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India

The Poor and the Middle Class

Eliana Cardoso's picture

Start counting the poor in India and you are bound to get into controversy. In “A Comparative Perspective on Poverty Reduction in Brazil, China and India,” Martin Ravallion (October 2009) calculates that 42% of the population in India in 2005 lived in households with income per person below US$1.25 a day (converted using purchasing power parity exchange rates for consumption in 2005). But he finds only 20% of the population under the US$1.25 poverty line when using a different method as a sensitivity test. The difference is huge. One number is twice the other and corresponds to two hundred million people (more than the whole population of Brazil!).

Ravallion repeats the exercise and finds that in Brazil, in 2005, the population who lived in households with income per person below US$1.25 a day (converted using purchasing power parity exchange rates for consumption in 2005) is 8%. When using the alternative sensitivity test method, it is 10%. Compared to India, the difference is small (2% of the population) between the two measures.

I suspect that instead of trying to calculate the number of people with less than US$ 1.25 a day, policies for poverty reduction should focus on the bottom quintile of the population: the 20% poorest group in the country.

One of my reasons is that inequality matters. Think of poverty as a relationship.

Integrating the Two South Asias

Ejaz Ghani's picture

Regional Cooperation can be the key instrument to promote increased market integration in South Asia through greater flow of goods, services, capital, and ideas. This is appropriate for a region which is the least integrated region in the world, although many countries share analogous cultures and histories, as well as a passion for cricket and curry.

It is also very timely given the global downturn and the slowdown in global trade. Increased regional trade could more than compensate for the potential loss in global trade. It is estimated that increased intra-regional trade could add two percentage points to South Asia's GDP growth. This could raise South Asia's real GDP growth from 6% to 8% in 2010. Unlike fiscal stimulus, increased market integration and regional trade could add to GDP growth, without increasing public debt. It is the most efficient and cost effective instrument for South Asia to cope with the global downturn.

Bang for the Buck, Changing Attitudes Toward People with Disabilities

Susan Hirshberg's picture

"Just like the Other Kids" could reach 300,000 first and second graders this year.

We like to think that our value added is our strong intellect and analytical skills combined with the ability to provide additional resources to tackle development issues. But for South Asia’s efforts in disability, it has sometimes been the smallest amounts of money and the least ‘Bank-like’ activities that have been creating the greatest awareness on the subject. I wanted to highlight some of the very exciting initiatives that we have been working on marking the International Day of Persons with Disabilities today. Three such activities have been the development of a children’s book on inclusion in Pakistan, coverage by an Indian newspaper of a one-page analysis of Bollywood’s depiction of disability in films in the report Disability in India: from Commitment to Actions, and a Small Grants Award Ceremony in Sri Lanka.

“Just like the Other Kids” is a book by young people between the ages of 12 to 18 with and without disabilities financed for $22,000 by the South Asia Youth Innovation Fund and the Pakistan Small Grants Program. Its intent is to introduce first and second graders to characters with disabilities in a friendly, inclusive way. Three out of five of the characters have a disability, but all the characters have strong abilities (and some weaknesses).

China leads rapid growth of online audiences in Asia

James I Davison's picture

The online population in Asian and Pacific countries grew by 22 percent last year. China led the growth with an incredible 31 percent increase – to 220 million – in total unique Web visitors. These latest numbers of the region’s explosive Internet growth are according to a report, released last month by Internet researcher comScore, measuring online audiences in the region and individual countries between September 2008 and 2009.

The report indicates that Internet audiences in Japan, India and South Korea also saw double-digit growth and that the Asia-Pacific region now has 41 percent – or 441 million people – of the global Internet audience. It’s interesting to see how quickly things have changed since the last time we wrote about an earlier report from comScore.

If you want to examine more of the report’s findings you can see the related press release, or download a presentation on the subject here. (Note: To download the slides, you have to provide them with your name and some contact info.)

I’ve pointed before to World Bank evidence that shows the Internet may lead to improved economic growth, job creation and good governance. What else do you think such increased connectivity could mean for development in the region?

Life and Death in South Asia

Eliana Cardoso's picture

In the film, Venus, an old and frail Peter O’Toole discovers the Greek goddess in the guise of his best friend’s niece. The ironic and good humored story explores the theme of the games played in a mutual seduction between the older man with experience, money and a nostalgic yearning for carnal desire and the young woman who soon finds out the power she wields and negotiates three kisses in return for a pair of earrings. In the final scene, wearing only one of his boots on a cold beach, O’Toole feels the caress of the sea’s salty foam with the sole of his foot and smiles. His face expresses the happiness of someone who knows the joys of being alive.

