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August 23, 1999
World Bank and World Meteorological Organization Cooperate to Predict and Prevent Natural Disasters
Arrangement merges scientific and technical expertise with economic know-how
The World Bank and the World Meteorological Organization (WMO) recently signed a Memorandum of Understanding, agreeing on closer cooperation in areas of common interest, particularly natural disaster prevention and mitigation, climate change, and phenomena such as El Niño.
The Memorandum of Understanding, signed by World Bank Vice President for Environmentally and Socially Sustainable Development Ian Johnson and World Meteorological Organization Secretary-General Prof. G.O.P. Obasi, is designed to improve strategic collaboration between the two institutions.
"The signing of the Memorandum of Understanding," said G.O.P. Obasi, "will further contribute to developing synergies between relevant programs of the Bank and those of the WMO and thus promote the development of the capacity of nations in applying scientific and technical advances to national sustainable development plans. WMO's expertise and global network of national meteorological and hydrological services offers a distinct advantage to key activities of the Bank."
One element of more effective disaster management is the better use of climate information and forecasting. At the core of this strengthened cooperation is the establishment of a WMO-World Bank liaison in Washington. With the technical expertise of the WMO and the global touch of the World Bank, this information can be more effectively and expansively disseminated.
Developing countries are likely to be severely affected by climate change and water constraints, so they will need help in developing the financial, technical, and human capacity to adapt to a changing climate and increasing water scarcity. A pragmatic strategy on vulnerability and adaptation concerns will be developed and implemented by the two institutions.
"The promise of this partnership is the opportunity it offers to match the WMO's scientific and technical expertise with the Bank's economic know-how," said Ian Johnson. "Meteorology is central to everything from agricultural production to mitigating the effects of climate-related natural disasters."
Over the last ten years, the World Bank has provided almost US$9 billion in emergency loans to help countries recover from the impacts of natural disasters. Recognizing the link between climate phenomena and development, the international development community is starting to increase its capacity to assist client countries in devising and implementing suitable climate adaptation and disaster mitigation measures in the context of sustainable development.
Click here to find out more about the Bank's work on the environment. For more on the World Meteorlogical Organization, visit http://www.wmo.ch/.
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August 24, 1999
World Bank Consults Development Partners on
AIDS Vaccine
Solution sought for low-income countries
Senior policymakers, donors, and non-governmental organizations met in New Delhi from Aug.18-19, 1999, to discuss how the World Bank can speed up development of an AIDS vaccine that will be effective and affordable in developing countries.
"India needs to have a national strategic plan for the comprehensive development of an HIV/AIDS vaccine in India through indigenous efforts," says J.V.R. Prasada Rao, Additional Secretary, Indian Ministry of Health, and Chairman of National AIDS Control Organization.
"The best hope of bringing HIV under control is by changing the behaviors that facilitate its spread. In addition, developing countries urgently need an AIDS vaccine to add to their prevention efforts," says World Bank Principal Health Specialist Peter Heywood, posted in New Delhi.
The meeting—the third of a series of consultations in developing countries—was sponsored by the World Bank's AIDS Vaccine Task Force. The objective of the meeting was to seek the advice and views of its development partners on the effectiveness, feasibility, and appropriateness of the different mechanisms that the World Bank could support to accelerate the AIDS vaccine.
"The knowledge and technology for an AIDS vaccine that can be effective and affordable in developing countries is an international public good. Without international collective action, an AIDS vaccine will take a very long time to develop and may be of limited use to the countries in greatest need," says Martha Ainsworth, senior economist and co-chair of the task force.
Participants at the meetings called on the World Bank to continue efforts to stimulate the development and financing of an AIDS vaccine for low-income countries. Achieving these goals will require a combined effort of all the partners including governments, national and international scientists, UNAIDS, WHO, International AIDS Vaccine Initiative (IAVI), bilaterals, industries, NGOs, and the World Bank.
"Scientists believe that a vaccine is feasible but it will take years to develop. Public/Private partnerships are essential to ensure the development of an affordable vaccine in the shortest possible time," says Amie Batson, World Bank health specialist and task force co-chair. The participants stressed the importance of involving Indian manufacturers more actively in product development.
The AIDS epidemic is having a profound effect on economic and social development, erasing decades of progress in improving the quality of life in developing countries. More than 33 million men, women, and children worldwide are infected with HIV or are suffering from AIDS. More than 90 percent of infections are in developing countries. Life expectancy in the hardest hit countries has declined by 10-20 years, wiping out decades of hard-won gains in health improvement. The vast majority of those infected are adults in their prime earning years. Every day, 16,000 more people are infected. The National AIDS Control Organization estimates that 4 million people are living with AIDS in India. Currently there is neither a cure for AIDS nor a preventive vaccine.
