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PublicationWorld Bank Annual Report 2023: A New Era in Development(Washington, DC: World Bank, 2023-09-28) World BankThis annual report, which covers the period from July 1, 2022, to June 30, 2023, has been prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)—collectively known as the World Bank—in accordance with the respective bylaws of the two institutions. Ajay Banga, President of the World Bank Group and Chairman of the Board of Executive Directors, has submitted this report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors. PublicationUnlocking Blue Carbon Development: Investment Readiness Framework for Governments(Washington, DC: World Bank, 2023-09-11) World BankThe purpose of this paper is to provide a practical framework to guide governments in catalyzing and scaling up public and private investment in Blue Carbon as part of their blue economy development. It does this by describing in detail a Blue Carbon Readiness Framework, a step-by-step, well-illustrated guide with simple checklists. Client countries can use the illustrations and checklists to determine their readiness to catalyze and scale up investment in blue carbon credit finance. The Blue Carbon Readiness Framework consists of three pillars: 1. Data and Analytics; 2. Policy and Institutions; 3. Finance. PublicationOpportunities for All: Brazil Policy Notes 2022(Washington, DC, 2022-12) World BankThis package of Public Policy Notes is directed to Brazilian policy makers and society to present the World Bank Group’s overview of key challenges facing the country at this juncture, and possible ways forward to address them. We present an agenda prioritized around four issues of core relevance to Brazil’s recovery and its future resilience. First is the goal of financing development sustainably given the immediate challenge of situating the country’s enormous growth, inclusion and climate action needs within a credible macroeconomic framework and efficient and effective fiscal policies. The second theme addressed in this note is building opportunities through productivity-led growth. With the growing reliance of Brazilians on social assistance policies, it is critical to keep sight of growth and jobs as the most important vehicles for the dignity and upward mobility of the poor. Third is increasing the capabilities and economic inclusion of the poor so that they are better able to capture the opportunities that come with growth. Thefourth theme we address in this note is meeting Brazil’s potential as a as a leader in green and climate friendly development. This document is accompanied by a package of six policy presentations and an underlying set of more detailed policy reports that can be accesses here: https://www.worldbank.org/en/country/brazil. PublicationNew Approaches to Closing the Fiscal Gap(Washington, DC : World Bank, 2022-10-04) World BankAs the COVID‐19 crisis recedes, Latin America and the Caribbean (LAC) is back to work and looking forward. Reported deaths related to the pandemic are low and have plausibly converged to global levels. Yet low vaccination rates in some countries leave them vulnerable to new variants. In most countries, gross domestic product (GDP) and employment have fully recovered their 2019 levels, although forecasted growth rates might be said to be “resiliently mediocre”: banking systems appear sound, and rising debt burdens are manageable so far, but growth is not expected to exceed the low levels of the 2010 decade. Poverty in terms of income (monetary poverty) has largely receded with the economic recovery, but the longer‐term scars of the pandemic in terms of education and health have planted deep seeds of future inequality. Redressing these problems and undertaking the structural reforms needed to reach higher levels of growth and reduce poverty remain central on the policy agenda. The new and unwelcome entrant in the policy space is inflation. While comparable to advanced country levels and well managed by regional monetary authorities, inflation nonetheless is being propelled by forces that may give it more staying power than originally hoped. Finally, public deficits induced by the pandemic and the need to finance critical government programs and directions have opened a fiscal gap and led to constrained fiscal space. The need to close the fiscal gap, put debt on a sustainable footing, and generate fiscal space to finance necessary physical and social investments has led to a search for new revenues and in particular to pressure to increase income taxes. In looking at any tax hike, concerns center on the possible depressive effects on growth, overall progressivity, and possible incentives for informality. This report presents new evidence on these effects for value added taxes (VAT) and income taxes. It also advocates for steps to cut wasteful government spending and increase government efficiency - both to generate substantial resources and as an entry point to a broader agenda of state modernization and generating public trust. PublicationWorld Development Report 2022: Finance for an Equitable Recovery(Washington, DC: World Bank, 2022-02-15) World BankWorld Development Report 2022: Finance for an Equitable Recovery examines the central role of finance in the economic recovery from COVID-19. Based on an in-depth look at the consequences of the crisis most likely to affect low- and middle-income economies, it advocates a set of policies and measures to mitigate the interconnected economic risks stemming from the pandemic—risks that may become more acute as stimulus measures are withdrawn at both the domestic and global levels. Those policies include the efficient and transparent management of nonperforming loans to mitigate threats to financial stability, insolvency reforms to allow for the orderly reduction of unsustainable debts, innovations in risk management and lending models to ensure continued access to credit for households and businesses, and improvements in sovereign