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India

Providing road access to all: how India is turning a distant dream into reality

Ashok Kumar's picture
For many decades now man has been able to go to the moon. Yet down here on earth, many people are still unable to travel to nearby towns, because of the lack of decent roads. The world over, about a billion people live without access to an all-weather road. And many more have perhaps lost the access they once had because floods, heavy rains, cloudbursts, landslides and other extreme weather events have damaged the roads or they have not been maintained. Can we ever think of a world free of poverty without addressing this fundamental challenge?  
 
Let’s look at the case of India where 500,000 km of rural roads have so far been built by the country’s flagship rural roads program (PMGSY). These roads, connecting some 120,000 settlements, have already started transforming the rural areas of the country.
Photo Credit: Shaju John/World Bank


These roads form part of a core network of 1.1 million that India is seeking to build through its ongoing $35 billion PMGSY program to provide about 179,000 rural settlements with road access. The project has been designed to deliver high-quality, sustainable roads in a timely and cost-effective manner. PMGSY’s main source of funding is a special tax on diesel. Since the PMGSY began, the World Bank has been working closely with the Indian government through a series of projects and knowledge initiatives, with funding of about US$1.8 billion.

Stitching Dreams: In Tamil Nadu, Rural Women Show the Way to Start Up India

Samik Sundar Das's picture
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.  
 
Once a large cow shed, a garment unit today.

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.

A path toward better health for India’s women

Parvati Singh's picture
 World Bank
In India, Members of a self-help group (SHG) like this one discuss women’s  health issues with female health workers. Credit: World Bank

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.

In the course of my field work supported by South Asia Food and Nutrition Security Initiative (SAFANSI) in 2015, I came across several similar stories.

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.

From subsistence laborer to Amazon seller: A story from Bihar, India

Mio Takada's picture
 JEEViKA
Kuraisa creating traditional lac bangles . Photo Credit: JEEViKA


Kuraisa lives in the Majhaulia village in Muzaffarpur district of Bihar, India. As an artisan, she and her family create  traditional lac bangles – colorful bracelets made of resinous materials and usually molded in hot kilns – in their small home production unit.
 
In early 2016, Kuraisa joined a self-help group made up of other lac bangle producers and supported through the World Bank’s Bihar Rural Livelihoods Project (BRLP), also known locally as JEEViKA.
 
The self-help group taught Kuraisa new design techniques and loaned her $2,300 to start her own business. One year later , Kuraisa has added two more production units to her home, which provide full time jobs to her relatives  and to as many as 6 additional workers during peak season.
 
Kuraisa’s annual business income has now tripled to $10,000. The self-help group has expanded and nearly 50 artisan families in the village have joined, giving rise to a village enterprise cluster with an annual revenue of $450,000.

Taking lessons from rural India to Azerbaijan

Ahmed Ailyev's picture

I have always believed that communities are like musical instruments. You need to tune them properly to hear their divine music. I actually heard this music from rural communities in India. And their song, which still resonates within me, is something I will now take back to my own country.
 
In May 2017, my colleagues and I from the World Bank’s Azerbaijan Rural Investment Project were on an exposure visit to India to see firsthand how self help groups and cooperatives were impacting the lives of rural people.
 

Kerala: AzRIP and Bank team at the Trade Fair of all SHG livelihood groups across Kerala organized by Kudumbashree at Kollam.

In my years of work in rural development, I have found that the unique feature we as human beings have is the ability to share  skills, values and experiences. As we travelled across six states, this proved to be true in all the people we met, be it in large commercial companies or in remote rural  communities.
 
The people told us that transparency and honesty were an essential factor in their success. I also found that the spirit of cooperation was clearly present. Cooperatives belong to all members, they said, and the managers were there to serve the members. The leaders of self help groups, producer organizations, cooperatives, and micro enterprise groups also told us that they must be party to the risk taken by the group, and should lead by example in order to motivate others.

Good luck and good policies

Frederico Gil Sander's picture

In Brazil, where I come from, we are crazy about football, so I grew up listening to football matches. At the end of a match, the reporters would interview the main scorer of the day, who would often say that he was just lucky to receive the ball at the right place.
 
The commentator would then say that “good luck is a combination of ability and opportunity”. This story comes to mind when thinking of India’s economy over the past two years.
 
India has been lucky indeed. In the fiscal year ending March 2016 (FY16), the sharp decline in oil prices generated what economists call a positive “terms-of-trade” shock, which lifted growth.
 
