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Poverty

What will 2013 look like for Kenya’s economy?

Wolfgang Fengler's picture

The dawn of a new year is a good time to reflect on the past year and look ahead. As it turns out, 2012 was a pretty average year for Kenya, mainly because the much anticipated national and regional elections, which will determine the course of the nation and its economy for years to come, were postponed to March next year.

Why do I say that 2012 was such a normal economic year for Kenya? Let’s rewind 12 months back. Kenya was facing major macroeconomic challenges: inflation stood at almost 20 per cent, the exchange rate was volatile and public debt increased markedly due to the weakening shilling. Economic pessimists predicted a global economic storm as the challenges in the euro-zone seemed unmanageable.

What do we know about wages in Tanzania?

Jacques Morisset's picture

Let's think together: Every Sunday the World Bank in Tanzania in collaboration with The Citizen wants to stimulate your thinking by sharing data from recent official surveys in Tanzania and ask you a few questions.

How much a worker earns for her or his labor is important for different reasons. First, it matters with regard to poverty since labor income counts usually for an important share of households' revenue. Secondly, it influences firms' competitiveness, especially for labor intensive activities such as manufacturing and agriculture. Thirdly, it is relevant for equity as anybody should expect a fair remuneration for his efforts. It is therefore not surprising that wages have attracted a lot of attention from economists and policy makers across the world over the years.

Creating more and better jobs in Kenya

Wolfgang Fengler's picture

Jobs are central to our lives: after all, we spend most of our time at work, trying to make a living. And it’s not just about what we earn. As the 2013 World Development Report argues, our work fundamentally defines who we are as people with important implications for our social relations and psychological well-being.

Each year, there are one million new Kenyans. Unlike in the past, this rapid population growth is driven by people living longer instead of having more children. This means that an increasing share of the population is of working age. What does it mean for Kenya’s economy and social stability? How can these young adults find a job—ideally a good job—and what needs to be done to help them succeed?

Mountains of gold: A blessing or a curse for Tanzania?

Jacques Morisset's picture

Let's think together: Every week the World Bank team in Tanzania wants to stimulate your thinking by sharing data from recent official surveys in Tanzania and ask you a couple of questions. This post is also published in theTanzanian Newspaper The Citizen every Sunday.

Gold, gems, uranium, coal, iron, copper and nickel…Tanzania is rich in mineral resources. These 'treasures' have attracted considerable attention within the country and abroad. It is estimated that over 500,000 Tanzanians are employed in this sector, principally in traditional small scale activities.

The sector has also attracted enormous foreign direct investment. As a result, the mining sector has been one of the driving forces of the Tanzanian economy over several years as illustrated by the following statistics:

Data – The next frontier of Development

Wolfgang Fengler's picture

How is the digital tide taking care of the digital divide? Do you remember the digital divide? At the start of the new millennium, there was global concern that poor countries, especially in Africa, would be twice left out: economically and also technologically. Fortunately, the digital divide never became a global challenge. In fact, it is closing faster than anyone had imagined. In some parts of the developing world there are even budding signs of possible digital overtaking.

Kenya is one of few African countries driving in the fast lane. Over the past decade, it has experienced a sweeping “digital tide”. Today, Kenya will cross the 30 million threshold of active cell phone numbers, up 29,000 from 12 years ago! Almost everyone can now afford to buy a phone, which sell for as little as Ksh 500 (or US$5) on the flourishing second hand market.

When people don’t behave according to economic models

David Evans's picture

What falls outside the standard assumptions and models of economics?  How does that matter for development?  Last week, the Africa Chief Economist’s Office and the Development Economics Research Group of the World Bank sponsored a star-studded course exploring exactly this issue.

Nobel Prize winner George Akerlof highlighted how, because of all the advantages of markets, we ignore the traps that come along with them.  Sellers can deceive buyers and prey on their unconscious biases, lack of self-control, and naiveté. 

Using his famous “lemons” market example, Akerlof showed that, instead of there being no equilibrium, naïve buyers will in equilibrium buy poor-quality used cars. He calls this phenomenon “Phishing for Phools”.

Time for high quality education for all?

Waly Wane's picture

Let's think together: Every week the World Bank team in Tanzania wants to stimulate your thinking by sharing data from recent official surveys in Tanzania and ask you a couple of questions. This post is also published in theTanzanian Newspaper The Citizen every Sunday.

Education is key. As foundations go, there is none more important than this one – in achieving progress as well as in sustaining it.

Since the introduction of free primary education in 2001, Tanzania has achieved significant progress in improving access to basic education. Primary school attendance of children aged 7 to 13 years increased from 54 percent in 1999 to almost 80 percent in 2010. Yet Tanzania also still has one of the lowest primary-to-secondary transition rates in sub-Saharan Africa (at just 41 percent in 2009), with girls being particularly disadvantaged. In addition, standardized assessments have revealed that the quality of education is insufficient to provide students with the most basic numeracy and literacy skills. In 2011, Tanzania scored much lower than Kenya or Uganda in these assessments.

Not only does Tanzania still lag in terms of educational outcomes compared to neighboring countries but also the quality of education varies tremendously depending on where you live in the country:

Cervical Cancer Undermines Gender Equality in Africa

Patricio V. Marquez's picture

This blog post is co-authored with: Sheila Dutta

The 2012 World Development Report (WDR) “Gender Equality and Development” found that, while many disadvantages faced by women and girls have shrunk thanks to development, major gaps remain.

A significant gap is the excess female mortality in many low- and middle income countries, especially in childhood and during reproductive years. Cervical cancer —a preventable condition that usually results from a viral infection by the human papillomavirus (HPV) that is generally sexually transmitted— is one of the leading causes of premature death and ill health among women in sub-Saharan Africa.  As the figure shows, the Eastern, Western and Southern African regions have the highest incidence rates of cervical cancer in the world.  Rates exceed 50 per 100,000 populations and age-standardized mortality exceeds 40 per 100,000 populations. 

Where is my cow? Theft and disease of livestock increase poverty in rural Tanzania

Jacques Morisset's picture

Let's think together: Every week the World Bank team in Tanzania wants to stimulate your thinking by sharing data from recent official surveys in Tanzania and ask you a couple of questions. This post is also published in theTanzanian Newspaper The Citizen every Sunday.

About 70 per cent of the world’s 1.4 billion extreme poor rely on livestock to sustain their livelihood, according to the Food and Agricultural Organization (FAO, 2009). Not only does livestock provide meat and milk for consumption, it also helps increase agricultural productivity through manure which is an organic fertilizer and draft power.

Because it can be readily marketed to generate income, livestock also reduces the vulnerability of poor households to external shocks. But this crucial resource is also susceptible to many risks including drought, disease, and theft.
 
In Tanzania, as of October 2010, there were more than 17 million heads of large livestock

How can the mobile revolution lift up Tanzania’s poor?

Isis Gaddis's picture

Let's think together: Every week the World Bank team in Tanzania wants to stimulate your thinking by sharing data from recent official surveys in Tanzania and ask you a couple of questions. This post is also published in the Tanzanian Newspaper The Citizen every Sunday.

Sub-Saharan Africa has experienced a boom in mobile phone users over the past decade. The total number of cell phone subscriptions on the continent increased from just over 11 million in 2000 to 463 million in 2011 and is expected to grow even further. This technology not only affects day-to-day life and communication, but has the potential to boost economic development directly and indirectly.

In creating jobs, for instance, mobile phone technology has contributed towards the reduction of poverty. But more important are its indirect effects on the economy such as the increased connectivity of firms and micro-enterprises which increases their access to information and facilitates the movement of money through mobile transfers.

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