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Poverty

Starting life off on the wrong foot

Markus Goldstein's picture
I was recently at the GW conference on the economics & political economy of Africa where I saw an interesting paper by Richard Akresh, Emilie Bagby, Damien de Walque, and Harounan Kazianga on Burkina Faso.    Akresh and co. make another compelling argument for focusing on early childhood (and indeed, in utero).   Kids whose household has a shock during this critical period are less smart – and this leads to them going to school less. 

Evidence for better-informed decisions and more inclusive policies

Simona Palummo's picture
 Arne Hoel/World Bank
Photo: Arne Hoel/World Bank
Why do we need evidence?
 
The sustainable development agenda adopted by world leaders in September 2015 set a series of ambitious goals to end poverty, ensure equal economic growth, and tackle climate change by 2030. Rising inequalities, especially in developing countries, remind us that if we want to achieve these goals, we need more inclusive policies which consider the needs of the most vulnerable and disadvantaged populations.
 
Policymakers are constantly trying to identify better solutions to address global challenges, and that implies considering different policy options, and making a choice that can benefit each group of the population, which sometimes is extremely difficult. Even well-designed policies might have adverse impacts, particularly on the poor and the most socially excluded groups. That is why we need evidence to support better policy decisions, and that’s when Poverty and Social Impact Analysis (PSIA) gets in the picture. What is exactly PSIA? The World Bank defines it as “an approach to assess the distributional and social impacts of policy reforms on the well-being of different groups of the population, in particular the poor and vulnerable.”

Tending to the most vulnerable in Bangladesh

Yoonyoung Cho's picture
Bus lift for persons with disabilities that I saw when I first arrived in Madison, Wisconsin.
Photo Credit: Ride Metro Bus

When I first visited the college town of Madison, Wisconsin (USA) in 2000, what first stood out wasn’t its beautiful university campus or its famous brat and beer combo. What caught my attention was a public bus which had the equipment to lift a wheelchair. “Beep, beep, beep,” a sound would signal as the bus would lower and extend a ramp to aid people in wheelchairs to board the bus.

At that time, I had never seen anything like this bus and thought, “Wow! Why can’t we have such services back in my country?” No such buses existed in Korea where I grew up. But more than just the bus, I remembered thinking that I rarely noticed people with special needs in Korea. In hindsight, the lack of support and consideration for people with disabilities and ignorant attitudes were also reasons why people with disabilities were rarely seen in public.

Addressing needs through action                                                                                 
In 2014, I became the task leader for Bangladesh’s Disability and Children at Risk (DCAR) project. The difficult situation faced by persons with disabilities in the country was a reminder of the contrast I had experienced in that college town. Accessible transportation was not the only service lacking for people with disabilities. There was a lack of access to health facilities for checkups and treatment along with a short supply of therapy equipment and wheelchairs. A lack of respect towards persons with disabilities by the wider public was also a challenge. Moreover, the project was not delivering the results that it expected to achieve.

Higher education for the 21st century in action

Joe Qian's picture
The graduating class of the University of Moratuwa’s Department of Textile and Clothing Technology. Photo Credit: Isuru Udara

Imagine a school that teaches knowledge and provides hands-on training. A place where students express confidence in their skills, and are excited to make a difference in their future jobs. A bastion of confidence and optimism, where 100% of graduating students have jobs lined up before graduation.
 
Sounds too good to be true? I found this haven at the University of Moratuwa’s Department of Textile and Clothing Technology, supported by the Higher Education for the 21st Century Project (HETC), which is designed to modernize education by its increasing its quality and relevance. 24-year-old Malaka Perera, who is graduating next month, told me how the program has helped him build a foundation for his career. “The program taught me how to deal with people, along with communications and problem solving skills that I used during my internship. As a result, finding a job was quite easy.”
 
Sri Lankans have enjoyed the benefits of broad education access for decades, which has allowed the country to build human capital to rise and become a middle income country. However, as a country with rising aspirations in an increasingly globalized world and competitive region, the quality and relevance of its education system is key for the country to maintain its edge and reach new heights.

The Nepal Earthquakes of 2015: One Year On

Takuya Kamata's picture
Nepal Earthquakes: One Year Anniversary

One year ago today, the first in a series of massive earthquakes rocked Nepal. Nearly 9 thousand people lost their lives in the disaster. Over 20 thousand people were injured – many critically. As many as 450 aftershocks have shook the country since.

In all, the earthquakes upended the lives of 8 million Nepalis – nearly a third of the population. The devastation was wide-spread: the Government of Nepal led an extensive exercise to assess the damages and losses, which a Post Disaster Needs Assessment estimated in the order of US$7.1 billion. As it turned out, the poorest and the most vulnerable communities were hit the hardest. The government estimates that the disaster pushed nearly 1 million Nepalis back into poverty.

From private homes to public infrastructure; and farms, businesses and historical monuments – hardly anything was spared in the trail of destruction. But from the government’s own assessment, rural housing stood out as one area of greatest need, in excess of US$1.2 billion. Early on, the government estimated that over half a million homes were destroyed.
 Beneficiaries themselves are primarily responsible to reconstruct their homes. Homes will be reconstructed in their original locations unless resettlement is unavoidable

In June last year, exactly two months after the first earthquake, 56 governments and international organizations came together in Kathmandu and pledged US$4.1 billion in reconstruction assistance. The World Bank Group was among them. At the International Conference on Nepal’s Reconstruction, the Bank Group offered a financial package of up to US$500 million. 

