 70 years Infant mortality per 1,000 births: 34 Total fiscal 2008 Total fiscal 2008 Female youth literacy: 84% New Commitments Disbursements 2005 GNI per capita: $2,794 IBRD $1,203 million IBRD $966 million Number of people IDA $267 million IDA $137 million living with HIV/AIDS: 0.4 million Note: Life expectancy at birth, infant mortality rate per 1,000 live births, and Portfolio of projects under implementation as of June 30, 2008: $7 female youth literacy are for 2005 ; HIV/AIDS data are from the UNAIDS 2006 billion Report on the Global AIDS Epidemic; other indicators are for 2005 from the World Development Indicators Database. 88 Perspectives on Development Fall 2008 I Middle East and North Africa 11 FIG E1 MIDDLE EAST MIDDLE EAST AND NORTH AFRICA AND NORTH AFRICA IBRD and IDA Lending by Theme IBRD and IDA Lending by Sector Fiscal 2007 I Share of Total of $0.9 Billion Fiscal 2007 I Share of Total of $0.9 Billion Environmental & Natural Water, Sanitation & 4% Resource Management Flood Protection 20% 2% Education ~~==~--------~I rl ~------------~==~ Trade & Inte ration Social Protection & Risk Management 2% 19% Energy &Mining Social Development, Gender &Inclusion 5%! Transportation 7% Rural Development 4%r Law & Justice & Public Rule of Law %1 1 Administration 13% Public Sector Information & Governance Communication 1% Financial & Private Sector Industry &Trade 2% / Human Development Health &Other Social Services 2% I Finance Syrian Arab Republic, lebanon, and Jordan and to Expanding fee-based programs enhance their integration with surrounding communi- ties. In Lebanon, the Bank scaled up its technical and Rising demand for the Bank's knowledge services led financial assistance in support of the country reform to the establishment of fee-based programs in Algeria, program through the First Reform Implementation Egypt, and Libya and the opening of a Bank office in Development Policy Loan. Combined with a technical Kuwait in fiscal 2008. In the Gulf Cooperation assistance grant, the loan will address reforms in the Council countries, where it has long provided fee- electricity and social insurance sectors. The Bank is based services, the Bank is aiming to engage more also assisting the government of Lebanon in improving strategically. Toward that end, the Kuwaiti and Saudi the livelihoods of Palestinian refugees in Nahed el- technical cooperation programs are transitioning to a Bared camp. The Bank's portfolio in the West Bank and multisectoral programmatic approach that aims to Gaza includes 13 projects whose goals are to improve increase policy implementation support. Similar the living conditions for Palestinian people, such as approaches are gaining momentum in Bahrain, Oman, water and sanitation, education, and muniCipal and Qatar and are being explored in the United Arab finance. In fiscal 2008, the Bank approved $40 million Emirates. (See http://www.worldbank.orglmna.) in budget support as part of a package of donor sup- port for the Palestinian Reform and Development Plan for 2008-2010. Perspectives on Development Fall 2008 I P: 89 TABLE 6 II. Reg·on I Middle East and North Africa ive I World Bank lending to Borrowers in Middle East and North Africa by Theme and Sector I Fiscal 2003-2008 Millions of Dollars Theme 2003 2004 2005 2006 2007 2008 Economic Management 0.0 0.0 45.8 0.0 0.0 0.0 Environment and Natural Resource Management 186.0 113.8 160.2 44.5 179.7 65.0 Financial and Private Sector Development 48.3 259.3 166.6 907.8 166.7 778.0 Human Development 140.9 192.1 95.4 128.5 14.3 17.2 Public Sector Governance 106.6 19.6 166.0 229.0 59.8 208.0 Rule of Law 48.0 1.8 1.8 46.9 33.0 11.2 Rural Development 100.6 65.1 155.3 177.9 126.6 53.3 Social Development, Gender, and Inclusion 63.1 70.7 123.0 67.8 174.9 75.5 Social Protection and Risk Management 96.1 31.6 98.5 69.7 15.4 35.7 Trade and Integration 3.6 158.3 0.0 0.0 16.0 17.2 Urban Development 262.7 178.7 271.1 28.5 121.6 208.8 Theme Total 1,056.0 1,09l.0 1,283.6 1,700.6 907.9 1,469.8 Sector Agriculture, Fishing and Forestry 196.7 27.2 229.2 15.3 208.5 0.0 Education 154.3 154.9 124.0 146.8 14.3 32.0 Energy and Mining 0.0 0.0 0.0 316.5 291.6 280.0 Finance 1.9 20.8 142.5 625.0 39.2 500.3 Health and Other Social Services 124.2 52.0 0.3 0.0 84.3 27.3 Industry and Trade 74.3 23.4 277.9 14.0 10.3 29.4 Information and Communication 2.3 0.0 18.5 0.0 0.0 9.0 Law and Justice and Public Administration 213.6 93.6 232.9 249.2 61.9 189.6 Transportation 107.9 409.6 29.0 237.6 27.4 104.7 Water, Sanitation, and Flood Protection 180.9 309.5 229.3 96.4 170.5 297.6 Sector Total 1,056.0 1,09l.0 1,283.6 1,700.6 907.9 1,469.8 OfwhichIBRD 855.6 946.0 1,212.1 1,333.6 691.9 1,202.5 Of which IDA 200.4 145.0 71.5 367.0 216.0 267.3 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. 90 p...""d I Perspectives on Development Fall 2008 Climate Change Low Carbon Economies, Resilient Societies Achieving here is now a strong consensus expressed through T the conclusions of the Intergovernmental Panel on Climate Change and other reports and the recent negotiations at the UN Climate Change Low Carbon Convention in Bali that the risks of inaction or delayed action on climate change are overwhelming; we possi- bly risk damages on a scale larger than the two world Growth for wars of the 20th century. The threat is particularly alarming for the world's poor people as inadequate responses to climate change would threaten progress on the World all the dimensions of the Millennium Development Goals. By Lord Nicholas Stern and Ian Noble The contents for Section III are derived from the World Bank Institute's Devetooment Outreach magazine (April. 2008). For more information. visit www.worldbank.orgJdevoutreach. I Achieving Low Carbon Growth for the World The problem of climate change involves a fundamen- Heiligendamm in June 2007 are essential if we are to tal failure of markets, namely that those who cause have a reasonable chance of keeping temperature damage by emitting greenhouse gases generally do not increases below 2 or 3°e. While these targets involve pay. This global problem requires a collaborative, glob- strong action, they are not overly ambitious relative to al response. Leadership, acceptance of differentiated the risks of failing to achieve them. responsibilities, emission targets, and trading must be at the heart of any future global agreement to reduce Second, efficient means of keeping down costs of greenhouse gas emissions. emission reductions must be implemented, using prices or taxes wherever possible. Each of the taxation and Developed countries must lead the way in taking market mechanisms based on quotas or permits has its action by: adopting ambitious emission reduction advantages and difficulties. Emission trading between targets of their own; promoting rapid technological countries, including rich and poor countries, will pro- progress to mitigate the effects of climate change; sup- mote international effiCiency, and helping poor coun- porting programs to combat deforestation; encouraging tries cover their costs of emission reductions will give effective market mechanisms; and honoring their aid them an incentive to playa role in this global challenge. commitments to the developing countries-all ele- ments of the Bali Action Plan agreed to in December Third, equity is a concern we need to take to heart, 2007. as the starting point for taking action is deeply inequitable. Wealthy countries are responsible for the bulk of past emissions, while it is the poor countries Criteria for fighting climate that will be hit earliest and hardest by climate change. change Fixed targets are crucial for managing risk and even a minimal view of equity demands that the rich coun- Global action to fight climate change must invoke tries' reductions should make up at least 80 percent of three basic criteria: these global targets. Currently, the US emits more than 20 tonnes of carbon dioxide (C02) per capita per year, The first is effectiveness. The scale of the response while Europe and Japan, with similar living standards, must be commensurate with the challenge, which emit around 10 tonnes. China emits about five tonnes means setting a stability target for emission reductions per capita, India around one and most of Africa much that keeps risks at acceptable levels. The overall targets less than one . To reach a 50 percent reduction in glob- of 50 percent reductions in global emissions by 2050 al emissions by 2050, the world average per capita (relative to 1990) agreed to at the G8/G5 summit in must drop from seven tonnes to two-three tonnes. Perspectives on Development Fall 2008 I p..'"'d 93 III. In Focus. Chm Chan Achieving Low Carbon Growth for the World For US$10-15 billion per year, half of the deforestation could be prevented. Second, technology development must be accelerat- ed and methods to promote technology transfer found. Addressing carbon capture and storage (CCS) technol- ogy for coal is particularly urgent since coal-fired elec- tric power will remain the dominant technology for some decades to come. However, industrialized coun- tries must demonstrate that CCS works before develop- ing countries can be expected to commit to this tech- nology. For price support (ideally soon taken over by the carbon markets) of US$5 billion