IDEAS home Printed from https://ideas.repec.org/p/wbk/hdnspu/56501.html
   My bibliography  Save this paper

Bringing financial literacy and education to low and middle income countries : the need to review, adjust, and extend current wisdom

Author

Listed:
  • Holzmann, Robert

Abstract

This paper presents a World Bank led and Russia trust fund financed work program to measure financial capability and the effectiveness of financial education in low and middle income countries. The two activities and their staging have been motivated by the lessons of high income countries with financial literacy programs and the deviating characteristics of low and middle income countries. While progress has been made in high-income countries to measure financial capability, there is little robust empirical evidence thatfinancial education can improve it. While applying the financial capability concept in low and middle-income countries looks promising it will need to be adjusted to their characteristic and supported by innovative interventions and rigorous impact evaluation to improve it.

Suggested Citation

  • Holzmann, Robert, 2010. "Bringing financial literacy and education to low and middle income countries : the need to review, adjust, and extend current wisdom," Social Protection Discussion Papers and Notes 56501, The World Bank.
    • Handle: RePEc:wbk:hdnspu:56501
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2010/09/08/000333038_20100908234605/Rendered/PDF/565010NWP010070Box349496B01PUBLIC10.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Amin, Mohammad, 2009. "Labor regulation and employment in India's retail stores," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 47-61, March.
    2. Haja, Nirina Andrianjaka & Milazzo, Annamaria, 2008. "Highly labor-intensive public works in Madagascar : issues and policy options," Social Protection Discussion Papers and Notes 47357, The World Bank.
    3. Braithwaite, Jeanine & Carroll, Richard & Mont, Daniel & Peffley, Karen, 2008. "Disability and development in the World Bank : FY2000-2007," Social Protection Discussion Papers and Notes 45178, The World Bank.
    4. Alberto Chong & Eliana La Ferrara, 2009. "Television and Divorce: Evidence from Brazilian Novelas," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 458-468, 04-05.
    5. Sanchez Puerta, Maria Laura, 2010. "Labor market policy research for developing countries : recent examples from the literature - what do we know and what should we know?," Social Protection Discussion Papers and Notes 52999, The World Bank.
    6. Rita K. Almeida, 2010. "Openness and Technological Innovation in East Asia: Have They Increased the Demand for Skills?," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 17(1), pages 63-95, June.
    7. Piggott, John & Sane, Renuka, 2009. "Indexing pensions," Social Protection Discussion Papers and Notes 52445, The World Bank.
    8. Robert Holzmann & Steen Jørgensen, 2001. "Social Risk Management: A New Conceptual Framework for Social Protection, and Beyond," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(4), pages 529-556, August.
    9. Stefano DellaVigna, 2009. "Psychology and Economics: Evidence from the Field," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 315-372, June.
    10. Linda G. Morra Imas & Ray C. Rist, . "The Road to Results : Designing and Conducting Effective Development Evaluations," World Bank Publications, The World Bank, number 2699, September.
    11. Almeida, Rita & Aterido, Reyes, 2008. "The incentives to invest in job training : do strict labor codes influence this decision?," Social Protection Discussion Papers and Notes 46189, The World Bank.
    12. Almeida, Rita K. & Aterido, Reyes, 2010. "The Investment in Job Training: Why Are SMEs Lagging So Much Behind?," IZA Discussion Papers 4981, Institute of Labor Economics (IZA).
    13. Milan Vodopivec, 2013. "Introducing unemployment insurance to developing countries," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    14. Martin Ravallion, 2009. "Evaluation in the Practice of Development," The World Bank Research Observer, World Bank, vol. 24(1), pages 29-53, March.
