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Latin America & Caribbean

Tame macroeconomic volatility to boost growth and reduce hardship in the Caribbean

Francisco G. Carneiro's picture
Volatility in financial markets gets wide attention in the public eye. Less noticed is what we in the development world call macroeconomic volatility—faster-than-desired swings in the broad forces which shape an economy. Think investment, government spending, interest rates, foreign trade and the like.

There are three key questions to analyze: how do these forces interact, what is their effect on overall growth, and what policies are best to follow? All this is of more than academic interest: macroeconomic volatility can bring substantial hardships to millions of people

In Bolivia, being female and Indigenous conveys multiple disadvantages

Caren Grown's picture
Florina Lopez spoke movingly about her experience of double discrimination, being both Indigenous and a woman, at the recent launch of the new World Bank Group report, Indigenous Latin America in the Twenty-First Century. Lopez belongs to the Panamanian Indigenous Guna people and has spent decades working for Indigenous movements, starting at the community level and now coordinating the regional Network of Indigenous Women's Biodiversity.

She is one of many Indigenous women in Latin America who have dedicated their lives to creating more inclusive societies. While it is important to acknowledge that not all Indigenous groups and not all women have the same experiences, the concept of intersecting identities helps explain the concept of  "additive" or "multiplied disadvantage" (or advantage). Individuals are part of multiple social structures and roles simultaneously, and these structures interact and influence experiences, relations, and outcomes. 

The intersection of gender and ethnicity, for example, can deepen the gaps in some development outcomes. Indigenous Latin America in the Twenty-first Century explains that, while Indigenous Peoples' access to services has improved significantly, services are generally not culturally adapted—so the groups they are meant to benefit do not take full advantage of them. In Bolivia, where more than 40 percent of people identify themselves as Indigenous or Afro-descendants, according to the 2012 Population and Housing Census, indigenous women face a higher risk of being excluded. Further, according to a 2014 Perception Survey on Women’s Exclusion and Discrimination, all women feel discriminated against in different aspects of their lives, with Indigenous women particularly affected.
 

How does intersectionality and discrimination play out in education and health?

Access to education in Bolivia has improved considerably in recent years. Today, overall primary schooling completion rates and secondary school enrollment rates are similar for boys and girls. Yet major gender gaps persist among Indigenous and rural students.

In urban Bolivia, females are less likely to finish secondary school than males.  In urban areas, an Indigenous female student is about half as likely to finish secondary school compared to a non-Indigenous male student. But an Indigenous rural woman is five times less likely than a non-Indigenous urban man to complete secondary school (see graph, based on Census 2012):
 


Many factors prevent girls from attaining higher levels of schooling in Bolivia, including domestic care work, early pregnancy, and the need for income.  But girls who persist in secondary and higher education face other barriers:  one in five female students aged 15 to 24 report having experienced discrimination in academic environments: 25 percent of Indigenous women versus 18 percent of non-Indigenous women.

The situation is similar in terms of access to key health services.  According to household survey data (2013), while almost all non-Indigenous women in urban Bolivia give birth with either a nurse or a doctor present, that is the case for only 6 out of 10 Indigenous women in rural Bolivia. While this may be explained in part by Indigenous women’s preferences to use traditional parteras, the difference in access rates may also in part be driven by perceived discrimination. According to the Perception Survey, 20 percent of Indigenous women report having experienced discrimination when seeking care, compared to 14 percent among non-Indigenous.

Investments in education and health shape the ability of men and women to reach their full potential, allowing them to take advantage of economic opportunities and lead productive lives. Limited access to these kinds of investments not only adversely affects an individual’s opportunities, but may have significant costs for entire communities and economies.

Inclusion must be front and center on the development agenda. More and better information—both qualitative and quantitative—is needed to highlight the persistent issue of overlapping disadvantages. This will allow us, ultimately, to do much more to expand every person’s capacity to participate fully and equally and achieve his or her potential. As Florina Lopez said earlier this month, "Without the effective participation of Indigenous women in society, it will be difficult to eradicate the poverty and extreme poverty that we live in."