a year, it should be possible to create 30 commercial scale coal-fired CCS stations within seven to eight years. Finally, it is vital that extra resources be made avail- able for new initiatives to help integrate adaptation into development as the extra costs developing countries face as a result of climate change are likely to be upwards of $80 billion per year as soon as 2015. Developed countries should move quickly to honor their commitments of 0.7 percent of GDP in aid by 2015, which would yield flow increases of $150-200 billion per year. All parties must also engage in discus- sions of how to implement their agreements in the UNFCCC that developed countries should "assist the developing country Parties that are particularly vulner- able to the adverse effects of climate change in meeting costs of adaptation to those adverse effects." The World Bank Group (WBG) has sought to provide leadership in each of these areas always within the con- text of the primacy of poverty reduction as the Group's raison d'etre. At the climate conference in Bali, the Forest Carbon Partnership Facility was launched and it seeks to raise at least $200 million to build capacity and conduct demonstration activities to combat defor- estation. In relation to technology transfer, the WBG is engaged in discussions with major donors to manage multi-billion dollar funds that will promote transfor- mational change in low carbon technologies in the developing world. In the recent replenishment of IDA15-the WBG's highly concessional lending and granting program for the world's poorest countries- funding was increased by 42 percent to $14 billion per year. This was partly in response to the Bank's submis- sion that climate change will increase the resources needed to maintain levels of benefits from IDA by $0.6 Resources for three key elements billion to $1.9 billion per year. Comprehensive climate risk management in IDA projects will likely be the sin- Developed countries must also provide resources, gle largest source of funding for adaptation in least including funding, technology transfer and capaci- developed countries in the immediate future. ty building, for three key elements of a global agreement: Action is vital and urgent First, a coherent, integrated international program to combat deforestation, which contributes 15-20 percent Action is urgent if we are to avoid the stocks of greenhouse gas emissions, should be established. of greenhouse gases building to levels that involve 94 Perspectives on Development Fall 2008 No matter where you want to catch the sun, S.A.G. 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For more details, visit our website at www.sagsolar.com. send an e-mail to sales@sagsolar.com or give us a call on +49-761-4770 - 3 33 Southern Africa's Leading Distance learning MBA Degree v" Highest academic standards v" Work-based assignments v" Relevant & Affordable v" On-call support v" Workshops throughout Southern Africa v" Registered and recognised v" Tuition by correspondence v" International accreditation v" Flexible payment plans v" Learn while you earn Entry requirements: Degree,National Diploma or equivalent qualification. Mature students may also be considered on the basis of work experience and recognition of prior learning. to enrol contact: DURBAN JOHANNESBURG Tel: +2731 300 7200 Tel: +27 11 403 9493 Fax: +2731 300 7297 Fax: +27 11 403 0980 email: mba@mancosa.co.za email: mancosa@iafrica. ocus. CI i ate Cha e Achieving Low Carbon Growth for the World unacceptable risks. We can control the flows of BOX 1 A "green" success story greenhouse gases, but any delay will build up more in Bangladesh stocks, which are very difficult to remove, making actions to stabilize at acceptable levels much more costly. Shidhulai Swanirvar Sangstha won first prize Different countries will choose different instru- in the 2007 Ashden Awards for Education and ments-such as taxes, trading and standards-and dif- Welfare . It was founded in 1998 to help poor, ferent technological mixes, but in all countries, energy marginalized communities living in the remote efficiency is possible . Price mechanisms for greenhouse Chalanbeel region of Bangladesh to develop sus- gases will be central to correcting the market failure, tainable livelihoods. Shidhulai has achieved this but the urgency and risk of the problem and inertia in by building up a fleet of flat-bottomed boats, all behavior imply that policy must go further. This means made with locally available materials, that make bringing forward technologies , deepening an under- their way through the shallow rivers and canals standing of what responsible behavior means, over- of the Chalanbeel to bring a range of education- coming other market failures that inhibit energy effi- al services and renewable energy supplies to ciency and innovation, and combating deforestation. water-side families. With leadership and the right incentives on carbon finance and technologies, developing countries will These boats use solar PV modules to generate engage in future global action, as already shown in Bali. all the electricity they need to provide daily class- es in primary education for children, libraries, The building of a global deal and its enforcement will training in sustainable agriculture, health advice, come from the willing participation of countries driven mobile phone and internet access, and battery- by the understanding that action is vital. Commitments charging facilities. Shidhulai has also provided are increasingly being demonstrated by political action villagers with 13,500 solar-horne-systems, 2,500 and elections around the world, and this understand- lanterns and 15,000 bicycle pumps that deliver ing is being reflected in the pubhc demand for respon- between 60 and 100 litres of water per minute- sible action. It is this public demand that will promote enough to irrigate half a hectare of land during and sustain action at the individual , community, the dry season. national and international levels. By putting into practice the agricultural Demonstration of effectiveness, efficiency and equity techniques they have learned on the boats and in agIo bal agreement will encourage all countries to using the renewable energy devices, farmers have pursue their development aspirations via low carbon been able to Significantly increase their income growth. New technologies can create great opportuni- and reduce the use of synthetic pesticides, with ties and provide impetus for new growth. Low carbon about one third of farmers eliminating their use growth is the growth strategy; weak action will eventu- altogether. aHy stifle growth. The costs of action are a small price to pay for the grave risks they would avert. Perspectives on Development Fall 2008 I p..""d 97 Low C limate action is complex, multi-faceted and, to a large extent, still evolving. It is complex, and yet we run the risk of simple "reductionism," Carbon, measuring the earth's carbon-cycling capacity as a com- modity that can be bought or sold on the global mar- ket. It is multi-faceted, and yet we constantly champi- High Hopes on one or two elements of climate change to the detri- ment of other equally important aspects and impacts. Making Climate Action Work for Develo t Low Carbon, High Hopes Making Climate Action Work for Development The good news is that climate action is still evolving, these groups of countries. More specifically, low carbon which means that we still have a window of opportu- growth is quite a different matter when it comes to nity to build consensus around an international carbon countries like China, Brazil and India than when policy framework that provides for fair and equitable addressing the issue in most of Sub-Saharan Africa and outcomes for all people and nations while providing a parts of Latin America and Central and South East Asia. solid and credible basis for mitigation and adaptation Many of these countries have major energy deficits for action. The Bali Roadmap, which was agreed to at the the most basic needs-to lump their roles and respon- Bali Climate Change Conference in December 2007, is sibilities in with those of emerging economies is not a start to this process. only unjust, but a non-starter. In this article, I confine my contribution to dis- cussing what I see as the unanswered questions around the tensions in political leadership and policy goals of Market mechanisms global climate action and in the pursuit of a low carbon future. The second set of tensions arise from the global repercussions of decisions taken by the wealthy and powerful, and by those who can afford to speculate on the price of carbon. While this may be stating the Tensions in political leadership obvious, the fact is that the financing, investment, trade, technology and policy issues around climate The tensions in political leadership on climate action are increasingly complex today in their interde- change emerge from a considerable diversity of views pendency and global dimensions. With big emitters and needs that reflect the very different carbon agendas able to export part of their obligation to reduce emis- of the rich, the emerging and the poor nations of the sions to developing countries, one is inclined to con- world . Tensions exist between