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PURPOSE

Toward ensuring that all invitees have the technical understanding necessary to participate in the BBW@MC event, the following document clarifies and expounds jargon relevant to the Beyond Bretton Woods initiative. Included are terms related to climate change, multinational institutions, and the international financial architecture.

The document is organized alphabetically for ease of use.

LEXICON

Accra Agenda – The "Accra Agenda for Action" (AAA) is an international framework aimed at enhancing the implementation of the Paris Declaration, focusing on country ownership of development policies, effective and inclusive partnerships, and accountable development results. It emphasizes the need for developing countries to lead their development agendas, supported by donor nations through predictable aid flows and a commitment to shared principles.

Sources –

 “ACCRA.” Policy Commons

 “Accra Agenda for Actions.” Appropedia

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Adaptation – Adaptation in the context of climate change is a broad term, covering policy and lifestyle adjustments aimed at making life under changing climatic conditions more bearable. Rather than addressing the causes of climate change directly, adaptation seeks to change human systems (most typically food, energy, infrastructure, and financial systems) to make them more resilient to the effects of climate change. 

Experts debate whether mitigation or adaptation is the most effective response to climate change. Some believe that we must prioritize adaptation given the inevitability of at least some climate change. Others argue that adaptation strategies shift responsibility away from polluters. Most contend that both are equally important, though adaptation is considered a standard and constant development challenge.

Sources –

“Climate Change 2022: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change – Appendix II.” IPCC 2022

"Adaptation Gap Report 2020." UNEP

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African Development Bank Group – The African Development Bank group is an international development finance institution composed of the African Development Bank, the African Development Fund, and the Nigeria Trust Fund. Since 2013, its strategy has been focused on improving the quality of life in Africa and its sustainable, clean electrification.

Sources – 

“Mission and Strategy.” African Development Bank Group

“African Development Bank.” Green Climate Fund

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Agroecology - This is a form of sustainable farming that uses nature. More specifically, it is a holistic approach that applies ecological and social concepts to design and management of sustainable agriculture and food systems. It optimizes relationships between plants, animals and humans while addressing the need for socially equitable food practices. This is a bottom-up process helping deliver contextualized solutions to local problems. Broadly speaking, agroecology shows how to sustainably grow food systems and is just one small piece of the global sustainable development puzzle.

Sources -

“What is Agroecology?” - Food and Agriculture Organization of the UN

“Agroecology - Sustainable Farming.” - Soil Association

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Alternative measure to GDP – Some economists advocate for alternative methods to GDP to measure growth and development progress . GDP fails to capture externalities of production, the well-being of a population, human capital, distribution of wealth, and other factors that impact growth and progress in a country. To address these shortcomings, some alternative measures of economic and social health include the Human Development Index, the Better Life Index, and the Genuine Progress Indicator.

Sources –

“Beyond GDP: Three Other Ways to Measure Economic Health.” – Federal Reserve Bank of St. Louis

“GDP Is Not a Measure of Human Well-Being.” – Harvard Business Review

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Anti-Money Laundering (AML) - Refers to a set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. AML measures involve the detection and reporting of suspicious financial activities, with the aim of preventing money laundering, which is the process of making large amounts of money generated by criminal activity appear to have come from a legitimate source. Financial institutions and other regulated entities are required to implement AML compliance programs that include customer due diligence, transaction monitoring, and reporting of suspicious activities to relevant authorities. These measures help in combating financial crimes, including the financing of terrorism, fraud, and tax evasion, by increasing transparency and accountability in financial transactions. Today, AML is being fought by leading technologies such as AI and Machine learning. There is hope development of these technologies can diminish criminal activity globally.

Sources –

“Anti Money Laundering.” FINRA

“Anti Money Laundering: What it is and what it does.” SAS 

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AOSIS (Alliance of Small Island States) — Established in 1990, the AOSIS is a coalition advocating for the interests of 39 small island countries in the context of environmental policy and climate change. These nations affected by the effects of climate change leverage AOSIS as a platform to amplify their voices on the global stage. The alliance actively participates in various international forums, including the United Nations, to ensure that its member states’ vulnerabilities and needs are integrated into international environmental and climate policy decisions. By doing so, AOSIS seeks globally beneficial policies that are responsive to the challenges faced by small island states.

Sources —

"About AOSIS."  AOSIS

"Bureau of the AOSIS."  AOSIS

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Autarky – Autarky is an economic system in which a country attempts to minimize trade and dependence on the outside world. It aims to move a country towards economic self sufficiency. It involves finding internally manufactured substitutes for imported goods, high tariff barriers, and restrictions on capital flows. 

North Korea is probably the best known example of a nation practicing autarky today. It restricts almost all imports and attempts to meet all demand through domestic manufacturing. This system has not worked well, largely due to corruption and militarization.

Sources –

“autarky.” Britannica Money

“The New Age of Autarky.” Foreign Affairs

Bank for International Settlements – The Bank for International Settlements (BIS) is an international financial institution which serves as a reserve bank for member states’ central banks. It helps foster international financial co-operation and co-ordinate member states’ responses to financial crises.

Sources – 

“About BIS.” Bank for International Settlements

“Bank for International Settlements.” World Economic Forum

Belt and Road Initiative – Sometimes referred to as the New Silk Road, the Belt and Road Initiative started in 2013 and is China’s investment plan to expand critical infrastructure to link Europe and East Asia. This initiative has now impacted over 150 countries around the world including, Africa, Latin America and Oceania.

Sources – 

“China’s Massive Belt and Road Initiative.” Council on Foreign Relations

“Belt and Road Initiative.”  The World Bank

Blended Finance – Financing that is obtained from different spheres; each financing source assumes a different risk-reward profile. For example, a “blend” of public and private capital may be used to finance an infrastructure project in an emerging market, and the public sector (e.g. IMF, World Bank) may assume excess risk relative to the expected rate of return. For instance, a lender’s risk-return profile depends on its place in the capital structure (risk) and the interest rate received (return). To promote investment from the private sector, public sector lenders can assume excess risk by subordinating their debt or agreeing to concessional interest rates.

Sources – 

“What is Blended Finance, and Why it Matters.” Bank of America

“How Blended Finance Can Support Climate Transition in Emerging and Developing Economies.” International Monetary Fund

“Blended Finance.” Convergence

Brady Bonds – A Brady bond refers to a transaction structure used in the 1980s–1990s as part of a plan to restructure distressed debts in developing countries. These developing countries included Mexico, Costa Rica, Venezuela and other South American Nations. The principal amount was usually collateralized by specially issued US Treasury 30-year zero-coupon bonds, purchased by the debtor country using proceeds from loans given by the IMF or the World Bank, and the country’s own foreign currency reserves.

There was also a rolling interest payment guarantee, covering 12–24 months of interest payments using securities of at least double A-rated credit quality. Under Brady exchanges, creditors accepted face value (FV) and net-present value (NPV) haircuts in exchange for greater assurances about debtors’ capacity to repay, while debtors used the debt relief provided to restore debt sustainability and growth.

Sources–

“Brady Bonds and the Potential for Debt Restructuring.”  Boston University

“How the Brady Plan Delivered on Debt Relief.” IMF Working Papers 2023

“The Brady Plan.” CATO

Bretton Woods Treaty – The Bretton Woods Treaty was an agreement between forty four nations which was signed at Bretton Woods, New Hampshire in 1944. The Allies of World War Two sought to prevent a war of similar scale from ever breaking out again, and believed that increasing international trade and codependency between countries would help do so.

Thus, they sought to guarantee international financial stability and open flows of trade and capital by linking world currencies to the gold standard, via convertibility to the US dollar. They also established The World Bank and IMF.

This currency arrangement  came to an end in 1971, when President Richard Nixon ended the dollar’s convertibility to gold, thus removing the central mechanism of the Bretton Woods system.

Sources –

“Creation of the Bretton Woods System.” Federal Reserve

“Bretton Woods-GATT, 1941–1947.” State Department Office of the Historian

BRICS-Pay  – BRICS-Pay is a blockchain-based digital payments platform being developed by the BRICS (Brazil, Russia, India, China, and South Africa) economic bloc. BRICS-Pay aims to change the volume of trade and the volume of financial transactions between the BRICS members by making payments easier. Specifically, the platform aims to facilitate digital payments between the different countries, allowing businesses and consumers to securely and seamlessly make and receive payments in their local currency. The platform is designed to reduce the cost and complexity of international payments, while also providing a secure and reliable way to pay for goods and services.

Sources –

“About BRICS PAY project.” BRICS Business Council

“BRICS Pay: The latest development & integration updates.” Modern Diplomacy

Bridgetown Initiative – The Bridgetown Initiative, named after the capital of Barbados where it was first proposed, is a project to reform global development financing to better meet the challenges posed by climate change. It aims to allow less developed nations to borrow without interest rate penalties when faced with acute climate disasters. It also hopes to encourage an additional $1 trillion investment in climate mitigation efforts by low income nations from multilateral development banks. Finally, it would establish new mechanisms to provide additional funding for climate adaptation projects.

Sources –

"The Bridgetown Initiative: here's everything you need to know." World Economic Forum

“Explainer: What is the 'Bridgetown Initiative' asking for at Paris financial summit?” Reuters

Capacity Payments – This term refers to the payments made by an energy user (such as a utility or large industrial user) for the right to access a certain amount of electrical generation capacity from a power supplier. These payments are distinct from the charges for the actual energy consumed. The primary purpose of capacity payments is to ensure that power suppliers maintain sufficient generation capacity to meet peak demand, thus enhancing grid reliability and preventing blackouts. While these payments can lead to higher energy costs for consumers, they also serve as an incentive to reduce energy consumption and to consider alternative solutions like on-site energy production or energy efficiency measures. Capacity payments play a crucial role in maintaining a balance between energy supply and demand, especially in regions with volatile or rapidly growing energy needs.

Sources —

“Capacity Payments.” Carbon Collective

“Capacity Payment.” Energy Knowledge Base

Capture (Carbon) – A shorthand term for carbon capture, and usually also implying “Carbon Capture and Storage”. This refers to technologies which extract atmospheric carbon dioxide and store it in forms which do not allow the gas to affect global temperatures. So far, most carbon capture technologies remain theoretical or in very early stages of development. In the future, carbon capture and storage may be a solid supplement to other climate mitigation efforts.

Sources –

“Carbon Capture.” MIT Climate Portal

“Why Are Progressives Wary of Technologies That Pull Carbon From the Air?” Rolling Stone

Capture – In the context of governance and decision-making processes, "capture" refers to a situation where regulatory agencies or government bodies are influenced or controlled by the very industries they are supposed to regulate, leading to decisions that favor the interests of these industries over the public interest. This term is often associated with the oil and gas industry's influence, where their power and resources can shape policies, regulations, and actions to their advantage, potentially at the expense of environmental protections and sustainable practices. However, many industries can also have significant activity relating to capture, beyond just oil and gas. For instance, the defense industry can advocate for certain geopolitical actions, or companies broadly can advocate for political interventions that influence returns to labor versus capital.

Sources –

“The role of incumbents in energy transitions” Science Direct

“The Rule of Capture” University of Cincinnati

Carbon Reserve – There are certain naturally occurring formations and associated processes by which carbon is trapped, fixed, and otherwise neutralized. The carbon trapped within such formations does not contribute to the greenhouse effect and is referred to as the carbon reserve.

