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South Asia

Pulling out all stops: World Bank in Nepal

Faris Hadad-Zervos's picture

Nepal

Few countries in recent history have experienced change on a scale as sweeping as Nepal – that too, in the span of a single generation. The journey is ongoing as Nepalis continue to confront and challenge the conventional wisdom about Nepali statehood and chart a path towards a more inclusive, equitable and modern nation-state.

The new federal structure also redefines the World Bank Group (WBG)’s engagement with Nepal. This week, as the WBG’s Board of Executive Directors endorsed a new five-year Country Partnership Framework (CPF), Nepal’s Finance Minister Yuba Raj Khatiwada attended a series of Nepal Day events at the WBG headquarters in Washington DC. There, he unfurled the new government’s vision and development priorities and discussed approaches to address Nepal’s financing and knowledge needs in the WBG’s upcoming programme of assistance.

Finance Minister Yuba Raj Khatiwada's Vision for Nepal's Future


The CPF is designed to balance support to Nepal’s transition to federalism with its quest for higher growth, sustained poverty reduction and inclusive development. To that end, our strategy and approach seeks to support the authorities and engage with development partners in three transformative engagement areas: (i) public institutions for economic management, service delivery and public investment; (ii) private sector-led jobs and growth; and (iii) inclusion for the poor, vulnerable, and marginalised groups, with greater resilience against climate change, natural disasters, and other exogenous shocks. These focus areas were informed by extensive consultations and surveys across the country’s seven states with over 200,000 citizens, government, civil society organisations, the private sector, media and development partners.

In many respects, Nepal is starting from a clean state. While Nepal did practise a limited version of decentralisation in the early 2000s, the scope of devolution proposed by the 2015 Constitution is unprecedented.  Meanwhile, reforms promise to rid the country of a legacy of exclusion based on geography, ethnicity and gender.

Over the last decade, Nepal experienced frequent government turnover and political fragmentation with a considerable toll on development.  The 2017 elections mark a significant turning point, in that they offer higher hopes for political stability and policy predictability that remained elusive during most of Nepal’s recent past. This is a considerable achievement.

Interview with World Bank Country Director for Nepal, Qimiao Fan


Nepal has achieved a remarkable reduction in poverty in the last three decades, but the agenda remains unfinished. While the national poverty estimates await updating starting next year, at last count, poverty fell from 46 per cent in 1996 to 15 per cent in 2011 as measured by the international extreme poverty line. However, most of the poverty reduction resulted from the massive outmigration of labour, and a record increase in private remittances. Moreover, a significant disparity remains in poverty incidence across the country.

Compared to the average 4.5 per cent of GDP growth over the last decade, Nepal needs to achieve faster growth to meet its coveted goal of attaining middle-income status by 2030. Nepal needs to grow in the order of at least 7 to 8 per cent and shift from remittance-led consumption to productive investment. The economy also remains exposed to exogenous shocks like earthquakes, floods and trade disruptions. These long-standing economic vulnerabilities will require far-reaching but carefully-calibrated reforms.

Nepal now faces the daunting task of adapting to a three-tier structure in the face of nascent and often-nonexistent institutions at the sub-national levels. Immediate challenges include the need to clarify the functions and accountabilities of the federal, state and local governments; deliver basic services and maintain infrastructure development; enable the private sector; and ensure strong and transparent governance during the early years of federalism. Meanwhile, if left unmet or unmanaged, heightened public expectations of federalism could rapidly degenerate from anticipation to disillusionment.
 
Short Take: Nepal Country Partnership Framework (FY2019-23)

South Asia’s transport corridors can lead to prosperity

Martin Melecky's picture
 World Bank
Transport corridors offer enormous potential to boost South Asia’s economies, reduce poverty, and spur more and better jobs for local people, provided the new trade routes generate growth for all and limit their environmental impact. Credit: World Bank

This blog is based on the report The Web of Transport Corridors in South Asia -- jointly produced with the Asian Development Bank, the United Kingdom’s Department for International Development, and the Japan International Cooperation Agency

No doubt, South Asia’s prosperity was built along its trade routes.

One of the oldest, the Grand Trunk Road from the Mughal era still connects East and West and in the 17th century made Delhi, Kabul and Lahore wealthy cities with impressive civic buildings, monuments, and gardens.

Fast forward a few centuries and today, South Asia abounds with new proposals to build a vast network of transport corridors.
 
In India alone—and likely bolstered by the successful completion of the Golden Quadrilateral (GQ) highway system—several transport proposals extending beyond India’s borders are now under consideration. 
 
They include the International North-South Transport Corridor (INSTC), linking India, Iran and Russia, the Asia-Africa Growth Corridor, and the Bangladesh, China, India, and Myanmar (BCIM) economic corridor.
 
The hope is that these transport corridors will turn into growth engines and create large economic surpluses that can spread throughout the economy and society.

Arguably, the transport corridor with the greatest economic potential is the surface link between Shanghai and Mumbai.
 
These two cities are the economic hubs of China and India respectively, two emerging global powers.
 
