Latest news with #WorldBank
Herald Malaysia
10 hours ago
- Business
- Herald Malaysia
World Bank mobilises $80 billion to reconstruct Ukraine
Anna Bjerde, Managing Director of Operations at the World Bank, speaks to Vatican News about the organisation's support for war-torn Ukraine – from financing repairs to energy infrastructure to helping farmers increase their yields. Jul 13, 2025 Anna Bjerde, World Bank Managing Director of Operations, at Vatican News' offices in Rome By Joseph TullochThe Ukraine Recovery Conference, held in Rome on July 10-11, brought together government officials, international organizations, and financial institutions to strategize about ways to support the war-torn country. One of the attendees was Ukrainian President Volodymyr Zelensky, fresh from a visit to Pope Leo XIV at Castel Gandolfo on Wednesday. Another was Anna Bjerde, Managing Director of Operations at the World Bank, who spoke to Vatican News. Q: More than three years have passed since the beginning of the war in Ukraine. What have been the World Bank's main contributions so far to the reconstruction of the country? Anna Bjerde: The World Bank Group, like so many others, has really stepped up to make sure that we could support Ukraine during this very difficult time, providing significant amounts of financing, both our own and also mobilizing resources from Ukraine's main development partners by setting up various platforms and trust funds and ways of channeling funds to Ukraine. Our focus has been threefold. One focus is to help the government provide essential services like paying for teachers, paying for medical support, paying for a social safety net. The second has been to support the quick recovery and repair of infrastructure that's being damaged on an ongoing basis, particularly in areas like energy and housing. And the third area has been to start planning for tomorrow. So that's involved quite a bit of diagnostics and economic modeling to see what might be areas of major growth. In total, we've mobilized about $81 billion for Ukraine, both public and private. Q: Zooming in on four key sectors—energy, trade, industry, and agriculture— what progress have you made so far, and what still needs to be done? Energy is key. In February, we released our fourth damage and needs assessment for Ukraine. That shows that for the coming ten years, based on where we are as of February, Ukraine will need $524 billion for a recovery and reconstruction. Between the fourth damage and needs assessment and the one we did about a year earlier, the damage to the energy sector has gone up by 70%. So what have we focused on? We have focussed on helping Ukraine receive essential equipment for ongoing repair, which they need to do. But we have also, through our private sector arm, the IFC, focussed on helping to put in place renewable energy. So there's been a series of rounds of private projects, particularly on wind, which Ukraine can benefit from. A second area you asked about was trade. Trade has been highly disrupted in Ukraine for a variety of different reasons. Of course, the war in and of itself, but also the various on-and-off blockades of the Black Sea, which have required reinforcement of railways and roads. We have helped both in terms of infrastructure in the railways, and we have also helped simplify the processes for trade, which has increased the outflow of exports from Ukraine and the inflow of direct investment, which has been helpful. And then on the agriculture side, so important for Ukraine. We have directly supported farmers in Ukraine, which has actually helped them increase their production and yield of agricultural product, which is important for exports, for livelihoods, for food security in Ukraine. And the fourth area, industrial activity, has of course been highly affected by the war. We have been mostly focused on supporting energy transport connectivity along with other partners and direct investments in infrastructure. But we have also tried to help on what we call access to finance, business, environment, and de-risking investments so that industry can keep going. We have found the domestic private sector in Ukraine, as well as the state-owned enterprises, to be very resilient during the war. We also have been working a lot to sensitize international companies about the needs in Ukraine and the opportunities, as well as providing support for those companies that are interested in supporting Ukraine through either trade finance, through IFC or the private sector, or looking at various ways of providing blended finance so that we can attract finance and investments. Q: Over the past three years of war in Ukraine, we've seen some stories of incredible resilience. I'm wondering if, through your contacts there, you have any stories like that which you'd like to share? Absolutely. I've travelled to Ukraine quite a few times since the war started, and the resilience you see and the bravery of the people of Ukraine is amazing. Some of my favourite people are the people who work on the railway system, because we all travel by rail, and these people work through the night to make sure we get safely from the border up to Kyiv. They're just amazing people, and they take pride in being able to bring people into Ukraine even at the risk of their own lives. Also, meeting with beneficiaries of our projects, whether it's teachers or healthcare workers or utility workers, or governmental officials working through the night in bomb shelters. I think the sense of identity and the cause of fighting for Ukraine and being able to call Ukraine home has been so important for the Ukrainians. That's what's also inspired our team to keep going there. We have a big team working out of Kyiv, and we will continue to be there for Ukraine.--Vatican News
Business Recorder
18 hours ago
- Business
- Business Recorder
$207.17m Punjab housing programme: WB gives moderately satisfactory rating
ISLAMABAD: The World Bank has rated the implementation progress of the 'Punjab Affordable Housing Program' of around $207.17 million as moderately satisfactory. The project was approved in March 2022 with the development objective to support the government of Punjab in strengthening its housing institutions and systems, and enhancing the quantity and quality of affordable housing supply. The project documents revealed that the project cost has been revised from $200 million to $207.17 million. Program implementation is steadily accelerating, with total disbursements reaching $24.54 million to date Punjab govt moving towards regularizing illegal housing societies Many of the annual targets for the Disbursement Linked Indicators (DLIs) have been met. Notable achievements include the development and operationalisation of the Housing Market Information System, the Project Management Information System, and the Beneficiary Management Information System. Additionally, the Location and Infrastructure Investment Criteria have been established, and the revised Affordable Private Housing Scheme (APHS) Rules and Regulations have been approved. A rapid housing assessment has been conducted as a more in-depth comprehensive housing assessment will be part of the assignment when developing the Punjab Affordable Housing Policy. Beneficiary eligibility criteria to better respond to local market conditions and catering to lower-income households are being developed and are expected to be finalized by end August 2025. Innovative design solutions for core housing prototypes and their costing is underway, to be completed by end-August, official documents noted. Copyright Business Recorder, 2025
Time of India
20 hours ago
- Business
- Time of India
Well, well, well... no surface water, third tender goes dryLudhiana civic body faces challenges in finalising contractor for surface water supply project under world bank and amrut schemes.
