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Poverty

Do changes in the CPI provide a reliable yardstick to measure changes in the cost of living?

Andrew Dabalen's picture

This blog is the latest in a series of posts reflecting on the findings in the 2016 World Bank Poverty in a Rising Africa report, released in its entirety this month. We look forward to your questions and comments regarding this and other blogs in the series.

The consumer price index (CPI) is the most commonly used measure of inflation in the world, and Africa is no exception. But do CPIs reliably reflect the actual change in the cost of living? And if not, how does this affect our understanding of how poverty has evolved in the region?

The CPI is derived from a fixed and supposedly representative basket of goods and services provided in the domestic market to measure a cost-of-living index. To keep up with changing consumption patterns, the basket weights need to be updated regularly. But often they are not. Most get updated every decade or even less frequently, so they become less and less representative of the items that consumers actually purchase.

Four things you can do during Earth Hour to fight energy poverty

Andy Shuai Liu's picture



On March 19, millions of people across the globe will turn their lights off for one hour. For many, Earth Hour is a time to recognize and acknowledge the array of challenges our world faces on energy, climate, and poverty.

Well over a billion people still live without electricity. Almost 3 billion still use air-polluting and carbon-emitting solid fuels (such as wood, coal and dung) for cooking and heating.
 
Some of us have seen these numbers so many times, they no longer seem as alarming as they should. Their impact has worn thin... So to recognize this reality for millions of our fellow human beings and to raise awareness of energy poverty, here are a few things you can do for Earth Hour on Saturday, March 19:

2006: Bringing libraries to every classroom, and mobile telephones and internet to every town, in rural Mongolia

Jim Anderson's picture

Today we look at 2006, the 16th year of the 25 year partnership between Mongolia and the World Bank. The economy continued to grow, checking in at 8.6% for the year, as did industry’s share of GDP which peaked that year at 43%. 

The year 2006 was a banner year for the World Bank’s program in Mongolia, with several iconic projects approved that year, starting with one in rural education. 

An institutional and governance review of budget expenditure for education found that the pupil-per-teacher ratio is higher in urban schools. Among other findings, the Public Expenditure Tracking Survey (PETS), on which the report was based, illustrated that students in rural schools obtained significantly lower test scores than those from urban schools, consistent with “a pattern where the more disadvantaged — and therefore lower-performing students — systematically fail to advance their schooling and drop out at a younger age in the rural areas.”  The need to provide rural children better education opportunities, which had been a theme for years, had further evidence.

How to help communities protect their lands

Rachael Knight's picture
Kenya Land Alliance facilitates a meeting
with the community of Chara, in Tana
River county

The scale of the global land grab is staggering. While international actors have made excellent progress establishing complaint boards, issuing principles for responsible investment, and securing commitments from multi­national corporations, these protections do not chart a clear course of action that communities can follow to protect their lands and natural resources before an investor arrives seeking land. 

The problem is that once an investor arrives to “consult with” a community, it may be too late.  After a deal has been made in capital city conference rooms or in clandestine meetings between chiefs and company representatives, communities are forced on the defensive. At this point, all they can do is try to mitigate the negative impacts of investors' plans rather than assertively proclaiming their legal rights, demanding that the investor abide by FPIC principles, and then choosing whether to reject the investment or accept it on terms that ensure that the community benefits and prospers.

Meanwhile, many of the “investors” grabbing land are national or local elites unaccountable to international  institutions  –  the cousin of the President or the nephew  of the Minister – who operate with complete impunity, protected by powerful connections to government, the judiciary and the police. Such individuals do not answer to shareholders or complaint boards, and are not the least bit concerned with principles of corporate social responsibility. If a community’s land claims  are unrecognized or undocumented – and if the community’s leadership is weak or corrupt – the easier it is for these elites to manipulate their power to claim what land they want.

To have a fighting chance against elites’ bad­faith actions, communities must proactively take steps to know and enforce their rights, prevent their leaders from transacting land without community approval, and seek legal recognition of their land claims.  And they must do so before elites and investors arrive. 

Is it harder for children from poor families in rural China to attain education?

Yan Sun's picture
China has achieved unparalleled success in economic growth and poverty reduction since initiating market reform in 1978. But in recent decades, increasing inequality has become a central policy issue (Figure 1), and the goal of ‘harmonious development’ has become a focus of Chinese policy makers. It remains a challenge for China to share its prosperity more equitably.
 
Figure 1: Poverty and inequality in rural China

Climate change: from negotiations to action

John Roome's picture
Photo: UNFCCC


It has been nearly three months since 195 nations reached a historic agreement at COP21 in Paris to combat climate change and set the world on a path to a low carbon and more resilient future.

And in a little over a month, heads of state and governments will gather in New York to sign the Paris Agreement. Countries will then have one year to ratify the agreement, which will enter into force after it is ratified by at least 55 countries, representing at least 55 percent of global greenhouse gas emissions.

As we approach the signing of the agreement, it's time for countries and companies to seize the momentum from Paris and move from celebration of a landmark deal to action.

So what needs to happen?

A fresh look at the global financial crisis and poverty trends in the EU

Doerte Doemeland's picture


When development practitioners such as ourselves think of poverty, the EU is not what comes to mind first. While it is true that average incomes are higher in Europe than in most regions of the world, it is also true that the 2008 global financial crisis had a huge impact on the welfare of the most vulnerable in many countries in the region.

‘I matter’: giving unemployed young Papua New Guineans a second chance

Tom Perry's picture

Young people account for almost half of Papua New Guinea’s population and comprise a large part of the urban poor. In the capital, Port Moresby, an increasing number of young people are leaving school without the necessary skills for entry-level jobs.

The Urban Youth Employment Project (UYEP) provides disadvantaged young people (aged between 16 and 35) in Port Moresby with life skills and employment training to increase their chances of finding long-term employment, also the motivation to make a fresh start in life. To help meet immediate economic needs, the project is also providing temporary employment opportunities.

Progress and persistence in gender equality: Reflections on the WDR 2012

Daniel Nikolits's picture

Today marks the fifth International Women’s Day since the publication of the World Development Report 2012 on “Gender Equality and Development.” That WDR showed us that gender equality is both an important development objective in its own right, as well as smart economics. On the occasion of International Women’s Day, I sat down with the co-Directors of the WDR 2012, Ana Revenga and Sudhir Shetty. They shared some of their reflections on the origins of the report, its successes and impact, the challenges that remain, and why a focus on gender in development work still remains important today.  


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