A prime example is the forest carbon reserve, wherein atmospheric carbon is trapped by the cellular respiration of trees and the other abundant plant life in forests, which “breathes” in carbon dioxide and releases oxygen. The ocean also contains a large carbon reserve. Preserving these reserves is crucial for the planet’s wellbeing. The destruction of forests can be especially deleterious, as carbon trapped in the cells of plant life is released into the atmosphere through decomposition.

Sources –

“Forest Carbon Reserve.” Sierra Club

“Quantifying the Ocean Carbon Sink.” National Oceanic and Atmospheric Administration

Central Banks – Central banks, also known as Reserve Banks, are institutions within countries which:

1. Act as lenders of last resort in case of financial panic;

2. Control the supply of the country’s currency;

3. Set internal interest rates and monetary policy, and manage rates of inflation;

4. Exercise regulatory oversight over financial institutions.

Examples include the United States’ own Federal Reserve, the German Bundesbank, the Bank of England, the Reserve Bank of India, and the People’s Bank of China. An interesting and unique case is the European Central Bank, which controls the supply of the Euro, a transnational currency.

Sources –

“Evolution of Central Banking?: De Nederlandsche Bank 1814–1852.” Roland Uittenbogaard

“Central Banking Systems Compared: The ECB, The Pre-Euro Bundesbank and the Federal Reserve System” Emmanuel Apel, p. 14

Central Bank Digital Currencies – Central bank digital currencies are units of currency that act as debits against the central bank of a nation. Whereas most digital currency is considered a debit against the balance sheet of the private bank in which it is held, a CBDS would act as a debit against the central bank itself. Thus, the currency would be held directly within the accounts of the central bank. This is distinct from cryptocurrency, which is a decentralized currency not affiliated with the national central bank. A central bank digital currency would rather be another way of holding units of an already existing national currency.

Sources –

“Central Bank Digital Currency.” Federal Reserve

“What is a Central Bank Digital Currency?” Investopedia

Central Bank Liquidity Swaps – In response to the severe liquidity shortage in international financial markets, particularly in US dollars, caused by the 2008 financial crisis, the Federal Reserve implemented liquidity swaps lines with central banks in 14 major economies like Eurozone, United Kingdom, Japan, Canada, and Singapore. The central bank liquidity swap involves the exchange of currencies between these banks, where two parties agree to exchange currencies of equal value for a set period of time. The Fed supplied dollars and received an equivalent value of foreign currency. At the time of the agreement, a market-based exchange rate is applied to exchange foreign currency for US dollars. That same exchange rate is then applied when the transaction matures. Liquidity swaps are important to alleviate strains in the xglobal financial systems by providing an additional source of liquidity.

Sources –

“Credit and Liquidity Programs and Balance Sheets.” Federal Reserve

“Central Bank Swap Arrangements.” New York Fed

Central Bank Reserves – Central bank reserves are pools of cash or highly liquid assets held in reserve by national central banks. They are the backstop of hard currency which central banks can use to inject liquidity into the economy in times of crisis.

Sources –

“What are central bank reserves for?” Official Monetary and Financial Institutions Forum

“Understanding the central bank balance sheet.” Center for Central Banking Studies

China Development Bank – The China Development Bank (CDB) is one of the key policy banks in the People's Republic of China. Founded in 1994, the CDB plays a crucial role in supporting China's economic development policies by providing finance to major national projects and development strategies. Unlike commercial banks, policy banks like the CDB are tasked with financing economic and social development projects in line with the government's objectives. The bank operates under the direct jurisdiction of the State Council, China's chief administrative authority, and it plays a pivotal role in China's financial system and its efforts to exert influence globally through development financing. The CDB's activities include providing loans for projects related to urban development, energy, transportation, agriculture, environmental protection, and international cooperation.

Sources –

“China Development Bank.” Wikipedia

“China Development Bank.” CDB

CHIPS payment system – The “Clearing House Interbank Payments System” allows large interbank transactions in the U.S. to clear. This is a privately operated bank owned U.S. dollar based transfer system. This real-time system is used to transmit and settle high value U.S. dollar payments among participating banks. The purpose of this system was to simplify and expedite the interbank payment process. Fedwire is their largest competitor, but CHIPS is preferred due to their affordability. The average payment transfer on CHIPS is over $3 million.

Sources –

“What is CHIPS?” Investopedia

“CHIPS.” Modern Treasury

CIPS - Launched by the People's Bank of China (PBOC) in October 2015, CIPS (Cross-Border Interbank Payment System) aims to provide a network for the global clearing and settlement of RMB transactions, improving the efficiency and safety of cross-border payments involving the Chinese currency. CIPS operates by connecting participating financial institutions, including banks and financial organizations worldwide, allowing them to process cross-border RMB payments and settlements directly. This system not only enhances the efficiency of RMB transactions but also promotes the use of the RMB in global finance by providing a robust infrastructure that competes with other major payment systems like SWIFT, which facilitates transactions in multiple currencies around the world.

Sources –

“Cross-Border Interbank Payment System.” Wikipedia

“RMB Cross-Border Interbank Payment System.” Mizuho

Circular Debt –  Circular debt is a public debt that arises from the cascade of unpaid government subsidies. Circular debt is a chain reaction of debt that afflicts the entire economic system of an industry, country, etc. Specifically, circular debt has crippled the energy sector in Pakistan. The cycle begins when one party, such as the government or consumers, fails to pay its dues to another party in the supply chain. As a result, the unpaid bills accumulate, leading to financial strain and operational challenges for the entities involved. The continuous cycle of unpaid debts hampers the financial stability of the entire system, impacting the efficiency and sustainability of essential services like electricity supply.

Sources –

 “Circular Debt.” Pakistan Today

“Lights out: ‘Circular debt’ cripples Pakistan’s power sector.” Al Jazeera

Circular Economy – The circular economy is an idealized model of an economy based on the recycling, reuse, and sharing of resources, goods, and products. Its aim is to minimize the waste of manufacturing inputs by keeping products in the economy for as long as possible through repurposing, sharing, and refurbishment. It is one of the most prominent models for a sustainably developed economy.

While no national economy has yet reached the status of a circular economy, it remains an important framework for understanding what a sustainable economic future might look like.

Sources –

“Circular economy: definition, importance and benefits.” European Parliament

“Circular Economies.” Economist Impact

Civil Society Organizations – Civil Society Organizations are non-governmental, nonprofit, and voluntary organizations within countries which support civic processes and participation. The term is an umbrella term for a wide range of organizations, ranging from nonprofit news media, to local community organizations, to religious denominations, to NGOs and charities. While political parties themselves are usually not thought of as Civil Society Organizations, many Civil Society Organizations support particular parties or political stances themselves.

Sources –

“About us.” Civil Society Unit, Outreach Division, United Nations Department of Global Communications

“Civil society: An essential ingredient of development.” Brookings Institution

Climate Finance Readiness – Climate finance readiness seeks to integrate and align climate resilient strategies into a country's economic development agendas and financial architectures. These strategies set out to enhance a country’s ability to access, allocate, and spend funds related to climate impacts, as well as monitor and report the impacts of their actions. Climate finance readiness takes the unique national economic priorities and geophysical circumstances of the particular country into account. Developing countries are increasingly incorporating climate change and financial considerations into their national development strategies in order to curb emissions and minimize their vulnerability to climate change.

Sources –

“Climate Finance Readiness.” CBD

“Climate Finance Readiness Preliminary approach and insights from efforts in Southern Africa.” UNFCCC

Climate Hypocrite – Used in the discourse on climate change to denote a discrepancy between one's stated beliefs or commitments regarding climate change and their actual behavior. This concept is not just confined to individuals but extends to governments, organizations, and institutions that publicly endorse climate-friendly policies while maintaining practices that contribute to carbon-intensive industries. It involves both criticisms of personal lifestyle choices and broader political structures. The term is also used in various contexts to challenge the credibility of climate advocates and scientists especially when their personal or institutional actions are perceived as inconsistent with their advocacy for emissions reduction or climate resilience.

Sources –

“Climate Hypocrisies.”  University Of Manchester

“Climate Hypocrisy and Environmental Integrity.” Journal of Social Philosophy

Club of Rome Report (1972) – An international team of researchers at the Massachusetts Institute of Technology published a report outlining their projections of the state of the earth as a result of the rate of human activity in 1970. The report focused on five main anthropogenic pressure points on climactic and planetary systems: increases in population, agricultural production, nonrenewable resource depletion, industrial output, and pollution generation.

The present level of human activity and environmental depletion has surpassed the projected limits, but the book’s conclusions about needing to alter the methods of human activity and employ new technology to combat the climate crisis are still applicable today.

Sources –

“The Limits to Growth - Club of Rome.” The Club of Rome

“Greenpeace International.” Greenpeace

CO2 ppm – CO2 ppm stands for “parts per million of Carbon Dioxide.” CO2 is one of the most critical of the seven greenhouse gasses and accounts for a significant fraction of the causes of global warming. Parts per million is a measurement of the mass of carbon dioxide present per million units of mass of the atmosphere. Currently, this measurement sits at about 421 ppm globally. This represents an increase of nearly 33% since records began in 1958. 

Sources –

“Climate Change: Atmospheric Carbon Dioxide.” Climate.gov

“Summary for Policymakers.” Intergovernmental Panel on Climate Change

Coalition of Finance Ministers for Climate Action - The Coalition of Finance Ministers for Climate Action is an alliance of fiscal and economic policy makers from over 90 countries. Founded on the basis of the 6 Helsinki principles, this coalition promotes national climate action through fiscal policy. The main focus of this coalition is to enact a just  transition into low-carbon resilient production. They emphasize climate action as an investment opportunity with the capability of creating millions of jobs.

Historically, this group was founded in 2019 by governments from 26 countries after the 2018 annual meeting of the WBG and IMF fund.

Sources -

"About The Coalition." Coalition of Finance Ministers for Climate Action

"Coalition of Finance Ministers for Climate Action." London School of Economics

Common Framework – The “Common Framework” is a set of strategies and approaches to sovereign debt restructuring that was launched by the G20 nations in 2020 in response to financial market instability caused by the COVID pandemic. It aims to expand the stakeholders in negotiations to include non-Paris Club affiliated lenders.

Sources –

“The G20’s Common Framework.” S&P Global

“The Common Framework & Its Discontents.” Council on Foreign Relations

Conference of Parties (COP) and COP28 – The Conference of Parties refers to the Supreme Governing Body of the Kyoto Protocol and of the Paris Accords. It is composed of representatives of the 192 signatory nations. They hold annual conferences to discuss progress on the implementation of goals and targets outlined in the treaties. COP28 is the 28th such conference and was held in Dubai in December of 2023. COP29 will be held in Baku, Azerbaijan in November 2024.

Sources –

“Conference of the Parties (COP).” United Nations Framework Convention on Climate Change

“What is COP?” McKinsey & Company

Corporate Social Responsibility – This term, also referred to as corporate citizenship, refers to the act of considering the environmental and social impacts that corporations and companies leave behind. Corporate Social Responsibility (CSR) is a holistic approach to operating a business, and it encourages the pursuit of an equilibrium of social responsibility and business interests. In particular, CSR focuses on environmental management, eco-efficiency, responsible sourcing, labor standards, social equity, human rights, good governance, and anti-corruption practices.

CSR is typically self-regulated, and it may take the form of various initiatives or internal strategies, which are often communicated to stakeholders. Additionally, while there are many forms of social responsibility, CSR typically contributes to the creation of value for a corporation as well. CSR is increasingly seen as a tool used by conservative governments to preempt stronger public regulatory measures being applied to private corporate institutions.

