Since the 1990s, inequality has risen faster in Indonesia than in any other East Asian country apart from China. In 2002, the richest 10 per cent of households consumed as much as the poorest 42 per cent. By 2014, they consumed as much as the poorest 54 per cent. Why should we be worried about this trend? What is causing it, and how is the current administration addressing rising inequality? And what still needs to be done?
Inequality is not always bad; it can provide rewards for those who work hard and take risks. But high inequality is worrying for reasons beyond fairness. High inequality can impact economic growth, exacerbate conflict, and curb the potential of current and future generations. For example, recent research indicates that, on average, when a higher share of national income goes to the richest fifth of households, economic growth slows—whereas countries grow more quickly when the poorest two-fifths receive more.
El 25 de abril, el día del terremoto, mis colegas y yo estábamos organizando la exposición final de los estudiantes para celebrar el término del periodo escolar de 12 semanas. Había 12 niños y sus padres cuando se produjo el sismo. Nuestro primer instinto fue que los estudiantes estuvieran a salvo; logramos mantener la calma, nos reunimos todos en un espacio abierto y nos mantuvimos fuertes. Después de que las réplicas cesaron, supimos cuán devastador había sido realmente el terremoto. Llamamos de inmediato a nuestros seres queridos. Fue un alivio saber que todos nuestros conocidos estaban bien.
Soy profesor en Karkhana, (i) una empresa que diseña y entrega contenidos prácticos basados en STEAM (ciencia, tecnología, ingeniería, artes y matemáticas) a los estudiantes de enseñanza secundaria de Nepal.
Los dos primeros días después del terremoto, nos dimos cuenta rápidamente de que las personas sin ningún tipo de conocimientos especializados, como primeros auxilios, saneamiento, enfermería, construcción y rescate no eran de mucha ayuda en los esfuerzos de socorro.
La única manera de contribuir era hacer lo que sabemos hacer bien: enseñar.
Over the last 20 years, economic growth has helped to lift almost a billion people out of extreme poverty. But 1 billion people are still extremely poor. 1.1 billion live without electricity and 2.5 billion people without access to sanitation. For them, growth has not been inclusive enough.
In addition, growth has come at the expense of the environment. While environmental degradation affects everyone, the poor are more vulnerable to violent weather, floods, and a changing climate.
Development experts, policymakers, and institutions like the World Bank have learned a major lesson: If we want to succeed in ending poverty, growth needs to be inclusive and sustainable.
Successful slogans can make a world of difference. In Vietnam, a catchphrase for a climate-smart way to produce rice has shown small farmers how they can boost rice profitability, while also reducing greenhouse gas emissions.
The World Bank discovered this through an Agriculture Competitiveness Project in Vietnam, which championed an alternate wetting and drying rice production technique that uses less water, reduction in application of fertilizers and management of crop residues to reduce the level of methane and nitrous oxide emissions from the rice fields. Adopting this climate-smart practice required the systematic engagement of the entire community committed to draining the rice fields multiple times over a matter of weeks, something traditionally rarely done. Adopting this alternate wetting and drying technique not only helps strengthen plant roots but also reduces flooding periods which translates into reduced methane production.
We observed that over 78 percent of refugees in rural settlements, where they receive agricultural land, are engaged in agricultural activities compared to 5 percent in urban areas. Crop surpluses attract Ugandan traders to the refugee settlements, operating as a direct supply chain for sale of agriculture produce but also supply of agriculture inputs like fertilizers and seeds.
However, about 66 percent of respondents reported that local traders use faulty scales when weighing produce, which shortchanges them. Seventy percent decried the extremely low prices offered by local traders for produce, with implications for the ability and timing of refugees to become self-reliant. This was made worse by the significant losses in quality and quantity of agriculture produce due to poor harvest handling techniques and inadequate storage facilities, and surpluses were sold immediately after harvest at the lowest point in the price cycle. This shows that while refugees have land to cultivate, they are unable to realize the potential due to lack of technical, infrastructural and marketing support, contributing to food insecurity and under nutrition among smallholder farming refugee families, especially during lean seasons.
Business enterprises such as bars, hair dressing, milling, transportation, money transfers, and retail are run by refugees. Twenty-eight percent of female refugees are involved in agriculture, trade, or are self-employed; their participation in the formal sector is low—only 9 percent. Initiatives such as Community Savings Groups and women savings and credit groups have provided female refugees with seed money to start businesses. There is reportedly some level of gender discrimination with respect to access to land, credit, employment, and self-employment opportunities.
We observed that almost 43 percent of the refugees are actively engaged in the labor market of their host communities: 12 percent in the formal sector and 31 percent self-employed. However, refugees expressed constraints accessing formal employment both in urban areas and rural settlements, relating to unfamiliarity with the language, legal issues, poor interview skills, discrimination, and a lack of relevant documents. Refugees are mainly engaged in occupations that provide little income, social protection, or job security.
