The World Region
Country Partnership Strategies are a central element of the World Bank Group’s effort to act in a coordinated way to end extreme poverty and boost shared prosperity. But they can be hard for the average person to navigate—some are three-volume tomes, and others can be dense with technicalities. When we make them inaccessible to the general public, we often forgo a critical opportunity to build broad support for our work.
This year, the Bank Group’s India team decided to take a more innovative approach—one that has the potential to directly engage the public and perhaps even spur others to join us in our cause. In producing the Country Partnership Strategy for India, the team opted not to create a simple PDF for the website. Instead it produced a well-designed book, flush with easy-to-understand graphics and appealing photographs. It also produced a highly interactive web application that visualizes the strategy—and tracks the strategy’s progress towards its goals over time. The tool shows exactly how individual projects along with knowledge and advisory work line up with our twin goals, and what outcomes we expect in each instance.
My eighty five year old uncle is the most avid technophile I know. He plays with all forms of digital media, including social media platforms such as the Facebook and LinkedIn. I find his mindset to be in total contrast to a majority of mid- to end- career colleagues I work with, who seem to be unbelievably social media phobic! I can’t help but compare the two and wonder why.
Last week I had the privilege of being a participant at a regional workshop where some thirty plus colleagues were asked to share their views on using social media. Needless to say, the responses were quite interesting. The fear of the unknown seemed to loom large among participants who I felt gave various other reasons to cover up this fear.
“I don’t have time”, “it’s a complete waste of time”, “what’s this big deal about using social media”, “it can be counterproductive”, “I am not interested in other people’s things” and “I don’t know how to use it for my professional development” were some of the key concerns I heard being aired as barriers to entry into the world of social media.
Being a very active social media user I thought I should share my experiences candidly…
The standard definition of political instability is the propensity of a government collapse either because of conflicts or rampant competition between various political parties. Also, the occurrence of a government change increases the likelihood of subsequent changes. Political instability tends to be persistent.
Economic growth and political stability are deeply interconnected. On the one hand, the uncertainty associated with an unstable political environment may reduce investment and the pace of economic development. On the other hand, poor economic performance may lead to government collapse and political unrest. However, political stability can be achieved through oppression or through having a political party in place that does not have to compete to be re-elected. In these cases, political stability is a double edged sword. While the peaceful environment that political stability may offer is a desideratum, it could easily become a breeding ground for cronyism with impunity. Such is the dilemma that many countries with a fragile political order have to face.
Political stability is by no means the norm in human history. Democratic regimes, like all political regimes, are fragile. Irrespective of political regimes, if a country does not need to worry about conflicts and radical changes of regimes, the people can concentrate on working, saving, and investing. The recent empirical literature on corruption has identified a long list of variables that correlate significantly with corruption. Among the factors found to reduce corruption are decades-long tradition of democracy and political stability. In today’s world, however, there are many countries that combine one of these two robust determinants of corruption with the opposite of the other: politically stable autocracies or newly formed and unstable democracies.
Some see political stability as a condition that not only precludes any form of change, but also demoralizes the public. Innovation and ingenuity take a backseat. Many seek change in all sectors of life--politics, business, culture--in order to have a brighter future through better opportunities. Of course change is always risky. Yet it is necessary. Political stability can take the form of complacency and stagnation that does not allow competition. The principles of competition do not only apply to business. Competition can be applied in everything – political systems, education, business, innovation, even arts. Political stability in this case refers to the lack of real competition for the governing elite. The ‘politically stable’ system enforces stringent barriers to personal freedoms. Similarly, other freedoms such as freedom of press, freedom of religion, access to the internet, and political dissent are also truncated. This breeds abuse of power and corruption.
Vietnam, for example, is controlled entirely by the ruling party. The economy is one of the most volatile in Asia. What once was thought of being a promising economy has recently been in distress. Vietnam’s macro economy was relatively stable in the 1997-2006 period, with low inflation, a 7 to 9 percent total output expansion annually and a moderate level of trade deficit. But Vietnam could not weather the adverse impact from the 1997-98 Asian financial turmoil, which partly curbed the FDI flow into its economy. Starting in late 2006, both public and private sector firms began to experience structural problems, rising inefficiency, and waste of resources. The daunting problem of inflation recurred, peaking at an annualized 23 percent level for that year.
When it comes to primary education, there are many reasons to be optimistic. Enrollment has jumped across the world, and more children are in school than ever before. In the last decade, the number of out-of-school children has fallen by half, from 102 million in 2000 to 57 million in 2011.
But is showing up to school enough?
