A new working paper by Shahe Emran and Forhad Shilpi looks at the impact of increased agricultural productivity (e.g. through increased rainfall) on hired labor, wages and poverty. The paper finds a positive response of labor hours devoted to market activities as opposed to home production. Evidence also indicates that a positive rainfall shock increases per capita consumption significantly, thus implying that agricultural productivity increase played an important role in poverty reduction achieved in the last two decades in rural Bangladesh.
Today is the International Day for the Eradication of Poverty, and the theme for this year is 'Leave no one behind: think, decide and act together against extreme poverty.' Learn more, and follow on Twitter #endpoverty.
“I want my children to be able to go to school. I don't want them to suffer like me.” Little by little this dream disappears as a piece of sugar, as water that runs through your hands. The long lists of material, a simple button that is missing on a shirt, this can be the end of a dream for learning to read and write.
The problem is set to intensify in the future, as the population grows, climate change affects how we produce our food and the natural resources that help feed the world are stretched even further. We aren’t feeding the world as well as we should be in 2014. How can we do better in the future, when the world will need to feed and nourish 9 billion people in 2050?
It is said short absence quickens love, long absence kills it. This is not always true in reality. One case is remittance behavior of long-term migrants. The remittance literature argues that the amount of remittances sent by migrants to their countries of origin declines through time. Reunification of families or breakdown of family ties underpins such behavior. However, the empirical evidence is not all supportive. The passage of time does not significantly influence migrant remittance behavior. Remittances are maintained at high levels over long periods. This allays concern that economies dependent on remittances will face foreign exchange shortages and falling living standards as remittance levels fall because of reduced migration rates and decline in migrants' willingness to remit over time.
As the editors of Let's Talk Development, we want to respond to questions raised recently in social media channels about use of 2011 International Comparison Program (ICP) as well as during events and discussions about poverty and measurements during the Annual Meetings of the World Bank and IMF last week.
The World Bank currently uses an international poverty line of $1.25 (per person per day) in 2005 prices to monitor global poverty. The process draws on several data sources, including the ICP. The most recent global and regional poverty estimates cover the period 1981-2011 and are available from the recently updated Povcalnet database; they are based on data from well over 1,000 household surveys, covering nearly all developing countries. The latest estimates have been published and explained in both the recent Policy Research Report and the Global Monitoring Report, published last week.
How much social mobility is there in South Asia? The intuitive answer is: very little. South Asia is home to the biggest number of poor in the world and key development outcomes – from child mortality to malnutrition – suggest that poverty is entrenched. Absence of mobility is arguably what defines the caste system, in which occupations are essentially set for individuals at birth. Not surprisingly, the prospects for people from disadvantaged backgrounds to prosper are believed to be gloomier in this part of the world.
And yet, our analysis in Addressing Inequality in South Asia, reveals that economic and occupational mobility has become substantial in the region in recent decades. In fact, it could even be comparable to that of very dynamic societies such as the United States and Vietnam. The analysis also suggests that cities support greater mobility than rural areas, and that wage employment – both formal and informal – is one of its main drivers.
When splitting the population into three groups—poor, vulnerable, and middle class—upward mobility within the same generation was considerable for both the poor and the vulnerable. In both Bangladesh and India, a considerable fraction of households moved above the poverty line between 2005 and 2010. Meanwhile, a sizable proportion of the poor and the vulnerable moved into the middle class. In India, households from Scheduled Castes and Scheduled Tribes – considered together – experienced upward mobility comparable to that of the rest of the population.
The data and processes needed to measure global poverty and gauge improvements in the prosperity of the bottom 40% of people in each country present complex challenges and provoke considerable debate amongst poverty experts.
From the comparability of household surveys and their use in policy design to the utility of purchasing power parity data as a unifying standard for measuring the poor, the devil in global poverty analysis is in the details. It’s also vital to understand the World Bank’s recently adopted twin goals in a broader context, to see how they fit into a broader array of monitorable indicators that each come with their own specific features and insights. We must also listen to client governments and outside partners when they prefer to go beyond income to look at multidimensional social welfare functions.
Country Partnership Strategies are a central element of the World Bank Group’s effort to act in a coordinated way to end extreme poverty and boost shared prosperity. But they can be hard for the average person to navigate—some are three-volume tomes, and others can be dense with technicalities. When we make them inaccessible to the general public, we often forgo a critical opportunity to build broad support for our work.
This year, the Bank Group’s India team decided to take a more innovative approach—one that has the potential to directly engage the public and perhaps even spur others to join us in our cause. In producing the Country Partnership Strategy for India, the team opted not to create a simple PDF for the website. Instead it produced a well-designed book, flush with easy-to-understand graphics and appealing photographs. It also produced a highly interactive web application that visualizes the strategy—and tracks the strategy’s progress towards its goals over time. The tool shows exactly how individual projects along with knowledge and advisory work line up with our twin goals, and what outcomes we expect in each instance.