Photo: Sergio Amaral/MDS
Photo: Sergio Amaral/MDS
If you’ve opened a bank account in the last few years, you likely had to answer a bunch of more or less intrusive questions about yourself, your background and why you wanted to open the account. Annoying, but part and parcel of Anti-Money Laundering/Combating the Financing of Terrorism (“AML/CFT”) rules that all banks, in all parts of the world, are subject to.
The ostensible purpose is to enable banks to prevent bad actors using the financial system to launder their funds and, where bad actors are not identified at entry, to detect any suspicious financial activity and provide appropriate background to competent authorities. (Whether they are successful in this endeavour is another question.)
More recently large international banks have been upping the ante and have started to disengage altogether from clients from certain geographical regions or certain sectors because they consider the AML/CFT risks too great- a development known as “de-risking”. Often the business lines or countries exited are those that aren’t particularly profitable; the argument being that only a substantial profit margin justifies taking a larger than average risk. The amount of due diligence to be conducted on a customer cuts into that profit margin and the higher the perceived risk of that customer, the more the due diligence, the lower the profit.
One of the sectors particularly affected are non-profit organizations (NPOs). This is an unfortunate consequence of the mistaken and remarkably persistent idea that all NPOs pose a high AML/CFT risk. According to a report published earlier this month by the Charity and Security Network, two-thirds of U.S.-based NPOs working abroad are facing problems accessing financial services. Apart from account closures and account refusals, these also include delays in wire transfers and increased fees.
As a result of these delays, they are sometimes forced to move money through less transparent, traceable, and safe channels. The prevalence and types of problems vary by program area, with NPOs working in peace operations/peacebuilding, public health, development/ poverty reduction, human rights/ democracy building, and humanitarian relief reporting the greatest difficulties. One NPO was prevented from sending immediate relief to the persecuted Rohingya minority in Myanmar in the midst of a dire humanitarian crisis. Timely transmittal of those funds might have saved lives, the charity’s director explained.
Sustainable Development Goal 6 (SDG6) calls for “universal and equitable access to safe and affordable drinking water” by 2030, which is quite different from access to an “improved” water source, which has been our primary focus with the Millennium Development Goals. This makes water quality monitoring essential:
This blog was originally posted on the BBC Media Action Insight blog by Melanie Archer, Digital Editor.
Films in the international development sector are often associated with fundraising but they can also serve as a form of aid in themselves. Films can help mothers manage a pregnancy, assist refugees as they navigate life in an unfamiliar country and influence perceptions of what politicians can achieve.
The annual Golden Radiator Awards is a prime opportunity to learn about some of the more creative films the international development sector has produced over the previous 12 months. From the creators of the seasonal (and satirical) Radi-Aid app, these Awards laud charity fundraising films that go beyond stereotypes in their storytelling.
But what about films for people in development settings? In parts of the world where radio is still king (though this is rapidly changing), it’s perhaps not surprising that there aren’t as many development films. But while not as plentiful in supply as those geared towards western audiences, examples of such films do exist and can be a powerful tool for meeting the needs of aid beneficiaries. Here are five examples.
From Kakuma to Rio
In March, the international community of statisticians will gather in New York and Ottawa to discuss and agree on a global indicator framework for the 17 Sustainable Development Goals and the 169 targets of the “2030 Agenda for Sustainable Development”. The task at hand is ambitious. In 2015, heads of state from around the world committed to do nothing less than “transform our world”. Monitoring progress towards this ambition is essential, but technically and politically challenging: it will require endorsement from all UN Member States on how to measure progress. In March, it will be the second attempt at getting this endorsement.
Why is it important? “What gets measured, gets done”. Measuring progress is essential for transparency and accountability. It allows us to understand our accomplishments and failures along the way, and identify corrective measures and actions—in short, it allows us to get things done.
What is the issue? Politically, the SDG process has been country led. This means that countries—and not international agencies, as in the case of the Millennium Development Goals—have guided the whole SDG process, including leading discussions and the selection of goals, targets and indicators. Technically, the development of a robust and high-quality indicator framework is highly complex: the indicator should align closely with each target, have an agreed-upon methodology, and have global coverage. In reality, many indicators do not. For example, the indicator proposed to measure the 11.2 SDG target (“By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all”) is the “proportion of population that has convenient access to public transport”. Data is not yet available for this indicator. Additional indicators may be needed to cover all aspects of the target.
We economists did not see the 2008 global financial crisis coming.
Nor did we anticipate, predict or, at least, warn people about the current wave of anti-trade, anti-immigration, and populism!?
To be fair, some economists were sounding alarms in the lead-up to the financial crisis. And even with the current backlash, although we may have missed the chance to predict it, many had warned that we were understating the impacts of global trade and that distributional tensions - the result of an unequal impact of globalization, technological change, and aging on certain groups - were mounting.
It seems very important – especially when considering the ongoing fierce rhetoric with which some policy proposals and decisions are described – to remain cool-headed, carefully analyze data, stay engaged and support reforms that are backed by solid evidence.
- On the 74 million blog, interview with Kirabo Jackson about the importance of school spending and other education-related discussion: “In casual conversation with most economists, they would say, “Yeah, yeah, we know that school spending doesn’t matter.” I sort of started from that standpoint and thought, Let me look at the literature and see what the evidence base is for that statement. As I kept on looking through, it became pretty clear that the evidence supporting that idea was pretty weak.” Also discussion on the need to measure things beyond test scores.
- IPA has a nice little booklet on nudges for financial health – a quick summary of the evidence for commitment devices, opt-out defaults, and reminders.
- development impact links
Edutainment, or the use of mass media entertainment to educate people, can promote positive behavior change. An experimental study in Nigeria finds that young people who watched the MTV Shuga drama series were twice as likely to get an HIV test, and half as likely to have multiple concurrent sexual partners. Chlamydia infections also dropped by 58% among women who watched the show.
Read more about the evaluation of the MTV Shuga Soap Opera.
Technology is shaking up labor markets around the world. Increasingly intelligent machines are taking over routine jobs. Three-D printing is making many traditional, labor-intensive production processes obsolete. In total, almost half of all jobs may be at risk in the United States due to automation. Job losses are no longer just limited to blue collar occupations, but increasingly also affect high-paying white collar jobs such as in insurance, in the health sector or even in government bureaucracies. Is this the end of work as we know it? Not so fast, say some, who argue that technological progress and automation have not necessarily led to less demand for work on aggregate. An often cited example is the fact that the introduction of the automatic teller machine was accompanied by an expansion in retail banking jobs as banks opened more branches.
On her daily walk down the muddy road that connects her home with school, Beatriz would sing a cumbia and dream of becoming a professional dancer. However, she would soon find out that her aspirations were short lived. At the age of 14, Beatriz got pregnant and never went back to school. In the six years following her pregnancy, she struggled with an unstable and low-paid job, cleaning rich houses in Guatemala City. By the age of 20, without minimum skills and a secure job, Beatriz had little control over her life and a murky picture of her future loomed.