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Bangladesh: Setting a global standard in ending poverty

Qimiao Fan's picture



There is a lot for Bangladesh to celebrate in the latest World Bank research on global poverty and inequality.
The new report, entitled Poverty and Shared Prosperity 2016: Taking on Inequality”, uses revised data to give a more accurate estimate of how many poor people live in Bangladesh. What the report shows is that 18.5 percent of the population was poor in 2010 compared with 44.2 percent in 1991.

This is a major achievement that will receive global recognition on October 17 when the World Bank Group marks End Poverty Day with the Bangladesh people at an event in Dhaka.

This achievement means that 20.5 million Bangladeshis escaped from poverty between 1991 and 2010. It means that Bangladesh beat the deadline by an impressive five years in achieving Millennium Development Goal number 1, an internationally recognized target to cut extreme poverty rates by half by 2015.

It is worth remembering how far Bangladesh has come.

To reinvigorate Europe, we need more integration… of services

Doerte Doemeland's picture


To reinvigorate growth in Europe, European Central Bank President Mario Draghi called for more common projects in the European Union (EU). And he emphasized that these efforts need to meet a set of minimum bars: they should “…focus on those actions that deliver tangible and immediately recognisable results… [they] should complement the actions of governments; they should be clearly linked to people’s immediate concerns; they should unequivocally concern matters of European or global significance.”

We couldn’t agree more.

Chart: South Asia’s Exports Increasing in Value

Erin Scronce's picture

In South Asia, more than one million young workers enter the labor market each month. Education levels are on the rise, cities are sprawling, exports are gaining value and as a result, many eyes are on the region to become the next ‘global factory’. But to become the world’s next middle-income region, South Asia’s firms must become more globally competitive.

On October 6, join a live event where global thought leaders, business leaders and policy makers will discuss the obstacles and opportunities affecting the South Asia region’s competitiveness.

Making South Asian Apparel Exports More Competitive

Ritika D’Souza's picture

Apparel workers in Bangladesh

There is now a huge window of opportunity for South Asia to create more apparel jobs, as rising wages in China compel buyers to look to other sourcing destinations.  Our new report – Stitches to Riches?: Apparel Employment, Trade, and Economic Development in South Asia  –  estimates that the region could create 1.5 million new apparel jobs, of which half a million would be for women. And these jobs would be good for development, because they employ low-skilled workers in large numbers, bring women into the workforce (which benefits their families and society), and facilitate knowledge spillovers that benefit the economy as a whole.

But for these jobs to be created, our report finds that apparel producers will need to become more competitive – chiefly by (i) strengthening links between the apparel and textile sectors; (ii) moving into design, marketing, and branding; and (iii) shifting from a concentration on cotton products to including those made from man-made fibers (MMFs) – now discouraged by high tariffs and import barriers. These suggestions recently drew strong support from panels of academics and representatives from the private sector and government when the report was launched mid-year in Colombo, Delhi, Dhaka, and Islamabad. South Asia is now moving on some of these fronts but a lot more could be done.

Moving up the apparel value chain
Stitches to Riches? finds that South Asia’s abundant low-cost labor supply makes it extremely cost competitive (except for possibly Sri Lanka). But rapidly rising living costs in apparel manufacturing hubs, coupled with international scrutiny, are increasing pressure on producers to raise wages. Plus, countries like Ethiopia and Kenya, who enjoy a similar cost advantage, are entering the fray, and some East Asian countries already pose a big challenge. The good news is that the policy reforms needed to keep the apparel sector competitive would likely benefit other export industries and transform economies (view end of the blog).

