The World Bank is releasing its first-ever comprehensive study of container ports in South Asia, examining the competitiveness of major ports across the region and suggesting ways they can work more efficiently to boost trade.
The report, to be formally launched on April 27, examines the performance of the ports, which handle about 75 percent of the region’s trade by value, and assesses the role that the private sector, governance, and competition have played in their development.
Trade has been key to South Asia’s remarkable economic average annual growth rate of about 6.7 percent since the beginning of the century, the second-highest in the world after East Asia.
By improving the transport infrastructure, including ports, and easing bottlenecks that hinder the flow of goods, the World Bank is helping South Asia lower its high logistics costs, capture a bigger share of the global market and create more jobs, supporting its progress toward becoming a middle-income region.
First, I’m just very excited to meet everyone there! I’m eager to learn and share.
Second, Peshawar! The oldest city in Pakistan! So much history!
Third, and most importantly, I’m looking forward to being part of a great movement. Let me explain.
Private equity firm JAB just bought Panera (a bakery, sandwich, and salad chain) for $7.5 billion. Yes, that’s billions of dollars. Nvidia (a graphic and mobile computing company) had a stock price of around $14 a share in 2012. Today, shares are worth $100 and it has a market valuation of $57.8 billion. What do these two very different companies, operating in completely separate markets, have to do with each other?
Future focused innovation.
Many people think that all innovation is future focused. Innovation within a company is a function of its strategic direction. If the company is simply about reducing costs and maintaining it’s market share, then innovation tends to be about present operations and marketing. It’s about efficiency or managing growth. Panera and Nvidia are different.
Early on Panera perceived a shift in casual diners patience for waiting. Consumers in big cities want good food without the wait … so, in 2014 they started deploying digital technologies to cut waiting times and allowed advanced orders. Many other restaurants are now trying to follow their lead, a couple of years too late. Yes, Panera has quality food and good locations and from that, their trajectory of growth was good. But they wanted to be decisively better than their competition. They needed to get to capabilities no company had. They needed to get innovative with digital in order to deliver their great food. They are decisively winning now.
In 2016 Nvidia introduced the worlds fastest processing unit for automobile AI. They are also dominant in virtual reality hardware. Years ago, when Nvidia had to start building for the future, there wasn’t clear and present demand for high powered computing on mobile, virtual reality, and self-driving automotive platforms. But they made the decision to innovate for the future and now, they own it.
Why am I excited to go to DYS 2017? Because it’s very likely that someone in attendance will create a disruptive service or technology. You will build a company around it or sell it and use the proceeds to create 10 more services or technologies. I can’t wait to see all the ideas and energy around improving the future!
This year, perhaps even more than in previous years, I am very excited to come to DYS for two main reasons.
First, since its inception in 2014, the Digital Youth Summit has become one of the premier technology conferences in Pakistan. Back in 2014, we got some skeptical responses to the idea of holding a tech conference in Peshawar. National speakers were hesitant to make the trip to Peshawar. Security restriction on international travel were in place for KP up to a week before the event. Several international speakers dropped out because of difficulties getting visas.
But in 2014, the first Digital Youth Summit came on the tech scene, redefining Khyber Pakhtunkhwa as an emerging digital economy. The event brought together local and international participants (some attending their sessions by videoconference) to deliberate on supporting the growth of nascent ecosystems. Local youth showed up, curious about how the internet is shaping jobs of the future. I met one young woman who had traveled on an overnight bus with her child and sister just to learn more about what it means to work online. She told me excitedly that she could not wait to begin her new internet based career. And for the international speakers who made it, the hospitality and warmth of Khyber Pakhtunkhwa reshaped their views of Pakistan.
Fast forward three years to DYS 2017. DYS has become an established event in Pakistan’s tech community. It has provided an international platform to showcase the vibrancy and enthusiasm of Khyber Pakhtunkhwa as it embraces the digital economy. And while it continues to identify with its core objective—to raise awareness among youth—it has also become a platform for Pakistan’s tech community to deliberate the growth of tech entrepreneurship, the future of digital payments, and how to promote Pakistan’s digital transformation. The commitment and presence of the Government, as well as participation of a wide range of international experts, complements each panel discussion. But it is the enthusiasm and excitement of the youth that gives the event its signature energy and vibrancy.
