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South Asia

An Inclusive Approach to Safeguarding the Basic Needs of the Poor

Mark Ellery's picture

If it were possible to separate public services into a public good aspect and a private good aspect, then government could probably ensure better outcomes for the poor by focusing primarily on the public good aspect.

A public good is both non-rival (the consumption of a unit does not reduce the units available for others) and non-excludable (it is not possible to include some while excluding others from this good). For example an illiteracy free community is a pure public good that demonstrates both non excludable and non rival qualities. It is non-excludable as it is not possible to exclude someone from the benefits of an illiteracy free jurisdiction while including others; and non-rival as one person consuming an illiteracy free jurisdiction does not reduce the stores for others. The private good have both rival and excludable characteristics (the consumption of a unit reduces the availability for others and it is possible to include some while excluding others during consumption). Alternatively a school is a private good - it is rival (there are only a certain number of children you can fit in a classroom) and excludable (you can be excluded if you do not meet certain socio-economic standards).

Assuming that all public services have rival and non-rival, excludable and non-excludable characteristics, it should be conceptually possible to separate the public good aspect and the private good aspect.

First Month on the Job in Bhutan: Trial by Earthquake

Mark LaPrairie's picture

As the newly appointed (and first) World Bank Representative to Bhutan, my first month on the job has been challenging. A magnitude 6.3 earthquake with an epicenter in eastern Bhutan struck on September 21. There were 12 fatalities, including a mother breast-feeding her infant daughter by the hearth in their stone-walled kitchen. While there was fortunately relatively little loss of life, there was considerable damage to houses, schools, health clinics, temples, religious monuments and roads. In Bhutan's mountainous terrain, many affected villages are several hours walk away, so the provision of relief supplies and carrying out reconstruction is difficult.

In collaboration with the Office of the UN Resident Coordinator in Bhutan, Claire Van der Vaeren, who took up her assignment in Bhutan in June, the World Bank fielded a team of disaster experts. Claire and I accompanied the team of six (four from the UN, two from the Bank) to the eastern districts ("dzongkhags") of Mongar and Tashigang. The drive from Thimphu -- Bhutan's capital city of 100,000 people -- to the affected villages in Mongar takes two days.

First Month on the Job in Bhutan: Trial by Fire

Mark LaPrairie's picture

After our rest at the Home Minister, Lyonpo Minjur’s rural ancestral home, the team embarked on the long journey back to Thimphu the next day -- only a couple hundred miles as the crow flies (if even that), yet a two day adventure across high mountain passes and along narrow endlessly winding roads with precipitous drops below. We reached the Swiss Guest House in Bumthang around 7pm, looking forward to hot showers and a meal.

Upon pulling up to the lodge, I received a call on my mobile from my friend Tashi, who was recently appointed by His Majesty to serve on the National Council (senate). Tashi was in eastern Bhutan to support earthquake relief efforts on the part of the National Council. Tashi called to inform me that, Wamrong, the town I lived in 21 years ago when I first came to Bhutan as a volunteer teacher, had mostly burned to the ground that afternoon.

Does South Asia Run the Risk of Rising Inflation?

Eliana Cardoso's picture

I am old enough to remember the days when Latin America was the land of inflation. Hyperinflation in Bolivia, Brazil and Argentina made the news in the 1980s and early 1990s. At that time, Asia was seen as immune to the Latin disease. Since then, much water has gone under the bridge. Inflation came under control in the majority of Latin American countries. Today the median inflation rate in South Asia is more than twice the size of the median inflation rate in Latin America and the Caribbean. (See chart below)

Should South Asia’s policymakers look at this information and wonder whether they are doing something wrong?

In general, the recipe for hyperinflation is the monetization of budget deficits in countries afflicted by political instability or conflict. Even if the threat of mega inflation is far removed from the South Asia scenarios, the combination of big budget deficits and loose monetary policy seems to be present in some countries of the region.

Gross Domestic Product Not Sole Indicator of Progress

Joe Qian's picture

What is Happiness? Many of us equate it with money. However, since 1972, the kingdom of Bhutan under the leadership of its former King, Jigme Singye Wangchuck has measured its developmental success not solely through the economic lens of Gross Domestic Product (GDP) but also through a more complete approach known as Gross National Happiness (GNH). Its laurels were based upon the original four pillars of sustainable development, preservation and promotion of cultural values, conservation of the natural environment, and good governance.