    15. Milan Vodopivec & Lilijana Madjar & Primoz Dolenc, 2009. "Non-performance of the Severance Pay Program in Slovenia," Financial Theory and Practice, Institute of Public Finance, vol. 33(1), pages 89-102.
    16. Avato, Johanna & Koettl, Johannes & Sabates-Wheeler, Rachel, 2009. "Definitions, good practices, and global estimates on the status of social protection for international migrants," Social Protection Discussion Papers and Notes 49172, The World Bank.
    17. Bhattamishra, Ruchira & Barrett, Christopher B., 2010. "Community-Based Risk Management Arrangements: A Review," World Development, Elsevier, vol. 38(7), pages 923-932, July.
    18. Almeida, Rita & Carneiro, Pedro, 2009. "Enforcement of labor regulation and firm size," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 28-46, March.
    19. Eliana La Ferrara & Alberto Chong & Suzanne Duryea, 2012. "Soap Operas and Fertility: Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 1-31, October.
    20. Almeida, Rita & Carneiro, Pedro, 2009. "The return to firm investments in human capital," Labour Economics, Elsevier, vol. 16(1), pages 97-106, January.
    21. Robalino, David & Vodopivec, Milan & Bodor, Andras, 2009. "Savings for unemployment in good or bad times : options for developing countries," Social Protection Discussion Papers and Notes 50320, The World Bank.
    22. Angel-Urdinola, Diego F. & Kuddo, Arvo, 2010. "Key characteristics of employment regulation in the Middle East and North Africa," Social Protection Discussion Papers and Notes 55674, The World Bank.
    23. Perotti, Valeria & Sánchez Puerta, Maria Laura, 2009. "Personal Opinions about the Social Security System and Informal Employment : Evidence from Bulgaria," Social Protection Discussion Papers and Notes 89563, The World Bank.
    24. Vodopivec, Milan & Arunatilake, Nisha, 2008. "Population aging and the labor market : the case of Sri Lanka," Social Protection Discussion Papers and Notes 44927, The World Bank.
    25. Abidoye, Babatunde & Orazem, Peter & Vodopivec, Milan, 2008. "Firing Cost and Firm Size: A Study of Sri Lanka's Severance Pay System," Staff General Research Papers Archive 12922, Iowa State University, Department of Economics.
    26. Milan Vodopivec & Primoz Dolenc:, 2008. "Live Longer, Work Longer: Making It Happen in the Labor Market," Financial Theory and Practice, Institute of Public Finance, vol. 32(1), pages 65-81.
    27. Ferrer, Ana M. & Riddell, W. Craig, 2009. "Unemployment insurance savings accounts in Latin America : overview and assessment," Social Protection Discussion Papers and Notes 49173, The World Bank.
    28. Robert Holzmann & Steen Jørgensen, 2001. "Social Risk Management: A New Conceptual Framework for Social Protection, and Beyond," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(4), pages 529-556, August.
    29. Robalino, David A. & Zylberstajn, Helio, 2009. "Ex-ante methods to assess the impact of social insurance policies on labor supply with an application to Brazil," Policy Research Working Paper Series 5027, The World Bank.
    30. Honohan, Patrick, 2008. "Cross-country variation in household access to financial services," Journal of Banking & Finance, Elsevier, vol. 32(11), pages 2493-2500, November.
    31. Ninno, Carlo del & Subbarao, Kalanidhi & Milazzo, Annamaria, 2009. "How to make public works work : a review of the experiences," Social Protection Discussion Papers and Notes 48567, The World Bank.
    32. Vincenzo Galasso & Roberta Gatti & Paola Profeta, 2009. "Investing for the old age: pensions, children and savings," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(4), pages 538-559, August.
    33. Rofman, Rafael & Fajnzylber, Eduardo & Herrera, German, 2008. "Reforming the pension reforms : the recent initiatives and actions on pensions in Argentina and Chile," Social Protection Discussion Papers and Notes 90346, The World Bank.
    34. Alberto Chong & Eliana La Ferrara, 2009. "Television and Divorce: Evidence from Brazilian Novelas," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 458-468, 04-05.
    35. Angel-Urdinola, Diego F., 2008. "Can the introduction of a minimum wage in FYR Macedonia decrease the gender wage gap?," Social Protection Discussion Papers and Notes 46851, The World Bank.
