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March 2008

East Asia economy - How low can this cycle go?

"Testing Times Ahead" is the title of the World Bank’s just released April 2008 East Asia and Pacific Update.   As one of the team that put it together, I thought – before tottering off to bed – that readers might like a quick take - and a chance to comment - on some of the findings. 

Economic outlooks are always uncertain, to be sure, but the level of uncertainty about prospects for the world economy just now is extraordinary. That matters in a region as highly globally integrated as East Asia.   Forecasts for the US economy have been sliding lower for months but what’s less clear is how deep and protracted the downturn will be – underlying which are uncertainties about how much more widespread and intense the global financial turmoil that began last August will get.

When the Filter Distorts, When the Prism Refracts

Photo Credit: Flickr user fdecomiteOne of the foundational commitments of CommGAP is the belief that a national democratic public sphere is an essential and self-perpetuating part of the architecture of good governance. At the very heart of a democratic public sphere is a media system that is independent of government control and is both free and plural. It must be possible for a thousand flowers to bloom; it must be possible for a boisterous cacophony of voices to be heard. We believe that such a media system will be the grand forum for public debate and discussion on issues of common concern. We believe that such a media system will be a grand corrective of political misdeeds.

A world first – Fair trade cashews for biodiversity conservation

Much is written about the effectiveness of encouraging alternative livelihoods in conservation. One argument runs that if you can find an alternative income for someone who currently exploits a natural resource unsustainably or illegally, then the exploitation will cease and biodiversity will be conserved.  The counter argument is that the alternative is actually used as a supplementary income, making it possible for the miscreant to buy a bigger chainsaw or truck for larger scale resource exploitation. Clearly some sort of alternative is needed, but how can it be used unequivocally for conservation?

These were the problems facing one of my projects focusing on the conservation of the Lambusango forest block, at the southern end of Buton, an island to the southeast of SE Sulawesi in the middle of Indonesia. This forest is home to many of Sulawesi’s many endemic species, especially the small but belligerent wild buffalo or Anoa.

Putting the "P" back in Poverty

For those of us who grew up in developing countries, political discourse about poverty is an everyday thing. Political campaigns in the Philippines, for example, place poverty upfront and center. Candidates for local posts, such as barangay (village) councilor, all the way up to the highest office in the archipelago invariably campaign on poverty issues. For instance, memorable slogans from relatively recent elections include "para sa mahirap" ("for the poor") and "pagkain sa bawat mesa" ("food on every table"). Not at all surprising in developing country contexts where poverty and inequality are so ubiquitous.

These reflections ran through my head as I attended a brown bag lunch CommGAP organized a couple of weeks ago on a Panos London publication entitled "Making poverty the story: Time to involve the media in poverty reduction", authored by Angela Wood and Jon Barnes. Presented by Barnes at the brown bag, it incorporates research findings from six African and Asian countries. The paper makes the case that mainstream media are essential in boosting public awareness and debate on poverty reduction.

Fridays Academy: Gender and Macroeconomics

As usual on Fridays, from  Raj Nallari and Breda Griffith's lecture notes.

 

Gender and Macroeconomic Aggregates

 

Differences in the behavior of men and women may lead to different macroeconomic outcomes, particularly for such important macroeconomic aggregates as private consumption, saving and investment, and composition of government expenditure.  Gender budgeting has become an important issue in most countries over the past few decades and we will examine the methods and country-experience of gender budgeting in future postings.  The next weeks we will examine gender and consumption and gender and savings. We first contextualize the discussion by examining the linkages between the household and its gender composition and macroeconomic aggregates. 

 

The Household and Macroeconomic Aggregates

Let's talk governance and growth

What is good governance, and how should we measure it?  What impact does governance have on growth?  Even if good governance predicts positive outcomes over the long term, what effect does it have in the short term?  Dani Rodrik, well-known development economist and head of Harvard’s graduate program in public administration and international development, raises as many questions as he answers in this blog post; a recent article in The Economist addresses similar issues.  There’s a lot of interest these days in the question of how to best define and measure governance -- we’ll write more about this in the coming weeks.

Grassroots Business Initiative shows social enterprises how to fish

The Grassroots Business Initiative (GBI) is the brainchild of the World Bank Group’s International Finance Corporation (IFC).  Launched in 2004, the GBI supports innovative social enterprises – dubbed Grassroots Business Organizations (GBOs) – that directly engage the poor as entrepreneurs, consumers, employees and suppliers, offering financing and capacity building know-how to GBOs.

