This is a true story…
It is the year 2005. 26 young Bangladeshi men are crammed on a small rubber boat. Floating on the vast Mediterranean Sea. The boat's engine had stalled days ago.
10 days without food or water. The men are faced with a choice – death from drinking sea water or the inhuman alternative of having to drink one’s own urine. The pain of watching a brother or a dear friend slowly and painfully starve to death is too much. One by one the men start looking at each other - wondering which part of a dead body would be edible. Another weakly searches for something sharp enough to cut out a chunk of his own flesh, before collapsing dead from hunger and fatigue…
This is what a group of young Bangladeshis faced in 2005, when they embarked on an illegal journey to Spain. Only three survived the ordeal and lived to speak of the horrors of those 10 days.
Global GDP growth and as well as GDP growth in each of the regions were lower in 2009 compared to 2007. More specifically, specifically, negative growth rates were observed during 2009 in developed countries & European Union, Central and SE Europe & CIS countries and to a lesser extent in LAC, while the growth rates for East Asia, South Asia, Middle East, North Africa and Sub-Saharan Africa were positive in 2009 but lower than in 2007.
Reflecting this, all regions experienced higher unemployment rates, with the highest being in the developed economies & EU, Central and SE Europe & CIS and LAC economies, which again all had negative GDP growth rates in 2009. The ILO estimates that the global crisis has led to 34 million more unemployed and the World Bank estimates that about 60 million people may have been pushed into poverty.
The deep power crisis that Bangladesh is currently living through is affecting more people than the 40 percent population who currently have access to electricity. The reasons are simple.
For industries power outages increase production costs and the operating uncertainty that enterprises face. Losses arise from spoilage of goods-in-process and damage to machinery. Often the cuts in power supply cause production losses lasting beyond the duration of the outage. E-commerce and ICT cannot operate without reliable supplies of electricity. Mechanization of businesses is rendered ineffective, affecting productivity. SMEs rely on electricity for a variety of needs—lighting, refrigeration, grain mills, water pumping, food preservation and you name it. More generally, economic growth that creates jobs and enhances incomes requires electricity. Less and unreliable electricity translates into less and unreliable jobs. This is now a well established fact.
The million dollar question is what do we do to energize the economy?
Patrick Bond’s lengthy comment on my response to his blog post merits a separate blog post.
Thanks for your response. It appears as if there are at least four areas where we end up agreeing, except that I reach these conclusions using economic reasoning, which also serves to highlight some differences.
1. I’m glad you agree that there is a difference between accounting and economic welfare. But you still don’t seem to accept the result of my simple example of two countries (one following a wasteful trajectory and the other the optimal one) that genuine savings is the same in both cases.
|UN Photo/WFP/Amjad Jamal|
A World Bank report released on July 30 finds that poverty in Pakistan fell by an impressive 17.3 percentage points between 2001 and 2008 (from 34.5 percent in 2001-02 to 17.2 percent in 2007-08). Three out of Pakistan’s four major provinces – Khyber Pakhtunkhwa (formerly NWFP), Punjab, and Sindh – saw significant declines in poverty during this period. The largest fall in poverty was in Khyber Pakhtunkhwa (KP). According to the Bank report “high level of remittances, both foreign and domestic, seem to have facilitated” the decline in poverty in KP.
Pakistan saw migrant remittances reach a record $ 8.9 billion in fiscal year 2010, an increase of 14 percent compared to the 2009 fiscal year despite the global economic crisis (Pakistan’s fiscal year runs from July to June). The World Bank report says “Continued strong growth in worker’s remittances in the past few years has also contributed to improvements in the external current account balance” and “have facilitated improvement in the country’s external position”.
Development is about welfare enhancing transformation through economic, social, political, and technological progress. Transformation is predicated on per capita income growth but development is also about progress in reduction of poverty and inequality, individual capabilities, access to social services, and quality of life. Both growth and development are also predicated on distributive politics of how a society is able to deal with vested interests and social conflicts.
During past sixty years, growth spurts have occurred in most countries but generally outcomes have fallen short of expectations. Developed economies have averaged growth rates of 2.4 percent during 1990 and 2008 while developing economies have collectively increased their GDP by an average of 4.7 percent over the same period. For low and middle income countries, physical capital is the
An important book has just been released by the World Bank: Demanding Good Governance: Lessons from Social Accountability Initiatives in Africa (edited by Mary McNeil and Carmen Malena). The book is important because the content is provided by practitioners in the field, who share real life examples from their firsthand knowledge and experiences. This is likely to further South to South learning, and, therefore, a departure from the standard literature in the field.
The book describes and analyzes the work of seven countries in Sub-Saharan Africa: Benin, Ghana, Malawi, Nigeria, Senegal, Tanzania, and Zimbabwe. The case studies were identified from multi-country social accountability stocktaking exercises commissioned by the World Bank Institute in view of representing a variety of approaches, strategies and objectives within a range of political, social, cultural and institutional context. The analysis and descriptions of these seven initiatives are intended to serve as a resource for government and civil society representatives who are interested in exploring similar possibilities for their countries and for research communities and donors to promote and support enhanced social accountability and demand for good governance in Africa. The following are some questions that the book attempts to answer:
I am not sure if I stumbled upon a tool for fighting corruption or a conspiracy theorist’s dream. Either way, I will report and leave the judgments and interpretations to you, the reader. Before you begin reading this particular blog post, I would recommend that you close your door, pull down the shades and close all other browser windows; after all, you never know who could be watching.
WikiLeaks says they have a “history of breaking major stories in every major media outlet and robustly protecting sources and press freedoms.” They claim that “no source has ever been exposed and no material has ever been censored since their formation in 2007.” WikiLeaks claims they have been “victorious over every legal (and illegal) attack, including those from the Pentagon, the Chinese Public Security Bureau, the Former president of Kenya, the Premier of Bermuda, Scientology, the Catholic & Mormon Church, the largest Swiss private bank, and Russian companies.” And, as if that is not enough of a soap box on which to stand, WikiLeaks claims to have “released more classified intelligence documents than the rest of the world press combined.” If you do not believe WikiLeaks, perhaps you might trust another source, Time Magazine who suggests that WikiLeaks “...could become as important a journalistic tool as the Freedom of Information Act.”
- Russian Federation
- Urban Development
- Labor and Social Protection
- Social Development
- Science and Technology Development
- Public Sector and Governance
- Private Sector Development
- Macroeconomics and Economic Growth
- Law and Regulation
- Information and Communication Technologies
- Time Magazine
- leaking information
- Catholic Church
- Alpha Kappa Alpha Sorority Inc
Seventy percent of all trade is trade in goods. World trade volume declined by over 20% from peak levels trough April 2008 to January 2009, and this decline was observed across the board – advanced economies recorded a decline of over 23%, Asia about 25%, and so on. Several explanations were provided. One was that countries were raising tariffs and nontariff measures to protect domestic industries during the global downturn.