Sources –

“What is Corporate Social Responsibility? 4 Types.” Harvard Business School

“What is CSR?” United Nations Industrial Development Organization

Cryptocurrencies – A digital currency exchange that is decentralized, or not backed by any tangible value. Instead, transactions are verified and recorded using public ledgers, known as the blockchain. Individuals can send crypto from their digital wallets to others’ digital wallets as encrypted, secure transactions documented on the blockchain.

Sources –

“What Are Cryptocurrencies like Bitcoin, Ethereum and Ripple?” International Monetary Fund

“Cryptocurrencies, Digital Dollars, and the Future of Money” Council on Foreign Relations

Damage and Loss – This term refers to measurable financial and material losses as a result of climate change. In particular, this term is used in climate negotiations to refer to the inevitable losses that all nations, but in particular those of the Global South, will suffer due to climate change despite mitigation and adaptation efforts. Proposals surrounding the issue include that rich countries (historically responsible for the majority of climate change) provide funding to less developed countries (which will bear the brunt of climate change) to cover the losses and damages suffered by the latter.

Sources –
“What Is "Loss and Damage" from Climate Change? 8 Key Questions, Answered.” World Resources Institute

“Loss and damage: A moral imperative to act.” United Nations

Debt for Nature Swaps (DNS) - Debt for Nature Swaps provide developing countries with vital ecosystems an opportunity to lower their debt by investing in sustainable infrastructure or nature conservation efforts. These swaps allow for countries to reduce their indebtedness while continuing development.

Some nations who have already signed agreements are Barbados, Belize, and Seychelles. Ultimately, it gives the nations with valuable ecosystems an opportunity to relieve monetary struggles for investing in the environment.

Sources -

"Debt for Nature Swaps." News Items

"Swapping Debt for Climate or Nature Pledges Can Help Fund Resilience." IMF

Debt Service Suspension Initiative (DSSI) – The DSSI was an eight-month official bilateral sovereign debt suspension initiative supported by the World Bank and the IMF to provide additional resources to countries severely affected by the COVID-19 pandemic. From May 2020 to December 2021, the DSSI allowed 73 IDA countries, 48 of which participated in the initiative,  to suspend principal or interest payments on their debts. Once the eight months passed,  countries had a one-year grace period until they had to pay the deferred principal and interest over the next three years. This deferral is net present value-neutral and does not reduce the total payment debtors will make to participating creditors. A shortcoming of the DSSI is the lack of private-sector participation in the program. Following the DSSI, the G20 devised the Common Framework Beyond the DSSI. However, it was ultimately deemed unsuccessful given the low participation of debtor countries. 

Sources —

“Debt Service Suspension Initiative: Q&As.” WBG

“The Limits of the G20's Debt Service Suspension Initiative.” Yale University

Degrowth – Degrowth is an idea and loose political and economic movement that seeks to change global society at both the institutional and individual levels. Degrowth critiques the modern global capitalist system that pursues growth at all costs, including human exploitation and environmental destruction. Degrowth challenges GDP growth as a proxy for human and economic development. Instead, degrowth advocates prioritizing social and ecological well-being, including redistribution, reducing the size of the global economy, shifting values to be more collaborative.

Sources —

“Degrowth can work — here’s how science can help.” Nature

“Degrowth.” Degrowth

Dodd-Frank Act – Legislation passed after the Great Financial Crisis of 2008, which de risked the financial sector by increasing bank regulation and oversight. Broadly, the bill addressed predatory mortgage lending, speculative and proprietary lending, credit ratings, and financial stability. Arguing that regulation hurts American competitiveness, the Trump Administration reversed some components of the Dodd-Frank Act in 2018, which indirectly led to the collapse of Silicon Valley Bank in 2023.

Sources – 

“Dodd-Frank Act: What It Does, Major Components, and Criticisms.” Investopedia

“What Is the Dodd-Frank Act?” Council on Foreign Relations

Deregulation - Deregulation refers to the reduction or elimination of government regulations and restrictions in a particular industry, usually with the objective of increasing efficiency and promoting competition in the market. It's a policy direction opposite to regulation, where the government imposes rules and oversight.

Sources -

“Deregulation: Definition, History, Effects and Purpose.” Investopedia

“Deregulation.” CFI

Doughnut Economics – The Doughnut of social and planetary boundaries is a model that depicts the components of human prosperity in the 21st century. Created by Kate Raworth, the Doughnut theory encourages economists to consider economic growth not only by GDP but also in conjunction with the human impact on the planet and progress towards increasing equality in social institutions. The following is how Kate Raworth describes her model:

“The Doughnut consists of two concentric rings: a social foundation, to ensure that no one is left falling short on life’s essentials, and an ecological ceiling, to ensure that humanity does not collectively overshoot the planetary boundaries that protect Earth's life-supporting systems. Between these two sets of boundaries lies a doughnut-shaped space that is both ecologically safe and socially just: a space in which humanity can thrive.”

Unlike the circular economy, which is an idealized model for a sustainable economy, “Doughnut Economics” is a conceptual framework for understanding how economies function within ecological boundaries, and is not a policy recommendation or goal in and of itself.

Sources –

“Meet the doughnut: the new economic model that could help end inequality.” World Economic Forum

“What is Doughnut Economics?” Earth.org

European Investment Bank – Not to be confused with the EBRD, the European Investment Bank is an EU-affiliated international financial institution and development bank. It is owned by the EU’s member states. It uses loans, guarantees, debt restructuring, and strategic assistance to help the EU achieve its policy aims. It raises capital on international markets and its reserves are financed by EU member states. It is one of the most prominent sustainable financiers in the world.

Sources –

“Our Priorities.” EIB

"EU Bank launches ambitious new climate strategy and Energy Lending Policy." European External Action Service

Economic Policy – Economic policy is the combination of government policies that together affect national economic trends. It constitutes the government’s approach to the national economy. It includes the use of fiscal policy to influence capital investment and overall economic activity and the use of monetary policy to control the money supply and influence inflation and unemployment. Regulation, taxation, and trade policies also fall under economic policy.

Sources –

“Economic Policy.” Eur Lex; Access to European Union Law

“The Political Economy of Economic Policy.” IMF Finance and Development

European Bank for Reconstruction and Development – The European Bank for Reconstruction and Development is a multilateral development bank. Founded in 1991 to provide development assistance for the new market economies of Eastern Europe, it has since become Europe’s flagship international development bank. It has 71 public shareholders (meaning national governments), with the US as the largest single shareholder. It invests in the private sector.

Sources –

“The history of the EBRD.” EBRD

“Financial Report 2022.” EBRD

Extraction economies – This term refers to economies which are dependent upon the extraction, processing and export of natural resources. In nations like Venezuela, Saudi Arabia, and Nigeria, economic activity is heavily dependent on hydrocarbon extraction. Meanwhile, some Pacific island countries were, at one point, economically dependent on the extraction of guano, a nitrogen rich extract of seabird droppings used as fertilizer, but faced steep economic decline following the invention of processes to extract nitrogen from the atmosphere. Other economies rely on the export of particular crops or foods to sustain activity, such as Timor Leste, where coffee makes up 90% of exports.

Sources –

“The Problem With Being a Petrostate.” Foreign Policy

“Regenerative vs Extractive Economies: A Contrast in Vision.” Capital Institute

Fossil Fuel Subsidy Reform (FFSR) - FFSR refers to the process of scaling back or eliminating government subsidies provided to the fossil fuel industry. These subsidies can take various forms, including direct funding, tax breaks, price controls, and trade restrictions that artificially lower the cost of fossil fuels like coal, oil, and natural gas. The objective of FFSR is to reduce the distortion in energy markets, decrease greenhouse gas emissions, and shift investments towards renewable energy and energy efficiency. By reforming these subsidies, governments aim to promote a more sustainable and environmentally friendly energy sector, aligning with global efforts to combat climate change and achieve carbon neutrality. Additionally, FFSR often involves reallocating the financial resources saved from subsidy cuts to support social welfare programs, economic diversification, and the transition to cleaner energy sources. This initiative is targeted at members of the World Trade Organization (WTO). The UN environmental program and other environmental institutions have also backed these efforts.

Sources -

“Fossil Fuel Subsidy Reform.” WTO

“Fossil Fuel Subsidy Reform and the Just Transition.” IISD 

Fiscal Policy – “Fiscal policy” refers to policy on how much a government spends. It is under the purview of the central government, and in many developed countries operates somewhat separately from monetary policy. It is distinct from monetary policy in that it controls how much of the money supply the government uses, rather than the actual size of the money supply.

In some countries and at some times, the two sides of policy are harder to distinguish, as central banks print more money to finance fiscal expenditure at the behest of national governments. One example is Argentina throughout most of the 21st century, while in the US during the pandemic a similar arrangement allowed the Federal Government to spend large amounts of money even as the Federal Reserve cut interest rates to zero and vastly increased the money supply.

Sources –

“What is fiscal policy and how does it affect the economy?” Encyclopaedia Britannica

“Fiscal Policy: Taking and Giving Away.” IMF

Fixed and Floating exchange rates – This term refers to the two different ways in which a currency’s value is determined. Some nations mandate that their currency can be exchanged only for a fixed amount of other currencies (typically Dollars); this is a fixed exchange rate. It is also known as a peg. Often, the central banks in such countries will use their reserves of Dollars to buy and sell their own currency on international markets in order to maintain the desired exchange rate.

Other nations allow their currencies to trade on international currency markets; they allow supply and demand to determine exchange rates. Such currencies are said to “float” on the international market.

Sources –

“Floating Rate vs. Fixed Rate: What's the Difference?” Investopedia

“Exchange Rate Regimes.” IMF

Forest Risk Commodity – Forest risk commodities are agricultural products that are a significant source of deforestation. The major forest risk commodities are timber, palm oil, cattle, soy, rubber, coffee and cacao.

Sources –

“List of Sustainability Definitions.” CDP

“Forests and Forest Risk Commodities.” Friends of the Earth

Future Design Movement – The term "future design movement" isn't tied to a specific historical design movement recognized as such; rather, it's a broad and evolving concept that reflects the anticipation of future trends, technologies, and societal needs in the design world. This forward-looking approach encompasses various disciplines, including architecture, product design, graphic design, and digital design. It aims to address the future challenges and possibilities that advancements in technology, environmental concerns, and changes in human behavior may bring.

Sources –

“Future Design: Are We Ready to Become Time Rebels?” Medium

“Future Design” Ideas.repec.org

FX lines (Central Banks) – During times of market stress, private sector entities face difficulty in accessing foreign currency. Without the ability to settle transactions internationally, trade can rapidly break down. In this case, central banks swap currency amongst each other to bring foreign currency into their economies, which they then lend to domestic financial institutions, easing liquidity constraints. Such swap lines are an essential part of preventing financial contagion from spreading internationally.

Sources –

“Central bank liquidity swaps.” Federal Reserve

“Central bank swap lines and cross-border bank flows.” Bank for International Settlements Bulletin

Gasoline-Battery Paradox — The Gasoline-Battery Paradox explains the impacts of the rising demand for electric vehicles. It creates a contradiction between gasoline-powered engines and a battery-powered system where the battery’s production severely impacts the environmental and economic landscape, counteracting the benefits of moving away from gasoline-powered vehicles. Producing a battery-powered system emits 70% more carbon dioxide than building a conventional car. The demand for the raw materials to make battery-powered vehicles poses human rights and environmental risks that question the sustainability of its transition. Developments in lithium recycling and repurposing are necessary to end the risks that are involved with the manufacturing process of battery-powered cars and make electric vehicles a sustainable alternative to internal combustion engines.

