Economic Growth – Integra LLC

Africa, Agriculture, Food Security & Rural Development, Areas of Expertise, Economic Growth, Integra News, Where we work

Eric White, Integra LLC’s Lead Economist, to join panel at the World Bank Info Shop!

Eric White, Integra LLC’s Lead Economist and Managing Associate, will join a panel next Wednesday, May 15th at the World Bank Info Shop. At the event, entitled“Breaking the Rural – Urban Divide”, panelists will be discussing two books released by the World Bank Press; Structural Transformation and Rural Change Revisited and Financing Africa’s Cities. As a co-author of the former, Mr. White will take part in a discussion about the structural transformation process, from both a rural and urban perspective.

Global Broadband is Speeding Up, Says latest “State of the Internet” Report

First Quarter, 2012 State of the Internet Report from Akamai

Photo Credit: Akamai http://www.akamai.com/stateoftheinternet/

The broadband revolution is proceeding apace across the globe as internet speed and adoption have increased at faster paces. The Akamai company recently released its First Quarter, 2012 State of the Internet report which discusses important global broadband statistics like internet penetration rates, mobile connection speeds, regional and global connection speeds, and broadband adoption among many others. The report, in addition to providing invaluable insight into global trends in broadband, also underscores the role broadband and mobile technologies can play in the future of development.

Thanks to an ever-increasing demand for connectivity in both developed and emerging economies the world has seen a dramatic rise. Broadband speed has increased to such an extend that Akamai has redefined what it calls “high-broadband.” Previously, any connection at speeds of 2Mbps or higher was defined as broadband, but now Akamai will consider connections of 4Mbps has broadband and connections of 10Mbps has high broadband.

For the first quarter of 2012, the report points out a series of trends:

A 6 percent global increase in the number of unique IP addresses to over 666 million in between fourth quarter 2011
A global average of peak connection speed of 13.5 Mbps
A global average connection speed of 2.6Mbps
A global average mobile connection speed range between 32.2 Mbps and 2.2 Mbps
A doubling in global mobile data traffic between the first quarters of 2011 and 2012
A global increase in adoption of high broadband

These statistics are certainly promising, especially when considered within the context of the increasingly important role broadband and mobile broadband can play in process of development. The global doubling of mobile broadband certainly lends itself to the existing forecasts of the increasing prominence and importance of smartphones in many developing countries as price wars continue to drive down device prices. All this, when added with the World Bank’s recent Maximizing Mobile report on harnessing mobile for development, adds up to a future full of potential, fueled by broadband.

As we move forward it is important that we remember these technologies are only as good as their connection. Many developing countries still have a pronounced rural/urban digital divide in both access and connectivity. If the potential of these technologies can be fully realized, it is crucial that policy makers commit reducing these gaps.

August 30, 2012/by actualize

Areas of Expertise, Economic Growth, Environment & NRM

Ecotourism vs. Sustainable Tourism

Photo credit: Sustainable Futures

980 million people traveled internationally in 2010, a 4% increase over the previous year, and forecasts expect 1.6 billion tourists by the year 2020. Travel & Tourism as a sector accounts for 258 million jobs globally, and provides crucial opportunities for investment, economic growth, and fostering cultural awareness. Tourism can also be a powerful tool for tackling major challenges such as conservation and poverty alleviation.

But how do environmentally and socially conscious travelers navigate the complex differences between ecotourism, sustainable tourism, socially responsible tourism and the other myriad forms of traveling responsibly?

Ecotourism vs Sustainable Tourism

Industry consensus agrees ecotourism is more focused on ecological conservation and educating travelers on local environments and natural surroundings, whereas sustainable tourism focuses on travel that has minimal impact on the environment and local communities. Ecotourism is a form of tourism, or a category of vacation similar to beach, adventure, health, or cultural, while the concept of sustainability can be applied to all types of tourism.

As established by The International Ecotourism Society (TIES) in 1990, ecotourism is “Responsible travel to natural areas that conserves the environment and improves the well-being of local people.” Another widely cited definition of ecotourism is “purposeful travel to natural areas to understand the culture and natural history of the environment; taking care not to alter the integrity of the ecosystem; producing economic opportunities that make the conservation of natural resources beneficial to local people.”

The Global Sustainable Tourism Council (GSTC) is a global initiative dedicated to promoting sustainable tourism practices around the world. GSTC and its global members of UN agencies, global travel companies, hotels, tourism boards and tour operators follow the Global Sustainable Tourism Criteria. The 23 criteria focus on best practices to sustain natural and cultural resources, maximize social and economic benefits for the local community, and minimize negative impacts to the environment.

