In Pakistan, the province of Punjab faced such a challenge. For many rural landowners in the province, land titles weren’t easily accessible, nor were they properly managed and protected. To tackle the land administration challenge, the government of Punjab turned to an innovative solution: they used digital technology to modernize its old, inefficient paper-based land administration system.
Supported by the World Bank, the Punjab Land Records Management and Information Systems (LRMIS) project turned out to be one of the success stories for the province of Punjab. Within just five years, Punjab scanned 10 million pages of old records, digitized over 55 million landowners’ records—98% of all records—across the province, and made all rural land title information available online 24/7 for landowners.
Prior to the project, it would take up to two months to complete a land transaction in Punjab. Today, it takes a rural Punjab resident only 50 minutes to receive a digitally recorded, legally registered land title from one of the 144 newly created land record offices across all 36 districts of the province. This has helped the province of Punjab enhance the transparency of land administration while securing land rights for its people, including women farmers who were denied their land rights in the old system.
In this video, World Bank Senior Director Ede Ijjasz-Vasquez (@Ede_WBG) and Muhammad Zafar Iqbal, Director General of Punjab Land Records Authority, discuss in detail the past, present, and future of the Punjab LRMIS project.
Going forward, the government of Punjab plans to expand digital land record management to its urban areas. Cities and villages alike in other countries can also learn from this successful project and innovative approach to land administration.
That regional cooperation in South Asia is lower than optimal levels is well accepted. It is usually ascribed to – the asymmetry in size between India and the rest, conflicts and historical political tensions, a trust deficit, limited transport connectivity, and onerous logistics, among many other factors.
Deepening regional integration requires sufficient policy-relevant analytical work on the costs and benefits of both intra-regional trade and investment. An effective cross-border network of young professionals can contribute to fresh thinking on emerging economic cooperation issues in South Asia.
Against this background, the World Bank Group sponsored a competitive request for proposals. Awardees from Bangladesh, India, and Pakistan, after being actively mentored by seasoned World Bank staff over a period of two years, convened in Washington DC to present their new and exciting research. Research areas included regional value chains, production sharing and the impact assessment of alternative preferential trade agreements in the region.
Young Economists offer fresh thoughts on economic cooperation in South Asia
Mahfuz Kabir, Acting Research Director, Bangladesh Institute of International and Strategic Studies and Surendar Singh, Policy Analyst, Consumer Unity Trust Society (CUTS International) presented their research: Of Streams and Tides, India-Bangladesh Value Chains in Textiles and Clothing (T&C). They focus on how to tackle three main trade barriers for T&C: a) high tariffs for selected, but important goods for the industries of both countries; b) inefficient customs procedures and c) divergent criteria for rules of origin classification.
Sreerupa Sengupta, Ph.D. Scholar at Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi discussed Trade Cooperation and Production Sharing in South Asia – An Indian Perspective. Reviewing the pattern of Indian exports and imports in the last twenty years, her research focuses on comparing the Global Value Chain (GVC) participation rate of India with East Asian and ASEAN economies. Barriers to higher participation include a) lack of openness in the FDI sector; b) lack of adequate port infrastructure, and long port dwell times; and c) lack of Mutual Recognition Agreements (MRAs).
Aamir Khan, Assistant Professor, Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad presented his work on Economy Wide Impact of Regional Integration in South Asia - Options for Pakistan. His research analyzes the reasons for Pakistan not being able to take full advantage of its Free Trade Agreement (FTA) with China, and finds that the granting of ASEAN-type concessions to Pakistan in its FTA with China would be more beneficial than the current FTA arrangement. The work also draws lessons for FTAs that are currently being negotiated by South Asian countries.
For decades, various governments around the world have used trade-distorting policies (tariff and non-tariff barriers) to support the development of local automotive industries that would not have otherwise been economically viable. However, to what extent are these policies, which once helped attract market-seeking automakers (or Original Equipment Manufacturers: OEMs), still serving the interests of these countries is uncertain.
In fact, for India and Pakistan, two of the biggest South Asian automotive producers, a recent World Bank Group report highlights that such polices might be reducing competitiveness and slowing down the spread of world-class good practices in the value chain. These effects need to considered carefully. A process of reform via gradual reduction of import tariffs and convergence with international environmental and safety standards is recommended to enhance competitiveness of this sector.