Tourism energizes South Africa’s job market

Christopher Rooney's picture
Christopher Rooney, guest blogger, is a junior researcher at the Development Policy Research Unit at the University of Cape Town
Tourism in South Africa is seen as a driver for growth because of its linkages with other parts of the economy. Photo: Trevor Samson / World Bank

There is strong evidence that suggests that the South African tourism industry can help create a large number of secure, inclusive jobs. Despite the global financial crisis and a sector which competes on a global level, it created 48,000 jobs since 2008. Furthermore, many of these jobs are low-skilled, located in towns where there is not much other economic activity and have a higher-than-average representation of women and the youth. In addition, there are also opportunities for employees to increase their skills and their wages, so they do not remain in a low-wage, low productivity wage cycle permanently.

What are some critical innovations for improving port-hinterland connectivity?

Bernard Aritua's picture
Photo credit: Hxdyl/Shutterstock
Imagine landing in the wee hours of the morning into Netaji Subhas Chandra Bose International Airport in Kolkata, India. As you leave the airport in a taxi, you find yourself stuck in heavy traffic and this at 4:00am in the morning! It does not take long to realize that you are sharing the roads with other early rising passengers riding in cars and buses, but also with a long queue of freight trucks, which seem to be the majority of vehicles along the road. Why are so many freight trucks winding through the city center? You soon learn from the taxi driver that some of the trucks are heading to, or coming from the famous ‘Barabazar’ market, but others are heading towards Kolkata port.

As your taxi leaves the line of trucks behind, you realize that you could be in any port-city in India or, for that matter, in China, USA or Europe. The types and number of trucks, and the freight carried may vary, but the challenges of port-generated traffic affecting the city hinterland is common. Of course, urban mobility solutions are multi-dimensional and usually include complementary strategies, investments and actors. However, the root cause of port-generated city traffic is simply a product of conventional port planning.

In Kolkata, the problem of port-generated traffic could get worse with the completion of the Eastern Dedicated Freight Corridor and National Waterway 1 (Jal Marg Vikas project). However, thanks to an innovative port-hinterland connectivity solution, supported by the World Bank, the ports of Kolkata and Haldia will dramatically increase their capacity while solving the issue of port-generated traffic. This is great news for the many truck drivers, who can often take a whole night just to get in queue to enter the port.

Chart: High-Tech Exports on the Rise in South Asia

Erin Scronce's picture

 

In South Asia, high-tech exports comprise a much larger share of total manufactured exports today than they did in 1990. In fact, the percentage of high-tech exports more than doubled between 1990 and 2014, and have been trending upwards for the past 3 years. Aircraft, computers, and pharmaceuticals are all examples of high-tech exports, which rely on large outlays of research and development. As South Asia seeks to become more globally competitive, these industries can help propel the region's countries into middle-income levels.

Find more trade data from South Asia
Read the latest trade news and research from the World Bank Group 

Building on Six Decades of Partnership toward a Promising Future

Annette Dixon's picture
VP
Annette Dixon, World Bank Vice President for the South Asia Region and Idah Pswarayi-Riddihough, World Bank Country Director for Sri Lanka and the Maldives in conversation with an Internally Displaced Person (IDP) living in a temporary welfare camp. Photographer: Mokshana Wijeyeratne

Sri Lanka amazes me in many ways, with its smiling faces among a rich tapestry of cultures, diversity, and natural wonders. On this fourth visit and first time in the Northern Province, I once again found a resilient and industrious people eager to build their lives and advance the country together.

As Sri Lanka recovers from an almost three-decade long conflict, much progress has been made. I am proud that the World Bank Group has been a close and trusted partner with the country to help restore lives, livelihoods, and unlocking the potential of all of its people, inclusive of men and women, diverse geographic locations, as well as different ethnic and religious backgrounds.

Chart: LED lights gaining market share globally

Jiemei Liu's picture

How can industry remain competitive in the global market while meeting targets to reduce greenhouse gas emissions?  A recently released report by the World Bank Group and partners, A Greener Path to Competitiveness, explains that to meet these dual objectives, governments, industries and consumers must all take action. The lighting industry is an example of one area where these three entities have come together to mainstream an energy-efficient option, LED lights.


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