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Measuring What Matters: Acknowledging Nature’s Role in the Global Economy

Russ Mittermeier's picture
Countries Go Beyond GDP to Make Natural Capital Count for Development

“Accounting” may not be a word that gets many pulses racing. But what if I told you that a new kind of accounting — called natural capital accounting — could revolutionize the way the world’s nations assess and value their economies?
 
Currently, gross domestic product (GDP) is the most widely used indicator of a country’s economic status. But while this number places a value on all the goods and services produced by that economy, it doesn’t account for its “natural capital” — the ecosystems and the services they provide, from carbon sequestration to freshwater regulation to pollination.

Growth Centred Approach Under PURA: The Way Forward for the World Bank India Country Partnership Strategy 2013-2017

Abhilaksh Likhi's picture

The broad objective of the World Bank’s India Country Partnership Strategy Report (CPS) for the period 2013-2017 is to support poverty reduction and shared prosperity in India. The Report states that between 2005 and 2010, India’s share of global GDP increased from 1.8 to 2.7% and 53 million people were lifted out of poverty. But it also states that with population growth, it has proved difficult to reduce the absolute number of poor at a rapid pace and 400 million Indians still live in poverty. Each of the seven low income states (Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan; Uttar Pradesh)  and seven special category states (Assam, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Uttrakhand) have poverty rates that are higher than that of the more advanced states. The low income states, where a large majority of the poorest 200 million Indians reside, are a priority for the World Bank Country Strategy funding during 2013-2017 (estimated to be $ 5 billion annually with 60 percent lending through direct financing of state projects of which half will go to low income and special category states).

India, both in the above mentioned and its advanced states (e.g. Punjab, Haryana, Kerala) is undergoing a massive rural- urban transformation- one of the largest in the 21st century. For the first time since independence, India has seen a greater absolute growth in urban population. The number of towns has increased from about 5000 in 2001 to 8,000 in 2011 and some 53 cities have a population exceeding one million. Today 30.1 percent of the population lives in urban areas and the share is expected to rise to 50% in the next 20 years (with urban India expected to generate 70% of its GDP by 2030). Though villages vastly outnumber towns in India (660,000 villages as per Census 2011), the construct of these villages is changing as the economy grows.

When Breathing Kills

Sameer Akbar's picture

 Curt Carnemark/World Bank

A good friend of mine recently returned from her mother’s funeral in Germany. She had died of lung cancer after spending the last eight years of her life in a slum in New Delhi where she taught orphaned children.

I can’t help but wonder if breathing the dirty indoor and outdoor pollution in New Delhi contributed to her cancer. My friend has the same question.

In new estimates released March 25, the World Health Organization (WHO) reports that in 2012, about 7 million people died - one in eight of total global deaths – as a result of air pollution. Indoor air pollution was linked to 4.3 million deaths in households that cook over coal, wood and biomass stoves. Outdoor air pollution was linked to 3.7 million deaths from urban and rural sources worldwide. (As many people are exposed to both indoor and outdoor air pollution, mortality attributed to the two sources cannot simply be added together.)

South and East Asia had the largest number of deaths linked to indoor air pollution.

The WHO finding more than doubles previous estimates and confirms that air pollution is now the world’s single largest environmental health risk. In particular, the new data reveal a stronger link between both indoor and outdoor air pollution exposure and cardiovascular diseases, such as strokes and ischemic heart disease, as well as between air pollution and cancer. In the case of both indoor and outdoor air pollution related deaths, 6 percent were attributed to cancer.

Thinking that my friend’s mother perished as result of pollution may not be so far-fetched.

Relaunching Africa Can and Sharing Africa’s Growth

Francisco Ferreira's picture

Dear Africa Can readers, we’ve heard from many of you since our former Africa Chief Economist Shanta Devarajan left the region for a new Bank position that you want Africa Can to continue highlighting the economic challenges and amazing successes that face the continent. We agree.

