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Poverty

Lifting the lid on the household: A new way to measure individual deprivation

Duncan Green's picture

Guest post on an important new initiative, the Individual Deprivation Measure, from Scott Wisor, Joanne Crawford, Sharon Bessell and Janet Hunt.

Woman in her home. Kaski, NepalYou don’t have to look far to find assertions that up to 70% of the world’s poor are women ‑ despite Duncan’s efforts to show that the claim cannot be substantiated.

Just last month, ONE launched a new campaign called “Poverty is Sexist”, drawing on star power to bring attention to the issue of women’s poverty.

ONE didn’t use the 70% stat, but implied that poverty is feminized. Yet the reality is that it is still not possible to say whether women are disproportionately poor ‑ despite widespread calls  for better sex-disaggregated statistics.

Why? Because both monetary measures of poverty such as the International Poverty Line and multidimensional measures such as the Multidimensional Poverty Index continue to use the household as the unit of analysis. This assumes that everyone in a given household is equally poor or not poor – and that’s a big problem.

Not to mention concerns about the gendered differences in the experience of poverty. How do you price the value of being free from violence or securely accessing family planning?

These are not small problems. A great deal hangs on how we measure social progress. Are development programs working? Do anti-poverty policies make a difference? Is foreign aid alleviating poverty? Evaluating households makes it impossible to see how different members of the household are doing. And failing to assess dimensions of life that are particularly important to poor women, or men, limits our ability to show whether and how their poverty differs.

So what to do? Well, despite heated debates about measuring global poverty, something of a consensus has emerged. Most experts now agree that monetary poverty measurement should be complemented by multidimensional measurements. The individual, not the household, should be the unit of analysis. Poverty measurement should reflect the views and priorities of poor people. And in so far as possible, measurement should provide meaningful comparisons across contexts and over time.

Understanding Europe’s immigrants’ challenge from the viewpoint of the bottom 40%

Sudharshan Canagarajah's picture
A recent Economist (April 25th, 2015) cover story on the “Europe’s boat people: A moral and political disaster ” (requires a subscription), refers to a critical global challenge of migrants and asylum seekers as countries around the world undergo trying times due to war, economic crisis, and joblessness, resulting in more poverty and deprivation.

Much of the world is deprived of poverty data. Let’s fix this

Umar Serajuddin's picture


The availability of poverty data has increased over the last 20 years but large gaps remain

About half the countries we studied in our recent paper, Data Deprivation, Another Deprivation to End are deprived of adequate data on poverty. This is a huge problem because the poor, who often lack political representation and agency, will remain invisible unless objective and properly sampled surveys reveal where they are, and how they’re faring. The lack of data on human and social development should be seen as a form of deprivation, and along with poverty, data deprivation should be eradicated.

Nepal needs your support

Saurav Rana's picture
Saurav Rana/World Bank
By now, all of you must have heard of the massive earthquake and numerous aftershocks that have shaken Nepal over the last few days. As I am writing this, there is another tremor, 36 hours after the initial quake.
               
I am lucky that my family is safe. We have been fortunate. The majority of the people in Kathmandu are camped out in makeshift tents set up at various open spaces across the city — schools, army barracks and open fields. Some of these are coordinated by the rescue workers while others are set up by local residents. In some places, cremations happen only 5 meters away from where people sleep. The rain makes it very difficult in an already emotionally scarring time. This is just in Kathmandu.
 
Saurav Rana/World Bank

​Rural areas, where 80% of Nepalis live, are devastated. Entire villages have disappeared, buried under landslides triggered by the multiple quakes. Where they haven't, village houses, made mainly of mud and wood, have been reduced to dust, leaving people exposed to the elements. This is happening in some of the most difficult-to-reach hilly and mountainous terrain.

The number of casualties rises by the hour. Although my family and I are safe, many of my friends have lost relatives. Many people we know no longer have their houses. Our staff’s granddaughter needs to have her leg amputated. My "Didi" who took care of me as a child and is a second mother to me - lost her cousin who was crushed when their house collapsed. She really does not even know how to begin to mourn, knowing she still has to keep herself and many other safe.

The heritage we have lost is equally unimaginable. Centuries-old temples and palace squares are down in dust. Imagine the Due Torri in Bologna or the Washington Monument in Washington D.C. crumbling into rubble. The loss has been demoralizing.

The international community has reacted swiftly and relief efforts are in full swing. Hercules and IL-76 military aircrafts have been flying around the clock bringing in supplies, relief materials and workers. Kathmandu, a valley, has only two major highways connecting it to the rest of the world by land - one with China and one with India. Reports of damage to those highways has limited what can be brought into the city by land.
 