Last week, I took a journey on Mumbai’s suburban train system, which carries a staggering 8 million women and men, equivalent to the entire population of Switzerland, every day to where they live, work, and spend time with family and friends. Although stretched, the system has reduced mobility constraints and increased independence for millions of women who rely on safe transport to access education and job opportunities; contributing to the city’s dynamism and growth. There are similarly inspiring examples from all countries in South Asia.
As we mark International Women’s Day, we celebrate the progress made in improving women’s inclusion and empowerment, while seeking to better address continuing challenges, which are estimated to cost South Asian economies $888 billion, through devising and implementing solutions that will bridge remaining gaps.
Much to be proud of—a lot more remains to be done
South Asian countries have seen encouraging increases in greater access and gender parity in education. At the same time, the region has achieved substantial decreases in maternal and child mortality. Countries have made great strides in healthcare access through training more female healthcare workers while providing affordable care for mothers and children. The region also boasts many inspiring female leaders and role models, as well as the countless individuals positively contributing to their communities and societies against difficult odds.
However, much more needs to be done in order to nurture all women and men to realize their potential. As South Asian countries become more prosperous, their growth trajectory will be less assured if hundreds of millions of women remain excluded from education and employment opportunities. South Asian countries will need to substantially expand their workforce in order to meet their economic growth goals and, at the same time, adequately support their increasingly large populations. Studies show that only around 1 out of 4 women in South Asia participate in the labor force, about half of what is typical in middle-income countries in other regions. Too many women face restrictions in decision-making, mobility, public safety; and far too many experience gender-based violence—the most egregious cases making headlines around the world. What can help bridge these gaps?
Over the past several years, innovations in information and communication technologies have fundamentally changed the nature of work.
This has created new opportunities in digital employment for workers and employers in South Asia and beyond.
So what are the pathways to this new employment?
During a recent Facebook live chat on digital jobs, we explored three themes related to the digital jobs of the future. First, we discussed where the digital jobs of the future are. Second, we discussed how South Asia is uniquely positioned to benefit from the growth of these jobs. And finally, we discussed how to get started in the digital economy by finding relevant training and learning opportunities.
Here’s an overview of our discussion in five points:
Digital jobs fall into two categories: jobs within the IT or digital industries, and what are termed digital society jobs. Digital industry jobs include those such as computer programmer, mobile app developer, graphic designer and other jobs where information and communication technologies are the core tool to perform the job functions. However, technology is also changing what we call digital society jobs, where technology is maybe not core to the job functions, but makes more you more efficient and productive, and improves access to markets and networks.
2. What is driving the emergence of these new digital jobs?
The rapid rise in connectivity that is linking more and more people to the internet is changing employment. Today, many jobs can be performed through computers, with workers telecommuting from almost anywhere in the world. Many business processes are being broken down into task based work, and which can be farmed out to people with the skills to do them, anywhere the world. Some of these tasks need higher-level skills, and can pay well – especially compared with many developing countries’ wage levels. But there are also simpler tasks that many more people, even those with limited skills, can do. This mix creates the opportunity to include more people in the global digital economy, while also creating pathways towards better paying and higher quality work for those who perform well and pick up in-demand skills.
Last November, when the SAARC summit that was supposed to be held in Pakistan was canceled, I thought regional cooperation in South Asia would lose its momentum. Tensions between members not only postponed the SAARC Summit, but also hampered the South Asian Economics Students (SAESM) meet. SAESM was scheduled to be held in India in December where I was supposed to be a participant. I started believing in news, media and opinion pieces that said ‘there’s no future for South Asian integration as there is so much mistrust in the region.
After a concerted effort from the economics professors from across South Asia with the support of the World Bank, the 13th SAESM of economics students (selected based on top paper submissions) was successfully held in Kathmandu last week. The meet brings together students to share their research, learn from one another, participate in academic competition, and make friends from across the region. Despite regional dynamics, SAESM has never missed any year since its inception in 2004, and it may well be unique in that respect in South Asia.
Jeyaranjini lives near Kilinochchi in Northern Sri Lanka with her husband and daughter. They have been rebuilding their lives through the North East Local Services Improvement Project (NELSIP), which uses a Community Driven Development (CDD) approach to tailor projects based on community needs in this conflict affected region.
