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Poverty

Area C: An Untapped Resource that Could Turnaround the Palestinian Economy

Orhan Niksic's picture

 Arne Hoel

The Palestinian economy is stalling. Growth dropped sharply in 2013, unemployment is on the rise, and tax revenues for the Palestinian authority are falling significantly short of what is needed to finance even recurrent expenditures. That’s the bad news that many are well aware of. There is however a potential source of good news that currently lies dormant, but if tapped could both stimulate growth and transform the Palestinian economy.

For Vietnam, Trade Competitiveness Much More than a Slogan

Luis Blancas's picture

Click to enlarge the infographic.Vietnam is one of the world's development success stories. It is undeniable. 

Between 1990 and 2010, Vietnam grew at an average annual rate of 7.4 percent—one of the world’s top five growth performance records, anywhere, over the same 20-year period. In the process, the incidence of poverty has declined dramatically, from 58 percent in 1993 to about 10 percent today. Nowadays Vietnam is no longer considered a low-income country: it has attained lower-middle income status.

Yet this successful economic transition has also generated a number of challenges. Chief among them is that of sustaining economic growth going forward.
 

Time to Boost IBRD as well as IDA

Homi Kharas's picture

2013 World Bank / IMF Annual Meetings When the negotiations for IDA17 were wrapped up in December, there was great relief that IDA deputies were supportive of an IDA expansion despite their own significant budget difficulties. As part of that package, the World Bank Group itself pledged to give IDA $3 billion from profits.

This was a generous gesture by the World Bank (albeit a drop in the bucket of total aid), but how good was it for the global development effort? Consider the following—net disbursements of official grants and concessional loans (the category where IDA flows appear) have expanded from $39 billion per year in the 1980s (in constant 2005 dollars) to $85 billion in 2010 and 2011. In contrast, official non-concessional lending (the category where IBRD and IFC flows appear) has stayed steady. The latter was $15 billion in the 1980s and $22 billion in 2010/11. This picture is even more striking when considering the amounts in terms of recipient GDP. Grants and concessional flows to low income countries have gone from 3% of their GDP in the 1980s to 13% today, while non-concessional flows to lower middle-income countries (excluding India and China) have gone from 0.7% to 0.3% of their GDP. In fact, from 2000 to 2009, non-concessional flows to lower middle- income countries (and to developing countries as a whole) were negative, implying that developing countries repaid more to official development agencies than they received in gross disbursements.

Is Economic Growth Good for the Bottom 40 Percent?

Mamta Murthi's picture

Lessons from the recent history of Central Europe and the Baltics

Economic growth has returned to Central Europe and the Baltics. With the exception of Slovenia, all countries are expected to see positive growth in 2014 - ranging from a tepid 0.8% in Croatia, to more respectable growth rates of 2.2% in Romania and 2.8% in Poland, to highs of 3-4.5% percent in the Baltic Republics. Europe, more broadly, is also turning the corner and is expected to grow at around 1.5%.

Amidst this much welcome growth, however, one question remains: will economic growth be good for the bottom 40 percent and can they expect to see their incomes grow?

The Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 25 Tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Afghanistan, Bhutan, Bangladesh, India, Maldives, Nepal, Pakistan, Sri Lanka. 

How Fair is “Fair Compensation” Under India’s New Land Acquisition Act?

I.U.B Reddy's picture

The much anticipated Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (“the Act”) has just come into force in India on January 1st, 2014. Unlike the replaced 1894 legislation, this act addresses the rehabilitation and resettlement of those who depend on land, in addition to land owners. As emphasized in its title the new act places a greater emphasis on transparent processes at various stages: for example, through its mandatory social impact assessments, public hearings, and dispute resolution mechanisms.  
 
