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Poverty

Solving the puzzle of extreme poverty

Daniel Nikolits's picture
Have you ever tried to solve a problem without much context? How did it go?

Here’s a simple example: Imagine you’re working on a complicated jigsaw puzzle without using the picture on the box top as a guide. How successful do you think you’ll be? After some trial and error, you’d probably give in to frustration, bring out the box top, and make easier work of the puzzle.

What if the puzzle you were trying to solve was to end extreme global poverty? How would you put the pieces together?

The “nini” youth of Latin America: Out of school, out of work, and misunderstood

Halsey Rogers's picture


The popular image of the out-of-school, out-of-work youth of Latin America is not generally a positive one.  For one thing, the term used to label them – “ninis” – defines them in the negative.  It comes fromni estudian ni trabajan”, the Spanish phrase for those who "neither study nor work.” 
 

Data gaps: The poor typical household surveys miss

Isis Gaddis's picture

Standard measures of poverty and inequality are calculated at the household level—assuming resources are pooled and shared equally among its members. The World Bank Group’s new global poverty estimates, for example, are based on consumption per person—the average consumed by individuals within the household.
 
If consumption per person falls below the new global poverty line of $1.90 per day, everyone in the household is considered “poor.” If consumption is above the poverty line, no one in the household is considered “poor.” This measure is also used to monitor progress toward the first target of the newly agreed Sustainable Development Goals, to end extreme poverty by 2030.
 

Microfinance needed in Iraq more urgently now than ever

Nadine Chehade's picture
Najaf, Iraq - Shutterstock l photo story

How can development practitioners promote economic development for parts of the Arab world affected by conflict and fragility? The Consultative Group to Assist the Poor (CGAP) has featured various solutions in a recent blog series on financial inclusion during crises. These blogs highlight the fact that although conflict, violence, and uncertainty make development difficult, solid financial infrastructure for small-scale lending can help people weather a crisis or, in other words, support their economic resilience.

On the road to middle class: A look back and a look ahead for Ghana

Vasco Molini's picture

 A look back and a look ahead for Ghana
 
I have vivid memories of my first trip to Ghana. It was in July 2006 and I was in the country to do a research on Ghanaian farmers. It was in Accra, where I watched my team, Italy, win the FIFA World Cup final against France. Other than being a lucky charm to me, I thought Accra was a nice and safe town but,I felt that it had the potential to grow.

When I came back seven years later, I was pleasantly surprised by the changes. The city was dotted with new buildings, new roads, and had a really buoyant atmosphere. Of course, Accra is not representative of the whole country, but according to a recent report that Pierella Paci and I presented in October, growth and poverty reduction have been widespread in the country. 
 
Now you may ask as to how Ghana was able to achieve this. In our report, Poverty Reduction in Ghana: Progress and Challenges, we show that sustained and inclusive growth in the last twenty years has allowed Ghana to more than halve its poverty rate, from 52.6% to 21.4% between 1991 and 2012.( Note: For comparing 1991 and 2012 poverty rates for both absolute and extreme poverty, the study used the 1999 poverty line. Official poverty rates use the new poverty line re-based in 2013.) The impact of rapid growth on poverty has been far stronger in Ghana than elsewhere in Sub-Saharan Africa. Indeed, until 2005 for every 1% increase in GDP in Ghana, the incidence of poverty fell by 2.5% — far above the Sub-Saharan average of 1.6%.

Accelerating economic growth and job creation in Bangladesh

Sanjay Kathuria's picture
Instructor and Students at the Bangladesh Korea Technical Training Center, Chittagong
Instructor and Students at the Bangladesh Korea Technical Training Center, Chittagong.
Credit: Mahfuzul Hasan Bhuiyan

Bangladesh has a major opportunity to address one of its most pressing development challenges: creating 20 million new jobs over the next decade.  And the trade agenda will be a centerpiece of any strategy that seeks to address this challenge.
 
Join me for a Facebook Q/A chat on January 28 to discuss this and other findings from the recently released report Toward New Sources of Competitiveness in Bangladesh co-authored with Mariem Mezghenni Malouche.
 
Below are some 4 highlights from the report, which we will be discussing. I look forward to your questions and a vibrant discussion!
 

  1. Bangladesh will need to expand its linkages with neighboring countries such as China and India as well as other Asian countries like Japan and South Korea.  Not only are these very large markets, they are also potential sources of greater foreign direct investment.  What are the critical steps that will allow this to happen?  How can the recently signed Motor Vehicles Agreement between Bangladesh, Bhutan, India and Nepal help?  What are the barriers to Bangladesh’s venturing into new markets?