It is impossible to weigh up Peter O’Toole’s smile, measuring the degree of his happiness or comparing it to what you would feel if walking barefoot in the sand. But, the idea that his feelings can be measured as a metric has become fashionable, ever since the King of Bhutan decided that GDP fails to portray the well-being of his subjects and summoned a team to create the Gross National Happiness index.

How Will Changes in Globalization Impact South Asia?

Ejaz Ghani's picture

Globalization has accelerated global growth and global poverty reduction. But it has also raised concerns. The current global crisis may change globalization itself, as both developed and developing countries adjust to global imbalances that contributed to the crisis. Will these changes help or hinder economic recovery and growth in South Asia?

There are three models of globalization. These include (a) trade flows (exchange of goods), (b) capital flows (exchange of money), and (c) macroeconomic management. These three models of globalization may not be the same in the future. Changes in globalization could change the composition of trade flows, capital flows, and economic management, which in turn, could accelerate or restrain growth. So how will changes in these three models of globalization impact economic recovery and growth in South Asia?

South Asia as a region is peculiar. Its trade, capital flows, and economic management differ from other regions in how the region has globalized, although it must be mentioned that there is a lot of diversity within the region.

World Bank Teams up with Google to Share Development Information

Joe Qian's picture

What’s the Gross Domestic Product (GDP) of India? If you type the inquiry into Google now, a graph will immediately display the data ranging from 1960 to 2008 and a figure showing that it is currently $1.22 trillion. If you click on the graph, it will immediately expand and allow you to compare historical figures as well as with that of other countries. I noticed, for instance, that India had a GDP of $36.6 billion in 1960; a 33 fold increase over the last 48 years!

The popular search engine has joined forces with the World Bank in sharing development data through the Data Finder, featuring 17 development indicators based on information provided by the World Bank to make the easy to understand information accessible to a broader audience. The public data tool is exceptionally easy to use and is excellent for comparative research or exploration of data over time. The indicators are as diverse as carbon dioxide emissions, fertility rates, GDP growth, and number of internet users.

South Asia Rebounds

Eliana Cardoso's picture

The future is unpredictable and yet, from time to time, we must take stock of what we accomplished and where we are heading. Over the past decade, better policies and rising integration with the global economy have pushed growth in South Asia upwards. By 2007, the peak year just before the global financial crisis, the region’s GDP growth had reached nearly 9 percent a year (just slightly behind East Asia’s). This growth acceleration extended to all the countries of the region.

The global financial crisis took South Asia’s growth down by about 3 percentage points (from 8.6% in 2007 to 5.6% in 2009). This was the smallest growth decline among all regions of the world and the prospective recovery is already underway. The World Bank expects GDP growth to recover to nearly 7 percent per annum on average in 2010-2011.

Dipak Dasgupta, a Lead Economist at the World Bank, points to four key factors that have cushioned South Asia’s growth decline during the crisis and are helping in the strong recovery.

(1) Remittances held up much stronger in South Asia than in other regions. In Nepal, the reliance on remittances is the highest, and without these flows, growth in consumption would have collapsed.

(2) The resilience of some key export-oriented sectors also helped. Garments in Bangladesh and IT software exports from India, for instance, have held up relatively well.

Reflecting on Mumbai

Caroline Jaine's picture

I do not have to be Indian to feel the sense of sorrow and unfathomable injustice as this month the world remembers the Mumbai attacks of a year ago.  Many times we seem to have shaken our pitiful heads and said “never again” after a grand scale terror attack, but still man continues to kill man for an increasingly bizarre list of reasons.  Political pressure, ignorance, social emasculation, brainwashing and drug addiction are amongst the culprits.

In the year since Mumbai, across the region we have seen murderers in Pakistan turn on their own people – with a recent gruesome blast in a Peshawar market killing over 100, mainly women and children, with no real explanation that I could fathom. Again, I do not have to be Pakistani to feel a sense of sorrow. 
 

Television for a change (revolution in a box)

Michael Trucano's picture

public domain image of the Braun HF television from 1958 comes courtesy of Oliver Kurmis via Wikimedia CommonsA quick check of the user logs for the World Bank's EduTech blog shows that postings on the use of mobile phones in education consistently draw the most readers.  While highlighting the new and innovative appears to grab the attention of visitors, there is no denying the impact that 'old' technologies like radio and television continue to have on education around the world.  In an optimistic cover story in the most recent edition of Foreign Policy magazine, my World Bank colleague Charles Kenny makes the case in Revolution in a Box that, despite the recent hype around new Web 2.0 tools (like Twitter or Facebook), it is not the computer, but the TV that "can still save the world". 


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