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Urbanization in India: Stronger Cities through Better Institutions

Mabruk Kabir's picture

For centuries, cities have been the beacon for economic prosperity. Drawn by the promise of economic, social and political opportunity, more than half the world’s population live in cities today. In India alone, 90 million people migrated from farms to cities in the last decade. The prospect of higher wages and better living standards is expected to draw 250 million more by 2030.

Urban success is based on economies of agglomeration -- where density increases the ease of moving goods, people, and ideas – increasing productivity. However, compared to other emerging economies, Indian cities do not appear to have captured gains from economic concentration. While the service sector and high-tech manufacturing have benefitted from agglomeration more than other sectors, overall urban productivity has not kept pace with India’s economic growth. In fact, the urban share of national employment has not increased between 1993 and 2006.

Are the costs of density overwhelming the benefits from clustering?

Never Again! The Story of Cyclone Phailin

Saurabh Dani's picture

I have been visiting coastal Odisha for the past four years, earlier when we were preparing the National Cyclone Risk Mitigation Project (NCRMP) and subsequently during project implementation.
 
Every time the project team visited a village, the local community was always there to welcome us and talk about their experience during the 1999 cyclone, the community members they lost, the houses damaged, the devastation inflicted. This was an event that was firmly etched in their memories even 10 years later. Every site visit was followed by a small function wherein the local community mobilizing volunteers spoke about the preparedness work they were undertaking in collaboration with the Odisha State Disaster Management Authority (OSDMA) and local community organizations. Almost every single meeting ended in their spoken resolve “Never Again!”

How can regional integration improve access to finance in South Asia?

Sarmad Shaikh's picture

South Asia is the least integrated region in the world. Intra-regional trade in South Asia is less than 2% of GDP compared to over 20% in East Asia. Labor mobility and regional travel is minimal, with few exceptions. Even remote communication is low – only 7% of international telephone calls in South Asia are to countries within the region, compared to 71% for East Asia. The case for closer integration has remained strong for a while now, and it is refreshing to see that some movement, albeit watchful, in addressing some of the region's deep rooted political economy issues, particularly between India and Pakistan.

The discussions around closer integration have centered on energy, trade, connectivity and stability. All of these offer strong potential to enhance growth in the region. However, financial sector integration overall, and access to finance in particular, hardly ever make it to the agenda of regional integration forums and deliberations. This is unfortunate, because the region has a long way to go in providing adequate access to financial services and insurance products, especially to the vulnerable segments of the population. Given that South Asia is home to more than half a billion of the world’s poor, this becomes a poverty reduction goal as much as a financial inclusion goal.

Ending the shame and stigma of poverty

Roland Lomme's picture

A forthcoming book (The Shame of it: Global Perspectives on Anti-poverty Policy, Gubrium E. K., Pellissery S. and Lodemel I., Policy Press, 2013), the first of a series reporting on a stream of field surveys in developed and developing countries, draws attention on the social, political and psychological (in one word human) dimensions of poverty and stresses the risk that anti-poverty policies and programs inadvertently stigmatize their beneficiaries and aggravate their own shame.

Managing Disaster Risk in South Asia

Marc Forni's picture

Losses due to disasters to human and physical capital are on the rise across the world.  Over the past 30 years, total losses have tripled, amounting to $3.5 trillion. While the majority of these losses were experienced in OECD countries, the trend is increasingly moving towards losses in rapidly growing states. 
 
In a sense, increasing risk and losses caused by disaster are the byproduct of a positive trend - strong development gains and economic growth. This is because disaster loss is a function of the amount of human and physical assets exposed to seismic or hydrometeorological hazards, and the level of vulnerability of the assets. The richer a country gets, the more assets it builds or acquires, and therefore the more losses it potentially faces.
 
Rapid development across South Asia signals the need to commit greater efforts to increase resilience to disaster and climate risk. It also requires governments to develop a strategy to both protect against events today and to develop strategies to address the losses of the future.  This is a challenge somewhat unique to South Asia. The losses of today, predominantly rural flooding that impacts wide swaths of vulnerable populations, will begin to diminish in relative importance to the losses of the future.

What Drags Poverty Reduction in South Asia?

Zahid Hussain's picture

Poverty has been a concern in societies even before the beginning of recorded history. In the past three decades extreme poverty in the world has decreased significantly. More than half of population in the developing world lived on less than $1.25 a day in 1981. This has dropped to 21% in 2010. More impressively, notwithstanding a 59% increase in population in developing countries, there were 1.2 people living on less than $1.25 a day in 2010, compared with 1.9 billion decades ago. However, the challenge of poverty reduction ahead remains daunting with 1.2 billion still living in extreme poverty. Freeing the world from poverty is perhaps the most important economic goal for the world today. More than a hundred countries are still not able to move away from high poverty traps.
 

Is Upgrading Informal Housing a Step in the Right Direction?

Parul Agarwala's picture

Within the next 30 years, urban populations in developing countries will double and UN-Habitat estimates that around 3 billion people will need housing and basic infrastructure. Already, 70% of existing housing in developing countries is built informally without appropriate structural standards. Thus, the challenge lies in reconciling informal settlements with existing and future planned environments.

In light of these challenges, the South Asia urban team at the World Bank, as part of its urbanization webinar series, organized a discussion on “Upgrading Housing in Informal Settlements.” This webinar highlighted the challenges of upgrading housing in informal settlements, and shared lessons from around the globe where targeted policy interventions and grassroots movements have mobilized resources to create success stories. Guest speakers and experts around the world joined the discussion on informal settlements.

Is Urban Planning Necessary?

Chyi-Yun Huang's picture
During the South Asia Region workshop on "Promoting Access to Land and Housing", one underlying thread that ran through the discussions was on effective urban planning. Often, we encounter doubts on the usefulness of urban planning. While urban planning manifests in various forms, perhaps the most questionable one is comprehensive long term planning.

Asha by boat: the last mile over water

Onno Ruhl's picture

 

“If I don’t get a hundred it would be a bad day.” said Muniran Bibi. She sounded like an ambitious cricket player. “The boat clinic is our only chance of getting health care here on the island.” she insisted. “If not many people come, a big chance would be wasted for them.” Her eyes were bright with anticipation. 

Getting to Work: Tackling Youth Unemployment in South Asia

Mabruk Kabir's picture

 “Young people ought not to be idle,” quipped Margaret Thatcher, “It is very bad for them.” That was twenty years ago. With over a million youth currently out of work in Britain today – 21% of the population – her words remain unfortunately prophetic. And it’s not just industrial countries that are in a funk. The “arc of unemployment” does not discriminate: it cuts across southern Europe through the Middle East to South Asia. Almost half of the world’s young people live along this arc, and it is a demographic dividend that is quickly becoming a demographic liability.

Consider South Asia: a region home to the largest proportion of unemployed and inactive youth in the developing world, a whopping 31%. Many attribute this to social norms, as many South Asian women do not work for cultural reasons. But with a growing middle class, gender norms are rapidly evolving.

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