Syndicate content

Poverty

Finishing the job of ending poverty in South Asia

Hartwig Schafer's picture
This Bangladeshi woman was born in poverty. With the right kind of education, life in poverty quickly became a story from the past for her. Credit: World Bank

"I have a four-year-old son back in my village. I want to make a better life for him,” says Sharmin Akhtar, a 19-year-old employee in one of Dhaka’s many flourishing garment factories.

Like thousands of other poor women, Sharmin came down to Bangladesh’s capital from her village in the country’s north to seek a better job and create a more prosperous future for her family—leaving behind a life of crushing poverty.

Today, as we mark End Poverty Day 2018, it’s important to note that Sharmin’s heartening story is one of many in Bangladesh and the rest of South Asia, where economic growth has spurred a dramatic decline in extreme poverty in the last 25 years.

And the numbers are striking: In South Asia, the number of extreme poor living on less than $1.90 a day dropped to 216 million people in 2015 from 275 million in 2013 and 536 million in 1990.

Even more remarkable, South Asian countries experienced an increase in incomes among the poorest 40 percent of 2.6 percent a year between 2010-2015, faster than the global average of 1.9 percent.

On a global scale, the highest concentration of poor shifted from South Asia to Sub-Saharan Africa in 2012. And India is likely to be overtaken, if it has not already been, by Nigeria as the country with the most people living in extreme poverty.

It’s worth thinking about how far South Asia has come – but remaining clear-eyed about how far we must go to finish the fight against extreme poverty.

Indeed, it is increasingly clear that poverty is more entrenched and harder to root out in certain areas, particularly in rural areas and in countries burdened by violent conflict and weak institutions.

Estimates for 2015 indicate that India, with 176 million poor people, continued to have the highest number of people in poverty and accounted for nearly a quarter of the global poor.

True, the extreme poverty rate is significantly lower in India relative to the average rate in Sub-Saharan Africa. But because of its large population, India’s total number of poor is still large.

And while there has been a substantial decline in the numbers and rate of people living below $1.90 in South Asia, the number of people living on less than $3.20 has declined by only 8 percent over 1990-2015 because of the growing population.

In 2015, 49 percent of the population of South Asia were living on less than $3.20 a day, and 80 percent were living on less than $5.50 a day.

Why the World Bank is adding new ways to measure poverty

Maria Ana Lugo's picture

The 2018 Poverty and Shared Prosperity Report shows how poverty is changing and introduces improved ways to monitor our progress toward ending it.

The landscape of extreme poverty is now split in two. While most of the world has seen extreme poverty fall to below 3 percent of the population, Sub-Saharan Africa is experiencing extreme poverty rates affecting more than 40 percent of people. The lamentable distinction of being home to the most people living in extreme poverty has shifted, or will soon shift, from India to Nigeria, symbolizing the increased concentration of poverty in Africa.

What’s behind the slowing pace of poverty reduction in Tajikistan?

Alisher Rajabov's picture


Tajikistan achieved high rates of economic growth during the 2000s (about 8% per year, on average), which doubled GDP per capita and helped reduce poverty by almost half between 1999 and 2009. But over the following decade, the rate of poverty reduction began to slow – between 2012 and 2017, poverty fell by about 7.5 percentage points.
 
While employment and growing income levels continued to slowly drive poverty reduction, a fall in the value of remittances in 2014 began weighing on the country’s performance. Since then, the poverty rate has fallen by about just 1 percentage point per year.
 
So, despite continued growth, why has the pace of poverty reduction slowed in Tajikistan?

Incomes of the poorest are growing in 3 of every 4 economies

Maria Ana Lugo's picture

In much of the world today, the incomes of the poor are growing. The World Bank calls this concept shared prosperity, defined as the average annual growth in income or consumption of the poorest 40 percent (the bottom 40) within each country. So, if shared prosperity in a country is positive, the poor are getting richer.

In addition, the shared prosperity premium is defined as the difference between the annual income or consumption growth rate of the bottom 40 and the annual growth rate of the mean in the economy. A positive premium indicates that the bottom 40 are getting a larger share of overall income in the economy.

In Africa, technology and human capital go hand in hand

Sheila Jagannathan's picture
Photo: eLearning Africa
Rwanda’s progress from the devastating civil war two decades ago to one of the most rapidly developing African countries is a remarkable narrative on development.

Twenty-four years ago, the country was torn apart by civil war and one of the worst genocides human history has known; one in which more than a million people were killed in only three months.

Now, with years of sustained economic growth—predicted to be around 6.5% this year, the country is well on the way to achieving many of the ambitious development goals set out in the Rwandan Government’s ‘Vision 2020.’ This strategy seeks to move away from agriculture and rely instead on services and knowledge as the new engines of economic growth, with the objective of achieving middle-income status in the near term.

I had the privilege of getting a snapshot view of Rwanda’s success during the few days I spent in the country last month attending elearning Africa 2018, the continent’s largest conference on technology-assisted learning and training. The choice of Kigali as the location for this year’s conference is highly symbolic: Rwanda has put education and skills at the heart of its national strategy, and can send a powerful message to other African countries about the importance of investing in human capital to support overall development.

Accelerating progress towards human capital and financial inclusion

Jim Yong Kim's picture
© World Bank
© World Bank

Last week, more than 11,000 delegates from the World Bank Group’s member countries –public and private sector attendees--gathered at our Annual Meetings in Indonesia this month to discuss how we can accelerate progress toward our twin goals: to end extreme poverty by 2030 and boost shared prosperity among the poorest 40 percent around the world.  