national growth aspira- template whether the purported "sustainable develop- tions on the one hand and individual rights on the ment" benefits have been thoroughly analyzed and other. Tensions are emerging from incentives for more assessed or have simply been tacked on as an after- technological innovation and investment and a grow- thought. ing civic responsibility to actually change lifestyle and consumption patterns. Market-based decisions in London, Tokyo or New York can have , and have had, tremendous negative and If we view the atmospheric concentration of green- alien impacts on peoples' livelihoods and nations' house gases as an "open access resource ," then it fol- development trajectories. For example, the rich world's lows that efforts to manage-or more accurately, stabi- demand for oil and gas has blithely ignored, and in lize-this public good at an acceptable level will pro- some cases reinforced, poor governance and human duce suboptimal outcomes in the absence of a fair and rights abuses in resource-rich but economically poor equitable regulatory mechanism that penalizes the countries. wayward and rewards the virtuous. We in the conservation movement have learned bit- The problem, which we in the conservation move- ter lessons of how a "fences and fines" approach to ment know all too well from the management of other securing another global public good-biodiversity- common resources, is that it is the powerful and rich can inadvertently alienate poor people from their tradi- who tend to benefit during periods of resource mis- tional lands and thus derail their future development management and who are least affected by subsequent prospects. regulation, while the poor and disenfranchised too often lose out on both counts. We must be mindful of hiStory. We need to be very clear where "low carbon growth" and other associated Neither the Kyoto Protocol nor the negOtIatIOns climate actions are coming from, namely the developed under the United Nations Framework Convention on world's historic emissions and its inability to deal with Climate Change have resolved this problem. The ques- the resulting climate change. Low carbon growth must tion remains: how do we differentiate between roles be part of a comprehensive framework that includes and responsibilities of the historic big emitters, the greater commitments by developed countries to reduce recent big emitters and the truly poorer countries? their emissions and increase financial support to address the costs of adapting to the impacts of climate It is still the latter who may miss out and risk becom- change . ing a pawn in the "jump first-jump together" bargain- ing scenario. Thus, when considering low carbon That said, while market mechanisms will never, on growth , it is critical to develop different approaches their own, be the sole solution, we ought not to shy that take into account the particular characteristics of away from the potential they hold. Market mechanisms Perspectives on Development Fall 2008 I p..~ 99 III. I Fo u . C . mate C ng present a real opportunity to transfer wealth to those I on poor countries' economies. As changing climate con- who are already performing useful ecosystem manage- ditions threaten food and water supplies, developing ment functions from those who benefit from it, but cur- countries will be forced to divert their already limited rently do not pay for it. investment capital away from productive efforts towards disaster management. Too little consideration given to the Markets can create additional incentives for poor economics of climate action goes towards appreciating people to manage the environment, maintain its pro- how the costs of climate inaction by the developed world ductive capacity and keep ecosystems intact. For exam- are transferred to the developing world. ple, experience from Brazil's Ecologica Institute over the last 10 years has shown that market-friendly, socio- IUCN is making its own modest contribution to environmental and poverty reduction interventions can address this shortfall, particularly in East and Southern be designed and implemented by local communities Africa. Together with the International Institute for that contribute both to emission reductions and sus- tainable development. Technology transfer A third set of tensions revolve around how open wealthier countries will be to share and codevelop cut- ting edge technologies with poorer nations. Much of the industrialized countries' prosperity is due to their abili- ty to invent and incorporate technologies effectively into existing production and distribution cycles. Technology and its transfer are, however, not just a matter of "know-how," but also of politics. Today's innovation drives tomorrows competitiveness and the natural instinct in a globalized world is to safeguard, not to share, technological advances. Meanwhile, in poor countries~those very countries that the rich world wishes would pursue "low carbon growth"- investments are currently being made in energy-generating technologies that are out of date when built and are destined to become an economic and environmental millstone for those nations throughout their operational life. This not only predi- cates against our ambitions of low carbon growth but also misdirects scarce resources in our battle to reduce poverty and support economic growth. Managing the unavoidable Most of this article has explored the global tensions around "avoiding the unmanageable"-in other words, the framework for reducing emissions and promoting low carbon growth to avoid runaway climate change. However, there is one final set of tensions on the other side of the equation that need to be touched upon- and that is how do we globally, and poor countries in particular, manage the unavoidable? In other words, when thinking of investing in low carbon growth, we cannot afford to ignore the likely impact of more frequent catastrophic natural disasters 100 Perspectives on Development Fall 2008 Low Carbon, High Hopes Making Climate Action Work for Development Sustainable Development and the Stockholm Rapid climate change has been seen for too long as Environment Institute, we have developed and simply an environmental issue and, hence, not of cen- deployed a climate risk assessment tool for rural com- tral concern to governments and societies. With the munities, called CRiSTAL (Community-based Risk recognition that climate change is fundamental to the Screening Tool-Adaptation and Livelihoods). By col- welfare, indeed to the survival, of the global economy, lating local knowledge of the rural poor's priorities and a comprehensive, fair and equitable framework for of how they deal with catastrophic events, and by action that balances these two dimensions, namely cli- assessing what this means in terms of future climate mate change and sustainable development, is urgently scenarios, the initiative aims to provide both local and needed. Nature and the people that depend on it national decision makers with clear options for policy deserve no less. and program interventions aimed at reducing the vul- nerability of communities to climate change. Perspectives on Development Fall 2008 I 101 Low Carbon W e, as humans, must face the implications of growing pressures on our natural resource base. Income per person is growing sharply Growth in the most populous nations, particularly China, and India may not be far behind. More income implies more consumption; more consumption implies more produc- tion; and more production leads to increased use of nat- Our Ethical ural resources. Responsibility The supply of some natural-resource-intensive prod- I Low Carbon Growth Our Ethical Responsibility is both long-term and severe. Fortunately, public atten- ucts has increased sustainably, especially through tech- tion and understanding of the problem have increased nological advances such as the use of fertilizers and irri- and we now realize that urgent action within a global gation for agricultural crops. However, for others, the framework and agreement is needed. increase in supply needed to meet increased use is not sustainable, such as with deep sea fish, because we Energy production, use, and transportation account for exploit the resource faster than it is being renewed. 