As the world urbanizes rapidly, – it is estimated that only 1.5% of the world’s land is home to about half of global production.
Such economic concentration is a built-in feature of human settlement development and a key driver of growth. However, while some countries have succeeded in spreading economic benefits to most of their citizens, many other countries have not.
Especially outside the economic centers that concentrate production, there are “lagging areas” with persistent disparities in living standards and a lack of access to basic services and economic opportunities.
Over one billion people live in underserved slums with many disparities from the rest of the city in terms of access to infrastructure and services, tenure security, and vulnerability to disaster risk. A further one billion people live in underdeveloped areas with few job opportunities and public services.
How can countries address the division between the leading and lagging regions?
As discussed at the Ninth Session of the World Urban Forum (WUF9) in Kuala Lumpur, Malaysia,
At the Spring Meetings of the World Bank and IMF Board of Governors, civil society get to engage directly with the World Bank’s Executive Directors (EDs). This year, I was honored to co-chair the CSO-ED Roundtable with Mr. Herve de Villeroche, Co-Dean of the World Bank Board and Executive Director for France.
I came to the Spring Meetings in my role as Chief Government Officer for Teach For All, a global network of 48 independent civil society organizations developing collective leadership to ensure all children can fulfill their potential. As moderator, I represented my CSO peers and noted during my opening remarks the “crucial partnership and dialogue needed between CSOs and the communities they represent at the highest level of leadership in our shared ecosystem.”
Ghana was the first country in Sub-Saharan Africa to meet the Millennium Development Goal (MDG1) target of halving extreme poverty by 2015. A share of the population living in poverty decreased from 52% in 1991 to 24% in 2012. Ghana is eager to lead the way in Africa again, but this time to graduate extreme poor households, out of poverty. The current policy debates are around graduating in about three to four years some 8.4 % of households living in extreme poverty. But to what occupations?
- maximizing finance for development
- Human Capital Project
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While some studies predict automation to eliminate jobs at a dizzying rate, disruptive technologies can also create new lines of work. Our working draft of the forthcoming 2019 World Development Report, The Changing Nature of Work, notes that in the past century robots have created more jobs than they have displaced. The capacity of technology to exponentially change how we live, work, and organize leaves us at the World Bank Group constantly asking: How can we adapt the skills and knowledge of today to match the jobs of tomorrow?
One answer is to harness the data revolution to support new pathways to development. Some 2.5 quintillion bytes of data are generated every day from cell phones, sensors, online platforms, and other sources. When data is used to help individuals adapt to the technology-led economy, it can make a huge contribution toward ending extreme poverty and inequality. Technology companies, however well intended, cannot do this alone.
As we mark International Women’s Day 2018, there has never been a more critical time to invest in people, especially in women and girls.
Skills, knowledge, and know-how – collectively called human capital – have become an enormous share of global wealth, bigger than produced capital such as factories or industry, or natural resources.
But human capital wealth is not evenly distributed around the world, and it’s a larger slice of wealth as countries develop. How, then, can developing countries build their human capital and prepare for a more technologically demanding future?
The answer is they must invest much more in the building blocks of human capital – in nutrition, health, education, social protection, and jobs. And the biggest returns will come from educating and nurturing girls, empowering women, and ensuring that social safety nets increase their resilience.
According to UNESCO estimates, 130 million girls between the age of 6 and 17 are out of school, and 15 million girls of primary-school age – half of them in sub-Saharan Africa – will never enter a classroom. Women’s participation in the global labor market is nearly 27 percentage points lower than for men, and women’s labor force participation fell from 52 percent in 1990 to 49 percent in 2016.
What if we could fix this?
Is the era of industrialization and manufacturing exports growth miracles – a period of rapid economic growth exceeding expectations, last seen in East Asian countries, most notably in China – over? If you listen to Harvard’s Dani Rodrik, the answer seems to be: pretty much! Does that mean, Africa, the only continent which hasn’t seen rapid export-led manufacturing growth, would not have many growth miracle stories?
For three days this month, the West African nation of Senegal was in the spotlight of global efforts to combat climate change and improve education in a rapidly changing world.
French President Emmanuel Macron and Senegal’s President Macky Sall co-hosted a conference in Dakar to replenish the Global Partnership for Education (GPE) – a funding platform to help low-income countries increase the number of children who are both in school and learning.
African leaders and partners stepped up to announce their commitment to provide an education that prepares children to compete in the economy of the future and advances socio-economic progress.
Heads of state from across the continent described their challenges—including terrorism, insecurity, the influx of refugee children who need an education, the strain on national budgets, and the cultural bias against educating girls.
Crisis is becoming a new normal in the world today. In 2017 alone, adverse natural events resulted in global losses of about $330 billion, making last year the costliest ever in terms of global weather-related disasters. Climate change, demographic shifts, and other global trends may also create fragility risks.
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The composition of wealth fundamentally changes with economic development. Natural capital—energy, minerals, land and forests—is the largest component of wealth in low-income countries. Its value goes up, but its share of total wealth decreases as economies develop. By contrast, the share of human capital, estimated as the present value of future incomes for the labor force, increases as economies develop. Overall, human capital accounts for two-thirds of the wealth of nations. Read more in The Changing Wealth of Nations