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South Asia

The Quest for Aid Effectiveness

Zahid Hussain's picture

A health checkup in Akbarnagar Community Clinic, Bangladesh. Mahfuzul Hasan Bhuiyan/World BankHas foreign aid been helpful for development? What helps and hinders it? What does the evidence say?

The key challenge facing foreign aid globally is its effectiveness.

Research on aid effectiveness has focused on outcomes such as a country’s economic growth or quality of institutions. These studies came to mixed conclusions over whether aid can effectively promote economic development.

Microeconomic evidence paints a reasonably positive picture. The World Bank’s Independent Evaluation Group (IEG) finds that the average rates of return to aid are generally above 20%. Evidence based on randomized program evaluation techniques is also largely positive, indicating that aid-financed interventions can generate substantial benefits for individuals.

Feb 28, 2014: This Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 24 Tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Bhutan, Bangladesh, India, Nepal, Pakistan, Sri Lanka. For regular #SouthAsiaDev updates, follow us on Facebook and Twitter

Pushing the Envelope

Laura Ralston's picture

Giving Cash Unconditionally in Fragile States

2012 Spring Mtgs - Close the Gap There have been many recent press articles, a couple of potentially seminal journal papers, and some great blogs from leading economists at the World Bank on the topic of Unconditional Cash Transfers (UCTs). It remains a widely debated subject, and one with perhaps a couple of myths associated with it. For example, what is cash from UCTs used for? Do the transfers lead to permanent increases in income? Does it matter how the transfers are labelled or promoted? I am particularly interested in whether UCTs could be a useful instrument in countries with low institutional capacity, such as fragile and conflict-affected states (FCS).

Why UCTs in FCS? UCTs present a new approach to reducing poverty, stimulating growth and improving social welfare, that may be the most efficient and feasible mechanism in FCS. A recent evaluation of the World Bank’s work on FCS recognized, “where government responsiveness to citizens has been relatively weak, finding the right modality for reaching people with services is vital to avoiding further fragility and conflict”. Plus there is always the risk of desperately needed finances being “spirited away” when channeled through central governments. UCTs may present a mechanism for stimulating the provision of quality services, which are often lacking, while directly reducing poverty at the same time. As Shanta Devarajan’s blog puts it, “But when they (the poor) are given cash with which to “buy” these services, poor people can demand quality—and the provider must meet it or he won’t get paid.” We should explore more about this approach to tackling poverty: where and when it has worked, what made it work, and whether we can predict whether it will work in different contexts.
 

Treasure-Hunting for Women Entrepreneurs

Qursum Qasim's picture

Pick any country in the developing world.

Say, Pakistan.

Where are the women entrepreneurs in Pakistan?

They start and manage digital-content creation firms serving international clients. They are sole proprietors of construction businesses bidding for government projects. They supervise tailors and embroiderers in windowless storage rooms that double as stitching units. They export high-end gems and jewelry around the world.

Women entrepreneurs in Pakistan lead cutting-edge, innovative businesses – but there are far too few of them. The recent Global Entrepreneurship Monitor report finds that only 1 percent of Pakistani women are engaged in entrepreneurship – the lowest proportion in the world.

Pakistan is not alone in its dismal ratio of growth-oriented (or indeed any kind of) women entrepreneurs. Even in the developed Asian economies of Korea and Japan, only about 2 percent of women are entrepreneurs. Sub-Saharan Africa does much better in this regard, with 27 percent of women, on average, engaged in entrepreneurship -- but they are mostly involved in low-productivity sectors of the economy.

Women entrepreneurs, in Pakistan and globally, have narrow networks of friends and family who provide them with some initial capital to start their small businesses, with little expectation of further financial support. Their export customers are located wherever they have extended family. And they rarely feature in local chambers of commerce activities.

Banks are often reluctant to extend lines of credit to, provide working capital to or lend to women-led enterprises. This makes it difficult for these enterprises to pursue growth. Perhaps this is why the average growth projections for women-led enterprises are seven to nine percentage points below those for their male counterparts.

