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Ending Poverty in China: Small projects bring big benefits

Sitie Wang's picture
This blog is part of a series produced to commemorate End Poverty Day (October 17), focusing on China – which has contributed more than any other country to global poverty reduction – and its efforts to end extreme poverty by 2020. Read the blog series here. 

Proud to celebrate 25 years of partnership for a more prosperous and equal Romania

Elisabetta Capannelli's picture

In 1991, the World Bank Group opened its resident office in Bucharest and this November we will celebrate 25 years of continued presence in Romania. Romania joined the World Bank in 1972, yet it is really 1991 that marks the opening of the institution’s presence in Romania and our new role in a free and democratic nation. 

A quarter century is the measure of a generation and it is as an important milestone for an institution, as it is for a human being. Our presence in Romania has matured together with the country’s first generation of people born in a free economy and society. The challenges they faced, where the face of our support for change. 

An example of how private corporations can help end poverty in China: Alibaba and the “Internet + Poverty Reduction”

Ruidong Zhang's picture
This blog is part of a series produced to commemorate End Poverty Day (October 17), focusing on China – which has contributed more than any other country to global poverty reduction – and its efforts to end extreme poverty by 2020. Read the blog series here. 

Following a 2009 earthquake in Qingchuan County, Sichuan Province, Alibaba introduced the “Internet + Poverty Reduction” model, with the core concept to boost economic development in the affected areas with a business model that empowers people to move out of poverty using the Internet.

Alibaba announced its rural e-commerce strategy in October 2014, with a plan to invest RMB100 million (about $14.8 million) over the next three to five years in the development of local e-commerce service systems for 1,000 counties with 100,000 villages.

The program provides valuable services in three areas:
  1. Easy and affordable access to goods and services in poor areas including: delivery of consumer goods to rural areas and farm produce to cities, mobile phone recharge, utility bills payment, booking airline and train tickets, making hotel reservations, as well as microfinance, online medical consultation, and online learning;
  2. Provision of ecosystem support for sustainable rural development, including raising awareness about the Internet among local officials, building the capacity of local firms to use the Internet for business, Internet skills training for young people and farmers; and
  3. Infrastructure development for the new economy, including logistics infrastructure, payment systems, financial services, cloud computing and data collection. 
By mid-2016, Alibaba’s Rural Taobao Program established “Internet+” service systems in 18,000 villages in 400 counties (including about 200 poorest counties) in 29 provinces, and recruited more than 20,000 Taobao partners and helpers. In July, Rural Taobao launched its service-based 3.0 model, upgrading partners to rural service providers and village service stations to local service centers, business incubators and public-benefit cultural centers.
Alibaba’s “Internet + Poverty Reduction” features a number of innovations including e-commerce, job creation, access to finance, tourism development, education and healthcare.

Ending Poverty in China: How NGOs can play a role

Wenkui Liu's picture
This blog is part of a series produced to commemorate End Poverty Day (October 17), focusing on China – which has contributed more than any other country to global poverty reduction – and its efforts to end extreme poverty by 2020. Read the blog series here. 
China has 128,000 poor villages with 55.75 million registered poor people. There is no one-size-fits-all solution to lift them out of poverty. Typically, people fall into four categories of poverty, requiring different approaches. Unlike some development players, NGOs are more agile and are innovative in solutions, allowing them to provide support sooner.

The first category comprises those who are temporarily incapable of work due to illness or having school-aged children to support. For these people, rehabilitation or bringing back their capability to work to will help reduce their vulnerabilities.

The second category consists of those who have some resources but lack business skills or efficiency. Working with them to develop new business models and use resources more efficiently will help them get out of poverty.

The third category is made up of those who are capable of work but external conditions or resources like jobs are poor. Relocation or employment skills training may be effective solutions.

The fourth category comprises those who are permanently incapacitated, such as the severely disabled. They should be supported by the social protection system.   

Giving voice to the poor: Adding a human touch to poverty data in South Sudan

Utz Pape's picture

We humanize what is going on in the world and in ourselves only by speaking of it, and in the course of speaking of it we learn to be human. –Hannah Arendt

We all know that measuring poverty is critical to monitor progress and to tailor effective policy response. But what the numbers mask is the pain and suffering that people go through to make ends meet. Let’s take the case of South Sudan. The country has had a very tumultuous time, witnessing more than its share of a few crises between 2015 and 2016. The collapse of a fragile peace accord led to a renewed military confrontation while simultaneously international oil prices dropped, depriving South Sudan of its main source of foreign exchange. This triggered a severe fiscal and economic crisis, leading to sky rocketing prices as documented in our real time market price dashboard. Securing livelihoods has become more and more difficult with 66 percent of the population now living in poverty, a new peak.

The 66 percent number certainly summarizes the country’s poverty level, which is unquestionably useful for comparisons and analyses to inform policies and programs. However, what the number doesn’t reveal is the struggle that families go through daily. To capture this aspect and give a humane feel to an abstract poverty number, we have started collecting short video testimonials from people living in South Sudan as part of the High Frequency Survey:

Ending poverty in China: What explains great poverty reduction and a simultaneous increase in inequality in rural areas?

