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Poverty

Phenomenal development: New MOOC draws economic policy lessons from South Korea’s transformation

Sheila Jagannathan's picture

The World Bank Group’s Open Learning Campus (OLC) launched a free Massive Open Online Course (MOOC) today — Policy Lessons from South Korea’s Development — through the edX platform, with approximately 7,000 global learners already registered. In this MOOC, prominent representatives of academic and research institutions in South Korea and the United States narrate a multi-faceted story of Korea’s economic growth. 
 
Why focus on South Korea? South Korea's transformation from poverty to prosperity in just three decades was virtually miraculous. Indeed, by almost any measure, South Korea is one of the greatest development success stories. South Korea’s income per capita rose nearly 250 times, from a mere $110 in 1962 to $27,440 in 2015. This rapid growth was achieved despite geopolitical uncertainties and a lack of natural resources. Today, South Korea is a major exporter of products such as semiconductors, automobiles, telecommunications equipment, and ships.

Source: World Development Indicators, 12/16/2016

Making growth inclusive: Challenges and opportunities

Vinaya Swaroop's picture
Many advanced economies are experiencing rising income inequality which has raised questions about the benefits of globalization.  Given the growing backlash against perceived job losses associated with the free movement of goods and people particularly in the US and Europe, economists and other development practitioners are renewing their efforts in making economic growth more inclusive and have focused their attention on how to share prosperity equitably.

A review of How China Escaped the Poverty Trap by Yuen Yuen Ang

Yongmei Zhou's picture

We chose to highlight this book for the World Development Report (WDR) 2017 Seminar Series as its focus on institutional functions rather than forms and on adaptation resonates strongly with the upcoming WDR 2017.

The first takeaway of the book, that a poor country can harness the institutions they have and get development going is a liberating message. Nations don’t have to be stuck in the “poor economies and weak institutions” trap.  This provocative message challenges our prevailing practice of assessing a country’s institutions by their distance from the global best practice and ranking them on international league tables. Yuen Yuen’s work, in contrast, highlights the possibility of using existing institutions to generate inclusive growth and further impetus for institutional evolution.

For rural Afghan women, agriculture holds the potential for better jobs

Izabela Leao's picture
Photo: National Horticulture and livestock project

 “… If women in rural areas had the same access to land, technology, financial services, education and markets as men, agricultural production could be increased and the number of hungry people reduced by 100-150 million …”
                                                      
Agriculture Sector: Creating Opportunities for Women
In Afghanistan, agriculture continues to be the backbone of the rural economy – about 70% of the population in rural areas is engaged in on-farm activities. At the same time, large share of the employment generated in non-farm and off-farm sectors, such as manufacturing, are also closely linked to agriculture and food-processing.

Women’s participation in the labor market has been generally low in rural Afghanistan. For the last decade, the country had one of the world’s lowest rates (19%). In recent years, however, the rural labor market in Afghanistan has experienced an impressive influx of women, increasing the rate to 29%. Yet, a large share of the working-age female in rural Afghanistan (71%) remains out of the labor force. In 2013/14, out of 5.2 million women of age 14 or above, only 1.5 million (29% of total) were in the labor force, about one-third of that 1.5 million workers remained unemployed, and the other two-third were employed – which accounts for only 22% of total rural employment (Figure 1). Of the employed female workers, majority are employed in agriculture (11%) and livestock (59%).

Weekly wire: The global forum

Darejani Markozashvili's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Measuring the Information Society Report 2016
International Telecommunication Union

The period since the conclusion of the World Summit on the Information Society (WSIS) in 2005 has seen rapid growth in access to and use of information and communication technologies (ICTs) throughout the world. However, the potential impact of ICTs is still constrained by digital divides between different countries and communities. The International Telecommunication Union (ITU) documents the pervasiveness of ICTs and the extent of digital divides between regions and countries through its annual ICT Development Index (IDI), which aggregates quantitative indicators for ICT access, ICT use and ICT skills in the large majority of world economies.

Cellphones have lifted hundreds of thousands of Kenyans out of poverty
Vox

In Kenya, a so-called “mobile money” system allows those without access to conventional bank accounts to deposit, withdraw, and transfer cash using nothing more than a text message. It turns out that using cell phones to manage money is doing more than just making life more convenient for the Kenyans who no longer have to carry paper notes. It’s also helping pull large numbers of them out of poverty. That’s the central finding of a new study published in Science Thursday, which estimated that access to M-PESA, the country’s most popular mobile money system, lifted hundreds of thousands of Kenyans above the poverty line. By allowing people to expand the networks they draw from during emergencies, manage their money better, and take more risks, the mobile phone service provides a substantial boost to many of the most socioeconomically vulnerable members of society.

