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Pathways to Prosperity: An e-Symposium

Peter Lanjouw's picture
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Blog #3: Poverty down, but 1 in 2 hangs by a thread

 
India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India and look forward to your comments.


The sharp decline in poverty in India has been accompanied by a strong pattern of upward mobility, leading to an emerging middle class. Education, urban residence, and wage work have contributed to this higher-than-average upward mobility and lower downward mobility.  Yet, a vast share of the population remains vulnerable to slipping back into poverty, suggesting that gains against poverty need to be deepened and made more secure.  Scheduled Tribes stand out as a group that has fallen further behind, with one-third stuck in chronic poverty.

Bhutan's Gross National Happiness (GNH) and the World Bank

Genevieve Boyreau's picture
Photo Credit: Oliver Jammes

The concept of “Gross National Happiness” has been long discussed, debated, understated, overstated or seen as a gimmick. Now what is really Gross National Happiness? And how does the World Bank engagement fit in it? Let’s look into it together in an attempt to de-mystify the concept into what it really is, which is: a vision, broad policy directions trickling down to programs, a survey, a policy screening tool, and yes also, a foreign policy instrument and a brand.
                  
The visionary statement, “Gross National Happiness is more important than Gross Domestic Product” was first enunciated by His Majesty the Fourth King of Bhutan in the 1970s. In turn, the Fifth King declared: “Today, GNH has come to mean so many things to so many people but to me it signifies simply - Development with Values. Thus for my nation today GNH is the bridge between the fundamental values of kindness, equality and humanity and the necessary pursuit of economic growth.” Article 9-2 of the constitution directs the state “to promote those conditions that will enable the pursuit of Gross National Happiness”.
 
GNH is translated into broad policy directions that provide the Government’s overarching, long-term strategies and five-year plans. The four pillars of GNH philosophy are: sustainable development; preservation and promotion of cultural values (traditional and cultural heritage paramount  - its loss leads to a general weakening of society); conservation of the natural environment (Bhutan’s constitution: 60 percent forest coverage, green economy), establishment of good governance.

Pathways to Prosperity: An e-Symposium

Ambar Narayan's picture

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Blog #2: On poverty and prosperity, lot done, lot to do

 

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around
#WhatWillItTake to #EndPoverty in India and look forward to your comments.

The rapid decline in India’s poverty levels in the recent decade augurs well for the country’s efforts to eradicate poverty. Though the decline was faster and more broad-based than in the preceding decades, examples from across the developing world suggest it could have been more inclusive and responsive to economic growth.

Pathways to Prosperity: An e-Symposium

Onno Ruhl's picture

 

Blog #1: Five key drivers of reducing poverty in India

India is uniquely placed to drive global poverty reduction. The country is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Despite an emerging middle class, many of India’s people are still vulnerable to falling back into poverty.

Over the next few weeks, this series will look back and analyze publicly available data to better understand what has driven poverty reduction from the mid-1990s until 2012, and the potential pathways that can lead to a more prosperous India. Since it is clearly not feasible to elaborate on all the myriad pathways out of poverty available to India, we focus on a few key themes that the diagnostics show to be of particular relevance to the country. We hope this series will contribute to the ongoing discussions on how poverty can be eliminated from India.

We are thankful to the Indian Express for partnering with us in disseminating this series to its readers.

Powering up Central and South Asia

Annette Dixon's picture
Can One Country's Electricity Surplus Be Another Country's Gain?

The opening ceremonies in Dushanbe, Tajikistan starting Wednesday for construction works on the CASA-1000 project mark an important milestone. The project could bring a trade in sustainable electricity between Central and South Asia; address energy shortages in Afghanistan and Pakistan; and will provide financing for new investments and improve winter energy supplies for Central Asian countries.

This ambitious project, costing $1.17 billion, is based on a simple idea.