Sources —

“The Battery Paradox.” GoodElectronics

“The Paradox of Lithium.” State of the Planet

“A Paradox over Electric Vehicles, Mining of Lithium for Car Batteries.” Multidisciplinary Digital Publishing Institute

GDP – The Gross Domestic Product measures the total market value of finished goods and services produced in a country in a given period of time. Components of total GDP include consumer spending, business investment, government spending, and net exports.

Sources –

“Gross Domestic Product: An Economy’s All.” International Monetary Fund

“What is GDP?” Bureau of Economic Analysis

Geoengineering – This term refers to the practice of reconstructing or manipulating the environment with the intention of combating climate change. Often categorized into carbon geoengineering and solar geoengineering, this practice seeks to mitigate carbon emissions as well as increasing the amount of solar radiation that is reflected from the Earth’s surface back into space. Both of these methods serve to reduce climate damage and decrease the planet’s temperature.

Geoengineering is still considered an alternative method for countering climate change, but evidence has recently been found that supports the usage of both solar geoengineering and carbon geoengineering. While solar radiation management is cheaper and quicker than carbon dioxide removal, it is not a perfect method. Additionally, while carbon dioxide removal strategies tend to be expensive and slow, they have great potential to benefit emission goals.

Sources –

“Geoengineering.” Harvard’s Solar Geoengineering Research Program

“The Economics of Geoengineering.” Managing Global Warning (ScienceDirect)

“What is Geoengineering?” Oxford Geoengineering Programme

GINI Coefficient - The Gini coefficient is a measure of income or wealth distribution within a population, commonly used to gauge economic inequality. It ranges from 0 to 1, where 0 represents perfect equality, meaning everyone has the same income or wealth, and 1 indicates perfect inequality, where all income or wealth is concentrated in the hands of a single individual or group.

Sources -

“Measuring Inequality: What is the Gini Coefficient.” Our World In Data

“Gini Index.” The World Bank

Glasgow Financial Alliance for Net Zero (GFANZ) – GFANZ is an alliance of financial institutions with the primary objective of facilitating the global transition to net-zero emissions by 2050. It was launched in 2021 ahead of the 26th UN Climate Change Conference of the Parties (COP26) held in Glasgow. GFANZ brought together various financial institutions, including banks, asset managers, and insurance companies, with the common goal of accelerating the transition to a net-zero economy while addressing any challenges associated with doing so and holding institutions accountable. GFANZ is organized into eight independent alliances, categorized by sectors like Paris Aligned Asset Owners and Net Zero Insurance Alliance. These alliances serve as subgroups encompassing more than 675 firms and accounting over $130trn in assets, enabling institutions to operate across a diverse spectrum of economies. However, while each member is required to formulate a plan for achieving net-zero emissions by 2030, the organization lacks the authority to actually enforce any commitments. In other words, there is no official mandate obligating members to actively reduce their carbon emissions before the year 2050.

Sources -

"About Us." GFANZ

"Biggest Financial Players Back Net Zero." UN

"What is Gfanz and is it working?" Capital Monitor

Global South – The term "Global South" refers to a concept rather than a strict geographical area, primarily used to describe countries considered to be in a position of lesser economic and political power compared to the wealthier nations of the "Global North." The Global South includes nations in Africa, Latin America, Asia, and Oceania, many of which are characterized by their developing economic status, historical colonization, and ongoing struggles with poverty, inequality, and political instability. The concept of the Global South highlights the need for international cooperation, development assistance, and equitable policies to address global inequalities and promote sustainable development across these nations.

Sources –

“Global North and Global South” Wikipedia

“What/Where is the Global South” University of Virginia

Gold Standard and Gold Convertibility – A gold standard is an economic policy by which a currency can be converted on demand into gold at a specified rate. A gold standard thus explicitly links a currency’s value to the value of gold.

Gold convertibility can help impose fiscal discipline on governments, preventing them from consistently spending more than they earn in taxes, as they can only print money in proportion to the gold reserves which they hold. However, fluctuations in the gold supply often cause inflationary or deflationary pressures, which can be very difficult to manage due to the government’s lack of control over how much currency they can print (i.e monetary policy).

Most countries maintained a gold standard between the 1800s and the mid-to-late-1900s. The gold convertibility of the dollar was a key component of the Bretton Woods system. When President Nixon suspended the gold convertibility of the dollar in 1973, the system collapsed.

Sources –

“Gold Standard: Definition, How it Works, and Examples.” Investopedia

“Nixon and the End of the Bretton Woods System, 1971–1973.” Office of the Historian, US Dept. of State

Green Bonds - Green Bonds are a category of fixed-income financial instruments specifically utilized for environmentally sustainable initiatives. While functioning similarly to traditional bonds, Green Bonds distinguish themselves by their dedication to funding projects that have positive environmental impacts. Unlike conventional bonds, the use of funds raised through Green Bonds is strictly restricted to projects that align with sustainability goals. This targeted allocation ensures that the financial resources generated from these bonds contribute directly to environmentally friendly causes. The ultimate application of these bonds is predetermined through specific restrictions, ensuring that the raised capital is directed toward a sustainable cause. However, assessing and substantiating positive impacts can be complex. This process necessitates experiments and control groups, entailing both time and financial resources. Additionally, the results may not materialize before the bonds mature, introducing a potential element of uncertainty or risk for Green Bond investors.

Sources -

"What Are Green Bonds and What Are They For?" Iberdrola

"Green Bonds: Types, How to Buy, and FAQs." Investopedia

"The Pros and Cons of Green Bonds." World Bank

Green Sovereign Bonds (SGB’s)  – Green Sovereign Bonds are a specific type of government bond, issued to finance or refinance projects that yield positive environmental impacts, such as renewable energy development and energy efficiency initiatives. Different from traditional sovereign bonds, which have a general-purpose use, SGBs are exclusively reserved for environmentally sustainable projects. The growing investor demand for SGBs reflects a larger trend towards sustainable investing. These bonds need to have standardized criteria for defining 'green' projects and transparent reporting to avoid 'greenwashing'.

Sources – “Are Sovereign Green Bonds Anything More than a Fad?”  ProMarket

“Sovereign Green Bonds: What Role Can they Play in the Transition to Net Zero.” King’s College London

G7 and member states – The G7 is a group of seven major governments that gathers to discuss important transnational issues. These include contemporary geopolitical, economic or military crises, as well as broader issues like climate change and refugee resettlement. Generally taken to represent the most powerful and important “Western” or “Liberal” governments, it consists of the USA, Japan, Canada, France, the UK, Germany and Italy. Between 1997 and 2014, Russia was a member of the forum, and it was therefore called the G8. However, following Russian support for separatists in Donetsk and Luhansk in Ukraine, the country was expelled from the G7.

Sources –

“What Does the G7 Do?” Council on Foreign Relations

“G-7 & G-20.” US Department of the Treasury

G20 and member states – The G20 is a forum representing the industrialized world and emerging economies. It was established in 1999 to give the increasingly developing nations of the world more of a voice in international discussions. It consists of Australia, Canada, Saudi Arabia, the US, India, Russia, South Africa, Turkey, Argentina, Brazil, Mexico, France, Germany, Italy, the UK, China, Indonesia, Japan, South Korea, and the EU. The African Union joined in 2023 as a way to broaden the club’s membership in the African continent.

Sources –

“What Does the G20 Do? Council on Foreign Relations

“G-7 & G-20.” US Department of the Treasury

G77 and Member States – Formed by the Joint Declaration of Seventy-Seven Countries in 1964, the G77 is an intergovernmental group of emerging economies primarily from the Global South. Similar to how G20 (above) operates, G77 promotes and coordinates economic development among its constituent countries. The group convenes annually in New York. Some of the larger members include China, India, Iran, Egypt, and Indonesia.

Sources –

“The Group of 77 (G-77): What It is, How it Works, Nations,” Investopedia

“The Group of 77 at Fifty,” United Nations

Group of 30 – The Group of 30 is a select group of academics, financial industry experts, and central bankers which produces research on global economic matters and publishes reports on the most important macroeconomic issues of the day. It has historically focused on problems in the balance of trade between nations, policy decisions made by central banks, financial liquidity, global clearing and settlement, the foreign exchange market, and global labor markets.

Sources – 

“About the Group of Thirty.” Group of Thirty

“Group of 30 (G-30) Definition.” Investopedia

Group of Paris – Also known as the Paris Club, this is a group representing major creditor countries, which seeks to help distressed debtor countries find sustainable solutions to problems of debt and balance of payments. These nations are Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Italy, Japan, the Netherlands, Norway, Russia, South Korea, Spain, Sweden, Switzerland, the United Kingdom, and the United States

The Paris Club helps coordinate between the governments of these nations. Although the payments owed by debtors are usually to financial institutions within creditor countries rather than the governments themselves, the creditor nations’ governments still have a role to play in settling disputes about debt payments.

Sources –

“Paris Club.” Club de Paris

“The Paris Club.” US Department of State

Helsinki Principles – A set of six principles formulated by the Coalition of Finance Ministers for Climate Action. These principles were developed to promote national climate action, particularly through fiscal policy and the use of public finance. The Coalition, which includes finance ministers from over 90 countries, recognizes the significant threat posed by climate change to economies, societies, and environments.

The principles are aligning policies and practices with the Paris Agreement commitments, sharing experience and expertise among members to promote collective understanding of policies and practices for climate action, working towards measures that result in effective carbon pricing, incorporating climate change considerations in macroeconomic policy, fiscal planning, budgeting, public investment management, and procurement practices, mobilizing private sources of climate finance by facilitating investments and developing a financial sector that supports climate mitigation and adaptation, actively engaging in the domestic preparation and implementation of Nationally Determined Contributions (NDCs) submitted under the Paris Agreement.

Sources –

“Helsinki Principles.” The Coalition of Finance Ministers for Climate

“About the Coalition.” The Coalition of Finance Ministers for Climate

Heavily Indebted Poor Countries Initiative (HIPC) – Inaugurated in 1996 by the International Monetary Fund (IMF) and the World Bank, HIPC is a program dedicated to assisting the world's most impoverished and debt-laden nations. Its primary objective is to alleviate the debt burden of these countries, enabling them to redirect their resources toward fostering economic growth and reducing poverty.

Sources – 

“Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative,” IMF.

“Heavily Indebted Poor Countries (HIPC) Initiative - Perspectives on the Current Framework and Options for Change,” IMF.

Human Development Index (HDI) — Introduced by the United Nations in 1990, the Human Development Index is a combined metric used to assess a country's social and economic development levels. Moving ahead from purely economic indicators, the HDI incorporates three critical dimensions: health and longevity (measured by life expectancy), education (considering years of schooling), and standard of living (determined by gross national income per capita). This approach reflects a nuanced understanding of development, recognizing that a nation's progress should not only be evaluated by economic growth but also by improvements in the quality of life of its citizens. The creation of the HDI ensured a more holistic approach to understanding a country's well-being and overall development.

Sources —

"Human Development Index." HDR

"What is the Human Development Index?" Investopedia

Humanism - is a philosophical and ethical stance that emphasizes the value and agency of human beings, both individually and collectively. It typically rejects supernatural and religious dogma, instead focusing on human reasoning, ethics, and social justice to address human problems. Humanism advocates for the development and enhancement of human potential and seeks to build a more humane society based on principles like reason, empathy, and a respect for human rights. Central to humanism is the belief in the importance of human dignity, autonomy, and the capacity for self-determination. Humanists often stress the importance of critical thinking, secularism, and a scientific approach to understanding the world, while promoting cultural, artistic, and intellectual pursuits that enrich human life. Using this ethical stance in the BBW initiative can help structure global finance to prioritize human life over profits or economic growth measures such as GDP.