Guobao Wu's picture
This blog is part of a series produced to commemorate End Poverty Day (October 17), focusing on China – which has contributed more than any other country to global poverty reduction – and its efforts to end extreme poverty by 2030. Read this blog series.
Reducing poverty and inequality are two important socioeconomic policy objectives for most countries. While some can kill two birds with one stone, others may achieve either or none of these. In China’s special case, poverty reduction goes together with an increase in income inequality for at least the past 20 years. Here, I address some of  the underling factors in this mismatched trajectory.
For quite a long time, economic growth, increase in income inequality and reduction of poverty concurred in China. Since 1980, the country has made remarkable progress in reducing poverty. The head count ratio of poverty by the official poverty line, which is about 21% higher than the line that is set at USD 1.9 per day (2011 PPP), has been reduced by 94% from 1980 to 2015 in rural China (figure 1).
In contrast, the Gini coefficient of income distribution among rural residents in China rose from 0.241 in 1980 to 0.39 in 2011 or by 62% according to the official estimation, though it once declined between 1980 and 1985 and was said to decline slightly after 2012.

Figure 1: Change in Poverty head count ratio and Gini coefficient in rural China since 1980
Sources: China National Bureau of Statistics (2015), Poverty Monitoring Report of Rural China, China Statistics Press; the data for poverty by USD 1.9 per day is from PovcalNet: the online tool for poverty measurement developed by the Development Research Group of the World Bank.

A Sidekick for Development

Maya Brahmam's picture

October 17 was End Poverty Day – and we at the World Bank in Washington had a small celebration and a lively discussion around the new Poverty report: Poverty and Shared Prosperity 2016: Taking on Inequality. Topics ranged from 2 billion people living in countries affected by conflict to the work on social inclusion – which included a two-part definition of social inclusion: “The process of improving the terms for individuals and groups to take part in society” and “The process of improving the ability, opportunity, and dignity of people, disadvantaged on the basis of their identity, to take part in society.”
Then I happened to notice a tweet from Owen Barder on the Sidekick Manifesto (with a cool pop art look) with the apt tagline: In the story of poverty’s end, we can only be sidekicks. I particularly liked the statement: “The poor are not powerless or waiting to be saved.”
It seemed to be a good reminder that economic development is a complex and costly process, which requires political buy-in from a broad range of actors, including the local community. Progress is built over time, and there are no quick wins. In the larger scheme of things, the poor are the main actors, we’re just the sidekicks for development.

Celebrating a steep poverty drop in Bangladesh

Donna Barne's picture

Bangladesh Prime Minister Sheikh Hasina and World Bank Group President Jim Yong Kim celebrated Bangladesh’s dramatic progress fighting poverty on End Poverty Day, October 17, at a special event in the heart of Dhaka.

 © Dominic Chavez/World BankMore than 20 million people have lifted themselves out of poverty in Bangladesh in the last two decades. By 2010, the extreme poverty rate fell to 18.5 percent, down from 33.7 percent in 2000.
Speaking in the Bangla language, the prime minister said Bangladesh’s journey has never been smooth, but strong leadership and the resilience of the population have helped it become a lower middle income country and a model for others to imitate.

Competitive cities for jobs, growth, poverty reduction and shared prosperity?

Soraya Goga's picture
Photo by ecuadorpostales via Shutterstock

We are all aware of the statistics: cities are home to more than 50% of the world’s population, and they are growing so fast that 66 out of 100 people on earth will be urban dwellers by 2050. This, of course, will have major implications for people and poverty, climate change, and service delivery.
But did you also know that cities are the key drivers of global and national economic growth?
Currently, cities generate more than 80% of global GDP. Since the early 2000s, three-quarters of the world’s 750 largest cities have grown faster than their national economies. One of the key reasons for those cities’ success is higher productivity—as a result of their ability to attract skilled workers—as well as a high concentration of productive entrepreneurs and firms.
For decades, national and city leaders have also taken actions to build competitive cities, increasingly facilitating firms and industries to create jobs, raise productivity, and increase incomes over time—especially for the urban poor. They see this as the pathway to eliminate extreme poverty and to promote shared prosperity. This is particularly important in Sub-Saharan Africa and South Asia, where most of the world’s extreme poor live.

Inequality in the typical country in the last 25 years – a strong increase followed by a recent decline

Christoph Lakner's picture

This is the first of three blog posts on recent trends in national inequality.

Inequality has featured prominently in the public debate in recent times. Media outlets highlight the apparent surge in the incomes of the richest, many books have been written on this issue, and numerous academic studies have attempted to assess the nature and magnitude of inequality over time. Most studies of inequality focus on the extent of inequality within a country; this makes sense since most policies operate at this level, too. Despite the attention this issue has received, it has been constrained by the quality of data on inequality. Household surveys collected by national authorities around the world are the most readily available source of data on inequality. However, compiling and harmonizing household surveys from different countries is extremely difficult as they are not always collected consistently or frequently enough. It is also well-known that household surveys often fail to capture the top tail of the distribution, as we will discuss in more detail in a future blog.