The project has helped build 611 km of roads, 23 km of storm drains, 400 community public spaces such as markets, parks, and playgrounds, as well providing improved access to water and electricity across Sri Lanka.
“Each community member used to be alone, but now we learn, exchange ideas, and make decisions together,” she said.
South Asia has a strong tradition of local participation
Let me offer a couple of other examples: Nepal’s Self Governance Act in 1999 decentralized services delivery to villages and districts. In Afghanistan, Community Development Councils (CDCs) receive funds, in which they then manage to support their villages.
In post-disaster contexts, CDD has shown to be fast, flexible and effective at re-establishing basic services. In fragile or conflict-affected states (FCS), the approach has also helped rebuild trust within communities, and between communities and governments.
Projects incorporating CDD approaches give control over planning and investments to community groups, and aim to empower communities to deliver services to the poor and vulnerable.
CDD principles can contribute to the realization of the 17 Sustainable Development Goals (SDGs), a roadmap for the international development community to promote sustainable economic, social, and environmental development by 2030.
Currently, the World Bank has 41 active CDD projects worth $6.1 billion in South Asia, including 21 projects in India worth $4.2 billion.
My visit to Pakistan began last week at the enormous Tarbela dam. Straddling the Indus River, this earth- and rock-filled structure is almost 500 feet high and 9,000 feet wide. It is a monument to Pakistan's scientific and engineering ability. It also illustrates the opportunities and challenges facing Pakistan.
I was last in Pakistan in 2011 and I can see that big changes have happened since then.
The country has worked through three tough years that brought improvements in security and a more stable economy. Much of the economic growth has benefited poor people and Pakistan's levels of inequality compare favourably to many middle-income countries.
Speaking to leaders in government, political parties, civil society, the private sector and various thought leaders, I sensed an optimism that the country had found its footing and is moving up the ladder of development.
This optimism is good news. But optimism needs to be supported by actions. Pakistan can move to a higher level of economic growth that reaches all parts of society, including the most marginalised, and thus fulfilling the dreams of a better life for all.
Three opportunities and challenges for Pakistan
In my discussions with the government in Pakistan we focused on three areas of opportunity and challenge: the first is higher growth and jobs. The government wants annual economic growth of 6 to 7 per cent compared to 4.7 per cent achieved in fiscal year 2016. But this will only happen if investment doubles to 30 per cent of Gross Domestic Product (GDP). Investments in energy, such as Tarbela, to end constant power cuts, as well as improvements in the business environment, so that companies hire more people, will be critical to success. A more favorable environment for private investment would open up opportunities for women, youth, and the underserved.
Most geohazards are linked to climate activity such as rainfall and thawing of ice or snow. In many places, recent climatic changes have increased the intensity of rainfall and raised mean temperature, increasing hydrological hazards, such as debris or earth flows, erosion, and floods.
South Asia is particularly vulnerable to geohazards. A study completed in 2012 found that from 1970 to 2000, the number of geohazards quadrupled in the region, resulting in damages of over $25 billion in 2008-2012 alone.
This week, the World Bank Group and its partners will gather at a first-of-its-kind South-to-South learning workshop to devise practical solutions to help South Asia become more resilient to landslide and geo-hazard risks.
Omer Ahsan is a chartered accountant in the making from Waziristan. He first heard about the Youth Employment Program, a free digital skills program offered by the Khyber Pakhtunkhwa Information Technology Board, from discussions on a group chat over Whatsapp, and applied immediately. Within two weeks of completing the digital skills program, Omer has built an online profile and has successfully earned money as a professional content writer.
Pakistan’s Khyber Pakhtunkhwa province is emerging from decades of instability and conflict, and would seem an unlikely place for digital workers to thrive. But with nearly 16 million youth in the province, and few available jobs locally, there is a pressing need to think outside the box in terms of equipping young people with the skills, knowledge and capabilities to take on the future.
In 2015, together with the World Bank, a series of pilot programs were conducted to test a model of digital skill training for youth. Growing connectivity, cloud technology, and the emergence of new business outsourcing models have lowered the barriers to entry for global employment, even for youth in remote parts of Pakistan. The key ingredients to accessing this employment: access to the internet, basic skills, and awareness, and the pilot program tested different approaches to supporting youth to develop online work skills.