Developing a financial inclusion strategy: 5 lessons from Paraguay

Marlon Rolston Rawlins's picture




Increasing financial access and financial inclusion have proven to be effective in reducing poverty and accelerating economic growth, and are prominent in the new Sustainable Development Goals.

But expanding financial inclusion nationally requires a well-coordinated effort among different stakeholders.

A recent World Bank and FIRST Initiative project in Paraguay has taught us 5 important lessons about developing a national financial inclusion strategy:  Getting the process of developing a financial inclusion strategy right is key to success when implementing reforms later. 

While we’ve published these tips for financial policymakers as part of FIRST Initiative’s Lessons Learned Series, here’s a quick summary of Paraguay’s experience. 

Why are Indigenous Peoples more likely to be poor?

Oscar Calvo-González's picture

Indigenous Peoples face poverty rates that are on average twice as high as for the rest of Latin Americans. This fact is probably not a surprise to most readers of this blog. More intriguing, however, are three additional findings from recent work on the topic.

First, until recently, we did not have as robust quantitative evidence of such poverty gaps as that found in the recent World Bank report Indigenous Latin America in the Twenty-First Century. In fact, not all countries in the region have data on poverty by ethnicity and fewer still have the micro-data needed to understand the stumbling blocks that Indigenous Peoples face on the path out of poverty.

Second, the gap between the poverty rate of Indigenous Peoples and the rest of the population is not getting smaller. In some countries the gap remains stagnant and in others it is actually widening. Why are Indigenous Peoples benefiting less from growth and more likely to be poor? One way to explore these issues is to disentangle how much of the poverty gap between Indigenous and non-Indigenous populations can be explained by factors such as that indigenous peoples tend to live in rural areas, have lower education, etc. The results of such analysis bring us to my final point, illustrated in the chart below.

Source: SEDLAC (World Bank and CEDLAS). Note: the bars represent the percentage of people living on less than US$4 per day 2005 PPP for indigenous peoples and the rest of the population. The poverty rates are calculated using late-2000s weighted average for Bolivia, Ecuador, Guatemala, Mexico and Peru.
*Variables include characteristics of the head of the household (education, age, and gender), family composition (number of non-working members), geographical characteristics (country of residence, rural status) and employment characteristics of the head (sector of employment and occupation).

Lead pollution robs children of their futures

Ernesto Sanchez-Triana's picture
Vicki Francis/Department for International Development

When the water is poor, people get sick: they have diarrhea; their growth is stunted; they die. When the air is poor, people get sick: they cough; they cannot leave their beds; they die. However, they do not look sick when there is lead in their blood. You cannot look at a child who has an unhealthy blood lead level (BLL) and say, "This is not right. Something must be done," because in most cases, there is nothing to see.

Lead (Pb) exposure—which is making headlines in the U.S. because of recent events in Flint, Michigan-- is a major source of critical environmental health risks. But the problem is subtle: Affected children do not perform as well in school. They are late to read. They are slow to learn how to do tasks. Perhaps a few more children are born with cognitive deficits. Perhaps these children have less impulse control. Perhaps they exhibit more violence.

These symptoms are not always understood as an environmental or a public health problem – or indeed a development problem. Instead, people will say it is an issue of morals or of education. They will discipline the children, and then they will take themselves to task and ask how and why they are failing to raise these children correctly. Furthermore, they will have no idea that the problem is in the children’s blood.

Young children are particularly vulnerable to lead exposure. Studies have documented that exposure leads to neuropsychological impacts in children--including impaired intelligence, measured as intelligence IQ losses--at blood lead levels even lower than 5 micrograms of lead per deciliter of blood (µg/dL).  So, clearly, the effect occurs at even very low BLLs. 

Campaign Art: The salt you can see

Davinia Levy's picture

People, Spaces, Deliberation bloggers present exceptional campaign art from all over the world. These examples are meant to inspire.