Refugee settlement areas have attracted the attention of Ugandan private enterprises, such as the Ugandan telecom companies, which launched several initiatives aimed at targeting refugee users of SMS banking and transfer services. For example, Orange Uganda Limited, a provider of telecommunication and Internet services in Uganda, invested in a large radio tower in the Nakivale settlement to promote its "Orange money" services. In Rwamwanja and Adjumani, a number of refugees operate as mobile money unit agents providing employment for them, while facilitating other refugees in accessing remittances from their relatives and friends within or outside the country. This mobile money is hugely helpful to refugees trying to meet expenses, including school fees for their children.
But in Uganda, and across the rest of the Horn of Africa, refugee camps and settlements are located in areas where the host communities are among the most underserved, with significant development deficits of their own. The majority of refugee settlements in Uganda are in the relatively stable north, though it has communities still in a state of latent conflict, driven by new and long-standing grievances, poverty, perception of marginalization, competition over national resources, and societal fracture as legacies of decades of violent conflict. The region also has high levels of poverty and youth unemployment which poses challenges to refugee efforts at self-reliance.
We see a huge opportunity in Uganda with the recent government-led efforts to address the development challenges of settlements that are home to locals and refugees with the inclusion of the Settlement Transformative Agenda (STA) as part of National Development Plan II (NDP II 2015/16–2019/20). The STA aims to promote social and economic development in the refugee hosting areas for both locals and refugee communities in partnership with the UN agencies in Uganda, the World Bank and other stakeholders. The World Bank is supporting this effort through the Development Response to Displacement Impacts Project (DRDIP) in Uganda, which will help improve access to basic social services, expand economic opportunities, and enhance environmental management for communities hosting refugees in Adjumani, Arua, Isingiro and Kyriandongo districts.
Y Cham, whom I met during a mission to plan for our support for the coffee rejuvenation project, comes from the Ede ethnic minority in Dak Lak, the major robusta coffee-producing province in the Central Highlands of Vietnam.
The long-time farmer shared with me his worries about his four hectares of coffee garden which had not been watered enough due to the prolonged drought.
“If I cannot harvest as much coffee as last year, I cannot sustain the studies of my daughter who is a student at medical college in Hanoi”.
The Central Highland, home of 500,000 hectares of coffee, has recently been affected by severe drought. The drought this year is considered most the most serious in the last 10 years. Over-irrigation and inefficient water use, compounded by increasing periods of drought, makes coffee farmers highly vulnerable, unless they are prepared to better adapt to the changing weather patterns.
Among the crucial factors for coffee yield, water, according to Y Cham, has become the biggest challenge in the priority order of “water, variety, funding, and science.” Water availability and advanced varieties resistant to the conditions of climate change are considered the most important factors.
Over the past several weeks, we have made headway in our efforts to reduce deforestation and promote sustainable land use as part of a broader World Bank Group approach to combat climate change. Partnering with the Forest Carbon Partnership Facility (FCPF), the Democratic Republic of Congo has taken a major step by assessing its readiness for a large-scale initiative in which developing forested countries keep their forests standing and developed countries pay for the carbon that is not released into the atmosphere. Likewise, other countries in the 47-country FCPF partnership are making strides in their efforts to prepare for programs that mitigate greenhouse gas emission and support sustainable forest landscapes.
Comment l’amélioration de l’infrastructure routière peut-elle changer la vie ? Dans quelle mesure la population bénéficie-t-elle des projets routiers ? Répondre à ces questions – en apparence simples – est en fait plus difficile qu’il n’y paraît.
La Banque mondiale a récemment évalué les impacts socioéconomiques que les programmes d’amélioration de l’infrastructure routière qu’elle finance produisent sur les ménages pauvres vivant dans les zones rurales de l’État de Tocantins, au Brésil. Quels sont les résultats obtenus et les enseignements que l’on peut tirer de cette étude menée sur 10 ans ? Et comment cette évaluation s’est-elle déroulée ?
Consumers around the world increasingly demand products and services that are simultaneously good for the economy, for the environment, and for society—the triple bottom line of sustainable growth. This rising demand is creating new pathways for businesses and governments to drive change for global good.
Global value chains represent one of the key ways the World Bank Group approaches these new opportunities. By better understanding GVCs, low-income countries can become participants in increasingly fragmented international production processes. GVCs thus offer tremendous potential to better connect the poor to the global economy and its benefits—more and better jobs, higher wages, improved labor conditions, and lower environmental impact.
That’s why we have been developing a new approach that brings the best of the Bank Group together to help low income countries connect to and upgrade within GVCs. Helping firms in developing countries meet the standards of global buyers and lead firms is a part of this effort, because in today’s sophisticated and highly mobile economy, meeting global standards is no longer optional—it’s a necessary condition for being competitive.