Soon after the earthquakes, the Government of Nepal promised NRs. 200,000 (approximately US$1,900) in assistance to each family rendered homeless by the calamity. The Emergency Housing Reconstruction Program, supported by the World Bank and the governments of Japan, the United States, Switzerland and Canada, is designed to make good on that promise.

Does child sponsorship pay off in adulthood?

Paul Glewwe's picture
An International Study of Impacts on Income and Wealth

International child sponsorship has long been a common way for people in industrialized countries to connect with the poor in developing countries. We estimate that there are at least 9 million internationally sponsored children today, which means that there may be up to 100 million people today in families that are directly affected by child sponsorship (9 million sponsored children and their family members, and 9 million sponsors and their family members)  Sponsorship typically involves payments of $30-$40 per month to an NGO to help support an overseas child's schooling, health, and other needs.  Some faith-based programs also place a strong emphasis on the spiritual mentorship of sponsored children.  But the question remains--does it work? Our research shows that sponsorship translates to higher education levels and future earnings for formerly sponsored children.

Negative interest rates as a fishhook

Kaushik Basu's picture




The State of the Global Economy


[Based on the opening remarks made at the Chief Economists’ Roundtable on “Growth and Inclusion in Turbulent Times”]
 
It is time for the annual Spring Meetings. Many of the world’s finance and development ministers, along with business and civil society leaders, are here is Washington and have been meeting with us at the World Bank this week to discuss what we can do to rise up to these challenging times. Most conversations have come to land on two important questions, namely: What is happening around the world in different regions? And: what can we do to stem the slowdown and disunity around the right policy way ahead?

Why investing in forests is money—and time-- well spent

Tone Skogen's picture
Togo_Andrea Borgarello / World Bank

It is widely acknowledged that reducing emissions from deforestation could bring about one-third of the greenhouse gas emission reductions we need by 2030 to stay on a 2-degrees trajectory. But protecting and managing forests wisely does not only make sense from a climate perspective.  It is also smart for the economy. Forests are key economic resources in tropical countries. Protecting them would increase resilience to climate change, reduce poverty and help preserve invaluable biodiversity.

Here are just a few facts to illustrate why forests are so important. First, forests provide us with ecosystem services like pollination of food crops, water and air filtration, and protection against floods and erosion. Forests are also home for about 1.3 billion people worldwide who depend on forest resources for their livelihood. Locally, forests contribute to the rainfall needed to sustain food production over time. When forests are destroyed, humanity is robbed of these benefits. 

The New Climate Economy report shows us that economic growth and cutting carbon emissions can be mutually reinforcing. We need more innovation and we need more investments in a low carbon direction. This requires some fundamental choices of public policy, and the transformation will not be easy. However, it is possible and indeed the only path to sustained growth and development. If land uses are productive and energy systems are efficient, they will both drive strong economic growth and reduce carbon intensity.

Already, the world's large tropical forest countries are taking action. 

For forests, a change in attitude in favor of indigenous communities

Myrna Kay Cunningham Kain's picture
Girl. Panama. Gerardo Pesantez-World Bank
In 2015, more than 500 million hectares of forests were held by indigenous peoples.  Despite the increase in forest area designated for and owned by indigenous peoples in recent decades, governments still administer 60 percent of these forest areas while firms and private individuals administer 9 percent. Pressure exerted by indigenous peoples over the past few decades has led to a 50 percent increase in forest areas recognized as being owned or designated for use by indigenous communities. The greatest strides have been made in Latin America and the Caribbean, where indigenous peoples control 40 percent of forest land. Similar trends have been observed in other regions across the globe.  

For the indigenous peoples who have always lived in the forests, these areas represent their space for cultural reproduction, food production, and spiritual security. For governments and companies, forests contain major assets for food production, economic development, security, climate change mitigation, carbon sequestration, water, minerals, and gas extraction. Added to these divergent views on forest ownership and use is the proliferation in recent decades of conflicts over territorial control and forest resources. Growing international demand for commodities (minerals, hydrocarbons, soybeans, and other basic agricultural products) has fueled greater economic activity linked to the development of forest resources. However, this progress has come at a price: adverse environmental impacts, the reclassification of spaces, and the dispossession of the rights, interests, territories, and resources of indigenous peoples (ECLAC 2014).  

In this context, a question arises: What is contributing to the behavioral change, both at the country and global levels, which leads us to conclude that a reversal in the situation has begun?

How Latin America’s housing policies are changing the lives of urban families

Luis Triveno's picture
Photo: Pierre-Yves Babelon/Shutterstock
In an effort to harness the benefits of urbanization and improve the living conditions of the urban poor, Latin American countries have experimented with housing subsidies. Now that the region has several decades of experience under its belt, it is time to look back and ask: Have subsidies worked? What kind of impact have they had on the lives of lower-income residents? Moving forward, how can cities pay for ongoing urban renewal?

To address those questions and share their experiences, officials in charge of designing and implementing national housing policies in eight countries (Argentina, Bolivia, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru) recently met in Washington DC, along with representatives from the World Bank, Cities Alliance, the Urban Institute, and Wharton's International Housing Finance Program.

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