With some 30 projects throughout the world, the GBI is increasingly active in Asia.  In Cambodia and Indonesia the GBI works with CraftNetwork, a design and export promotion center that links international buyers with producers of high-quality handicrafts.  CraftNetwork recently launched a new e-commerce site, and also has an eBay storeDigital Divide Data, another GBI-supported Cambodian social enterprise, trains poor and disabled people in computer and English skills, answering a global business need for basic data services.  DDD has already passed the $275,000 mark providing information and communications technology (ICT) services to clients such as Harvard University’s Crimson newspaper

World Bank Institute (WBI) alumni

The World Bank Institute (WBI) has created WBI alumni, a web page for alumni from our courses (face to face, via video conference or E-learning). You can sign up to receive their quarterly newsletter, to stay informed about WBI initiatives, events, publications, and other resources.

Stay tuned for the announcement here of an Internet "Export Development and Diversification" course. Coming soon.

Don't literally tear down the Ming-dinasty wall, but build on it --figuratively: Tourism for development in China

Only pedestrians and bikes are allowed on Pingyao's main street.

China’s coastal areas have benefited the most from reform and opening up because they were allowed to go first and also because their geography gives them better connection to the global market.  But now some of China’s lagging interior regions are turning their disadvantages to advantages.  Developing later, some interior towns have the opportunity to preserve their ancient character and use this as an asset to attract tourists and create jobs. 

My family got to see this first-hand on a weekend trip to Pingyao, one of the best preserved ancient cities in China.  Most cities long ago tore down their city walls to make way for development.  People in Pingyao joke that their city was too poor to tear down their massive Ming-dynasty wall, so it is one of the few left completely intact.  Now the city sees it as a valuable asset, and has had the good sense to ban motor vehicles in the inner city, creating a lovely walking/biking environment through its beautiful ancient streets. 

Governance Reform and the Role of Communication

Photo Credit: Tony LambinoCommGAP held a 3-day training program for senior government official undertaking reform programs on the role communication and participation can play in their reforms. Thirty government officials from 15 countries in Africa and Asia participated.  The value of a group like this is that they offer real world experiences in having undertaken reforms that have been successful or have failed and can offer lessons on what needs to be done to make reforms happen.

To me the training pointed out and the comments reinforced the perspective that the role communication plays in the reforms is equal to or greater than the policy work, yet the funding and support for governments in the area of communication or to make sure that the reforms get implemented is virtually nonexistent.

Tracking wildlife in Lao - Day six: From Camp 6 to Ban Navang

Arrived at Ban Navang! Arlyne and Tony with some of the villagers who were working on the wildlife monitoring.

Feb. 9, 2007* - This morning we, sadly, had to make our way out of the forest. We had our breakfast and left around 6:30 am as the transect teams were leaving to do their last day (day four) of their surveying in this area (tomorrow they’ll move to a new location).

The walk on the trail back was absolutely stunning. It is such a beautiful forest, it’s hard to describe and no adjective would probably ever do it justice. On the walk back we got lucky again and saw some Douc Langurs! They really are amazing creatures. And they sure make some giant leaps as they make their way from tree to tree.

We stopped midway to have lunch, and reached Ban Navang shortly after 3 pm (about a 16-kilometer walk from Camp 6, towards the opposite direction than Tha Phai Ban). Ban Navang is a very nice, but very poor, village of about 310 people. With support from the WMPA they have been able to build water wells, a school, and the typical “toilet houses” you see in Lao villages: small, little houses made up of wood and palm leaves with a squat toilet. They also have some water wells where Arlyne and I bathed today.

The Sound of Music

I was surfing the web, looking for some material on “leadership”, when I came across this music video-clip which I found striking and wanted to share with you. And not because it is my favorite type of music… 

Asian Eco-Trend: “Green” Hotels

Jennifer Conlin of The New York Times reported recently on a global trend already sweeping through Asia and the Pacific -- the green hotel.   It was just a matter of time before environmentally-friendly practices and the business “bottom line” struck up what looks to be a promising long-term relationship.  Add growing consumer interest, combined with the cost savings realized through energy-saving and conservation strategies, and we have the makings of an eco-boom in tourism.  Case in point:  the eight-room Old Bangkok Inn, which uses solar energy to heat the hot water for the entire hotel, room sensors to shut down lights and appliances when a guest leaves the room, and features locally produced furnishings for the rooms, as well as local food specialties for every breakfast.

