Syndicate content

Financial Sector

Empowering a New Generation of Female Entrepreneurs in Afghanistan

Mabruk Kabir's picture
Photo Credit: Mabruk Kabir / World Bank

Fatima brimmed with optimism. The 19-year-old recently established a poultry enterprise with the support of a micro-grant, and was thrilled at the prospect of financial independence.

“After my family moved from Pakistan, I had few options for work,” she said from her home in the Paghman district in the outskirts of Kabul. “The grant not only allowed me to start my own poultry business, but let me work from my own home.”

With over half the population under the age of 15, Afghanistan stands on the cusp of a demographic dividend. To reach their full potential, Afghanistan’s youth need to be engaged in meaningful work – enabling young people to support themselves, but also contribute to the prosperity of their families and communities.

Digital Financial Inclusion of the Rural Poor in Bangladesh

Anir Chowdhury's picture

Bangladesh Financial InclusionConsidering Bangladesh’s lack of development and a predominantly rural context, it would have been difficult to imagine even a few years ago that an elderly widow living in a remote corner of this impoverished South Asian country could be receiving money from her son living in Dubai sitting right at home or making petty payments through her mobile phone. Not any more, though.

Bangladesh has recently emerged as a curious case of digital innovation to widen coverage and reach remote pockets. The country reached the lower middle income country status in 2015, and has showcased the potential of combating rural poverty through inclusive digital financial services.

This has proved to be an effective weapon to eliminate poverty and secure the sustainable development goals (SDGs) while the country advances towards Vision 2021 — lifting millions of Bangladeshis out of poverty. Innovation and digitization will surely set Bangladesh firmly on the path to becoming a middle-income country. Although ambitious, it is exactly what both the government and private sector are working towards.

Access to the formal financial system remains a challenge for the rural poor in Bangladesh even though the central bank announced a plan for inclusive digital financial programmes in 2015.
 

Developing venture capital for young startup firms in Morocco

Randa Akeel's picture


Businesses, for many the real drivers of job creation, can also be the foundation of wealth and greater economic inclusion of the general population. Jobs or Privileges, a World Bank Group report published in 2014, shows that high-growth startups—or young firms—accounted for all net job creation in Morocco’s manufacturing sector at the time. But, by comparison with older small or medium–size enterprises, young start-ups faced far greater barriers in Morocco to accessing finance.

What Is Behind Latin America’s Big Efficiency Gap?

Jorge Thompson Araujo's picture
Blog originally published in The World Post

To understand this, we first need to “unpack” the causes of low efficiency.

 
Countries in Latin America and the Caribbean (LAC) could have been twice as rich, had they enjoyed the same level of efficiency in capital and labor use as the United States of America.

Home-grown technology firms help drive eGovernment expansion in East Africa

John Wille's picture



Over the past five years, we have seen the emergence of a number of eGovernment applications and platforms in East Africa, leveraging the growth of internet and smartphone penetration to improve the reach and quality of government service delivery. While a number of these technology solutions, particularly in tax administration, trade facilitation and financial management systems, have been sourced from international providers – based in the United States, India and Singapore – African information and computer technology (ICT) firms have also played a major role in this surge in online service delivery to citizens and businesses.

The use of various “managed service” models, such as eGovernment public-private partnerships (PPPs) and cloud hosting, has allowed even governments with limited in-house ICT capacity to deliver services online in a sustainable manner. The World Bank Group (WBG) has also played an important role in developing the ability of local firms to effectively provide services to government clients by sharing good international practices and by funding the development of these locally grown technology solutions.

Kenya e-Citizen improves revenue generation as it cuts compliance costs for citizens and businesses

This digital services and payment platform – https://www.ecitizen.go.ke/ – was initially piloted in 2014 with seed funding from the Kenya Investment Climate Program of the WBG's Trade & Competitiveness (T&C) Global Practice. The technology platform was developed and is now managed through an outsourcing arrangement by government with a local ICT firm. It has grown organically, expanding from eight government-to-citizen (G2C) and government-to-business (G2B) services to more than 100 today, covering such areas as driver’s licenses, passport and visa applications, company and business name registration, work permit administration and civil registration. Citizens are able to register and obtain login credentials online, through a validation process involving the national ID and SIM card registry databases. They can also pay for services using a variety of methods, including bank transfers, credit cards, MPesa (“mobile wallet”) and other mobile money systems.

Are capital flows fickle? And does the answer still depend on type?

Poonam Gupta's picture

According to conventional wisdom, capital flows are fickle. They are fickle more or less independent of time and place. But different flows exhibit different degrees of volatility: FDI is least volatile, while bank-intermediated flows are most volatile.  Other portfolio capital flows rank in between, and within this intermediate category debt flows are more volatile than equity-based flows. 