But global spending on research and development for an AIDS vaccine is minimal—estimates range from US$300-$600 million— and virtually all is being spent on vaccines for the HIV strains, health delivery systems, and economic conditions of industrialized countries. While the basic science for a vaccine already benefits from large public subsidies, the testing and development of vaccine products is generally done by the private sector. However, the private sector may not have sufficient incentives to develop an AIDS vaccine that is effective and affordable in poor countries.
The recent two-day meetings follow the April consultative meeting in Paris attended by G7 representatives, bilateral donors, international organizations, and representatives of developing countries. That meeting strongly supported upstream consultations with developing countries about how the Bank could encourage greater private investment in an AIDS vaccine, and how such efforts could fit in with those of other international partners. This was followed by consultative meetings in Thailand and South Africa.
With its mandate to promote economic growth and reduce poverty, the World Bank has a vital interest in preventing the spread of HIV/AIDS and reducing its impact. Since 1986, it has lent nearly US$1 billion for 81 HIV/AIDS projects in 51 countries. The World Bank will continue to invest in preventing HIV and in strengthening health systems to provide better preventive and curative care, and to bring AIDS into the policy dialogue with partner government and organizations.
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World Bank AIDS Vaccine Task Force
In April 1998, the World Bank launched an AIDS Vaccine Task Force to consider how it could speed up development of an AIDS vaccine that is effective and affordable in developing countries. In addition to supporting high-level dialogue with policymakers and industry in these countries, the Task Force is considering two other major routes for promoting more rapid development of an AIDS vaccine. The first aims to "push" private research and development (R&D) by subsidizing vaccine trials or reducing the risks involved in vaccine development in the short run. The World Bank has been a major contributor to the International AIDS Vaccine Initiative, which directly subsidizes R&D for AIDS for developing countries.
The second track aims to "pull" greater R&D investment by demonstrating or assuring a future market for an AIDS vaccine in developing countries. Here, the Task Force is considering expanded lending for existing and new vaccines, like hepatitis B. Other possibilities include an AIDS vaccine purchase fund for the poorest countries, to be activated when a low-cost, effective vaccine is available, and "contingent" loans for purchase of an AIDS vaccine. The loans would be signed now, but the money would not be transferred until a suitable vaccine became available. Further, the Task Force is also sponsoring studies of the potential demand for a vaccine in developing countries. More than likely, a combination of these mechanisms will be necessary to accelerate vaccine development. |
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For more on the World Bank´s work with AIDS, visit http://www.worldbank.org/aids/.
See also the International AIDS Economics Network (IAEN) at http://www.iaen.org/.
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August 25, 1999
Basic Services Help Create New Jobs in Peru
New report says social development uneven despite growth
Utilities in Peru not only help with basic household needs, but together they can also reduce poverty, according to a new World Bank report.
The causes of poverty and what factors help some families move forward and others not is the focus of Poverty and Social Developments in Peru: 1994 to 1997. The report draws its findings from household surveys and other country-based research.
"Running water, electricity and sanitation services in combination not only support basic household needs but help the family in ways that aren't immediately apparent," says Jesko Hentschel, a senior economist with the World Bank's Poverty Group, who led the study.
Access to clean running water can save women and children from hours of trekking to far-away wells. This frees up their time for use in more productive ways, such as working or going to school. More significantly, explains Hentschel, when reliable, quality sanitation services are provided, the risk of child malnutrition and illness is significantly reduced. With fewer illnesses consuming the family's time and money, more of it
can be used to meet other needs, such as food, clothing or school fees.
With power and telephone lines, households thrive even more. There are many reasons for this, says the report, "including the positive effect of electricity and phone connections on home enterprises." Families receiving these services can more efficiently run small businesses out of their homes, and join the informal sector.
As it turns out, the informal sector provided the bulk of the 1.3 million jobs created in Peru over the three-year period of the study. These jobs helped reduce poverty: In cities and rural areas alike, those who worked out of their homes to earn more money were one-third less likely to be poor than those employed in the formal sector.
"The informal sector is not a poverty trap as people tend to think," says Hentschel, who believes that because of its more dynamic and flexible nature, the informal sector allows people to start small businesses at home—sewing garments or selling merchandise—far more easily than the formal sector. If successful, these microenterprises become the more formal small businesses of tomorrow.
The report also shows that social developments in Peru have been uneven. Having recovered from a disastrous economic crisis at the end of the 1980s, Peru has enjoyed stable growth since 1990. Looking at the whole of the country, more children are in school and are learning to read, and child malnutrition is down (though it is still very high at a rate of 25 percent for children five years old and younger).
However, economic growth has not spread equally nor has it benefited everybody. For example, the malnutrition rate is almost three times higher in rural than in urban areas. Inequality between indigenous and non-indigenous people grew, with the former falling further behind and sharing less in the benefits of growth.
And rural areas missed out: Eighty percent of families that were better-off in 1997 lived in Lima and other urban areas that attracted more education, health and infrastructure investments.
Editors' note: To order a copy of Poverty and Social Developments in Peru: 1994 to 1997, visit the publications page at http://www-ext/pubs/search/index.htm.
