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Small states (SST)

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.  

Beyond Remittances: How 11 Million Migrants from the Arab World can Impact Development

Mariem Mezghenni Malouche's picture
Arne Hoel l World Bank

The Middle East and North Africa region has a large diaspora. According to the latest United Nations estimates, 11 million citizens from the MENA countries lived abroad in 2013. Many of the members of this group hold prominent positions in their adopted countries. They have the potential to contribute to the development of industries in their countries of origin. Executives in multinationals can influence the choice of locations abroad in increasingly defragmented supply-chains. This is especially relevant for members of the diaspora.  Seddik Belyamani, originally from Morocco, was Boeing's top airplane salesman, and was instrumental in converting an initial push-back by Boeing’s executives into an interest and a first mover investment in Morocco. 

Creative Ways Youth Can Help Feed the Future

Andy Shuai Liu's picture
How do you imagine your life 10 or 20 years from now? What if I told you that one day, there might not be enough food on your plate?
 
It is no exaggeration. Today, around 800 million people go to bed hungry every night. By 2050, we will need to produce at least 50% more food to feed a population on track to reach nine billion.
 
That’s a daunting challenge for our food systems, our planet, and our generation.
 
If we keep eating our planet, what will be left for our children and ourselves in the future? In other words, how will we nutritiously feed nine billion by 2050 in the face of environmental threats?
 

How Can Innovative Financing Solutions Help Build Resilience to Natural Disasters?

Francis Ghesquiere's picture
Resilience Dialogue 2014


By Francis Ghesquiere and Olivier Mahul

This week, the Resilience Dialogue, bringing together representatives from developing countries, donor agencies and multilateral development banks, will focus on financing to build resilience to natural disasters. 

There is growing recognition that resilience is critical to preserving hard won development gains. The share of development assistance supporting resilience has grown dramatically in recent years. New instruments have emerged in particular to help client countries deal with the economic shock of natural disasters. In this context, an important question is which financial instruments best serve the needs of vulnerable countries? Only by customizing instruments and tools to the unique circumstances of our clients, will we maximize development return on investments. Clearly, low-income countries with limited capacity may not be able to use financial instruments the same way middle-income countries can. Small island developing states subject to financial shocks where loss can exceed their annual GDP face vastly different challenges than large middle-income countries trying to smooth public expenditures over time or safeguard low-income populations against disasters.

Will South Asia Take Advantage of its Export Opportunity?

Markus Kitzmuller's picture
The Port of Chittagong at night in Bangladesh. South Asia has a great opportunity to increase exports to realize greater growth and prosperity.
​Photo by: Shahadat Rahman Shemul 

Watching export growth across South Asia surge in the recent past leads one to ask the obvious but crucial question: Will this trend continue in the longer term and is South Asia on its way to become an export powerhouse, or has it just been a short term, one-off spurt provoked by external forces?

Clearly, the rupee depreciation following tapering talk in May 2013 and the recovery in the US constituted favorable tailwinds; however, our analysis in the fall 2014 edition of the South Asia Economic Focus finds that there are more permanent factors at play as well. South Asia is no exception to the trend across developing countries of increasing importance of exports for economic growth. While starting from a low base, the region saw one of the starkest increases in exports to GDP, pushing from 8.5 percent in 1990 to 23 percent in 2013.

What Smart(er) Politicians Do With Subsidies: Jobs

Heba Elgazzar's picture


What makes smart politicians?  Jeffrey Frankel has an idea.   His recent blog examines the allure, and trap, of universal subsidies.   For one thing, they know that pulling the plug on bad policies should be done sooner rather than later.  The same can be said of other policies related to investment and labor legislation.  Economic democracy is a great thing.  However, beware of misguided routes to achieving it. 

From plastic to pavement: Another example of creative waste management

Yara Salem's picture
plastic waste in Comoros
What if this “river” of plastic waste could be turned into a road to connect farmers to markets? (Photo: Farouk Mollah Banna/World Bank)

You cannot imagine my surprise while reading a BusinessWeek article last July about an innovative way to transform India’s litter into partial substitute for bitumen in asphalt to build roads!

Well, this transformative method arguably holds larger potential than the “garbage to music” recycling approach I recently wrote about in my first post about creative ways to manage waste. “Garbage to roads”  was pioneered by an Indian chemist called Vasudevan, and it could help not only in getting rid of tons of plastic litter- thick acrylics and bottles, grocery bags and wrappers-- but in building roads at the same time. It’s a win-win solution for all.

Q/A: Sally McGregor on Jamaica’s Pioneering Role in Early Childhood Development

Daphna Berman's picture
Sally McGregor working in Bangladesh, taken 13 years ago

Sally McGregor was a newly trained physician when she moved to Jamaica in 1965 from England for what she called a one-year “adventure.”  She ended up marrying and staying 35 years. It’s a good thing she did. The impact evaluation of a program she designed to improve the development of chronically malnourished toddlers in Jamaica is changing how the development world views – and tries to improve – the problems faced by disadvantaged children all over the world.

Nowhere to Go

Rachel Kyte's picture


In the weeks running up to the 3rd International Conference on Small Island Developing States, out of frustration and a sense that they must look after themselves, a new alliance was born: the Coalition of Atoll Nations on Climate Change. Or, as President Tong of Kiribati called it, the "alliance of the sinking". The coalition comprising Tuvalu, Kiribati, Marshall Islands, Maldives, Cook Islands, and Tokelau, with Micronesia associated as part of their territory, is atoll territory.
 
These nations have tried everything to bring their situations to the climate negotiators' and development organizations' attention and have their special situation recognized. With just 15 months until the Paris climate negotiations, they seek in a group to be able to support each other and to make themselves heard. 

Restoring Ocean Health Can Spur Blue Growth in the Islands

Valerie Hickey's picture

Healthy oceans provide food and income for island nations, including through tourism. Valerie Hickey/World Bank

Running from event to event to partnership dialogue here in the beautiful island of Upolu, Samoa, while listening to delegates to the 3rd annual Small Island Developing States Conference, two things ring loud and true: Small islands need ocean-based economic growth to diversify their economies, attract investment, grow their GDP, increase jobs, and end pockets of extreme poverty. And strong ocean-based economies need healthy oceans.
 
Great ocean states know this. They know that they cannot afford the boom and bust cycle that emerges as natural capital is liquidated and the ocean emptied and trashed. But small islands cannot forsake growth in the name of conserving natural resources either. We can fish the oceans empty; but we mustn’t. The future of growth, jobs, resilience all depend on the sustainable management of the resources of the ocean. For small islands, blue growth is critical; done smartly, blue collapse is avoidable.


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