The 2004 Indian Ocean Tsunami – Triggering engagement in Disaster Risk Management (DRM)
In 2004 December, Sri Lanka faced the worst disaster in its history - the Indian Ocean Tsunami. More than 35,000 people lost their lives and around 5,000 people went missing. At the time of the Tsunami, Sri Lanka did not have a proper legal and institutional mechanism to manage disaster risk. In the aftermath of the catastrophe, the Government made very serious efforts to establish a mechanism to avoid dramatic loss of life in future disaster events.
Subsequently, the Disaster Management Act was passed and the National Council for Disaster Management, chaired by the President, was established. A Ministry of Disaster Management (MoDM) was created and charged with the disaster risk management (DRM) portfolio and the Disaster Management Centre (DMC) was established July 2005 to implement DRM programs across the country.
With these mechanisms in place, the Government began strengthening disaster preparedness, especially for tsunamis. Three pieces were put in place including: i) development of a tsunami early warning system; ii) implementation of awareness raising programs, from the grassroots to national levels; and, iii) regular evacuation drills were conducted in all coastal villages. The system has proven successful as the DMC issued Tsunami evacuation warnings in September 2007 and April 2014, which resulted in the safe evacuation of coastal communities.
Tax revenue growth in Bangladesh this year has been one of the lowest in recent years. There is now demand for a cut in corporate income tax rate with the forthcoming FY15 budget. Is this a good idea from a fiscal point of view?
Whether or not a tax-cut will increase or lower tax revenues depend on the tax rates and the tax system in place. If tax rates are in the prohibitive range, a tax cut will result in increased tax revenues. Arthur Laffer distinguished between the arithmetic effect and the economic effect of tax cuts. The arithmetic effect means that a lowering of the tax rate will result in lower tax revenues by the amount of the decrease in the rate. The economic effect identifies a positive impact of lower tax rates on work, output and employment which expand the tax base. If tax rates that are currently in the prohibitive range are lowered, the economic effect of a tax cut will outweigh the arithmetic effect and revenue collection will increase with tax cut.
After visiting a government office, residents in Punjab may be surprised to find a familiar voice on the phone – their Chief Minister. “You have recently registered property,” the voice of Shahbaz Sharif booms, “Did you face any difficulties? Did you have to pay a bribe?” (Hear the robo-call here!)
It is an uncomfortable question – but one that tackles a stubborn social issue in Pakistan. In a country of 180 million, a culture of bribery and pretty corruption plagues public service delivery.
When visiting a land services official, a staggering 75 percent of households reported paying a bribe, according to Transparency International. Over half of households said they bribed the public utilities or a police officer in the last year. Endemic corruption is not just a drag on economic activity and poverty reduction efforts – it erodes trust between citizens and the state.
The much anticipated Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (“the Act”) has just come into force in India on January 1st, 2014. Unlike the replaced 1894 legislation, this act addresses the rehabilitation and resettlement of those who depend on land, in addition to land owners. As emphasized in its title the new act places a greater emphasis on transparent processes at various stages: for example, through its mandatory social impact assessments, public hearings, and dispute resolution mechanisms.
The other key emphasis in the act’s title refers to a new compensatory mechanism. The new act now provides for up to two times market value, against one time in the previous act and this figure is then doubled by applying a one hundred percent “solatium” against 30% in the previous act (additional compensation). Though people get more compensation under new act, an increase in multiplier does not address the fundamental question of determining “market value” in a country where registered values under-represent land purchase price to evade high stamp duties. The challenge is exacerbated in rural areas where there are fewer land transfers, and therefore fewer registered sales deeds to use as reference points. In such situations, a valuation that is perceived to be more “fair” can be found only through consultations and dialogue, as demonstrated by two case studies from World Bank financed projects in India:
Businesses generally stand little chance of doing well when politics is not stable. Political stability is a necessary condition for an enabling business environment. What can the business community do to help achieve sustained political stability? Experience shows more often than not they fail to do so. What keeps the private sector divided even when both their collective and personal interests are directly at stake? Such an apparent puzzle can be explained by the soft budget constraint syndrome interacting with cronyism.