Sources -

“Definition of Humanism.” American Humanist Association

“Humanism.” Britannica 

IADB – The Inter-American Development Bank (IADB or IDB) is a multilateral financial institution established in 1959 to support economic, social, and institutional development in Latin America and the Caribbean. It is the largest source of development financing for these regions, providing loans, grants, and technical assistance to support health, education, infrastructure, and environmental projects among others. The IADB aims to reduce poverty and inequality, improve health and education, and advance infrastructure development, thereby contributing to sustainable economic growth in its member countries. The bank is owned by its 48 member countries, including 26 borrowing countries in Latin America and the Caribbean, as well as non-borrowing members from outside the region, such as the United States, Japan, and several European countries.

Sources –

“IADB|Inter American Development Bank.” IDB

“Inter-American Development Bank.” Wikipedia

Independent Power Producers (IPPs) – An Independent Power Producer (IPP) is a corporation, company, authority, or governing body that operates and runs electricity-generating facilities for use, primarily by the public. An IPP may be a producer that develops power plants or privately specializes in a form of electricity generation.  

IPPs may also include all types of power generation, not limited to electricity, and they may offer them directly to consumers. In doing so, IPPs tend to lower overall costs through effective competition. With regard to financial differences, IPPs differ from investor-owned utilities in that they lack a safeguard of profits, which would be guaranteed by a state regulator. This requires IPPs to offer the aforementioned high-quality services at competitive prices.

Sources –

“What is Independent Power?.” Northwest & Intermountain Power Producers Coalition

“Glossary - U.S. Energy Information Administration.” U.S. Energy Information Administration

Inflation Reduction Act of 2022  – In August 2022, President Biden signed the Inflation Reduction Act which aims ‘to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030.’ It is considered one of the most significant actions Congress has taken on clean energy and climate change, and is the largest investment in climate and energy in American history. A primary end goal of the legislation is to drastically lower the United States’ carbon emissions over the next decade, while also modernizing the current energy grid. The act also seeks to improve US economic competitiveness, innovation, and industrial productivity through incentivizing private investments in clean energy, transport, and manufacturing, with corporations receiving an estimated $216 billion worth of tax credits.

Sources –

“The Inflation Reduction Act: Here’s what’s in it.” McKinsey & Company

“Inflation Reduction Act One Page Summary.” Senate Democrats

International Monetary Fund – The IMF, or the International Monetary Fund, serves as a lender of last resort to governments around the world. When states are unable to resolve debts they owe to international financial markets, the IMF provides emergency liquidity. Often, the Fund will require the debtor country to undertake economic and fiscal reforms, aimed at creating a sustainable budgetary and economic model, before it can receive its bail-out. It also acts as a pool of international capital on which member states can draw if they experience balance of payments problems. This capital is denominated in special drawing rights (SDR).

Sources –

“IMF Lending Factsheet.” IMF

“IMF Members' Quotas and Voting Power, and IMF Board of Governors.” IMF

IMF Climate Change Strategy – In July 2021, the International Monetary Fund (IMF) released a draft of its climate change strategy that begins to integrate the impacts of climate change into its mandate of safeguarding the international monetary and financial system. The strategy has three main elements: multilateral surveillance and global leadership, bilateral surveillance and capacity building, and a climate-aligned finance toolkit. The strategy aims to address the physical risks of climate change, emphasizing the need for strong global coordination on climate policy. Specifically, the IMF will identify and monitor climate risks, mobilize investments necessary for addressing climate change, and manage related risks.

Sources –

“IMF Strategy to Help Members Address Climate Change” IMF

“Climate Change and Development” Boston University

IMF Country Reports – Extensive and comprehensive list of publications that assess and provide information on the economic and financial situations of its member countries. These reports cover various aspects, including economic developments, policies, and statistical data. They can also be filtered by author, country, date, content type, trends, and publication subjects. There are currently over 11,000 reports in the database.

Sources –

“IMF Country Reports.” IMF

IMF Stand-By Arrangement (SBA) — The IMF Stand-By Arrangement is a short-term financial assistance program for countries facing payment balance challenges. This arrangement offers temporary financial resources to member countries, helping them to stabilize their economies by addressing immediate payment imbalances. A country must demonstrate a need for funding to qualify for the SBA to resolve its imbalances and commit to specific economic policy measures to restore financial stability. These measures typically focus on strengthening the country's fiscal and monetary policies and implementing structural reforms to promote sustainable economic growth. The SBA serves as a financial lifeline and a framework for policy reform, guiding countries toward economic recovery and stability.

Sources —

"The Stand-By Arrangement Agreement." IMF

"IMF SBA: Its role in the resolution of crises in the 1990s." University of Wollongong

Intergenerational Solidarity Index – The Intergenerational Solidarity Index (ISI), created by Jamie McQuilkin, is a tool designed to measure how well different nations are preparing for the well-being of future generations. It assesses this through the lens of intergenerational solidarity, which is defined as investments or sacrifices made with the intention of increasing or sustaining the well-being of future generations. This concept is quantified by examining a combination of economic, social, and environmental capital that the current generation is passing on to the future.

Sources –

“Intergenerational Solidarity Index” Roman Krznaric

“The Intergenerational Solidarity Index” FDSD

International Energy Agency (IEA) – The International Energy Agency is an intergovernmental organization with members mainly concentrated in Western Europe, North America, and Oceania. It provides data, analysis, and policy advice for governments on matters of global energy demand and supply. In recent years, the IEA has made efforts to help along the beginnings of the energy transition.

Sources –

“IEA – history.” IEA.org

“IEA pins climate change goals on developing world transition.” Reuters

Islamic Development Bank (IsDB) – Conceived by the Organization of the Islamic Conference in 1973, the Islamic Development Bank (IsDB) is a multilateral financial institution focused on supporting the economic and social development of its member countries. These efforts are guided by the principles of Sharia law. The IsDB has 57 active member countries, and its primary functions include investing in equity capital, providing loans for productive projects and enterprises, and offering financial assistance for economic and social development in member countries. The IsDB is the highest functioning muslim MDB in the world and has a “AAA” rating enhancing its ability to mobilize capital.

The IsDB is also responsible for creating and managing special funds for specific purposes. This includes a fund dedicated to assisting Muslim communities in non-member countries. The bank also has the authority to set up trust funds, accept deposits, and mobilize financial resources through methods that are compatible with Sharia law.

Sources–

“Islamic Development Bank.” Britannica

“Islamic Development Bank.” Islamic Development Bank

Loan Conditionalities – Prerequisites that a country must meet before receiving financial assistance. Because unconditional loans may perpetuate dependence and disincentivize self-reliance, the IMF (e.g.) requires that recipient governments engage in economic policy reform to solve the underlying issues that necessitated an emergency loan. Common conditionalities include debt reduction, excising corruption, or reducing inflation. Opponents point out that repayment-focused conditionalities can reduce public spending and domestic wellbeing.

Sources–

“Conditionality: What it Means, Types, Criticism,” Investopedia

“IMF Conditionality,” International Monetary Fund

Loss and Damage – Loss and damage from climate change refers to the impacts that go beyond what people can adapt to, such as the loss of homes and lives during extreme floods or heritage sites due to rising sea levels. It encompasses both economic and non-economic losses, including the loss of biodiversity, cultural heritage, and displacement of communities. The concept is central to UN climate negotiations, addressing climate justice by focusing on support for vulnerable communities disproportionately affected by climate change.

Sources–

“What Is "Loss and Damage" from Climate Change?” World Resources Institute

“About Loss and Damage” UNEP

Macro-prudential Supervision – Macro-prudential Supervision is an approach to financial sector regulation which aims to lessen systemic risks. Instead of focusing on preventing the collapse of individual financial institutions, it aims to ensure that systemic crises do not emerge from the financial system. To this end, the approach considers the interconnections between institutions and practices, and aims to remove vulnerabilities from financial systems to the greatest extent possible.

Sources –

“What are macroprudential tools?” Brookings Institution

“Towards a macroprudential framework for financial supervision and regulation?” Bank for International Settlements Working Papers

MegaWatt – 1 megawatt, the standard measurement for energy on a large scale, is the equivalent of 1 million watts. With a wide range in energy consumption in the world, energy grids must be tailored to fit the energy needs of every region.

In the US, a city of 100,000 people would annually require 50 megawatts of electricity, assuming there are 50,000 households that on average consume 1 megawatt per year. However, this standard is not uniform across the world. Many factors, such as population and temperature, impact a region’s average energy consumption. Thus, one must calibrate a balance of energy sources that satisfy both climate and energy demands.

Sources –

“What is a Megawatt.” US Nuclear Regulatory Commision

“How to Power a City of 100.000 People with Renewable Energy.” Alternative Energies

Mexico US Banking Crisis — The Mexico-US Banking Crisis, also known as the "Tequila Crisis," occurred in the mid-1990s, primarily due to the devaluation of the Mexican peso in December 1994. The newly elected President Ernesto Zedillo's administration deviated from the previous fixed exchange rate policy, which aimed to maintain the peso's value in a defined range against the US dollar. The crisis was precipitated by a combination of factors including Mexico's substantial fiscal deficits, dwindling foreign reserves, and significant exposure to short-term debt (Tesobonos) pegged to the US dollar. The government's attempt to stabilize the situation by floating the peso led to a drastic depreciation of the currency. This financial turmoil necessitated a substantial international bailout, amounting to around 50 billion dollars, coordinated by the US, Canada, and the International Monetary Fund (IMF). The crisis underscored the vulnerabilities in the Mexican banking system and resulted in increased foreign involvement and scrutiny in Mexican financial institutions.

Sources —

“The Mexican Peso Crsis: Implications for International Finance.” Federal Reserve

“Banking Crisis Lead to Dramatic in Mexico Lead to Dramatic Legislative Shift.” Latin Lawyer

Mitigation – Mitigation describes policies that aim to reduce the extent of climate change by addressing greenhouse gas emissions. The term has evolved in recent years to reflect the inevitability of at least some climate change, due to the volume of gasses that have already been released into the atmosphere. Mitigation seeks to cut future emissions in order to limit the amount of warming that the planet experiences, and thus reduce the extent of harmful climatic changes.

Many experts advocate prioritizing mitigation, given that expensive adaptation strategies are difficult to implement in the developing world, which will bear the brunt of climate change. Others advocate for adaptation-based approaches, given the inevitability of some climatic change.

Sources –

“What’s the difference between climate change mitigation and adaptation?” WWF

“Mitigation.” UN Environment Programme

Monetary Policy – “Monetary policy” refers to the policies employed by governments (usually via a central bank, which tends to be politically independent in developed countries and more tied to government priorities in less developed countries) to manage the supply of currency in their economies.

In most cases, contractionary monetary policy involves higher interest rates. This leads currency holders to shift their liquid currency assets into interest-bearing instruments and thus leads to a contraction of the money supply and a decrease in the velocity of money. This tends to cool inflation and reduce growth, investment, spending, and economic activity in general.

Expansionary monetary policy is the opposite; by decreasing interest rates, central banks encourage borrowing and spending and increase liquidity in the economy. This leads to faster economic growth and inflation.

Sources –

“Monetary Policy.” Concise Encyclopedia of Economics (2nd ed.)

