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Social Development

Macro hype, micro hope: Optimists champion ‘Community-Led Development’

Christopher Colford's picture

Now there’s a guy who really puts the full-scale dismal into “the dismal science” of economics – spurring optimists to quickly seek out more hopeful visions of the future.

Those seeking a glimmer of hope about the economic future were well-advised to keep their expectations low as they awaited the gloomy analysis by Prof. Robert J. Gordon, the esteemed economic historian from Northwestern University, who spoke at the World Bank Group’s Macrofiscal Seminar Series on March 31. As anticipated, Gordon’s expertly documented but relentlessly downbeat scenario, based on his latest book, “The Rise and Fall of American Growth,” persuasively made the case for a future of chronically sluggish growth in the world’s advanced economies.

Gordon’s chilling projections combine some of the darkest aspects of Lawrence Summers’ worries about “secular stagnation,” Christine Lagarde’s lamentations of a “New Mediocre” and private-sector leaders’ struggle to strategize for the “New Normal.” Gordon’s bleak thesis foresees “little growth” – although, significantly, not zero growth – as the developed world’s weary economies endure perhaps decades of drift.

Policymakers in the world’s largest economies are surely exasperated by the painstaking crawl out of the global financial crisis – yet they don’t have much positive news to look forward to, asserts Gordon. With “declining potential productivity growth” compounding the impact of declining population growth and a declining labor-force participation rate, there’s probably no technological deus ex machina that can soon propel the world’s advanced economies toward restored prosperity.

That viewpoint defies the techno-utopian visions that have been so eagerly peddled to anxious Western voters, who can only dream of a return to brisk late-1990s-style growth. Quipped the Macrofiscal seminar’s discussant, Deepak Mishra: Gordon “has made a career of busting the technology hype.”

Yet Gordon’s logic need not trigger total despair among the Bank’s poverty-fighting professionals and their counterparts at other development institutions. Gordon emphasized that his analysis is about the American economy, and, to some extent, about the mature economies of Western Europe. His book’s foreboding predictions, he said, do not extend to developing economies, which enjoy “great potential for growth.”

For can-do pragmatists who strive for stronger growth and sustained progress in developing economies, there’s a ready antidote to Gordon-style macroeconomic gloom. By happenstance, immediately after Gordon delivered his grim analysis in the Bank’s J Building auditorium, optimists seeking inspiration needed only to cross the street to the Bank’s Main Complex to hear an energetic appeal for greater hands-on activism.

With an update on the movement for Community-Led Development (CLD), a seminar sponsored by the Bank’s Community-Driven Development Global Solutions Group learned of the promise that CLD offers for inspiring inclusive, sustainable solutions that enlist citizens’ engagement and build community-level confidence in strong governance standards.

Moving from macro to micro – dispelling the dread of inexorable global forces and embracing positive citizen-centric action – the CLD leaders leapfrogged Gordon’s macro-level angst to highlight micro-level opportunity.


Solar Irrigation Pumps: A New Way of Agriculture in Bangladesh

Mehrin Ahmed Mahbub's picture
Solar Irrigation Pumps in Bangladesh
Habibur shares a content smile as he tends to his rice field. Photo Credit: World Bank


On a recent field trip to northern Bangladesh, the smiles of Habibur, a young man working in a rice field under the scotching sun caught my attention. Habibur, 28, looked content amidst the wide green vista of fields.  
I learned that his life had not been easy. His father died when Habibur was around four years old, and the family had no land. His young widowed mother started working as a day laborer to raise her only child. Habibur began working too in his mid-teens. Mother and son struggled, but they managed to save some money.  They first bought a cow, and later Habibur leased land for rice cultivation. This is a common practice in rural Bangladesh, where the yield is divided between the farmer and the owner of the land.

What to expect when you’re expecting, in Nigeria: Lessons from a series of health impact evaluations

Anushka Thewarapperuma's picture
The life of a Nigerian midwife


Childbirth is a time for expectant mothers to revel in the wonders and joy surrounding the arrival of a new human being; one breathing crisp new air, bawling with resonance in finding their voice and opening their eyes in awe to see the world around them. It’s the last conceivable moment where a mother wants to worry about the cleanliness of the birth facility, the baby’s life and, least of all, her own life. But in many developing countries including Nigeria, this is the reality.  

How - and on what money - could we live to the age of 150 years?

Johannes Koettl's picture
Retired man with his surfboard
Nature has given every species an intrinsic life span. Life span is a bit like an upper bound to life expectancy: if you got every member of a species healthier and healthier, life expectancy of that species would constantly increase, but eventually be bound by life span.

Every species has a different life span: for flies, it’s just a couple of days, for bowhead whales it’s 200 years. For humans, biologists have found that up until the 1960s, life span was around 89 years. This means that if we kept improving our health systems, the world population’s life expectancy would converge to our species’ life span of 89.

So how did we break the limits of life expectancy?

Uruguay’s award-winning innovations for social protection

Till Johannes Hartmann's picture
Photo credit: Jimmy Baikovicius

Uruguay stands out in Latin America and the Caribbean for the significant and early progress it achieved in terms of social protection.

Now gaining global attention, Uruguay is pioneering an award-winning information system to reduce poverty and vulnerability. The system addresses challenges faced by many governments in targeting and coordinating social assistance and, with reduced costs from license-free software, it could soon be replicated in other countries.

Uruguay spends more on social programs than any government in the region (about 25% of its GDP, and over 80% of total public spending). While these resources have enabled great advances, the wide array of institutions responsible for deploying them creates coordination challenges.

Closing the gap in Myanmar: Expanding access to social services

Hnin Hnin Pyne's picture



Myanmar’s people are its greatest resource. Its current young population and growing number of productive workers hold the promise of a demographic dividend and inclusive growth. With a steady pace of economic growth, Myanmar has the potential to get rich before it gets old.
 
For Myanmar to deliver on this potential it can prioritize investing in its people, by strengthening the country's health, education, and social protection systems. Education and health directly improve chances of employment. Individuals who complete more years of schooling earn a higher income.  Improving health, education and social protections – closing the gap – is not a mere by-product of economic development, but is essential to shared prosperity.
 
Myanmar in the early 1960s, poised to be the economic engine of the region, prided itself for having the highest literacy rate in Asia. After decades of underspending and neglect of social services and programs, human development outcomes deteriorated, ranking among the lowest in the region.  Rural and poorer households bore a greater burden of ill health, low educational attainment and vulnerability. 
 
In 2009, a major share of the total education and health spending came from households, 63% and 82% respectively.  This direct out-of-pocket spending, which was one of the highest in the world, prevented people from seeking care and attending school, because they could not afford it. In the case of health, families were made even poorer, as they had to sell their belongings to pay for the care they needed.  And there was no system to protect them. 
 
Even today, social assistance programs only reach 0.1% of the population, compared to 39% among East Asian and the Pacific countries.  This is in part due to extremely low level of social assistance spending, which is only 0.02% of GDP, compared to an average of 1.1% of GDP among low-income countries.
 

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