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In a snap: What the World Bank is doing in South Asia

Alexander Ferguson's picture
Afghan Woman in factory
Afghan woman in factory. Credit: World Bank

Need to know how sustained infrastructure investments could boost Bangladesh’s economy? How the delay in implementing key reforms on the domestic front, a weak trade performance and the recent slowdown in rural wage growth pose risks to growth in India? Or how Pakistan could achieve sustained and inclusive growth through reforms in energy and taxation, and increasing investment?

There is a one-stop place to find out what the World Bank is doing in your country and what it thinks about economic prospects there.

Livability is an economic imperative for cities

Sangmoo Kim's picture
Sarbamati Riverfront Development before
Sarbamati Riverfront Development before
Sarbamati Riverfront Development after
Sarbamati Riverfront development after

Robert Solow once said: “Livability is not a middle-class luxury, it is an economic imperative.” But how related are livability and economic development?  Furthermore, how can we define and measure livability?

Recently as part of the South Asia Urbanization Flagship Report, Leveraging Urbanization in South Asia: Managing Spatial Transformation for Prosperity and Livability, our team compared a sample of South Asian cities with peers from around the world. The report’s framework considered livability (along with prosperity) as being a key outcome of urbanization.

We wanted to highlight that while urbanization has undoubtedly contributed to economic growth in South Asia, its impact on livability is more complex. As they have grown, South Asian cities have faced challenges arising from the pressure of their populations on basic services, infrastructure, land, housing, and the environment.  This has helped to give rise to what the report terms “messy” urbanization, characterized by slums and sprawl, not to mention levels of ambient outdoor air pollution that rank amongst the highest across cities globally.

The report suggests that to have a full understanding of the urbanization process in South Asia, it is necessary to discuss not only the positive productivity benefits that are associated with urban size and density, but also the negative “congestion” forces.  How successfully South Asian cities manage these forces will help to determine the quality of life not only of the region’s current half a billion urban residents, but also of the additional 250 million that will be added over the next 15 years.

Can better spatial planning and management transform South Asian cities?

Jon Kher Kaw's picture
Aerial view of Dhaka
Aerial view of Dhaka

South Asia’s urbanization has been described as “messy, hidden and underleveraged." A lot has to do with how South Asian countries manage their cities’ spatial development.

Having visited many cities in South Asia, the sight of the built environment in the region is a familiar one–a rapid expansion of built-up areas and an accompanying low-density sprawl that has, all too often, gone hand-in-hand with poorly managed transportation systems, planning constraints, underutilized land, and a lack of institutional capacity and resources. These forces result in high land and rental costs that make it extremely challenging for cities to support affordable housing and commercial space, and to maintain a livable public realm.

South Asian Urbanization: Messy and hidden

Mark Roberts's picture

South Asia is not fully realizing the potential of its cities for prosperity and livability, and, according to a new report by The World Bank, a big reason is that its urbanization has been both messy and hidden. Messy and hidden urbanization is a symptom of the failure to adequately address congestion constraints that arise from the pressure that larger urban populations put on infrastructure, basic services, land, housing, and the environment.

South Asia Urbanization Infrastructure infographic

South Asia not realizing full potential of urbanization

Mark Roberts's picture
 
Urbanization Report Cover

Urbanization provides South Asian countries with the potential to transform their economies to join the ranks of richer nations in both prosperity and livability. And, indeed the region has made strides in the early part of the century when its urban population grew by 130 million. Average GDP per capita is up and absolute poverty is down.

Urbanization in South Asia: How is it going?

Mark Roberts's picture
 World Bank
Street in old Delhi, India. Credit: World Bank
South Asia’s urban population grew by 130 million – more than the population of Japan – between 2001 and 2011, and is expected to rise by almost 250 million people by 2030. If recent history is any guide, this trend could propel the region toward greater growth and prosperity.
 
A key characteristic of urbanization is that the coming together of people and enterprises in towns and cities  -- a process known as agglomeration – improves productivity and spurs job creation. That’s particularly the case in manufacturing and services. Over the long term, successful urbanization is accompanied by a convergence of living standards between urban and rural areas as economic and social benefits spill beyond urban boundaries.
 
