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A tipping point for solar energy?

Joaquim Levy's picture
Manik, a solar pump operator for Nusra works near the solar panels in Rohertek, Bangladesh. © Dominic Chavez/World Bank
Manik, a solar pump operator for Nusra works near the solar panels in Rohertek, Bangladesh. © Dominic Chavez/World Bank

​Solar energy is poised to transform low-income economies, many of which are in the world’s sunniest regions. Solar’s growing share of the energy mix is being driven by better storage capacity and attractive generation costs. Large solar parks are now competitive with most alternatives; their average cost is below 5 cents per kilowatt-hour in some developing countries. Smaller-scale solar grids are also getting more competitive, opening new paths to financing this clean energy source. With rapid improvements in energy efficient lighting, refrigeration, water pumps, and other technologies for households, solar may soon be as game-changing as mobile phones have been in the last decade.

Solar’s potential is evident from its quick growth in India, where installed capacity recently topped 20 gigawatts (GW), putting the country closer to its ambitious target of 100 GW from clean energy by 2022 (an amount comparable to total installed capacity in the United Kingdom). Solar offers key advantages: facilities can be built quickly, do not need fuel to be transported to power plants, and can eliminate transmission costs where mini-grids or off-grid units are built to serve local communities. 
 

Removing the stigma of mental illness in India

Varalakshmi Vemuru's picture
A report on the economic burden of mental illness argues that depression and anxiety disorders cost the world nearly $1 trillion annually. Conversely, every dollar invested in mental health contributes $4 to the economy. Photo credit: TNMHP

April 7 marked the 70th anniversary of World Health Day. This was an opportunity for the global community to redouble its efforts to ensure that all people can improve their health, including their mental health.
 
When his father died, Gopi, a carpenter in rural Tamil Nadu, India was overwhelmed by an enormous mental and financial burden.

Gopi became depressed, left his job, and isolated himself.

As his condition worsened, Gopi’s two younger sisters dropped out from high school to take on farming jobs to support the family.

However, thanks to medicine, counseling, and livelihood support from the Mental Health Program (TNMHP), Gopi eventually rehabilitated himself and got back to carpentry a year later.

With time, he even took out a Rs. 20,000 loan to start his own carpentry business.

Gopi’s experience—and many others’—illustrate how mental health is integral to well-being.

The World Bank recognizes mental health as a key challenge to sustainable development.

A report on the economic burden of mental illness argues that depression and anxiety disorders cost the world nearly $1 trillion annually. Conversely, every dollar invested in mental health contributes $4 to the economy.

Accordingly, the World Bank-supported the Mental Health Program in the state of Tamil Nadu, India that incorporates best practices in mental health from around the world.

The project is an important instrument in addressing the magnitude of India’s mental health challenges, and provides a successful model for the implementation of the national mental health policy and improve mental health infrastructure and care in Indian states.

By closely involving the community, the project reduced stigma and prejudice attached to mental illness and empowered vulnerable people with mental disabilities to gain respect in their communities.  

People with mental disabilities are diagnosed and treated and provided livelihood support through vocational training, self-help groups, job cards, and identity cards to access social benefits.

India’s remarkably robust and resilient growth story

Poonam Gupta's picture

India has achieved much in the last decades. Yet an economic deceleration in the past few quarters has generated worried commentaries about India’s growth potential.  However, our analysis of nearly five decades of data finds that India’s long-term growth process is steady, stable, diversified and resilient. Does this lay the groundwork for a more sustained 8% growth in the future? Yes, possibly, but more is needed. Let us elaborate.

First, India’s long-term economic growth has steadily accelerated over a fifty-year period, without any prolonged reversals. Thus, while growth averaged 4.4 percent a year during the 1970s and 1980s, it accelerated to 5.5 percent during the 1990s-early 2000s, and further to 7.1 percent in the past one decade. The acceleration of growth is evident not just for aggregate GDP, but even more strongly for per capita GDP. The average pace of per capita growth was 5.5 percent a year in the last decade. Interestingly, when compared with some of the world’s largest emerging economies, this steady acceleration of growth stands out as being unique to India.