85 percent of greenhouse gas releases measured on a car- bon eqUivalent basis, and 98 percent of the United States Other resources, such as oil and gas, are depletable and carbon dioxide net releases. While figures vary by coun- finite . Technological advances have allowed us to tap pro- try, these three are the most fundamental underlying gressively lower qualities of such resources and to find sources of greenhouse gases. Thus, changes to these sec- resources that were previously undetectable. Advances tors are essential for reducing greenhouse gas emissions. have also allowed us to use the resources we extract more efficiently. However, since technological advances do not Much attention has been paid to the creation of "clean actually increase the resource base, these supply increas- energy," energy that can be produced with minimal car- es are unsustainable over the long tenn. bon dioxide releases. Wind, solar, hydro, nuclear, and biomass are all potential clean energy sources. But the Fortunately, most of the key natural resources are gov- cleanest energy is that which is not used in the first erned by market forces, so rising prices can be expected place. There is now a growing realization that efficient to keep supply and demand roughly in balance. energy use must be a fundamental component of any Consumers may not like the rising prices, but markets solution to the problem of global climate change . Hence, can effectively allocate these scarce resources to maintain an important goal is to use less energy per capita while balance. However, if no market exists for a specific continuing to strive for economically, socially and envi- resource, market forces cannot work effectively to create ronmentally sustainable and equitable growth. supply and demand balances. For these resources, sys- tematic overuse will occur unless appropriate interven- Some options for reducing greenhouse gas emissions, tions are implemented. Most of these resources are what focusing on low carbon growth, are explored in this arti- are called the global commons . cle. However, without the appropriate international agreements, implementation will be inadequate. The combination of two issues-a) technological advances that have allowed us to use a resource more rapidly, but have not increased the natural system's abili- Major options for reducing ty to renew the resource stocks, and b) lack of nonnal greenhouse gas emissions markets to balance supply and demand--can lead to intractable problems when the appropriate interventions A number of low carbon growth options exist for are absent. If we add a third issue-a global resource redUCing our net greenhouse gas emissions, particularly stock-then the problems become even more intractable. carbon dioxide, which could be implemented over dif- ferent time horizons. These include: Growing pressures on the improved efficiency in energy use, especially over atmosphere the short to medium term, through technological and behavioral changes; Perhaps the most important natural resource that suf- producing energy which minimizes carbon diox- fers from this trio of issues is the capacity of the upper ide emitted, especially for new power plants, and atmosphere to absorb greenhouse gases without realistically over the medium to long term; and destroying ecosystem services essential for human reducing carbon dioxide produced in non-ener- health and welfare. Technology has allowed us to "har- gy sectors, such as agriculture and forestry, and vest" this resource very rapidly, through our greenhouse industries, such as cement production. In addi- gas emissions into the atmosphere . But technology has tion to these, technologies are being developed to not altered the rate at which these gases are cleaned out capture and permanently store greenhouse gases, of the atmosphere. Thus, use of this atmospheric especially carbon dioxide . resource is also unsustainable, and because no one has property rights on the upper atmosphere, no natural market exists to effiCiently allocate this scarce resource. Improved energy efficiency Finally, use of this scarce natural resource is a global problem, with all nations drawing upon this global The desire to reduce greenhouse gas emissions and resource. The increasing concentration of greenhouse fossil fuel economics-prices and price volatility-pro- gases has already adversely impacted many ecosystems vide incentives for developed countries to reduce energy and endangers human health and welfare . The problem intensity, the amount of energy used to produce a unit of 103 Perspectives on Development Fall 2008 III. In Focus. cr ange I GDP or to perform some desirable service. In the United Regulatory mechanisms include halting sales of sport States, a 10 percent reduction in overall energy intensity utility vehicles (SUVs) , deregulating airlines, congestion would lead to a reduction in fossil fuel use by charges and increased energy taxes. The first would be 8.6 quadrillion Btu. This would have the same impact economically inefficient, the second is economically effi- on carbon dioxide emissions as would doubling the cient, but has probably increased energy intensity, and entire United States nuclear power output or by increas- the last two would economically efficiently decrease ener- ing, 25-fold, wind and solar-based energy production, gy intensity. with these increased energy outputs replacing equiva- lent amounts of fossil fuels . Many technological changes , such as LED lighting, optimized building design and construction, improved However, reducing energy intensity is a very different gasoline mileage, and efficient AC-DC converters, concept than increasing energy efficiency. "Energy effi- would improve energy efficiency. ciency" means economically efficient reductions in energy intensity. We can explore this relationship by Provision of information and incentives to encourage representing energy use on one axis and economic effi- changes in consumer behavior, such as using compact ciency on another (figure 1). fluorescent lights and replacing old energy inefficient appliances, are possible and options are being pursued in In a perfect market, economic efficiency increas- many developed and developing countries. Regional or es-the right side of the diagram-would not be pos- local land planning can be a short-to long-term option sible, since perfect markets would be economically and can help with energy efficiency in multiple sectors. efficient. Any increases or decreases in energy intensi- ty would decrease economic efficiency. However, Identifying options for improving energy efficiency markets are imperfect and energy markets riddled does not imply changes come easily. Various barriers and with failures . Thus opportunities exist for increases in market failures inhibit changes that would increase ener- economic efficiency along with opportunities for gy efficiency. These include: pricing below marginal cost; decreases in energy intensity. non-time-differentiated electricity pricing; limited infor- mation availability; and suboptimal incentives for tech- Many possibilities exist for energy efficiency nology development. Efforts to recognize and overcome improvements and economically efficient energy these barriers could lead to quicker adoption of energy intensification through a mixture of technological, efficiency measures. Accelerating market development, regulatory and behaviorallinstitutional changes . increasing funding of energy research and development, Thus, market mechanisms, regulatory frameworks risk-sharing to encourage innovation, and policy analysis and information availability could play critical roles . to improve the enabling and regulatory environments Figure 2 shows some of these possible changes. Some will help in these efforts. would increase energy efficiency, some would eco- nomically efficiently increase energy intensity, and some would reduce economic efficiency. For policy Low carbon energy production purposes, it is essential to determine which is which . For many developed countries, the majority of energy consumed originates from petroleum, coal and gas (see F GU E 1 conceptual relationship figures 3 and 4). In the US, all renewable energy, includ- between energy use and ing hydroelectric and biomass, is around 7 percent, with economic efficiency wind and solar being 0 .35 percent. In addition to energy efficiency changes, another option is to move towards low carbon or no-green- Decreasing energy use house-gas-emitting technologies. An increasing pro- Inefficient energy Energy efficiency portion of renewable energy along with improved ener- savings Improvements gy efficient and electricity production technologies are "freezing in the dark" Increasing options currently available. However, some of these economic efficiency electricity production technologies are characterized by Significant economies of scale, so that household or Waste Economically efficient community level solutions are not currently viable in (undesirable for economic, energy intensification security and environmental all countries. reasons) The World Bank, in its clean energy investment framework paper in 2004, recognized that meeting Source: Analysis by the author energy needs of developing countries is both an urgent need and a challenge . It will require national 104 p...-d I Perspectives on Development Fall 2008 Low Carbon Growth Our Ethical Responsibility IGURE 2 Technological, regulatory, and behavioral options that are available now or in the near future Technological · Regulatory Behavioral Decreased energy use "Smart bUlldtngs" S'ILlII I, l"tlll:1 1111: controls 11,:lt SUV s+<; d",IJI ; III II' LED IraIfic lights I Rt 'ur TIC'Cj ',.1tt \1,mLI',I::; l),!