A few years ago, this would have seemed a strange question, as debt management and climate policy have traditionally been regarded as unrelated fields. But at a workshop at the annual Debt Management Forum in Vienna on May 22, 2017, debt managers from 50 developing countries discussed the role of emerging debt instruments such as green bonds and blue bonds, in raising capital for climate-friendly projects that range from reforestation to renewable energy.
While green and blue bonds resemble more traditional debt instruments in terms of structure and returns, they represent a novel approach to climate finance. Created just ten years ago, the total value of green bonds has grown at a spectacular pace, reaching US$82.6 billion in 2016. By the end of 2017, the total value of green bonds will likely exceed US$100 billion.
macroeconomics for the poor
In Kenya, and refugee-hosting countries in Africa, the camp-based protection and humanitarian assistance model has been the default response to the often-protracted forced displacement situations. The underlying assumption has been that it would be impossible or undesirable for refugees to be self-sufficient while waiting for peace to return to their countries of origin.
Therefore, it is not a surprise that refugees from South Sudan and other neighboring countries in north-western Kenya are being assisted in the Kakuma Refugee Camp, which has been hosting refugees since early 1990s. Several waves of refugees have come and gone over the past 25 years, the most recent influx from South Sudan having started in December 2013. The camp has grown into four sub-sections with a capacity of 125,000 persons but a current population of over 155,000. Like in the majority of protracted situations, the care and maintenance programs in Kakuma included providing them with access to shelter, food, water, health care and education.
As an economist, I always thought that sustained growth over many years was the key to reduce poverty and promote development. Now I know, that while growth is important, it is a particular type of growth, the one that is inclusive, that is key for sustained development to take place.
As policy makers we are now focusing all our efforts in identifying and promoting policies targeted at boosting the incomes of the bottom 40 percent of the population. We need to ensure that growth provides benefits to those that are in the lowest deciles of the income distribution.