Did you know that the depth of poverty is much worse for rural dwellers? In fact, 75% of poor people live in rural areas, and extreme poverty is more than twice as high in rural areas compared to urban areas in developing countries. The rural-urban income divide is not only large but increasing in most transforming economies.
Outside China, about 80% of the reduction in national poverty rates in the developing world has been due to reducing rural poverty. (With China, the figure is 56%.) The conclusion is pretty obvious: rural development is critical to achieving a world without poverty.
There is a question we often get asked when presenting our new book, Living through Crises. The question is about how the coping behavior described in the book differs from what poor people do to deal with the day-to-day shocks of living in chronic poverty. Based on qualitative, bottom-up research in 17 developing and transition countries, the book describes impacts of the food, fuel and financial crises on the lives of ordinary people and what people do to cope. It talks about the hardships and stresses from living through a period of deep crises; meals that gradually become fewer and less nutritious; people seeking more jobs and working longer hours to make ends meet; how the burden of coping often looks different for women, men, and youth; erratic school attendance and lower quality of care, nutrition and education for infants and children; and the stresses and tensions in family and community life wrought by economic hardships. The book also chronicles the sources of support people could rely upon, often family, friends and informal community groups with the state, NGOs and financial institutions playing small roles at best and being directly unhelpful at worst. The work described in the book helped inform the Global Monitoring Report 2012 and other Bank products.
In the many slums I have visited in Latin America, Asia and Africa, I am always struck by the resourcefulness and resilience of residents. Slum dwellers face many hardships in their daily life – low incomes, overcrowded living conditions in high risk areas such as flood zones or steep hillsides, and limited access to clean water, sanitation, transport or solid waste services.
These challenges are only made worse by the impacts of climate change and natural hazards. Heavy rains can quickly turn into a disastrous flood as a result of insufficient or ineffective drainage. Such flooding can destroy the limited assets of poor households, halt economic activity, contaminate water supply, lead to disease and displace residents. With the increase in weather extremes, it is anticipated that such events will happen with recurring frequency.
I'll be hosting a one-hour live Question & Answer discussion on a new report I co-wrote with Asli Demirguc-Kunt titled "Measuring Financial Inclusion: The Global Findex Database," and will discuss its data methodology and main messages.
The leasing or purchase of agricultural land in the developing world has become a hot button issue as the planet has grown more crowded and the pressure to stake out more arable land – whether for food or biofuels – grows. At the same time, agricultural productivity in many of the poorest communities around the globe has stagnated and, unless higher crop yields can be attained, far too many people will remain trapped in poverty. Helping such smallholders catch the wave of rising interest in farmland is a key aim of the Annual World Bank Conference on Land and Poverty, which began Monday. Our theme this year is ‘Land Governance in a Rapidly Changing Environment.”
It’s clear that this year, many stakeholders who are either taking part in the conference or criticizing the event from outside think that global interest in farmland in the developing world is at a tipping point.
It is no secret Brazil is undergoing a “renaissance” of sorts. After decades of rough economic times marred by the stigma of deep inequity and social exclusion, Brazil has emerged as an economic powerhouse in the region and globally.
Sustaining such momentum, however, demands and will continue to demand substantial investments in infrastructure. This is particularly true in Brazil’s urban spaces –especially the megacities and a growing number of smaller but important cities and towns-- where more than 80 percent of the country’s population lives.
Within the Living Standards Measurement Study (LSMS) team, the anecdote goes that in the late 1970s World Bank President Robert McNamara, while reading through the first World Development Report, was stunned to discover that only a handful of countries were collecting any data for the reporting of poverty figures. He found this situation unacceptable and initiated an effort that among other things resulted in the creati
After the Deluge
Once, for a dare,
He filled his heart-shaped swimming pool
With bank notes, high denomination
And fed a pound of caviar to his dog.
The dog was sick; a chartered plane
Flew in replacement for the Persian rug.
In an article on a Brookings website, Laurence Chandy and Homi Kharas chide the World Bank for three so-called “contradictions” in its global poverty numbers, including the Bank’s latest update. Let me look more closely at these “contradictions” in turn.
First, Chandy and Kharas chide the Bank’s team for assuming that North Korea has the same poverty rate as China. I wish Chandy and Kharas good luck in trying to measure poverty in a place like North Korea, with almost no credible data of any sort to work with. I could offer a guess that 80% of North Korea’s population is poor today—roughly the same as China before it embarked on its reform effort in 1978. This would add slightly less than 1 percentage point to our estimate of the “$1.25 a day” poverty rate for East Asia in 2008.