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shared prosperity

Poverty, Shared Prosperity, and Trade-Offs

Kathleen Beegle's picture

In April 2013, the World Bank Group endorsed two ambitious goals:  (1) to end extreme poverty by 2030, and; (2) to promote “shared prosperity” by boosting the incomes of the poorest 40 percent of the population in every country. The introduction of the second goal marked a shift in the World Bank Group’s poverty reduction mission. Some might consider the goal #2 to constitute a refinement of a longer-standing -- albeit implicit -- emphasis on growth, widely considered a necessary condition for poverty reduction. 

Is goal #1, ending extreme poverty by 2030, paramount and is goal #2 subsidiary to that first objective? On the other hand, if these two goals are prioritized equally, what might this mean for the extreme poor?  What are the trade-offs between boosting the incomes of the bottom 40 percent in every developing country and ending extreme poverty globally?

The role of changes in income distribution

Jos Verbeek's picture

There is a lot of public discussion about Thomas Piketty’s book on capital and its implications for inequality. His work strikes a chord with many of us because it outlines a future where basically your own or inherited wealth matters and where wage income and apparently your human capital does not matter that much for your income generation. So how do we escape such a one-sided and unequal world? Well, maybe one way is to understand better the interaction between growth, changes in the income distribution, and their implications for shared prosperity.  

Poverty reduction, growth, and movements in income distribution

Jos Verbeek's picture

Last week the President of the World Bank Group launched at the Spring Meetings the report "Prosperity for All." One of the interesting areas the note reported on was the interrelationship between growth, movements in the income distribution and poverty reduction.

There are various ways of showing the impact of growth on people’s income and its interrelationship with a country’s income distribution.  In comparing distributions over time, one of the more useful graphs is a Pen’s Parade (figure 1a), named after another Dutch economist as so many inequality or poverty measures are (other examples are the Theil index and Thorbecke for the Foster-Greer-Thorbecke Poverty Measure).

Poland Scores High on Shared Prosperity Progress

Laura Tuck's picture

Laura Tuck, Vice President for the World Bank's Europe and Central Asia region, discusses her trip to Poland, its economy, progress in boosting shared prosperity, and the World Bank's partnership with the country.

 

Looking at Shared Prosperity in Romania: Video Blog by Laura Tuck, Vice President of the Europe and Central Asia Region at the World Bank

Laura Tuck's picture

Laura Tuck, Vice President for the World Bank’s Europe and Central Asia Region, talks about growth in Romania and looks at the country's commitment to the shared prosperity agenda.

Logistics: a Critical Nexus Point for Inclusive Growth

Marc Juhel's picture
As I get ready to head back to Washington DC after a visit to The Netherlands, I don’t want to miss the opportunity to share with you some thoughts on sustainable logistics.

While some of you might be familiar with the term, transport logistics refers to the services, knowledge and infrastructure that allow for the free movement of goods and people. 

In today’s globalized economies, logistics is recognized as a key driver of competitiveness and economic development. And as policy making turns its attention to promoting sustainable growth paths, valuing scarce resources, and minimizing environmental impacts, sustainable logistics is indeed a key nexus point.

Efficient logistics systems are a precondition for regions, countries, cities and businesses to participate in the global economy, boost growth, and improve the living conditions of millions of people.

That’s why this topic is so important for the World Bank’s mission and our client countries in the transport sector. And that’s why this week in The Hague we organized, together with the government of The Netherlands and partners like Dinalog, the Dutch Institute for Advanced Logistics, our first Conference on Sustainable Logistics.

Five Opportunities for 21st-Century Transport

Jose Luis Irigoyen's picture
The world is in the midst of unprecedented urbanization, with cities expected to hold 5.2 billion residents by 2050. One of the major challenges of the 21st century, therefore, is achieving a sustainable future for our cities. And transport – which connects people to economic opportunities, education, health services, and more – can make or break “The Future We Want.”

Decisions made at international summits this year and next will establish the framework for global action for decades to come. The transport sector’s future impact on mobility, congestion, economic opportunity, human health, and climate change will be determined by the choices we make today. To ensure transport contributes to poverty reduction and shared prosperity, a shift is needed in the way urban mobility systems are planned and designed. Building a sustainable transport future will require an integrated approach with the cooperation of multiple stakeholders: transport and city leaders, as well as the development and business communities.

In this spirit, the team of co-organizers and partner organizations behind Transforming Transportation – a two-day conference beginning today that convenes business leaders, policymakers, and city and transport officials – has identified five opportunities to move human society toward transport of the 21st century. These areas for action include: road safety, mid-sized cities, regional and local governments, finance, and data and technology.

Transforming Transportation for More Inclusive, Prosperous Cities

Jose Luis Irigoyen's picture
Also available in: Español | Français | 中文

 UNFCCC/FlickrLeaders in the transport, development, and for the first time, business sectors will convene for Transforming Transportation this week in Washington, DC.

Cities are the world’s engines of economic growth. Yet many have a long way to go when it comes to ensuring safe and affordable access to jobs, education, and healthcare for its citizens—in part because their transport systems are inadequate and unsustainable. This weakness is visible in packed slums and painful commutes in cities that fail to provide affordable transport options.

Inadequate transport comes with other costs related to air quality and safety. Beijing, China, battles dangerous levels of air pollution due in large part to motor vehicle emissions. Major Indian metropolises like Mumbai, Kolkata, and Chennai are growing out instead of up, contributing to increased travel distances and an estimated 550 deaths every day from traffic accidents. And across the globe, cities are the locus of up to 70 percent of greenhouse gas (GHG) emissions driving climate change.

Poor transport systems not only hinder the public health and economic growth of cities, they can spur civil unrest. More than 100,000 protestors, for example, gathered in Rio de Janeiro, Brazil, on one night in June 2013 to express a wide range of grievances, including transportation fare hikes, poor public services despite a high tax burden, and other urban issues.

But in these challenges lie significant opportunities – particularly for the business and transport sectors at the city level.

The Way We Move Will Define our Future

Marc Juhel's picture
Mobility is a precondition for economic growth: mobility for access to jobs, education, health, and other services. Mobility of goods is also critical to supply world markets in our globalized economy. We could say that transport drives development.
 

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