Disruptive technologies create opportunities for development but they also put those goals at risk. Our discussion this past week focused on the changing the nature of work – the topic of our World Development Report this year. While technology and automation are doing away with some jobs, innovation is also creating new occupations, and launching career fields that didn’t exist a few years ago. Those who are prepared for this future will have many opportunities to achieve their aspirations. Those who are not will be left behind. 

Three things to know about women’s land rights today

Anna Wellenstein's picture
 

Gender equality is central to ongoing global efforts to reduce extreme poverty and improve livelihoods for all. An important part of gender equality is ensuring women’s equal access to – and secure rights to – land and properties. 

Strengthening women’s land tenure security improves their rights and their dignity. Importantly, improving women’s access to and control over economic resources also has a positive effect on a range of development goals, including poverty reduction and economic growth.

What do we know about women’s land rights globally?  

Although gains have been made to increase legal protections for women to use, manage, own and inherit land, in practice, women often aren’t able to realize their rights to the land on which they live, work and depend for survival.

In a video blog marking the International Day of Rural Women, World Bank Director Anna Wellenstein and Senior Land Administration Specialist Victoria Stanley discuss three “headlines” one may encounter on women and land:
  1. Globally, there is an understanding that reducing poverty requires secure land tenure, and that women’s share in that is important.
  2. Researchers and policymakers don’t have enough gender-disaggregated data at the country level to understand the true scope of the challenge of women’s land rights, but efforts are underway to collect more data and gain a better understanding.
  3. There are strong pilots and initiatives of women themselves to gain equal access to land and improve tenure security, but now these efforts need to go to scale.

To drive broader development impact and affect lasting change, the World Bank joins global and regional partners – Landesa, Global Land Tool Network (GLTN), UN-Habitat, Habitat for Humanity, and the Huairou Commission – and local women and communities in preparing an advocacy campaign that aims to close the gap between law and practice on women’s land rights.

Watch the video and read our blog series to learn more about women and land.

Planet of the Apps: Making small farms competitive

Julian Lampietti's picture
 
Photo: Shutterstock

Apps have revolutionized everything from getting to work, keeping in touch with faraway friends, and dating (though the jury’s still out on this one). Can apps be the salvation of the world’s farms that are under two hectares in size – a group that most people think is going the same way as humans in Planet of the Apes?

Economies of scale in agriculture (or any other sector) occur when the average cost per unit of production decreases as farm size increases and conventional wisdom suggests that farms need to get bigger to be competitive. And this is exactly what is happening in richer countries, though the trend is less clear in poorer countries.

Giving people control over their data can transform development

Nandan Nilekani's picture
Suguna, one of the many women who has benefited from Aadhaar– her digital identity. © Bernat Parera
Suguna, one of the many women who has benefited from Aadhaar– her digital identity. © Bernat Parera

In Para village of Rajasthan, India, Shanti Devi’s livelihood depends on wages earned through MNREGA (India’s rural employment guarantee program) and a pension for her and her disabled husband. Eight years ago, a postman would deliver this cash to any household member he found. Sometimes she did not receive the full amount because a relative would claim her money. Even when she did, women like Shanti Devi did not have a secure way to save it because she was unbanked. Opening a bank account needed an individual identification card which many women lacked.

Today, Shanti Devi’s life has changed because of Aadhaar – her digital identity. All of her cash benefits are transferred directly into her bank account, which she was able to open with her Aadhaar number and her fingerprint. She can make and receive digital payments, with any person or business, even without a smartphone. With her ID, she is now fully empowered to exercise her rights, access services and economic opportunities. Most of all, she is afforded the dignity to assert her identity.  

Glass Half Full: Improving water and sanitation services in Tajikistan

Ede Ijjasz-Vasquez's picture
Located on the western tip of the Himalayas, Tajikistan has abundant fresh water resources in its rivers, lakes, and glaciers. Yet, access to improved drinking water, and to sanitation connected to a functioning sewerage system, are among the most severe and unequally distributed services in the country.

One in four households in Tajikistan does not have access to sufficient quantities of water when needed. Service is interrupted for long periods because of breakdowns in water supply infrastructure. Even when households have access to water, there are significant challenges with regard to the availability and continuity of water supplies.
 

Unsafe water, sanitation, and hygiene (WASH) conditions have significant adverse effects on well-being, particularly for rural residents, the poor, and children. In this video, Ede Ijjasz-Vasquez (@Ede_WBG), Senior Director of the World Bank’s Social, Urban, Rural and Resilience Global Practice and Emcet Oktay Tas (@emcettas), Social Development Specialist, discuss the report Glass Half Full: Poverty Diagnostic of Water Supply, Sanitation, and Hygiene Conditions in Tajikistan.



Launched in 2017, the report presents comprehensive evidence on the coverage and quality of WASH service conditions, along with their diverse well-being impacts. It also identifies institutional gaps and service delivery models that can inform future policies and investments in the WASH sector.

Since its inception, the evidence presented in the report has generated a sense of urgency that inspired the government, civil society, and the international community to accelerate their actions toward addressing WASH deprivation in Tajikistan.

As highlighted in the video, the report was prepared in collaboration with multiple development partners, including government agencies, the World Health Organization (WHO), UNICEF, and the Tajikistan Water and Sanitation Forum (TajWSS), which includes over 50+ local stakeholders working in the sector.


Pages