Publication:
Address to the National Press Club, Washington, D.C., March 25, 1998

Loading...
Thumbnail Image
Files in English
English PDF (102.43 KB)
177 downloads
English Text (47.41 KB)
29 downloads
Date
1998-03-25
ISSN
Published
1998-03-25
Editor(s)
Abstract
James D. Wolfensohn, President of the World Bank Group discussed the financial crisis in Asia which began with the emergence of the Thailand crisis. The history of Asian economic and social development has been one of enormous achievement. Since 1975 the number of people living in poverty has been reduced from 700 million to 340 million (roughly 20 percent of the population)—no small achievement. Generally, the region has had strong economic growth. Life expectancy has gone up significantly, while infant mortality has gone down significantly. Primary school enrollment approaches 100 percent. Fiscal management has been remarkable. What changed? We have a crisis now caused by private sector excesses, and to a degree government inaction in the area of supervision. The Bank is focusing on two things: reformation of the financial system, in terms of trying to get the regulation and control that is now being demanded by the Asian authorities themselves; and the impact on the people. Wolfensohn fielded a number of questions from the audience.
Link to Data Set
Citation
Wolfensohn, James D.. 1998. Address to the National Press Club, Washington, D.C., March 25, 1998. © World Bank. http://hdl.handle.net/10986/26158 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Financial Globalization and the Russian Crisis of 1998
    (2010-05-01) Pinto, Brian; Ulatov, Sergei
    Russia had more-or-less completed the privatization of its manufacturing and natural resource sectors by the end of 1997. And in February 1998, the annual inflation rate at last dipped into the single digits. Privatization should have helped with stronger micro-foundations for growth. The conquest of inflation should have cemented macroeconomic credibility, lowered real interest rates, and spurred investment. Instead, Russia suffered a massive public debt-exchange rate-banking crisis just six months later, in August 1998. In showing how this turn of events unfolded, the authors focus on the interaction among Russia's deteriorating fiscal fundamentals, its weak micro-foundations of growth and financial globalization. They argue that the expectation of a large official bailout in the final 10 weeks before the meltdown played an important role, with Russia's external debt increasing by $16 billion or 8 percent of post-crisis gross domestic product during this time. The lessons and insights extracted from the 1998 Russian crisis are of general applicability, oil and geopolitics notwithstanding. These include a discussion of when financial globalization might actually hurt and a cutoff in market access might actually help; circumstances in which an official bailout could backfire; and why financial engineering tends to fail when fiscal solvency problems are present.
  • Publication
    IFC Annual Report 2009 : Their/Our Story, Creating Opportunity Where It's Needed Most
    (Washington, DC: World Bank, 2009) International Finance Corporation
    The global economic crisis has opened an uncertain chapter, especially for the 2.5 billion people who live on less than $2 a day. Many of them lack access to electricity, or clean water, or basic health care. For at least a decade, economic growth in developing countries helped expand the availability of basic necessities while steadily reducing the number of people in poverty. But this year, the number of people in extreme poverty is expected to be much higher than was predicted before the crisis. Unemployment is rising. Yet many countries lack the domestic resources needed to speed up development. International Finance Corporation (IFC) has responded swiftly and creatively to improve the lives of the most vulnerable people by working with the private sector to create conditions for sustainable prosperity, wherever the need is greatest. IFC has quickly ramped up its advisory efforts and mobilized its donor partners to help governments, clients, and markets cope with the crisis and recover speedily. Priorities include: helping financial institutions better manage their risks and their nonperforming loans; complementing investment efforts in banking for small and medium enterprises, microfinance, and housing finance with advice to financial institutions; supporting governments' efforts to keep trade flowing with advice on trade logistics; helping governments facing larger deficits widen their tax base; encouraging governments to simplify their bankruptcy systems to allow indebted companies to recover faster; advising boards of directors on risk management and crisis intervention; and helping governments redesign public-private infrastructure projects that face crisis-related difficulties.