“Monetary Policy: Stabilizing Prices and Output.” IMF

Montreal Protocol – The Montreal Protocol is an international treaty signed in 1987 designed to regulate the production and use of chemicals that contribute to the depletion of the Earth's ozone layer. The Protocol currently has nearly 200 signatories. Specifically, the Protocol phases out ozone-depleting substances. The Protocol also includes provisions for control measures, and special provisions for developing countries and is reviewed yearly to adjust for new scientific and economic developments. It has been highly successful, with the full and sustained implementation projected to recover the ozone layer by the middle of the 21st century​.

Sources –

“About Montreal Protocol.” UN environment program

“International treaty.” Britannica

Moral Hazard – In context, a situation in which an entity has an incentive to increase its exposure to risk, for it would not bear the full consequences of a negative outcome. For example, if a bank knows that its government would bail them out in times of crisis, it will be more likely to undertake risky, reward-maximizing investments. (Think 2008).

Sources – 

“Moral Hazard,” Corporate Finance Institute

“Moral Hazard: Meaning, Examples, and How to Manage,” Investopedia

Multilateral Debt Relief Initiative (MDRI) – Initiated in 2005 by the IMF, the World Bank, and various multilateral development banks, the Multilateral Debt Relief Initiative (MDRI) is a scheme aimed at providing debt relief to qualified low-income countries. This initiative seeks to lessen the debt load of these nations, thereby allowing them to devote more resources to poverty alleviation and economic advancement. A country's eligibility for MDRI relief typically hinges on its standing within the HIPC Initiative, with those reaching the "completion point" of the HIPC Initiative being eligible for MDRI assistance.

Sources – 

“Multilateral Debt Relief Initiative.” IMF

“Debt Relief.” The World Bank

Multilateral Development Banks and key institutions – The Multilateral Development Banks (MDBs) are a set of global and regional intergovernmental financial institutions that provide credit to low-income countries for the purpose of development and poverty reduction. The largest and most prominent MDB is the World Bank, but the category includes the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, and the European Bank for Reconstruction and Development.

Sources –

“Multilateral Development Banks.” Investopedia

“World Bank Announces Historic Collaboration Between Multilateral Development Banks.” World Bank

Nationally Determined Contribution – Any nation of the paris Agreement is required to create a Nationally Determined Contribution (NDCs). A NDC is a climate action plan providing targets and steps to achieve those targets to reduce greenhouse gas emissions and adapt to climate impacts. NDCs are required to have an in-depth explanation of the financial mechanisms to achieve these goals and each country must update their plan every 5 years. NDCs are determined by government ministries within each country and are intended to be a wholesale transformation of a nation's economy.

Sources –

“All About NDCs.” United Nations Climate Action

“What are Nationally Determined Contributions?” Arup

Natural Capital – “Natural Capital” is a term for the sum total of resources, within both biotic and abiotic systems, which together enable human activity and economic processes. It is difficult to estimate the value of natural capital in monetary terms, since it is so foundational to the continuation of all economic activity.

Sources –

“Natural Capital.” World Bank

“What is natural capital?” European Investment Bank

Nature-Based Currencies –  A model monetary system under which nature-rich, yet economically poor, nations are credited to support efforts to protect ecosystems and biodiversity, establishing nature as an asset. Some frameworks for how a nature-based currency would work include a central bank model, a digital currency, or an international currency.

While no nation has yet implemented such a system, it remains an important theoretical framework for sustainable development and financing.

Sources –

“Nature Based Currencies.” OpenEarth Foundation

“Investing in Nature Unlocks Development Benefits.” World Bank

Norges Bank Investment Management –  Norges Bank Investment Management (NBIM) is the part of the Norwegian central bank (Norges Bank) responsible for managing the Government Pension Fund Global (GPFG), often referred to as the Norwegian Oil Fund. Established in the 1990s, the fund is built on the revenue generated from Norway's oil and gas resources and is designed to ensure that these resources benefit both current and future generations of Norwegians. NBIM's mandate is to manage the fund's assets in a responsible and efficient manner, with the aim of achieving the highest possible return within the framework set by the Norwegian Ministry of Finance. The fund is a global investor, with its portfolio including a wide range of asset classes such as equities, fixed income, and real estate across many different countries and currencies.

Sources –

“Norges Bank Investment Management.” Norges Bank Investment Management

“Norges Bank.” Wikipedia

One percenters – “One percenters” is a shorthand phrase for referring to the top one percent of the global income distribution. Wealth is highly concentrated among the top 1%. They hold around 45% of global wealth, as opposed to the bottom 55% of the wealth distribution, who hold around 1% of global wealth.

Thanks to the extremely lopsided distribution of global income, childless individuals making more than around $60,000 per annum are considered to be part of the 1%. For households, the global 1% includes all those earning more than between $130,000 and $160,000 per annum, depending on marital status and the number of children. In terms of household wealth, that amount is slightly over $1,000,000.

Sources –

“Global Wealth Report 2023.”  Credit Suisse (pg 21)

“Who exactly are the 1%?” The Economist

OPEC – OPEC stands for the Organization of Petroleum Exporting Countries. It is a forum representing the interests of nations which produce and export petroleum. It acts as a cartel in the formal sense, and has some power to affect oil prices by compelling increases or decreases in production by member nations. It fosters cooperation aimed at maximizing the revenues of oil producing nations.

OPEC helped oil-rich nations (mainly in the Global South) become the key decision makers in international oil markets at the expense of the oligopolistic Anglo-American firms which dominated before 1960. However, it has also been criticized for its hegemonic influence in the market, and for the lack of democratic nations among the participating countries.

Sources –

“What drives crude oil prices: Supply OPEC.” U.S. Energy Information Agency

"GLOSSARY OF INDUSTRIAL ORGANISATION ECONOMICS AND COMPETITION LAW, P. 19." OECD

Physical and Transition Risk – Two components of climate risk. Transition refers to potential risks arising from the transition to a more sustainable world. Physical risk occurs when tangible assets are exposed to climate-related events. For example, a California utility company with infrastructure in the mountains is exposed to the increasing probability and severity of wildfires—a physical risk. Separately, if the same utility company generates energy solely from fossil fuels, it may see its sales fall as consumers become more environmentally conscious—a transition risk.

Sources – 

“Case Study: Physical and Transition Climate Risk.” S&P Global

“Climate Risks and Opportunities Defined.” Environmental Protection Agency

Public Investment Fund (PIF) – The Public Investment Fund (PIF) is Saudi Arabia's sovereign wealth fund (SWF), established in 1971. It serves as the main investment arm of the Saudi Arabian government, with the goal of diversifying the country's economy away from oil and contributing to its Vision 2030 plan. Vision 2030 is an ambitious set of objectives aimed at reducing Saudi Arabia's dependence on oil, diversifying its economy, and developing public service sectors such as health, education, infrastructure, recreation, and tourism. Internationally, the PIF has made significant investments in major global companies and projects, positioning itself as a major player in the global investment landscape. This includes high-profile investments in technology companies, strategic partnerships, and acquisitions that align with its long-term objectives of generating substantial returns while also supporting Saudi Arabia's strategic economic interests.

Sources – 

“PIF - Public Investment Fund.” PIF.gov.sa

“Public Investment Fund.” Wikipedia

Planetary Boundaries – There are nine planetary boundaries, or limits under which we must limit climate change, that are necessary to observe for the safety of humanity. These nine are:

1. Climate Change (changes in global temperatures and weather patterns)

2. Change in Biosphere Integrity (biodiversity loss and species extinction)

3. Stratospheric Ozone Depletion

4. Ocean Acidification

5. Biogeochemical Flows (interference phosphorus and nitrogen cycles)

6. Land-System Change (for example, deforestation)

7. Freshwater Use

8. Atmospheric Aerosol Loading (microscopic particles in the atmosphere that affect climate and living organisms)

9. Introduction of Novel Entities (effects of novel pathogenic varieties unleashed by ecosystem disruption)

In a paper published in 2015, renowned climate researchers arrived at the conclusion that two planetary boundaries (Biochemical Flows and Biosphere Integrity) had already been breached, while the Land-System Use and Climate Change boundaries were within mere decades of being breached.

Sources –

“Planetary Boundaries.” EU Sustainability Guide

“Planetary boundaries: Guiding human development on a changing planet.” Science Journal

Polycrisis – A polycrisis is a convergence of multiple interrelated crises and shifts in the environmental, social, economic, political and demographic spheres. Multiple layers of failure converge and feed into each other to yield major and systemic shifts in the world system.

This term most often refers to the present convergence of anthropogenic climate change with population growth, economic inequality, political instability and mass migration. Each facet of the crisis feeds into others. To name one example, population growth and aridification combine with economic inequality to cause civil wars in the middle east, leading to migration into Europe, which causes further instability as backlash to the migrants increases.

However, there have been historical examples of polycrises. Historians often describe the Bronze Age collapse (c. 1200-1100 BCE) in the Mediterranean Basin as a polycrisis. Climate change caused migration and warfare, leading to the collapse of trade, together leading to famine and resource shortages, which triggered further migrations and wars. While this particular polycrisis resulted in the collapse of civilization in and four hundred years of Dark Ages, there is still time to avoid such an outcome during the present polycrisis.

Sources –

“This is why 'polycrisis' is a useful way of looking at the world right now.” WEF

“Polycrisis.” Cascade Institute 

Poverty Reduction and Growth Trust (PRGT) – Similar to the above, the PGRT is a trust within the IMF that targets poverty reduction through zero-interest financing. Three lending facilities comprise the PGRT (in descending order of engagement length): Extended Credit Facility, Standby Credit Facility, and Rapid Credit Facility. Each facility addresses challenges to balance of payments problems.

Sources – 

“IMF Support for Low-Income Countries,” IMF

“Poverty Reduction and Growth Trust (PRGT),” IMF

Privatization - Privatization refers to the process of transferring ownership of a business, enterprise, agency, public service, or public property from the public sector (government) to the private sector (businesses that operate for a private profit). The term can also include the contracting out of services or functions previously performed by government agencies to private entities.

Sources –

“Privatization.” Britannica

“Privatization.” Investopedia

Rating Agencies – Also known as Credit Rating Agencies, these private bodies play a key role in the global financial system by assessing the creditworthiness of nations and corporations. The three largest credit rating agencies are Moody’s, Standard & Poor’s, and Fitch. Their most important function is to assess the risks of buying the sovereign debt of nation states.

These rating agencies rate such bonds on behalf of investors, determining the likelihood that the country will default in the near future. For example, S&P credit ratings range from AAA (the highest) to C (the lowest). Moody’s and Fitch use similar systems with slight changes in nomenclature. A rating below “BBB” is considered speculative, or non-investment grade, and is colloquially referred to as a “junk bond”. Most developed nations have credit ratings between AAA and A-.

Generally, investors demand higher interest rates for bonds with lower ratings, to compensate for the perceived risk. In the worst cases, a nation with a low credit rating may be unable to borrow on financial markets.

Sources –

“S&P Global Ratings Definitions.” S&P Global

“Credit ratings agencies like Moody’s decide the US credit rating. Here’s what you need to know about them.” CNN Business

Resilience and Sustainability Trust (RST) – Established in April 2022, the RST is a trust within the IMF that finances concessional loans for low and middle-income countries. Future-focused by nature, the RST provides capital for resilience-building projects, which insulates countries against external shocks (e.g. climate change). More technically, RST loans have a 20-year maturity with a 10.5-year zero-interest period; the typical IMF loan has a 3-5 year maturity.