Measuring the economic potential of Indian districts

Mark Roberts's picture
Kampur
Kanpur, which is one of the largest cities in the densely populated state of Uttar Pradesh, where per capita income is less than one-fifth its level in Delhi and the poverty rate is three times as high. How does its economic potential compare? Read below. Photo by: Sudip Mozumder/World Bank

As anyone who has travelled around the country will testify, India is marked by glaring spatial disparities in well-being. On the one hand, New Delhi is relatively prosperous, and if you visit the recently renovated Connaught Place, you will find not only a bustling outdoor market, but also designer shops, upmarket restaurants and a gleaming new metro station.

However, take the Prayagraj Express train east for seven hours and you will find yourself in Kanpur, which is one of the largest cities in the densely populated state of Uttar Pradesh, where per capita income is less than one-fifth its level in Delhi and the poverty rate is three times as high. 

Such large variations in well-being are a natural cause for concern among India’s policymakers and have generated intense interest in India’s spatial landscape of potential for economic development. Is it the case that less prosperous parts of the country lack the basic ingredients that can give rise to the high productivity that economists believe provides the key to well-being or is it the case that, while they may possess some of these ingredients, they are failing to make the most of them?

The Economic Potential Index

In an effort to provide some insights into both this and other key questions related to India’s spatial development, we have recently published a working paper that examines underlying variations in “economic potential” across Indian districts. 

Our analysis is based on a composite “Economic Potential Index” ( EPI)  that measures, in a single summary score, the extent to which a district possesses attributes that can be considered “universally” important to achieving a high local level of productivity, whether or not a high productivity level is currently actually observed. 

Tending to the most vulnerable in Bangladesh

Yoonyoung Cho's picture
Bus lift for persons with disabilities that I saw when I first arrived in Madison, Wisconsin.
Photo Credit: Ride Metro Bus

When I first visited the college town of Madison, Wisconsin (USA) in 2000, what first stood out wasn’t its beautiful university campus or its famous brat and beer combo. What caught my attention was a public bus which had the equipment to lift a wheelchair. “Beep, beep, beep,” a sound would signal as the bus would lower and extend a ramp to aid people in wheelchairs to board the bus.

At that time, I had never seen anything like this bus and thought, “Wow! Why can’t we have such services back in my country?” No such buses existed in Korea where I grew up. But more than just the bus, I remembered thinking that I rarely noticed people with special needs in Korea. In hindsight, the lack of support and consideration for people with disabilities and ignorant attitudes were also reasons why people with disabilities were rarely seen in public.

Addressing needs through action                                                                                 
In 2014, I became the task leader for Bangladesh’s Disability and Children at Risk (DCAR) project. The difficult situation faced by persons with disabilities in the country was a reminder of the contrast I had experienced in that college town. Accessible transportation was not the only service lacking for people with disabilities. There was a lack of access to health facilities for checkups and treatment along with a short supply of therapy equipment and wheelchairs. A lack of respect towards persons with disabilities by the wider public was also a challenge. Moreover, the project was not delivering the results that it expected to achieve.

Higher education for the 21st century in action

Joe Qian's picture
The graduating class of the University of Moratuwa’s Department of Textile and Clothing Technology. Photo Credit: Isuru Udara

Imagine a school that teaches knowledge and provides hands-on training. A place where students express confidence in their skills, and are excited to make a difference in their future jobs. A bastion of confidence and optimism, where 100% of graduating students have jobs lined up before graduation.
 
Sounds too good to be true? I found this haven at the University of Moratuwa’s Department of Textile and Clothing Technology, supported by the Higher Education for the 21st Century Project (HETC), which is designed to modernize education by its increasing its quality and relevance. 24-year-old Malaka Perera, who is graduating next month, told me how the program has helped him build a foundation for his career. “The program taught me how to deal with people, along with communications and problem solving skills that I used during my internship. As a result, finding a job was quite easy.”
 
Sri Lankans have enjoyed the benefits of broad education access for decades, which has allowed the country to build human capital to rise and become a middle income country. However, as a country with rising aspirations in an increasingly globalized world and competitive region, the quality and relevance of its education system is key for the country to maintain its edge and reach new heights.

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