Bangladesh's economy is currently subject to probably the harshest test of resilience it has faced in recent memory. In the past, growth continued to be resilient despite several external shocks that slowed exports, remittance, and investment. Bangladesh’s resilience to global shocks came from strong fundamentals at the onset of the crisis, competiveness of exports and migrant labor, relatively under-developed and insulated financial markets, and a pre-emptive policy posture. Bangladesh has a robust disaster management capacity to deal with natural disasters, undertake rescue operations, and conduct post-disaster relief and rehabilitation.
A huge and chaotic conversation over how to respond to the appalling Rana Plaza factory collapse in Bangladesh (where the death toll has now passed an unprecedented 1100) is producing some important initial results, in the form of the international ‘Accord on Fire and Building Safety in Bangladesh’, launched last week.
I got a glimpse of the background on Wednesday at a meeting of the Ethical Trading Initiative, which brings together big brand retailers, including garment companies, trades unions and INGOs like Oxfam to work on wages and conditions in company supply chains. The Accord got some pretty rave reviews – ‘absolutely historic’, said Ben Moxham of the UK Trades Union Congress; comparable to the 1911 Chicago factory fire, according to one of the big clothes retailers at the meeting.
So what does it say? The Accord covers independent safety inspections, publicly reported; mandatory repairs and renovations; a vital role for workers and trade unions, including a commitment to Bangladesh’s Tripartite Plan of Action on Fire Safety (a national initiative). A key, and controversial aspect is that the Accord will include a legally binding arbitration mechanism, which wins a lot of trust from civil society and trade unions, but has spooked a number of companies based in the litigation-tastic USA (not all though – part of Tommy Hilfiger’s in there, while Abercrombie and Fitch have said it they will join).
According to recent estimates, South Asia is facing a shortage of 38 million housing units, largely affecting low and middle-income households. It comes as no surprise that informal settlements, slums and squatters are growing in all major urban centers across Asia to supplement the demand from urban poor. India alone has 52,000 slums inhabited by 14 percent of its total urban population. Almost, 50 percent of total population in Karachi, i.e. 7.6 million persons, lives in Katchi-Abadis. Bangladesh has 2,100 slums and more than 2 million slum dwellers in Dhaka. Even in Afghanistan, 80 percent of residents in capital city, Kabul, live in informal settlements.
This guest post comes from Exfam colleague and education activist Swati Narayan
This summer, India missed the historic deadline to implement the Right of Children to Free and Compulsory Education Act, 2009. This landmark law, the fruit of more than a decade of civil society activism, has many path-breaking clauses. For the first time, it bans schoolteachers from offering private tuition on the side – a rampant conflict of interest. It also legally prohibits corporal punishment.
Most powerfully, it insists that every private school must reserve 25 percent of classroom seats for children from poorer or disadvantaged families in the neighbourhood. This quota is by no means a silver bullet. After all, eighty percent of schools in India are government-run and in dire need of teachers, infrastructure and more.
Nevertheless, this masterstroke, which aims to piggyback on the rest of the mushrooming for-profit private schools, single-handedly opens the door for at least 1 million eligible children each year across the country to receive 8 years of free education.
In the World Bank, we recently did a report titled Bangladesh: Towards Accelerated, Inclusive and Sustainable Growth—Opportunities and Challenges. For this study, we did a survey of 1,000 garment firms to get their perspectives on the drivers and obstacles to urban competitiveness. I report below some key findings from the survey presented in the growth report.
Dhaka City is still the most productive location for garment firms in Bangladesh. Access to markets and a relatively better quality of power supply are Dhaka city’s main comparative advantages. Dhaka has the best-performing city locations for access to skilled labor and power supply––the two factors garment firms’ value most when deciding on location––proximity to suppliers, sub-contractors, machine-repair technicians and support businesses.
Dhaka is falling behind other locations in accessibility and, for some firms, Dhaka city’s costs have started outweighing opportunities. Dhaka is the worst-performing location for urban mobility and access to the highway. Firms in the city also are disadvantaged in access to the port and airport, compared to those located in Chittagong city. Both firms and workers located in Dhaka also struggle with limited availability and high prices of land and housing.
Traditionally, both government and the private sector have struggled to reach remote and poverty stricken parts of India, especially eastern states such as Bihar. Even social entrepreneurs and civil society organizations struggle to apply their innovations because of poor reach and lack of absorption,. However, Jeevika, a program jointly supported by Government of Bihar and the World Bank, has built a community-based institutional platform that can reach millions of poor households in Bihar. It is now offering a unique opportunity to social innovators to capitalize on the platform as well as access to financial capital providing enterprises with a chance for a leap.