Sources – 

“What is the IMF Resilience and Sustainability Trust?” Bretton Woods Project

“Resilience and Sustainability Trust,” IMF

SAFE – The State Administration of Foreign Exchange (SAFE) is a crucial entity within China's financial regulatory framework, operating under the People's Bank of China (PBOC), the country's central bank. Established in 1979, SAFE is responsible for drafting rules and regulations governing foreign exchange market activities, and for managing China's foreign exchange reserves, which are among the largest in the world. SAFE oversees the foreign exchange market, ensuring stability and enforcing regulations. SAFE is tasked with regulating foreign exchange transactions of both domestic and foreign entities operating in China to maintain orderly market conditions. SAFE also manages China's foreign currency reserves, which involves investing in various financial assets to preserve and grow the value of these reserves. The management of these assets is critical for supporting the Chinese yuan's value on international markets and for ensuring the country's financial stability. It compiles and analyzes China's balance of payments and international investment position, providing valuable data on the country's economic interactions with the rest of the world. SAFE also regulates China's foreign debt, including the approval and registration of foreign loans and the country's overall external borrowing to ensure it remains within safe limits.

Sources – 

“State Administration of Foreign Exchange.” Safe.gov.cn

“China’s State Administration of Foreign Exchange (SAFE) overview.” Investopedia

Shadow Banking – The credit-intermediation activities of relatively unregulated financial institutions, including private equity firms and hedge funds. Regulated banks create credit by lending against their consumer deposits, an activity which is regulated by the Dodd-Frank Act and overseen by the U.S. government. Unregulated financial institutions can intermediate credit through other means, including maturity transformation, liquidity transformation, transferring risk, and assuming leverage.

Sources – 

“What is Shadow Banking?” International Monetary Fund

“Shadow Banking SYstem: Definition, Examples, and How it Works,” Investopedia

Sharm el-Sheikh Implementation Plan – The plan of action negotiated at COP27 in Sharm el-Sheikh, Egypt. The plan centers around the implementations of actions proposed in earlier COPs. One of the primary achievements from the Sharm el-Sheikh Implementation Plan is an agreement to create the Loss and Damage Finance Facility (LDFF) – which reserves financial support to allocate to developing countries that are suffering from climate change impacts. The Sharm el-Sheikh Implementation Plan also recognized the $4-6 billion dollar yearly investment to help facilitate a low-carbon and global economy, and it established concerns regarding the strain of sovereign debt on developing countries’ climate change efforts.

Sources –

“COP27 debrief: Milestones for climate-resilient development in Sharm el-Sheikh | UNCTAD.” UN Council on Trade and Development

“COP27: What was agreed at the Sharm el Sheikh climate conference?” British Broadcasting Corporation

Silent Spring – Silent Spring is an environmental science book by Rachel Carson published on September 27, 1962. "Silent Spring" is acclaimed for its role in catalyzing the environmental movement, drawing attention to how human activities can significantly and detrimentally impact the natural world. Carson, a renowned biologist and author, meticulously detailed the adverse effects of pesticides, particularly DDT, on the environment, wildlife, and human health.

Her work was a significant factor in altering public perception about the use of chemical pesticides and their far-reaching impacts. The book promoted a new public consciousness about environmental protection, leading to increased regulations and the eventual banning of DDT.

Sources – 

“The Story of Silent Spring.” NRDC

“How ‘Silent Spring’ Ignited the Environmental Movement.” NYT

Siloed Problem Solving – This concept refers to an approach to problem-solving where individuals or groups operate in isolation ("silos"), with minimal interaction or collaboration with other relevant parties or departments. This approach is often counterproductive, particularly in addressing complex, multifaceted challenges (referred to as a "policrisis"). Siloed problem-solving tends to overlook the interconnected nature of many issues, leading to inefficient solutions. In contrast, a more holistic and collaborative approach, involving diverse stakeholders and perspectives, is generally more effective. This is particularly true in the context of global challenges, where cooperation among various organizations, sectors, and countries is essential for devising comprehensive, adaptable, and sustainable solutions.

Sources –

“Silo Mentality: Definition in Business, Causes, and Solutions.” Investopedia

“Seven Ways to Reform the Global Financial Architecture System to Help Achieve SDGs.” SDG Knowledge Hub

Sovereign Debt Restructuring – Sovereign debt restructuring is the process by which indebted nations without the fiscal ability to pay their sovereign debts negotiate with their creditors. Ideally, the process results in a more sustainable schedule of debt payments and allows the debtor to regain access to international capital markets, while guaranteeing that the creditors recoup some of their losses.

Sovereign debt restructuring is a complex process, involving reductions in interest rates, changes in scheduled repayments, financial and economic reforms, and sometimes the wholesale forgiveness of debt.

Sources –

“Sovereign Debt Restructuring.” UN

“Sovereign Domestic Debt Restructuring: Handle with Care.” IMF

Sovereign Wealth Funds – Sovereign Wealth Funds are state-owned investment funds that typically use revenues from commodity exports or foreign exchange reserves invested in the global financial market. They tend to have issues with transparency due to governments not being required to disclose information and have a higher tolerance for risk due to its lower need for liquidity. 

Sources –

“What is a Sovereign Wealth Fund.” Sovereign Wealth Fund Institute

“Sovereign Wealth Funds.”  IMF

Special Drawing Rights (SDRs) – SDRs are a type of asset created and maintained by the IMF. An SDR is a claim or right to a certain amount of hard currency, representing a percentage of the IMF’s total hard currency reserves. These reserves consist of a basket of prominent world currencies, with the proportions of these currencies adjusted every five years to reflect global market conditions. Currently, the basket consists of 44% US Dollars, 29% Euros, 12% Yuan, 8% Japanese Yen, and 7% Pound Sterling.

Sources –

"Special drawing right (SDR) - factsheet." IMF.org

"Press Release – IMF Determines New Currency Amounts for the SDR Valuation Basket." IMF

Stablecoin – A digital unit of value with the purpose of stabilizing a cryptocurrency by pegging it to the value of a fiat currency (government-backed currency). Stablecoins are used to facilitate crypto trades and purchase goods and services over a blockchain network.

Sources –

“Stablecoins’ Role in Crypto and Beyond: Functions, Risks and Policy.” European Central Bank

“What are Stablecoins and How They Work.” Britannica Money

State of Food Security and Nutrition (SOFI) – SOFI report is the United Nations' premier publication on food security, released annually. This report is considered the benchmark when considering global access and availability of food. It is a collaborative effort composed of many global high functioning humanitarian organizations. The report provides a comprehensive overview of the global state of hunger, malnutrition, and food security. It includes key data, such as the total number of undernourished people worldwide, and advocates for strategies to combat hunger and malnutrition.

The SOFI report is instrumental in tracking progress towards achieving Sustainable Development Goal 2, which aims for "zero hunger" by 2030. According to the 2023 edition of the report, the number of undernourished people in 2022 was higher than in 2015, the year when the 2030 Agenda for Sustainable Development was launched.

Sources –

“SOFI Publication.” FAO

“Key Findings from SOFI 2023.” Centre for Strategic and International Studies

“Food Security.” ScienceDirect

Structural Adjustment Programs – A program of policy reforms supported by The World Bank and the IMF targeting the basic structure of individual economies and intended to facilitate the adjustment of national economies to their changing economic and social environments.  Such policies might include liberalizing trade, reducing domestic inflation, decreasing budget deficits, privatizing public entities, and shifting spending priorities. In the past, such policy reforms, packaged as loan conditionality, were often criticized for being too standardized and not reflective of the national conditions prevailing in individual borrowing countries.

Sources –

“What are Structural Adjustment Programs (SAPs)?” Investopedia

“Structural Adjustment Programs.” Institute for Policy Studies

Sustainable Development Goals - The United Nations established The Sustainable Development Goals (SDGs) as a blueprint for future sustainable development to be attained by 2030. The SDGs are a collection of 17 goals primarily centered on the integration of economic growth, social inclusion, and environmental protection on a global scale, encompassing individuals, institutions, and countries. It was adopted in 2015 by all UN member states and signifies a collective commitment to addressing contemporary global challenges and fostering an equitable future for all, which are not limited to just developing nations. Examples of specific goals include promoting quality education, encouraging responsible consumption, eliminating poverty, and ensuring access to clean water. Each goal embodies a sense of urgency, emphasizing the imperative for a unified response to the complex challenges of our interconnected world, often referred to as the polycrisis.

Sources –

"The 17 Goals." UN

"The Sustainable Development Agenda." UN

"Sustainable Development Goals." WHO

SWIFT - The Society for Worldwide Interbank Financial Telecommunications (SWIFT) is the largest system used by financial institutions for international monetary and security transfers around the world. 11,000 institutions from over 200 countries employ SWIFT for its secure and continually advancing platform. 11 billion FIN messages were sent in 2022 using SWIFT, with payments and securities making up 95.6% of the messages. SWIFT enables connections to a number of applications, such as banking market infrastructure for processing payment instructions between banks, or securities market infrastructure for processing clearing and settlement instructions for transactions. SWIFT is only a messaging system, and does not hold funds or securities, nor does it manage client accounts. SWIFT is a member-owned cooperative, and is overseen by the Group of Ten’s central banks, with the National Bank of Belgium as the lead. That being said, SWIFT is considered a neutral organization designed for the benefit of all its members.

Sources –

“SWIFT FIN Traffic and Figures.” SWIFT

“What is the SWIFT Banking System?” Investopedia

Task Force on Climate-Related Financial Disclosures (TCFD) — Established in 2015, the TCFD is a voluntary initiative focused on developing standardized disclosures for companies to inform investors and other stakeholders about climate-related financial risks. Endorsed by the Financial Stability Board (FSB), it seeks to improve transparency in how companies assess and report these risks, aiding the global transition to a sustainable, low-carbon economy. The TCFD framework centers on four elements: governance, strategy, risk management, and metrics and targets. It encourages companies to integrate the financial implications of climate change into their business decision-making, thus promoting long-term investment strategies and risk management procedures that are aware of environmental impacts. As risk evaluations change throughout the polycrisis– the TCFD will be pivotal in bridging the gap between profit-based finance and environmentalism.

Sources –

“About | TCFD.” TCFD

“TCFD.” Investopedia

Task Force on Nature-Related Financial Disclosures — The Taskforce on Nature-related Financial Disclosures (TNFD) is a groundbreaking initiative that aims to encourage and support businesses and financial institutions worldwide in assessing, disclosing, and managing their nature-related risks and impacts. By developing a comprehensive framework and guidance, the TNFD seeks to promote consistent and comparable reporting on nature-related risks, thereby enhancing transparency and accountability in the financial sector. This initiative is crucial for integrating nature into financial and business decisions, anticipating regulatory shifts, and encouraging nature-positive actions

Sources –

“About | TNFD” TNFD

“The TNFD launches its final recommendations” UNEP

Temasek Holdings  - Temasek Holdings is Singapore’s Sovereign Wealth Fund, started in 1974, and currently holds $492.2 billion in assets. It is one of the largest and most active global investors with 28% of its holdings in Singapore, 23% in China and 21% in the US. It claims it will begin to boost investments toward India and east Asia for supply chain diversification away from China.

Sources –

“Temasek Holdings (Private) Limited (Temasek).” Foreign Wealth Funds Institute

“Singapore’s Temasek Reports worst returns in 7 years.” Financial Times

The Financial Stability Board (FSB) - This is an international body that analyzes and makes recommendations about the global financial system. Their main mandate is to promote financial stability by working with nations to develop strong regulatory, supervisory, and other financial sector policies. The FSB is a non-for-profit operated under Swiss law and works outside of any governmental structure. This was established in a response to the negligence that caused the 2008 financial crisis.