\,IIIIII" Opllmlzed building construction Compacl Uill)' Ii I'J fluorescent penetration Old alJplitlnce Overly strict building I replacement Eiflcienl AC-DC slanrlards converlers Behavioral change: program Hybrid thermostat lights, lire pressure, gas-eleclric vehicles driving patterllS PersonBi Increased Hybrid lntetnet Urowth 1 computer economic gas-electric vehicles I peneiralion efficiency AIIIIIIP - dt'rl:Qulallllll I Incandescent lighting High definition TV Accessible I business travel Source: Analysis by the author policies that provide incentives for energy effiCiency Ethical responsibirity for ensuring and incentives for mobilizing public and private a healthy future for our investment, nationally, regionally and globally. As grandchildren many developing countries accelerate their develop- ment and thus increase their energy demand, access A suite of instruments and approaches are needed to affordable, reliable, clean and modern energy serv- to limit carbon dioxide emissions in developed ices will help decrease poverty, proVide other cob en- countries. These include establishing carbon prices, efits-such as decreased exposure to air pollution- through a tax or cap-and-trade system, technology and provide many benefits due to energy access that development, regulatory frameworks, utility-based developed countries take for granted, such as light- programs, local land-use planning, infrastructure ing, cooking, space heating and cooling, and design, and corporate, government, NGO and civil improved communications, In helping developing society leadership, as well as changes in behavior countries-especially through technology transfer and and ethics. Changes in lifestyles and consumption investment opportunities- to "leapfrog" to clean and patterns can be encouraged to increase energy effi- modern energy production, distribution and use solu- ciency and Significant changes can be implemented tions will not only help their populations and develop- for transport and buildings, especially space heating ment goals, but will also help the global atmosphere. and cooling and lighting. 105 Perspectives on Development Fall 2008 III n Focu . eli mat Low Carbon Growth Our Ethical Responsibility I We need to pursue all these options, and to over- carbon emissions from non-energy sectors, particu- come the barriers associated with their adoption , in larly transport. Incentives for industry and public order to reduce greenhouse gas emissions, including education can help in encouraging energy efficiency and non-carbon dioxide emissions, such as methane and in moving towards low carbon growth and growth that fluorocarbons. In the short to medium term , we is equitable for developing countries. It is our choice and must concentrate on demand side reduction through our ethical responsibility: we can let the future climate energy efficiency and supply side, by using a larger change related crises put our grandchildren in an impos- proportion of solar, wind and, where possible, ther- sible position or we can anticipate the growing problems mal energy. We also have the technologies to reduce and take action now. IGU E u.s. energy consumption FIGU E World energy in 2005 and 2006 consumption in 2005 . 2005 . 2006 "Other" includes geothermal, solar, wind, wood, waste 45 180 40 160 35 140 ::::I 30 120 20 c: iii c: g 25 g 100 ~ 20 'E 80 "C "C 0'" ::::I 15 '" ::::I 0 60 10 40 20 0 ~ ~ ~ ~ $ cJ ~ ~ ~ :3.J ~ :,..Ci; ~ £> ~ & ~ .i§ <§i 0.25 %annual change South Africa Cameroon Ghana Source: World Development Indicators. Zambia Bur1untrles with :~ 978-0-8213-7394-1~ US$7OO ....::.., anal · the role of·1ntCmatiDDIl · of . ~ report is . _ ", ,................ .' .-._- . _1~CD.JIDI .bIe2008. 978-0-8213-739S-8). US$1.330 China Urbanizes Financing Energy Glohal MODitoring CoDSefDeJlce5, Strategies, and Efficiency Report 2008 PolIcies LessoDs from BrazIl, CJdDa, MDGs and the Edited by Shahid Yusuf and Ind.Ia, and Beyond EDviroJUDeDt: Igeada for Anthony Saich IDduslve iUUl S1ataIDabIe By Robert P. Taylor, Dne10pmeDt This volume discusses the Chandrasekar Govindarajalu, consequences of urbanization Jeremy Levin, Anke S. Meyer, Global Monitoring Report 2008 in China and identifies the key strategies and and William A. Ward is essential reading for those who wish to follow policies for sustaining desired rates of urban While energy efficiency projects could partly the global development agenda and debate. It development. meet new energy demand more cheaply than provides a comprehensive assessment of progress new supplies, weak economic institutions in toward the MDGs and related policies. It DIRECTIONS IN DEVELOPMENT addresses the challenge of climate change and January 2008. 228 pages. Stock no. C17211 developing and transitional economies impede environmental sustainability and assesses its (ISBN: 978-0-8213-7211-1). US$25.OO developing and financing energy efficiency implications for development. retrofits. This book analyzes these difficulties, suggests a 3-part model for projectizing and April 2008. 298 pages. Stock no. C17384 (ISBN: 978-0-8213-7384-2). US$26.00 Microfmance financing energy efficiency retrofits, and presents thirteen case studies to illustrate the issues and Handbook principles involved. Globalization Cor AD lDstItutIoaal aDd. I1DaDdal Penpective February 2008. 304 pages. Stock no. C17304 Development, (ISBN: 978-0-8213-7304-0). US$30.00 By Joanna Ledgerwood Revised Edition Trade, J1Jwace, JOd, Microfinance is not simply Ten Steps to a 1Iigratioa, ud Policy banking; it is a development tool. It has been Results-Based estimated that there are 500 million economically By Ian Goldin and Kenneth Reinert active poor people in the world operating Monitoring and Globalization and its relation to poverty reduction microenterprises and small businesses. Most of Evaluation System and development is not well understood. TIlls them do not have access to adequate financial I Hapdhook for newly revised edition examines how globalization services. The purpose of this Handbook is to bring can be more effective as a vehicle for shared Development Practiticmen together in a single source guiding principles and growth and prosperity. By considering what tools that will promote sustainable microfinance By Jody Zan Kusek and Ray C. Rist helps and what does not, the book presents and create viable institutions. The Handbook takes policy recommendations to make globalization This Handbook provides a comprehensive ten- a global perspective, drawing on lessons learned more effective as a vehicle for shared growth step model that will help guide development from the experiences of microfinance practitioners, and prosperity. It will be of interest to students, practitioners through the process of designing donors, and others throughout the world. This researchers and anyone interested in the effects and building a results-based monitoring and volume covers extensively matters pertaining to the of globalization in today's economy and in evaluation system. The Handbook describes international development issues. regulatory and policy framework and the essential each step in detail, the tasks needed to complete components of institutional capacity building, A copublication with Palgrave Macmillan UK· each one, and the tools available to help along such as product design, performance measuring May 2007. 328 pages. Stock no. C16929 the way. and monitoring, and management of microfinance (ISBN: 978-0-8213-6929-6). US$39.95 institutions. June 2004. 264 pages. Stock no. C15823 (ISBN: 978-0-8213-5823-8). US$39.95 * Customers in Westem Europe and Japan please December 1998. 302 pages. Stock no. C14306 order from Pa/grave Macmillan by visiting their (ISBN: 978-0-8213-4306-7). US$39.95 web site at www.palgrave.com. Perspectives on Development Fall 2008 I p...-d 173 · The rid B n Pu I Global Economic Iftica's Silk Road miniAtias of Prospects 2008 CbiDa uullDdia's New Human Security 'IftIuaology Diffusion in Ecoaomic Frontier Drawing upon data from the DneIopbag Wodd By Harry G Broadman . the Human Security Report 2005, this miniAtlas Global Economic Prospects New horiwns are opening ofHuman Security uses 2008: Technology Diffosion for Mrica, with a growing colorful world maps and in the Developing World number of Chinese and Indian other graphics to chart the examines the state of technology in developing businesses fostering its integration into advanced incidence and severity of global violence. With countries and the pace with which it has markets. However, significant imbalances will easy-to-read text and captions, this fourth advanced since the early 1990s. It comes on the have to be addressed on both sides of the volume in the World Bank miniAtlas series heels of an extended period of strong growth equation to support long-term growth. provides a visually-compelling introduction and a 15 year period of strong perfonnance November 2006. 384 pages. Stock no. C16835 to a dramatic but largely unknown trend: the in much of the developing world, which has (ISBN: 978-0-8213-6835-0). US$25.00 decline in the number and deadliness of armed contributed to substantial declines in global conflicts and wars over the past 15 years. poverty. While high oil prices and heightened market volatility may signal a coming pause in Challenges of May 2008. 66 pages. Stock no. C17221 (ISBN: 978-0-8213-7221-0). US$9.95 this process, over the longer tenn continued African Growth technological progress should continue to push 0pp0rtaDities, CoutraiDts, back poverty. ad Strategic Direc:tioas Priorities in January 2008. 220 pages. Stock no. C17365 Health (ISBN: 978-0-8213-7365-1). 