In the automotive sector, India is the world’s sixth-largest auto producer by volume, but it owns less than 1 percent of global export markets compared with more than 3 percent for China, 4.5 percent for Korea and 7 percent for Mexico. The average auto firm in India exported only 5 percent of its total sales, compared to 16 percent in China. Productivity levels in India are one-third the levels in China, and this gap persists for OEMs that are sub-scale, with below-average investment in innovation and skills, and with low participation in global value chains (GVCs). All these factors were discussed in a previous Private Sector Development blog post. The situation is worse in Pakistan, with lower levels of exports and productivity, and with similar factors driving it.
Trade policies, through tariff and non-tariff barriers, play an important role in shaping the external environment, which in turn influences a firm’s incentive to become more productive (or not). Firms facing greater competition in their product markets are inclined to raise the minimum productivity threshold to operate profitably and reduce inefficiencies. They do this both through investing in productivity-enhancing activities and through reducing costs, which in turn helps them capture greater market shares. Competition also helps reallocate resources from the less-productive to the more-productive firms, increasing the incentives for all firms to invest in the within-firm productivity levers such as innovation and skills.
The 2030 Agenda for Sustainable Development rightfully points out that sustainability has three dimensions: economic, environmental, and social. The first two are well understood and well measured.
Economic sustainability has a whole strand of literature and the World Bank and IMF devote a lot of attention to debt and fiscal sustainability in their reports. Just open any Article 4 consultation or any public expenditure review and you will find some form of fiscal or debt sustainability analysis.
The same can be said about environmental sustainability. Since Cancun (COP16), countries prepare National Adaptation Plans, and since COP 21, they have prepared Nationally Determined Contributions (NDCs) which focus on domestic mitigation measures to address climate change.
Everybody depends on it; there is no substitute for it if we run out; in some places, it’s more valuable than oil. Freshwater is at the very core of human development: it is inextricably linked to food security, economic growth, and poverty reduction.
At face value, water use for food production today largely occurs at the expense of ecosystems, which is the number one reason for their rapid degradation. Already, a quarter of the world’s major rivers no longer reach the ocean.
According to a new study published by Nature Communications, about 40% of global irrigation water is used unsustainably and violates life-supporting environmental flows of rivers. To achieve the UN’s Sustainable Development Goal (SDG) 6, these water volumes need to be re-allocated to the ecosystem, which puts a heavy strain on current agricultural water use: food production would drop by at least 10% on half of all irrigated land, with losses of 20-30% at the country level, especially in Central and South Asia.
Public spaces such as streets, open spaces, parks, and public buildings are a big part of cities that are often overlooked. Inadequate, poorly designed, or privatized public spaces often generate exclusion and marginalization and degrades the livability of the urban environment. That is why the importance of public spaces are now embedded within the Sustainable Development Goals.
In dense built-up cities like Karachi, Pakistan, public spaces are even more important. These are areas of respite and recreation from the stress of city life. They are also social and cultural spaces where livelihoods and businesses are conducted, especially for the urban poor. Public open spaces in Karachi have suffered from rapid urban growth:
The total share of green space detectable in satellite imagery has fallen from 4.6% in 2001 to 3.7% in 2013.
Large tracts of vacant land in prime areas in the city center are closed off to the public and neglected.
Twelve square kilometers of prime waterfront area, often a valuable public asset in other cities, is still mostly undeveloped more than 10 years after the roads were built.
Many sidewalks in the main commercial areas and busy corridors are broken down, converted to unregulated parking areas, or used for dumping trash—to the detriment of pedestrian safety and public health.
In a focus group, women also remarked on the lack of safe playgrounds or other recreational facilities for children.
Recently the World Bank Group approved a loan for the Karachi Neighborhood Improvement Project (KNIP) to finance improvements in public spaces in the city’s selected neighborhoods and to strengthen the city government’s capacity to provide certain administrative services such as business registration and construction permits. The investments in safety, walkability and access to public transit nodes are also timely, given the city’s plans to introduce a system of Bus Rapid Transit within the city and in two of the three neighborhoods.
