East Asia and Pacific
Over the past three decades, China’s unprecedented pace of urbanization has allowed more than 260 million migrants to move from agriculture to more productive activities. This has helped 500 million people escape poverty and for China to grow at an average 10 percent a year for three consecutive decades. At the same time, between 2000 and 2014, weather-related disasters caused more than RMB 4.645 trillion ($749 billion) in damages.
There is strong evidence that climate change is altering the profile of hazards. The observed frequency and severity of extremely heavy rain storms since the 1950s in China have significantly increased and future climate scenarios suggest that interannual variability in rainfall may increase further, aggravating the risk of flooding and as well as severe lack of water.
Over the past two decades, the city of Lishui in Zhejiang Province of China suffered from devastating floods, landslides, as well as heat waves. Today, the over 2 million people of Lishui have a lot to be proud of. Their city is recognized as China’s “top ecological, picturesque paradise for healthy life and home of longevity”. This is the result of close attention from city and provincial officials in understanding the root causes of the problems caused by the changing climate. This has been followed by inclusive planning, design and implementation of technically sound projects that are in harmony with the rivers flowing through the city in concert with the surrounding hilly terrain’s natural and city-wide storm water drainage systems.
Myanmar in 2012, when we started our financial sector engagement, and Myanmar today seem like two different worlds. Back then, sim cards cost close to US$500, visitors carried wads of crisp, new dollar bills, Yangon streets were filled with old models of Toyotas and Nissans, while the capital Nay Pyi Taw had only rickety hotels. Now streets lined with old shops have given way to $1 sim cards, brand new car models, international hotel chains and gleaming new shopping malls. ATMs and “We accept Visa and Master Card” signs are now nearly ubiquitous in the country’s cities.
In the spring of 1997 I conducted the research for a study of Mongolia’s informal sector. It was the first such study in the country and there was a blank slate in terms of information. I was fascinated by how rapidly it had grown, by questions about the size of the sector, by how people working in the informal sector see and organized themselves, by informal entrepreneurship and the spontaneity of markets.
I had as much fun as I have had in my career before or since, poring through statistics, interviewing taxi drivers and shoe shine boys. I interviewed officials on how they decide to provide permission for kiosks to set up shop and how they collaborate with informal (i.e., private, independent) buses. I worked with the NSO and the Ulaanbaatar city statistics department to do a survey to put some numbers with the stories.
We may not know exactly what the world will look like in two decades, but we know this: it is going to be a world of cities.
Each year, urban areas are growing by an average of more than 75 million people – more than the population of the world’s 85 smallest countries combined.
For the world’s economy, this is great news, since cities produce 80 percent of global GDP, despite currently being home to only 55 percent of the population. But it is a problem for urban infrastructure, which can’t keep up with such fast-paced growth. As a result, – from flooding and landslides that can decimate informal housing settlements, to earthquakes that can devastate power grids and water systems.
These risks could be disastrous for the urban poor, 881 million of whom currently live in slums (up 28 percent since 2000). And climate change – which is increasing the intensity and frequency of natural disasters – will only exacerbate the problem. For this reason, multilateral and government institutions now see resilience and climate adaptation as integral pillars of development.
The Swiss State Secretariat for Economic Affairs (SECO), for example, considers low-emission and climate-resilient economies to be key to global competitiveness. A recent report by the World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR) found that climate change may force up to 77 million urban residents into poverty by 2030 – unless we take action to improve the resilience of cities around the world.
When I was in primary school, there was a large construction project happening on the road in front of our house. I remember it was loud, dusty and the subject of constant complaints from our neighbors. However, my most vivid memory is of all the shiny, majestic machinery being delivered by the workers in their bright orange uniforms.
There was an immediate fascination among the children with these powerful and temptingly dangerous machines. Of course our parents all drilled us with the same message – “Do not go near, do not touch, do not interfere with the nice men repairing the roads,” and so we abided, but the curiosity and thrill of potentially touching these metal monsters never entirely subsided. Luckily, working in the transport sector now I get to be around construction equipment all the time!