Second, India’s rate of growth has become more stable. This is partly due to the stabilization of growth within each sector – agriculture, industry and services – and partly to the transition of the economy toward the services sector, where growth is more stable. Particularly interesting is the sharp increase in the stability of GDP growth since 1991. Before this, growth accelerated episodically, was punctuated by large annual variations, and often failed to sustain. Thus, growth has not just accelerated post liberalisation, it has also become more stable.

Third, growth has been broadly diversified. Growth has accelerated the fastest in services, followed by industry, and less so in agriculture. Over the long run, India’s growth has been driven by an increasing share of investment and exports, with a large contribution from consumption. Growth has also been characterized by productivity gains – both in labor productivity as well as in total factor productivity.

Finally, growth has been broadly resilient to shocks, both domestic and external. The resilience of India’s growth can be attributed to the country’s large and spatially diversified economy, as well as to its diversified production structure that is not dependent on a few products, commodities, or natural resources. It can also be attributed to India’s diversified trade basket and broad range of trading partners, wherein a slowdown in any one part of the world will not result in a large impact on India.



The resilience of India’s growth process was on display in recent years when the country recovered quickly from the impacts of two major policy events – demonetization and the implementation of the Goods and Services Tax (GST), an important indirect tax reform. We argue that the deceleration to growth rates below 7 percent between Q3 2016–17 and Q2 2017–18 was an aberration, attributed to temporary disruptions in economic activity as the economy adjusted to demonetization and businesses prepared for the implementation of GST. At present, there are indications that the economy has bottomed out and, in the coming quarters, economic activity should revert to the trend growth rate of about 7.5 percent. We project GDP growth to be 6.7 percent in 2017-18 and accelerate to 7.3 percent and 7.5 percent respectively in 2018-19 and 2019-20.

Interest rate caps: The theory and the practice

Aurora Ferrari's picture

Ceilings on lending rates remain a widely-used instrument in many EMDEs as well as developed economies. The economic and political rationale for putting ceilings on lending rates is to protect consumers from usury or to make credit cheaper and more accessible. Our recent working paper shows that at least 76 countries around the world, representing more than 80% of global GDP and global financial assets, impose some restrictions on lending rates. These countries are not clustered in specific regions or income groups, but spread across all geographic and income dimensions.

Enabling digital financial inclusion for rural women: emerging findings from India

Shobha Shetty's picture
"Pehle to bank jaane se bhi dar lagta tha, aur ab hum bank wali didi ban gaye hain’’ (Earlier I used to be afraid of stepping into a bank branch but now I am called a bank representative!). These are the words of Nidhi Kumari, aged 24 who hails from a Baheri Village in Darbhanga district of Bihar. You cannot help but notice the pride and new-found self-confidence behind her wide smile.

Nidhi is one of over 1500 Banking Correspondent Agents (BCAs) under the World Bank’s (IDA $500M) National Rural Livelihood Project (NRLP) in India that supports the Government’s National Rural Livelihood Mission (NRLM) in 13 high poverty states.
 
 Jeevika.
Nidhi Kumari at her BC Kiosk serving customers in her village. Photo courtesy: Jeevika.

Agent-based branchless banking in India is not new and has been around for over a decade. Given that there are over 650,000 villages in India and that less than 10 percent of villages have bank branches[i], an ICT-enabled alternate channel is now a dire necessity to enable greater financial inclusion. This agenda got a further boost when the Government of India launched the  Pradhan Mantri Jan Dhan Yojana (PMJDY) in 2014 to boost financial inclusion. To date, over 310 million PMJDY bank accounts (basic savings bank accounts) have been opened with 53 percent of these accounts now being held by women.