A terms-of-trade shock means that the things you buy suddenly become cheaper relative to the things you sell, allowing you to buy more things.


 
In the fiscal year that just ended, CSO data that was released recently shows that the good monsoons helped agriculture propel growth. Notwithstanding disruption from demonetization, agricultural wages have continued to grow, along with their purchasing power as rural inflation declined.

But India has also implemented good policies, which allowed it to take advantage of the external shocks. The government took advantage of declining oil prices to eliminate fuel subsidies and hike taxes on carbon-emitting petroleum products, a win for the environment and a win for the exchequer.

What can fuel India's Growth?

Frederico Gil Sander's picture

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The World Bank is releasing its flagship report highlighting the state of the Indian economy, its future growth prospects, the impact of the recent currency exchange on the economy, and the benefits that the progress on the Goods and Services Tax (GST) will have moving forward. 

The unheard voices of women caregivers for people with mental illness

Varalakshmi Vemuru's picture
SHG meeting of people with mental illness and caregivers. (Photo: TNMHP)

Thirty-year old Vijaya (name changed) spent 10 years of her life not talking to anybody. Her parents were daily wage laborers, scraping together a sparse living in India’s southern state of Tamil Nadu. Unaware of any treatment, and afraid of being stigmatized or shunned by their community, they did not disclose their daughter’s illness to anyone. Instead, Vijaya suffered in silence, confined to the house, and hidden from public view.
 
It was only when the Tamil Nadu government’s Mental Health Program (TNMHP) reached out to their community that Vijaya’s life underwent a dramatic change. After six months of working with the program’s community facilitators, Vijaya’s parents took her for treatment, and within a year, the young woman began interacting with others more frequently.
 
Poor mental health places a huge burden on individuals, families, and society. From developed countries to emerging market economies, mental disability – ranging from common mental disorders such as depression to severe mental illnesses and retardation – has profound impacts on people’s economic and social well-being.
 
As cited in “Out of the Shadows: Making mental health a global development priority” in 2010 alone, depression cost an estimated US$800 billion in lost economic output. What’s worse, these costs are expected to double by 2030.
 

Three key policies to boost performance of South Asia’s ports

Matias Herrera Dappe's picture



In a previous blog
we related how South Asia as a whole had improved the performance of its container ports since 2000 but had still struggled to catch up with other developed and developing regions. But within that picture, some ports did better than others. 

For example, Colombo in Sri Lanka, the fast-expanding Mundra and Jawaharlal Nehru Port in India and Port Qasim in Pakistan all improved the use of their facilities in the first decade of this century.  India’s Mumbai and Tuticorin were among those that fell behind. Colombo also improved its operational performance by almost halving the share of idle time at berth, while Chittagong (Bangladesh) and Kolkata (India) had the longest vessel turnaround times in the region.

Knowing how specific ports perform and the characteristics of ports that perform well and those of ports that perform poorly helps policymakers design interventions to support underperforming ports.

In the report “Competitiveness of South Asia’s Container Ports” we identified three interrelated policies to improve the performance of the container ports, a key element in one of the world’s fast-growing regions: increasing private participation in ports, strengthening governance of port authorities and fostering competition between and within ports: 

South Asia’s ports: Expensive and slow

Matias Herrera Dappe's picture
 
Are South Asia’s Container Ports Competitive?


Many countries, developed and developing, that want to become more competitive in global markets tend to jump to a quick conclusion that they need to invest more in infrastructure, particularly in transport sectors like ports. But while many regions, including South Asia, do face important infrastructure gaps, massive new investment is not the only way to improve regional competitiveness. Countries should realize that they also have significant potential to make more efficient use of the infrastructure they already have.
 
Building megaports all along the coast might reduce a country’s trade costs, but it also requires hundreds of millions of dollars in investment. Improving the performance of existing ports, enabling them to handle higher levels of cargo with the same facilities and in a shorter time, can be a far more cost-effective approach to reducing transport and trade costs. Closing the infrastructure gap does not just require more infrastructure, but also better infrastructure, and better use of existing infrastructure.
 
The report Competitiveness of South Asia’s Container Ports, which we launched today, provides the first comprehensive look at the 14 largest container ports in South Asia, which handle 98 percent of the region’s container traffic. It focuses on port performance, drivers, and costs. 

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