Ludhiana: City's plan to replace its groundwater-dependent water supply with treated canal water has hit a snag, as civic officials struggle to finalise a contractor for the pilot phase of the ₹50 crore project backed by the World Bank and AMRUT 2.0 schemes. The Municipal Corporation has now floated tenders for the third time — after unsuccessful bids in April and May — to develop demo zones for the transition, despite construction in progress at a water treatment plant in Bilga village and associated overhead tanks. The demo zones, intended to test the system before citywide rollout, will include 14,000 homes across six localities. These zones are split between the two schemes: Jagat Nagar, Laxmi Nagar, Tarsem Colony, and Silver City under the AMRUT scheme; and Urban Estate Dugri Phases 1 and 2 and Urban Estate Phases 1 and 2 along Chandigarh Road under the World Bank-funded canal water plan. Currently, Ludhiana draws an estimated 450 million litres of water daily from underground sources via tube wells. Officials say the new surface water system will not only provide the city with a more sustainable supply but also ensure uninterrupted access throughout the day. As part of the pilot, water meters may be installed in households, although billing remains undecided. Many residents benefit from exemptions. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Why seniors are rushing to get this Internet box – here's why! Techno Mag Learn More Undo "We want to understand usage patterns first," said an official, "and only later will the state decide if billing is necessary." Municipal commissioner Aaditya Dachalwal said the demo zone will help address unforeseen technical challenges. "We are trying again and again to find a suitable contractor to handle this work," he said. "Hopefully, we will succeed this time." The broader goal, as civic authorities claim, is to modernise water infrastructure, improve delivery, and reduce ecological pressure on groundwater sources. MSID:: 122405570 413 |
The Hindu
20 hours ago
- Business
- The Hindu
What is the state of inequality in India?
The story so far: A recent report by the World Bank has generated significant debate with regard to the true picture of inequality in the Indian economy. The report outlined a number of salutary outcomes; not only had extreme poverty reduced drastically, inequality had reduced too. The Gini coefficient — a measure of inequality that ranges from 0 to 1, with 1 indicating extreme inequality — had fallen from 0.288 in 2011-12 to 0.255 in 2022-23, making India an economy with one of the lowest levels of inequality in the world. What followed? This finding was highlighted by the government as a vindication of its growth policies and economic management. However, as plenty of commentators have pointed out, the facts highlighted by the World Bank do not provide a true picture of inequality in the country. While inequality in consumption may be low — which is in itself a contested fact — income and wealth inequality in India are extremely high and have increased over time, making India one of the most unequal economies in the world. What is consumption inequality? The inequality figures detailed by the World Bank are not of income or wealth, but of consumption. This is problematic for several reasons. First, inequality in consumption will always be lower than inequality in wealth or income. A poorer household will spend a majority of its income on the necessities of life, and will have very little savings. If its income doubles, consumption spending will not double, since the household will now be able to save some amount of its income; its consumption levels will not rise in the same proportion as their incomes. Thus, consumption inequality will always be less than income or wealth inequality. Also Read: Does inequality lead to growth? | Explained Second, there are certain problems with the use of databases for the calculation of inequality. Data on consumption spending comes from the Household Consumption Expenditure Surveys (HCES) of 2011-12 and 2022-23. These surveys may provide accurate information on low levels of expenditure, but are unable to capture extremely high incomes, thus providing an under-estimation of inequality. Furthermore, there have been significant methodological changes between the two surveys that render them incompatible, and do not allow for a comparison of inequality levels over time. This has been pointed out not just by several researchers, but the official release of the HCES for 2022-23 also cautions against simple comparisons. What are the levels of income and wealth inequality? The low Gini mentioned by the World Bank, therefore, relates to consumption inequality, and cannot be compared to levels of income inequality worldwide. What is the true level of income inequality? Calculating the actual level of income and wealth inequality in India is extremely difficult, since official surveys tend to miss out on extremely high levels of income and wealth. However, researchers at the World Inequality Database (WID), led by Thomas Piketty, have analysed several sources of data, including national-level surveys, tax records, and published lists of the extremely