In our travels across rural Tamil Nadu we met many women who had a great deal of experience in working in the large garments factories of the state – in Tiruppur and Chennai. But, after getting married their family responsibilities forced them to leave their jobs and return to their villages. Now these young women have put their years of experience to use and are setting up small enterprises in their home villages, sewing garments for India’s huge domestic market. It is a win-win situation for all. Working out of thatched huts and refurbished cowsheds, the newly-minted women entrepreneurs not only turn in a tidy profit but also create much-needed employment for others. The large garment manufacturing companies, faced with crippling shortages of skilled labor, now outsource orders to these units. Today, these fast-growing women’s enterprises have not only opened up new avenues for rural women to work, boosting female labor force participation, but also added a new grassroots and gender dimension to the idea of Start Up India.
As we entered the small hut of rammed earth thatched with coconut leaves, the sounds we heard belonged to a different world. Amidst the whir of industrial sewing machines, nine young women were busy stitching bolts of fabric into men’s shirts, destined for India’s vast domestic market for low-cost garments.
This was Inam Koilpatti village in India’s southern state of Tamil Nadu. Even though many villages in the state were rapidly urbanising, this village still had many huts, and prosperity was yet to arrive.
Two young women, Indhurani and Gurupakkiam, ran this tiny unit. Born with an entrepreneurial spirit, these women have unwittingly given a much-needed boost to the idea of ‘Start Up India’ in this poor region.
“We were both working at a company in Thalavaipuram,” they began. (Thalavaipuram is an emerging garments hub nearby.) “But, with family responsibilities it was getting hard for us to travel 20 km to work. Three years ago we approached our employer with a proposition. We would set up a unit in our village, if he would give us orders,” they narrated.
In many respects, Bhutan has been a development success story. Its people have benefitted from decades of sharp reductions in poverty combined with impressive improvements in health and education. The country is a global model in environmental conservation. It is the first carbon negative country; Bhutan’s forests, which cover over 70% of the country, absorb more carbon dioxide than is produced by its emissions.
The Kingdom of Happiness also must grapple with the reality of managing budgets, creating infrastructure, and preparing its citizens to be able to create and take advantage of jobs of the future. To do that, we are working with closely with Bhutan to build the foundations for a more prosperous future through the cultivation of a vibrant private sector economy and supporting green development.
At the same time, Bhutan has invested generously in hydropower energy production to create a reliable and lasting source of green energy for its people. It also benefits from exporting excess electricity to neighboring India, whose energy needs continue to increase at a rapid pace with their growing economy.
In large part due to the hydropower investments, Bhutan’s public debt was 107 percent of the Gross Domestic Product (GDP) as of March 2017. Hydropower external debt was at 77 percent of GDP with non-hydropower external debt accounting for 22 percent of GDP. Questions have arisen on whether this level of debt is sustainable and what should be done to address it.
Afghanistan is vulnerable to a number of natural hazards, including earthquakes, flooding, drought, landslides and avalanches, as well as hazards arising from human interaction. Among low income countries, Afghanistan is second only to Haiti in terms of the number of fatalities caused by natural disasters between 1980 and 2015. In the last few years, however, the Afghan Government has increasingly understood how the consequences of extreme weather events and disasters add to existing security risks. Severe and prolonged droughts, for instance, have increased food insecurity, causing on average $280 million in economic damage to agriculture each year. Natural disasters and climate-related shocks affect 59 percent of the population, concentrated in economically poorer regions, as opposed to security-related shocks (15 percent).
The availability of disaster risk information is particularly important for a fragile state like Afghanistan where 4 out of 5 people rely on natural resources for their livelihoods. To strengthen resilience, investments in Afghanistan need to incorporate information on natural hazards in their planning, design and implementation. To help support government efforts, the World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR), in close cooperation with the Afghanistan National Disaster Management Authority (ANDMA), recently produced a comprehensive multi-hazard assessment level and risk profile, documenting information on current and future risk from fluvial and flash floods, droughts, landslides, snow avalanches and seismic hazards. The main findings, methodology and expected outcomes were recently discussed and presented to the Disaster Risk Management community of practice within the World Bank Group. A number of takeaways from the discussion are presented below:
What is Afghanistan’s risk profile and vulnerability?
