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World Development Report 2012

Arab World: A New Social Contract

Culture

Overcoming cultural barriers with sound economics

This post is the first in a series on "Gender and Conflict" which explores gender issues in the context of crisis and violence. Zainab Salbi, Founder and CEO of Women for Women International, discusses the cultural complexities involved in working to improve the lives of women in fragile and conflict-affected states.

   Photo © Women for Women International

Working to improve the lives of women in fragile and conflict-affected states raises complex cultural issues, but sound economic arguments paired with practical solutions can help overcome resistance. 
 
Culture and tradition are too often used to justify the stifling of debate about change, especially when it relates to women’s lives. As an Iraqi-American woman who grew up with Muslim traditions and ended up traveling the world through my work with Women for Women International, an organization that supports women in conflict-affected areas, I have had plenty of exposure to these attitudes.

The use of culture as a defensive weapon blights the lives of women from the Democratic Republic of Congo to Sudan and Afghanistan.  It is used as an excuse to silence opponents. Although the intention may be to respect cultural traditions, it often leads to policies that undermine the social and economic advance of women. 
 
A classic example of this occurred in the first year of the Iraq invasion, when the US governing authority switched food distribution from public stores to mosques. This policy was intended to respect Iraqi culture but, in fact the policy changed the role of the mosque from a private to a public role. For the mosque has played a public role associated with government actions in Iraq’s modern history.

India: Nothing Short of Incredible!

You’ve seen those tourism ads: Incredible India. Since I first arrived in this country a month back, it’s been nothing short of incredible. India can fascinate and overwhelm you at the same time. It is incredible in many ways: its size, its development challenges, its diversity, and its rich cultural heritage.

Luckily for me, I have had the good fortune to experience the latter. India’s cultural heritage dates back thousands of years. And India has managed to preserve it while many others have failed. You don’t need to go deep into the hinterland to experience it. A drive through Delhi alone will take you through several phases of its history. And a four-hour drive out of the capital to Agra will take you back 400 years to the Mughal Empire. Everything is well preserved. And everyone seems to be passionate about preserving this heritage, as evident in the JIYO Exhibition that I’ve just attended.

Incentives and Values in Conflict-Prone Countries

One of the most extraordinary examples of the use of economic principles comes from the beginning of the 19th century, when England used to send a huge number of prisoners to Australia. The government originally paid the ship captain a pre-determined amount for each prisoner that boarded the ship, but half of them would die during the journey. In 1862, Edwin Chadwik, knowing that people respond to incentives, told the U.K. government to pay captains according to the number of prisoners that actually disembarked in Australia. With this adjustment, the survival rate increased from 50% to 98.5%.

This example illustrates how incentives can do wonders in some circumstances. Yet, human actions are not always guided by the same calculations made by a profit maximizing ship captain. Behavioral economists have emphasized that we respond to a deep ingrained sense of fairness. Culture and values are crucial in understanding human behavior and promoting healthy and stable societies.

Business as Usual in Guatemala

Santa Catalina Arch, Antigua, Guatemala. Photo © Sanket Mohapatra/World Bank

I recently made a presentation on the impact of the financial crisis and our outlook for remittances in 2009-10 at a conference on improving central bank measurement and procedures on remittances organized by CEMLA and the Banco de Guatemala on September 8-10. My colleague Jacqueline Irving presented on a global survey of central banks.The sessions and interactions with the participants made me aware that central bankers are not just interested in measuring remittances accurately, but are thinking about a range of issues that affect both remittances and migration—ranging from how exchange rate movements can create incentives to send remittances for investment motives, to intra-regional and bilateral migration flows.