The World Bank Drives Financial Literacy Gains, Country by Country

Topping global financial literacy news is the announcement by the World Bank and the Bank of Papua New Guinea (BPNG) of the launch of the National Survey on Financial Capability, marking the latest in many recent moves by the World Bank to foster improved financial literacy in nations throughout the world.  The National Survey of Financial Competency is focused on enhancing financial capability in PNG and initially will create an important baseline among varying PNG income groups in connection with financial education and aptitude. The baseline results will shed more light on the status of financial literacy in PNG, including in areas such as the understanding of financial products, skills in money management, and the level of focus among PBG citizens on longer-term financial planning.

One of the key elements that differentiates the PNG National Survey of Financial Competency from other country-specific financial literacy initiatives pursued by the World Bank is the breadth of areas sought to be captured by the survey.  Specifically, the study will seek to capture information from individuals and families in both urban and rural regions, coastal and highland communities, and across a broad income spectrum. The study is introspective in terms of analyzing the status of financial education with PNG, but it also will compare the financial capability of the PNG population with that of other countries.

The announcement by the World Bank and the Bank of Papua New Guinea represents just the latest of many recent World Bank efforts focused on financial literacy, financial capability, and financial inclusion throughout the world.  A growing recognition of the importance of financial literacy in education, health, finance and the larger economies of countries far and wide has led to this stepped up effort among many location, national and international organizations to improve the financial health of citizens in both developed and developing countries.

The Financial Education and Financial Literacy Project in the Russian Federation is another example of the World Bank’s recent efforts. The objective the Project is to both enhance the financial literacy of Russian citizens and improve the foundations for improving consumer protection in financial services.  By delving into the financial capabilities of individual countries like the Russian Federation and Papua New Guinea, the World Bank also is setting an important best practice in the analysis and implementation of financial education programs throughout the world; namely, the recognition that each country has its own unique challenges and potential successes, and that each country must develop its own tailored implantation plan to best address the woes stemming for poor financial education among its citizens.

The World Bank’s efforts also mirror the programs, services and initiatives being rolled out by thousands of community-based organizations that have emerged in force in a vast number of regions throughout the world whose missions all are focused on improved financial literacy.  With the World Bank’s continued country-specific focus, combined with its meaningful level of support and resources devoted to each such initiative, the success of financial education programs touched by these efforts should improve materially in years ahead.