The idea that economic growth needs good governance and good governance needs economic growth takes us to a perennial chicken-and-egg debate: Which comes first in development—good governance OR economic growth? For decades, positions have been sharply divided between those who advocate “fix governance first” and others who say “stimulate growth first.”
Not a likely headline in today’s world, and yet this is among the most important news in recent history. Since Homo sapiens appeared on the planet, societies have experienced steady progress on all issues related to their wellbeing: access to food, sanitation, life expectancy, poverty, violence, the environment, literacy, freedom and equality. More importantly, progress in the last two centuries has accelerated to the point that the great majority of humans today live longer, better, healthier and richer lives than did their parents and grandparents.
“Progress” is indeed the title of the recently published book by Swedish author Johan Norberg. In it, and after building and analyzing a robust set of metadata compiled from the OECD, the World Bank, UN agencies and other reliable sources, he concludes categorically that “by almost any index, things are markedly better now that they have ever been for almost everyone alive.”
Some examples. Norberg points out that harvests failed frequently in Sweden in the 17th century, and a single famine between 1696 and 1697 killed one in 15 people. There were even some accounts of cannibalism. As economies in Europe grew, per capita consumption of calories increased from around 1,800 in the mid-18th century to 2,700 in 1850. Famines disappeared, and Sweden was declared free from hunger in the early 1900s. But progress is not circumscribed to Europe. Globally, undernourishment fell from 50 percent of the world’s population in 1945 to about 10 percent today. Similarly, access to water and sanitation has increased steadily in its coverage, going from 50 percent to 92 percent in terms of access to clean water, and from 25 percent to 68 percent in terms of sanitation in the last 50 years. The consequence is the removal of one of the main sources of death and disease.
We are all aware of the statistics: and they are growing so fast that 66 out of 100 people on earth will be urban dwellers by 2050. This, of course, will have major implications for people and poverty, climate change, and service delivery.
Since the early 2000s, three-quarters of the world’s 750 largest cities have grown faster than their national economies. One of the key reasons for those cities’ success is higher productivity—as a result of their ability to attract skilled workers—as well as a high concentration of productive entrepreneurs and firms.
For decades, national and city leaders have also taken actions to build competitive cities, increasingly facilitating firms and industries to create jobs, raise productivity, and increase incomes over time—especially for the urban poor. They see this as the pathway to eliminate extreme poverty and to promote shared prosperity. This is particularly important in Sub-Saharan Africa and South Asia, where most of the world’s extreme poor live.
Fear of openly confronting politics can come in the way of achieving economic development goals. To help address this problem, the Development Research Group of the World Bank prepared a report synthesizing the vanguard of economics research on the functioning of political markets to understand the implications. It yields insights for strengthening existing transparency and citizen engagement policies with potentially powerful consequences for economic development everywhere, in poor and rich countries alike.
When I was teaching at the University of Indonesia, my country was the poster child for economic development. Indonesia was growing robustly – as high as 9% in the 1990s. Poverty was falling. But Indonesia was rife with corruption, cronyism, nepotism and fear under President Suharto’s authoritarian rule. Parliament had no checks and balances. There was no accountability or transparency. A few powerful families controlled the economy. The financial crisis in 1998 triggered the nationwide student protests — known as the "reformasi" movement. I joined the students demanding change. We protested until Suharto resigned.
As a public resource, Open Data can help launch new private-sector ventures and help existing businesses create new products and services and optimize their operations. Government data – a leading source of Open Data – can help support companies in healthcare, agriculture, energy, education, and many other industries.
In addition, government agencies can be most helpful to the private sector if they understand the unique needs of the businesses that currently or could potentially use their data.
The World Bank has used the Open Data Readiness Assessment (ODRA) in more than 20 countries to provide an overall evaluation of a country’s Open Data ecosystem. With that information and insight, government agencies can identify strengths and opportunities for making their Open Data more useful and effective. The ODRA covers essential components of any national Open Data program, including:
- Kyrgyz Republic
- Europe and Central Asia
- South Asia
- Private Sector Development
- Public Sector and Governance
- Information and Communication Technologies
- Open Data initiative
- Open Data Government Toolkit
- Open Data Ecosystem
- open data portal
- open data
- Open Data for Development
- Open Data for Business
- information and communication for development (ICT4D)
- economic growth
- economic development
- New Delhi
When I was a teenager, I went hiking in the French Alps. When I arrived at the top, the view was magnificent. It was like a picture postcard with the sun glimmering off the snow under a clear, blue sky.
Vietnam’s economic emergence is perhaps best experienced along its rural roads: more than 175,000 kilometers of pavement, rubble and dirt track extend to two-thirds of the country’s population, including nearly all of the poorest people, who live among its productive farms, lush forests and meandering river valleys.
In recent years, road investments in Vietnam’s rural areas have improved socioeconomic development and promoted gender equity, social participation, improved school attendance, and more inclusive health services to impoverished regions. However, all but a few hundred communes remain off-grid, and infrastructural roadblocks and bureaucratic potholes have delayed the goal of a fully integrated road system.
The World Bank’s Third Rural Transport Project (RTP3) supported a win-win solution: employing ethnic minority women to sustainably manage road maintenance through an innovative participatory approach to local development. This blog entry describes the experience of improving the roads — and women’s lives — in rural Vietnam. Here are some of the lessons we’ve learned along the way:
Lesson 1: Solutions can come from unexpected sources.
The RTP3 task team’s investigation showed that up to a third of the population in Vietnam’s Northern Uplands provinces would be expected to contribute up to 10 percent of their total annual household expenditure to ensure safe passage along local roads — too much for most to afford. Furthermore, even when adequate resources are made available for maintenance, contractors have sometimes been unwilling to work in inaccessible regions for fear of mudslides during the rainy season.
For the most part, protected areas in Brazil are managed by the public sector. As a result, like other countries, these areas face conservation difficulties, including a lack of resources for maintenance and other initiatives.
Because of this lack of public-sector financial and human resources, the private sector has provided a significant portion of funding for managing protected areas. One of these cases is in Brazil’s Minas Gerais State. The Secretary of State for Environment and Sustainable Development (SEMAD), Forest State Institute (IEF) and Public-Private Partnership Central Unit collaborated to develop a PPP model focused on management, conservation and operation of three protected areas, located in the State’s Karst region: PPP Peter Lund Cave Route.
The PPP Peter Lund Cave Route aims to structure a single, singular national and international tourist track, aligning the unique natural and cultural elements of the karst region. This new management model is demonstrating results for conservation and sustainable development, including the mobilization of public policies that value one of Brazil’s greatest characteristics: biodiversity.
The emergence of local capacity in the construction sector has long been regarded as critical for economic development. Indeed, since the early 1970s, the World Bank has provided a “civil works preference” for low income countries in Bank-financed projects in order to foster the expansion of domestic construction industries. In most regions of the world, the emergence of domestic capacity in civil works goes hand-in-hand with regional development trajectories. Large construction companies bid for, and win, contracts in their own and neighboring countries.