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Poverty and Distributional Impact of Fiscal Policy in Dominican Republic

(Washington, DC, 2023-11-28) World Bank

This report assesses the impact of fiscal policy, both revenue and expenditure, on inequality and poverty in the Dominican Republic. On the revenue side, the analysis focuses on the personal income tax, the value added tax (tax on the transfer of industrialized goods and services, known as ITBIS in the Dominican Republic for its initials in Spanish) and excise taxes on alcoholic beverages, cigarettes, fuel products and telecommunication services. These taxes combined accounted for 7.8 percent of GDP in 2018, equivalent to 60 percent of total tax revenues. On the expenditure side, the analysis focuses on social protection benefits like direct cash and near-cash transfers (e.g., the school food-program and the school uniforms and supplies program), indirect subsidies (energy, water, and public transport), and in-kind benefits on education and health, which together account for 39.2 percent of total government expenditures and 85.9 percent of social expenditures. The remainder of this report is organized as follows: Section II describes the Dominican Republic’s tax systems and government spending in 2018 and compares them with those of selected Latin American countries. Section III includes a description of the data, methodology and assumptions made in carrying out the analysis in this report. The main results are provided in Section IV, starting with fiscal policy’s net impact on inequality, followed by its impact on poverty incidence. A comparison with other countries is then provided. Section IV also includes a detailed analysis of the distributional impact of taxes, social spending, and subsidies, to demonstrate their impact on the welfare of the poor. The report’s main conclusions are presented in Section V.
Adaptation of the Calculator of Social and Environmental Impacts from Small-Scale Gold Mining in the Amazon: Application in Frontier Regions between Brazil, Colombia and Peru

(Washington, DC: World Bank, 2023-11-09) World Bank

Over the past decade, illegal gold extraction has increased significantly in the Amazon region, partly due to the high international prices of this mineral, the less stringent attitude of some countries in relation to the environment and the pursuit of immediate economic opportunities. Furthermore, this illicit activity is closely intertwined with other illegal practices, such as drug trafficking, human trafficking, and the trafficking of endangered species. This has repercussions not just for the region's ecological wealth, but also for the physical well-being of those safeguarding their lands and the health of communities living in proximity to the extraction zones due to the contamination of their rivers and, consequently, their primary sources of food, such as fish. Despite the international effort to recognize the socio-environmental repercussions of this activity, there are still gaps on this issue, mainly due to the economic losses that this activity represents.
Cierre de Brecha Digital en el Departamento del Amazonas

(Washington, DC: World Bank, 2023-10-16) World Bank

Colombia ocupa la última posición en conexiones a internet por cada 100 habitantes entre los 38 países medidos por la Organización para la Cooperación y el Desarrollo Económicos (OCDE). La brecha de conectividad entre las áreas rurales y las áreas urbanas del país es considerable. El 52,9 % de los hogares en el área urbana y el 12,4 % de los hogares en el área rural tienen acceso a internet fijo. Los menores niveles de hogares con conexión a internet se encuentran en departamentos de las regiones de la Amazonía, la Orinoquía y el Pacífico. De conformidad con el Plan Nacional de Desarrollo 2022-2026 “Colombia Potencia Mundial de la Vida”, el Gobierno de Colombia (GdC) está trabajando en múltiples frentes orientados a cerrar la brecha digital y a conectar el 85 % del país. El estudio para el cierre de la brecha digital en el departamento del Amazonas se basa en las prioridades estratégicas del Plan Nacional de Desarrollo (PND).
World Bank Annual Report 2023: A New Era in Development

(Washington, DC: World Bank, 2023-09-28) World Bank

This 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.
Peru Country Climate and Development Report