1.JS$38.00 By Benno Ndulu, L. Chakraborti, L. Ujane, V. Ramachandran, Edited by Prnbhat Jha, Dean and J. Wolgin T. Jamison, Joel G. Breman, ....1111111111~ Forests Sourcebook Challenges ofAfrican Growth identifies Anthony R. Measham, George Alleyne, Martam Claeson, Practical Gaid.uce COl opportunities, constraints, and strategic choices David B. Evans, Anne Mills, SutaiDIDg Forests iD that Mrican countries face in their quest for and Philip Musgrove Deftlopmat CooperatiOD achieving the growth necessary for poverty alleviation. More important, the study provides a This companion guide to Disease Control The Forests Sourcebook broad menu of stategic options for ensuring not Priorities in Developing Countries, 2nd edition provides practical only that countries embark on a growth path, but speeds the cllifusion of life-saving knowledge operations-oriented also that the growth is shared and sustainable. by disrilling the contents of the larger volume guidance for forest sector engagement toward April 2007. 276 pages. Stock no. C16882 into an easily read format. Policy makers, the goals of poverty reduction, conservation (ISBN: 978-0-8213-6882-4). US$29.95 practitioners, academics, and other interested and economic development. Giving insight readers will get an overview of the messages into the complex interplay between different and analysis in Disease Control Priorities in realms of development work that effect or are Making Finance Developing Countries, 2nd edition; be alerted affected by forests, the Forests Sourcebook is a Work for Africa to the scope of major diseases; learn strategies valuable tool for any stakeholder involved in By Patrick Honahan to improve policies and choices to implement development or business projects that could and Thorsten Beck cost-effective interventions; and locate chapters have impact on forests. of immediate interest. This title takes a panoramic AGRICULruRE AND RURAL DEVELOPMENT SERIES view of Mrica's financial April 2006. 212 pages. Stock no. C16260 April 2008. 400 pages. Stock no. C17163 systems, both at the large (ISBN: 978-0-8213-6260-0). US$12.00 (ISBN: 978-0-8213-7163-3). US$30.00 scale ('finance for growth') and the small scale ('finance for all'). It presents a coherent policy approach that addresses Mrican priorities and Finance fOI All? The Many Faces can work in Mrican conditions. Pollc:Ies ad Pitfalls iD ExpudiDg .IccesI of Corruption February 2007. 260 pages + CO-ROM. Tnc:ldDf YabaeraJtDities Stock no. C16909 (ISBN: 978-0-8213-6909-8). Finance for All?: Policies and US$29.95 Pitfalls in Expanding Access at the Sector Lnel develops indicators to Edited by J. Edgardo Campos An East Asian measure access to financial and Sanjay Prndhan services, synthesizes research that evaluates Corruption is a multidimensional Renaissance the impact of access on growth and poverty phenomenon that rears its head in many Ideas (or Economic reduction, and sets out principles for effective places. For this reason, it is difficult and Growth government policy on broadening access and challenging to assess how well a country is building inclusive financial systems. doing in addressing it. This title provides guidance to practitioners and policymakers in the design of anticorruption reforms. .- Edited by Inderrnit S. Gill and Homi Kharas An East Asian Renaissance is a major study on POLICY RESEARCH REPORTS November 2007. 300 pages. Stock no. C17291 the recent economic growth in East Asia. In this OSBN: 978-0-8213-7291-3). US$30.00 April 2007.480 pages. Stock no. C16725 timely book the authors address how development OSBN: 978-0-8213-6725-4). US$45.00 strategies should be adapted in response to these changes and how the region can complement international with domestic integration. May 2007. 384 pages. Stock no. C16747 (ISBN: 978-0-8213-6747-6). US$39.95 174 p..""d I Perspectives on Development Fall 2008 Transforming Puhlic Finance Assets, Livelihoods, Microfinance in China and Social PoUcy InstitutiODS Reform ad Growth for · Edited by Garoline Moser , and Harmonious Sodety AnisA. Dani Pnmdiag F1Ill Fiu.D.cial Services to the Poor Edited by Jiwei Lou Assets, Livelihoods, and Social and Shuilin Wang Policy discusses the diverse By Joanna Ledgerwood strategies adopted by people and Victoria White This book brings together analysis and inSights in different contexts to accumulate assets from high-level Chinese policy-makers through migration, housing investments, natural Given the immense need for access to all and prominent international scholars in resources management, and informal businesses. financial services by low-income people, addressing the key challenges China is facing An asset-based social policy can strengthen this book provides a practical guide for in maintaining rapid growth and achieving asset accumulation strategies as well as help the practitioners, regulators, donors, investors, and the Government's stated goal of creating a poor overcome the constraints of unfavorable academics involved with credit-focused MFIs hannonious society. It analyzes such key policy insti tu tional environments. contemplating becoming licensed as regulated issues as: public finance and the changing role deposit-taking financial intermediaries. NEW FRONTIERS OF SOCIAl.. POLICY SERIES of the state; fiscal reform and revenue and August 2006. 566 pages. Stock no. C16615 expenditure assignments; inter-governmental May 2008. 280 pages. Stock no. C16995 (ISBN: 978-0- (ISBN: 978-0-8213-6615-8). US$50.00 relations and fiscal transfers; and financing 8213-6995-1). US$30 and delivery of basic public goods such as compulsory education, innovation, public health, International andSocial protection. Development ftUglition, ECODOnUe January 2008. 400 pages. Stock no. C16927 and Faith Development and OSBN: 978-0-8213-6927-2). US$35.OO WbeJe MbuI, Heart, aU Soul PoUcy Work Together Edited by Maurice Schiff Inclusive States By Katherine Marshall, and Gaglar Ozden Soc:lal PoUc:y and Marisa Van Saanen This book provides new Stnu:taral1Dequlitles Development and Faith explores and highlights evidence on the impact of migration and Edited by Anis A. Dani promising partnerships in the world between remittances on several development indicators, and Arjan de Haan secular and faith development entities. It including innovative thinking about thenexus recounts the evolving history of relationships between migration and birth rates. In addition, The heterogeneity of social between faith and secular development the book identifies the effect of host country structures and cultural identities institutions. It focuses on the Millennium policies on migration flows, examines the in many developing countries, together with Development Goals as a common framework determinants of return and repeat migration, and traditional hierarchies, rivalries, and deep-seated for action and an opportunity for new forms of explores the degree of success of return migrants biases, has perpetuated inequities. This title collaboration and partnership. upon return to their country of origin. examines the role of the state and society in addressing structural inequalities and identifies a June 2007. pages. Stock no. C17173 A copublication with Palgrave Macmillan UK* (ISBN: 978-0-8213-7173-2). US$30.00 set of policy recommendations to redress them. TRADE AND DEVELOPMENT SERIES NEW FRONTIERS OF SOCIAL POLICY SERIES June 2007. 320 pages. Stock no. C1:6935 (ISBN: 978-0-8213-6935-7). US$39.95 April 2008. 295 pages. Stock no. C16999 Global Issues (or * Customers in Western Europe and Japan please (ISBN: 978-0-8213-6999-9). US$30.OO Global Citizens order from Palgrave Macmillan by visiting their ID I'IlInNbu:tioa to Illy web site at www.palgrave.com. Institutional Ievelopment ChaDeDgIs Pathways to Equity By Vinay K. Bhargava Remittances and IddreaiDg IDequIity Traps In our world, there are many Development Edited by Michael Walton, Anthony development issues whose resolution requires international action. Examples include global Lessou &om LatiD Americ:i. J. Bebbington, Anis A. Dani, and Arjan de Haan poverty, communicable diseases, education, Edited by Pablo Fajnzylber migration, climate change, access to water, Institutional Pathways to Equity tackles the hunger, international trade, international and J. Humberto Lopez relationship between equity and development, financial stability, and conflicts. Effects of these This book explores the large the place of institutions in determining these global issues, which are already being felt in our heterogeneity in migration and remittances relationships, and the conditions under which societies, are expected to become even more patterns, development impact, and policy particular institutional arrangements can either acute as in the next 50 years. The objective of implications across Latin America and the block or promote transitions toward more this timely book is to promote an understanding Caribbean, ranked at the top of remittance- equitable forms of development. of key global issues and why they matter, of the receiving regions. Its analYSis helps policy NEW FRONTIERS OF SOCIAL POUCY SERIES forces that are shaping public and private action makers trying to respond to increasing to address these issues, and to highlight the remittances flows. March 2008. 280 pages. Stock no. C17013 World Bank's own work on these issues. (ISBN: 978-0-8213-7013-1). US$25.OO LATIN AMERICAN DEVELOPMENT FORUM August 2006. 482 pages. Stock no. C16731 February 2008. 