There is little empirical regularity that is as universal as the following: no matter what the path of economic development a country has followed, urbanization has been an inevitable consequence across the world. Already half the world’s population is urban. Currently, Asia and Africa are the least urbanized regions, but they are expected to reach their respective tipping points–that is when their urban populations will exceed the rural population–in 2023 and 2030. While the urban transition occurs with diverse growth patterns at different times, the real challenge for governments is to take actions that allow residents to make the most of living in cities.
The relationship between urbanization and economic development has long been a popular issue of debate. Should a developing country encourage urbanization? While this is a real dilemma in Bangladesh, because of a highly unfavorable land-population balance, the only alternative Bangladesh has to urbanization is urbanization. The question is not whether Bangladesh should urbanize; the question is how Bangladesh will handle the challenges of urbanization.
“Bye sir!” Rahul was running ahead into the distance. It was hard for me to imagine how he could be running… The cracked soil was incredibly hot and extended all the way to what looked like a lake in the distance. It was not a lake…it was a mirage.
“He wants to be a doctor,” said his mother, who was walking next to me. “His sister does not know yet. She is only 2...”
When I came home from my visit to Gujarat, where we met Rahul Kalubhai Koli in Dhrangadhra in Surendranagar district, I could not stop thinking about him. He is 4 1/2, and he wants to be a doctor.
The latest science, described in the World Bank report “Turn Down the Heat,” indicates that we are heading toward a 4° C warmer world, with catastrophic consequences in this century. While carbon dioxide (CO2) is still the No. 1 threat, there is another category of warming agent called short-lived climate pollutants (SLCPs). Mitigating these pollutants is a must if we want to avoid the 4° C warmer future.
The main SLCPs are black carbon, methane, tropospheric ozone, and hydrofluorocarbons. They are potentially responsible for more than one-third of the current warming. Because SLCPs have a much shorter lifetime in the air than CO2; reducing their emissions can create almost immediate reduction of global/regional warming, which is not possible by reducing CO2 emissions alone. According to one U.N. report, full implementation of 16 identified measures to mitigate SLCPs would reduce future global warming by about 0.5˚C.
In this blog, we will focus on one SLCP – black carbon. Black carbon is a primary component of particulate matter (PM), the major environmental cause of premature deaths globally. As a climate pollutant, black carbon’s global warming effects are multi-faceted. It can warm the atmosphere directly by absorbing radiation. When deposited on ice and snow, black carbon reduces their reflecting power and increases their melting rate. At the regional level, it also influences cloud formation and impacts regional circulation and rainfall patterns such as the monsoon in South Asia.
India’s 12th Five Year Plan (2012-2017) talks of challenges emanating from the economy’s transition to a higher growth path, the structural changes that come with it and the expectations it generates. One pertinent challenge in India, in the context of economic growth at the rate of 8%, is the extent of progress towards the multi dimensional process of inclusive growth. Without doubt, the latter should result in lower incidence of poverty, significant improvements in health care, universal access for children going to school and increased access to skilled development.
These parameters are more critical for an estimated 833 million people in India who continue to live in rural areas and a very large proportion of whom, both men and women, are either wholly or significantly still dependent for their livelihood on farm as well as non-farm activities. A plethora of centrally sponsored flagship rural development programs such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) have been given special impetus aimed at building rural infrastructure and providing basic services with the aim of reducing poverty. These are mandated to be implemented by the provincial governments through institutions of local self governance in the gaze of the well oiled administrative district machinery and increasingly in collaboration with the civil society.
An unprecedented injection of public funds during the 12th Plan Period through decentralized governance, calls for a renewed focus on the dynamics of grassroots empowerment that could enable rural communities to access information about their rights and entitlements made available under these programmes, both by law and policy. This consequently also has implications for accountability in the reach and impact of the public delivery system that the poorest approach. The key question, thus is, what kind of an accessible communication medium, amongst today’s robust social media, should be utilized during the next four years extensively to sensitize and empower the poorest in rural areas in partnership with civil society? Secondly, what are the governance challenges that need to be identified in the above partnership to make the benefits of the envisaged inclusive growth more transparent, participatory and bottom up?
A couple of weeks ago, I blogged about the opening of the 10th Session of the United Nations Forum on Forests, in Istanbul, and Turkish Prime Minister Recep Tayyip Erdoğan’s impassioned challenge to the global community to get serious about stopping the loss of forests. Unusually, he did this without reference to the usual concerns about climate change or biodiversity loss, but instead quite simply said – we have a moral responsibility to stop this.