Saurav Rana/World Bank

However, this is the just the beginning. The greatest challenges are yet to come. The monsoon season is just a month away. The wet monsoon months are synonymous with outbreaks of various diseases including dysentery, cholera, and hepatitis. With many people's homes destroyed, crowded camps will continue to provide refuge in the coming months. Such densely packed and crowded places with poor hygiene conditions will be ripe breeding grounds for diseases, especially in Kathmandu, where clean water is a scarcity even under normal circumstances.

Here’s my plea to everyone reading this.

The first response has been absolutely fantastic and lifted our spirits, but the support will need to be sustained over time. Relief will not only be limited to rebuilding but also preventing disease outbreaks, which will be more prevalent during the monsoon months.

We will need clean water, medication, waterproof clothes, and infrastructure support to build hygienic camps for people who have lost their homes.
 
Dealing with potential outbreaks will be more challenging with this devastation. Please support organizations involved in Nepal’s relief effort and also help build awareness around the impending health and sanitation issues.

It has been a very scary last few days. It has been the first time that I’ve had to confront my own mortality: sitting, waiting in the eerily quiet night knowing there will be another shock. But also overcoming this anxiety to help my family and everyone at home, and then, once they are safe, the rest of the country.

We need your support. Nepal needs you.


Blog in English: http://blogs.worldbank.org/endpovertyinsouthasia/nepal-needs-your-support
Blog in Spanish: http://blogs.worldbank.org/voices/es/nepal-necesita-su-ayuda
Blog in Arabic: http://blogs.worldbank.org/voices/ar/endpovertyinsouthasia/nepal-needs-your-support
​Blog in French: http://blogs.worldbank.org/voices/fr/le-nepal-a-besoin-de-votre-aid
What we're doing in Nepal: http://www.worldbank.org/en/country/nepal/brief/fact-sheet-world-bank-do...

Global Citizen Earth Day: Rallying for People and the Planet

Dani Clark's picture

On April 18 close to 300,000 people united under a warm sun on the National Mall in Washington, DC, for Global Citizen 2015 Earth Day, a momentous day-long mix of advocacy and entertainment, urging citizen action to help end extreme poverty by 2030 and stop climate change.

Musical acts alternated possession of the stage with a diverse cadre of global leaders making policy commitments and calling citizens to action throughout the eight-hour event. Superstars like Mary J. Blige, Usher, and the band No Doubt roused the massive crowd which spilled out on green grass around the iconic Washington Monument. More than 2 million people tuned into the live webcast on YouTube.

“2015 is the time for global action. You have the power, your generation can change, your generation can make a difference,” UN Secretary General Ban Ki-moon told the crowd, sharing the stage at the end of the event with World Bank Group President Jim Yong Kim and IMF Managing Director Christine Lagarde.

How can Latin America and the Caribbean keep up inclusive growth?

Louise Cord's picture
The Latin America and Caribbean (LAC) region has been the most inclusive region in the world over the last decade: not only did it cut extreme poverty in half, it also realized the highest income growth rate among the bottom 40 percent of income earners in absolute terms, as well as relative to the total population. Between 2006 and 2011, the average growth rate per year in the mean income of LAC’s bottom 40 was approximately 5.2%. Moreover, when compared with the rest of the world, the region’s bottom 40 enjoyed the most rapid income growth relative to the total population (Figure 1).

A Food System that can feed everyone, everyday, everywhere

Juergen Voegele's picture



Whether you’re a food producer or consumer, and no matter what part of the world you live in, I’m sure we can agree: The world needs a food system that can feed everyone, everyday, everywhere.

A food system that works for everyone can also create jobs and raise the incomes of smallholder farmers and rural residents who are 78 percent of the world’s poor people. After all, growth originating in agriculture is proven to be 2 to 4 times more effective at reducing poverty than growth originating in other sectors. An effective food system can also provide better nutrition, steward the world’s natural resources, and even be a part of the solution to climate change.
 

Economists weigh in on oil prices and an uneven global recovery

Donna Barne's picture
World Bank chief economists, clockwise from upper left: Senior Vice President and Chief Economist Kaushik Basu, Augusto de la Torre (Latin America and the Caribbean), Shanta Devarajan (Middle East and North Africa), Francisco Ferreira (Sub-Saharan Africa), Sudhir Shetty (East Asia and Pacific), Hans Timmer (Europe and Central Asia), Martin Rama (South Asia).


