World Bank Launches Lighting Initiative For Africa

“The World Bank launched a plan on Wednesday to provide inexpensive, safe and cleaner lighting to 250 million people in sub-Saharan Africa who lack access to electricity. …

The initiative, also being managed by the International Finance Corporation (IFC) … aims to supply cheap lighting to the region's ‘energy poor’. Some of the products to be distributed in the region include small battery- and solar-powered lighting systems that the IFC said would be affordable to the target market. …” [Reuters/Factiva]

AP adds that “Lacking electricity, Africans spend an estimated $17 billion a year on lighting sources such as kerosene lamps that are inefficient, polluting and hazardous. … 

…The IFC/Bank intend to develop market conditions for the supply and distribution of non-fossil fuel lighting products. These products can include fluorescent light bulbs and light-emitting diodes for use in rural and urban areas not connected to an electricity grid. Power would come from the sun, the wind and mechanical devices such as pedals.  

The Bank said there is a potentially huge market for modern lighting products that are safe and reliable, that provide higher-quality light and that are cost competitive with fuel-based lamps. …”  [Associated Press/Factiva]

AFP notes that “…The initiative, which is supported by a number of donors, seeks to attract the international lighting industry, as well as local suppliers and service providers. More than 350 companies have expressed interest in the initiative, according to the Bank.  

The first phase of the program is a competition for the design and delivery of innovative, low-cost, high-quality, non fossil lighting products. Ten to 20 winners will receive grants of up to 200,000 dollars.  

The Bank also plans market research in some countries including Kenya, Ghana, Tanzania, and Zambia to understand consumer demand. It has also launched a website on the program, www.lightingafrica.org” [Agence France Presse/Factiva]

The Star reports that “…Many of the continent’s poorest people are dependent on kerosene lamps or candles, and typically spend at least a 10th of their income on lighting their shacks. …The future, according to the World Bank, is LED (light emitting diodes) lighting. … And these devices could help switch on the lights in Africa in the same way that cell phones have changed the continent. … 

‘We’re working with manufacturers to bring down the costs of LED lighting … and then the real challenge is on marketing and finding the avenues to distribute these products,’ says Vijay Iyer, an energy specialist at the World Bank. …” [The Star (South Africa)/Factiva] 

World Bank Lending To Latin America To Stay Same

“World Bank lending to Latin America in fiscal 2008, which began on July 1, should be roughly the same as in 2007, the Bank's regional head said on Wednesday.  

The development lender committed $8 billion in loans, grants and guarantees to countries in the region in fiscal 2007, including lending by its private-sector units. Of that, $4.35 billion was from the International Bank for Reconstruction and Development (IBRD), which provides assistance to middle income and credit-worthy poorer countries. Some 40 percent of all IBRD lending in 2007 was to Latin America, with Argentina, Colombia, Brazil and Peru the largest borrowers.

‘Roughly, I see us going forward with about the same amount of lending unless there is a crisis, which we hope doesn't happen,’ said Pamela Cox, the World Bank's Vice President for Latin America and the Caribbean. ‘We see demand largely along the same lines,’ she said, adding that spending would probably focus on infrastructure development, social services and public sector management. She said poor infrastructure was an impediment to increased competitiveness in the region, caused mainly by cutbacks in infrastructure investments rather than failed policies. …” [Reuters/Factiva]  

Meanwhile, AFP notes that “Cox, will travel next week to Peru to visit the areas affected by the August 15^th earthquake and to participate in a conference on trade called for by the World Trade Organization (WTO). Cox will visit Peru from September 10 through 14 and will travel to the region of Pisco, the area the most affected by the earthquake which caused more than 500 deaths, left more than 1,000 wounded and affected approximately 200,000 people in the city and the neighboring towns of Ica, Chincha and Canete. …”  [Agence France Presse/Factiva]

EFE adds that “… Cox specified that one of the missions of the World Bank is to help the process of reconstruction of infrastructure damaged by the earthquake in Pisco and the surroundings areas. She added that the financial organization, which already has an expert in Lima to evaluate the necessities on the ground, approved $400,000 in aid for the reconstruction efforts….

Meanwhile, [she] defended globalization as an instrument for alleviating poverty, a topic that will dominate the encounter organized by the World Bank, the Inter-American Development Bank and the WTO this month in the Peruvian capital. ‘Commerce can bring great benefits to everyone’ and globalization can not only lift thousands of people out of poverty, but can also improve their quality of life, she commented. …

The conference in Lima will reunite Latin American finance and commerce ministers, as well as representatives of donor countries, regional institutions and private sector organizations. …” [Agencia EFE/Factiva]

Poor Nations Should Close Ranks To Preserve Thriving Growth: UN

“Developing countries are enjoying their brightest economic spell since the early 1970s, but must join forces to guard against shifts in the global economy and financial turmoil, the UN's trade and development agency said on Wednesday.  