Giving Every Mother Her Due in Tamil Nadu

Sangeeta Carol Pinto's picture

As fate would have it, Sriviliputtur Government Hospital (in Tamil Nadu’s Ramnathapuram district) happened to be one of the first hospitals he reviewed on taking charge. An officer on Pankaj Kumar Bansal’s team drew his attention to a heavily pregnant lady, who was close to panic stricken tears on being referred out, yet again, to another government hospital for emergency obstetric care. That Sriviliputtur itself was a designated CEmONC center (Comprehensive Emergency Obstetric and Neonatal Care Center) mandated to provide every conceivable (except for the very super-specialized) care required for a pregnant mother and her neonate, and yet was incapable of handling the emergency, distressed him deeply.

This Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 15 Tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Bhutan, Bangladesh, India, Nepal, Pakistan, Sri Lanka. For regular #SouthAsiaDev updates, follow us on Facebook and Twitter

Time to Boost IBRD as well as IDA

Homi Kharas's picture

2013 World Bank / IMF Annual Meetings When the negotiations for IDA17 were wrapped up in December, there was great relief that IDA deputies were supportive of an IDA expansion despite their own significant budget difficulties. As part of that package, the World Bank Group itself pledged to give IDA $3 billion from profits.

This was a generous gesture by the World Bank (albeit a drop in the bucket of total aid), but how good was it for the global development effort? Consider the following—net disbursements of official grants and concessional loans (the category where IDA flows appear) have expanded from $39 billion per year in the 1980s (in constant 2005 dollars) to $85 billion in 2010 and 2011. In contrast, official non-concessional lending (the category where IBRD and IFC flows appear) has stayed steady. The latter was $15 billion in the 1980s and $22 billion in 2010/11. This picture is even more striking when considering the amounts in terms of recipient GDP. Grants and concessional flows to low income countries have gone from 3% of their GDP in the 1980s to 13% today, while non-concessional flows to lower middle-income countries (excluding India and China) have gone from 0.7% to 0.3% of their GDP. In fact, from 2000 to 2009, non-concessional flows to lower middle- income countries (and to developing countries as a whole) were negative, implying that developing countries repaid more to official development agencies than they received in gross disbursements.

Challenges for Rural Primary Education through Satellite Technology in India

Abhilaksh Likhi's picture

The Famous Brazilian educator Paulo Freire opined that education in developing countries is conceived and practiced as a form of ‘banking’. Herein, the teacher, as the communicator, makes deposits that the students patiently receive, memorize and repeat. The latter, he believed, serves to increase the recipients’ dependence on the educator. He, thus, advocated a more liberating approach in which engagement with education functioned as a dialogue. Herein, the educator participated and generated access for students to imbibe knowledge that was truly self- fulfilling.

Teaching in India’s government primary schools in rural areas has often been argued to be in the bind of such ‘banking education’. In addition, since the country’s independence in 1947, these schools have faced institutional constraints pertaining to infrastructure, maintenance, teacher recruitment, curriculum capacity and training. Educational expenditure as a percentage of GDP rose from 3% in 2004-05 to over 4% in 2011-12. In the 11th Five Year Plan period, 43% of the public expenditure was incurred for primary education (elementary stage from Grade I-V and upper primary from Grade VI-VIII).The modest gains of Operation Blackboard  and the National Education Policy , of the late 80’s, have been carried forward under the more ambitious flagship program Sarva Siksha Abhiyan (SSA). Besides, the Right to Education Act (RTE) has also been invoked. Against an estimated child population of 192 million in the 6-14 age group, 195 million children have been enrolled at the elementary stage in 2009-10. In addition to enhancing learning levels, SSA also intends to fill infrastructural gaps and bridge gender differences in rural schools.

Can International Remittances Be Unproductive in Recipient Countries? Not Really!

Zahid Hussain's picture

A recent Bangladesh Bank study reports that remittance sent by expatriates is mostly used for consumption and in the “non-productive” sectors in the country. The survey conducted in 2011 found 90% of remittances were used for meeting basic needs. Seventy-five percent of households receiving remittance spent those on food, 42% on loan repayment, 65% on education, 57% on treatment, 49% on marriage and 4% on running legal battles (multiple responses allowed).

The Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 25 Tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Afghanistan, Bhutan, Bangladesh, India, Maldives, Nepal, Pakistan, Sri Lanka. 

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