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Alexander Pitt
Malta’s rapid growth over the past two decades has gone hand in hand with a significant expansion of the population. This has created bottlenecks in infrastructure, which will need to be addressed. While capacity in energy and water supply is currently adequate, investments in wastewater treatment and solid waste disposal are needed, as well as measures to reduce greenhouse gas emissions. In transport, need for action to ease congestion is urgent, while the costs for a sustainable solution are high and implementation would take time.
International Monetary Fund. Asia and Pacific Dept
Hong Kong SAR’s economy is on a path of gradual but uneven recovery following a protracted period of shocks. While the unemployment rate has declined to historical lows, employment loss has been sizable and domestic demand has remained weak amid tight financial conditions and property market downturn, both locally and in Mainland China. The territory’s integration with Mainland China, including in the context of the Greater Bay Area (GBA) initiative, has significantly increased in recent years, but rising regional competition has put pressure on some of its traditional growth engines, prompting the authorities to pursue new sources of growth, including from innovative, technology-driven sectors.
Kelsee Bratley
and
Alexis Meyer-Cirkel
This paper presents a comprehensive analysis of the agricultural land coverage in Mozambique by harnessing advanced remote sensing technologies and draws on successful agricultural development examples to propose strategic pathways for Mozambique. The study leverages Sentinel-2 satellite imagery coupled with a machine learning algorithm to accurately map and assess the country's agricultural land, revealing that agriculture accounts for only 12 percent of Mozambique's land area. By examining the agricultural transformation or “green revolution” that some countries have experienced, it is possible to distill regularities and necessary conditions, which can then be compared to the state-of-affairs in Mozambique. This study not only offers a model of how emerging technologies like remote sensing can inform agricultural state of affairs, it also provides important insights into which concrete bottlenecks are likely to be holding back Mozambique’s agricultural development.
Christine J. Richmond
,
Katja Funke
,
Henk Jan Reinders
,
Sunalika Singh
, and
Karlygash Zhunussova
Sierra Leone faces important development challenges. This includes dealing with the impacts of climate change such as rising temperatures, more frequent extreme hot days, and increasingly erratic rainfall patterns, with intensified single-day precipitation events. This is especially important given the country’s strong dependence on agriculture and hydropower. Climate change also requires improved Disaster Risk Management (DRM) and more forward-looking risk assessments. On the mitigation side, competing development needs have led to rapid urbanization and deforestation requiring a more integrated approach to land policy, planning, and forest protection. The country also needs substantial investments in its electricity, water, and waste sectors but private investment is lacking. The mission reviewed the current fiscal policies supporting climate action and provided recommendations to support the long-term climate resilience in Sierra Leone, while aligning with its overall development objectives.
International Monetary Fund. Fiscal Affairs Dept.
The mission estimates that making substantial progress in critical SDG sectors in Uganda would require additional annual spending of about 18.4 percent of gross domestic product (GDP) by 2030. Relative to low-income developing countries (LIDCs), additional spending in Uganda is higher in the social sectors and lower in the infrastructure sectors (Figure). Overall, Uganda’s additional spending is above the median LIDC and similar to the median Sub-Saharan African (SSA) country. (This analysis is an assessment of the spending to achieve a high performance in selected SDGs in Uganda and does not include an examination of options to finance the spending needs.) • Health—expanding the supply of medical staff. Total health care spending is low (4.2 percent of GDP) relative to peers, and there is substantial room to increase the efficiency of spending: health outcomes are below those of several other countries with similar spending. Overall, we estimate that total health care spending would have to gradually increase by an additional 7.4 percent of GDP in 2030 relative to today’s spending, to deliver superior health care outcomes. A major contributor to the additional cost is the need to substantially increase the supply of doctors—more than 16-fold—and to nearly triple the number of other health personnel. • Education—strengthening both quality and quantity of services. Uganda’s young population—60 percent are school-aged, a higher share than in the East African Community (EAC) and LIDC peers—combined with a relatively low enrollment rate, means that the country needs to invest in getting its children into schools. However, just as important is improving the currently low level of educational quality. Toward this goal, class sizes need to fall by hiring more teachers, thus bringing the student-teacher ratio down from 28 to 19. Public spending, currently well below LIDC and EAC averages, would need to triple as a share of GDP to help deliver on these goals. We estimate that Uganda’s total expenditures on education would need to increase by an additional 6.7 percent of GDP from its current level of 7.1 percent of GDP. • Water and sanitation—aiming at safely managed water and sanitation for all. Uganda is below regional and income-group peers in water and sanitation standards. In particular, while there has been progress in