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How do we achieve sustained growth? Through human capital, and East Asia and the Pacific proves it

Michael Crawford's picture
Students at Beijing Bayi High School in China. Photo: World Bank


In 1950, the average working-age person in the world had  almost three years of education, but in East Asia and Pacific (EAP), the  average person had less than half that amount. Around this time, countries in  the EAP  region put themselves on a path that focused on growth  driven by human capital. They made significant and steady investments in  schooling to close the educational attainment gap with the rest of the world. While  improving their school systems, they also put their human capital to work in  labor markets. As a result, economic growth has been stellar: for four decades  EAP has grown at roughly twice the pace of the global average. What is more, no  slowdown is in sight for rising prosperity.

High economic growth and strong human capital accumulation  are deeply intertwined. In a recent paper, Daron Acemoglu and David Autor explore  the way skills and labor markets interact: Human capital is the central  determinant of economic growth and is the main—and very likely the only—means  to achieve shared growth when technology is changing quickly and raising the  demand for skills. Skills promote productivity and growth, but if there are not  enough skilled workers, growth soon chokes off. If, by contrast, skills are abundant and  average skill-levels keep rising, technological change can drive productivity  and growth without stoking inequality.

In China, conserving the past helps the poor build a brighter future

Ede Ijjasz-Vasquez's picture
How cultural heritage and sustainable tourism help reduce poverty
 
China has seen a booming tourism industry during the last few decades, thanks to a fast-developing economy and growing disposable personal income. In 2015 alone, the travel and tourism sector contributed to 7.9% of China’s GDP, and 8.4% of the country’s total employment. Not surprisingly, cultural heritage sites were among the most popular tourist destinations.

But beyond the well-known Great Wall and Forbidden City, many cultural heritage sites are located in the poorer, inland cities and provinces of the country. If managed sustainably, tourism in these areas can serve as a unique opportunity to help local communities—especially ethnic minorities, youth, and women—find jobs, grow incomes, and improve livelihoods.
 
“[Sustainable tourism] is not only the conservation of the cultural assets that are very important for the next generations to come, but, also, it’s the infrastructure upgrading, it’s the housing upgrading, and it is the social inclusion to really preserve the ethnic minorities’ culture and values – it is an interesting cultural package that is very valuable for countries around the world,” says Ede Ijjasz-Vasquez, a Senior Director of the World Bank.
 
To help reduce poverty and inequality in China’s lagging regions, the World Bank has committed to a long-term partnership with China on cultural heritage and sustainable tourism—with the Bank’s largest program of this kind operating around 20 projects across the country. These projects have supported local economic development driven by cultural tourism.
 
“Over the years, the program has helped conserve over 40 cultural heritage sites, and over 30 historic urban neighborhoods, towns, and villages,” according to Judy Jia, a Beijing-based Urban Analyst.
  
Watch a video to learn from Ede Ijjasz-Vasquez (@Ede_WBG) and Judy Jia how cultural heritage and sustainable tourism can promote inclusive growth and boost shared prosperity in China, and what other countries can learn from this experience.



Also available in: 中文

Empowering a New Generation of Female Entrepreneurs in Afghanistan

Mabruk Kabir's picture
Photo Credit: Mabruk Kabir / World Bank

Fatima brimmed with optimism. The 19-year-old recently established a poultry enterprise with the support of a micro-grant, and was thrilled at the prospect of financial independence.

“After my family moved from Pakistan, I had few options for work,” she said from her home in the Paghman district in the outskirts of Kabul. “The grant not only allowed me to start my own poultry business, but let me work from my own home.”

With over half the population under the age of 15, Afghanistan stands on the cusp of a demographic dividend. To reach their full potential, Afghanistan’s youth need to be engaged in meaningful work – enabling young people to support themselves, but also contribute to the prosperity of their families and communities.

For Pi Day, some pie charts on learning

Unika Shrestha's picture

It’s 3/14, also known as Pi Day – a mathematics holiday to celebrate the irrational, transcendental number we learned in school, for the most part, to calculate the circumference or area of circles. While there are a number of fulfilling Pi(e) related activities you can indulge in, from feasting on scrumptious pies to chasing down the value of Pi (good luck!), it is also an apt moment to turn attention to where children across the world stand in mathematics achievement and other learning outcomes.

The Syrian refugee crisis in Lebanon: empowering youth to serve as agents of change

Rene Leon Solano's picture


There was silence in the room. No one seemed to want to speak up. I asked again: “what are the most important challenges that you face every day?” Suba, a young woman in her early 20s living in Tripoli, one of the regions with the highest poverty levels and concentration of Syrian refugees in Lebanon, finally raised her hand and said: “We are unemployed and have no access to basic services. We are sympathetic to the Syrian refugee cause. However, they are taking our jobs.

Women can play a greater role in realizing South Asia’s potential

Annette Dixon's picture
Mumbai Train
The suburban train system in Mumbai is used by millions of women and men everyday, who rely on safe transport to access education and job opportunities. 

Last week, I took a journey on Mumbai’s suburban train system, which carries a staggering 8 million women and men, equivalent to the entire population of Switzerland, every day to where they live, work, and spend time with family and friends. Although stretched, the system has reduced mobility constraints and increased independence for millions of women who rely on safe transport to access education and job opportunities; contributing to the city’s dynamism and growth. There are similarly inspiring examples from all countries in South Asia.

As we mark International Women’s Day, we celebrate the progress made in improving women’s inclusion and empowerment, while seeking to better address continuing challenges, which are estimated to cost South Asian economies $888 billion, through devising and implementing solutions that will bridge remaining gaps.

