Imagine you are an ER doctor trying to treat a very ill patient who has no medical history and only a vague recollection of symptoms. What would you do if you were the doctor? Trust your gut? Trust that the patient has chronicled his symptoms accurately enough to warrant an accurate diagnosis? This is perhaps how policymakers and aid workers felt back in 2001 when they were deciding where to begin the reconstruction of Afghanistan.
Information and Communication Technologies
Last week, I discussed the optimistic and pessimistic views of South Asia's development potential. As I highlighted in my book, Reshaping Tomorrow, South Asia is among the fastest growing regions in the world, but it is also home to the largest concentration of people living in conditions of debilitating poverty, human misery, gender disparities, and conflict.
I also ask if South Asia is Ready for the Big Leap. The optimistic view is that India will achieve double-digit growth rates benefiting the rest of South Asia. The pessimistic view is that growth will be derailed by structural and transformational challenges. In this entry, I will make some suggestions on how South Asia could realize the optimistic view.
What can be done?
Leveraging Technology and Partnerships to Promote Equity in South Asia
Wednesday, April 18 at 9:00AM
The Next South Asia Regional Flagship on equity and development (March 2013) will feature an eBook which will combine interactive multimedia as a part of the World Bank Open Data and Open Knowledge initiatives. This signals a new era in development analysis is produced and shared.
Please RSVP to Alison at firstname.lastname@example.org by Tuesday, April 17th to attend.
Twitter hashtag: #wbequity
Breaking Down Barriers: A New Dawn on Trade and Regional Cooperation in South Asia
Thursday, April 19 at 3:00PM
I’ve just concluded a discussion on addressing youth unemployment around the world with experts at the Global Youth Conference currently happening and wanted to hear your thought as well as share some of my own on South Asia. Indeed, South Asia has grown rapidly and has created more and mostly better jobs. The region created 800,000 new jobs per month in the last ten years boosting economic growth and reducing poverty. Arrive in any South Asian metropolis and you’re often hit by the richness of activity throughout its busy streets.
The region’s coming demographic transition of more young people entering the work force is expected to contribute nearly 40 percent of the growth in the world’s working age (15—64) population over the next several decades. However, youth in South Asia still face many challenges during their transition to adulthood including malnutrition, gender inequality and lack of access to quality education. More working age people with less children and elderly dependants to support will either become an asset for the region to continue growing or a curse depending on the enabling environment for the creation of productive jobs.
- Sri Lanka
- South Asia
- Public Sector and Governance
- Private Sector Development
- Macroeconomics and Economic Growth
- Information and Communication Technologies
- Financial Sector
- Agriculture and Rural Development
- Kalpana Kochhar
- chief economist
Recently, India has seen a heated debate on the entry of foreign direct investment (FDI) in the country’s $400 billion retail market. In November 2011, the government proposed a policy change to open up the country’s multi-brand retail segment -- for retailers such as Wal-Mart and Carrefour. Foreign investors were to be allowed to own up to 51 percent of a multi-brand retailer if they invested at least $100 mn, with half spent on infrastructure development in India. Within weeks of the announcement, the government suspended the decision amid protests from opposition parties and small shopkeepers citing concerns over large scale job losses, especially in the small, unorganized retail sector.
What is FDI?
Foreign direct investment (FDI) refers to the net inflows of foreign investment to acquire a lasting management interest (more than 10 percent of voting stock) in a domestic company. In 1997, the government permitted 100 percent FDI in the wholesale cash and carry trade, in which customers arranged the transport of goods from wholesalers and paid for goods in cash (not credit), on a case-by-case basis.
Trade relations between India and Pakistan appear set to improve significantly with Pakistan likely to grant India Most Favored Nation (MFN) status. The potential gains from easier trading relations are considerable for both countries. In 2009-10, official trade between the two stood at $2 billion. Studies suggest this volume could be much higher, absent formal and informal barriers. For instance, a recent SAARC report estimates trade potential to be $12 billion.
What exactly does MFN status mean?
All WTO members are bound to grant MFN treatment to member countries with respect to trade in goods. India granted Pakistan MFN status in 1996, but Pakistan held back, citing strategic considerations. Despite granting Pakistan MFN status, India continued to impose high tariffs on goods of interest to Pakistan—textiles and leather. Thus, merely according MFN status does not imply easier trade. So, does Pakistan’s offer matter? Yes, it does. It signals enthusiasm, goodwill, and a keenness to build peaceful and productive economic and political relations in the region.
Where will the gains come from?
My friends and I often have casual chats at the university café and cafeteria about random topics ranging from life, the future, jobs and wherever else the conversation leads us. Recently, I participated in a discussion conducted by a research company where they asked for insights from University seniors and recent graduates about our aspirations.
There were 7 of us in the group from the University of Colombo, Kelaniya, Jayewardenepaura and Moratuwa. The representative from the research company asked about our goals. Though I’ve known them for 3 years, this is the first time I heard them seriously talk about their ambitions and goals in life. Most of them have very lofty goals and objectives. We were asked to list important considerations for potential jobs. This is what we came up with.
In 2006-07, a procurement review carried out on the Technical Education Quality Improvement Project (TEQIP) in India shocked and surprised project authorities as well as the World Bank. Even in the third year of implementation, participating Engineering institutes were unable to follow the agreed processes and procedures. That situation eventually lead to the development of web based PMSS (Procurement management Support System) currently being used in TEQIP Phase 2 program.
The procurement Review Consultants reported an astonishing 56% variation and resulting non compliance of procedures in the sample of reviewed contracts. A series of further assessments and introspection brought out the main issues that plagued the procurement system. These were:
(i) Geography: challenges of ensuring consistency and adherence to agreed procedures in projects that covered a wide area between hundreds of institutions as seen institutions in different states following their respective procedures , using inappropriate methods of selection, etc.
Let’s be honest. As a youth growing up in Nepal, it is sometimes very hard to get people – and by people I mean seniors in decision-making positions - to take you seriously. It is even more difficult to get them to listen to your ideas or acknowledge you as an important demographic, capable of more than burning tires and picketing politicians.
In the one week I spent in Washington DC, at the World Bank and IMF annual meetings, rushing madly between meetings, presentations, discussion forums and Indian restaurants, I learnt that this deep-rooted attitude is changing. And fast.
Maybe it is the Arab Spring. Maybe it is the realization that without embracing youth into the South Asian market economy, we will have made zero progress in terms of development even ten years down the line. Or maybe, it just makes sense – maybe we are finally realizing the inherent interconnectedness in our world. Realizing that one project from a little village in Nepal is directly linked to the socio-economic structure of our communities, countries and regions.
It is India’s future that keeps Mr. Kapil Sibal, India’s Human Resource Development (HRD) Minister, awake. Last week, the World Bank hosted Mr. Kapil Sibal who spoke to a 120 strong crowd about “India and the World – Lessons Learnt and Contributions Towards the Global Knowledge Economy. “ During the lively discussion chaired by World Bank’s Tamar Manuelyan Atinc (Human Development Network Vice President) and moderated by Michal Rutkowski (South Asia Human Development Director. Mr. Sibal highlighted how India can contribute to the global knowledge economy.
Mr. Sibal, a well known Indian politician, is famous for his effort in enacting the Right of Children to Free and Compulsory Education (RTE) Act, which provides every child between 6-14 years free and compulsory education. With so many challenging issues to be solved for education in India, I was impressed with what Mr. Sibal has implemented so far as well as his grand vision for leading the country to achieve continued growth and prosperity.