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Social Development

OECD-World Bank Innovation and Growth Book Now Available

Ihssane Loudiyi's picture

Innovation is crucial in long-term economic growth, even more so in the aftermath of the financial and economic crisis. Making innovation-driven growth happen requires action in a wide range of policy areas, from education and science and technology, to product and labor markets and trade. The OECD and the World Bank are joining forces to work more closely on innovation, particularly insofar as this issue is a crucial factor in the success of development policy, notably in middle-income economies.

How Can Sri Lanka take Advantage of its Demographic Dividend?

Susrutha Goonasekera's picture

Much has been said about Sri Lanka’s uniqueness among developing countries; no one can deny that the oldest population pyramid outside of wealthy countries.

The demographic transition implies an aging of the population, but before old-age dependency becomes an issue, there is an intermediate period of a demographic dividend when a larger proportion of the population will be at the prime working age. The success to managing the long-term age-dependency effects of the demographic transition is to use this intermediate period of demographic dividend to conserve resources for future use and to plan for a more cost-effective strategy to deal with the future age burden. This will allow older people to live a happy productive life.

The challenge is to develop a strategic approach that takes advantage of the demographic dividend period both in terms of making strategic decisions for future cost-effectiveness and save resources for future use.

How to Help Tame Scary Adaptation Funding Estimates

Tom Grubisich's picture

Such intimidating numbers: To adapt to destructive climate change, developing countries need US$30-$50 billion annually between now and 2020, and US$100 billion annually thereafter, according to U.N. and World Bank estimates.

By the end of the U.N.-sponsored climate negotations wrapping up this week in Copenhagen, developed nations are likely to pledge more.  But most of the funding gap is not likely to be closed.

A ray of hope: What if all hundred finalist projects of DM2009's "Climate Adaptation" competition were to be financed?  Their total cost would be about US$17.5 million.

These early-stage projects are as solid as any adaptation proposals anywhere in the developing world.  They all survived rigorous scrutiny to be among the 6 percent of more than 1,700 applications that made it to the DM finals.  They focus on helping poor and other vulnerable people who are those most affected by climate change.  Most of the projects are designed to be replicated widely, so they have the potential of helping millions of people threatened by flooding, drought, and rising sea levels -- and also protecting many ecosystems throughout the globe.

The Secretariat of the U.N. Framework Convention on Climate Change (UNFCCC) could help to make this happen by recommending that up to US$17.5 million of any new adaptation funding for developing countries be earmarked for the DM finalists.

The issue is not billions or even hundreds of millions of dollars -- just a tiny fraction of the lowest estimated cost of adaptation in developing countries.  Could developed nations, who are responsible for most of the global warming that is hitting the poorest countries hardest, say anything but yes to that?

 

Innovation: An Un-Level Playing Field for Developing Countries

Tom Grubisich's picture

Innovation has always been crucial to economic growth, and never more so than in this era of globalisation.  But globalisation can create innovation winners and losers.  The new book Innovation and Growth: Chasing a Moving Frontier, published jointly by the Organisation for Economic Co-Operation and Development (OECD) and the World Bank, describes how innovation -- not principally from newer science but the penetration of older, infrastructure-intensive technologies like improved water source and sanitation -- puts developing countries on an un-level playing field compared to developed countries.

A book launch and seminar are being held today from 9:45 a.m. to 12:45 p.m. at the World Bank Main Complex (Room MC2-800).  It will feature the book's editors -- Pier Carlo Padoan, Secretary-General and Chief Economist, OECD; Carlos A. Primo Braga, Director, Poverty Reduction and Economic Management Network (PREM), World Bank; Vandana Chandra, Senior Economist, PREM and Development Economics (DEC), World Bank; and Deniz Eröcal, Coordinator, Enhanced Engagement with Non-Member Economies, OECD.

This blog will have more on this event, but here's an excerpt from the book's Introduction summarizing the innovation dilemma:

"In the past few decades, as the international flows of trade, capital and labour have expanded across the global marketplace, the competitiveness and prosperity of high-income economies has come to rely increasingly on their innovative capability. Unlike OECD countries, developing countries’ competitiveness and prosperity remains largely tied to their endowments of natural resources. Their governments have been less successful in fostering technological innovation. Moreover, low productivity levels continue to constrain their competitiveness in the global market.