Also out this month: Peru: Improving Health Care for the Poor, on the web at http://www.worldbank.org/html/extpb/abshtml/14493.htm.
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August 26, 1999
Boosting Production in Vietnam's ‘Rice Bowl'
Bank signs two credits for $181 million
Vietnam's Mekong Delta accounts for nearly 30 percent of the country's national gross domestic product, 40 percent of the country's overall agricultural production, and more than 80 percent of the country's rice export.
Earlier this month, the critical delta region won support in the form of a US$101.8 million investment credit signed by Vietnam and the World Bank that will help increase agricultural productivity in the delta area known as the country's "rice bowl." The credit was signed the same day as a US$80.5 million credit to be used for improving public health and promoting economic development in three urban areas in Vietnam.
"These two projects are part of our ongoing efforts to help Vietnam promote growth, reduce poverty and help the environment," said Andrew Steer, Director of the World Bank in Vietnam. "The Mekong project will benefit 610,000 people, create 80,000 extra person-years of employment each year, add 500,000 tons to rice production, and bring clean water to 280,000 people."
The Mekong Delta project aims to increase agricultural production, reduce rural poverty, improve living conditions in the project area and facilitate sustainable water resources management in the delta with active participation of communities in water delivery service. The project will help address two major issues in the water sector in Mekong Delta: (a) the need for Integrated Water Resources Management; and (b) an Institutional Framework for Delta-wide Water Management.
The sanitation project, meanwhile, will raise health and productivity levels in Danang, Hai Phong, and Quang Ninh, through improved drainage, sewerage and solid waste management. It will also contain an innovative approach to providing families and groups with access to funds through the Vietnam Women's Union, enabling them to invest in septic tanks and other sanitary improvements.
Helpful links: For more on the project, see the press release.
To learn more about the World Bank's work in Vietnam, visit http://www.worldbank.org/html/extdr/offrep/eap/vn.htm.
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To Uproot Corruption in Indonesia—Bank Vice President Severino comments in International Herald Tribune
August 27, 1999
Y2K Group Releases Country Readiness Survey
National Y2K coordinators report from 72 nations
The International Y2K Cooperation Center (IY2KCC), a United Nations backed group funded by the World Bank, released its first survey of Y2K readiness in 72 nations on Thursday, as reported by national Y2K coordinators representing each government.
"This is the unfiltered information straight from the people who have been working on the Y2K problem in each nation," Bruce McConnell, director of the Washington-based group, said in a press release. The 72 survey responses are posted on the website of the International Y2K Cooperation Center.
"We encourage the many organizations currently making evaluations of country readiness to use this first-hand information to supplement their opinion surveys. It is imperative that analysts learn from the people actually doing the work before making judgments that have serious consequences. This principle applies equally to private consultants and to national governments that contemplate issuing travel advice to their citizens."
The new IY2KCC report comes seven months after the World Bank reported that many developing countries were unprepared for the risks of the Y2K Bug, warning that a general failure of essential computer systems could endanger the health, security, and economic well-being of people in the developing world. The Bank recommended that governments should use the remaining months of 1999 to make contingency plans to safeguard their most important computer systems from failure.
The IY2KCC surveys were completed in August 1999 by Y2K coordinators appointed by their national governments, according to the center. Y2K coordinators reported the month implementation was expected to be 90 percent completed. Status statements were provided for nine sectors: Energy, Communications, Finance, Transportation (Air, Sea, Land), Health, Government Services and Customs.
In an open letter to Y2K analysts on Thursday, McConnell said, "All third party evaluations should reflect direct consultations with each affected country's Y2K coordinator. These coordinators can be located via the Center's web page."
"We also urge those countries that have not yet made their readiness information public to do so as soon as possible," said McConnell. "Full public disclosure of Y2K preparation activities is essential to maintain public confidence in the international marketplace."
With the release of Thursday's survey, 33 countries have for the first time provided information on the World Wide Web in English. Another 56 countries have shared information with the center but have not yet indicated their preference to share it with the public. Finally, 67 countries have not yet responded to the Center's request for information either via the survey or web site. The survey results will be updated periodically as additional countries respond.
Y2K refers to possible computer and automated control system malfunctions when the year changes from 1999 to 2000. Until recently, many computers and automated systems were programmed to handle only two-digit year formats, and could make mistakes when they encounter "00" in the date field.
The IY2KCC was established in February 1999 under UN auspices with World Bank funding in response to the need to coordinate efforts to update computer and automated control systems around the world to smoothly transition to the year 2000.
Helpful links: To read the IY2KCC's press release on the survey, click here.
To see the 72 survey responses posted on the website of the International Y2K Cooperation Center.
For a recent Development News article reporting on the IY2KCC's finding that 87 countries lacked a Y2K website, click here.
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Let's Improve Assistance to Keep the Wide World on Board—OED chief Picciotto comments in IHT op-ed
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