Currently there is no internationally accredited body charged with overseeing the standards, monitoring and assessment, or certification for the ecotourism or sustainable tourism industries. Without an established standard it is easy to be confused by organizations that greenwash services and offerings as “environmentally friendly.” Others argue that ecotourism is an oxymoron, as travel implicitly entails activities that are detrimental to the environment. Planes, trains and automobiles use harmful fossil fuels that emit CO2, and forestland is often cleared for roads and railways.

Ecotourism and Sustainable Tourism in Action

Photo Credit: Visit Costa Rica

Costa Rica was a pioneer in ecotourism and exemplifies how tourism can be a key pillar of economic development policy. Costa Rica is now the premiere destination for ecotourism, and in 2010 tourism contributed 5.5% of the country’s GDP. Jordan serves as another model of successfully integrating conservation and socio-economic development. Ecotourism generated $2.1 million in 2010, and Jordan’s Royal Society for the Conservation of Nature has received several global awards for its success in alleviating poverty and creating employment for local communities, in combination with integrating nature conservation.

Myriad sites offer options for tours and hotels that cater to a more environmentally friendly and sustainable type of traveling experience. The New York Times travel section allows viewers to search potential destinations using ecotourism as a criteria, and Condé Nast Traveler highlights Ecotourism and Sustainable Travel under Expert Travel Tips.

The Earthwatch Institute, organizes trips where travelers work alongside scientists and explorers on field expeditions and Sierra Club’s travel arm Sierra Club Outing allows environmentalist to learn something on vacation and inflict minimal harm on the surrounding environment.

At the industry level, hotels and resorts are taking on sustainability commitments that focus on recycling, decreasing water and energy usage, reducing greenhouse gas emissions,and environmentally friendly design. Many in the industry show a commitment to a holistic approach to sustainability which includes the construction of Leadership in Energy & Environmental Design (LEED) certified buildings, providing eco-friendly and organic food and wine selections, and rewarding guests who make “green choices.” Marriott, which boasts 2,800 hotels worldwide, offers guests hotel points or vouchers for the hotel restaurant should they choose to not having linens and towels washed daily.

Understanding the difference between sustainable tourism and ecotourism educates travelers on the significant impact their travel decisions have on the environment, economy and local communities they visit. Participating in sustainable tourism, or more specifically ecotourism vacations, means travelers can contribute to development and conservation efforts, while enjoying themselves on vacation.

August 13, 2012/by actualize

Agriculture, Food Security & Rural Development, Areas of Expertise, Economic Growth, Environment & NRM, Information and Communication Technology for Development

Ambassador Verveer discusses “Women’s Economic Success and Global Growth”

Ambassador-at-Large for Global Women’s Issues, Melanne Verveer. (Photo: US Dept of State)

On Monday, July 23, 2012 the Center for American Progress hosted Ambassador-at-Large for Global Women’s Issues, Melanne Verveer for a discussion on “Women’s Economic Success and Global Growth.” Amb. Verveer’s talk focused on the crucial role women play in sustainable development and economic growth worldwide. US women generate $3.5 trillion yearly, and women’s employment in developing countries contributes more to the global economy than China. By 2050, women will control 2/3 of all spending worldwide. Noting that women traditionally spend their earnings in sectors that create a multiplier effect (i.e., health, education, food), Amb. Verveer emphasized the tremendous consumer power women will wield in global markets. She also highlighted growing research that shows how countries where women’s rights are more closely equal to those of men are more peaceful and prosperous than countries that ignore, marginalize or limit the role of women.

Amb. Verveer spoke of three main areas the State Department focuses on increasing the role and influence of women: Economic Empowerment, Women in Development, and Peace and Security. Within the Women in Development sector, three initiatives discussed fit squarely within Integra’s areas of expertise: Feed the Future (Agriculture), Global Climate Change Initiative (Environment) and mWomen (Information and Communications Technology).

Agriculture: Women are vital to agricultural development, often making up the majority of farmers in developing countries and the backbone of agriculture-based economies. FAO reports claim that if men and women farmers had equal access to credit, training, property rights and technical inputs, yields could improve 20 to 30 percent and the number of malnourished people worldwide could be reduced by 150 million people.

Environment: Women bear the burdens of climate change disproportionately more than men. Yet women are uniquely empowered to address climate change because of their central role in agriculture, forest management, and running the home (i.e., making crucial energy decisions as pertains to energy sources used in the home).