The other key emphasis in the act’s title refers to a new compensatory mechanism. The new act now provides for up to two times market value, against one time in the previous act and this figure is then doubled by applying a one hundred percent “solatium” against 30% in the previous act (additional compensation). Though people get more compensation under new  act, an increase in multiplier does not address the fundamental question of determining “market value”  in a country where registered values under-represent land purchase price to evade high stamp duties.  The challenge is exacerbated in rural areas where there are fewer land transfers, and therefore fewer registered sales deeds to use as reference points. In such situations, a valuation that is perceived to be more “fair” can be found only through consultations and dialogue, as demonstrated by two case studies from World Bank financed projects in India:

Thinking Twice Before Having Children in Poland

The first thirty minutes of Elzbieta’s day are the most precious.
 
Between five and five-thirty in the morning is the only time she gets to herself, which she uses to work out, or read a book. After that, the grind of everyday life in Poland’s countryside takes over. She cooks, washes, cleans, irons, and cooks for her seven children, aged two to fifteen. And it doesn’t stop until late at night.
 
Elzbieta’s family and other families with multiple children are rather unique in Poland, which has one of the lowest fertility rates in the world. When asked why they didn’t have children in a recent country-wide survey, 71 percent of Poles said unstable employment and difficulties in balancing work and family life were big factors.
 
Their fears are not without reason -- with each child, the risk of poverty increases tremendously -- families with three or more children are more likely to be in the lowest income group, with 26.6 percent of households with four children living in poverty in Poland, according to the Main Statistical Office.
 
Even buying clothes for children is a daunting task, in such cases. “We have started participating in lotteries organized by local clothes stores, with no luck so far,” Elzbieta said. “We do it because taxes for children’s clothes and shoes were recently raised, and families like ours are most affected. Families with children are just not given a chance.”
 
Elzbieta talked to me as she picked flowers in a nearby field, while watching her five-year old daughter. The flowers she collected would later be dried on a bench outside her rural home and used for making herbal teas for the family. Even buying tea is a financial challenge for Elzbieta’s family, whose income, a total of PLN 3,280 (about $1,100) comes from social assistance for children, including a disabled child (PLN 2,000) and her husband’s income – after the payment of a home renovation loan – of PLN1, 280.
 

The Face of Poverty in Europe and Central Asia

 
But hospitality is not to be spared.

The Importance of Sour Cherries in Serbia

Caterina Ruggeri Laderchi's picture

“What a shame you cannot be here in two weeks,” our driver said, as we entered Toplica District in Southern Serbia, the poorest part of the country. It is an open countryside of rolling hills, with thick forests on the horizon. Next to the road, neat rows of bushes and low trees appear, dotted with red.

Sour cherries.

“In two weeks, everything will be red,” he said. “And what do you do with all these cherries?” I asked, half dreaming of one of my mother’s best tarts. 

Export to Russia, came the reply. A river of sour cherries flowing from this small corner of Serbia, across Europe and into Russia is a less interesting image than my mother’s spectacular tart, but in a country where signs of the ongoing economic crisis abound, this is good news.

Every field we looked at had new plantings alongside more established trees. A new parasite is apparently threatening these cherry orchards, and foreign experts are working with local growers to control it. Still, it seems clear that people are investing in the business, and this means jobs – though only temporary, tough and lasting long hours of cherry picking, these jobs are a blessing for those who have little else to rely on.

Ivan and his wife Daniela, in the village of Vlahovo, are a case in point - and the face of poverty in the region.
 

The Face of Poverty in Europe and Central Asia

Poverty Drives Daily Choices in the Kyrgyz Republic

There is nothing worse than having to wonder if you will be able to afford tomorrow's meal. Or the day after's.

But for millions of poor in the Kyrgyz Republic, it is routine - and their every day reality. The World Bank interviewed several families in the country recently to showcase the real face of poverty in the region, where the poor spend significantly more to stay warm and buy enough food to survive than in other parts of the world because of the region's extremely long and cold winters.

Watch the full documentary on poverty in Europe and Central Asia here.

Dreaming about a better future in Armenia

The World Bank recently interviewed several families in Armenia to depict the hardships people face when they cannot earn more than $5 a day per person. The country faces long, harsh winters and paying to stay warm and eat enough to survive the cold can quickly eat into the poor's meager incomes.

The Face of Poverty package aims to show how tough life can be for these families and their belief that education is the singular way out of poverty for their children.

Watch the full documentary here.


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