Flooding is the most frequent natural hazard historically, causing average annual damage estimated at $54 million; large flood episodes can cause over $500 million in damage
Historically, earthquakes have caused the most fatalities, killing more than 10,000 people since 1980
3 million people are at risk from very high or high landslide hazard
Droughts have affected 6.5 million people since 2000; an extreme drought could cause an estimated $3 billion in agricultural losses, and lead to severe food shortages across the country;
An estimated 10,000 km of roads (15 percent of all roads) are exposed to avalanches, including key transport routes like the Salang Pass
With a population of 160 million, Bangladesh is situated at the epicenter of some of the deadliest cyclones the world has ever experienced. Catastrophic events are the norm rather than the exception. A severe tropical cyclone can strike every 3 years and 25% of the land floods annually.
The network of the mighty Ganges-Brahmaputra-Meghna rivers makes its meandering journey through the delta into the Bay of Bengal forming the coast of Bangladesh.
The jagged coastline of Bangladesh spans hundreds of miles and is subject to multiple challenges: 62% of the coastal land has an elevation of up to 3 meters and 83% is up to 5 meters above sea level. These low-lying areas are highly vulnerable to natural hazards.
Earlier this year, I got a chance to see first-hand the challenges that this demanding landscape had brought onto the communities of a remote coastal village. What struck me most when speaking to members of this coastal community was their courage and resilience. Aware that a calamity can hit anytime, they struggle to protect their livelihoods affected by saltwater intrusion, and their own lives which are increasingly at risk due to rising sea levels, and exposure to more frequent and devastating storms and cyclones.
By 2050, the coastal population is projected to grow to 61 million people, whose livelihoods will increasingly be at risk due to the impact of climate change.
Triggered by climate change, seawater inundation could become a major problem for traditional agriculture. According to the Intergovernmental Panel on Climate Change Fifth Assessment Report (2014), climate-related declines in food productivity will impact livelihoods and exports and increase poverty. In Bangladesh, it is estimated that these factors would cause a net increase in poverty of 15% by 2030.
To mitigate against such risks, the government has been investing in strengthening the resilience of the coastal zone. Over the years, Bangladesh has become an example of how protective coastal infrastructure, together with social mobilization and community-based early warning systems, is helping to build resilience.
Not so long ago, 15 years to be exact, I remember when people in the districts of Kandahar used animals to transport their agricultural harvest to the provincial center. There were a few, if any, motorable roads, and we had a limited number of health centers and schools in the province. Most of the infrastructure laid in ruins. But worst of all, the economic condition of the average Afghan was quite bad with little or no access to income, opportunities, and facilities.
Things have changed since 2003. While many development projects have been implemented in Kandahar Province, the National Solidarity Programme (NSP) has been one of the most popular and high impact. Running from 2003 to 2016, NSP was implemented in 16 of 17 districts and set up 1,952 Community Development Councils (CDCs), which implemented over 3,300 projects.
In Kandahar, communities are very conservative, and, overall, the province is highly traditional. When the program was launched, people in Kandahar were not interested in establishing CDCs through holding elections at the village level.
Compared to their investment needs, developing countries have very limited concessional financing available to them. International commercial banks are constrained in terms of the size and tenors of credits to Emerging Markets and Developing Economies. A key challenge therefore, is to channel large savings and capital into productive investments in developing countries, partly by ‘de-risking’ investments and borrowings. Pakistan is at the forefront of these efforts, recently making use of two World Bank guarantees to access over 1 billion US dollars in two international commercial loan financings.
