In this week’s links, we continue to highlight the global #Ebola response, and a new take on the “ice bucket challenge” from India – the rice bucket challenge. Each Friday, we share a selection of global health Tweets, infographics, blog posts, videos and more. Follow us @worldbankhealth.
India has long been criticized for strict labour laws and burdensome business regulatory environment. This can also be easily substantiated by the fact that India is ranked 134 out of 189 economies in terms of ease of doing business by World Bank in 2014 (1). Indian labour market is subject to more than 50 central government laws and regulations that deals with range of subjects such as employment condition, social security, wages, industrial relations to name a few. As labour is a “concurrent” subject in Indian constitution, both state and central government can pass laws pertaining to this subject within their jurisdiction. As a result, there are numerous other state specific labour laws as well which varies from one state to other.
As noted in a blog post earlier this year, the World Bank Group is pursuing a Competitive Cities Knowledge Base (CCKB) project, looking at how metropolitan economies can create jobs and ensure prosperity for their residents. By carrying out case studies of economically successful cities in each of the world’s six broad regions, the Bank Group hopes to identify the “teachable moments” from which other cities can learn and replicate some of those lessons, adapting them to fit their own circumstances.
The first two case studies – Bucaramanga, in Colombia’s Santander Department, and Coimbatore, in India’s State of Tamil Nadu – were carried out between April and June 2014. Although they’re on opposite sides of the globe, these two mid-sized, secondary cities have revealed some remarkable similarities. This may be a good moment to share a few initial observations.
Bucaramanga and Coimbatore were selected for study because they outpaced their respective countries and other cities in their regions, in terms of employment and GDP growth, in the period from 2007 to 2012. Faced with the same macroeconomic and regulatory framework as other Indian and Colombian cities, the obvious question is: What did these two cities do differently that enabled them to grow faster?
When a small Bank team, of which one of us was a member, first visited the project site in December 2004, it wasn’t exactly a picture-perfect scenario. We were deep in the Himalayas and it was the middle of winter. Barren mountainsides rose up all around us, the icy Satluj river flowed steadily down, and the wind was howling.
How could we possibly build a hydropower project in this forbidding terrain in a few years’ time? Stories of past challenges from the earlier Nathpa Jhakri project - about 15 kilometers upstream - came flooding into everyone’s mind. But failure was not an option. The Bank was reengaging in hydropower in India after a gap of more than 10 years, and a great deal was riding on each one of us.
Now, more than a decade later, we find ourselves standing before the almost-fully built Rampur powerhouse. As a wonderful coincidence, both of us happen to be present as the first of the project’s six units roars into operation and is synchronized with India’s northern power grid.
It was getting dark and the mist engulfing the jungle made the challenge of spotting the stripes even harder. My guide, a trained local tribal youth, was excited and kept telling stories about the sights and sounds of the jungle. In all fairness, I had enjoyed the trek. Every turn or straight path presented a beautiful landscape, majestic trees, bamboo thickets, gurgling streams, colorful birds, distant animal calls and the gentle fresh breeze. Sighting a tiger would only complete the experience. Will we? Won’t we, see one?
In many ways, the experience of sighting a tiger reflects the challenge its very survival is facing! Will it? Won’t it, survive? But more importantly, will someone notice if it is not around? Fortunately, I was in Periyar Tiger Reserve in the southern Indian State of Kerala, a turnaround success story where the World Bank’s India Ecodevelopment Project significantly increased income opportunities for the locals, improved reserve management and encouraged community participation in co-managing the reserve. Though this happened a decade ago, even today the incomes are sustained and communities are closely engaged! But such success stories are few and far between.
The excellently named Research Institute for Compassionate Economics (R.I.C.E) recently published an equally excellently named survey – the SQUAT (Sanitation Quality, Use, Access and Trends) survey. Based on the findings of this survey conducted in five north Indian states, R.I.C.E calls for a latrine use revolution - since the bottleneck is not the non-availability of a latrine (since even those with a government latrine are not using them), nor is it lack of funds (since far poorer countries and communities have built and used latrine). It is an issue of messaging around hygiene, towards which we need to set our firm focus.
My first job in the development sector was with an NGO, Gram Vikas in Odisha and my experience there has shaped many of my core beliefs about working in this sector. At the core of Gram Vikas' work was the conviction that the 'poor can and will pay for quality services'. So when I think toilets (not latrines – and there is a key difference in the definition), I often use the 'quality' lens and make the argument about how the usage of physical facilities installed by projects has a direct link with what community perception of what counts as good quality. This also has a strong link with the extent to which they feel a sense of ownership for the facility.
Duty- and quota-free access for exports to global markets is something developing country trade negotiators have demanded for years. Few other “stroke-of-the-pen” measures could boost employment and reduce poverty in low income countries in such large numbers. For instance if the US removed tariffs on Bangladeshi garments – which average around 13%, but for some items are as high as 33% – then exports to the US could rise by $1.5 billion from the FY13 level of $5 billion, in turn generating employment for at least an additional half a million, primarily female, workers. Examples of other countries facing US tariffs include Cambodia (12.8% average tariff rate on its exports to the US), India (4.01%), Indonesia (5.73%), and Vietnam (7.41%). Progress in trade facilitation would likely have even greater pay-offs to growth and employment, but these require structural reforms and investments, while the decision to remove tariffs is a simpler, “stroke-of-the-pen” measure.