The UN Conference on Trade and Development (UNCTAD)'s annual report warned about the destabilizing effect of speculative financial markets, and called for World Trade Organization-style global arrangement to oversee exchange rates. …

The report said that booming demand and high prices for commodities had helped to stimulate trade and growth in poorer nations, which are the primary suppliers of raw materials, without weighing down overall global growth. …” [Agence France Presse/Factiva]

The Times writes that “…Developing countries were likely to suffer the most if their currencies swung wildly as carry trades unwound, it argued. … 

GDP per head in developing countries grew by almost 30 percent between 2003 and 2007, three times as fast as in advanced nations, in what the report called a ‘golden period’ for the world economy. …  

Several poorer countries have even become net exporters of capital to wealthy nations such as the United States and Britain. The report said that the phenomenon cast doubt over orthodox theories on development.” [The Times (UK)/Factiva]

Reuters notes that “…UNCTAD said that world economic output should rise 3.4 percent in 2007, compared to 4 percent last year, when foreign exchange shifts are factored in. …  

It warned that a possible ‘outright contraction’ in US house prices could crunch consumer demand in the world's largest economy, hurting developing countries where exports to the US have fuelled recent fast growth. … 

UNCTAD urged emerging nations to seek to boost their own demand to avoid big disruptions from weaker exports. It praised China's steps to increase the incomes of low-wage earners, including farmers, as a means to rally domestic consumption. …” [Reuters/Factiva]

Xinhua adds that “…According to the report, China and India will again set the pace for growth in the developing world, with growth rates of 10.5 percent and 8.5 percent in 2007. But the two countries and other emerging economies should continue to take preventive measures, such as increasing domestic demands, in case the US economy slips into a recession, thus affecting their exports, UNCTAD said in the report. …”   [Xinhua (China)/Factiva]

AP reports that “…For the first time since 2001, both the EU, at 2.8 percent, and Japan, 2.3 percent, are predicted to have higher GDP growth than the US. … 

High commodity prices continue to boost growth in developing countries, which accounted for a 37 percent share of global trade last year, the report said. A decade ago their share of trade was 29 percent. Economies in Africa are predicted to grow by 6 percent, Latin America and the Caribbean by 4.7 percent, and ex-Soviet bloc states still outside the European Union by 7 percent. …” [Associated Press/Factiva]

My Vision For The IMF

In an editorial in The Wall Street Journal, former French Finance Minister and candidate for the International Monetary Fund (IMF), Managing Director post Dominique Strauss-Kahn writes “… Regardless of nationality, what truly matters is that whoever is selected to run the IMF should embrace a number of vital changes within the organization. …

More than ever, we need the IMF to help us face the challenges of our times. Our world is very different from what it was when the founding fathers met at Bretton Woods. …However, it seems to me that the fundamental purpose and mission of the IMF remain the same: to enable all countries, whether rich or poor, big or small, to fully embrace the process of globalization and reap the benefits of an open international economic and financial system. Of course, our environment has changed, and the IMF methods and tools should adapt accordingly. …

Recent events have shown furthermore that domestic and international financial stability cannot be taken for granted. …The Fund should stand ready to play its role and bring necessary assistance, if needed, to countries hit by external financial shocks. Its mission remains, as ever, to ensure world financial stability and promote sound domestic policies.  

Finally, poor countries should be encouraged in their endeavors to better integrate in the world economy and must be able to count on the Fund's support. The Fund's role is not to substitute development agencies. But, in light of how important macroeconomic stability is to poverty reduction, there is no doubt in my mind that the IMF should remain active in low-income countries. I discussed this issue in depth with the African governors in Maputo in July and with Latin American governors in August, together with the ways to improve the coordination between the IMF and development agencies, first and foremost the World Bank.  

A key issue in the current debates is that we must find a multilateral approach to our problems. …Another key issue is legitimacy. Let us be clear: The emerging and developing world does not feel sufficient ownership in the Fund. ... This is linked to the so-called ‘quota issue,’ on which some progress has been achieved at the annual meetings in Singapore last September. We should go much further and aim to agree swiftly on significant further increases for those countries whose dynamism and growing role in the world economy is not appropriately reflected in the quota distribution, while ensuring that all categories of countries are given sufficient voice.  

