Over the past 15 years, China has emerged as one of the world’s financial inclusion success stories. While much attention has been paid to the rapid innovation and massive scaling of Chinese fintech companies, China’s successes in financial inclusion reach beyond fintech. Account ownership has increased significantly and is now on par with that of other G-20 countries. One of the largest agent banking networks in the world has been established. And a robust financial infrastructure has been developed that underpins these successes.
So what can policymakers in other countries learn from China’s experience? While China is in some ways a unique environment, there are still valuable lessons to be learned from both its successes as well as its remaining challenges.
A new report released last week -– Toward Universal Financial Inclusion in China: Models, Challenges, and Global Lessons - provides a wealth of data and information about the various initiatives and efforts that have contributed to China’s advances in financial inclusion. The report, which was jointly written by the People’s Bank of China and the World Bank Group, also outlines remaining challenges and distills lessons for policymakers in other countries.
Better jobs, higher salaries and improved access to basic services – the bright lights of cities seem to promise these and more.
Forty years ago in December, Deng Xiaoping delivered his historic speech "Emancipate the mind, seeking truth from facts and unite as one to face the future." This triggered four decades of reforms that have transformed China into the world’s second largest economy. By some time in the next decade, China will be among the few countries in the world that will have transitioned from low income to high income status since World War II.
Understanding the path China traveled, the circumstances under which historical decisions were made, and their effects on the course of China’s economy will inform future decision makers. Increasingly, this reflection is important to the rest of the world as more and more countries see China as an example to emulate. At the 19th Party Congress in November 2017, China accepted this mantle for the first time since the onset of reforms.
In some ways, China’s reforms were fairly mainstream. The country opened up for trade and foreign investment, liberalized prices, diversified ownership, strengthened property rights, kept inflation under control, and maintained high savings and investment. But this is simplifying the reforms and obfuscates the essence of China’s reforms: the unique steps China took reforming its system are what makes its experience of interest (see the Annex). Its gradual approach to reform was in sharp contrast to Eastern Europe and the former Soviet Union. Although often compared, China and other transition countries were simply too different in terms of initial economic conditions, political development, and external environment.
Predominantly rural and among the poorest nations on earth, China was marred by the failure of the Great Leap Forward and the political disruptions during the Great Proletarian Cultural Revolution. Integration into the global economy was minimal. Industry was inefficient, but also far less concentrated than in Eastern Europe and the former Soviet Union. Perhaps most importantly, because China retained political continuity, the country could focus on an economic and social transition instead of a political one.
Comparison with much of the Latin American reforms also seems out of place. Brazil, Mexico and Argentina were far closer to a market-based system than China, and their reforms—liberalization and macroeconomic stability—were focused on macroeconomic stabilization, whereas China’s reforms aimed for a transformation of the economic system as a whole. So there is no need to juxtapose the “Washington Consensus” with a “Beijing Consensus:” the approaches taken served very different purposes indeed.
How can we harness the digital economy to make mobility more sustainable? This question was the main focus of this year’s Transforming Transportation conference, which brought together some of most creative and innovative thinkers in the world of mobility. One of them was Davis Wang, CEO of Mobike, a Chinese startup that pioneered the development of dockless bike-sharing and is now present in more than 200 cities across 12 countries. In his remarks, Wang raised a number of interesting points and inspired me to continue the conversation on the future of dockless bike-share systems and their potential as a new form of urban transport.
What exactly is dockless bike-sharing (DBS)?
Introduced in Beijing just under two years ago, dockless bike-share has been spreading rapidly across the world, with Mobike and three other companies entering the Washington, D.C. market in September 2017.
As their name indicates, the main feature that distinguishes “dockless” or “free-floating” systems from traditional bike-share is that riders can pick up and drop off the bicycles anywhere on the street rather than at a fixed station.
This is made possible by a small connected device fitted on each bike that allows users to locate and unlock the nearest bike with their smartphone in a matter of seconds—yet another new derivative of the “internet of things” revolution!
- Internet of Things
- digital economy
- smart mobility
- shared mobility
- urban mobility
- urban transport
- sustainable cities
- sustainable mobility
- Sustainable Communities
- Information and Communication Technologies
- Climate Change
- Urban Development
- East Asia and Pacific
- United States
The Asia-Pacific region, comprised of 58 economies, is geographically expansive and a picture of diversity. The trends for sustainable energy in Asia-Pacific, which mirror the region’s economic and resource diversity, are underscored by the fact that . The region’s sustainable energy picture is captured in a new report by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), entitled “Asia-Pacific Progress in Sustainable Energy: A Global Tracking Framework 2017 Regional Assessment Report.” The report is based on the World Bank and International Energy Agency’s Global Tracking Framework (GTF), which tracks the progress of countries on energy access, energy efficiency, and renewable energy under Sustainable Development Goal 7 (SDG7).
Four overarching sustainable energy themes emerge from the report:
As UN-Habitat’s Charter of Public Space states, public spaces are a key element of individual and social well-being, the places of a community’s collective life, particularly in situations of poverty and limited public resources, such as those in the developing countries. The Charter also highlights that participation of citizens and in particular of communities of residents is of crucial importance for the maintenance and management of public spaces. While there might be no objection to this statement, it is also true that it has been easily overlooked, especially in developing countries, for the sake of “economic efficiency.”
The responsibilities have radically changed from that of an administrative service function to a proactive and strategic one. Unfortunately, in most jurisdictions the procurement function is still not considered a specific profession and consequently, building procurement professional expertise to meet development challenges remains an unfinished agenda.
What would bring together the China trade shock, road blocks in the West Bank, and the Belt and Road initiative? The 6th Annual IMF-World Bank-WTO Trade Research Conference, at which staff of the three institutions presented the results of twelve research projects.
The Conference is over, but the website lives on, and here you can find preliminary versions of papers. To whet your appetite, here are three examples of research that use creative methodologies and raise provocative questions.
December 3 is the International Day of Persons with Disabilities. Every year, on this day, the international community comes together to take stock of the progress that has been made to advance the rights of people with disabilities around the world.
At the World Bank, we commemorate the signing of the United Nations Convention of the Rights of Persons with Disabilities and underscore our commitment to Sustainable Development Goal 4 (SDG4), to “ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities” by 2030. Yet, despite these international commitments, globally, too many students with disabilities still face significant barriers when it comes to attending school.
William Young, Lead Water Resources Management Specialist, the World Bank
The Ganges Basin in South Asia is home to some of the world’s poorest and most vulnerable communities. Annual floods during monsoon season cause widespread human suffering and economic losses. This year, torrential rains and catastrophic floods affected more than 45 million people, including 16 million children. By 2030, with ongoing climate change and socioeconomic development, floods may cost the region as much as $215 billion annually.
A new report, Flood Risk Assessment and Forecasting for the Ganges-Brahmaputra-Meghna River Basins, summarizes two recent initiatives aiming to reduce these flood losses: a flood risk assessment for the Ganges Basin and an improved flood forecasting system for the Ganges-Brahmaputra-Meghna basins.