Sunday, July 21, 2013

World Development Report 2014 will focus on risk

The World Bank's World Development Report 2014, due out later this year, will be subtitled Managing Risk for Development.

Everyone who runs a country or a business has to deal constantly with risk. If you think risk is only a problem for gamblers, think again.

Attempts to evade risk, for example by detailed central planning of an economy, have often increased, instead of decreased, risk.

Risk needs to be recognised. It needs to be investigated, analysed and understood. Strategies then must be devised for managing it.

The World Development Report 2014 promises to show how this can be done, not only to "reduce the negative impacts of shocks and hazards", but also "to enable people to pursue new opportunities for growth and prosperity."

We shall see.

Watch this space.