The distance between them, about 5,000 kilometers, is not much greater than the distance between New York and Los Angeles.
 
But instead of crossing a relatively empty continent, a corridor from Shanghai to Mumbai—via Kunming, Mandalay, Dhaka, and Kolkata—would go through some of the most densely populated and most dynamic areas in the world, stoking hopes of large economic spillovers along its alignment.
 
“Build and they will come” seems to be the logic underlying many massive transport investments around the world.
 
However, the reality is that not all these investments will generate the expected returns.
 
Worse, they can become wasteful white elephants—that is, transport infrastructure without much traffic—that would cost trillions of dollars at taxpayers’ expense.
 
So, how can South Asia develop transport corridors that have a positive impact on their economies and benefit all people along the corridor alignments and beyond?  
 
First, countries need to change the mindset that transport corridors are mere engineering feats designed to move along vehicles and commodities.
 
Second, sound economic analysis of how corridors can help spur urbanization and create local jobs while minimizing the disruptions to the natural environment, is key to developing successful investment programs.
 
Specifically, it is vital to ensure that local populations whose lives are disrupted by new infrastructure can reap equally the benefits from better transport connectivity.
 
The hard truth is that the development of corridor initiatives may involve difficult tradeoffs.
 
For instance, more educated and skilled people can migrate to obtain better jobs in growing urban areas that are benefiting from corridor connectivity, while unskilled workers may be left behind in depopulated rural areas with few economic prospects.
 
But while corridors can create both winners and losers, well-designed investment programs can alleviate potential adverse impacts and help local people share the benefits more widely.
 
In that vein, India’s Golden Quadrilateral, or GQ highway system, is a cautionary tale. 
 
No doubt, this corridor had a positive impact. 
 
Economic activity along the corridor increased and people, especially women, found better job opportunities beyond traditional farming.
 
But this success came at a cost as air pollution increased in the districts near the highway.
 
This is a major tradeoff and one that was documented before in Japan when levels of air pollution spiked during the development of its Pacific Ocean Belt several decades ago.
 
Another downside is that the economic benefits generated by the GQ highway were distributed unequally in neighboring communities.  

Identification as a centerpiece for development: What can other countries learn from Peru?

Samia Melhem's picture
© World Bank
Juan and his sisters proudly show their identification. © Daniel Silva Yoshisato/World Bank

Peru has placed so much emphasis on the importance of identification that it has created a museum dedicated to it. The "Museum of Identification" in Lima demonstrates to visitors the significance of identity in the country’s narrative. In fact, the Incas, centuries before the Europeans arrived, kept track of the population by using “quipus”, an accounting tool based on strings, with each node denoting a village or community.
 
Peru has continued to prioritize identification, and the uniqueness of each person—long before the Sustainable Development Goals made “legal identity for all and free birth registrations” a global priority (SDG 16.9).
 

How can Bangladesh increase its resilience to disasters through data sharing?

Debashish Paul Shuvra's picture
 
How can Bangladesh increase its resilience to disasters?

Schools across Bangladesh are highly vulnerable to floods, cyclones, and earthquakes. How can the country mitigate and respond to the risks of these natural hazards?

By using the GeoDASH platform - a geospatial data sharing platform - the Directorate of Primary Education of Bangladesh has assessed 35,000 schools with respect to the type of infrastructure, water and sanitation facilities, access to roads, and overall capacity during natural disasters.

The GeoDASH platform is a reliable and extensive geographic and information (geospatial) data network.

These data are Geographic Information System (GIS) and other geolocation services-based information to represent objects or locations on a globally referenceable platform to enable mapping.

For example, locations of road network data can be merged with the flood risk map to get a single map for identifying vulnerable road communication in flood-prone areas.

This type of data will allow the Government of Bangladesh, communities, and the private sector to create, share and use disaster risk and climate change information to inform risk-sensitive decision making.

Better data sharing to improve the lives of Afghan refugees

Shubham Chaudhuri's picture
A bus with returnees from Pakistan at the IOM Screening center on Turkham border in Nangarhar province
A bus with returnees from Pakistan at the IOM Screening center on Turkham border in Nangarhar province. Photo Credit: IOM Afghanistan / E. Schwoerer

Four decades of conflict, violence and uncertainty has made Afghans the world’s largest protracted refugee population and among the largest group of returnees in the past few decades. Each year as many as 100,000s Afghans are on the move.

Since 2002, some 5.8 million Afghan refugees and several million more undocumented Afghans have returned to Afghanistan. More than two million of these refugees and undocumented returnees have returned since 2015. Recent surges in returns such as the 2016 spike of over 600,000 returnees from Pakistan were recorded in just six months.
 
Most returnees relocate to urban and peri-urban areas where they find limited job opportunities and inadequate access to essential services, thus jeopardizing their reintegration prospects and fueling secondary displacement. Therefore, it is imperative that joint initiatives between international organizations and Afghan government ministries help support both returnees and the host communities in which they relocate.
 
