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Poverty

Myanmar: How IDA can help countries reduce poverty and build shared prosperity

Victoria Kwakwa's picture
© Meriem Gray/World Bank



This week, more than fifty donor governments and representatives of borrowing member countries are gathering in Nay Pyi Taw to discuss how the World Bank’s International Development Association (IDA) can continue to help the world’s poorest countries.

IDA financing helps the world’s 77 poorest countries address big development issues. With IDA’s help, hundreds of millions of people have escaped poverty. This has been done through the creation of jobs, access to clean water, schools, roads, nutrition, electricity and more. During the past five years, IDA funding helped immunize 205 million children globally, provided access to better water sources for 50 million and access to health services for 413 million people.

Pathways to Prosperity: An e-Symposium

Hanan Jacoby's picture

 

Blog #8: In building and agri boom, rural wage lift

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments. 

Real wages have risen across India in the past two decades, but the increase was especially marked among rural unskilled workers. Three drivers – falling rural female labor force participation, a construction boom, and favorable agricultural terms of trade -- help explain why unskilled rural workers fared better than their urban counterparts or workers with more education. Going forward, in light of lower agricultural prices and slower growth in the construction sector, some of the factors that contributed to the increase in relative wages for unskilled labor during this period may not be sustained over time. 

Myanmar has set a path to a bright energy future by 2030

Alan David Lee's picture
  Hong Sar/ World Bank
Photo © :  Hong Sar/ World Bank.

Kyaw San has trouble studying at night. The student from Yangon Division’s Buu Tar Suu village finds it especially difficult during the rainy season when his old solar-powered lamps cannot be charged, forcing him to study by candlelight. 
 
Win Win Nwe, a grade 5 student, also often prepares for exams by candlelight. Her family can’t always afford to buy candles, adding another obstacle to an activity many take for granted. “If we can afford candles, we buy them. If we can’t, we don’t. We struggle and do our best,” said her father Kyi Htwe.

Today, two-thirds of Myanmar’s population is not connected to the national electricity grid and 84% of rural households lack access to electricity. No power means no light, no refrigerators, no recharging phones and batteries. Small businesses can’t stay open in the evenings, and clinics cannot refrigerate medicines. Access to reliable and affordable energy is essential for a country’s development, job creation, poverty reduction and shared prosperity goals.

Rising divide: why inequality is increasing and what needs to be done

Matthew Wai-Poi's picture
In 2014, the richest 10 per cent of Indonesian households consumed as much as the poorest 54 per cent. Image by Google Maps.




Since the 1990s, inequality has risen faster in Indonesia than in any other East Asian country apart from China. In 2002, the richest 10 per cent of households consumed as much as the poorest 42 per cent. By 2014, they consumed as much as the poorest 54 per cent. Why should we be worried about this trend? What is causing it, and how is the current administration addressing rising inequality? And what still needs to be done?

Inequality is not always bad; it can provide rewards for those who work hard and take risks. But high inequality is worrying for reasons beyond fairness. High inequality can impact economic growth, exacerbate conflict, and curb the potential of current and future generations. For example, recent research indicates that, on average, when a higher share of national income goes to the richest fifth of households, economic growth slows—whereas countries grow more quickly when the poorest two-fifths receive more.

With community-driven development, Indigenous Peoples take ownership of their future

Ede Ijjasz-Vasquez's picture
Indigenous Peoples and marginalized ethnic minorities, numbering some 350 million worldwide, are among the most disadvantaged and vulnerable groups globally.
 
Disproportionately affected by poverty, they represent approximately 5% of the global population, but account for more than 10% of the world’s poor. In some regions and countries, the proportion of Indigenous Peoples among the poor soars to 60-70%.
 
Community-driven development, an approach to local development that empowers community groups with control over planning and investment decisions, is one way that the Bank is partnering with Indigenous Peoples in places as diverse as Vietnam, Nepal, and Bolivia.
 
In this video, Ede Ijjasz-Vasquez and Susan Wong discuss how the Bank’s community-driven development approach is uniquely placed to address some of the challenges that Indigenous Peoples face in their fight against poverty.
 
If you want to learn more about this topic, we invite you to discover our latest Sustainable Communities podcast.

Pathways to Prosperity: An e-Symposium

Carlos Felipe Balcazar's picture


Blog #7: Jobs, not transfers, the big poverty buster


India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments. 


The significant shift from farm work to non-farm sources of income accelerated the decline in poverty in India. Non-farm jobs pay more than agricultural labor, and incomes from both were propelled by a steep rise in wages for rural unskilled labor. While lower dependency rates and transfers - from remittances and social programs - have contributed to a reduction in poverty, they are not the primary drivers of the poverty decline between 2005 and 2012.

The 2016 Multidimensional Poverty Index was launched last week. What does it say?

Duncan Green's picture

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.

Jobs: The fastest road out of poverty

Sri Mulyani Indrawati's picture

A worker at the E-Power plant in Port-au-Prince, Haiti. © Dominic Chavez/World Bank

For the first time in history, the proportion of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series, I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030:
 good governance, gender equality, conflict and fragility, preventing and adapting to climate change, and, finally, creating jobs.

Good jobs are the surest pathway out of poverty. Research shows that rising wages account for 30 to 50% of the drop in poverty over the last decade. But today, more than 200 million people worldwide are unemployed and looking for work — and many of them are young and/or female. A staggering 2 billion adults, mostly women, remain outside the workforce altogether. In addition, too many people are working in low-paying, low-skilled jobs that contribute little to economic growth. Therefore, to end poverty and promote shared prosperity, we will need not just more jobs, but better jobs that employ workers from all walks of society.

Pathways to Prosperity: An e-Symposium

Gaurav Datt's picture
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Blog #6: India, the driver of growth for Bharat

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments.
 
How has India’s recent growth impacted poverty in the country? We look at how India’s rapid structural transformation over the past three decades —the shift from agriculture to industry and services, and from rural to urban areas – is changing the relationship between economic growth and poverty reduction.


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