As we today mark UN Women’s Day, it is worth considering what the inequality between men and women costs South Asian countries and what can be done about it.
One big cost of inequality is that South Asian economies do not reach their full potential. In Bangladesh, for example, women account for most unpaid work, and are overrepresented in the low productivity informal sector and among the poor. Raising the female employment rate could contribute significantly to Bangladesh achieving its goal in 2021 of becoming a middle-income country. Yet even middle-income countries in South Asia could prosper from more women in the workforce. Women represent only 34 percent of the employed population in Sri Lanka, a figure that has remained static for decades.
Improvements in the education and health of women have been linked to better outcomes for their children in countries as varied as Nepal and Pakistan. In India, giving power to women at the local government level led to increases in public services, such as water and sanitation.
Just as the costs of inequality are huge, so is the challenge in overcoming it. The gaps in opportunity between men and women are the product of pervasive and stubborn social norms that privilege men’s and boys’ access to opportunities and resources over women’s and girls’.
In Dhaka, the capital city of Bangladesh, you cannot miss the slum neighborhoods. More than 5,000 slum communities, accounting for 40 percent of the population, are spread across the city, often located right next to luxury penthouses, hotels, and high-rise office buildings. Most slum dwellers are limited to low-quality housing in precarious areas, often prone to flooding. The limited access to adequate shelter is an important factor that – according to the Economist Intelligence Unit’s 2015 livability rankings – makes Dhaka one of the least livable cities in the world. These communities are among the most neglected in the city in terms of urban policy, planning, and development, although the people who live in the slums make up the lion’s share of the work force, which drives the city’s economy, contributing significantly to the garment and leather industries, construction, waste management, and many other informal sectors.
Living in slums puts enormous social, economic, and financial burdens on households, and it can lead to intergenerational poverty. Many argue that slum dwellers are caught in a poverty trap—that living in slums makes it harder for households to escape poverty. Several slum-related factors contribute to the perpetuation of poverty, including poor health outcomes; an inability to access finance or leverage property assets; and lack of access to basic services. The existence of slums is a symptom of a shortage of affordable housing, the provision of which can be viewed as a valuable goal in its own right and as a critical ingredient in addressing the broader challenges of poverty.
The mountain kingdom of Bhutan may not seem an obvious place to look for lessons on addressing climate change. But on a recent visit I was impressed with how much this small country has achieved and also with its ambition. Bhutan has much to teach South Asia and the wider world. These lessons are especially relevant as the world negotiates in Paris a new pact on climate change at the International Climate Change Summit, known as COP21, which we all hope will eventually move the global economy to a low carbon and more resilient path.
The talks aimed at agreeing a way to keep global warming to a maximum of 2 degrees Celsius from pre-industrial era levels. There is widespread agreement that going above this threshold would have serious consequences. South Asia is among the regions of the world that is likely to be most affected by climate change. We are already experiencing this. There is increasing variability of the monsoon rainfall, more heavy rainfalls such as those that caused the recent flooding in India, and an increase in the number of droughts.
A World Bank report in 2013 predicted that even if the warming climate was kept at 2 degrees then this could threaten the lives of millions of people in South Asia. The region's dense urban populations face extreme heat, flooding and diseases and millions of people could be trapped in poverty. Droughts could especially affect north-western India, Pakistan and Afghanistan.
These are big problems. They may look much bigger than anything Bhutan - a very small country in a populous region - can teach South Asia and the world. But I see three lessons. Firstly, a commitment to ambitious goals will be critical to save the world from climate disaster. To stop the world from warming too much, climate experts estimate that global greenhouse gas emissions must be cut by up to 70 percent by 2050. Carbon neutrality (zero emissions) must be achieved within this century.
Dechen, a shy, soft- spoken, 31 year-old divorcee, unexpectedly lights up when I enquire about her poultry farm. A single mother of three children (aged 11, 6 and 3), she has strong reasons to feel good about what she does. It’s her sole responsibility to take care of her family from the income generated by the farm.
Dechen’s farm is a 15-minute uphill trek from a motorable road in Langthel village in the Trongsa district nested in central Bhutan. It is approximately a 10-hour drive on winding roads from the capital city, Thimphu.