    36. Forteza, Alvaro & Ourens, Guzman, 2009. "How much do Latin American pension programs promise to pay back?," Social Protection Discussion Papers and Notes 52447, The World Bank.
    37. Almeida, Rita & Carneiro, Pedro, 2008. "Mandated benefits, employment, and inequality in a dual economy," Social Protection Discussion Papers and Notes 45051, The World Bank.
    38. Alvaro Forteza & Ignacio Apella & Eduardo Fajnzylber & Carlos Grushka & Ianina Rossi & Graciela Sanroman, 2009. "Work Histories and Pension Entitlements in Argentina, Chile and Uruguay," Working Papers 32, Superintendencia de Pensiones, revised Sep 2009.
    39. Holzmann, Robert, 2010. "Bringing Financial Literacy and Education to Low and Middle Income Countries: The Need to Review, Adjust, and Extend Current Wisdom," IZA Discussion Papers 5114, Institute of Labor Economics (IZA).
    40. Braithwaite , Jeanine & Mont , Daniel, 2008. "Disability and poverty : a survey of World Bank poverty assessments and implications," Social Protection Discussion Papers and Notes 42754, The World Bank.
    41. Eliana La Ferrara & Alberto Chong & Suzanne Duryea, 2012. "Soap Operas and Fertility: Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 1-31, October.
    42. Thorsten Beck & Asli Demirgüç-Kunt & Patrick Honohan, 2009. "Access to Financial Services: Measurement, Impact, and Policies," The World Bank Research Observer, World Bank, vol. 24(1), pages 119-145, February.
    43. Barrett , Christopher B & Carter , Michael R & Ikegami , Munenobu, 2008. "Poverty traps and social protection," Social Protection Discussion Papers and Notes 42752, The World Bank.
    44. Angel-Urdinola, Diego F. & Semlali, Amina & Brodmann, Stefanie, 2010. "Non-public provision of active labor market programs in Arab- Mediterranean countries : an inventory of youth programs," Social Protection Discussion Papers and Notes 55673, The World Bank.
    45. Shaun Mundy, 2009. "Financial Education Programmes in Schools," OECD Journal: General Papers, OECD Publishing, vol. 2008(3), pages 53-127.
    46. Vodopivec, Milan & Arunatilake, Nisha, 2008. "The Impact of Population Aging on the Labor Market: The Case of Sri Lanka," IZA Discussion Papers 3456, Institute of Labor Economics (IZA).
    47. World Bank, 2008. "Finance for All? Policies and Pitfalls in Expanding Access," World Bank Publications - Books, The World Bank Group, number 6905.
    48. Koettl, Johannes, 2009. "Human trafficking, modern day slavery, and economic exploitation," Social Protection Discussion Papers and Notes 49802, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cecile T. Niang & Mihasonirina Andrianaivo & Katherine S. Diaz & Sarah Zekri, 2013. "Connecting the Disconnected : Coping Strategies of the Financially Excluded in Bhutan," World Bank Publications - Books, The World Bank Group, number 13104.
    2. Bettina Greimel-Fuhrmann & Maria Antoinette Silgoner & Rosa Weber, 2015. "Financial literacy gaps of the Austrian population," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 35-51.
    3. Holzmann, Robert, 2010. "Bringing Financial Literacy and Education to Low and Middle Income Countries: The Need to Review, Adjust, and Extend Current Wisdom," IZA Discussion Papers 5114, Institute of Labor Economics (IZA).
    4. Lucia Dalla Pellegrina & Giorgio, Di Maio & Paolo Landoni & Beatrice Rama, 2019. "Activating women cognitive abilities: Impact of a financial literacy pilot program in India," Working Papers 412, University of Milano-Bicocca, Department of Economics, revised May 2019.
    5. Claude Bernard Lontchi & Baochen Yang & Yunpeng Su, 2022. "The Mediating Effect of Financial Literacy and the Moderating Role of Social Capital in the Relationship between Financial Inclusion and Sustainable Development in Cameroon," Sustainability, MDPI, vol. 14(22), pages 1-24, November.
    6. Carpena, Fenella & Zia, Bilal, 2020. "The causal mechanism of financial education: Evidence from mediation analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 143-184.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lord, Janet & Posarac, Aleksandra & Nicoli, Marco & Peffley, Karen & Mcclain-Nhlapo, Charlotte & Keogh, Mary, 2010. "Disability and international cooperation and development : a review of policies and practices," Social Protection Discussion Papers and Notes 56092, The World Bank.
