The 2014 World Development Report has been released by the World Bank. Entitled ‘Risk and Opportunity: Managing Risk for Development’, it looks at how improving risk management can lead to gains in development and poverty reduction. Specifically, improved risk management reduces the negative consequences of shocks and hazards, and enables the pursuit of new opportunities. Read extracts below:
“Why worry about risk? In recent years, a multitude of crises have disrupted the world economy and have had substantial negative consequences on development. Because of the 2008–09 global financial crisis, most economies around the world experienced sharp declines in growth rates, with ensuing loss of income and employment and setbacks in efforts to reduce poverty. When food prices spiked in 2008, riots broke out in more than a dozen countries in Africa and Asia, reflecting people’s discontent and insecurity and causing widespread political unrest. The 2004 Asian tsunami, the 2010 earthquake in Haiti, and the 2011 multiple hazard disaster in northeastern Japan—to name but a few—have left a trail of fatalities and economic losses that exemplify the increased frequency and intensity of natural disasters. Concerns about the impact of climate change worldwide are growing, and so are fears about the spreading of deadly contagious diseases across borders. Indeed, the major economic crises and disasters that have occurred in recent years and those that may occur in the future underscore how vulnerable people, communities, and countries are to systemic risks, especially in developing nations.”
Click here to access the full report.