Hot on the heels of Hurricane Sandy, Typhoon Bopha lashed the shores of the Philippines earlier this month, leaving 900 dead and 80,000 homeless. Extreme weather is becoming the norm. The World Bank-commissioned report, “Turn Down the Heat: Why a 4°C Warmer World Must be Avoided” found that scientists are unanimously predicting warming of 4 degrees Celsius by the end of the century. The social, economic, and environmental consequences will be devastating. Over the past 20 years, over half of South Asians – more than 750 million people – have been affected by natural disasters, with the loss of life estimated at more than 60,000, and damages above $45 billion.
This is the third in a series of six posts about the recent report, Bangladesh: Towards Accelerated, Inclusive and Sustainable Growth. The last post, The Paradox That Bangladesh Isn’t, explained the sources of GDP growth over the past two decades. Next week's post will look at how the country can achieve its goal of middle income status by 2021.
The World Bank’s report “Bangladesh: Towards Accelerated, Inclusive and Sustainable Growth—Opportunities and Challenges” observes that growth in Bangladesh has been resilient at above 6 percent in recent years, despite several external shocks that slowed exports, remittance and investment growth. Since 2006, Bangladesh has faced political uncertainty (2006-2007); two major floods, the disastrous cyclone Sidr, and Avian Flu (last half of 2007); food and energy price crises (first half of 2008); global financial meltdown and recession (2008-2009); political transition followed by mutiny (first half of 2009); and rapid deterioration of the power and gas supply situation (first half of 2010). Currently, it is braving the impact of Euro area crisis and internal uncertainties surrounding the expected political transition in early 2014. These exogenous shocks resulted in a decline in the efficiency of investment, but the private investment rate itself managed to grow at a rate faster than the growth of GDP while the public investment rate declined. The economy has demonstrated resilience time and again.
“The World Bank is organizing an art show?” My neighbor seemed stunned. He has just got to know me, since I moved to India only in early September. To him I am the economist who moved to India from Washington. Quite possibly, he thinks I have come to India to try and tell the government what to do.
“Why?” He asked. I told him it was because we wanted to stimulate thinking about South Asia’s common future. “Why?” he insisted. I told him many other regions in the world have discovered that a common future brings better lives to citizens than separate futures. “Aha!” he said, “you want to promote free trade”. He thought he had recognized me again.
It was a most interesting conversation to me. The art show had not been my idea, but it felt very natural to me. After all, my wife is a painter and photographer, and I have therefore helped organize many art shows in the past. But this one is very different. It's a group exhibit by the winners of a competition we launched in all countries of South Asia.
This is the second in a series of six posts about the recent report, “Bangladesh: Towards Accelerated, Inclusive and Sustainable Growth”. The first post was Better Jobs Can Outweigh a Secure Life. Next week’s post will look at how Bangladesh’s economy has remained resilient despite global and local shocks over the past few years.
Bangladesh lacks natural resources and good governance. It is beset by natural calamities. Corruption and self-destructive political non-cooperation are common. Yet Bangladesh’s GNI per capita more than tripled in the past two-and-a-half decades, from an average of US$251 in the 1980s to US$851 by 2012. This growth was accompanied by impressive progress in human development. Growth in GNI came almost entirely from growth in GDP in the 1980s and 1990s, but this changed in the last decade due to a surge in remittances from Bangladeshi workers abroad. GDP growth has accelerated by a percentage point and per capita GDP growth has accelerated by 1.7 percentage points in each of the last four decades. A recently published World Bank report, “Bangladesh: Towards Accelerated, Inclusive and Sustainable Growth—Opportunities and Challenges” explains how Bangladesh managed to beat the odds.
Where did GDP growth come from?
- United States
- United Kingdom
- South Africa
- The World Region
- South Asia
- Middle East and North Africa
- Latin America & Caribbean
- Europe and Central Asia
- East Asia and Pacific
- Communities and Human Settlements
It’s no secret that renewable energy development in developing countries is on the rise. In its most recent report on renewable energy investment, the UN states that investment in renewables in developing countries has grown over ten-fold – from USD 8 billion to USD 89 billion in the past eight years. When taking advantage of solar resources, the clear choice – assisted by large recent reductions in capital cost - has been for solar photovoltaic technologies (Solar PV).
On Nov. 7, 2012, a motorboat carrying 110 illegal immigrants heading for Malaysia capsized in the Bay of Bengal close to Bangladesh’s southeastern border with Myanmar. This tragedy came less than a fortnight after a boat with more than 135 passengers capsized in the same area. “Boat capsized with illegal immigrants from Bangladesh” is a recurring story, with Thailand, Malaysia, and other Southeast Asian countries the destinations of illegal work seekers. What makes Bangladeshis resort to such extreme methods of migration?
For a number of years, a majority of South Asians have been painfully aware that climate change is real and, if left unfettered, has the potential to reverse the significant gains the region has made on poverty reduction and other Millennium Development Goals.
In 2009, the government of the Maldives held a Cabinet meeting underwater to remind the world that the country – which is on average 2.7 meters above sea level – will be completely wiped out if oceans rise.
Nepal’s government held a Cabinet meeting at the base of Mount Everest – at an altitude of 5,242 meters above sea level – to stress that 1.3 billion Asians depend on the seven major rivers with headwaters originating from the vulnerable Himalayan glaciers for their livelihoods.
They both hold the potential to help meet the needs of the poor and end poverty. New ideas and innovative solutions are critical to address the 2.5 billion people who lack access to proper sanitation. Lack of access to clean water and sanitation kills more than 4,000 children a day and a lack of sanitation results in billions of dollars in economic losses to developing countries. Now that more people have access to a mobile phone than to a toilet or latrine, it’s time to leverage technology to help reach development goals.
Photo: A teacher and school class stand at a cyclone shelter in rural Bangladesh. Stephan Bachenheimer/World Bank
Al Gore’s Climate Reality Project launches its “24 hours of Reality: Dirty Weather Report” today. It’s a global online multimedia event that seeks to demonstrate how climate change is manifesting itself around the world, showcasing countries, communities and individuals leading through innovative solutions.