rich in India, estimating more accurate indicators of inequality. These estimates provide a more sobering look at the state of inequality in India. The Gini coefficient for pre-tax income for India in 2022-23 is 0.61; out of 218 economies considered in the WID, there are 170 economies with a lower level of inequality, making India one of the most unequal economies in the world. The picture is not much better when considering wealth inequality. India's Gini coefficient for wealth inequality is 0.75, implying that wealth is far more concentrated than income or consumption. Even though wealth Gini is high, other countries have far greater wealth concentrations; there are 67 countries with a lower wealth Gini than India. As shown in the figures in Table 1, the Gini coefficient for income has shown a significant rise, from 0.47 in 2000 to 0.61 in 2023. Wealth inequality has risen in a lower proportion, only because levels of wealth inequality have been so high to begin with. The Gini for wealth inequality rose from 0.7 in 2000 to 0.75 in 2023. Either way, the picture of low and falling inequality as outlined by the World Bank does not characterise the current reality of India. In fact, the use of the Gini understates the sheer concentration of wealth occurring in India today. The Gini coefficient is an aggregate measure, and takes into account the entire range of observations. It does not provide information on the relative share of wealth or income held by a fraction of the population. When considering wealth concentration of the top 1%, India emerges as one of the most unequal economies in the world. According to data from the WID, in 2022-23, the top 1% of adults in India controlled almost 40% of net personal wealth. There are only four economies with a higher level of wealth concentration — Uruguay, Eswatini (Swaziland), Russia and South Africa. Is a reduction in consumption inequality on expected lines? The story over the past few decades is one of rising incomes and inequality, and not a reduction. In fact, a reduction in consumption inequality is not unexpected in such a scenario. As incomes rise, assuming that there is no fall in real incomes of the poor (an outcome which some authors such as Utsa Patnaik assert has actually happened), the consumption of the poor would rise in a greater proportion than middle and upper classes, who would be able to save much more out of their rising incomes. The higher incomes of upper classes would allow for greater levels of saving, which can then be transformed into greater levels of wealth. Consumption inequality can reduce even when income inequality and wealth inequality rise; all these outcomes characterise the Indian economy today. What is of significance is the extreme concentration of incomes and wealth that have accompanied growth in India today, making it one of the most unequal economies in the world, an outcome that has consequences for future growth prospects of the economy. Rahul Menon is Associate Professor in the Jindal School of Government and Public Policy at O.P. Jindal Global University.
Arab News
21 hours ago
- Business
- Arab News
Lebanon bets on Gulf tourists to rescue its collapsing economy
RIYADH: Lebanon's tourism sector is placing its hopes on international and Gulf visitors to help steer the country through a financial crisis that has gripped the nation since 2019. As Beirut's clubs and restaurants increasingly operate in US dollars, the city's tourism and nightlife have emerged as fragile yet essential pillars of the economy, largely propped up by private investment. The ongoing financial collapse — now in its sixth year — has created an $80 billion gap in the banking sector, with debt restructuring stalled amid persistent political gridlock. Since 2019, the Lebanese pound has lost more than 90 percent of its value, while the country's gross domestic product has contracted by nearly 40 percent. The 2024 Hezbollah-Israel conflict further devastated the economy, inflicting widespread damage on tourist regions. In response, the World Bank approved a $250 million loan in June as part of a broader $1 billion recovery program, estimating the total cost of the conflict at $7.2 billion, with reconstruction needs reaching $11 billion. A defiant party amid the ruins In early June, fireworks lit up the sky above Beirut's iconic St. Georges Hotel during a retro-themed event hosted by the Tourism Ministry, reviving memories of Lebanon's golden age in the 1970s — a time when Gulf tourists filled its beaches, mountain resorts, and vibrant nightlife. Today, that nostalgia is being reimagined for a new generation of affluent travelers. With the UAE and Kuwait lifting travel bans — and Saudi Arabia possibly following — high-end venues are pinning their hopes on a luxury tourism resurgence. But renewed tensions in the region have cast a shadow over those ambitions. Lebanon's tourism sector has seen 'some cancellations in hotels, (flight) tickets, and car rentals,' Laura Lahoud, Lebanon's tourism minister, told Arab News in an interview, acknowledging the impact of regional tensions. 