Despite the remoteness of the village, Dechen is doing well for herself. She has already earned a Ngultrum (Nu) 45,000 (US $684) net profit since she started her poultry farm a year and a half ago. Having her own – and successful -- business has made her more self-confident and determined.
Cities are created for human experiences and not for satellites in the sky. So why are there so many cities that while look impressive on a map, exclude so many of their residents from enjoying the full extent of their benefits? The key may be that details matter for inclusion of cities.
Inclusion means that all people and communities have access to rights, opportunities, and resources. Urbanization provides cities the potential to increase prosperity and livability. However, many suffer from poor environments, social instability, inequality, and concentrated pockets of poverty that create exclusion. In South Asia, as in other regions, segregation within cities cause poorer areas to suffer from the lack of access to facilities and services that exacerbate misery and crime.
Medellin, Colombia was once the most dangerous city on the planet with astounding gaps between the wealthy and the poor, vastly different access to services, and the highest homicide rate in the world. Its turnaround has been impressive. Much of the progress has been attributed to the thoughtfulness of its planning to ensure greater inclusion. What can South Asian cities learn from this South American city?
Planning policies and action have often been concentrated on the broad structures and functions of cities. However, drilling down the details can realize an inclusive urban environment that improves life for all in public spaces. In our definition, inclusive cities provide:
Mobility: A high level of movement between different neighborhoods that provide opportunities for jobs, education, and culture;
Services: All neighborhoods have a basic level of facilities and affordable necesities such as housing, water, and sanitation;
Accessibility: Urban spaces are designed so that everyone can easily and safety enjoy public spaces.
What happened in Medellin, Colombia? Medellin offers an inspiring example of how improved planning and sound implementation can increase social inclusion. Two decades ago, Medellin was the homicide capital of the world. Illicit drugs were a major export and hillside slums were particularly affected by violence. In response, the government created public facilities inclusive of libraries and schools, public transportation links, and recreational spaces in the poorest neighborhoods; and connecting them with the city’s commercial and industrial centers. As a result of a planning model that seeks to serve all residents, the city has become safer, healthier, more educated and equitable.
In Mozambique in 2003, it took an entrepreneur 168 days to start a business. Today, it takes only 19 days. That kind of transformation has major implications for ambitious men and women who are seeking to make a mark in business, or, as is often the case in Africa, seeking to move beyond a life in agriculture. In economies with sensible, streamlined regulations, all it takes is a good idea, and a couple of weeks, and an entrepreneur is in business.
This week, the World Bank Group launched its annual Doing Business 2016 report, which benchmarks countries based on their progress undertaking business reforms that make it easier for local businesses to start up and operate.
For the second straight year, Singapore topped the list, with New Zealand, Denmark, the Republic of Korea, and Hong Kong SAR, China, coming in closely behind.
In the developing world, standouts included Kenya and Costa Rica, both of which rose 21 positions; Mauritius, Sub-Saharan Africa’s top-ranked economy; Kazakhstan, which moved up 12 places to rank 41st among all countries; and Bhutan, which topped South Asia’s list of reformers. In the Middle East and North Africa, 11 of the region’s 20 economies achieved 21 reforms despite the challenges caused by a number of civil and interstate conflicts.
The reforms tracked by Doing Business are implemented by governments, but the results show up most in the private sector, which is critical to driving a country’s competitiveness and to creating jobs. Ensuring an enabling environment in which the private sector can operate effectively is an important marker of how well an economy is positioned to compete globally.
For those of us working with governments to help improve their investment climates – and to create a policy environment in which business regulatory costs are reasonable, access to finance is open, technology is shared, and trade flows within and across borders – the real work begins long before the Doing Business rankings are published.
In the World Bank Group’s Trade and Competitiveness Global Practice (T&C), our mandate is to work with developing countries to unleash the power of their private sector for growth. Much of this work involves reforms in the very areas measured in the Doing Business report: starting a business, dealing with construction formalities, or trading across borders, among other factors.
Our experience working with clients confirms one of this year’s key findings: Regulatory efficiency and quality go hand-in-hand. A good investment climate requires well-designed regulations that protect property rights and facilitate business operations while safeguarding other people’s rights as well as their health, their safety and the environment.