Encouraging more women to take part in regional trade

Mandakini Kaul's picture

Across South Asia, women represent a hugely underutilized source of growth. In fact, the South Asia region has some of the world’s lowest rates of female labor force participation - only 36%. Even where women work, they are mostly confined to less-remunerative low-skill jobs, and remain excluded from most trading activity. To make it easier for more women to work in all fields of endeavor, World Bank projects in the region have begun to look at development projects through a more gender-focused perspective.
 
One such area is regional trade and connectivity. After a long hiatus, the political momentum for cooperation within the eastern region is growing, especially in the Bangladesh Bhutan India Nepal (BBIN) corridor.  The Indian government’s Act East Policy, combined with the new Motor Vehicles Act that allows vehicles to cross the BBIN border with ease, represent a unique opportunity to reimagine inclusive growth by enabling more of the region’s women to benefit from this corridor.
 


Accordingly, the South Asia Regional Trade Facilitation Program (SARTFP), an Australian government-funded program being implemented by the World Bank, seeks to improve the conditions for women to trade between these nations and to create more remunerative livelihoods.

Creating opportunities for young women through youth employment programs

Jose Manuel Romero's picture
Innovative programs can respond to gender disparities in youth employment. Photo: Dominic Chavez/ World Bank. 

The disadvantages young women face in the labor market and in entrepreneurship in developing countries are not only substantial and complex, but they quickly compound. A plethora of forces drive gender disparities in youth employment: lack of opportunities to develop the skills demanded by the labor market, family or social pressure dissuading them from entering desirable jobs or male-dominated sectors, a detrimental work environment, or a lack of available services such as childcare might make achieving success an uphill battle. Yet innovative youth employment programs can respond to gender issues. Below are three examples presented in a recent virtual workshop held by the Solutions for Youth Employment (S4YE) coalition with members of its Impact Portfolio community.

Bold Leadership, Policy, More Financing, and Out-of-the-Box Interventions Critical to End TB

Ronald Upenyu Mutasa's picture
Mobile application for e-health and a community volunteer demonstrating
the use of the electronic system

At the recent Delhi End TB Summit, Sudeshwar Singh, 40, a tuberculosis (TB) survivor, took to the stage to share his story, not just about the physical hardship of his diagnosis but also the stigma and fear that plagued his family and threatened to crush his spirit. Sudeshwar’s story, however, ends with a victory and a call for optimism for the fight against TB; he completed his treatment, and became an activist, raising TB awareness in his home state of Bihar.

How can new infrastructure accelerate creation of more and better jobs?

Vismay Parikh's picture
The study analyzed four stages of the value chain —production; storage and logistics; processing; and marketing— to understand the potential for job creation stimulated by infrastructure projects. (Photo: Kubat Sydykov / World Bank)


It is widely accepted that investments in infrastructure can lead to direct and indirect jobs, and usually have spillover effects into other economic opportunities. For example, good transport systems and agro-logistics services help move freight from farms to locations where value can be added (like intermediate processing, packaging and sorting of agricultural produce) and ultimately to consumers. However, the anticipated benefits of these investments are not always fully realized, or sometimes they happen much later. How can investments in infrastructure have a multiplier effect in stimulating the economy and, eventually, facilitate job creation?

To maximize their impact, infrastructure projects should explicitly analyze and include complementary investments (e.g., industrial parks or processing facilities) and soft interventions (financial services, ICT, laws and regulations, etc.) needed to unlock the potential of new markets. As part of a broader effort to link investment in rural roads to economic opportunities, the Roads to Jobs study analyzed strategic value chains in the agriculture sector in Rajasthan, India, to better understand the challenges faced by farmers in accessing markets and provided recommendations to address constraints.

Closing the gap between policy and practice on women’s land rights

Chris Jochnick's picture
Momentum is building behind a land rights revolution. Last year, just prior to the World Bank’s Annual Land and Poverty Conference, I wrote about the many factors pushing land to the top of the global agenda.  To maintain this momentum we must pay greater attention to gender and women’s land rights.
 
Anju's Dream

 


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