To that end, the World Bank and the International Organization for Migration (IOM) today signed a data sharing agreement (DSA), which formalizes an existing partnership between the two organizations in Afghanistan.

5 inspirational youth you should follow this #YouthDay 

Bassam Sebti's picture
Refugees take wood working courses at the Kalobeyei Youth Training Center in Kalobeyei, Kenya.
© Dominic Chavez/International Finance Corporation

Youth are the engine of change. Empowering them and providing them with the right opportunities can create an endless array of possibilities. But what happens when young people under 25—who make up 42% of the world’s population – lack safe spaces in which they can thrive?
 
According to the United Nations, one in 10 children in the world live in conflict zones and 24 million of them are out of school. Political instability, labor market challenges, and limited space for political and civic participation have led to increasing isolation of youth. 
 
That's why the United Nations theme for International Youth Day this year focuses on “Safe Spaces for Youth.” These are spaces where young people can safely engage in governance issues, participate in sports and other leisure activities, interact virtually with anyone in the world, and find a haven, especially for the most vulnerable.

How Technology Centers can help clients meet the challenges of Industry 4.0

Justin Hill's picture

The Picard leather goods factory in Dhaka, Bangladesh produces bags, purses and wallets that are sold in upmarket stores throughout the developed world under various well-known brand names, and in their own chain of stores in Germany.  The factory is clean, efficient and goods are produced under all the relevant international standards.  

Picard leather factory
But Picard are a rarity, and most Bangladeshi manufacturing looks just like it did 50 years ago.  They produce cheap goods for the local market, but are a huge distance from producing at global standards.  Unfortunately, this is also the case with most manufacturers in emerging economies. And all manufacturing is being changed by a range of new technologies known as Industry 4.0, with manufacturing becoming more global, more automated, more highly skilled, more infused with technology and more integrated with services. Whole manufacturing sectors, but in particular Small and Medium Enterprises (SMEs) face real challenges if they are to adapt rather than be left behind. 

When elephants fight, it is the grass that suffers

Mark Moseley's picture


Photo: shplendid | Flickr Creative Commons

Talk of trade tariffs and heightened geopolitical tensions are dominating news headlines recently. As developed economies consider escalating protectionist policies, it’s easy to forget about the situation many emerging markets face.

As outlined in the World Bank’s Global Economic Prospects report released in June this year, protectionist policies would affect emerging market and developing economies (EMDEs) more severely than advanced economies. And this is at a time where increased investment and spending in EMDEs, including in infrastructure, is sorely needed.

Toward Great Dhaka: Seize the golden opportunity

Qimiao Fan's picture
Toward Great Dhaka
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Originally Appeared on the Daily Star

Had you looked across Shanghai's Huangpu River from west to east in the 1980s, you would mostly have seen farmland dotted with a few scattered buildings. At the time, it was unimaginable that East Shanghai, or Pudong, would one day become a global financial centre; that its futuristic skyline, sleek expressways, and rapid trains would one day be showcased in blockbusters like James Bond and Mission Impossible movies! It was also unimaginable that the Shanghainese would consider living in Pudong.

How wrong that would have been! Pudong is now hosting some of the world's most productive companies, and boosting some of the city's most desirable neighbourhoods. And Shanghai has become China's most important global city, lifting the entire hinterland with it.

The same potential for urban transformation exists in Bangladesh, across the Pragati Sarani Airport Road that divides Dhaka into its west and east. West Dhaka is urban, hosting vibrant centres. East Dhaka remains largely rural, with a vast expanse of farmland. This sharp contrast presents a golden urban development opportunity for Dhaka, one that is not available to other major Asian cities.

Realizing the Promise of a Great Dhaka


Dhaka's population has grown from three million in 1980 to 18 million today and it continues to increase rapidly, which is a clear sign of success. However, Dhaka's development has been mostly spontaneous, with its urban infrastructure not keeping pace with its population growth.

Bangladesh Collaborates with China in Strengthening the Skills of its Youth

Mokhlesur Rahman's picture
Agreement Signing
The sigining of an agreement for educational exchange between the Ministries of Education of Bangladesh and China's Yunnan Province. 

With its youthful workforce and the aspiration to be a developed country by 2041, Bangladesh emphasizes skills development to provide its people the ability to transform the country into a high productivity economy. To accelerate progress in this area, the government has been actively tapping into greater South-South cooperation, especially with other Asian countries.

Bangladesh and the China’s Yunnan Province’s partnership on the Skills and Training Enhancement Project (STEP) is one example. Following the International Skills Conference held in Dhaka held in March 2018, a  Bangladesh delegation, led by Mr. Md. Alamgir, Secretary of the Technical and Madrasah Education Division of the Ministry of Education, visited technical education institutions in Yunnan that are expected to receive students from Bangladesh.

Expert trainers in China will help their Bangladesh counterparts improve in the areas of student exchange, teachers’ professional development, and knowledge sharing among others. The agreement will mean that that the first cohort of 85 Bangladeshi students will be enrolled in the partnered Yunnan institutions with scholarships by September 2018.


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