Sources –

“About the FSB.” FSB

“The Financial Stability Board and GLEIF.” GLEIF

Tipping points – Fifteen interconnected catastrophic climate events that will occur when the global temperature surpasses various associated thresholds. These thresholds are tied to CO2 emissions. The events include losses in the ice sheets of Antarctica and the Arctic Circle, Boreal Forest Collapse, the dieback of the Amazon Rainforest, and other major catastrophes. They span the globe geographically. These tipping points are irreversible and will have severe implications for all living beings across the globe if they come about.

Sources –

“The Tipping Points of Climate Change.” Earth.org

“Climate Tipping Points Are Closer Than Once Thought.” Natural Resources Defense Council

“New science reveals how to secure a safe and just planet Earth.” World Economic Forum

The Triple Bottom Line – It is a business concept emphasizing the measurement of a company's impact on society and the environment, in addition to only looking at profits. It is structured around three core elements: Profit, People, and Planet. This framework challenges businesses to go beyond traditional financial success and incorporate social and environmental responsibility into their operations. Companies aim to create value not only for shareholders but also for a broader range of stakeholders.

Sources-
“The Triple Bottom Line: what it is & why it's important.” Harvard Business School

“The Triple Bottom Line.” Indiana Business Review

Universal Basic Income – Universal Basic Income is a social security safety net to provide a base level of income to all citizens. Though not currently in place in any country, UBI experiments have been conducted in Kenya, Finland, Canada, and other differing countries. UBI is a controversial idea as critics cite concerns about a shared income and lower incentive to work. However, supporters have pointed out that UBI can reduce inequalities arising from automation, globalization, and other economic changes.

Although experimental data has been somewhat sparse and clouded by confounding variables, Universal Basic Income schemes seem to have little effect – positive or negative – on willingness to find paid employment. However, some positive effects on lifestyle, health, education, and mental wellness do often emerge.

Sources –

“What Is UBI?” Stanford Basic Income Lab

“Exploring Universal Basic Income.” World Bank

UN Economic and Social Council (EcoSoc) – One of the UN’s six major organs, EcoSoc is a coordinating entity that oversees the UN’s economic and social operations. The entity reports on issues related to global human rights, equity, crime, and development (among others), which the UN General Assembly then utilizes for policy development. EcoSoc’s key responsibility is maintaining peace which, in turn, requires social progress and a high quality of life globally.

Sources –

“Economic and Social Council,” United Nations

"Economic and Social Council," Britannica

United Nations Development Programme (UNDP)  – Established in 1965, the United Nations Development Programme (UNDP) is a United Nations agency dedicated to eliminating poverty and fostering sustainable economic growth and human development. It focuses on leveraging local resources for countries' long-term self-sufficiency and prosperity. Operating through five-year Country Programmes, the UNDP supports projects in investment, employee training, and technology. It provides expertise in expanding the private sector, reducing poverty, combating HIV/AIDS, and improving communication and technology infrastructure. The UNDP also coordinates activities of other UN agencies, programs, and NGOs in over 125 developing countries.

Sources –

“UNDP.” UN

“UNDP.” The Practical Guide To Humanitarian Law

United Nations High Commissioner for Refugees (UNHCR) – The UNHCR is a subsidiary agency of the United Nations responsible for protecting and supporting refugees and displaced people. The agency was established in 1950 by the General Assembly of the United Nations in the aftermath of WWII to aid millions of Europeans who had fled or lost their homes. The primary mandate of UNHCR is to ensure that refugees have access to international protection and find durable solutions to their plight. UNHCR works to provide shelter, healthcare, education, and other essential services to refugees and displaced persons. UNHCR currently operates in 137 countries, providing assistance to those who have been forced to flee due to persecution, conflict, violence, or human rights violations.

Sources –

“About UNHCR.” UNHCR

“The Practical Guide to Humanitarian.” Medecins Sans Frontieres

UNFCCC – This acronym stands for “UN Framework Convention on Climate Change.” It refers to a landmark environmental treaty signed by 154 nations in 1992. It provided the first framework for international regulations on emissions and pollution. It was the precursor to the Kyoto Protocol and the Paris climate accords.

Sources –

“7 . United Nations Framework Convention on Climate Change.” UN Treaty Collection

“United Nations Framework Convention on Climate Change.” Science Direct

V20 and member states – The V20, also known as the Climate Vulnerable Forum, is a forum for the nations who have been identified as the most vulnerable to the effects of climate change. It lobbies the nations of major polluters to develop adaptation and mitigation efforts, and to provide financing for vulnerable nations. It includes sixty-eight nations concentrated in Africa, Southeast Asia, and South America.

Sources –

“Members.” V20.org

“About.” Climate Vulnerable Forum

Washington Consensus – Coined in the late 1980s, Washington Consensus refers to ten policy reforms targeted toward Latin America formerly endorsed by the IMF, WB, and U.S. Treasury. More precisely, upon extending a loan, the aforementioned parties required a set of structural adjustments—economic reforms like debt reduction and reducing the money supply. This approach proved myopic and ineffective, and it evolved to include the participation of developing-country governments and civil society.

“Washington Consensus,” Britannica Money

“Washington Consensus as Policy Prescription for Development,” Institute for Intl. Economics

WBG’s Development Policy Financing Program for Affordable and Clean Energy (PACE) - The WBG’s Development Policy Financing Program for Affordable and Clean Energy is a set of objectives targeted at Pakistan to resolve their energy crisis through the development of affordable and sustainable energy solutions. These objectives are focused on reducing circular debt flow through a reduction in power generation costs and decarbonizing the energy mix, retargeting electricity subsidies, and improving efficiency in distribution.

Sources -

"Pakistan - Program for Affordable and Clean Energy Development Policy Financing." WBG

"Pakistan Program for Affordable and Clean Energy (PACE)." WBG

Wellness Economies – A wellness economy is an economy that operates to serve both people and the planet by prioritizing human and planetary needs over profits and GDP growth. In the wellness economy, there are 11 sectors of products and services to help foster human health: mental wellness, physical activity, personal care and beauty, healthy eating and nutrition, wellness tourism, traditional and complementary medicine, public health and personalized medicine, wellness real estate, workplace wellness, spas, and springs.

“What is a Wellbeing Economy.” Wellbeing Economy Alliance

“Wellness Definitions.” Global Wellness Institute

World Bank Group – This term refers to a consortium of public international financial organizations, consisting of:

1. The International Bank for Reconstruction and Development (IBRD)

2. The International Development Association (IDA)

3. The International Finance Corporation (IFC)

4. The Multilateral Investment Guarantee Agency (MIGA)

5. The International Centre for Settlement of Investment Disputes (ICSID)

The World Bank (which is part of the World Bank Group) consists of the IBRD and IDA. These institutions lend to the governments of middle- and low-income countries, respectively. The IFC lends to the private sector in developing countries, while the MIGA provides risk insurance to development projects across the world. Finally, the ICSID acts as a court, settling disputes between creditors and debtors. Together, these five agencies form the World Bank Group.

Sources – 

“About the World Bank.” worldbank.org

“Who We Are.” worldbank.org

World Bank Evolution Roadmap – The World Bank Evolution Roadmap is a strategic initiative aimed at revitalizing the World Bank’s efforts towards its core objectives of eradicating extreme poverty and fostering shared prosperity. The roadmap embraces a three-pronged approach:

1. Expanding the World Bank's mission to encompass Global Public Goods (GPGs), recognizing the critical role of addressing climate change, pandemics, and other global crises in sustainable development.

2. Improving the World Bank's operations, including analytics, incentive structures, and engagement with countries.

3. Exploring ways to improve the Bank Group's financial capacity and model, considering the G20's Capital Adequacy Framework Review recommendations.

Sources –

“World Bank Group Evolution Roadmap Comments and recommendations of the UN Human Rights Office.” United Nations Human Right Office of the High Commissioner

“Evolving the World Bank Group’s Mission, Operations, and Resources: A Roadmap.” World Bank

World Bank Reform – This term refers to efforts to modernize and change the structure of the World Bank. In general, these efforts aim to:

1. Center non-econometric measures of development, including prioritizing environmental sustainability, social, physical and mental well-being, gender and racial equity, and the reduction of economic inequality;

2. Further include developing and low-income countries as stakeholders in the global financial system;

3. Prevent indebtedness and high borrowing costs from crippling development in the Global South;

4. Help poor countries finance climate adaptation measures, sustainable development initiatives, and decarbonization.

Sources –

“What would the perfect climate change lender look like?” The Economist, February 2023

“FACT SHEET: Delivering a Better, Bigger, More Effective World Bank.” WhiteHouse.gov, 2023

World Economic Forum (WEF) – Founded by Klaus Schwab in 1971, the World Economic Forum is a not-for-profit organization that combines the leading members of the public and private sector to create a sustainable future for the global economy. Members of the WEF created it at the headquarters in Davos, Switzerland to navigate developments in technology, topics in climate change, issues with inequality, and other prominent topics. In doing so, they sought to create a unified agenda and improve the state of the world.

A central component of the WEF is the Stakeholder Theory, which perpetuates the idea that businesses should create value for investors, employees, customers, and the community — also known as stakeholders.

Finally, as an independent organization, the WEF seeks to influence international leadership and to create both projects and initiatives that point the world to a brighter tomorrow.

Sources –

“The World Economic Forum | President John J. DeGioia.”  Georgetown University

“About | Stakeholder Theory.”  Stakeholder Theory

World Food Organization – The World Food Program is a specialized agency of the United Nations established in 1961. It provides direct food aid worldwide, supporting over 128 million people in 120 countries. While its main function is to provide direct assistance to the neediest, including those in conflict zones, it also partners with governments to promote resiliency in their food systems.

Sources –

“UN Food Program – History.” World Food Program

“WFP Annual Performance Report for 2021.” World Food Program

World Food Program – The world’s largest humanitarian agency, the World Food Program (WFP) is the branch of the UN that addresses food insecurity. Essentially, the group collects and then distributes food to those affected by severe crises, including famines, war, and disease, the long-term goal being food stability, peace, and prosperity. Its actions are pursuant to the second of the UN’s 17 SDGs: Zero Hunger.

Sources –

“World Food Programme,” Britannica

“World Food Programme Homepage,” WFP

World Health Organization – The World Health Organization was established in 1948 as a specialized agency that falls under the umbrella of the United Nations. The WHO helps coordinate international responses to health emergencies, and is responsible for worldwide public health, the collection of data on global health, and the taxonomic classification of diseases. It was responsible for researching, formulating and promulgating guidelines for nations’ responses to COVID, Monkeypox, Zika, and other health crises.

The WHO is governed by  the World Health Assembly. The WHA is composed of the 194 member states of the WHO. The WHA elects and advises an executive board made up of 34 health specialists and elects the WHO's chief administrator, known as the director-general.

Sources –

“Governance.” World Health Organization

“What Does the World Health Organization Do?” Council on Foreign Relations

World Trade Organization – The World Trade Organization (WTO) is the most prominent of several organizations that formed after the end of the Bretton Woods System. It replaced the General Agreement on Tariffs & Trade (GATT), the 1948 agreement which had previously governed trade relations between countries, and which provided for numerous rounds of trade talks until 1979. The final round of talks under GATT ran from 1986 to 1994, and ended with the establishment of the WTO.

The WTO facilitates the establishment of trade agreements, the resolution of trade disputes, and the removal of global trade barriers. It covers 164 member states, which together represent 98% of global trade and global GDP.

Sources –

“The GATT years: from Havana to Marrakesh.” World Trade Organization

“Accession in Perspective.” World Trade Organization