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Indonesia: Integrated Development to Improve Lives of Growing Urban Population

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The World Bank’s Board of Executive Directors approved a $49.6 million loan today. The loan will finance a Government of Indonesia’s project to improve the capacity of cities to formulate and analyze infrastructure investments to achieve sustainable urban development through better integrated planning and city management.   

Indonesia is among the largest contributors to urbanization globally. According to the United Nations’ estimates, Indonesia’s urban population increased by nearly 59 million people from 2010 to 2018, behind only China and India. At present, 137 million people live in Indonesia’s cities or 54 percent of the population. The share of urban residents is expected to grow to 68 percent of the population by 2025.  Because of persistent gaps in infrastructure and inadequate attention to spatial prioritization of infrastructure investments, Indonesia has not fully benefitted from the positive effects of urbanization.

The new National Urban Development Project (NUDP) will help cities integrate sectoral plans and strategies including master plans for transportation, housing, economic strategies and environment. In addition, the link between a medium-term capital investment, infrastructure prioritization, and financing needs will be strengthened.

The project financed by this loan will benefit an estimated 12.5 million people living in 13 cities. Municipal agencies will also benefit from improved capacity for evidence driven urban planning and financial management as well as better integration of spatial and socio-economic development planning.

 “Helping municipal governments integrate spatial planning with capital investment planning will help cities become drivers of prosperity for the country’s fast-growing urban population,” said Rudy Prawiradinata, Deputy for Regional Development, National Development Planning Agency (Badan Perencanaan Pengembangan Nasional – BAPPENAS).

NUDP will also support the development of higher-quality data and studies for urban planning, help city governments’ make better capital investments across sectors, and enhances their ability to access alternative sources of financing.

“This project will cause more effective financing of infrastructure to make cities more livable and productive,” said Rodrigo A. Chaves, World Bank Country Director for Indonesia and Timor-Leste. “Indonesia is vulnerable to the adverse impacts of climate change. This project will improve links between urban planning and infrastructure development to make the investments more efficient and reduce the vulnerability to climate-related hazards by directing development towards lower risk areas.”

The World Bank’s support for infrastructure and delivery of local services is an important component of the World Bank Group’s Country Partnership Framework for Indonesia, which focuses on government priorities that have potentially transformational impact.

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ADB, Uzbekistan Renew Development Partnership with New 5-Year Strategy

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The new country partnership strategy, from 2019–2023, supports the Government of Uzbekistan's ongoing reforms to help the economy’s transition towards a more inclusive and market-driven growth path. Photo:ADB

The Asian Development Bank (ADB) has endorsed a new Country Partnership Strategy (CPS) for Uzbekistan. The 5-year partnership strategy, from 2019–2023, supports the government’s ongoing reforms to help the economy’s transition towards a more inclusive and market-driven growth path.

Although Uzbekistan is experiencing economic growth, it faces significant challenges, including tackling growing youth unemployment, creating quality jobs, developing the private sector, improving public infrastructure, and maximizing the country’s potential as a hub for transport, trade, and regional cooperation in Central Asia.

Under the new CPS, ADB will support the government’s long-term objectives to improve the quality of people’s lives and enable the creation of quality jobs. Its country operations will support private sector development, reduce economic and social disparities, and promote regional cooperation and integration.

ADB will help make cities and villages outside Tashkent more livable through rural development and improving access to finance of small and medium-sized enterprises, particularly those owned or led by women. ADB will also support the livestock, horticulture, and irrigation sectors to create jobs and improve sources of income. ADB will boost its support for regional cooperation initiatives, benefiting Uzbekistan. It will promote regional power trade within the Central Asia Power System and regional connectivity along major corridors of the Central Asia Regional Economic Cooperation (CAREC) countries.

“ADB’s new partnership strategy is closely aligned with the government’s objectives to provide a more inclusive and sustainable future to the people of Uzbekistan. Through the CPS, we will continue our support in improved water supply and sanitation, better roads and railways, enabling horticulture production and export, efficient irrigation systems, and supply of reliable electricity for homes and businesses,” said ADB Country Director for Uzbekistan Ms. Cindy Malvicini. “People will have improved health care services, particularly for mothers and children. ADB will also help the government provide young people with the latest skills needed to find jobs.”

ADB will support efforts to create a more conducive environment for the private sector through public–private partnership projects. Uzbekistan’s economy is heavily dominated by state-owned enterprises, limiting opportunities for the private sector. ADB will also help key state-owned companies to improve their financial management and governance.

The CPS is in line with ADB’s Strategy 2030, which sets the course for the bank to effectively respond to the changing needs of the Asia and Pacific region. In Uzbekistan, ADB will strengthen governance and institutional capacity; address remaining poverty and reduce inequalities; promote rural development; and foster regional cooperation and integration.

Since joining ADB in 1995, Uzbekistan has received 72 loans totaling $7.7 billion, including two private sector loans totaling $225 million. ADB also provided $6 million in equity investment, $218 million in guarantees, and $93.1 million in technical assistance grants. In 2018, ADB committed five loans totaling $1.1 billion to improve power generation efficiency, primary health care services, access to finance for horticulture farmers and businesses, access to drinking water in the western part of Uzbekistan, and economic management in the country.