408 pages. Stock no. C16870 (ISBN: 978-0-8213-6731-5). US$39.95 (ISBN: 978-0-8213-6870-1). US$30.OO 175 Perspectives on Development Fall 2008 v. The War d Bank b ications miDiAdas of Beyond Economic Where Is the Wealth Millennium Growth,Second of Nations? Development Goals Edition MeasaIhIg Capital for tbe Building · Belter Wodd AD IDtJodIu:tiou. to 21st CeDtary SustaiaaIale DnelopmeDt This title presents estimates How far are we towards meeting these Millennium By Tatyana P. Soubbotina of total wealth for nearly 120 Development goals? And what resources are countries, using economic What is development? And what does it theory to decompose the wealth of a nation into needed to help those countries that are not take to make development sustainable? its component pieces: produced capital, natural on track? The third volume in the miniAtlas How can we measure and compare levels of resources and human resources. The rigorous series, Building a Better World is an at-a- development for different countries? The author analysis, presented in accessible format, tackles glance guide to the world's most pressing challenges readers to find their own answers issues such as growth, development and equity. problems and challenges. to these complex questions by analyzing and July 2005. pages. Stock no. C16175 December 2005. 208 pages. Stock no. C16354 synthesizing information on a range of critical (ISBN: 978-0-8213-6175-7). US$9.95 (ISBN: 978-0-8213-6354-6). US$29.95 and interrelated development issues. June 2004. pages. Stock no. C15933 How Universities (ISBN: 978-0-8213-5933-4). US$25.00 Performance Promote Economic IccountahUity and Growth ~-~ The Bole of Combating By Shahid Yusuf and Kaoru Parliaments in Corruption Nabeshima Cmbing Corruption Edited Anwar Shah The distinguished contributors Edited by Rick Stapenhurs~ Niall This volume provides to How Universities Promote Johnston, and Riccardo Pelizzo an analytical framework and operational Economic Growth examine the wealth of In most countries, parliament approaches needed for the implementation international experience on efforts to multiply has the constitutional of results-based accountability. Major subject links between universities and businesses. They mandate to both oversee government and areas covered in this book include: performance offer valuable and succinct guidance on some of to hold government to account; often, audit based accountability, e-govemment, legal and the most effective policy measures deployed by institutions, ombuds and anti-corruption institutional framework to hold government national and regional governments, firms and agencies report to parliament, as a means to account; fighting corruption; external universities to enhance the contribution that of ensuring both their independence from accountability and the role of supreme audit tertiary institutions can make to economic change. government and reinforcingparliament's position institutions on detecting fraud and corruption. DIRECTIONS IN DEVELOPMENT at the apex of accountability institutions. At PUBLIC SECTOR GOVERNANCE AND ACCOUNTABIUTY SERIES the same time, parliaments can also playa December 2006. 312 pages. Stock no. C16751 key role in promoting accountability, through June 2007. 448 pages. Stock no. C16941 (ISBN: 978-0-8213-6751-3). US$35.00 constituency outreach, public hearings, and (ISBN: 978-0-8213-6941-8). US$40.00 parliamentary commissions. This title will be of Africa's Futule, interest to parliamentarians and parliamentary staff, development practitioners, students of Moving Oat of Africa's ChaDenge development and those interested in curbing Poverty, Volume 1 Eady CbDdhaotl Cue ad corruption and improving governance in CrosHiscipIDIuy DntlopIeDt In SU-Sahuaa developing and developed countries alike. Pmpec:tIves on Moltillty IfrIca WBI DEVELOPMENT STUDIES Edited by Deepa Narayan and Edited by Marito H. Garcia, Alan September 2006. 276 pages. Stock no. C16723 Patti Petesch Pence, and Judith Evans (ISBN: 978-0-8213-6723-0). US$35.00 This book brings together the latest thinking Africa's Future, Africa's Challenge compiles about poverty dynamics from diverse analytic traditions. It features the results ofnew the latest data and viewpoints on the state of Sub-Saharan Mrica's children. Topics covered Enhancing comparative research across more than 500 include the rationale for investing in young Agricultural communities in 15 countries. children, policy trends in early childhood Innovation A copublication with Palgrave Macmillan UK* development (ECD), historical perspectives low to Co Ieymul MOVING OIIT OF POVERTY SERIES of ECD in Sub-Saharan Mrica including the StIeDgthaiDg July 2007. 392 pages. Stock no. C16991 indigenous approaches, new threats from HIV/ AIDS, and the importance of fathers in of Beseuch Systems ~SBN: 978-0-8213-6991-3}. US$40.00 children's lives. The book also addresses policy Enhancing Agricultural Innovation evaluates * Customers in Westem Europe and Japan please development and ECD implementation issues; real-world innovation systems and assesses order from Palgrave Macmillan by visiting their presents the ECD programming experience in the usefulness of the concept in guiding web site at www.pa/grave.com. several countries, highlighting best practices and investments to support knowledge-intensive, challenges; and evaluates the impact of ECD sustainable agricultural development. A programs in a number of countries. typology of innovation systems is developed; DIRECTIONS IN DEVELOPMENT strategies to guide investments for strengthening innovation capacity are drawn up; and concrete January 2008. 556 pages. Stock no. C16886 interventions options defined. (ISBN: 978-0-8213-6886-2). US$25.00 AGRICULTIJRE AND RURAl. DEVELOPMENT SERIES November 2006. 184 pages. Stock no. C16741 (ISBN: 978-Q-8213-6741-4). US$29.95 176 Perspectives on Development Fall 2008 1bols for CettiDg to Know International Trade Institutional, the Wodd Bank and Climate Change Political, and A Guide for Young People Economic. Legal, ad Social Ana1ysis of Wtitatiollal Pa.... 1ifts A general, accessible Policy Reform introduction to the World This book is one of the first Bank for young people, this comprehensive attempts to I Soarc:eItooIr for guide provides an overview look at the synergies between Development PractitioDm of the Bank's history, organization, mission, climate change and trade objectives from By Jeremy Holland and purpose. economic, legal, and institutional perspectives. June 2005. 108 pages. Stock no. C15914 It addresses an important policy question - how Tools for Institutional, Political, and Social Analysis (ISBN: 978-0-8213-5914-3). US$15.OO changes in trade policies and international ofPolicy Reform introduces a framework cooperation on trade policies can help address and a set of practical tools that analyze the global environmental spillovers, especially institutional, political, andsocial dimensions of policy design and implementation. Poverty and the GHG emissions, and what the (potential) April 2007. 286 pages. Stock no. C16890 Environment effects of (national) envirorunental policies that are aimed at global environmental problems (ISBN: 978-0-8213-6890-9). US$35.00 UDdmtanding LlDbges at might be for trade and investment. the lIcrasehold Lenl ENVIRONMENT AND DEVELOPMENT SERIES Drawing upon recent analytical Healthy work prepared inside and October 2007.160 pages. Stock no. C17225 (ISBN: 978-0-8213-7225-8). US$20.00 Development outside the World Bank, this The Wodtl BanIl Strategy report identifies key lessons concerning the for Health, N1driticm, ad linkages between poverty and the envirorunent. The International PopalatioD Resalts With a focus on the contribution of envirorunental resources to household welfare, Migration of Women The World Bank's new the analysis increases our understanding of how Edited by Maurice Schiff, Andrew health, nutrition, and specific reforms and interventions can have an R. Morrison, and Mi~a Sjoblom population strategy aims to help developing impact on the health and livelihoods of poor This volume provides eight countries strengthen their health systems and people. new studies focusing on improve the health and well-being of millions the nexus between gender, ENVIRONMENT AND DEVELOPMENT SERIES of the world's poorest people, boost economic international migration, and economic growth, reduce poverty caused by catastrophic November 2007.96 pages. Stock no. C17223 development. illness, and provide the structural 'glue' that OSBN: 978-0-8213-7223-4). US$18.OO A copublication with Palgrave Macmillan UK· supports multiple health-related programs within countries. This book will be a useful TRADE AND DEVELOPMENT SERIES resource for policy makers and others working Strategic November 2007. 236 pages. Stock no. C17227 in these areas in the international arena. Environmental OSBN: 978-0-8213-7227-2). US$35.OO August 2007. 