Economic shocks can be painful and destructive, especially in fragile countries that can get trapped into a cycle of conflict and violence. Effective policy responses must be implemented quickly and based on evidence. This requires reliable and timely data, which are usually unavailable in such countries. This was particularly true for South Sudan, a country that has faced multiple shocks since its independence in 2011. Recognizing the need for such data in this fragile country to assess economic shocks, the team developed a real-time dashboard to track daily exchange rates and weekly market prices (click here for instructions how to use it).
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As we worked on a new World Bank flagship report that provides the latest and most accurate estimates on trends in global poverty and shared prosperity, it became apparent as to what we wanted for the title - Poverty and Shared Prosperity 2016: Taking on Inequality.
Because in our minds it became clear that inequality is becoming increasingly critical to meeting the World Bank’s goals of ending poverty and sharing prosperity. In fact, we find that tackling inequality will make or break the goal of ending poverty by 2030.
Egypt ranks as one of the world’s most equal countries judging by official estimates of income and consumption inequality. Estimates of inequality, like estimates of poverty, are derived from national household surveys that collect detailed income and/or consumption data for a sample of households, assumed to be representative of the country’s population.
We’ve all been there. Leafing through a magazine, or on the subway, glancing up at the billboards, and then a moment of painful awareness as our eyes meet those of a starving child. Limbs grotesquely proportioned, belly distended, the image is accompanied by a request for help. For some small sum of money you too can save a life. Again you see the image… and reach for your phone. You text CHILD or SAVE or LIFE to the relevant organization. Then, conscience temporarily assuaged, you encounter a sinking feeling as you remember you’ve seen this before. How exactly will your donation help the child? What purpose do these images really serve?
It has been almost ten years since Richard Thaler and Cass Sunstein wrote Nudge, but the revolution in behavioral policymaking is still unfolding.
Around the world, behavioral economists and policymakers strive to show that a richer model of human behavior can improve both individual and social welfare in virtually all domains of society.
Philanthropists Bill and Melinda Gates cited “time poverty” as a top priority in their 2016 Annual Letter, referring to the unpaid work that disproportionately falls on women and shining a spotlight on one of the most vexing challenges economists and statisticians face: how to accurately measure women’s work.
New choruses demanding a data revolution to gauge progress toward the Sustainable Development Goals better than their predecessors, the Millennium Development Goals, are welcome—and indeed some challenges on the data front are new. Others, however, are very, very old. Accurate measurement of women’s work and contribution to productivity remains one of the latter.
Policymakers operate with a truncated view of the economy—with little idea of how growth impacts, or is affected by, women’s work. For the most part they fail to incorporate this work into their labour market policies.
International child sponsorship has long been a common way for people in industrialized countries to connect with the poor in developing countries. We estimate that there are at least 9 million internationally sponsored children today, which means that there may be up to 100 million people today in families that are directly affected by child sponsorship (9 million sponsored children and their family members, and 9 million sponsors and their family members) Sponsorship typically involves payments of $30-$40 per month to an NGO to help support an overseas child's schooling, health, and other needs. Some faith-based programs also place a strong emphasis on the spiritual mentorship of sponsored children. But the question remains--does it work? Our research shows that sponsorship translates to higher education levels and future earnings for formerly sponsored children.
The State of the Global Economy
[Based on the opening remarks made at the Chief Economists’ Roundtable on “Growth and Inclusion in Turbulent Times”]
It is time for the annual Spring Meetings. Many of the world’s finance and development ministers, along with business and civil society leaders, are here is Washington and have been meeting with us at the World Bank this week to discuss what we can do to rise up to these challenging times. Most conversations have come to land on two important questions, namely: What is happening around the world in different regions? And: what can we do to stem the slowdown and disunity around the right policy way ahead?
Were today’s patterns of wealth and poverty already determined by 1492?
What if today’s patterns of poverty and prosperity were already determined long ago – even before the arrival of Christopher Columbus in the New World in 1492?
That’s the startling question addressed in new research that I’ll soon publish with my colleague Felipe Valencia Caicedo in a forthcoming article, “The Persistence of (Subnational) Fortune,” in the Economic Journal.
Figure 1: Poverty and inequality in rural China