One is always grateful to see attention paid to the quality and quantity of household data available to study poverty. It is a subject dear to my heart and to my colleagues in the Living Standards Measurement Study (LSMS ) in the World Bank. In sub-Saharan Africa, as a recent Global Dashboard post titled “What do we really know about poverty and inequality?” by Claire Melamed points out, there is still a dearth of data, even after years of government effort and international support. But there are data -- in some countries lots of data -- so it’s worth highlighting what is there. Today I wanted to add some nuance to the discussion of income and assets raised by Claire and, probably more importantly, steer people to some new data that will, we hope, excite the most blasé of you out there.
Through its forthcoming European Union presidency Poland should inspire other regions of the world that seek their own development path. By no means do current turbulences and crisis disturbances shatter the need of European integration. Just the opposite, they make it stronger. European integration works and will get through this confusion.
The World Bank recently launched its ‘Education Strategy 2020’ which focuses on achieving ‘learning for all’ over the next decade. The strategy emphasizes looking beyond inputs (classrooms, teacher training, textbooks, computers) to outputs such as cognitive skills and skills for critical thinking (read Elizabeth Kings’ post on this). The strategy emphasizes this approach through the slogan ‘invest early, invest smartly, invest for all.’
It is still too early to estimate with much precision the quantitative impacts of the devastating events in Japan on the global energy sector, as well as the effects on energy and economic activity in Japan. Nevertheless, some qualitative conclusions can be drawn about the near and medium effects on Japanese and global energy balances. Much more difficult and speculative are judgments about the effect of the nuclear accident that resulted from the natural disaster on the longer-term energy picture.
'Development aid’ is always surrounded by questions. Some argue whether it shows results, and some worry about the way it is spent. And the imminent question is, where does it go? Well, it does have some impact. According to the latest UNESCO report ‘Financing Education in Sub-Saharan Africa’, development aid accounts for 50% of the government education budget in some countries of Africa. “Over the last decade public spending on education in Africa has increased by more than 6% each year”, says the report. However, much remains to be done to distribute it well between primary and higher education, as often requirements of the primary education system suffer. Thus, cutting aid is definitely not a smart move as explained by Liz Allcock and Jimmy Kainja in their post ‘Cutting UK aid to Malawi will hurt the poor, not the leaders’.
In the past 30 years, China has achieved phenomenal economic growth, an unprecedented development “miracle” in human history. Since the institution of its reforms and Open Door policy in 1978, China’s gross domestic product (GDP) has been growing at an average annual rate of more than 9 percent (figure 1). In 2010, it has surpassed that of Japan and become the world’s second-largest economy.
With just four years to the target date of 2015, progress on the health-related Millennium Development Goals (MDGs) has been slow. Measuring progress has been hampered by the lack of quality and timely data; this is especially true when measuring progress toward goals that rely on civil registration for their information, such as Goal 4 on reducing child mortality. Available data in the new edition of World Development Indicators show that of the 144 countries for which data are available, more than 100 countries remain off-track to reach the MDG 4 by 2015.
In his Inquiry into the Nature And Causes of the Wealth of Nations Adam Smith pointed to the social-inclusion role of a linen shirt in 18th century Europe:
“A linen shirt … is, strictly speaking, not a necessary of life. The Greeks and Romans lived, I suppose, very comfortably though they had no linen. But in the present times, through the greater part of Europe, a creditable day-labourer would be ashamed to appear in public without a linen shirt, the want of which would be supposed to denote that disgraceful degree of poverty which, it is presumed, nobody can well fall into without extreme bad conduct.”
This passage has often been used to justify the view that poverty is not absolute but relative—that certain socially-specific expenditures are essential for social inclusion, on top of basic needs for nutrition and physical survival.
The way this idea is implemented in practice is to set a “relative poverty line” that is a constant proportion of average income for the country and date in question. That is how poverty is measured in most of Western Europe. By contrast, poverty measures in developing countries have almost invariably used absolute lines, which aim to have a fixed real value over time. The World Bank’s international “$1 a day” poverty lines also aim to be absolute lines across countries, using purchasing power parities from the International Comparison Program.
Structural transformation is a key determinant of productivity growth and explains two-thirds of the difference between superior East Asian growth and more muted Latin American growth in the past two decades.
Given the multi-speed paths that regions and countries take as they transform, with some succeeding spectacularly and some struggling to compete, it may be time to consider new industrial and labor policies to ensure that a huge swath of the lower middle class in the developing world doesn’t get left behind in the race to compete in today’s unforgiving global marketplace.
Amanda Glassman’s blog post on Ghana’s health insurance program and the firestorm it produced (hat tip to Mead Over) is a reminder of the passions that health reform debates still generate. This is intriguing because my sense is that while we health-reform aficionados are berating one another in the blogosphere, policymakers in Asia are quietly iterating toward something of a consensus on a whole swathe of key issues on health reform. The process isn’t always driven by hard evidence, but that’s because there isn’t much hard evidence either way. I certainly don’t see compelling evidence against the emerging consensus—if that’s what it is. And what’s emerging is rather interesting.