244 pages. Stock no. C17193 Assessment for · Customers in Western Europe and Japan please order from Pa/grave Macmillan by visiting their (ISBN: 978-0-8213-7193-0). US$25.OO Policies web site at www.palgrave.com. In lDstrament for Good Maldng the Most Covenwu:e of Scarcity Unleashing India's Edited by Kulsum Ahmed and Emesto kcolllltaldllty for Better Sanchez-Triana lDnovation Water JIIUilpmmt in ..... SustaiDaIIIe iIIUI Envirorunentally and socially sustainable the MWdle Eat a4 policies are essential for good governance. Indasift GIOWth North Afr.Ica Strategic Environmental Assessment (SEA) Edited by Mark Dutz is the key tool for integrating envirorunental Making the Most ofScarcity Unleashing India's Innovation: considerations into policies, programs and will be of interest to readers working in the Toward Sustainable and Inclusive Growth plans. This book focuses on SEA applied to areas of agribusiness and markets, agriculture, provides national and local policy makers, policies. Through lessons learned from previous urban and rural development, water supply, and private sector enterprises, academic and research use of SEA on policies, it draws lessons on water resources, as well as those responsible for institutions, internationalorganizations, and civil the strengths and weaknesses of current SEA setting policies in the areas of environment, society with a better understanding of the power methodology. It then goes on to analyze how economics, and social protection. of innovation to fueleconomic growth and policies are formulated and implemented and poverty reduction. ORIENTATIONS IN DEVELOPMENT proposes a new conceptual framework for March 2007. pages. Stock no. C16925 conducting SEA of policies thatpotentially October 2007.224 pages. Stock no. C17197 (ISBN: 978-0-8213-6925-8). US$29.95 could be more useful in influencing decision (ISBN: 978-0-8213-7197-8). US$25.00 makers to integrate environmental sustainability considerations into policy formulation and implementation. ENVIRONMENT AND DEVELOPMENT SERIES April 2008. 236 pages. Stock no. C16762 (ISBN: 978-0-8213-6762-9). US$18.00 177 Perspectives on Development Fall 2008 v. The Wor d Bank Publ" cations I COVERNANCE Governance Reform Budgeting and BrealdDg the REfORM BRIDCI:«;M(»:rTOIUN<: BddgiJlg, MoDitoring, Budgetary Barriers to Higher ",o;o llCl1(lN and. AdioD IDstitatiODS Economic Growth By Brian Levy Edited by AIlwar Shah BItter Comuace ad Governance Reform: Bridging, Budgeting and budgetary Deeper Reforms ia tile IIiMe Monitoring, and Action lays institutions playa critical East ad lfortJa JIfrIca out a broad framework for role in resource allocation, By Mustapha Kamel Nabli analyzing and monitoring governance in government accountability, and improved developing countries. It identifies fourteen core fiscal and social outcomes. This volume distills This title provides a comprehensive reform indicators for governance monitoring- both lessons from practices in designing better fiscal agenda to break the barriers to higher economic broad measures of overall patterns and specific institutions, citizen friendly budgets, and open growth, to ensure sufficient jobs can be created 'actionable' measures that can be used to guide and transparent processes of budget preparation for the regions rapidly growing labor force reforms and track progress. and execution. It also highlights newerconcepts February 2008. 476 pages. Stock no. C17415 February 2007. pages. Stock no. C17032 of performance budgeting, accrual accounting, (ISBN: 978-0-8213-7415-3). US$38.00 (ISBN: 978-0-8213-7032-2). US$25.00 activity based costing, and the use of information and communication technology in budgeting. PUBUC SECTOR GOVERNAIa AND ACCOlIfTABlITY SERIES Land in Transition: Local Budgeting May 2007. 584 pages. Stock no. C16939 Reform and Poverty Edited by Anwar Shah (ISBN: 978-0-8213-6939-5). US$35.00 in Rural Vietnam This book provides a By Martin Ravallion and comprehensive treatment of Dominique Van De Walle all aspects of local budgeting Crowing Industrial This book is a case study of needed to develop sound fiscal Clustus in Asia Vietnam's efforts to fight administration such as setting poverty using market-oriented land reforms. priorities, planning, financial Sereadipity uul Scioce Land in Transition investigates the impacts on control over inputs, management ofoperations Edited by Shahid Yusuf, Kaoru living standards of the two stages of land law and accountability to citizens. Nabeshima, and Shoichi reform: in 1988, when land was allocated to PWLIC SECTOR GOVERNANCE AND ACCOlIfTABIUTY SERIES Yamashita households administratively and output markets May 2007. 408 pages. Stock no. C16945 This title offers practical were liberalized; and in 1993, when official land (ISBN: 978-0-8213-6945-6). US$35.00 guidance on the nature of clusters and the titles were introduced and land transactions were likely efficacy of measures that could help permitted for the first time since communist build a cluster. It draws on the experience of rule began. The book delineates lessons from Local PohIic both established dynamic clusters and newly emerging ones that show considerable promise. Vietnam's experience and their implications for current policy debates in China and elsewhere. Financial DIRECTlONS IN DEVELOPMENT April 2008. 216 pages. Stock no. 17274 Management March 2008. 304 pages. Stock no. C17213 (ISBN: 978-0-8213-7274-6). US$30 Edited by Anwar Shah (ISBN: 978-0-8213-7213-5). US$30.00 Local Public Financial In A&ican Management attempts to provide practical guidance to Mining Royalties Exploration of the local governments interested in establishing I GloHl Study of their East Asian sound financial management systems. Impact OD IJnoeston, Connunent, ad tiYil Education PtIIUC SECTOR GOVERNANCE AND ACCOlIfTABIUTY SERIES Society Experience June 2007. 288 pages. Stock no. C16937 By James Otto, Craig B. Andrews, Edited by Jee-Peng Tan and (ISBN: 978-0-8213-6937-1). US$35.00 Birger Fredriksen Fred Cawood, Michael Doggett, Pietro Guj, Frank Stermole, John This book aims to promote a better Participatory Stermole, and John Tilton understanding of the education policy choices and implementation modalities that have Budgeting This book contains a wealth of information and enabled many East Asian countries over the analysisrelating to mineral royalties. Primary Edited by Anwar Shah last 30-40 years to move from education and information includes royalty legislation from This book presents an over forty nations. AnalysiS iscomprehensive economic conditions similar to those of many authoritative guide to the and addresses issues of importance to Sub-Saharan Mrica countries to attain the level principles and practice of diversestakeholders including government of development they enjoy today. participatory budgeting, policymakers, taxadministrators, society, May 2008. 625 pages. Stock no. C17371 providing a careful analysis of the potentials local communities and miningcompanies. (ISBN: 978-0-8213-7371-2). US$60 of participatory budgeting in strengthening Extensive footnotes and citations provide a inclusive and accountable governance as well as valuable resource for researchers. risks associated with interest group capture of participatory processes. DIRECTIONS IN DEVROPMENT August 2006. 320 pages. Stock no. C16502 PUBUC SECTOR GOVERNANCE AND ACCOUNTABIUTY SERIES (ISBN: 978-0-8213-6502-1). US$4O.00 March 2007. 296 pages. Stock no. C16923 (ISBN: 978-0-8213-6923-4). US$35.00 178 p..""d I Perspectives on Development Fall 2008 MOFI MORINGA OLEIFERA FARMS AND INDUSTRIES LIM IT ED to advertisers AfriCormect 156 www.africonnect.com Agricultural Research Council 2-3 www.arc.agric.za Arrnajaro 155 www.arrnajaro.com Asian Institute of Technology 63 www.ait.ac.th CBP Carbon 14 www.cbpcarbon.com Celsiuspro 131 wwwcelsiuspro.com Concern 6 www.concern.net Echos Communication 119 www.echoscommunication.org Eli Lilly and Company 83 www.lillymdr-tb.com Foundation for Healthy Environment and 30 www.fhehd.org Human Development Ghana Cocoa Board IFC www.cocobod.gh Green Gas International 107 www.greengas.net Guaranty Trust Bank 45 www.gtbplc.com HVA International 34 www.hvainternational.nl Integrated Research and Action for Development 67 www.irade.org Jimat Development Consultants 182-183 www.jimatconsult.co.zw Jordan Enterprise Development Corporation 11 wwwjedco.gov.jo Kantor 24 wwwkantor.gr Malaria Vaccine Initiative 57 www.malariavaccine .org Mancosa 96 www.mba.co.za Manobi Development Foundation 132 www.manobidevelopmentfoundation.org Moringa Industries 179 wwwmoringaindustries.com National Bank for Agriculture and Rural Development 29 & 110 www.nabard.org National Iranian Gas 86-87 www.nigrc.ir NEC Consultants 68 www.nec.com.pk Nitol Solar 33 www.nitolsolar.com Nokia Siemens Networks 23 www.unite.nokiasiemensnetworks.com Optimal Technologies International 39 www.otii.com Pestalozzi International Village Trust 77 www.pestalozzi.org.uk Dr. Prem Nath Agricultural Science Foundation 71 www.pnasLorg Repsol 21 www.repsol.com Rio Tinto 12-13 wwwriotinto.com Reseau des Operateurs Economiques du Secteur 52-53 www.roesao.org agroalimentaire de l'Afrique de l'Ouest Serum Institute India 4 www.seruminstitute.com Siemens 17 www.siemens.com Solarstrom and Meteocontrol 95 & 127 wwwsolarstromag.de The African Union 151 wwwafrica-union.org 181 Perspectives on Development Fall 2008 p...-d = ~D~&v DEVELOPMENT CONSULTANTS The JOe Regional office located in Lilongwe, Malawi helps directly cater to the growing and expanding demands for technical assistance servi- ces of major donor-funded projects in the East Africa Region. 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