Just two years ago, Ghana was experiencing unstable commodity prices and a deteriorating macroeconomic situation. Yet, through a unique combination of World Bank guarantees nearly $8 billion in private investment was mobilized for the Sankofa Gas Project—the biggest foreign direct investment in Ghana’s history. The transformational project helped address serious energy shortages and put the country on a path to economic growth.
This is just one example illustrating how risk mitigation products play out in practice to encourage private sector investment and improve people’s lives.
- Public-Private Partnership in Infrastructure Resource Center
- Public Private Partnerships
- Public private partnership
- Private Sector Development
- Global Economy
- Financial Sector
- Latin America & Caribbean
- East Asia and Pacific
- Lao People's Democratic Republic
What do you imagine when you hear the words “capacity development”? Most development professionals associate capacity development with training, seminars and perhaps study tours. Most of the countries the World Bank works in require a significant boost in their capability to implement policies, programs and projects, especially in countries supported by the Bank’s fund to the poorest, International Development Association (IDA).
For training to be sustainable and have high impact, it should be targeted to a particular public sector problem, and coupled with initiatives to improve organizational and institutional capacity.
In 1950, the average working-age person in the world had almost three years of education, but in East Asia and Pacific (EAP), the average person had less than half that amount. Around this time, countries in the EAP region put themselves on a path that focused on growth driven by human capital. They made significant and steady investments in schooling to close the educational attainment gap with the rest of the world. While improving their school systems, they also put their human capital to work in labor markets. As a result, economic growth has been stellar: for four decades EAP has grown at roughly twice the pace of the global average. What is more, no slowdown is in sight for rising prosperity.
High economic growth and strong human capital accumulation are deeply intertwined. In a recent paper, Daron Acemoglu and David Autor explore the way skills and labor markets interact: Human capital is the central determinant of economic growth and is the main—and very likely the only—means to achieve shared growth when technology is changing quickly and raising the demand for skills. Skills promote productivity and growth, but if there are not enough skilled workers, growth soon chokes off. If, by contrast, skills are abundant and average skill-levels keep rising, technological change can drive productivity and growth without stoking inequality.
- boost prosperity
- Knowledge and Skills
- job market
- job creation
- Social Development
- Public Sector and Governance
- East Asia and Pacific
- Solomon Islands
- Papua New Guinea
- Micronesia, Federated States of
- Marshall Islands
- Lao People's Democratic Republic
- Korea, Republic of
China has seen a booming tourism industry during the last few decades, thanks to a fast-developing economy and growing disposable personal income. , and 8.4% of the country’s total employment. Not surprisingly, cultural heritage sites were among the most popular tourist destinations.
But beyond the well-known Great Wall and Forbidden City, many cultural heritage sites are located in the poorer, inland cities and provinces of the country. If managed sustainably, —especially ethnic minorities, youth, and women—find jobs, grow incomes, and improve livelihoods.
“[Sustainable tourism] is not only the conservation of the cultural assets that are very important for the next generations to come, but, also, it’s the infrastructure upgrading, it’s the housing upgrading, and it is the social inclusion to really preserve the ethnic minorities’ culture and values – it is an interesting cultural package that is very valuable for countries around the world,” says Ede Ijjasz-Vasquez, a Senior Director of the World Bank.
To help reduce poverty and inequality in China’s lagging regions, —with the Bank’s largest program of this kind operating around 20 projects across the country. These projects have supported local economic development driven by cultural tourism.
“Over the years, the program has helped conserve over 40 cultural heritage sites, and over 30 historic urban neighborhoods, towns, and villages,” according to Judy Jia, a Beijing-based Urban Analyst.
Watch a video to learn from Ede Ijjasz-Vasquez (@Ede_WBG) and Judy Jia how cultural heritage and sustainable tourism can promote inclusive growth and boost shared prosperity in China, and what other countries can learn from this experience.
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