ICT4D: Increased technological access creates opportunities for financial security and independence. With mobile access, women are able to gain information about the current market, including data on pricing and weather systems, in addition to business insights and trainings, access to support networks, and the ability to transfer and save funds. “The significance of mobile technology cannot be underrated,” said Ambassador Verveer, who emphasized both the economic and social value of mobile technology. While 350 million women still do not have access to cell phones, the State Department is working to bridge this gap in connectivity through various initiatives, including the GSMA mWomen initiative. mWomen is committed to reducing this gender gap in connectivity by 50%.

In each development sector highlighted, Ambassador Verveer reiterated that gender equality is not only smart economics, but in line with US values and “a moral imperative of the 21^st Century.” While the State Department and USAID continue to add gender guidance components to trainings and major international initiatives, true change will only be achieved once gender equality becomes institutionalized and integrated across all bureaus. Women’s rights need to be viewed as human rights essential to fostering economic growth, social stability and a more peaceful prosperity worldwide.

To view full event video, click here. To read Ambassador Verveer’s article on “Why Women Are a Foreign Policy Issue,” click here.

July 27, 2012/by actualize

Areas of Expertise, Economic Growth, Environment & NRM

A Panel Discussion on the World Bank Report, “Inclusive Green Growth”

Marianne Fay, Chief Economist of the Sustainable Development Network, presenting the World Bank report, "Inclusive Green Growth".

Marianne Fay, Chief Economist of the Sustainable Development Network. Photo credit: World Bank

On June 26, 2012, Dr. Marianne Fay, Chief Economist of the Sustainable Development Network presented the World Bank report entitled “Inclusive Green Growth”, followed by a panel discussion in Washington, D.C. Commentators included Dr. David Reed, the Senior Vice President, Policy of the World Wildlife Fund, and Dr. Rosina Bierbaum, Professor of Natural Resources and Environmental Policy at the University of Michigan.

Following the Rio+20 UN Conference on Sustainable Development, panelists upheld the importance of inclusive, sustainable economic growth. Accordingly, the report puts forth a three-pronged strategy to achieve this goal. Highlighted methods include appealing to immediate and short-term benefits, creating incentives for private sector investment, and promoting sustainable decision and policy making such as natural capital accounting.

Referencing Christine Lagarde’s recent speech on sustainable development, Dr. Fay pointed out that while “getting the prices right” is fundamental to building a green economy, that it would not act as a catalyst on its own. Similarly, Dr. Bierbaum informed the audience that cost-efficient alternatives are insufficient for stimulating investment. Panelists insisted that in order to achieve a green economy, a change in human behavior must occur, alongside a shift in private investment, given the proper incentives. Nevertheless, while each commentator recognized the importance of attracting the private sector and communities to facilitate this change, little was discussed as to what those incentives might be.

Pointing out another important issue, Dr. Reed emphasized the need for a micro-level focus on members of the communities such as farmers, civil society members, microfinance institutions and social entrepreneurs. While he supported the World Bank report, he also pointed out what he called a “major disconnect” between the document and a strategy on how to involve all stakeholders in fostering a green economy; not just the World Bank and government agencies. His comments raised the question as to what incentives could build such a network to support this effort?

As Dr. Fay mentioned, no matter how high gas prices rise, the majority of a population will continue to pay for the fuel if they do not have a public transportation system that provides them with another option. Accordingly, governments and the private sector must work together to provide and invest in the infrastructure necessary to support green growth. Sustainable transportation systems and increasing access to ICT, for example, are two topics that took center stage at the Rio+20 conference last week. Multilateral banks committed over $175 billion dollars to support sustainable transportation systems in the developing world, and ICT has been recognized as a key strategy for inclusive sustainable development.

While the World Bank and similar financial institutions may not be able to provide incentives for private sector investment, they can provide funding to assist financially struggling governments pursue this path of sustainable development. Marianne Fay suggested that a combination of both regulatory policies and price instruments be used, in conjunction with social policies that help the poor deal with the transition. The discussion concluded with a reminder to the audience, that the goal is not to slow growth, but to change the way in which we develop. Perhaps once the incentives are better defined, and strategies are tailored to the context of each individual country, drivers of the economy will be more open to change.

July 6, 2012/by actualize

Africa, Areas of Expertise, Economic Growth, Information and Communication Technology for Development, Where we work

Massive New Submarine Cable to Bring High-Speed Broadband Access to West Africa

Bandwidth problems in West Africa may soon become a thing of the past when the Africa Coast to Europe (ACE) broadband submarine cable comes online this December. The US$700 million will interconnect a total of 23 countries in Europe and West Africa, including two Integra and GBI clients, Nigeria and Ghana. This massive infrastructure project aims to bring high-speed broadband internet to these developing countries in order to reduce the digital divide and serve as “a vector of social development and economic growth in Africa.”