But quota reform may not be enough. I believe the dynamic of decision making has to be changed in order to decisively increase the input of developing and emerging economies. To achieve that, new voting rules may be worth considering. …

Lastly, the IMF needs both a resource-efficient budgetary framework and a more sustainable income model. …As the candidate of reform, I would aim to steer the IMF on a path to confront and surmount its major challenges: adapting the institution to a changing world while reflecting the views and needs of all members. … 

During my recent world tour, I have learned much and I feel confident that, if appointed, I would find the necessary support to implement an ambitious reform program to ensure the enduring relevance of the IMF in a rapidly changing world economy.” [The Wall Street Journal/Factiva]

UN Launches Web Portal To Help Tackle Global Warming

“The UN on Wednesday launched a web portal to spur a market-driven trading service designed to help cut greenhouse gas emissions under the Kyoto Protocol. 

The cost-free CDM Bazaar (ww.cdmbazaar.net) was unveiled by the UN Framework Convention on Climate Change…to encourage an exchange of information among buyers, sellers and service providers involved in the scheme. …

Projects that reduce greenhouse gas emissions in developing countries and contribute to sustainable development can earn certified emission reduction (CER) credits. …CDM Bazaar allows participants to post information, such as potential emission reduction projects looking for financing, CERs available for sale, buyers looking for carbon credits to purchase, services available, carbon market related events, and employment opportunities. …

‘The CDM Bazaar will do just what its name suggests, help buyers and sellers, and all those that serve the market, get down to business,’ [UN Framework Convention on Climate Change's Executive Secretary, Yvo de Boer, said] …” [Agence France Presse and Platts Comodity/Factiva]

Also In This Edition: World Bank Economist Says US Sub prime Crisis Will Be Over In Couple Of Months; Briefly Noted...

World Bank Economist Says US Sub prime Crisis Will Be Over In Couple Of Months. “The US housing finance crisis will be resolved in a couple of months without much impact on the broader US economy, the World Bank's Chief Economist said in an interview published Thursday.  

Francois Bourguignon told the New Delhi-based Mint newspaper that any effect of the sub prime crisis on expansion of the US economy would be offset by faster-than-expected growth seen in the first half of 2007. … The newspaper quoted Bourguignon as saying. ‘As a matter of fact, we are not even modifying our forecasts.’ …” [Associated Press/Factiva]

Briefly Noted… Africa will suffer the most if the world fails to reduce global warming, with parts of the impoverished continent becoming uncultivable or uninhabitable, top British government scientists said on Wednesday in Pretoria. They urged Africa to make climate change a top priority and the international community to do a better job of sharing technology and skills with what they described as a key battleground in the global warming debate. [Reuters/Factiva]

The World Bank has said that an inefficient land administration system is responsible for Zambia's underdevelopment in the land sector, The Post reported Wednesday. In a report on access to land, land tenure and transferability, the Bank said the process of opening up new areas for commercial agricultural investments has been slow largely because of the inefficient and slow execution of land allocation and registration processes. [Xinhua (China)/Factiva]

Ecuador's government plans to secure a $400 million loan from the Inter-American Development Bank to finance part of the $1.5 billion investments needed at the state oil company, Petroecuador, Economy and Finance Minister Fausto Ortiz told Dow Jones said Wednesday. [Dow Jones/Factiva]

Argentinashould either tap its foreign reserves to pay its $6.3 billion debt with the Paris Club or reach an agreement with the International Monetary Fund to restructure it, former French finance minister Dominique Strauss-Kahn said in an interview with the TodoNoticias television channel.[Reuters/Factiva]

Vietnamsaid on Thursday it has raised its economic growth target to between 9.1 percent and 9.2 percent next year from an earlier 8.7 percent, with the aim of boosting incomes and reducing poverty. [Reuters/Factiva]

Foreign companies are considering investments in large industrial and tourist projects valued up to $50 billion over the next few years in Vietnam, Ministry of Planning and Investment head of the Foreign Investment Promotion Department told Dow Jones Newswires in an interview Thursday. [Dow Jones/Factiva]

The Asia-Pacific Economic Cooperation ministerial forum released a joint statement calling on their 21 leaders to back a successful conclusion to the so-called Doha round of World Trade Organization negotiations on trade liberalization.   [Associated Press/Factiva]

As Islamic lenders rapidly expand in developing countries, their potential to profit while helping the poor is huge, bankers said on Wednesday. About 35 percent of the world's 1.2 billion Muslims are poor, creating a large market for micro the bankers told a conference on the role of Islamic finance in development. [Reuters/Factiva]

France said Wednesday it would host a high-level summit in New York later this month to discuss peace and security issues in Africa. The meeting, to be held September 25, will examine how the UN could improve its response to the various political and humanitarian crises roiling the continent, from the Darfur conflict to the violence in Somalia, said France's UN ambassador, Jean-Maurice Ripert. [Dow Jones/Factiva]