 "The unique nature of innovative activity and the growing interconnectedness of the world economy call, however, for greater attention to the interplay of openness and technological innovation not only in OECD countries, but also in developing economies.  Innovation systems increasingly rely on 'open' platforms and collaboration side by side with competition. At the same time, the geography of innovation is being redrawn as economic interdependence grows, emerging economies accumulate immaterial assets, and modern communication networks redefine opportunities for 'leapfrogging.' The experience of the so-called 'BRICs' (Brazil, Russia, India and China) is illustrative in this context.

After Copenhagen: DM2009 Winner Has a Message for World Leaders

Leonardo Rosario (beneath banner in photo) of the Philippines was a winner at DM2009 with his Trowel Development Foundation's project to protect subsistence fishing communities from climate change, while also improving their production and marketing and restoring mangrove forests.  Here's his message for leaders at the international climate talks in Copenhagen.

How I wish the finalists of DM 2009 could have presented their “100 Ideas to Save the Planet” to international leaders gathered at the U.N. Climate Conference in Copenhagen.

What those leaders would have seen would have been not only passion and commitment but also solutions that were innovative, pragmatic, and cost-efficient.

It’s too late to go to Copenhagen.  But Copenhagen is only the beginning of the search by world leaders for climate adaptation solutions that are worthy of their support. 

The DM2009 finalists’ projects meet all the objectives of that search.  They enhance and strengthen people’s capacity to manage climate risks and adapt to changing climate patterns, and even to build community resiliency among the most vulnerable – Indigenous Peoples, women and children, marginalized farmers, and small-scale fishers.

Building disaster-resilient communities may seem far-fetched to skeptics, but it is do-able.  With innovative, community-based management of natural resources as well as the synergy of ancient and traditional knowledge systems combined with modern technology, a quarter of the DM finalists showed how it can be done.  The main objective of the projects was to show how food, which is most important in times of disaster, can be secured.  The techniques included climate-adapted production systems, participatory plant breeding, introduction of “Family EarthBox,” bioculture systems, cultivation of drought-resistant rainforest tree food, and merging traditional indigenous production practices with environment-friendly modern farming technologies.

DM2009 as 'One of Washington's Best-Kept Secrets'

Tom Grubisich's picture

We've been exchanging emails with many of the hundred DM2009 finalists to get their collected thoughts on the competition.  Many of them had good things to say about the event and its programs, and how Development Marketplace could better their projects' chances, even if they weren't among the 26 winners.  But sprinkled among the positive assessments was some criticism.

Ben Stein, who heads a reverse-osmosis desalinization project to provide drinking water for 48 households on Rah Island in the Pacific nation of Vanuatu, praised Development Marketplace for "starting to understand what social entrepreneurship is," and singled out the knowledge exchange sessions.  But Stein says something important was missing: "People.  The World Bank is not a very 'people-friendly' or public place.  As there are no more Peoples' Choice awards [given in previous years' competitions], it appears that most Bank employees aren't willing to spend the time to look at the DM.  Perhaps future DMs should be held at a more public venue and really marketed to the interested public, or find some way to make the Bank a more accessible place and really market the event to the interested public.  Also, there was so much talk about social media, social marketing, and networking one would think that everyone in DC knew about DM, but in fact it seems to have been one of DC's best-kept secrets."

How to Make a Billion Dollars Work

Parmesh Shah's picture

Large-scale public services and expenditure, especially those specifically designed for the poor, are vulnerable to leakages. Whether it is access to quality health care or education, clean water or entitlements under a development scheme; the poor face many barriers in accessing the public services and programs that are intended for them.

Social accountability interventions aggregate citizen voice and strengthen their capacity to directly demand greater accountability and responsiveness from public officials and service providers. Such interventions include the use of tools such as community scorecards, citizen report cards and social audits.

In 2007, three social accountability interventions were introduced in India in public programs on a pilot basis, representing budgets that run into the billions of dollars. With social accountability as the common denominator, three different states with three different service delivery contexts have been able to precipitate a series of impacts in just one year.