  2. Bangladesh will need to gradually diversify its export base into new product areas while also strengthening its position as the second-largest garment producer in the world (after China).  Our report explores the critical challenges that could allow this to happen.  In your view, what challenges lie ahead if Bangladesh tries to diversify its exports?  Can you name some prospective industries (for diversification)? What will be the role of foreign direct investment in this diversification?  What kind of reforms are needed to attract more domestic as well as foreign direct investment?

  3.  

How joint land titles help women’s economic empowerment: the case of Vietnam

Wael Zakout's picture
Photo credit: CIAT/Flickr
Vietnam is my first love working for the World Bank. It is the first country I worked in when I joined the Bank back in 1994.
 
At the time, the country was still opening up to the outside world, and the Bank had just set up a small office there. I recently returned to Vietnam after 15 years, this time as the Bank’s Global Lead for Land. I saw a completely different country: while the old city charm is still there, Hanoi has transformed to the point that it is really difficult to recognize… as if I had landed in Japan, China, or any other Southeast Asian country.
 
The airport used to be one gate; now, it is a modern airport not much different from any airport in Western Europe or the United States. I remember that, when I worked in Vietnam in the mid-90s, GDP per capita was averaging US$200, and around 50% of people lived in extreme poverty. Today, GDP per capita has soared to about US$2000, while extreme poverty has dropped to around 3% according to the US$1.9/day extreme poverty line... An impressive achievement in less than 20 years.
 
My trip to Vietnam had the goal of helping the government modernize and automate the land administration system. In the early 90s, the country launched an ambitious reform program to transform the land use model from communal farming to individual household ownership by breaking up the communal land structure and distributing land to individual households. This reform was then credited with changing Vietnam from a net importer of rice to one of the largest rice exporters in the world in only a few years.
 
In accordance with the Land Law of 1993, the first Land Use Certificates (LUCs) issued under the program were in the name of the “head of household”, i.e. in the name of men only. Later on, the Vietnamese government, with support from the World Bank, strove to change things around by issuing LUCs bearing both the wife’s and the husband’s names.

(Almost) middle class

Oscar Calvo-González's picture

The group of Latin Americans still vulnerable to fall back into poverty has moved tantalizingly close to middle class status in the past decade. The so-called vulnerable, who have escaped poverty but have not yet made it to the middle class, remain the largest socio-economic group in Latin America. In fact, their share of the population increased slightly (38 percent in 2013, up from 35 percent in 2003). But, importantly, their living conditions improved significantly in the same period. The incomes of the vulnerable are today much closer to those of the middle class – even if their growth in incomes was not enough to cross over to the middle class.

Source: SEDLAC (World Bank and CEDLAS). Note: The curves report the kernel density estimate of the logarithm of family per capita income. They are calculated using pooled harmonized data from 17 countries. In order to analyze the same set of countries every year, interpolation was applied when country data were not available for a given year. 

The "starchitect" of the poor: the keys to Alejandro Aravena's work

Luis Triveno's picture

Pritzker Prize winner Alejandro Aravena’s Elemental firm designed the “half a good house”, which includes gaps between the houses for residents to fill according to their own needs.
Cities are the world’s factories of progress and prosperity. Eighty-percent of all production takes place in our urban areas; it’s where most economic opportunities are. People know it, and this is why five million people migrate to cities all over the world. Every month.
 
The problem is that most cities are not prepared to absorb these numbers. The tragic result is chaos, inequality and environmental damage. One clear manifestation of the mismatch between people’s demand for opportunities to prosper and the inability of cities to maximize the benefits of agglomeration while minimizing the costs of congestion is the omnipresence of slums throughout the world. Today, one billion people live in slums; worse still, many of those settlements are in areas highly vulnerable to natural disasters. By 2030, this figure is expected to double.
 
To absorb this ever-increasing demand for affordable urban housing, would require creating, in effect, a new city capable of housing 1 million people – every week during the next 15 years. Governments are already overwhelmed. The private solution of reducing the size of dwellings and relocating them to the peripheries of cities has produced economic and social segregation, which has become a ticking bomb for unrest.
 
During the past 12 years, the Chilean architect, Alejandro Aravena, 48, has offered solutions to the global housing crisis that are so creative, speedy, budget-conscious and scalable that he has been awarded the 2016 Pritzker Prize, considered the Nobel for architecture. His work—and the prize—challenge architects to envision innovative buildings not just for businesses and other wealthy clients but for all the people.

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