Fridays Academy: Gender and Macroeconomics

As usual on Fridays, from  Raj Nallari and Breda Griffith's lecture notes.

 
Engendering Macroeconomic Models

Ça?atay (1998) identified three ways in which models can be useful for integrating gender into macroeconomic models. First, models that encourage theoretical precision are instrumental in organizing knowledge and giving direction to research by focusing on the types of data that need to be collected. Second, models foster communication with the mainstream economics profession and may influence and/or change prejudices. Third, models inform policy-making and have practical implications.  Against these three premises, Ça?atay offers four approaches to gender-aware macroeconomic modeling, discussed below.  

Tracking wildlife in Lao - Day five: Camp 6

Feb. 8, 2007* - Second day of transect for us and third for the team. Arlyne and I joined a different group today, while Tony and Jim joined our group from yesterday. Our most interesting viewings today were Brown Hornbills – big birds about 70 centimeters tall, with a tucan-like beak, and sitting very high up in the trees – and a Giant Black Squirrel, just sitting there, with its large, bushy tail that made it look kinda like a skunk from where I was sitting (with my binoculars about 200 meters away.) The animals were so beautiful! I never imagined getting this excited about seeing a bird, squirrel or monkey, particularly when they are hundreds of meters away! But it’s exciting stuff! Like Tony says… the “WOW” factor: that moment when you first say “wow” and your perspective changes forever….

Perhaps almost as amazing as seeing the wildlife is noting the talent of these men in spotting things that are hundreds of meters away (granted they used to hunt for a living). While they have binoculars as well, they mainly spot the animals with their bare eyes, it’s incredible! I could barely see the hornbill at first, and they could just tell from hundreds of meters away, that high up on a tree, was a silhouette next to some leaves (which was a hornbill). I guess Arlyne and Tony are right; these are just the skills that they develop on a daily basis.
Lao Jungle Diary 5

Have capital controls helped or hindered Asian financial markets?

Thailand made financial news on March 3 by lifting capital controls on the Thai Baht that were imposed 14 months ago.  The Bank of Thailand (BOT), the central bank, had imposed the measures to limit the rapid appreciation of the Baht against the US Dollar, which was reportedly hurting exports, and to prevent speculative investment in the capital markets.  Thailand’s capital controls imposed in December 2006 did not stem the appreciation of the currency (the Baht appreciated by about 14% since that time) and in spite of this appreciation, exports rose by over 30% in 2007.  This leaves open two key questions: (1) if the controls did not ultimately prevent the currency from appreciating, what impact did they have on financial market development? and (2) what can the rest of Asia learn from this incident, if anything? 

Thailand’s original capital control required that 30% of ¬all foreign capital inflows be deposited with the central bank for a year without interest.  This triggered a 15% one-day sell-off in the stock market – the biggest one day drop in its history – which wiped out US$ 22 billion in market value and caused other emerging markets to also suddenly drop.  This forced the BOT to immediately exempt foreign equity inflows from the capital controls. 

Migration, Remittances and Development

The World Bank organized today a discussion on the linkages between migration, remittances and development, on the occasion of the launching of the Migration and Remittances Factbook 2008.
 
Two of the speakers, Jason DeParle and Dilip Ratha, were respectively the writer and the main subject of an interesting article published in the New York Times last Monday: World Banker and His Cash Return Home.

 Demetrios Papademetriou, Co-founder and President of The Migration Policy Institute (MPI), also gave his point of view about the linkage (or lack thereof) between migration policies and development. The Migration Policy Institute’s website is a great source of information on this topic.

For more information, check also the World Bank's Migration and Remittances site.

 

Tracking wildlife in Lao - Day four: Camp 6

Mr. Xaypanya signals on the map where we went that day while Tony and Arlyne, on the left, and Jim and I, on the right, watch.

Feb. 7, 2007* - Although this was my first transect ever, and our first transect here, it was the team’s second day. We woke up at 5:30 am, had breakfast, and left for the transect just before 7 am. Arlyne and I joined one group, while Tony and Jim joined another. In each group there are generally three people (usually men in this case): the leader and another “observer” (looking out for species) and a guard (just in case).

The idea of the transect is to cover about two kilometers of territory, in a straight line (which is set up on the first day following GPS location and compass bearing), slowly and quietly, listening and looking out for the species. Why five types in our case? According to Arlyne, they chose these five because they generally are relatively easy to either hear or see in this forest but are also some of the most threatened by hunting – a big concern in the NT2 Watershed.

