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economic growth

Pathways to Prosperity: An e-Symposium

Urmila Chatterjee's picture
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Blog #5: The low income, low growth trap

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments.

While India’s economy has grown more rapidly in recent decades, the gains have been unevenly spread, and some regions have fallen further behind the rest of the country. In particular, India’s seven ‘low-income’ states have struggled to shake off the legacy of high consumption poverty, low per capita incomes, poor human development outcomes and the persistence of poverty among tribal populations. The fact that these states are yet to catch-up with the rest of the country illustrates that ‘where you live’ largely determines ‘how well you live'. Addressing this geographic dimension of poverty and well-being will therefore hold the key to improving the lives of millions of Indians.

Pathways to Prosperity: An e-Symposium

Ambar Narayan's picture

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Blog #2: On poverty and prosperity, lot done, lot to do

 

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around 
#WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments.

The rapid decline in India’s poverty levels in the recent decade augurs well for the country’s efforts to eradicate poverty. Though the decline was faster and more broad-based than in the preceding decades, examples from across the developing world suggest it could have been more inclusive and responsive to economic growth.

Opportunity entrepreneurs are key to jobs and growth

Madhur Jha's picture
What makes some entrepreneurs grow their businesses and employ hundreds, or even thousands, of people? Knowing this is crucial for all governments keen to drive economic growth. For economic development, it is important to focus on opportunity entrepreneurs instead of subsistence entrepreneurs. They are likely to grow their business faster, employ more people, and introduce innovation that could help fill important gaps in the market, while boosting productivity in the economy.
 

Quote of the week: Mariana Mazzucato

Sina Odugbemi's picture

Mariana Mazzucato“If we actually look at the few countries that have achieved smart, innovation-led growth, you’ve had this massive government involvement. How can we square that with the whole austerity discourse?”

-Mariana Mazzucato, an economist and author of The Entrepreneurial State: debunking public vs. private sector myths, which was featured on the 2013 books of the year lists of the Financial Times and Forbes. She is also the RM Phillips Professor in the Economics of Innovation at the University of Sussex, SPRU. She has also blogged for the World Bank in the past. 

#6 from 2015: Five myths about governance and development

David Booth's picture

Our Top Ten blog posts by readership in 2015.  This post was originally posted on February 26, 2015. It was also the blog post of the month for March 2015.

In some areas of development policy, deep-rooted assumptions are extremely hard to dislodge. Like science-fiction androids or the many-headed Hydra, these are monsters that can sustain any number of mortal blows and still regenerate. Capable researchers armed with overwhelming evidence are no threat to them.
 
The importance of good governance for development is one such assumption. Take last month’s enquiry report on Parliamentary Strengthening by the International Development Committee of the UK parliament. It references the UN High Level Panel’s opinion that ‘good governance and effective institutions’ should be among the goals for ending global poverty by 2030. It would have done better to reference the evidence in 2012’s rigorously researched UN publication Is Good Governance Good for Development?
 
Here are five governance myths about which the strong scientific consensus might – eventually – slay some monsters.

Where has the global movement against inequality got to, and what happens next?

Duncan Green's picture

Katy Wright, Oxfam's head of Global External AffairsKaty Wright, Oxfam’s Head of Global External Affairs, stands back and assesses its campaign on inequality.

The most frequent of the Frequently Asked Questions I’ve heard in response to Even it Up, Oxfam’s inequality campaign is “how equal do you think we should be?”

It’s an interesting response to the news that just 80 people now own the same wealth as half the world’s population put together, and the best answer was that given by Joe Stiglitz to a group of UN ambassadors: “I think we have a way to go before we worry about that.”

The Inequality BusSo how far do we have to go, exactly? The good news is that inequality is no longer just the concern of a small number of economists, trades unions and social justice campaigners. It’s now on the agenda for the international elite.

That partly reflects a growing realisation that inequality may be a problem for us all, not just those at the bottom. The Spirit Level  raised questions about the impact of inequality on societies, and the rise of Occupy pointed to a growing political concern.

More recently, research papers from the IMF have demonstrated extreme inequality is at odds with stable economic growth, and that redistribution is not bad for growth. Significantly, this shift in focus from the IMF has been driven by Christine Lagarde. To the outside world, the IMF now officially cares about inequality, as do Andy Haldane at the Bank of England, Donald Kaberuka (outgoing head of the African Development Bank), and Alicia Barcena of the Economic Commission for Latin America and the Caribbean, to name a few.
 

Open Data for Business Tool: learning from initial pilots

Laura Manley's picture
Citizens in Nigeria participate in a
readiness assessment exercise to identify
high-priority datasets
Around the world, governments, entrepreneurs and established businesses are seeing the economic growth potential of using Open Data – data from government and other sources that can be downloaded, used and reused without charge.
 
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:

The yawning divide between big city and countryside Tanzania

Nadia Belhaj Hassine's picture

Achieving shared prosperity, one of the World Bank’s twin-goals, isn’t just a middle-income country’s preoccupation. It has a special resonance in Tanzania, a US$1,000 per capita economy in East Africa.

Tanzania has seen remarkable economic growth and strong resilience to external shocks over the last decade. GDP grew at an annualized rate of approximately 7 percent.  Yet, this achievement was overshadowed by the slow response of poverty to the growing economy. The poverty rate has remained stagnant at around 34 percent until 2007 and started a slow decline of  about one percentage point per year, attaining 28.2 percent in 2012. To date, around 12 million Tanzanians continue to live in poverty, unable to meet their basic consumption needs, and more than 70 percent of the population still lives on less than US$2 per day. Promoting the participation of the poor in the growth process and improving their living standards remains a daunting challenge.

​How effective is growth for poverty reduction? Do all countries benefit equally from growth?

Israel Osorio Rodarte's picture
Economic growth has been vital for reducing extreme poverty and improving the lives of many poor people around the world. This is an indisputable fact.
 
However, does economic growth affect poverty reduction equally in different countries? Contrary to conventional wisdom, we don’t think so. And here’s why.
 

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