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Fostering Private Sector Development in Fragile States: A Piece of Cake?

Steve Utterwulghe's picture
Private sector development (PSD) plays a crucial role in post-conflict economic development and poverty alleviation. Fragile states, however, face major challenges, such as difficult access to finance, power and markets; poor infrastructure; high levels of corruption; and a lack of transparency in the regulatory environment. 

The private sector has demonstrated its resilience in the face of conflict and fragility, operating at the informal level and delivering services that are traditionally the mandate of public institutions. However, in post-conflict situations, PSD can have predatory aspects, thriving on the institutional and regulatory vacuum that prevails. The private sector will need to create 90 percent of jobs worldwide to meet the international community’s antipoverty goals, so pro-poor and pro-growth strategies need to focus on strengthening the positive aspects of PSD, even while tackling its negative aspects.

The Post-2015 Youth Agenda: Why is it Important?

Mabruk Kabir's picture
youth
Photo: © Charlotte Kesl / World Bank

If the deluge of trend pieces tell us anything, it’s that the millennials are the most fussed over demographic in history. But behind the hype, there is real a tectonic shift. We are now witnessing the largest youth bulge in history. Over half the world’s population is now under thirty, with the majority living in developing and middle-income countries.

A youthful population can be source of creativity, innovation and growth –but only if employed and engaged in their societies. Unfortunately, for much of the world’s young people, reality is very different.

A number of hurdles prevent young people from contributing as productive, socially responsible citizens. As Emma Murphy of Durham University notes, “Poor education limits their skills, poor employment limits their transition to adulthood and political obstacles limit their voice and participation.”

The longer young people are excluded from participating in their economic and political systems, the further we are from realizing the ‘demographic dividend’.  

​It’s a no-brainer. A youth agenda, focusing on the issues that affect young people, must be a critical piece of any post-2015 framework. Where do we start?

Do Nepali businesses have more female managers compared to other countries?

Arvind Jain's picture

One of the primary goals of the Enterprise Surveys is to provide high quality data about the business environment based on establishments’ actual day-to-day experiences. This provides much needed information given how little is known about what businesses experience in developing economies. To raise awareness of the recently released Nepal 2013 Enterprise Survey, we provide a few highlights below. 
 
The Nepal 2013 Enterprise Survey consists of face-to-face interviews with 482 firms across the Central, Western, and Eastern regions in Nepal. Fieldwork was conducted between February and June 2013, with survey questions referencing the 2013 fiscal year. This post will focus on a couple of highlights. For the full survey highlights please see the Nepal 2013 Country Highlights document.

Rural jobs allow people to escape poverty; urban jobs are a ticket to the middle class

Yue Li's picture
South Asia is sometimes known as the land of extremes with opulence surrounded by poverty.

How much social mobility is there in South Asia? The intuitive answer is: very little. South Asia is home to the biggest number of poor in the world and key development outcomes – from child mortality to malnutrition – suggest that poverty is entrenched. Absence of mobility is arguably what defines the caste system, in which occupations are essentially set for individuals at birth. Not surprisingly, the prospects for people from disadvantaged backgrounds to prosper are believed to be gloomier in this part of the world.

And yet, our analysis in Addressing Inequality in South Asia, reveals that economic and occupational mobility has become substantial in the region in recent decades. In fact, it could even be comparable to that of very dynamic societies such as the United States and Vietnam. The analysis also suggests that cities support greater mobility than rural areas, and that wage employment – both formal and informal – is one of its main drivers. 

​When splitting the population into three groups—poor, vulnerable, and middle class—upward mobility within the same generation was considerable for both the poor and the vulnerable. In both Bangladesh and India, a considerable fraction of households moved above the poverty line between 2005 and 2010. Meanwhile, a sizable proportion of the poor and the vulnerable moved into the middle class. In India, households from Scheduled Castes and Scheduled Tribes – considered together – experienced upward mobility comparable to that of the rest of the population.  

Voting with their feet? Access to infrastructure and migration in Nepal

Forhad Shilpi's picture

Do migrants respond to differences in access to public goods and services in addition to income prospects of potential destinations?  This issue is important in developing countries where provision of basic public goods affects not only income prospects but also quality of life. And in these countries, provision of public goods tends to vary widely across areas.  In a Tiebout (1956) sorting model, such disparity in the provision of public goods such as roads, electricity, schools, hospitals, etc. should induce people to "vote with their feet" and to migrate to areas with better access to these infrastructures and services.


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