    2. James, Estelle, 2009. "Rethinking survivor benefits," Social Protection Discussion Papers and Notes 52919, The World Bank.
    3. Piggott, John & Sane, Renuka, 2009. "Indexing pensions," Social Protection Discussion Papers and Notes 52445, The World Bank.
    4. Chae, ChangKyun & Chung, Jaeho, 2009. "Pre-employment vocational education and training in Korea," Social Protection Discussion Papers and Notes 52186, The World Bank.
    5. Woo, Kye Lee, 2009. "Productivity increases in SMEs : with special emphasis on in-service training of workers in Korea," Social Protection Discussion Papers and Notes 51251, The World Bank.
    6. Milan Vodopivec, 2013. "Introducing unemployment insurance to developing countries," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    7. Woolford, Geoff, 2009. "Social protection for migrants from the Pacific Islands in Australia and New Zealand," Social Protection Discussion Papers and Notes 49174, The World Bank.
    8. Koettl, Johannes, 2009. "Human trafficking, modern day slavery, and economic exploitation," Social Protection Discussion Papers and Notes 49802, The World Bank.
    9. Makhema, Mpho, 2009. "Social protection for refugees and asylum seekers in the Southern Africa Development Community (SADC)," Social Protection Discussion Papers and Notes 49168, The World Bank.
    10. Avato, Johanna & Koettl, Johannes & Sabates-Wheeler, Rachel, 2009. "Definitions, good practices, and global estimates on the status of social protection for international migrants," Social Protection Discussion Papers and Notes 49172, The World Bank.
    11. Ferrer, Ana M. & Riddell, W. Craig, 2009. "Unemployment insurance savings accounts in Latin America : overview and assessment," Social Protection Discussion Papers and Notes 49173, The World Bank.
    12. Kuddo, Arvo, 2009. "Structural educational reform : evidence from a teacher's displacement program in Armenia," Social Protection Discussion Papers and Notes 47164, The World Bank.
    13. Milan Vodopivec & Lilijana Madjar & Primoz Dolenc, 2009. "Non-performance of the Severance Pay Program in Slovenia," Financial Theory and Practice, Institute of Public Finance, vol. 33(1), pages 89-102.
    14. Ra, Young-Sun & Shim, Kyung Woo, 2009. "The Korean case study : past experience and new trends in training policies," Social Protection Discussion Papers and Notes 53696, The World Bank.
    15. Forteza, Alvaro, 2008. "The portability of pension rights : general principals and the Caribbean case," Social Protection Discussion Papers and Notes 46188, The World Bank.
    16. Almeida, Rita & Carneiro, Pedro, 2009. "The return to firm investments in human capital," Labour Economics, Elsevier, vol. 16(1), pages 97-106, January.
    17. Rofman, Rafael & Fajnzylber, Eduardo & Herrera, German, 2008. "Reforming the pension reforms : the recent initiatives and actions on pensions in Argentina and Chile," Social Protection Discussion Papers and Notes 90346, The World Bank.
    18. Valdés-Prieto, Salvador, 2008. "A theory of contribution density and implications for pension design," Social Protection Discussion Papers and Notes 90344, The World Bank.
    19. Vodopivec, Milan & Arunatilake, Nisha, 2008. "Population aging and the labor market : the case of Sri Lanka," Social Protection Discussion Papers and Notes 44927, The World Bank.
    20. Almeida, Rita & Carneiro, Pedro, 2009. "Enforcement of labor regulation and firm size," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 28-46, March.

    More about this item

    Keywords

    Financial Literacy; Access to Finance; Access&Equity in Basic Education; Education For All; Poverty Impact Evaluation;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:hdnspu:56501. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aaron F Buchsbaum (email available below). General contact details of provider: https://edirc.repec.org/data/wrldbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.