The production and consumption of coal are increasing in some developing countries, even as concerns about coal's environmental impact mount. The World Bank has launched a new initiative to encourage reforms that will lead to a cleaner and more efficient use of coal. Also in this Issue Developing Rural Financial Markets Jacob Yaron and McDonald Benjamin Many developing countries have tried to spur income growth and reduce poverty in rural areas by making low-interest loans to farmers. The results have been disappointing. A broader approach emphasizing policy and legal reforms and savings mobilization has been more successful.
Many economists think that countries can boost national saving by privatizing public pension plans.
The evidence suggests, however, that less radical reforms may be just as effective.