Much to be proud of­a lot more remains to be done

South Asian countries have seen encouraging increases in greater access and gender parity in education. At the same time, the region has achieved substantial decreases in maternal and child mortality. Countries have made great strides in healthcare access through training more female healthcare workers while providing affordable care for mothers and children. The region also boasts many inspiring female leaders and role models, as well as the countless individuals positively contributing to their communities and societies against difficult odds. 

However, much more needs to be done in order to nurture all women and men to realize their potential. As South Asian countries become more prosperous, their growth trajectory will be less assured if hundreds of millions of women remain excluded from education and employment opportunities. South Asian countries will need to substantially expand their workforce in order to meet their economic growth goals and, at the same time, adequately support their increasingly large populations. Studies show that only around 1 out of 4 women in South Asia participate in the labor force, about half of what is typical in middle-income countries in other regions. Too many women face restrictions in decision-making, mobility, public safety; and far too many experience gender-based violence—the most egregious cases making headlines around the world. What can help bridge these gaps?

The long road to gender equality in Nepal

Richa Bhattarai's picture
 
The Government of Nepal is working to incorporate gender equality in all its development policies and programs. Credit: Bijay Gajmer/World Bank


Today marks International Women’s Day throughout the world. Here in Nepal, it is a joyful tribute to the fact that the country boasts three women holding key leadership positions in the country – Bidhya Devi Bhandari as President, Sushila Karki as Chief Justice of the Supreme Court, and Onsari Gharti Magar as Speaker of the Parliament.

All three are the first women to hold their respective posts, and the Chief Justice, especially, has been lauded as a bold and independent decision-maker.

The Constitution of Nepal 2015 has been a huge improvement from the days of yore:  Article 43 deals with the rights of women that include rights to lineage, right to safe maternity and reproduction, right against all forms of exploitation, and equal rights in family matters and property.

The Government of Nepal is also working to incorporate gender equality in all development policies and programs, including developing a gender responsive budget system.

We also have excellent examples of women making great leaps in almost all fields – science, economics, banking and finance, media, environment, education, public health, social service and development.

And in a heartening move, Chhaupadi, an inhuman practice that imposes upon women to stay outside their homes in unhygienic cow sheds during menstruation and childbirth, is set to be criminalized in the new legal code.

However, progress made in specific fields has not yet contributed to the overall improvement in girls’ and women’s lives across the country. Similarly, plans and policies do not always spur positive changes in reality.

Looking to the future: Ensuring better job opportunities for Tajikistan’s youth

Mohamed Ihsan Ajwad's picture
Ensuring better job opportunities for Tajikistan's youth
A significant share of Tajikistan’s workforce works outside the country. Photo: Gennadiy Ratushenko / World Bank


My colleague Victoria and I had an opportunity recently to meet with students at the Tajik-Russian Slavonic University in Dushanbe, Tajikistan, as part of our research and preparation for a new report called Tajikistan Jobs Diagnostic: Strategic Framework for Jobs.

Curious to learn about their future professional ambitions, we asked one class of students how many of them would like to work in the private sector after they graduate. Only about 10% of the students raised their hands. We also asked them how many would like to work for the government. This time, around 20% raised their hands.

The world’s wildlife needs young naturalists

Hasita Bhammar's picture
The youth from the Turia community celebrating their first workshop on tiger conservation in the Pench Tiger Reserve
The youth from the Turia community celebrating their first workshop on tiger conservation in the Pench Tiger Reserve

In 2010, 15 days after graduating from college, with nothing but a backpack and an old water bottle, I stood in front of a large gate with a rusted sign welcoming me to the “Pench Tiger Reserve.” The same reserve that inspired Rudyard Kipling’s, Jungle Book. None of the mock interviews  or standardized testscould have prepared me for the job at hand. I was there to set up a small nonprofit whose mission was to involve youth from the local community near the tiger reserve and instill in them a love and passion for the environment. Specifically, instill in these young minds a commitment to safeguard the 41 tigers that roamed wild in the reserve.

As a 21 year old, my employers were entrusting upon me this responsibility based on a simple philosophy – if you want to inspire young people – give the opportunity to someone young! In the two and a half years that I spent in the reserve, with the help of the forest department, three local schools and community members, we were able to invite leading conservationists, teachers, innovators and environmental enthusiasts to conduct hands-on workshops with children aged 10-16 from within the community. Every workshop answered questions on the importance of environmental protection and the rationale behind how simple, local efforts can have positive impacts globally. These curious minds absorbed knowledge like sponges and within a few years, we had the next set of forest protectors and tiger champions. They are influencers in the community and are currently involved in small enterprises that help the local economy and preserve the tiger habitat in and around the Pench Tiger Reserve.

Since leaving the Reserve, I have been active in many youth groups around the world. One such organization is the 2041 Foundation whose mission is to provide leadership training to young people especially from developing countries to help preserve the environment. As a part of this training, on an expedition to Antarctica, I was able to see firsthand the effects of climate change on our fragile ecosystems. This experience had a profound influence on my commitment to conservation.  

The skills that matter in the race between education and technology

Harry A. Patrinos's picture
Technology rapidly changes the workplace and the skills demanded, making current workers less employable. One approach is to think about the kind of work that technology cannot replace.
(Photo: Curt Carnemark / World Bank)
 


Depending on to whom you listen, automation, robotics, and artificial intelligence (AI) will either solve all our problems or end the human race. Sometime in the near future, machine intelligence is predicted to surpass human intelligence, a point in time known as “the singularity.” Whether the rise of the machines is an existential threat to mankind or not, I believe that there is a more mundane issue: robots are currently being used to automate production.


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