  • Publication
    The Great Recession and the Future of Cities
    (World Bank, Washington, DC, 2012-11) Dethier, Jean-Jacques; Morrill, Curtis
    This paper describes the serious fiscal crisis faced by cities around the world following the Great Recession of 2008. Five years later, the after-effects of this major crisis continue to be felt and limit economic opportunities in cities. Section 1 summarizes how the crisis was triggered and how it unfolded in the US, then spread to the rest of world -- highlighting the links between financial sector and housing sector. Section 2 discusses the impact of the crisis on urban revenue and expenditure, and the stimulus programs and recovery plans devised as a short term response by cities around the world. Section 3 then discusses longer term strategies to ensure the financial, social and environmental sustainability of cities. The authors make the point -- and back up our assertions with specific examples -- that urban decision-makers must take a long view and find ways to create opportunities for their citizens, making sure that their decisions are financially sustainable in the long term. Today's decisions should not lock cities out of options tomorrow, and cities must be managed with flexibility so as to adapt to unforeseen new circumstances. The authors also argue that, while there has been a lot of talk about "smart cities" and new technologies among urban specialists and urban planners, it is ultimately the focus on basic economics (sustainable financing, providing good services to consumers and incentives for providers), good governance and good institutions that will create sustainable, dynamic and livable cities.
  • Publication
    India Development Update, October 2013
    (Washington, DC, 2013-10) World Bank
    Although the recent market turmoil has been driven primarily by external factors, it has magnified India's macroeconomic vulnerabilities. India was just one of a large number of emerging market economies whose currency and capital account were adversely affected by a large outflow of portfolio investment this summer. The current downturn presents an opportunity to push ahead with critical reforms. The current situation is unlikely to place an insurmountable stress on the economy, but it does offer an opportunity for measures to strengthen the business environment, attract more Foreign Direct Investment (FDI), and increase productivity. The rupee depreciated sharply in May-August 2013, mainly caused by market fears of an early end to the Federal Reserve's stimulus program. As global investors shifted funds into US treasuries, the May-August fall in the rupee closely mirrored movements in other emerging market currencies and US T-bonds. The current account deficit moderated and exports performance improved. After reaching a record high of 6.5 percent of Gross Domestic Product (GDP) in the third quarter FY2013, the current account deficit improved to 3.6 percent of GDP in the fourth quarter. The decline in poverty has accelerated, but vulnerability remains high. Between 2005 and 2012, India lifted 137 million people out of poverty and reduced the poverty headcount (at the national poverty line) to 22 percent of the population. The depreciation in the rupee is unlikely to have major adverse effects and provides an opportunity to accelerate growth through further progress on the reform agenda. Financing of the gap is expected to come in roughly equal parts from FDI and institutional flows in FY2014, with a growing contribution from FDI in FY2015.
  • Publication
    Managing Risk and Creating Value with Microfinance
    (World Bank, 2010) Goldberg, Mike; Palladini, Eric
    This report brings together the results of an eight-part series of presentations by leading experts in issues directly related to microfinance institutional sustainability. It is intended for microfinance institution (MFI) board members, managers, and staff members as well as for government regulators, supervisors, and donor staff members. The first four chapters include topics in risk management: (1) risk management systems, (2) good governance, (3) interest rates, and (4) micro-insurance. The last four chapters include four topics in new product development and efficient delivery methodologies: (5) housing microfinance, (6) micro-leasing, (7) disaster preparedness products and systems, and (8) new technologies. The objectives of the series were as follows: i) to strengthen MFIs by disseminating innovative approaches in risk management, cost control, governance, and new technologies; ii) to promote a South-South exchange of experiences and lessons learned; iii) to promote greater ties among the MFIs in the region and between MFIs and government supervisors and regulators; and iv) to highlight the Bank's ability to mobilize international technical expertise in microfinance.

Users also downloaded

Showing related downloaded files

  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.
  • Publication
    Financing Firm Growth
    (Washington, DC: World Bank, 2025-03-13) Meh, Cesaire A.; Schmukler, Sergio L.