'We are surely affected by the current situation in the Middle East, same as all the region. But if Lebanon remains neutral and does not take sides — as the president and prime minister are insisting — we can save the season,' Lahoud added. Her optimism hinges on a fragile ceasefire between Iran and Israel. 'Hopefully, it will go back to normal,' she said, while emphasizing that festivals and events remain untouched, except for the Beiteddine Festival, where 'performers are from the US.' The dollar hustle While Lebanon's currency has collapsed, poverty has tripled, and the banking sector remains frozen, a parallel economy is flourishing in Beirut's upscale neighborhoods like Gemmayzeh and Mar Mikhael. Security is part of the appeal. Army patrols have become more visible in tourist areas, and Hezbollah banners along the airport road have quietly given way to billboards promoting 'A New Era for Lebanon.' But the real driver is privatization. With the state largely incapacitated, private investors — mostly dealing in US dollars — are fueling a boom in luxury tourism, pouring money into beach clubs, rooftop lounges, and curated VIP experiences that operate outside the formal economy. 'The private sector has always been a main driver,' said Lahoud, defending the government's role as a facilitator rather than a funder. 'Our role is to guide, organize, and direct investment into new sectors, new regions, and new ideas.' Yet, some argue this model is unsustainable. 'The dollarized tourism economy has a negative impact on domestic tourism,' warned Jassem Ajaka, an economist and professor at the Lebanese University. 'Prices become high for residents, especially if pricing is applied equally to tourists and locals. This is unsustainable because the dollar is not the country's official currency,' he explained in an interview with Arab News. Geopolitical gambles The stakes could not be higher. Lebanon's agricultural and industrial sectors lie in ruins. Once accounting for 20 percent of GDP, tourism has emerged as the fastest route toward restoring ties with Gulf countries and reviving the economy. President Joseph Aoun has made outreach to the Gulf a top priority, traveling to Saudi Arabia, Qatar, and the UAE to present Lebanon as 'open for business.' Lahoud emphasized that rebuilding tourist confidence in Lebanon 'is the main objective.' She outlined plans to achieve this through comprehensive government reforms, coordinated airport improvements, streamlined visa processes for GCC families, shorter checkpoint delays, and the promotion of year-round tourism across all sectors. 'Before some Gulf countries removed the travel ban, Arab tourists were limited to Egyptians, Iraqis, and Jordanians,' said Jean Abboud, president of the Association of Travel and Tourist Agents in Lebanon. 'Demands from Gulf countries were growing steadily, especially from the Emirates, Kuwait, and Qatar. But due to the current conflict between Iran and Israel, everything has changed,' he told Arab News. The fallout is immediate. 'We, as tour operators nowadays, avoid including the south in our programs due to the unexpected problems,' Abboud added. Lahoud stated that the ministry is collaborating closely with all industry groups to create unique visitor experiences in Lebanon. She added they plan to develop long-term policies and digital tools to support both city and countryside activities, and encourage vital small and medium investments across all regions. Risky bet 'Over the past couple of years, I've noticed a shift toward a younger crowd — but interestingly, they're spending more,' says Marco Khadra, ambassador at Factory People, a Beirut-based group organizing many of the country's major music festivals. 'There's a clear appetite for nightlife, even among younger demographics,' Khadra told Arab News. But security concerns loom large. 'Some people, including international acts, have felt Beirut isn't safe, and that affects bookings and attendance,' Khadra admitted, adding: 'Perception plays a big role in this industry.' For bartenders like Lynn Abi Ghanem, who left Beirut for the Gulf, the sustainability of this boom is questionable. 'Not in the long run,' she said of the shift toward Gulf tourists. 'Tourists come for a short time, but it's the locals who keep bars running all year. Without them, things feel off and won't hold up.' The staffing crisis is another weak link. 'There are a lot of talented workers who aren't paid what they deserve,' Abi Ghanem added. 'If things don't change, many will keep leaving.' A mirage of recovery? Hotels have reported occupancy rates of 80 percent ahead of the summer season, while flights are operating at near capacity with expatriates and Gulf tourists. Yet Lebanon's recovery remains precarious. 'Even though tourism's contribution to the gross domestic product increased after the crisis to about 30 percent, this was due to the economic contraction,' explained Ajaka. 'We cannot say the sector has recovered because recovery depends on political stability and investment inflows.' For now, the party continues, sustained by Gulf investment and the relentless drive of Beirut's nightlife entrepreneurs. But as Ajjaka conceded: 'The biggest enemy of tourism is any security obstacle.' And in a country where crisis is the only constant, the stakes have never been higher.