water provision, sanitation services have hardly improved in the past two decades, and its provision is lower than most countries in the subregion. Closing the water and sanitation gaps will require an additional annual spending of 1.1 percent of GDP, including maintenance costs to counteract depreciation. The bulk of the cost burden comes from safely managed water in rural areas, given the relatively high unit cost of such facilities and the large rural population unserved by this type of facility. • Electricity—investing in transmission and distribution networks to increase access. The vast majority of Uganda’s electricity is generated by renewable energy (hydropower). Overall electricity consumption per capita, at 83kilowatt-hour (kWh), strongly lags LIDCs and is below what would be expected given its level of GDP per capita. Transmission and distribution networks need to catch up with installed capacity, which, at 1,347 megawatts (MW), is far ahead of peak demand at 793 MW. We estimate that expanding current access, serving the future population through 2030, and increasing consumption in line with economic growth, will require annual investments reaching 0.4 percent of GDP in 2030. • Roads—gradually increasing rural access. Raising access to roads from its current level of 53 percent of the rural population to 75 percent by 2030 will require about 20.4 thousand additional kilometers of all-weather roads. While rural road access is higher than LIDCs, road quality lags subregional peers, thus the expansion of access will also need to include upgrading of roads in that are in poor condition. We estimate that this will require annual investments of 2.8 percent of GDP in 2030.
International Monetary Fund. Fiscal Affairs Dept.
Sierra Leone faces important development challenges. This includes dealing with the impacts of climate change such as rising temperatures, more frequent extreme hot days, and increasingly erratic rainfall patterns, with intensified single-day precipitation events. This is especially important given the country’s strong dependence on agriculture and hydropower. Climate change also requires improved Disaster Risk Management (DRM) and more forward-looking risk assessments. On the mitigation side, competing development needs have led to rapid urbanization and deforestation requiring a more integrated approach to land policy, planning, and forest protection. The country also needs substantial investments in its electricity, water, and waste sectors but private investment is lacking. The mission reviewed the current fiscal policies supporting climate action and provided recommendations to support the long-term climate resilience in Sierra Leone, while aligning with its overall development objectives.
Andinet Woldemichael
and
Iyke Maduako
Housing represents the largest asset and liability, in the form of mortgages, on most national balance sheet. For most households it is their largest investment, and when mortgages are required also represents the largest component of household debt. It is also directly tied to financial markets, both the mortgage market and insurance sector. Although many countries have a rich set of housing censuses and statistics, others have large data gap in this area and therefore struggle to formulate effective policies. This paper proposes an approach to construct a global census of residential buildings using opensource satellite data. Such a layer can be used to assess the extent these buildings are exposed to climate hazards and how their production and consumption, in turn, affect the climate. The approach we propose could be scaled globally, combining existing layers of building footprints, climate and socioeconomic data. It adds to the ongoing effort of compiling spatially explicit and granular climate indicators to better inform policies. As a case study, we compute selected indicators and estimate the extent of residential properties exposure to riverine flood risk for Kenya.
International Monetary Fund. Asia and Pacific Dept
This Selected Issues paper discusses sea-level rise impacts and adaptation in Vanuatu. Sea-level will continue to increase during this century directly caused by global warming and melting of terrestrial ice. While Vanuatu cannot control global sea-level, it can manage how it affects the country by adapting. Staff analysis estimates the cost of sea-level rise under alternative adaptation strategies: (1) no-adaptation; (2) protection; and (3) planned retreat. Such analysis can help the government to identify trade-offs between efficiency and equity, and choose according to the preferences of the population, consistent with public finance objectives. Preliminary results show that complete protection of coastal areas in Vanuatu is costly while planned retreat from the coastline is the least-cost adaptation response. However, given the mountainous nature of the islands, only small areas of the main population centers of Port Vila and Luganville are at risk of being permanently inundated even with very high sea level rise.
Sidra Rehman
and
Laura Jaramillo
Do weather shocks worsen conflict around the world? To answer this question, this paper uses an innovative dataset created by using georeferencing to match weather and conflict data at the subregional level on a monthly frequency across 168 countries over 2013 to 2022.The empirical results show that higher temperature exacerbate conflict where it already exists. Estimations indicate that, in a high emissions scenario and all else equal, by 2060 conflict deaths as a share of the population for a median country facing conflict could increase by 12.3 percent due to rising temperatures. These findings underscore the importance of integrating climate resilience into peace and security efforts and designing climate adaptation policies that support conflict prevention and resolution.