    Well-functioning capital markets can foster economic growth and allocate resources efficiently. Firms can tap into a broader funding base by issuing debt and equity in capital markets, often at cheaper rates and longer tenors than through other sources of external finance, such as banks. However, capital markets in low- and middle-income countries have lagged those in high-income countries. Accordingly, the firms in those countries have more often relied on bank financing or retained earnings to fund investment and expansion, and they have experienced greater financial constraints than their counterparts in high-income countries. Financing Firm Growth: The Role of Capital Markets in Low- and Middle-Income Countries shows that the gap in capital market financing between low- and middle-income countries and high-income countries has narrowed, with resulting benefits for both the firms accessing those markets and for the countries in which they operate. The analysis reveals greater participation by firms from low- and middle-income countries in capital markets since the 2000s. Most of these firms are new participants in capital markets, and they tend to be smaller, younger, and more productive than those already participating. Firms are deploying capital raised in markets to become more productive—investing in physical assets, hiring more workers, and expanding operations, spurring growth both at the firm level and within their economies. To reach these findings, the analysis used a novel database of the universe of bond and equity issuances from companies between 1990 and 2022. The insights leverage data from nearly 80,000 firms worldwide, focusing on how 20,000 firms across 106 low- and middle-income countries access and use capital market financing. --- “Financing Firm Growth is a groundbreaking exploration that delves into the vital role that capital markets play in driving business expansion in low- and middle-income countries. Backed by data from 80,000 firms across 147 economies, the authors explore the factors underlying capital market growth and its benefits for economies and firms at all levels of development. This book is a must-read for investors, policy makers, and economists shaping the future of global finance.” — Laura Alfaro, Warren Alpert Professor of Business Administration, Harvard Business School
  • Publication
    World Development Report 1987
    (New York: Oxford University Press, 1987) World Bank
    This report, consisting of two parts, is the tenth in the annual series assessing development issues. Part I reviews recent trends in the world economy and their implications for the future prospects of developing countries. It stresses that better economic performance is possible in both industrial and developing countries, provided the commitment to economic policy reforms is maintained and reinforced. In regard to the external debt issues, the report argues for strengthened cooperation among industrial countries in the sphere of macroeconomic policy to promote smooth adjustment to the imbalances caused by external payments (in developing countries). Part II reviews and evaluates the varied experience with government policies in support of industrialization. Emphasis is placed on policies which affect both the efficiency and sustainability of industrial transformation, especially in the sphere of foreign trade. The report finds that developing countries which followed policies that promoted the integration of their industrial sector into the international economy through trade have fared better than those which insulated themselves from international competition.
  • Publication
    Mexico Poverty and Equity Assessment
    (Washington, DC: World Bank, 2025-02-20) World Bank
    This Mexico Poverty and Equity Assessment reviews the evidence about poverty and equity in Mexico over the last two decades, compares it to comparable international experience, and identifies a set of critical areas of policy intervention to answer the opening question. The report aims at contributing to an open conversation in Mexico about how to achieve this essential policy objective. This report postulates three main policy areas needed for poverty eradication in Mexico: inclusive growth, efficient social policy, and infrastructure to confront vulnerability. The report includes four sections, the first three of which collect evidence about poverty, social deprivations, and vulnerability and how the evolution of these three correlates to patterns of economic growth, social protection policy and territorial development. The fourth section provides some quantitative benchmarks of what it would take to eradicate extreme poverty in Mexico. Poverty in Mexico is defined not only in monetary terms, but also in a multidimensional manner that includes social deprivations. These are social deprivations that often define formal-vs-informal employment, so policy changes that close these carencias, as they are called in Mexico, will also reduce the informality gap. This report documents the evolution of poverty, social deprivations, and vulnerability to poverty. It explains the main forces that have driven this evolution and advises that many of these forces may not operate the same in the future as they did in the past. It provides the basis to argue that short to medium term extreme poverty eradication requires newer policy actions in terms of inclusive growth, more efficient social policy, and investments in physical and social infrastructure to reduce vulnerability. The report indicates that short to medium term eradication to extreme poverty is a major, but within reach, development challenge for Mexico.
  • Publication
    The State of the Global Education Crisis
    (UNESCO, Paris, UNICEF, New York, and World Bank, Washington, DC, 2021-12-10) UNESCO; UNICEF; World Bank
    Even before Coronavirus disease 2019 (COVID-19) hit, the world was already experiencing a learning crisis. 258 million primary- and secondary-school age children and youth were out of school. Many children who were in school were learning very little: 53 percent of all ten-year-old children in low- and middle-income countries were experiencing learning poverty, meaning that they were unable to read and understand a simple age-appropriate text at age 10. This report spotlights how COVID-19 has deepened the education crisis and charts a course for creating more resilient education systems for the future. Section one gives introduction. Section two documents COVID-19’s impacts on learning levels by presenting updated simulations and bringing together the latest documented evidence on learning loss from over 28 countries. Section three explores how the crisis has widened inequality and had greater impacts on already disadvantaged children and youth. Section four reviews evidence on learning recovery from past crises and highlights current policy responses that appear most likely to have succeeded in stemming learning losses, while recognizing that the evidence is still in a nascent stage. The final section discusses how to build on the investments made and the lessons learned during the pandemic to accelerate learning recovery and emerge from the crisis with increased education quality, resilience, and equity in the longer term.