(World Bank, Washington, DC, 2022-11) World Bank Group

The Peru Country Climate and Development Report (CCDR) provides analysis and recommendations on integrating the country’s efforts to achieve economic development with the pursuit of emission reduction and climate resilience. The CCDR explores opportunities and trade-offs for aligning Peru’s development path with its recent commitments on climate change. Peru is highly vulnerable to climate change and needs urgent adaptation action. Peru can benefit from decarbonization policies, thanks to its mining, forestry and agriculture, and renewable energy resources. Peru has many opportunities to develop and implement comprehensive climate policies that also increase productivity and reduce poverty. A low-carbon, resilient development for Peru would require substantial institutional reforms, in addition to public and private investments.
Argentina Country Climate and Development Report

(World Bank, Washington, DC, 2022-11) World Bank Group

The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.
The World Bank Annual Report 2022: Helping Countries Adapt to a Changing World

(Washington, DC : World Bank, 2022) World Bank

The 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.
A Roadmap for Climate Action in Latin America and the Caribbean, 2021-2025

(Washington, DC: World Bank, 2022) World Bank Group

In Latin America and the Caribbean (LAC) the rapidly changing climate is increasing the frequency and intensity of extreme weather‑related events. The year 2020 saw the most catastrophic fire season over the Pantanal region and a record number of storms during the Atlantic cyclone season. Eta and Iota, two category 4 hurricanes, affected more than 8 million people in Central America, causing tens of billions of dollars in damage. In Honduras, annual average losses due to climate‑related shocks are estimated at 2.3 percent of gross domestic product (GDP). In rankings of the impacts of extreme weather events from 2000 to 2019, five Caribbean nations figure among the top 20 globally in terms of fatalities per capita, while in terms of economic losses as a share of GDP eight of the top 20 countries are in the Caribbean. Extreme precipitation events, which result in floods and landslides, are projected to intensify in magnitude and frequency due to climate change, with a 1.5°C increase in mean global temperature projected to result in an increase of up to 200 percent in the population affected by floods in Colombia, Brazil, and Argentina; 300 percent in Ecuador; and 400 percent in Peru. Climate shocks reduce the income of the poorest 40 percent by more than double the average of the LAC population and could push an estimated 2.4–5.8 million people in the region into extreme poverty by 2030.
Remarks at the Venice Climate Conference

(World Bank, Washington, DC, 2021-07-11) Malpass, David

World Bank Group President David Malpass spoke about the Coronavirus (COVID-19) pandemic and the devastating economic losses. The World Bank Group is providing maximum support to developing economies to respond to the crisis, and working to help them recover in ways that will be sustainable, greener and more prosperous. The Bank Group financing is aligning with the Paris Agreement goals. The Group will help client countries in their efforts to develop and implement their Nationally Determined Contributions and Long-Term Strategies. The Group is enhancing core analytical products such as the recently launched Country Climate and Development Reports and a facility on climate-informed Public Expenditure Reviews. He expressed the need for diagnostics, and a data-driven approach to help prioritize action. There is also need for a parallel effort to protect our natural capital and biodiversity, so that solutions work for people and the planet. IFC and MIGA that are mobilizing private sector financing and helping companies lower their emissions.
Argentina Valuing Water: Brief for Policy Makers

(World Bank, Washington, DC, 2021-06-23) World Bank

This brief for policy makers is a summary of the main conclusions derived from the “Argentina: Valuing Water” report, a detailed and technical water security diagnostic, and is designed for decision makers beyond the water sector. Its main purpose is to make visible the importance of water, and the cost of existing water security gaps on Argentina’s economy, society and environment. The report further highlights the causes behind those water security gaps and identifies opportunities to close them and make the country more resilient to climate change or to other shocks such as the COVID-19, through a more sustainable, inclusive and efficient water management. The document assesses the water security situation today, evaluating the impacts of these water security gaps in the country’s GDP, and then proposes two future scenarios up to 2030: the first one is a “business as usual” scenario, where there are no changes in the way water is managed today, and where water security gaps perpetuate or amplify due to climate change and growing demands. The second “active scenario” is that one where a series of investments are proposed to close the existing gaps, and where, most importantly, a number of water governance reforms are recommended to complement such investments and to make them more sustainable. These reforms are also necessary to use public funds more efficiently, a priority measure in times of crisis.