A $420 million IBRD Policy Based Guarantee (PBG) was approved by the World Bank Board alongside a $500 million IDA credit in June 2016. The PBG guarantee partially takes over the risk of a commercial bank’s loan to a government. The PBG and the IDA credit supported a program of reforms including the adoption of a new and more inclusive poverty line, efforts to broaden the tax base, enhanced transparency of State Owned Enterprises, improved debt management and a significant overhaul of the regulatory framework of the financial sector. Improved access to international financing through the PBG will reduce the government’s dependence on domestic financing and free up resources for private sector investment. The guarantee also signals the World Bank’s confidence in Pakistan’s economic reforms program – a signal that is particularly important after the successful completion of the IMF program. The government used the US$420 million PBG to partly guarantee a 10-year US$700 million loan, extending tenor significantly and achieving cost savings.
The success of Dhaka, one of the megacities of the world, is critically important for the economic and social development of Bangladesh. The city's astonishing growth, from a population of 3 million in 1980 to 18 million today, represents the promise and dreams of a better life: the hard work and sacrifices made by all residents to seize opportunities to lift themselves from poverty towards greater prosperity.
These problems will not go away on their own. Dhaka's population is expected to double once again by 2035, to 35 million. Without a fundamental re-think requiring substantial planning, coordination, investments, and action, Dhaka will never be able to deliver its full potential. Dhaka is at a crossroads in defining its future and destiny.
Up to now, urban growth has mainly taken place in the northern part of Dhaka and expanded westward after the flood of 1988, when the government built the western embankment for flood protection. This resulted in high-density investments near the city centre, where infrastructure and social services were accessible. However, real estate investments were not coordinated with other infrastructure and transportation services.
When it comes to conflict and displacement, we often think about the refugees forced to flee their homes. Equally affected, however, are the ones making their way home after a trying time in exile—the returnees.
One can only imagine how much pressure the displacement crisis is putting on the cities and communities hosting refugees and returnees—starting with the challenge of providing basic services such as water and housing, let alone jobs and security.
Inspired by Sri Lanka's incredible natural beauty, the World Bank organized a photo contest starting on June 21st aimed at showcasing the many talented photographers among us as well as celebrating the rich flora and fauna of Sri Lanka. We received an overwhelming response from many talented photographers, both professional and amateur, who sent us hundreds of awe-inspiring entries.
A little over six years ago, Neelam Kushwaha’s first daughter was born weighing 900 gm at birth, severely underweight. Neelam went into labor while working at the local construction site in Jori village, Rewa, Madhya Pradesh, India. Many people work at such local construction sites in rural areas for daily wages ranging from INR 150-280 (about $2- 4$) per day. Her daughter Manvi, was preterm, and Neelam spent months recovering from child birth complications.
Three years later, when Neelam was pregnant with her younger daughter, Sakshi, she quit wage labor and sought employment at an incense manufacturing unit established by World Bank’s Madhya Pradesh District Poverty Intervention Project (MPDPIP) in 2011. At her new role, she earned more and did not engage in labor intensive work during the final months of her pregnancy. Sakshi was born a healthy 3 kilos.
MPDPIP’s livelihood based approach offered several opportunities towards income supplementation for women self-help groups (SHGs) and rural households through agriculture, dairy/poultry farming and local enterprises, among others.
As evident by Neelam’s experience, MPDPIP’s benefits went beyond income and spilled over into health improvement as well.
I learnt that prior to MPDPIP, childbirth in hospitals was difficult due to prohibitively high costs of travel and hospital stay. Pre-existing government schemes such as the Janani Suraksha Yojana (JSY) offer about INR 1,400 ($20) to rural women who opt for hospital deliveries. However, this payment occurs post-partum, and pre-delivery costs have to be borne upfront by pregnant women.
Post MPDPIP, women were able to opt for hospital deliveries with greater ease due to access to credit from their SHGs. This is particularly relevant for Madhya Pradesh as it has consistently fared poorly with respect to institutional deliveries.