"The global threats which humanity faces eliminate the luxury of saying, ‘What do I care?’” Erdoğan said. “We are not only creatures of bodies, heads, and brains. We carry hearts, we carry souls, and we carry a conscience.”
So what did the UN Forum accomplish after days of discussions and negotiations? Did the Forum rise to Erdoğan's challenge?
World Bank Group President Jim Yong Kim at Fragility Forum 2013 in Washington D.C. with Lara Logan, CBS News and "60 Minutes" Chief Foreign Affairs Correspondent.
In the late 1990s, my parents and neighbors used to talk about how our fellow Nepalis were killing each other, or how our government was unstable, or how the country was paralyzed. As a teenager who didn’t have much access to mass media, I didn’t fully understand what it all meant. All I knew was that I often used to stay home from school due to strikes imposed by political parties. I would later learn from my dad that the country was going through a civil war.
In 2006, as I was preparing to apply to universities in the United States for an undergraduate degree, Nepal's decade-long civil war was coming to an end. Later, in an undergraduate political science class, I would learn that Nepal is considered a fragile and conflict-affected country. Reflecting on it, I knew that there were numerous other countries like Nepal around the world.
Last week, the Scripps Institution of Oceanography released data showing that CO2 atmospheric levels had briefly passed 400 parts per million (ppm) and were close to surpassing that level for sustained periods of time. This is bad news. At 450 ppm, scientists anticipate the world will be 2 degrees Celsius warmer than pre-industrial times, and world leaders have agreed that’s a point of dangerous consequences.
Along with this grim news came important new research findings from Professor V. Ramanathan of the Scripps Institution at the University of California, San Diego, and other researchers regarding short-lived climate pollutants – black carbon, methane tropospheric ozone and some hydrofluorocarbons (HFCs). While we continue – and must continue – to hammer away at reducing CO2 emissions, their work supports the argument that also reducing these short-lived climate pollutants (SLCPs) can have an immediate effect on slowing warming and the resulting sea-level rise.
- CO2 emissions
- Black Carbon
- Climate Change
- short-lived climate pollutants
- Communities and Human Settlements
- Agriculture and Rural Development
- The World Region
- South Asia
- Middle East and North Africa
- Latin America & Caribbean
- Europe and Central Asia
- East Asia and Pacific
Will improved identification accelerate financial inclusion? ( Credit: Kkalyan, Flickr Creative Commons)
Wherever individuals are excluded from formal financial services the source of the problem is usually a lack of information. Without reliable information about a borrower’s identity or credit history, lenders will compensate for their inability to evaluate risk by raising collateral requirements, charging higher interest rates, or by refusing to lend to certain borrower groups altogether. This leads to financial exclusion, even among otherwise creditworthy borrowers. Technologies that reduce asymmetric information between borrowers and lenders are therefore some of the most powerful tools to reduce financial exclusion. In recent years, much progress has been made to improve credit reporting institutions around the world. But in many countries the challenge is much more basic: much of the world’s population lacks even the most basic identity proof. To address this problem, many countries have experimented with innovative solutions for improved personal identification.
Coal has been a mainstay of Indian energy. It accounts for 63% of India’s energy consumption, and demand is set to grow dramatically over the coming decades. Coal use for electricity generation is projected to grow 2% every year, almost doubling its share of India’s generating capacity by 2030. According to the International Energy Agency, India is likely to become the second-largest consumer of coal, surpassing the United States in the next five years.
Because coal is both cheap and abundant domestically, it may seem like the perfect solution to India’s energy and electricity woes. However, using coal comes with severe health, environmental, and economic effects. As quality of life improves for most Indians on one hand from economic progress, many could be subject to the vagaries of this dirty pollutant. Also, as the world moves closer to a consensus on climate change, using coal at this growing rate may become untenable.
Two recent studies shed light on the huge environmental damage that is done by coal-fired power plants in India. Professor Maureen Cropper and her co-authors at the University of Maryland estimated premature cardiopulmonary deaths associated with air emissions from 89 power plants from all over India. Last week, Professor Cropper presented their analysis in a World Bank seminar. Their study attributes on average 650 deaths per plant per year to directly emitted sulfur dioxide, nitrogen oxide and particulate emissions from coal plants.
Another recent study published by Greenpeace and authored by Sarath Guttikunda and Puja Jawahar presents more dramatic results than the Cropper study. It suggests that in 2011-2012, emissions from Indian coal plants resulted in 80,000 to 115,000 premature deaths and more than 20 million asthma cases from exposure to particulate pollution with an associated cost of $3.3 billion to $4.6 billion.