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Private Sector Development

Have Innovation and Entrepreneurship Found Solutions for Affordable Housing?

Joe Qian's picture

The recently elected government has recently announced an ambitious goal of eliminating slums in India in its most recent five year plan. Will this be a possibility? If you ask the construction companies, the answer is yes. A number of entrepreneurs and enterprises have embarked on new initiatives to provide affordable housing called such as Tata and its construction of Shubh Griha north of Mumbai.

With the increased rate of economic growth over the last few years, housing developers have tended to focus on the higher end luxury developments causing property prices to soar; I was astounded that luxury apartment homes in Mumbai cost the same as they do in New York and London. As demand for these properties have fallen due to the global financial crisis and increased interest rates, the focus on lower cost housing has increased due to a larger market coupled with acute shortages of housing in urban India.

China's presence on Fortune's Global 500 list grows, despite economic crisis

James I Davison's picture

Another example of China’s respectable growth, despite the global economic crisis, is apparent in this month’s Fortune magazine, with its Global 500 list of the world’s largest companies.

The Resilience of Bangladesh's Economy May Again be Tested This Year

Zahid Hussain's picture

The Bangladesh economy entered FY10 in a position of strength, notwithstanding some pretty tough global circumstances. Good recovery in agriculture, a sustained growth in exports and remittances, and a steady growth in services helped achieve an estimated overall growth of 5.9 percent in FY09, compared with 6.2 percent in FY08. A decline in international commodity prices driven by the global recession and an improvement in domestic food supplies brought inflation down from 10 percent in FY08 to an estimated 7 percent in FY09. Rice prices have remained stable too at nearly 40 percent below the peak reached in April, 2008. The economy has shown reasonable stability in terms of most other macroeconomic indicators. The external current account has been in a large surplus; the exchange rate has been stable; foreign exchange reserves have reached record high levels of nearly $7.5 billion; fiscal balances have been contained; and private credit growth has remained decent.

This is all good news but it doesn’t mean Bangladesh goes totally unscathed by those tough global circumstances.

Philippines offers insight into future of mobile banking and the poor

James I Davison's picture

It’s now evident that people in developing countries have access to the internet and mobile phones like never before, which (as I recently wrote about) may lead to increased economic growth, job creation and good governance. A huge piece of this broad puzzle is mobile banking, and utilizing mobile phones to bring financial services to people who wouldn't otherwise have access to banks ("unbanked").

A new study, released last month by the Consultative Group to Assist the Poor (CGAP) and GSMA, estimates that there are more than one billion people worldwide who are unbanked, yet have access to mobile phones. And by 2012, that number is expected to grow to 1.7 billion people.

Education and Finance in Africa

Shanta Devarajan's picture

At a recent conference that brought together African Finance and Education ministers, the keynote speaker, Tharman Shanmugaratnam, finance minister (and former education minister) of Singapore gave a beautiful speech about Singapore's experience that contained some potentially difficult and controversial messages for Africa.

Will the Nano Fulfill the Promise of Mobility in Developing Countries?

Joe Qian's picture

Much in the same way the Ford Model T revolutionized transportation in the United States and the Volkswagen Beetle did in Germany, the Tata Nano (small in Gujarati) seeks to do the same for India and the rest of the developing world, with millions still seeking to realize dreams of four wheel mobility. Will the Nano become a resounding success and revolutionize the concept and accessibility of the car, or will it cause increased problems and growing pains in its mission to provide transportation to the broader public?

With a price starting at $2,200 dollars including taxes and fees, the Nano significantly undercuts the current cheapest car in India by almost half and may open the door to aspiring drivers around the world as the most affordable automobile in history (when accounting for inflation). The market potential is seemingly unlimited as only 0.7% of Indians owned automobiles in 2007.

However, economic development has already caused an explosion in the number of motor vehicles perpetuating increased fatalities due to accidents, standstill traffic, and smog filled cityscapes.

Its founder, Ratan Tata says that his inspiration is derived from poignantly watching the way entire families are transported on motorcycles complete with a rider, passenger, along with two children hanging onto the back. He noted the terrible toll in road deaths involving two-wheelers and called for a safer four-wheeled vehicle that will transport families in a dignified manner.

Mongolia's growing shantytowns: the cold and toxic ger districts

David Lawrence's picture

 

Children breathe thick, toxic smog from thousands of stoves in Ulaanbaatar's ger districts, which are home to 60 percent of the city's population.
There’s no capital city anywhere in the world with a housing problem like Ulaanbaatar, Mongolia. Imagine a city of one million people. Then imagine 60 percent of them living in settlements without water, sanitation or basic infrastructure, often in traditional Mongolian felt tents, known as gers. Then imagine these people relying on wood- or coal-burning stoves for cooking and heating, with fuel costs eating up 40 percent of their income. Then imagine the discomfort of having to get up in the middle of the night when it’s -35 degrees Celsius to go to the bathroom – outdoors.

Worst of all, imagine you and your children breathing the thick, toxic smog from thousands of stoves 24 hours a day, seven days a week. Unfortunately, this is not imagination, this is the real situation for over a half million people living in the ger districts of the capital. Not a pretty picture.

A South African puzzle

Sandeep Mahajan's picture

In recent months, the external sector in South Africa has strengthened in ways that are somewhat perplexing. The strengthening has partly to do with weak import demand due to the economic slowdown.  But the surprising aspect has been sustained inflows of foreign portfolio investment in South African domestic securities.  Just as the news on the real sector and fiscal balances has gotten worse, somewhat paradoxically foreign investors’ appetite for South African securities has grown.

Remittances in Bangladesh: Determinants and 2010 Outlook

Zahid Hussain's picture

Co-authored with FARRIA NAEEM

Remittances have emerged as a key driver of economic growth and poverty reduction in Bangladesh, increasing at an average annual rate of 19 percent in the last 30 years (1979-2008).

Revenues from remittances now exceed various types of foreign exchange inflows, particularly official development assistance and net earnings from exports. The bulk of the remittances are sent by Bangladeshi migrant workers rather than members of the Bangladeshi Diaspora. Currently, 64 percent of annual remittance inflows originate from Middle Eastern nations.

Robust remittance inflows in recent years (annual average growth of 27 percent in FY06-FY08) have been instrumental in maintaining the current account surplus despite widening a trade deficit. This in turn has enabled Bangladesh to maintain a growing level of foreign exchange reserves.

The Important Role of Ready Made Garments to Bangladesh’s Export Earnings

Abul Basher's picture

Bangladesh’s export earnings are mostly determined by the export of readymade garments (RMG) to North American and European countries with 75% of total export earning coming from this sector. Quite understandably, the economic crisis in those countries unnerves us.

Fortunately, the clothing sector has remained more or less unscathed by the global crisis even as the trepidation among the entrepreneurs, policy makers and economists is still very high. During the last fiscal year (2007-08), the overall growth of the export of RMG was 16.16% which increased to 23.48% between July 08 and January 09 of the current fiscal year.

Readymade garments are the largest export industry and determine the dynamics of total export earnings for Bangladesh RMG is still growing at a satisfactory rate. There is no strong indication of any negative impacts of the global economic crisis on RMG as of today, but the future continues to be unpredictable.


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