World Bank/IMF Meetings: Moving Forward With A New Approach
World Bank/IMF Meetings 2013
Days before the opening of a week of meetings, World Bank President Jim Yong Kim delivered a speech to an audience at George Washington University outlining the Bank’s strategy toward ending “extreme poverty.”
Today, more than a billion people in the world survive on less than $1.25 per day, a situation which Kim characterized as a “moral” crisis facing the international community. Moving forward he said the World Bank would set priorities, but would also abandon those activities which are not on the list.
The three key points of his strategy are:
Work with the private sector in collaboration, not confrontation, to utilize their resources to combat poverty;
Commit more fully to combating poverty in “fragile and conflict-affected states” by taking more risks and committing more resources;
Take a more “ambitious” approach to global issues, including broadening opportunities for women and responding to climate change.
Managing Risk: One Of The Keys To Global Development
One of the notable takeaways from the World Bank’s World Development Report is the importance of including risk management as a component of global development strategy.
Whether the crisis is man-made, such as the financial crisis, or the litany of natural disasters which impact communities across the globe, the authors contend effective risk management approaches possess the potential to protect the poor, but also to expand the range of opportunities that will allow them to achieve independence and self-reliance.
For example, the report found that farmers in many developing nations who have rainfall insurance have increased their investments in fertilizer, seeds, and other inputs.
“This World Development Report shows human decision-making falters most where risk is involved – for this reason, risk creates special challenges for development policy. As globalized nations contend with fluctuations between good and bad outcomes, there is at times a propensity to shy away from development and globalization, when in fact doing so is to opt for the bad outcome in perpetuity,” says Kaushik Basu, World Bank Chief Economist and Senior Vice President.
Author Suggests Climate Change Debate Is Too Heated Bjorn Lomborg compares the Millennium bug panic – the hype leading up to the turn of the century – with current climate change commentary. From fracking to global warming, Lomborg says environmental analysis is too often dominated by voices of panic and fear.
Believing that too frequently “bad news drive bad decisions,” Lomborg set out to survey 21 of the world’s top economists to examine some of the biggest problems confronting society today, including hunger, global warming and pollution. The result is a new book, How Much have Global Problems Cost the World? A Scorecard from 1900 to 2050.
When you look at these issues properly, the results are surprising. Climate change, for example, has had a net benefit for the world. From 1900 to 2025, it has increased global welfare by up to 1.5 per cent of GDP per year. Why? Because it has mixed effects – and when warming is moderate, the benefits prevail (even if they are unevenly distributed between nations),” he writes in The Daily Telegraph.