​Lower oil prices are a boon for oil importers around the world. But how well are oil-producing countries adapting to the apparent end of a decades-long “commodity supercycle” and lower revenues? And what does this mean for the global economy?

World Bank economists provided insights on the situation in six developing regions at a webcast event April 15 ahead of the World Bank Group-IMF Spring Meetings. The discussion focused on the challenge of creating sustainable global growth in an environment of slowing growth.

World Bank Chief Economist Kaushik Basu said the global economy is growing at 2.9% and is “in a state of calm, but a slightly threatening kind of calm. … Just beneath the surface, there’s a lot happening, and that leads to some disquiet, concern – and the possibilities of a major turnaround and improvement.”

How online work is changing labor force participation and fostering urban youth inclusion in Pakistan

Nicola Magri's picture
The Digital Youth Summit 2015 (May 7-9, 2015, Peshawar) will explore the potential of e-lancing.

The vibrant city of Peshawar is getting ready to host the 2nd Digital Youth Summit (May 7-9, 2015, Shiraz Arena). Co-organized by the KP IT Board, Peshawar 2.0 and the World Bank, the Digital Youth Summit is a tech conference and startup expo gathering participants from Pakistan and all over the world passionate about tech entrepreneurship. While there is a lot of excitement about how technology fuels entrepreneurship, there has also been a quiet and steady rise of the ‘e-lancer’
 
Source: https://www.elance.com/trends/skills_central,
Accessed on April 10, 2015

What is e-lancing? Exactly what you think it is. E-lancing is free-lancing for the digital age. Powered by  ICT tools and the internet, e-lancing allows independent tech savvy workers connected to the internet access to the global labor market. Over the past years, even ‘physical’ workspaces have started to get virtual through tele-conferencing, video meetings etc. Many are very convinced by the benefits of ICT-enabled remote work and the flexibility that comes with it while others caution that it may not be the holy grail people tout it to be. However everyone is in agreement about one thing: ICT reduces barriers and distances making the global market more accessible than ever.

All you need is a computer and an internet connection. Thanks to ICTs, e-lancing is booming and there are multiple platforms where employers and e-lancers can “meet” and do business. These virtual marketplaces functions like a Craigslist for skilled tasks: employers post tasks and e-lancers respond to posted tasks and submit offers. Once selected, the e-lancer starts working remotely for his/her client. In most cases, the e-lancing platforms remain the center for all main interactions (payments, reviews, messaging, etc.) between the employer and the on-line worker so to ensure transparency and avoid frauds.

Will South Asia make the most of cheap oil?

Markus Kitzmuller's picture

The world economy today presents itself as a diverse canvas full of challenges and opportunities. Advanced economies continue to struggle towards recovery, with the US on its way to tighten monetary policy as the economy picks up while a still weak Eurozone awaits quantitative easing to kick in. At the same time, plunging oil prices have set in motion significant real income shifts from exporters to importers of oil. Astonishingly, amidst all this turmoil, South Asia has emerged as the fastest growing region in the world over the second half of 2014. Led by a strong India, South Asia is set to further accelerate from 7 percent real growth in 2015 to 7.6 percent by 2017, leaving behind a slowing East Asia gradually landed in second spot by China.



While bolstered by record low inflation and strong external positions across the region, the biggest question yet to be addressed by policy makers in South Asia will be how to make the most of cheap oil.
All countries are net oil importers as well as large providers of fuel and related food subsidies, therefore bound to benefit from low oil prices. However, the biggest oil price dividend to be cashed in by South Asia is one yet to be earned, and not one that will automatically transit through government or consumer accounts. The current constellation of macroeconomic tailwinds provides a unique opportunity for policy makers to rationalize energy prices and to improve fiscal policy. Decoupling external oil prices from fiscal deficits may decrease vulnerability to future oil price hikes – something that may very well happen in the medium term. Furthermore, cheap oil offers a great opportunity to introduce carbon taxation and address the negative externalities from the use of fossil fuels.

The World Bank’s latest South Asia Economic Focus (April 2015) titled “Making the most of cheap oil” provides deeper insights regarding South Asia’s diverse policy challenges and opportunities stemming from cheap oil.
A first major realization is that the pass through from oil prices to domestic South Asian economies is as diverse as the countries themselves, thanks to a variety of different policy environments across countries and oil products. This is also reflected in recent dynamics, seeing India taking determined action towards rationalizing fuel and energy prices, even introducing a de facto carbon tax and beginning to reap fiscal and environmental benefits. Other countries have so far shown less or no enthusiasm towards reform, in spite of significant and/or increasing oil dependency (particularly in electricity generation, one of the region’s weak spots). 


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