These indicators have become increasingly important over the last three decades as it became apparent that blindly pursuing economic expansion has created growing pains in a number of countries. GNH has appeared to be very successful in Bhutan, a nation the size of Switzerland with a population of around 700,000. With initiatives such as maintaining at least 60% (currently 72%) of the land for forests and conservation, while maintaining 165 indigenous mammal species such as the rare snow leopard, Bhutan also has a fast growing economy.

Government spending on health and education is the highest in the region at 18% and Bhutan boasts a GDP growth rate of 21.4% and a per capita income level that is almost twice as much as much as India’s, although it was much poorer as recently as the 1980’s. Independent sources also seem to echo these sentiments as Business Week magazine rated Bhutan the world’s 8th happiest country.

Incentives and Values in Conflict-Prone Countries

Eliana Cardoso's picture

One of the most extraordinary examples of the use of economic principles comes from the beginning of the 19th century, when England used to send a huge number of prisoners to Australia. The government originally paid the ship captain a pre-determined amount for each prisoner that boarded the ship, but half of them would die during the journey. In 1862, Edwin Chadwik, knowing that people respond to incentives, told the U.K. government to pay captains according to the number of prisoners that actually disembarked in Australia. With this adjustment, the survival rate increased from 50% to 98.5%.

This example illustrates how incentives can do wonders in some circumstances. Yet, human actions are not always guided by the same calculations made by a profit maximizing ship captain. Behavioral economists have emphasized that we respond to a deep ingrained sense of fairness. Culture and values are crucial in understanding human behavior and promoting healthy and stable societies.

How Should We Best Accelerate Growth and Job Creation in South Asia?

Ejaz Ghani's picture

“South Asia continues to grow rapidly and its largest economy, India, is close to becoming a Tiger.”

Sadiq Ahmed and I were inspired to author Accelerating Growth and Job Creation in South Asia when we were asked by the South Asia Chamber of Commerce, SAARC Business Conclave, FICCI, and a number of policy makers, local research institutes, and CEOs to come up with a strategy on what can be done by South Asian countries to accelerate growth and job creation. So we invited the world’s leading scholars to apply their talents to understanding the economies of South Asia. This gave birth to the book.

It is organized along three themes—an overview of South Asia’s growth opportunities and challenges; sources of growth and policies for the future; and the significance of regional cooperation in promoting growth. The essays combine quantitative data with analytical rigor to provide innovative suggestions in terms of policies and institutions that can propel South Asia towards higher growth, while promoting inclusiveness.

South Asia Advances on Visual Tool Comparing Development over Time

Joe Qian's picture

The World Bank released its Data Visualizer tool last week, which compares 209 countries through the lens of 49 development indicators utilizing data ranging from 1960 to 2007. Using three dimensional bubbles whose sizes are proportional to populations and are color coded to the different regions (purple represents South Asia), they move horizontally or vertically based on their achievements on a number of indicators that range from GDP per capita to the percentage of children that are inoculated against measles.

Users will find similarities with the groundbreaking Gapminder World tool that Swedish Health Professor Hans Rosling first presented to the TED Conference in 2006. He concluded that the world is converging and that old notions of contrasting developed country (generally small families and long lives) with developing country (large families and short lives) to be grossly out of date.

Act Responsibly to Save Our Children’s Planet

Dilinika Peiris's picture

“Responsible Actions”, “Scientific Thinking” and “Partnerships to Mitigate and Adapt to Climate Change”…. These are some phrases from my loot bag of thoughts taken away from the World Congress of Environmental Journalists organized by the Asia Pacific Forum of Environmental Journalists in Colombo. The theme of this Congress was “Educate to End Climate Poverty” – Copenhagen Summit and Beyond…..

So what does this really mean to me? I learnt that I am much to be blamed for these changes that are taking place in the climate than any other person, organization or country that is blamed for contributing to this change whether deliberate or not. I felt that all participants in the forum learnt that when they point one finger at someone or a group to blame, they are actually pointing three fingers in the direction of his or herself. I learnt that it’s time to STOP BLAMING and START ACTING.

Ladies Specials

Darshana Patel's picture

The “Ladies Specials” are women-only commuter train recently launched in four Indian cities (New Delhi, Mumbai, Chennai and Calcutta). While not a new practice, public transport exclusively for women is becoming popular. (Mexico City introduced women-only buses in January 2008 and commuters on Japanese trains know a thing or two about this too.)

Harassment on the train or bus is not just an annoying nuisance for women. It influences whether or not a woman chooses to enter the workforce in the first place. (Or maybe whether her family or husband will allow her.)

Changes in economic landscape of a country have led to shifting roles for women, who are increasingly moving outside of the household and into the workplace. These new women workers, often of a younger generation, are now re-shaping what it means to be women in their societies.

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