Beyond the investments in the physical space and urban design, a key design feature of KNIP is its emphasis on active and sustained engagement with the residents of Karachi. The project aims to use a participatory planning process to identify, prioritize, and design highly impactful enhancements to public areas such as sidewalks, open spaces and green spaces, and public buildings. While the exact nature of investments will be determined through community consultations, they may include safety features for pedestrians and other non-motorized transportation, accessibility and mobility improvements close to commercial areas and planned transit stations, new or upgraded neighborhood parks and playgrounds, infrastructure to foster safe and vibrant street activity (kiosks for vendors, tables and seating, temporary street closures for festivals, etc.), measures to address traffic congestion and parking, and improved municipal services in public areas (street lighting, garbage collection, drainage, etc.).
KNIP is intended to be an entry point to showcase the value of participatory planning and inclusive urban design, as the first step in a longer-term strategy for city transformation and rejuvenation. Building confidence and inclusiveness in city management is critical to ensure the success of deeper institutional reforms and larger infrastructure investment programs down the road. KNIP is expected to help lay the foundation for a multi-year partnership between the World Bank Group and the local and provincial governments focused on inclusivity, livability, and prosperity. To this end, KNIP will also support the creation of a Karachi Transformation Steering Committee (KTSC), comprised of elected officials, government representatives, business leaders, community stakeholders and NGOs representing various public interests. KTSC’s mandate is to develop a shared vision for Karachi’s transformation and a roadmap to achieve that vision in an inclusive way.
It will take Karachi as much as $10 billion of capital investment over the next decade to close the infrastructure gaps in the city.
On the ground, it is not too difficult to see why this is so. More than 40% of residents rely on public transport, but with 45 residents competing for one bus seat, travel within the city is difficult. Water supply is highly irregular, and rationing is widespread. The availability of water ranges from four hours per day to two hours every other day. Many households rely on private vendors who sell water from tankers at high prices. The sewage network has not been well maintained since the 1960s, and all three existing treatment plants are dysfunctional. Industrial waste, which contains hazardous materials and heavy oils, is dumped directly into the sea untreated. Of the 12,000 tons of municipal solid waste generated each day, 60% never reaches a dumpsite; 80% of medical waste is not disposed of properly.
Last week on World Population Day, I was thinking of the joy of children and the right of women to decide when to have them. It matters to women, but it matters to society as a whole. There can be no sustainable development without women’s empowerment, and there can be no women’s empowerment without access to comprehensive maternal and reproductive health services. Family planning is part of them.
Compared to their investment needs, developing countries have very limited concessional financing available to them. International commercial banks are constrained in terms of the size and tenors of credits to Emerging Markets and Developing Economies. A key challenge therefore, is to channel large savings and capital into productive investments in developing countries, partly by ‘de-risking’ investments and borrowings. Pakistan is at the forefront of these efforts, recently making use of two World Bank guarantees to access over 1 billion US dollars in two international commercial loan financings.
A $420 million IBRD Policy Based Guarantee (PBG) was approved by the World Bank Board alongside a $500 million IDA credit in June 2016. The PBG guarantee partially takes over the risk of a commercial bank’s loan to a government. The PBG and the IDA credit supported a program of reforms including the adoption of a new and more inclusive poverty line, efforts to broaden the tax base, enhanced transparency of State Owned Enterprises, improved debt management and a significant overhaul of the regulatory framework of the financial sector. Improved access to international financing through the PBG will reduce the government’s dependence on domestic financing and free up resources for private sector investment. The guarantee also signals the World Bank’s confidence in Pakistan’s economic reforms program – a signal that is particularly important after the successful completion of the IMF program. The government used the US$420 million PBG to partly guarantee a 10-year US$700 million loan, extending tenor significantly and achieving cost savings.
Standing in line to sign up for the Digital Youth Summit in Peshawar this May, I struck up a conversation with a young woman from Peshawar. I was pleasantly surprised by her level of interest and eagerness in participating at the tech conference. She was keen to develop an app that would allow her to sell home-based food products at a national level. She had already gathered a group of friends who would work with her on different aspects of task planning and implementation. Her enthusiasm was palpable and infectious. Born and raised in South Asia, I understand the constraints local women face in largely male dominated societies. I was therefore heartened by the large turn-out of women queuing to enroll for the workshops.