Copenhagen Climate Talks -- Viewed From Nigeria

What do the international climate change negotiations in Copenhagen mean to the many millions of people who will be most affected by global warming?  DM2009 winner Nnaemeka Ikegwuonu (with microphone in photo below) has some on-the-ground answers from Nigeria.  Ikegwuonu's novel radio drama project will help educate up to 15 million small farmers in southeastern Nigeria whose livelihoods are affected by torrential, soil-eroding rains aggravated by climate change.

1.    Given an opportunity to address world leaders in Copenhagen, I would tell them that climate change is global but the solutions are local. To this end education is the key to long-term climate adaptation. While education on climate change mitigation and adaptation is well advanced in developed nations of the world, it is relatively unknown among billions of people at the base of the pyramid in developing countries who ironically have the least means to cope in the event of climate change- induced disaster.  I would tell world leaders that efforts to tackle climate change must first dwell on education because it breaks all forms of barrier, poverty included.  Education opens the mind and motivates the quest for results. An educated person is empowered to make better choices.  Furthermore, people cannot be developed but can only be given options through a system of education to develop themselves.

2.    Climate change is relatively unknown in Nigeria. This is because people have not been properly educated or informed.  Rural people consider climate change to be a short-term weather change but fail to realize that the change is not short term but long term. Indeed some conversations centered on mitigation and adaptation are being taken at Federal government level in Nigeria, but the outcome of these conversations is still relatively unknown to Nigerians. However, the present Copenhagen COP 15 has drawn small media attention to climate change, but this has not sparked up a debate which Nigerians are used to on such an important issue.  More media attention is desired.

 

The Poor and the Middle Class

Eliana Cardoso's picture

Start counting the poor in India and you are bound to get into controversy. In “A Comparative Perspective on Poverty Reduction in Brazil, China and India,” Martin Ravallion (October 2009) calculates that 42% of the population in India in 2005 lived in households with income per person below US$1.25 a day (converted using purchasing power parity exchange rates for consumption in 2005). But he finds only 20% of the population under the US$1.25 poverty line when using a different method as a sensitivity test. The difference is huge. One number is twice the other and corresponds to two hundred million people (more than the whole population of Brazil!).

Ravallion repeats the exercise and finds that in Brazil, in 2005, the population who lived in households with income per person below US$1.25 a day (converted using purchasing power parity exchange rates for consumption in 2005) is 8%. When using the alternative sensitivity test method, it is 10%. Compared to India, the difference is small (2% of the population) between the two measures.

I suspect that instead of trying to calculate the number of people with less than US$ 1.25 a day, policies for poverty reduction should focus on the bottom quintile of the population: the 20% poorest group in the country.

One of my reasons is that inequality matters. Think of poverty as a relationship.

How One Finalist Views DM2009

Tom Grubisich's picture

What did the DM2009 finalists think about the competition and how it might be improved?  Here's a mini-interview with Andrew Reitz, who was a DM2009 finalist from Ecuador.  Reitz is a rural enterprise specialist with Conservacion y Desarollo, whose project is a combination market/conservation approach to community agriculture that would help 100 indigenous and mestizo rural households in the Andes commercialize a native blueberry while reforesting the local ecosystem.   Reitz describes his project in this YouTube clip from the Development Markektplace Channel.
 
Q. What most impressed you about your week at the competition?

A. I was most impressed that the World Bank took the opportunity to reach out to the participants with some of the curriculum from the World Bank Institute.  These sessions touched base on some of the fundamentals to project management that, if applied correctly, will surely help participants achieve higher levels of success in future projects.   I also particularly enjoyed the panel discussion of past DM winners.
 
Q. What would you like to see added to future competition programs to help ensure that all finalists have the richest possible experience from their week?

A. I don't believe finalists were given enough time to properly present their projects to the jurors.   A half hour would have allowed for a proper question and answer period.  In addition, finalists need to be better prepped on the types of questions that jurists will ask.   The session on "selling your project/idea" was interesting; however, it would have been more beneficial if past jurors were involved.
 
Q. Should there be a bigger money pool so there can be more winners among the 100 finalists?


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