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Financial Sector

How young people are rethinking the future of work

Esteve Sala's picture
(Photo: Michael Haws / World Bank)


When we talk about the future of work, it is important to include perspectives, ideas and solutions from young people as they are the driving force that can shape the future.  As we saw at the recent Youth Summit 2017, the younger, digitally-savvy generations —whether they are called Millennials, Gen Y, or Gen Z— shared solutions that helped tackle global challenges.  The two-day event welcomed young people to discuss how to leverage technology and innovation for development impact.  In this post, we interviewed —under a job-creation perspective—finalists of the summit's global competition.

Improving access to finance for SMEs in Tanzania: Learning from Malaysia’s experience

Djauhari Sitorus's picture
Shops lining Petaling Street, Kuala Lumpur. Malaysia’s experience in addressing access to finance for SMEs has been successful, serving as a learning point for countries like Tanzania. Photo: Samuel Goh/World Bank
Tanzania is set towards becoming a middle-income country as the economy grew by an average of 6.5% per year in the past decade. The “Tanzania Development Vision (TDV) 2025” highlighted small and medium-sized enterprises (SME) sector as one important contributor to the country’s long-term development. It is estimated that Tanzania’s SME sector consists of more than 3 million enterprises which contribute to 27% of overall GDP.  Most of them are in the agricultural sector, and more than half are owned by women.  

Tunisia: Looking ahead or back to the future?

Antonius Verheijen's picture

I had the privilege recently to spend an unscheduled hour of discussion with a group of young Tunisians who were visiting our offices. As often, on these occasions it is hard not to get captured by the energy and impatience of the young people in this region. It gives hope that entrepreneurial spirit is really alive and well in a country where reliable private sector services remain otherwise hard to come by, let alone public ones. If one combines the energy of youth with the message in a recent (equally energetic) speech by the Minister of Development to a large group of investors, one gets a sense that Tunisia is, indeed, looking ahead and not to the past.

Yet, as always, reality is far more complex, and often we are confronted with a much gloomier picture of a country that is perceived as, economically, turning inward. This is the case even more so now, as Tunisia is coming under immense pressure to get its public finances in order. This has generated some decisions that go right against the message of openness and dynamism that one gets when meeting with young Tunisians. It all begs the question, for a newcomer like myself, which of the parallel universes is the real one, and, as in a movie, which one ultimately will prevail.

Are public credit guarantees worth the hype?

Sergio Schmukler's picture

Public credit guarantees have become a popular instrument to expand lending to small and medium enterprises (SMEs). More than 30 percent of credit guarantee schemes around the world have some form of state ownership. Public credit guarantee schemes are particularly important in developing countries, where they are the main type of guarantee scheme.

One Planet Summit: Three climate actions for a resilient urban future

Ede Ijjasz-Vasquez's picture
Two years ago, more than 180 countries gathered in Paris to sign a landmark climate agreement to keep global temperature rise well below 2 degrees Celsius.

Tomorrow, on December 12, 2017, exactly two years after the signing of the historic Paris Agreement, the government of France will be hosting the One Planet Summit in Paris to reaffirm the world’s commitment to the fight against climate change.
 


At the summit, mayors from cities around the world, big and small, will take center stage with heads of state, private sector CEOs, philanthropists, and civil society leaders to discuss how to mobilize the financing needed to accelerate climate action and meet the Paris Agreement goals.

Why must we bring city leaders to the table for climate discussions?

India: Digital finance models for lending to small businesses

Mihasonirina Andrianaivo's picture
Economic analysis suggests that the next impetus for growth in India's economy will come from micro, small, medium-size enterprises (MSMEs) and startups.

A slew of programs announced in recent years have fostered a more favorable business environment for financial technology – or fintech – models to emerge in the MSME lending space – in India. 

Are South Asian countries sinking into a debt trap?

Bidisha Das's picture

This blog is part of a series based on International Debt Statistics 2018.

The 2018 edition of International Debt Statistics (IDS 2018) which presents statistics and analysis on financial flows (debt and equity) for 123 low-and middle-income countries has just been released. One of the key observations of IDS 2018 is that net financial flows in 2016 to all developing countries witnessed a more than threefold increase over their 2015 level. This was driven entirely by net debt flows, which increased by $542 billion in 2016. Consequently, total external debt outstanding of all developing countries went up to $6.9 trillion, an increase of 4.1 percent over 2015. Interestingly, South Asia seems to deviate from this norm of IDS 2018.

External debt outstanding of South Asia contracted in 2016

South Asia is the only region that has shown a contraction in the total external debt outstanding in 2016. The total external debt stock of South Asia contracted by almost 2 percent as net debt flows into the region turned negative ($-7.7) for the first time in a decade. More specifically, this is the result of net long-term external debt flows turning negative (-$12.5 billion) implying that principal repayments by South Asia, on long-term external debt far exceeded disbursements.

Pro-market activism: A new role for the state in promoting access to finance

Sergio Schmukler's picture

The debate on whether the state should play an active role in broadening access to finance or not is one that has lingered for decades. A recent book (de la Torre, Gozzi, and Schmukler, 2017) argues that a new a view has gained traction and is worth considering.  

Hot off the press: The Global Financial Development Report 2017/2018: Bankers without Borders

Asli Demirgüç-Kunt's picture

GFDR 2018 cover image The decade before the 2007–09 global financial crisis was characterized by a significant increase in bank globalization, which also coincided with dramatic increases in bank size. International banks became the cornerstone of many financial systems around the world, also in developing countries. Proponents of international banking emphasized the potential gains in terms of much-needed capital, know-how, and technological improvements that foreign banks bring, leading to more competitive and diversified banking systems, improved resource allocation, and greater financial and economic development.

However, the global financial crisis has led to a significant re-evaluation of this conventional wisdom. With the crisis, there was a backlash against globalization in general, and the emphasis shifted to the role international banks can play in shock transmission. Developing countries felt the impact of retrenchment by global banks. Global banks were criticized for taking excessive risks. Financial Stability Board (FSB) and the G20 voiced concerns about how to deal with the resolution of too-big-to-fail banks. As a result, regulations and restrictions got stricter in many countries, particularly in developing countries, further contributing to the retrenchment kicked off by the crisis.

Global Financial Development Report 2017/2018: Bankers without Borders, the fourth in the series, brings to bear new evidence on the debate on the benefits and costs of international banks, particularly for developing countries. It provides figures on recent trends, emerging patterns since the global crisis, and evidence on the economic impact of international banking. The goal is to synthesize evidence and data to contribute to the policy debate on international banking.


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