Posts tagged World Bank
The World Bank Group (WBG) has announced it will set up a new office in Singapore, its first outside Washington DC. It said the new branch will employ over 70 people within three years, including director Bert Hofman, the bank’s current Chief Economist for the East Asia region.
The WBG office’s main purpose is to advance private-sector investment for infrastructure projects in East Asia’s developing regions, with ready access to Singapore’s large commercial banks and established companies. Channel NewsAsia reports it will also provide services through its Multilateral Investment Guarantee Agency (MIGA), which has experience with complex infrastructure projects and supports investments into and from Asia “by issuing risk guarantees to equity sponsors, banks, funds, and other financial institutions.”
source & article: Channel NewsAsia
Indonesia could exceed projections and grow up to 6.4% this year, says another banking report, while adding its voice to cautions that economic reforms must accelerate in order to do so. The country won’t see super growth of 8-9% without infrastructure and manufacturing industry development, continued land reform and increased government spending.
This report comes from UK-based Standard Chartered Bank (StanChart) and is the latest in a string of calls for Indonesia to improve its economic foundations to achieve its potential. Only 5% of US$145 billion in infrastructure projects earmarked for President Susilo Bambang Yudhoyono’s first term (2005-09) have been realized, and government spending was a deficit of 1.5% of GDP, less than the 1.8% or $14.5 billion. Even that is an improvement on 2010′s 0.6% despite a budget target of 2.1%, according to the Jakarta Globe.
The World Bank agreed with StanChart’s claims, keeping its growth projections at 6.5% for this year and next, and adding that “poor infrastructure was “one of the biggest obstacles to firms operating in Indonesia.” The Bank’s chief economist Justin Yifu Lin said Indonesia’s destiny was in Indonesians’ hands, and that with more government discipline it could replicate other Asian countries’ emergence from agricultural to developed economies and join the world’s top 10.
source & article: the Jakarta Globe