Led by the France Telecom company, this broadband system will extend over 17,000 km to from Brittany in France to Cape Town in South Africa. Parts of Europe and 16 West African countries will be interconnected by the submarine cable. Connectivity will extend even to the landlocked nations of Mali and Niger who will be connected via their own terrestrial links.

The cable itself has an initial 1.92 terabytes per second (Tb/s) capacity that can be upgraded to a whopping 5.12 Tb/s. ACE will use cutting edge fiber optic technology developed by Alcatel-Lucent that offers a higher quality of high-speed broadband than satellite at a lower cost. Utilizing new wavelength-division multiplexing (WDM)technology, the ACE stations can be upgraded without any actual modifications to the cable itself. This is a significant increase in the broadband capacity for these countries. Gambia for example, is estimated to have an increase in capacity by a factor of 16.

Increasing bandwidth capacity is crucial for enabling increased broadband penetration rates within a county. In 2011, the Broadband Commission for Digital Development issued a report that identified broadband as a “tool of unprecedented power” in helping countries meet the millennial development goals in 2015. Additionally, a report from the World Bank showed that a 10% increase in broadband penetration in developing economies correlates with a 1.38% contribution to economic growth. With ACE online, West Africa will be able to access a plethora of new opportunities.

June 25, 2012/by actualize

Areas of Expertise, Economic Growth, Environment & NRM

Paths to Sustainable Development from Christine Lagarde, IMF

Christine Lagarde, Managing Director of the IMF giving a speech at the Center for Global Development in Washington, D.C.

Christine Lagarde, Managing Director of the IMF. Photo credit: International Monetary Fund

On Tuesday, June 12, 2012, Christine Lagarde, Managing Director of the International Monetary Fund (IMF), presented a speech at the Center for Global Development in Washington D.C. entitled “Back to Rio, the Road to a Sustainable Economic Future”.

Mrs. Lagarde spoke of a “triple crisis”, comprised of economic, environmental and social factors, stressing her belief that none of the issues could be improved in isolation from one another. In order to address these problems, she called for a different type of economic growth that would use a variety of fiscal and monetary policies to address the environmental and social issues simultaneously. Fiscal policies mentioned included cap and trade schemes on carbon emissions, and various environmental taxes. In regards to how the IMF can assist in this matter, Mrs. Lagarde stated that the organization can help set prices and fill infrastructure gaps with clean energies to help increase economic growth. With the ability to lend to the developing world, she stressed, “Now the IMF needs more resources for concessional lending, to help vulnerable countries navigate an increasingly volatile world. This is one of my top priorities.”

Mrs. Lagarde also highlighted the dual effects of environmentally-sensitive fiscal policy, to reduce environmental damage while generating tax revenue for the economy. Illustrating this point, she stated, “Right now, less than 10 percent of worldwide greenhouse gas emissions are covered by formal pricing programs. Only a handful of cities charge for the use of gridlocked roads. Farmers in rich countries are undercharged—if charged at all—for increasingly scarce water resources.” Mrs. Lagarde also mentioned that the IMF currently involved in natural resource accounting, along with the United Nations and the World Bank, to monitor the stock and use of natural resources such as land, water, and subsoil assets.

Mrs. Legarde brought attention to the need for social safety nets, particularly in developing countries, where she feels people are the most vulnerable to environmental consequences. Furthermore, she reminded the audience that the hardest-hit populations are usually those who contribute the least to the economic and environmental crises. In an effort to help relieve the stress, she cited the IMF’s effort to replenish the poverty reduction fund and provide resources to those countries in need. She also called for governments to move away from subsidy regimes that do not account for income disparities between different populations.

Following Mrs. Lagarde’s speech, a Questions and Answer session was led by Nancy Birsdall, President of the Center for Global Development. An important topic of discussion was how the global community can best take a green measurement of GDP. Mrs. Lagarde emphasized that the way in which we measure, determines the way in which we think; so while it may not become a mainstream measurement of growth, some type of value or index is crucial in order to compare and address the cost of natural resources, the value of goods, etc. She also mentioned that this is something the Department of Statistics at the IMF is currently working on with the Organization for Economic Cooperation and Development (OECD).

In preparation of the Rio+20 Summit, United Nations Conference on Sustainable Development, Mrs. Lagarde outlined a variety of important issues for attendees to take into account. The conference took place this week in Brazil, marking the 20^th anniversary of the 1992 United Nations Conference on Environment and Development (UNCED), in Rio de Janeiro.

June 22, 2012/by actualize

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