The term “soft budget constraint” (SBC) was originally conceived by the economist, Janos Kornai. The concept has since been regularly invoked in the literature on economic transition from socialism to capitalism. Now the concept is increasingly acknowledged to be pertinent well beyond the realm of socialist and transition economies. A host of capitalist phenomena, ranging from the collapse of the banking sector of East Asian economies in the 1990s and the business rescue packages seen in the midst of the recent global financial crises can be usefully analyzed in SBC terms.
The syndrome is at work only when organizations can expect to be rescued from trouble, and those expectations in turn affect their behavior. The more frequently financial problems elicit support in any part of the economy, the more organizations will count on getting support themselves. The government may from time to time announce they will break with past practice and refrain henceforth from bailouts. But such announcements have little effect unless combined with some institutional change that lends credibility to their claims.
SBC syndrome alone cannot explain why business groups do not react collectively to political adversities. The divisive force in this process comes from cronyism.
Cronyism normally means some of those close to political authorities receive large economic favors. The most visible ones usually entail ownership of a business or its operation, such as the privatization of state-owned enterprises (SOEs). More frequently, however, economic entitlements are provided through privileged access to governmental favors. The most valuable are the provision of monopoly or quasi-monopoly positions and the extension of domestic credit at highly subsidized terms. Favoritism in awarding government contracts is also important and may be as significant as the others.
What does open data and development mean for Afghanistan?
Last November, the first open data mission revealed Afghans’ interest and commitment to foster knowledge sharing, collaboration and openness for a broader and targeted engagement in Afghanistan. In my blog, Afghanistan’s First Open Data Dialogue Delivers, I described my first-hand experience on Afghans enthusiasm about improving data dissemination, national dialogue and partnership between users and producers of statistics, and the drive for more effective aid and technical assistance through better coordination and alignment to the agreed National Statistical Plans.
“Ghaas Katne Khurkera, aayo joban hurkera…” (A Nepali folk song)
It would be an injustice to my childhood if I said that this song wasn’t a part of my growing up. Even before I knew the title of the TV drama, I knew this song by heart. I, along with my friends, would happily play and sing along to it. This was a famous song from a tele-series played by Nepal’s most celebrated comedians Madan Krishna Shrestha and Hari Bansha Acharya. Like this song, Madan Krishna and Hari Bansha, endearingly abbreviated as “MaHa” has been a household name to most Nepalis, either in Nepal or residing abroad.
They have, however, been different from other Nepali comedians- their comedy stand-ups or dramas have heavy dose of social morals in their highly creative and hilarious skits. After a break of two years, they are now back on TV with one such creation that infuses issues of social accountability with comedy. The tele-drama is titled “Aan” - A Nepali expression for opening mouth – metaphor for eating/misusing government resources.
“The subject is very dry. This is not like soap operas where the characters have highly dramatic lives. We have to heavily rely on artists’ performances as it should be technically sound to fetch audience attention,” says Hari Bansha Acharya, the producer and the actor for “Aan”. “We have previously worked on anti-corruption but this is the first time we are reflecting the real scenario at the village, district and national level. This is a virgin topic for TV and we hope we will be able to bring the kind of result that we are anticipating.”
Bangladesh's economy is currently subject to probably the harshest test of resilience it has faced in recent memory. In the past, growth continued to be resilient despite several external shocks that slowed exports, remittance, and investment. Bangladesh’s resilience to global shocks came from strong fundamentals at the onset of the crisis, competiveness of exports and migrant labor, relatively under-developed and insulated financial markets, and a pre-emptive policy posture. Bangladesh has a robust disaster management capacity to deal with natural disasters, undertake rescue operations, and conduct post-disaster relief and rehabilitation.
Considering the costs, it was never obvious to me how investments in a national identity program might add development value in a resource-crunched country like Nepal with so many competing priorities. It clicked when a senior official at Pakistan’s National Database and Registration Authority (NADRA) said, “The national identity program has allowed us to construct one big family tree of all Pakistani nationals. It is helping Pakistan establish a relationship between each member of our extended family and to redefine our obligations to one another — state to citizen and citizen to citizen.”