debt management to preserve the ability of governments to support an equitable recovery. PublicationThe World Bank Annual Report 2022: Helping Countries Adapt to a Changing World(Washington, DC : World Bank, 2022) World BankThe Annual Report is prepared by the Executive Directors of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)--collectively known as the World Bank--in accordance with the by-laws of the two institutions. The President of the IBRD and IDA and the Chairman of the Board of Executive Directors submit the Report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors. PublicationThe World Bank Annual Report 2021: From Crisis to Green, Resilient, and Inclusive Recovery(Washington, DC: World Bank, 2021-10-01) World BankThe Annual Report is prepared by the Executive Directors of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)--collectively known as the World Bank--in accordance with the by-laws of the two institutions. The President of the IBRD and IDA and the Chairman of the Board of Executive Directors submits the Report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors. PublicationMIGA Annual Report 2021(Washington, DC: Multilateral Investment Guarantee Agency, 2021-10-01) Multilateral Investment Guarantee AgencyIn FY21, MIGA issued 5.2 billion US Dollars in new guarantees across 40 projects. These projects are expected to provide 784,000 people with new or improved electricity service, create over 14,000 jobs, generate over 362 million US Dollars in taxes for the host countries, and enable about 1.3 billion US Dollars in loans to businesses—critical as countries around the world work to keep their economies afloat. Of the 40 projects supported during FY21, 85 percent addressed at least one of the strategic priority areas, namely, IDA-eligible countries (lower-income), fragile and conflict affected situations (FCS), and climate finance. As of June 2021, MIGA has also issued 5.6 billion US Dollars of guarantees through our COVID-19 Response Program and anticipate an expansion to 10–12 billion US Dollars over the coming years, a testament to the countercyclical role that MIGA can play in mobilizing private investment in the face of the pandemic. A member of the World Bank Group, MIGA is committed to strong development impact and promoting projects that are economically, environmentally, and socially sustainable. MIGA helps investors mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance, as well as offering credit enhancement on sovereign obligations. PublicationNature-Related Financial Risks in Brazil(World Bank, Washington, DC, 2021-08) Calice, Pietro; Diaz Kalan, Federico; Miguel, FarukBiodiversity loss and associated economic costs are increasingly recognized as a source of financial risks. This paper explores how and to what extent Brazilian banks are exposed to the loss of biodiversity through their lending to non-financial corporates. The results suggest that such exposures are material. Forty-six percent of Brazilian banks’ non-financial corporate loan portfolio is concentrated in sectors highly or very highly dependent on one or more ecosystem services. Output losses associated with the collapse in ecosystem services could translate into a cumulative long-term increase in corporate nonperforming loans of 9 percentage points. Moreover, 15 percent of Brazilian banks’ corporate loan portfolio is to firms potentially operating in protected areas, which could increase to 25 percent should conservation gaps close, and 38 percent should all priority areas become protected. Finally, 7 percent of corporate loans are to firms for which environmental controversies have been recorded. While preliminary, the results have important policy implications for both Brazilian banks and Banco Central do Brasil. PublicationFrom Known Unknowns to Black Swans: How to Manage Risk in Latin America and the Caribbean(Washington, DC: World Bank, 2018-10-05) Vegh, Carlos A.; Riera-Crichton, Daniel; Medina, Juan Pablo; Friedheim, Diego; Morano, Luis; Venturi, Lucila; Vuletin, GuillermoAfter a growth recovery, with an expansion of 1.1 percent in 2017, the region has encountered some bumps in the road. The Latin America and the Caribbean (LAC) region is expected to grow at a modest rate of 0.6 percent in 2018 and 1.6 percent in 2019. This slowdown in the region’s recovery is mainly explained by the crisis that started in Argentina in April, the growth slowdown in Brazil, and the continuing economic, social, and humanitarian collapse in Venezuela. Furthermore, net capital inflows to the region have fallen dramatically since early 2018, bringing once again to the fore the risks faced by LAC. In addition, natural disasters such as earthquakes and hurricanes have brought devastation to the region with disturbing frequency. The core of the report analyzes the foundations of risk, develops a theoretical framework to price risk instruments, and reviews how LAC has managed risk in practice. The overall message of the report is that there are different types of risk: (i) those that follow standard probabilistic distributions that can be easily insured by the market; and (ii) those that exhibit fat-tails (i.e., non-negligible probabilities of extreme events) that are much harder to ensure by the market (like earthquakes). Finally, there are “black swans” that, by definition, are unpredictable events that cannot be insured and force countries to rely exclusively on ex-post aid and/or broad preventive measures. In other words, the fatter are the tails of a distribution, the less market insurance is available, and the more countries will have to rely on ex-post aid. Yet progress in managing risk continues to be made (the Catastrophe Bond for earthquakes in the Pacific Alliance, recently sponsored by the World Bank, being an outstanding example). This would have been unthinkable some time ago. New knowledge and insurance schemes, all supported by institutions such as the World Bank, will undoubtedly make LAC a safer region to live and prosper.