So how is South Asia doing in realizing the potential of its cities for prosperity and livability? What are the challenges facing the region’s countries as their urban populations grow? Are they meeting those challenges or are policy reforms needed?  And, if so, what type of reforms?
 
On September 24, the World Bank will release a new report titled, “Leveraging Urbanization in South Asia: Managing Spatial Transformation for Prosperity and Livability.
Urbanization in South Asia Report Cover
Urbanization in South Asia Report Cover.
Credit: World Bank

Which South Asia do you live in?

Prabha Chandran's picture




This blog is part of the series #OneSouthAsia exploring how South Asia can become a more integrated, thus more economically dynamic region. The blog series is a  lead up to the South Asia Economic Conclave, an event dedicated to deepen existing economic links through policy and investments in regional businesses.

Which South Asia do you live in? The one which offers world-class metros and malls, super-specialty hospitals, gourmet eateries and designer homes where servants make your meals, drive your car or clean your mess? 

Or do you live in the South Asia where sanitation, water and electricity are a luxury, where filth, ignorance and violence means death comes early and more frequently from illness, poverty and natural disasters? Statistically, the latter is more likely.

Having lived in Southeast Asia, where the emergence of the Tigers has transformed the lives of millions of poor through investment in human development, infrastructure and exports producing high growth rates, the visible poverty and chaotic streets of South Asia are troubling. So, too, is the contrast provided by India's dollar billionaires -- the third-largest rich man's club in the world.

Five lessons of regional integration from Asia, America, and Africa

Sanjay Kathuria's picture
More than 50% of today’s international trade goes through regional trading arrangements.  While trade is a critical component of regional integration, integration has several other dimensions including energy cooperation and intra-regional investment, to name a few.  After carefully examining cases of regional integration in Southeast Asia, the Americas and Africa, we present five lessons for South Asia.

Lesson 1: Facilitate trade in goods and services

Despite falling tariffs, there is still a large gap between the price of the exported good and the price paid by the importer, largely arising from high costs of moving goods, especially in South and Central Asia. On a percentage basis, the potential gains to trade facilitation in South and Central Asia, at 8 percent of GDP, are almost twice as large as the global average. High trade costs have contributed to South Asia being the least integrated region in the world.

FIGURE 1: Intra-regional trade share (percent of total trade), 2012

In the ASEAN region, most countries have established either Trade Information Portals or Single Windows that have enhanced trade facilitation, reduced trade costs and enhanced intra-regional trade. A Trade Information Portal allows traders to electronically access all the documents they need to obtain approvals from the government. A Single Window (a system that enables international traders to submit regulatory documents at a single location and/or single entity) allows for the electronic submission of such documents. These single windows, using international open communication standards, facilitate trade both within the region and with other countries using similar standards.

In services, one barrier to trade involves the movement of skilled workers, accountants, engineers and consultants who may move from one country to another on a temporary basis. The Southern Common Market (Mercosur)’s Residence Agreement allows workers to reside and work for up to two years in a host country. This residence permit can be made permanent if the worker proves that they can support themselves and their family.

Wanted! Your proposals on Regional Integration in South Asia

Sanjay Kathuria's picture
Wanted! Your proposals on Regional Integration in South Asia



Home to Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, South Asia is one of the fastest growing regions in the world and yet one of the least integrated. Intra-regional trade accounts for only 5% of South Asia’s GDP, compared to 25% of East Asia’s. Meanwhile, with a population of 1.6 billion, South Asia hosts one of the largest untapped talent pools.

To encourage young researchers in the region who aspire to use their research to inform policy making, the World Bank Group calls for research proposals on South Asia regional integration. Proposals will be carefully reviewed and the most suitable proposals (no more than five overall) will be awarded with a grant based on criteria listed below. An experienced researcher from the World Bank’s research department or an external academic will mentor and guide the young researcher in the implementation of the research.[1]
 

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