In large, developing countries the government spends much of its budget on social safety net programs and building infrastructure, which involves procuring goods and services. But the ways in which these goods and services are purchased – the procurement process – can sometimes be inefficient and opaque to citizens. The procurement data is not easy to find or easy to understand; the policies are not always clear. In short,
In India, with help from the World Bank, there’s a promising initiative that is trying to address this problem, which is fundamentally one of transparency and accountability in government. But it is entering a critical new phase, in which it will need to become more self-sufficient and wean itself off of the initial World Bank seed funding.
During field visits, the assessment team interacted extensively with the community and local government officials. The one story that seemed to resonate consistently was the efficiency in clearing roads blocked by fallen trees and debris to make sure connectivity was restored at the earliest. Following any major disaster, such as cyclone Hudhud, restoring connectivity is amongst the most challenging and critical activities. Restoring connectivity allows for more efficient flow of much-needed emergency relief, medical supplies and helps foster early recovery. We decided to dig deeper to find out what had been done differently here.
One evening, while returning from a field visit to Srikakulam district, we posed this question to Mr. V. Ramachandra, Superintendent Engineer of Public Works Department (PWD), what had been done differently. Mr. V. Ramachandra’s face lit up and he pulled out his smart phone. He showed us a “closed group” that the PWD engineers had created on Whatsapp. For the first three days after cyclone Hudhud, there was no electricity and no mobile connectivity. As the connections were restored, the PWD closed group became functional and that acted as the main tool of communication for information sharing. For any breach of road, the Engineers shared information through the Whatsapp group with a clear location and a short explanation of the problem. The person responsible for the area responded with a message stating how long it would take to clear the block. Even requests for tools and JCBs were made on the group. This helped identify and access required resources. The action taken was narrated on the group discussion page once the problem was solved. An updated photo showing restored road connectivity was uploaded to the group.
No meetings and no discussions at the district headquarter level had to be organized. The District Magistrate joined the group and gave instruction to the department through the closed Whatsapp group. Most roads were functional within three to four days. The whole department worked to provide its services through a messaging system, without any meetings and formal orders.
Social media has become a part of our daily lives and is a very powerful tool for emergency management if used properly. Social media and pre-designed apps are effective when written reports and formal meetings are not required. It is important to learn from such experiences and institutionalize them for effective and efficient use during periods of early recovery and emergency response.
For a detailed account of how the city dealt with this rule, see here. An excerpt:
During the odd-even period, the use of cars fells by 30 per cent while those car-pooling went up by a whopping 387.7 per cent, indicating the success of the government’s push towards that option. Delhiites using private auto-rickshaws went up by 156.3 per cent compared to the period before odd-even, while Metro use went up by 58.4 per cent.
On average, the respondents’ took 12 minutes less to commute from home to work during the odd-even period. Car and bus users reached their workplaces 13 and 14 minutes faster during the 15-day period
I will come to the outcomes of this pilot in just a moment. Outcomes aside, the Delhi government’s Odd-Even plan has yielded a rich bounty. It sets the template for citizen engagement with a public policy reform experiment: heightened awareness regarding the core issue, mass participation, intense public scrutiny, and a data-driven discourse. Let’s take these one-by-one.
When you ask young people from developing countries what they want for their country, they often say opportunity. The next generation wants jobs and knowledge; they want to be connected to the global economy.
Extractive industries can foster these types of opportunities through investment in skills training and transfer of technology to local workers and companies. These technical skills are demanded in the global marketplace today and empower workers to expand their horizons and lower their risk of unemployment.
We are discussing these issues today at a “Reconciling Trade and Local Content Development” conference we are co-hosting with the Mexican Ministry of Economy. This event aims to share knowledge on how investment in extractive industries can be leveraged to generate opportunities for economic diversification and employment.
The most valuable contribution to long term sustainability comes from the ability of extractive industries to generate benefits through productive linkages with other sectors. The International Finance Corporation (IFC) helped make this happen in Barmer, India, where we supported a Skill Development Center that trained 7,000 people to work in the operations of Cairn Energy. Not only did this training create direct job opportunities for the local population, but the acquired skills fostered the creation of an entire eco-system of small and medium-size enterprises that provided products and services to the oil company and related sectors.
With electricity, children can study at night, women can walk home more safely on well-lit streets, and businesses can stay open well past dusk.
However, Governments and electric utilities around the world are mobilizing vast sums of money to close the access gap, especially in rural areas that are home to those lacking electricity.
So, how can we determine and identify who has electricity and who doesn’t? What if we had the technology and tools to help us see lights from space every night, for every village, in every country? We could then closely monitor progress on the ground. We could even plan and optimize policies and interventions in a different manner.
With 2015 firmly behind us, it’s time to reflect on the past year’s global economic trends -- while looking forward at the challenges and opportunities facing countries around the world. Check out the articles below for diverse and thought-provoking perspectives on how public-private partnerships can play a constructive role in global economies throughout 2016 and beyond.
In the context of the subsidies regime in India, there is an ongoing debate on the suitability of cash transfers. With the much talked about JAM trinity – the Jan Dhan zero-balance bank accounts, Aadhar and mobile phones, it certainly appears that the state-sponsored welfare system is set to see a significant shift. While this shift may well fall short of being transformative, we could still expect an improvement in how benefits are delivered with reduced leakages to recipients. The use of the JAM model to extend the welfare net and to improve its efficiency implies a decisive move towards cash transfers, and therefore, one may be closer to settling the debate, at least in terms of favoured government policy.
But the argument in favour of cash is not new. I recently came across a 1986 United Nations University WIDER paper by Amartya Sen where he elegantly outlines five arguments in favour of direct distribution of cash in times of food crises. In this paper Food, Economics and Entitlements, Sen tackles this question in the context of a famine. First, Sen demonstrates how even in contexts where aggregate food output is plentiful, the ability of the poor to acquire this food is a whole different matter. Localised food shortages and famine-like situations can arise due to various reasons – at times when the prices of staples rise sharply, or when the prices of products the poor sell fall sharply. However, this isn’t obvious to policymakers as long as they view food sufficiency through the lens of per-capita food production alone.
When famines manifest themselves, there could be multiple policy response options. Sen talks of direct food distribution as the favoured method in those times. Three decades down the line, food relief continues to be popular in times of distress, even as direct cash transfers (as described above) are gaining ground as a favoured instrument of social welfare policy. Policy responses in these times is meant to enhance the ability of those affected, to ‘acquire’ more food. Both market-based solutions that begin with greater availability of cash, and direct distribution are potential paths to this end.
When my team and I saw this boat passing by us in July 2013 in rural Bangladesh, near the border with Mizoram, Northeast India, and Myanmar, I felt immediately empathic.
How many people are on that boat? Eighty? Does it have a motor? Can those people swim, especially the women? No lifejackets! I wondered how long their trip was, and then I thought: What if they needed a bathroom break? Memories of my family's escape from Vietnam by boat in 1981 flashed back—34 refugees jammed into a traditional fishing boat normally home to a family of seven, with no motor, no life jackets, and no toilets! We floated around the South China Sea and Pacific Ocean for 16 days. Most of us could not swim, certainly not the women and girls.