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Poverty

May 9, 2014: This Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 30 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, Bangladesh, India, NepalPakistan, and Sri Lanka. For regular #SouthAsiaDev updates, follow us on Facebook and Twitter

East Asia and Pacific countries can do better in labor regulation and social protection

Truman Packard's picture

Those unfamiliar with the fast growing emerging economies of East Asia are likely to think that governments in these countries let market forces and capitalism roam free, red in tooth and claw. That was certainly my impression before coming to work in the region, and generally that held at the outset of our work by the group of us that wrote a new World Bank report “East Asia Pacific At Work: Employment, Enterprise and Wellbeing” .

The report shows just how wrong we were. We could be forgiven this impression—many of us had come from assignments in Latin America and the Caribbean or in Europe and Central Asia, where the distortions and rigidities from labor regulation and poorly designed social protection are rife, and where policy makers cast envious looks at the stellar and sustained employment outcomes in East Asia.

Well, it turns out that although they came relatively late to labor regulation and social protection, many governments in the region have entered this arena with gusto. We were surprised to find that, going just by what is written in their labor codes, the average level of employment protection in East Asia is actually higher than the OECD average.

Playing with and Understanding Purchasing Power Parities

Kaushik Basu's picture

A fascinating feature of purchasing power parity (PPP) is more people hold an opinion on it than know what it means. This was in ample display last week, when the Global Office of the International Comparison Program (ICP), hosted by the World Bank, announced the latest PPP data for the world, pertaining to 2011. 

Putting aside complexities, PPPs may be viewed as an estimate what one US dollar can buy in different countries. In case a dollar in Ghana can buy three times what it can buy in the United States, then a person who earns 1,000 dollars each month in Ghana is said to earn 3,000 in terms of ‘PPP-adjusted dollars’. 

The role of changes in income distribution

Jos Verbeek's picture

There is a lot of public discussion about Thomas Piketty’s book on capital and its implications for inequality. His work strikes a chord with many of us because it outlines a future where basically your own or inherited wealth matters and where wage income and apparently your human capital does not matter that much for your income generation. So how do we escape such a one-sided and unequal world? Well, maybe one way is to understand better the interaction between growth, changes in the income distribution, and their implications for shared prosperity.  

Rights and Welfare Economics

Shanta Devarajan's picture

ML028S19 World Bank Some 135 countries have constitutional provisions for free and nondiscriminatory education for all. Seventy-three countries guarantee the right to medical services. And 41 countries have either enshrined the right to water in their constitutions or have framed the right in national legislation.  All of these actions are aimed at protecting the rights of poor people. 

Yet, it is poor people who are losing out on access to these services.  In Mali, whereas almost everyone has access to a primary school, and 67 percent from the richest quintile complete primary school, only 23 percent from the poorest quintile do.  The percentage completing higher levels of education is in the single digits. In rural India, in the period since the Right to Education act was passed, student learning outcomes in public schools have been declining.  Equatorial Guinea, with a per-capita income of $20,000, has a child mortality rate of 118 per 1,000 births, comparable to that of Togo with a much lower per-capita income.  As a result of intermittent (or nonexistent) water supply through networks, poor people in South Asia and Africa have to buy water from vendors at 5-16 times the meter rate.

Is Public Transport Affordable?

Julie Babinard's picture
When planning transport systems in developing countries, one of the main challenges is to evaluate the proportion of income spent by poorer households on transport as well as in understanding transport patterns in relation to residential location, travel distance and travel mode. High real estate prices in urban centers often force low-income households in developing countries to live farther out in the periphery, with consequences on the way urban agglomerations develop and with subsequent effects on the levels of motorization, congestion, local air pollution, physical activity and the expansion of urban poverty.

Changing Mindsets, Empowering People

LTD Editors's picture

The following post is a part of a series that discusses 'mind and culture,' the theme of the World Bank’s upcoming World Development Report 2015.

When it comes to development, one size doesn’t fit all. It is about mindsets that can be transformed to see and do things differently. Taking a cue from this, The Hunger Project believes in empowering people to end their own hunger versus providing them with service delivery.  The Let’s Talk team caught up with John Coonrod, Executive Vice President, The Hunger Project, to know more about building self-reliant communities.

Rana Plaza One Year On

Ellen Goldstein's picture

Lessons on Governance from Bangladesh’s Garment Industry


One year ago today, in the outskirts of Bangladesh’s capital city, an eight-story garment factory collapsed of its own weight, killing 1,130 young workers and injuring thousands more.  The ghastly photos of bodies trapped in the Rana Plaza wreckage provoked outrage in the wealthy world, targeted largely at global retailers who purchased garments there.  North American and European consumers called for measures to ensure safe conditions and humane treatment for Bangladeshi garment workers, mostly young women from poor families in remote rural areas.  Many called for a boycott of the big-box retailers and of the Bangladeshi products they sell.

I had just moved from Bangladesh to Europe at the time, and my advice to friends who asked was: “Go ahead and buy those skinny jeans or that tank top if you want.  It’s the right thing to do for Bangladesh and its young workers.”

“Will you take me for a 1,000 pesos?”— Making sure public transport subsidies really target the poor

Camila Rodriguez's picture
Also available in: Español

Follow the authors on Twitter: @TweetingCamila and @shomik_raj
 

A commuter in Bogotá, Colombia
(World Bank)
When analyzing the modernization of Bogota’s extensive bus system, we read a lot of technical analyses on public transport business models, risks, incentives, etc. But in a city where 11,6% of the population lives below the poverty line, social reality trumps all theoretical studies. In a new report entitled The promise and challenges of integrating public transportation in Bogotá, experts from Embarq estimate that as many as 23% of bus users sometimes plea for discounted rides, asking the bus driver: “Will you take me for 1,000 pesos?”

This situation points to one of the toughest challenges faced by public transport systems: how to reconcile financial sustainability and social inclusion? On the one hand, if fares do not cover operational costs, systems need subsidies to survive, which can pose serious financial and political risks. In some cases, transport systems operating with inadequate financial resources may experience system deterioration, safety problems and service curtailment. On the other hand, if fares are set to reflect the real price of transport services so that operators can recoup their costs without subsidies, then the poor are often priced out. This is exactly the problem that Bogotá is currently struggling with, despite its well-deserved reputation for innovation and excellence in public transport: fares of its state-of-the-art Transmilenio Bus Rapid Transit (BRT) system are pegged at cost-recovery levels that may price out many of the city’s poorest. Recent studies show that the lowest income households in Bogotá (socioeconomic strata 1, 2, 3 according to the local classification) are already devoting 20-30% of their total income to transportation, spending more than US$2 daily.  The situation may be even worse when Bogota’s city-wide public transit reform (the Integrated Public Transport System or SITP) is fully implemented, as bus drivers, with the adoption of smart cards, may no longer be able to offer unofficial discounts to passengers at their discretion, a common practice in the traditional system.

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