The aim of the survey is, then, to measure the abundance of these five species over each transect, repeating it every four years, for 30-years (the period financed by the Nam Theun 2 Power Company), which will allow the WMPA to track whether wildlife levels have been maintained, increased or decreased (and thereby assess whether protection efforts are working).

Markets and the Hammer of Public Opinion

Photo Credit: Flickr user rednuhtPublic opinion is a critical force in politics, including all aspects of governance. To provoke hostile or negative public opinion is to invite a gigantic hammer or a wrecking ball. And I am saying that not because I want to be dramatic but to capture some of the scale of what is happening in the current global financial crisis. For, financial markets are also affected by the power of public opinion. In fact, what market analysts and pundits often describe as public sentiment or market confidence is really the working of public opinion. The point is that whether the market trades in electoral votes or financial securities public opinion is a critical force. It is always better to have public opinion on your side.

Spend a few minutes at Freerice.com next time you're about to start a new Sudoku

Rice prices keep going up, but freerice.com allows anyone to donate rice by playing a simple vocabulary game: You just make a guess at what a particular word means, and... if you get it right, you've just donated 20 grains of rice to be distributed through the UN World Food Program.

And the site wants you to get it right as often as possible, so based on your results, it automatically adjusts your level of vocabulary and you get words it expects you to know. The rice is paid for by the advertisers on the site.

Inclusion for Change – Peace and Otherwise

Photocredit: Flickruser Danny HammontreeI recently attended an event hosted by the New America Foundation. Shlomo Ben-Ami, former Israeli Foreign Minister and Minister of Public Security , spoke about the shortcomings of the Annapolis Middle East Peace Process, how to address them, and the broader regional picture. In his discussion about the requirements for brokering peace in the region, Ben-Ami stressed the importance of including powerful non-state actors in the process. He underlined that, in order to get the “buy-in” of the general Palestinian population any agreement between the Israelis and the Palestinians needed, in addition to President’s Abbas’ democratic legitimacy, to be legitimized by the support of popular leaders among the militia leaders and prisoners. The former Minister pointed out that in the Palestinian society, as well as in the region at large, powerful socio-cultural-political forces had emerged that needed to be included in the negotiation process if it was meant to succeed. He sternly warned that any furthering of the current policy of exclusion would mean an end to the Annapolis process and preclude progress towards a peaceful settlement of the conflict and the two-state solution. His assessment is being shared by Henry Siegmann, Director of the Council on Foreign Relations’ United States/Middle East Project.

Following a great explorer to a forest people in Indonesia

I'm a wildlife biologist.  I'm among the very few lucky World Bank staff to get paid to climb up mountains, go down caves, trek through forests, meet remote forest inhabitants, and to argue the conservation case with senior government officials. But how does this fascinating work translate into Bank projects? Well, it means I work on pure biodiversity conservation projects, on others' projects to add biodiversity value, and on pioneer biodiversity initiatives. It's rather appropriate that I should be writing my first blog on the small Indonesian island of Ternate. It was from here, exactly 150 years ago in 1858, that naturalist and traveller Alfred Russel Wallace wrote to Charles Darwin from a small house somewhere close to my guesthouse.

Fridays Academy: Gender and Macroeconomics

The Fridays Academy arrives on a Saturday this week, due to some technical problems. As usual, from  Raj Nallari and Breda Griffith's lecture notes.
 
 
Gender Databases
 
The United Nations Economic Commission for Europe (UNECE) Gender Statistics Database was released in May 2003 with the aim of monitoring gender in all UNECE member countries and evaluating the effectiveness of policies.  The database is a principal component of the gender statistics website developed and maintained by UNECE in association with the national statistics offices.  The website was initiated in October 2000 to strengthen national statistical capacity in the production, quality and use of gender statistics in countries, in particular the transition countries. A number of international bodies are active in the CIS, SEE region collecting, producing, disseminating and monitoring gender statistics – the UNECE, UNDP, World Bank, FAO, UNFPA, US Census Bureau/USAID.  

The Gender Statistics Database of the UNECE presents sex-disaggregated social data.  The data covers the common gender indicators – population, families and households, work and the economy, education, public life and decision making, health, crime and violence – as well as the data series that are used to calculate these indicators. Fifty two countries contribute data through the gender statistics focal points from national statistics offices, for 1980, 1990, 1995 and annually from 2000 to 2006.