Today, we are re-launching Africa Can as a forum for discussing ideas about economic policy reform in Africa as a useful, if not essential, tool in the quest to end poverty in the region.

You’ll continue to hear from many of the same bloggers who you’ve followed over the past five years, and you’ll hear from many new voices – economists working in African countries and abroad engaging in the evidence-based debate that will help shape reform. On occasion, you’ll hear from me, the new Deputy Chief Economist for the World Bank in Africa.

We invite you to continue to share your ideas and challenge ours in pursuit of development that really works to improve the lives of all people throughout Africa.

Here is my first post. I look forward to your comments.

In 1990, poverty incidence (with respect to a poverty line of $1.25) was almost exactly the same in sub-Saharan Africa and in East Asia: about 57%. Twenty years on, East Asia has shed 44 percentage points (to 13%) whereas Africa has only lost 8 points (to 49%). And this is not only about China: poverty has also fallen much faster in South Asia than in Africa.

These differences in performance are partly explained by differences in growth rates during the 1990s, when emerging Asia was already on the move, and Africa was still in the doldrums. But even in the 2000s, when Africa’s GDP growth picked up to 4.6% or thereabouts, and a number of countries in the region were amongst the fastest-growing nations in the world, still poverty fell more slowly in Africa than in other regions. Why is that?

Poverty in Nigeria: Some New Facts

Mark Roland Thomas's picture
The World Bank and the Nigerian Bureau of Statistics (NBS) have recently completed an in-depth analysis of Nigeria’s last set of household survey statistics, which were compiled in 2010 but until recently not fully understood.

The results suggest strangely mixed conclusions. In certain ways, poverty trends in Nigeria over the past decade were better than has been widely reported, where a story of increasing poverty has been the consensus. And yet poverty is stubbornly high, disappointingly so given growth rates.

Three facts stand out.

What It Takes for Trade to Reduce Poverty in Africa

Otaviano Canuto's picture

Despite tremendous progress in poverty reduction over the last two decades, poverty still persists. Along with South Asia,  Africa is a region where large numbers of people continue to live in extreme poverty. It is also a region where there is clearly room for higher foreign trade levels (see Chart). Given that trade can generate growth – and thus poverty reduction – focus on trade-related reforms (e.g. lower tariffs, better logistics, and trade facilitation)  deserves to be a high priority of the region.

Mongolia needs better roads, schools and hospitals: so why all this talk about saving for the future?

Gregory Smith's picture

Mongolia’s mining revenues are set to soar in the coming years, but here people talk about the need to save for the future.

Surely building infrastructure, educating young Mongolians, improving healthcare and creating jobs is important? Surely by achieving these development goals Mongolia is providing for the next generation? These are great questions. Mongolia must do these things. But they in turn depend on efforts to prevent boom and bust and provide financial assets for future generations. Saving some of the revenues in good times is part of effective natural resource management.

Russia: a Study in Numbers

Kaspar Richter's picture

Is Russia’s economy just about to shift a gear downwards?

In the decade before the global financial crisis, Russia’s growth averaged 7 percent, thanks to rising oil prices, rapid credit expansion and policy reform. Then, after the economy took a nosedive in 2009, Russia rebounded to growth above 4 percent even though the global economy was sluggish and the euro area soon went back into a recession.

But now, as we begin the final three months of 2012, Russia’s economy is settling onto a lower growth trajectory. In our new Russian Economic Report, we project that Russia will grow only 3.5 percent this year. Excluding the crisis years of 1998 and 2009, this would be the lowest rate in a decade and a half.

Not All That Glitters Is Gold

Otaviano Canuto's picture

imageGross Domestic Product, better known as GDP, is the market value of all final goods and services produced within a country in a given period. That's why GDP per capita is widely used as a summary indicator of living standards in a country. No wonder we keep our eyes closely on its evolution and compare its levels among countries.
 


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