De-risking impedes access to finance for non-profit organizations

Emile van der Does de Willebois's picture



If you’ve opened a bank account in the last few years, you likely had to answer a bunch of more or less intrusive questions about yourself, your background and why you wanted to open the account. Annoying, but part and parcel of Anti-Money Laundering/Combating the Financing of Terrorism (“AML/CFT”) rules that all banks, in all parts of the world, are subject to.

The ostensible purpose is to enable banks to prevent bad actors using the financial system to launder their funds and, where bad actors are not identified at entry, to detect any suspicious financial activity and provide appropriate background to competent authorities. (Whether they are successful in this endeavour is another question.)

More recently large international banks have been upping the ante and have started to disengage altogether from clients from certain geographical regions or certain sectors because they consider the AML/CFT risks too great- a development known as “de-risking”. Often the business lines or countries exited are those that aren’t particularly profitable; the argument being that only a substantial profit margin justifies taking a larger than average risk. The amount of due diligence to be conducted on a customer cuts into that profit margin and the higher the perceived risk of that customer, the more the due diligence, the lower the profit.

One of the sectors particularly affected are non-profit organizations (NPOs). This is an unfortunate consequence of the mistaken and remarkably persistent idea that all NPOs pose a high AML/CFT risk. According to a report published earlier this month by the Charity and Security Network, two-thirds of U.S.-based NPOs working abroad are facing problems accessing financial services. Apart from account closures and account refusals, these also include delays in wire transfers and increased fees. 

As a result of these delays, they are sometimes forced to move money through less transparent, traceable, and safe channels. The prevalence and types of problems vary by program area, with NPOs working in peace operations/peacebuilding, public health, development/ poverty reduction, human rights/ democracy building, and humanitarian relief reporting the greatest difficulties. One NPO was prevented from sending immediate relief to the persecuted Rohingya minority in Myanmar in the midst of a dire humanitarian crisis. Timely transmittal of those funds might have saved lives, the charity’s director explained.
 

Is there something wrong with us economists?

Maurizio Bussolo's picture


We economists did not see the 2008 global financial crisis coming.

Nor did we anticipate, predict or, at least, warn people about the current wave of anti-trade, anti-immigration, and populism!?

To be fair, some economists were sounding alarms in the lead-up to the financial crisis. And even with the current backlash, although we may have missed the chance to predict it, many had warned that we were understating the impacts of global trade and that distributional tensions - the result of an unequal impact of globalization, technological change, and aging on certain groups - were mounting.

It seems very important – especially when considering the ongoing fierce rhetoric with which some policy proposals and decisions are described – to remain cool-headed, carefully analyze data, stay engaged and support reforms that are backed by solid evidence.

Keep the passion

Gloria M. Grandolini's picture

Photo © Dominic Chavez/World Bank

After spending 27 years at the World Bank, I retired at the end of January. I ended my career as Senior Director for the Finance and Markets Global Practice. My career at the Bank spanned diverse roles – from country and financial economist to equity portfolio manager in the World Bank treasury, senior advisor in the Italian executive director’s office, manager and then director leading IBRD's financial products innovation work, advisor for the first CFO and then for a managing director, to country director.

In this post, I reflect on my career and argue why it continues to be important for young people to be passionate about international development.

From open data to a collaborative community – looking ahead with TCdata360

Prasanna Lal Das's picture
TCdata360: Your Source for Open Trade and Competitiveness Data


It’s now been about a month since the Trade & Competitiveness Global Practice of the World Bank Group launched TCdata360, our new platform for open trade and competitiveness data from the Bank and external sources. The initial response has been overwhelmingly positive, and it has included a mixture of the anticipated and the unexpected.

Egypt has been the most popular country page during this period, the indicator on the number of days to start a business has been the second most visited page (though it seems to be ceding its spot to the page on venture capital availability) and we have been struck by the number of people that have searched for information on countries that have laws against sexual harassment in the work place (it’s steadily been one of the top 10 most visited pages on the site). Our data stories have attracted attention as well, especially in social media and there has been consistent interest in the API.

The question now is: Where should we take TCdata360 from here? How does a platform grow after the initial excitement around its release has dissipated? How can you or your organization contribute to the growth of the platform?

Here are a few of our ideas at the moment:
 
  • More data – we have a growing inventory of new datasets.
  • Better user experience – we are tweaking several things, while keeping what people like (which is most of the site).
  • More analytics – we have experimented with Datascoper, a tool to uncover hidden patterns in data, but work remains to make these tools more usable and meaningful.
  • Better engagement with our users – we want to show off your work on the site. Tell us about the insightful work you do using our data; we will share it with all our users. And we are all ears about your ideas for other ways to collaborate.
  • Continue contributing to the open data community – we plan to offer data literacy and other support; stay tuned for greater emphasis on applied data; we are working to make this and other data truly useful in an applied sense to governments, the private sector, and others.
  • Better linkages with the open source world – we built the site on open source and want to share our work with the community; we are constantly looking for tools that we can either integrate into the site or that we should be using. Tell us about them.


Help us improve our list – write us at tcdata@worldbank.org or tweet us at #TCdata360.


Pages