Download the January 2019 Global Economic Prospects report.
The informal sector — labor and business that is hidden from monetary, regulatory, and institutional authorities — accounts for about a third of GDP and 70 percent of employment (of which self-employment is more than a half) in emerging market and developing economies. While offering the advantage of employment flexibility in some economies, a large informal sector is associated with low productivity, reduced tax revenues, poor governance, excessive regulations, and poverty and income inequality.
Addressing the challenge of pervasive informality will require comprehensive policies that take into account country-specific conditions. Initiatives to boost long-term development might include measures aimed at reducing regulatory and tax burdens, expanding access to finance, improving education and other public services, and strengthening public revenue frameworks.
One-half of the world’s informal output and 95 percent of its informal employment is in emerging market and developing economies. Both informal output and employment have declined since 1990, particularly in countries with higher output growth, rapid physical capital accumulation, and larger improvements in governance and business climates.
Share of informal output and employment
Law and Regulation
Download the January 2019 Global Economic Prospects report.
If, like me, you’re a firm believer in New Year’s resolutions, early January ushers in the prospect of renewed energy and exciting opportunities. And as tradition has it, it’s also a time to enter the prediction game.
To sum up:
Notably, and despite increasing conflicts and growing fragility, Afghanistan is expected to increase its growth to 2.7 percent rate this year.
In this otherwise positive outlook, Pakistan’s growth is projected to slow to 3.7 percent in fiscal year 2018-19 as the country is tightening its financial conditions to help counter rising inflation and external vulnerabilities.
However, activity is projected to rebound and average 4.6 percent over the medium term.
What these countries have in common
These three countries all have a high level of income, which means the majority of their residents can afford to buy and own a car. The governments of these countries have also invested heavily into road and rail systems—including France’s transformative high-speed railway network. This effort has significantly increased the number of people who have access to fast and reliable transport, and helped bridge the social divide between urban and rural areas.
But “universal access” is only one of the four policy goals to achieve sustainable mobility: efficiency, safety, and green mobility are equally important. Now that the infrastructure is in place, and carbon-intensive cars and trucks are on the roads, the challenge for policy-makers is to figure out how we can reach these three other goals in a world where individual mobility has become a new “social right”. In other words, which policies will be most effective for reducing the environmental footprint of the current mobility system (GHG emissions, noise, and air pollution)?
- mass transit
- public transport
- electric vehicles
- electric cars
- Clean energy
- Fossil Fuels
- Fossil Fuel Taxes
- Climate Policy
- transport policy
- low-emission transport
- low-carbon transport
- green mobility
- green transport
- climate change mitigation
- sustainable transport
- sustainable mobility
- Sustainable Communities
- Urban Development
- Law and Regulation
- Climate Change
And power outages across the country have gone down drastically over the past few years.
After peaking in 2006, per capita electricity consumption failed to grow for almost a decade, remaining only one-fifth the average for other middle-income countries in 2014.
Fittingly, my new report
The study sheds new light on the overall societal costs — not merely the fiscal costs as in previous research — of subsidies, blackouts and other distortions in the power sector.
To that end, my team and I surveyed Pakistan's entire supply chain from upstream fuel supply to electricity generation, transmission and distribution, and eventually, down to consumers.
Put simply, the numbers we found are dire.
Problems begin upstream, where gas underpricing encourages waste and reduces incentives for gas production and exploration.
And with no recent significant gas discoveries, higher gas usage has widened the gap between growing demand and low domestic supply.
On top of that, the volume of gas lost before reaching consumers reached 14.3 percent in fiscal year 2015. By comparison, this number is about 1 to 2 percent in advanced economies.
Poor transmission contributed to 29 percent of the electricity shortfall in fiscal year 2015, while weak infrastructure, faulty metering and theft cause the loss of almost a fifth of generated electricity.
Electricity underpricing and failure to collect electricity bills have triggered a vicious “circular debt” problem, leading to power outages.
A lack of grid electricity also leads to greater use of kerosene lamps that cause indoor air pollution and its associated respiratory infections and tuberculosis risks.
Lack of access to reliable electricity also adversely impact children’s study time at night, women’s labor force participation, and gender equality.
Although Bangladesh has achieved much in the way of poverty reduction and human development, progress has been slower in some urban areas.
Issues such as slow-down of quality job growth, low levels of educational attainment (notably among the youth), and lack of social protection measures have taken the wind out of the proverbial urban reduction “sail.” As the country starts fresh in the new year, it is an opportune time to reflect on some of the key issues affecting urban poverty.
Despite the steady growth in Gross Domestic Product (GDP), successive Household Income and Expenditure Surveys (2005 to 2010 and 2010 to 2016) suggest that Given the accelerating rate of urbanization, it suggests that more people live in extreme poverty in 2016 than they did in 2010. With nearly 44% of the country’s population projected to be living in an urban setting by 2050, this issue is only likely to intensify.
Several factors may be driving this trend. Absence of education and skills dampen labor market participation and productivity. Among those who participate in the labor-force in urban areas, 19% of men and 28% of women are illiterate. For those who received at least some training, a recent study shows that only 51% of eighth-grade students met equivalent competency in the native language subject (Bangla). The figures were markedly lower for other subjects. Similar trends carry through to technical diploma and tertiary level institutes. As a result, many prospective employers report reluctance to hiring fresh graduates.
Along with other leaders from the World Bank Group, I am traveling back from a trip to Silicon Valley where we explored the links between technology and government, or GovTech, and their impact on developing countries and curbing corruption.
In October, hundreds of representatives of civil society organizations, public and private sector representatives, journalists and international organizations gathered in Copenhagen for the 18th International Anti-Corruption Conference. This annual conference is viewed by many as a leading forum in the field of anti-corruption.
The irony was hard to miss.
Last month, leaders from the public and private sectors, civil society, international organizations, academia, and the media met at the International Anti-Corruption Conference (IACC) in Copenhagen.
But the stories of the top-earning soccer stars living a glamorous life of wealth tend to make us forget that most athletes are not wealthy enough to retire when their careers end and find themselves facing the same challenges as everyone else looking to change professions.
This hidden hunger is especially pervasive among children.
These deficiencies have contributed to high levels of stunting, wasting and underweight children.
Micronutrient availability can make or break a balanced diet
But they can become toxic if consumed in large amounts.
But except for mandatory iodine fortification of salt, India lags in adopting food fortification as a scalable public health intervention.
This is a missed opportunity as
In 2016, the Food Safety and Standards Authority of India released standards for the fortification of five staple food items: rice, wheat, salt, oil, and milk. Further to that, regulations are now in place to fortify milk variants such as low fat, skimmed, and whole milk with Vitamin A and D.
But despite its significant health benefits, and while established for more than three decades by companies such as Mother Dairy, a subsidiary of the National Dairy Development Board (NDDB), milk fortification is not yet common practice across the Indian milk industry.
To fill that gap, NDDB partnered in 2017 with the South Asia Food and Nutrition Security Initiative (SAFANSI), the World Bank, and The India Nutrition Initiative, Tata Trusts to explore the possibilities of large-scale milk fortification in India.
Over the last twelve months, this collaboration has enabled ten milk federations, dairy producer companies, and milk unions across the country to pilot milk fortification for their consumers. Fifteen others have initiated the process.