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Human Rights

Moratorium call on surveillance technology to end ‘free-for-all’ abuses

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Surveillance technology should be banned immediately until “effective” national or international controls are put in place to lessen its harmful impact, a UN-appointed independent rights expert said on Tuesday.

David Kaye, who’s the United Nations Special Rapporteur on freedom of opinion and expression, made the appeal as he prepared to present his latest report to the Human Rights Council in Geneva.

He highlighted that while States were largely responsible, companies appeared to be “operating without constraint” too, in a “free for all” private surveillance industry environment.

“Surveillance tools can interfere with human rights, from the right to privacy and freedom of expression to rights of association and assembly, religious belief, non-discrimination, and public participation,” the Special Rapporteur said in statement. “And yet they are not subject to any effective global or national control.”

Surveillance linked to detention, torture, extrajudicial killings

According to Mr. Kaye’s report, the surveillance of journalists, activists, opposition figures, critics and UN investigators can lead to arbitrary detention.

It has also been linked to torture and possibly to extrajudicial killings, the Special Rapporteur said, citing various ways that States and other actors monitor individuals who exercise their right to freedom of expression.

These include hacking computers, networks and mobile phones, using facial recognition surveillance and other sophisticated surveillance tools to shadow journalists, politicians, UN investigators and human rights advocates.

Among the Special Rapporteur’s recommendations is an appeal to States to adopt domestic safeguards to protect individuals from unlawful surveillance, in line with international human rights law.

In particular, Mr. Kaye calls for the development of publicly-owned mechanisms for the approval and oversight of surveillance technology.

In addition, countries should strengthen export controls and provide assurances of legal redress to victims.

“It is imperative that States limit the uses of such technologies to lawful ones only, subjected to the strictest sorts of oversight and authorisation,” he said. “And that States condition export of such technologies on the strictest human rights due diligence”.

Companies operate in ‘free-for-all’ snooping environment

Addressing the issue of corporate responsibility, Mr. Kaye insisted that companies should adhere to their human rights responsibilities, as they “appear to be operating without constraint”.

To remedy this, firms should disclose data transfers, conduct “rigorous” human rights impact assessments, and avoid transfers to States unable to guarantee compliance with human rights norms, the Special Rapporteur said.

“The private surveillance industry is a free for all,” Kaye noted, “an environment in which States and industry are collaborating in the spread of technology that is causing immediate and regular harm to individuals and organisations that are essential to democratic life – journalists, activists, opposition figures, lawyers, and others.

“It is time for governments and companies to recognise their responsibilities and impose rigorous requirements on this industry, with the goal of protecting human rights for all,” Mr. Kaye said.

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Mini Grids Have Potential to Bring Electricity to Half a Billion People

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Mini grids, previously viewed as a niche solution, can provide electricity to as many as 500 million people by 2030, helping close the energy access gap, according to a new World Bank report. The combination of falling costs, dramatic increase in quality of service, and enabling policies has made mini grids a scalable option to complement grid extension and solar home systems.

Mini Grids for Half a Billion People: Market Outlook and Handbook for Decision Makers is the most comprehensive study on mini grids to date. It provides policy makers, investors, and developers with insights on how mini grids can be scaled up.  It takes stock of the global market and industry, analyses costs and technological innovations, and shows the importance of microfinance and income-generating uses of electricity.  

Compared with main grid and solar home systems, mini grids are a more viable solution for areas with high population density and medium electricity demand. Extending main grid to serve remote communities is often prohibitively expensive. Globally, at least 19,000 mini grids are already installed in 134 countries, representing a total investment of $28 billion and providing electricity to around 47 million people. Most are deployed in Asia, while Africa has the largest share of planned mini grids.

At present the total mini grid investment in countries with low levels of electricity access in Africa and Asia totals $5 billion. It is estimated that $220 billion is needed to connect 500 million people to 210,000 mini grids in these regions by 2030. Across the globe, countries need to actively mobilize private sector investment. This can be achieved by setting up policies that support comprehensive electrification programs, promoting viable business models, and providing public funding, for example through performance-based grants.

Mini grids are now one of the core solutions for closing the energy access gap. We see great potential for mini grid development at scale and are working with countries to actively mobilize public and private investment,” said Riccardo Puliti, Senior Director of Energy and Extractives at the World Bank. “The World Bank has been scaling up its support to mini grids while helping countries develop comprehensive electrification programs. Our commitments to mini grids represent about one-quarter of total investment by the public and private sector in our client countries. The Bank’s portfolio spans 37 mini grids projects in 33 countries, with a total commitment of more than $660 million. This investment is expected to leverage an additional $1.1 billion in cofinancing.”

In addition to being cost-efficient, mini grids have many other benefits. They have positive environmental impacts: 210,000 mini grids powered by solar energy would help avoid 1.5 billion tons of CO2 emissions globally. They also offer national utilities a win-win solution in the electricity sector by paving the way for more financially viable future grid expansion.

By the time the main grid arrives, significant demand for electricity would already exist and customers would have greater ability to pay through the generation of productive uses made possible by mini grids.

Funding for the report was provided by the World Bank’s Energy Sector Management Assistance Program (ESMAP).

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