According to UNESCO’s Education for All Global Monitoring Report, almost one quarter of the youth in the developing world cannot read a sentence. In countries with large youth populations, this can leave behind a crippling ‘legacy of illiteracy’. Despite almost universal primary enrollment in India – 97 percent – half of second grade students cannot read a full sentence, and almost a quarter cannot even recognize letters.
Reading is a foundational skill. Children who do not learn to read in the primary grades are less likely to benefit from further schooling. Poor readers struggle to develop writing skills and absorb content in other areas. More worryingly, learning gaps hit disadvantaged populations the hardest, limiting their economic opportunities. In Bangladesh, only one in three of the poorest quartile is literate, compared to almost nine out of ten in the richest.
Foreign aid in its modern form originated in the early 1940s. Following the Second World War, Europe faced a critical shortage of capital for physical reconstruction. The response was the commonly known Marshall Plan under which the USA transferred some 2-3% of its national income during the peak years to help reconstruct Europe. The achievements under the Marshall Plan spawned hope about the effectiveness of foreign aid in other contexts. The attention of rich nations turned to the emerging independent developing nations in the 1960s. The multilateralism of aid at the time was seen as more efficient and less political than bilateral aid leading to considerable expansion of the activities of the UN, World Bank, and other multilateral agencies.
Historically there have been many who claim that not enough aid is given. The immediate post-War period witnessed large-scale funding through the Marshall Plan and growing aid to developing countries, focusing on technical assistance. In 1951 a UN commission recommended an increase of aid, to about $5 billion a year, to help countries increase economic growth to 2%. The most commonly quoted Partners in Development report argued for an increase in aid to 0.7% percent of Gross National Income of donors and to increase the efficiency of aid.
Conditions changed abruptly towards the end of the 1970s with the second oil shock, leading to the international debt crisis. Macroeconomic imbalances became widespread among developing countries. Focus in development strategy and policy shifted to internal policy failure. Achieving external and internal balance was widely perceived as an essential prerequisite for renewed development. Trade, not aid, became the dominant slogan among many leaders and economists. The optimism around 1970 was followed by ‘structural adjustment’ and stabilization of economies, and ‘aid fatigue’. Nevertheless, throughout the 1980s there were calls for increasing aid. The 1990s witnessed sharp reductions in Overseas Development Assistance (ODA) with the end of Cold War and tightening budget constraints in donor countries.
A major convergence of economic and political factors around the early 1990s led to a widespread feeling of there being a problem in the field of aid-promoted development policy. Policymakers at a global level faced a new set of problems in the context of a shift arising from the end of the Cold War. Aid could move away from being regarded largely as a geopolitical strategic tool. In addition, the Asian economic crisis and the lackluster performance of sub-Saharan Africa posed serious challenges.
Has foreign aid been helpful for development? What helps and hinders it? What does the evidence say?
The key challenge facing foreign aid globally is its effectiveness.
Research on aid effectiveness has focused on outcomes such as a country’s economic growth or quality of institutions. These studies came to mixed conclusions over whether aid can effectively promote economic development.
Microeconomic evidence paints a reasonably positive picture. The World Bank’s Independent Evaluation Group (IEG) finds that the average rates of return to aid are generally above 20%. Evidence based on randomized program evaluation techniques is also largely positive, indicating that aid-financed interventions can generate substantial benefits for individuals.
See also: Anniversary of the New Delhi Attack Reminds Us that Tackling Violence is Urgent
December 16, 2012 will in the foreseeable future be remembered as the day in which six men savagely gang raped a 23-year old female student on a bus in New Delhi. The young woman died from her injuries 13 days later. The event shocked the nation and sparked unprecedented uprisings in the Indian capital and across the country. It put the international spotlight on India and reminded us that violence against women remains a leading cause of female mortality worldwide.
Today, on the one-year anniversary of what is simply referred to as the “Delhi Rape”, we are compelled to pause and reflect. Four men were sentenced to death for the crime in September – did this bring closure? Beyond the protests and public appeals for change, has there been meaningful change in India?
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.
World Bank India has just launched its Facebook page! We are extremely excited at the prospects that social media channels like Facebook bring in making our communication with the outside world more dynamic, real time, interactive and conversational in style. It will surely add a new dimension to the way we communicate. The link to the page is http://www.facebook.com/WorldBankIndia and we’d like to hear more from you!
Tomorrow, we're launching an online discussion on what are the prospects for advanced and developing economies of the world in the current global economic situation on the wall of our Facebook page.
Nobel Laureate Andrew Michael Spence, who was also the Chairperson of the Growth Commission will lead this online discussion and Mr N. Roberto Zagha, World Bank Country Director in India, will moderate the discussion.