#2 from 2016: The 2016 Multidimensional Poverty Index was launched last week. What does it say?

Duncan Green's picture

Our Top Ten blog posts by readership in 2016. This post was originally published on June 14, 2016. 

This is at the geeky, number-crunching end of my spectrum, but I think it’s worth a look (and anyway, they asked nicely). The 2016 Multi-Dimensional Poverty Index was published yesterday. It now covers 102 countries in total, including 75 per cent of the world’s population, or 5.2 billion people. Of this proportion, 30 per cent of people (1.6 billion) are identified as multidimensionally poor.

The Global MPI has 3 dimensions and 10 indicators (for details see here and the graphic, right). A person is identified as multidimensionally poor (or ‘MPI poor’) if they are deprived in at least one third of the dimensions. The MPI is calculated by multiplying the incidence of poverty (the percentage of people identified as MPI poor) by the average intensity of poverty across the poor. So it reflects both the share of people in poverty and the degree to which they are deprived.

The MPI increasingly digs down below national level, giving separate results for 962 sub-national regions, which range from having 0% to 100% of people poor (see African map, below). It is also disaggregated by rural-urban areas for nearly all countries as well as by age.
 

#4 from 2016: What is your challenge? Creating Jobs and Livelihoods for the bottom 40%

Parmesh Shah's picture
A farmer harvests mung beans in Cambodia's northern province. Our Top Ten blog posts by readership in 2016. This post was originally published on February 12, 2016.  

Extreme poverty in the world has decreased considerably over the past three decades. In 1981, more than half of citizens in the developing world lived on less than $1.25 a day. This rate has dropped dramatically to 21% in 2010. Moreover, despite a 59% increase in the developing world’s population, there were significantly fewer people living on less than $1.25 a day in 2010 (1.2 billion) than there were three decades ago (1.9 billion). However, 1.2 billion people still live in extreme poverty—an extremely high figure, so the task ahead of us remains herculean.

Among the poor, 78% live in rural areas, and 500 million of these are small farmers. Of these, 170 million are women farmers. Globally, 2.5 billion are dependent on small farms as a source of livelihood and employment.  Agriculture contributes one third of GDP in Africa and more than 65% of the workforce depends on this sector. There has been significant progress in increasing agricultural production and expansion of livelihood and economic opportunities in rural areas. There are about 40 million enterprises, from very small to medium-sized, involved in agribusiness. 

Being open-minded about universal basic income

Ugo Gentilini's picture

In a world riddled with complexity, the simplicity of universal basic income grants (BIGs) is alluring: just give everyone cash. Excerpts of such radical concepts have been put in practice across the globe, with the launch of a pilot in Kenya, results from India, a coalition in Namibia, an experiment in Finland, a pilot in the Unites States, a referendum in Switzerland, and the redistribution of dividends from natural resources in Alaska and elsewhere.

A year of building sustainable communities in 12 stories

Andy Shuai Liu's picture
What are some of the key issues that will shape global development in 2017?

​From addressing the forced displacement crisis to helping indigenous communities, and from implementing the “New Urban Agenda” to enhancing resilience to disasters and climate change, one thing is clear: we must step up efforts to build and grow economies and communities that are inclusive, resilient, and sustainable for all—especially for the poor and vulnerable.
 
In the timeline below, revisit some of the stories on sustainable development that resonated the most with you last year, and leave a comment to let us know what you wish to see more of in our “Sustainable Communities” blog series in 2017.

Tony Atkinson (1944 – 2017) and the measurement of global poverty

Francisco Ferreira's picture

Sir Anthony Atkinson, who was Centennial Professor at the London School of Economics and Fellow of Nuffield College at Oxford, passed away on New Year’s Day, at the age of 72. Tony was a highly distinguished economist: He was a Fellow of the British Academy and a past president of the Econometric Society, the European Economic Association, the International Economic Association and the Royal Economic Society.  He was also an exceedingly decent, kind and generous man.

Although his contributions to economics are wide-ranging, his main field was Public Economics. He was an editor of the Journal of Public Economics for 25 years, and his textbook “Lectures on Public Economics”, co-authored with Joe Stiglitz in 1980, remains a key reference for graduate students to this day. Within the broad field of public economics, Tony published path-breaking work on the measurement, causes and consequences of poverty and inequality – from his early work on Lorenz dominance in 1970, all the way to his more recent joint work with Piketty, Saez and others on the study of top incomes. Over his 50-year academic career, he taught, supervised and examined a large number of PhD students, some of whom came to work at the World Bank at some point in their careers.


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