Salt overuse is a big global health problem. The World Health Organization alerts that most people in the world consume too much sodium. Eating too much salt increases your blood pressure, and high blood pressure is a major risk for heart disease and stroke. Based on WHO data, raised blood pressure is estimated to cause 7.5 million deaths, about 12.8% of the total of all deaths worldwide.

The WHO Guideline on sodium consumption indicates that each adult should consume less than 5 grams of salt per day. According to the video below, Argentinians consume about 15 grams of salt per day. That would be three times above the maximum daily dose recommended by the WHO Guideline.

That’s why in Argentina, the Favaloro Foundation took a unique and colorful approach to help its fellow citizens use less salt in their meals.

Fundación Favaloro - The salt you can see

Source of the video: Grey Argentina

Chart: Higher Poverty Rates for Latin America's Indigenous

Tariq Khokhar's picture

Indigenous people in Latin America account for less than 8% of the population, yet make up more than 17% of the region's extremely poor, due to a persistent pattern of social exclusion. Read More and download the report "Indigenous Latin America in the twenty-first century"
 

Get a bird’s eye view: drones and satellites for improved sectoral governance

Michael Jarvis's picture
Building drones for rainforest monitoring in Puerto Luz, Amarakaeri Communal territory, Peru. Photo: Augusto Escribens, Hivos

Walk into your local Apple Store, and you can leave with a Parrot. A Parrot drone that is. The range of drones on the market is proliferating, so you can pick up a number of species: prefer fixed-wing or copter?
 
Media coverage conjures up daily images of drone use in warfare or spying: more predator than parrot. But could drones have a growing positive role for development if applied creatively and responsibly?
 
The real value of drone images for development will likely come in how they are applied in specific sectoral and institutional contexts. We highlight examples of how drones, operated by communities directly or by government authorities, are used to promote accountability and performance in a variety of applications. Can drones become a standard tool for good governance?
 
Companion blogs will feature drone use for transparency and accountability in local roads investment and natural disaster relief in the Philippines. This blog focuses on the use of drones for monitoring in the extractives sector as featured in the Air and Space Series organized by the Governance and Energy-Extractives Global Practices.

Sustainable cities, two related challenges: high quality mobility on foot and efficient urban logistics (Part I) ​

Bianca Bianchi Alves's picture
 
Peatonito is a Mexican transport specialist using humor to interact with drivers and create awareness about the need to respect traffic rules. Photo: Peatonito / Flick


Walking is the cheapest, most non-polluting, and possibly healthiest mode of transport. And dense cities seem to be a pre-existing condition for enabling us to meet our daily walking needs, along with diversified land uses, typically called “mixed-use development”. Densification and “mixed-use development” are currently seen as a strategy for designing sustainable cities, and many high-quality mobility plans, which consider the interactions between land use and transport, also pursue this type of urban development.

But densification and “mixed-use development” present (at least) two challenges. The first is how to provide quality pedestrian infrastructure that encourages non-motorized mode choices. The second is how to efficiently deliver the large quantities of goods required in these dense cities. These were the themes of successful seminars recently held in Sao Paulo, Brazil, thanks to a World Bank’s Global Environmental Facility grant.
The “mobility by foot” seminar was a four-day learning event on pedestrian mobility organized by Brazil’s Associação Nacional de Transportes Públicos.  In Brazil, as in most cities in Latin America, around 35% of people’s daily trips are on foot, and there is evidence that this number is underestimated given the limitations of current data collection methods. Given the priority in reducing the impact of our carbon “footprint” (or “carprint”), governments need more evidence and incentives to move the sustainability agenda forward.

10 candid career questions with PPP professionals – Marcos Siqueira Moraes

Marcos Siqueira's picture

Editor's Note: 
Welcome to the “10 Candid Career Questions” series, introducing you to the PPP professionals who do the deals, analyze the data, and strategize on the next big thing. Each of them followed a different path into PPP practice, and this series offers an inside look at their backgrounds, motivations, and choices. Each blogger receives the same 15 questions and answers 10 or more that tell their PPP career story candidly and without jargon. We believe you’ll be as surprised and inspired as we were. 


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