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Poverty

Mister 100%

Mark Ellery's picture

As a policy target, there is little doubt that it is desirable that government should ensure services for all. Breaking this down to a simple target of 100% access to a service, some local governments are showing that ensuring services for all is achievable, when they deploy their social and legal authority to leverage existing service providers to ensure a basic service for all and then increase the quality of the service (i.e. 100% by 100%).

In the remote North West Corner of Bangladesh in the poor and monga (hunger) prone District of Kurrigram there is a remote yet remarkable upazila called Rajarhat. Rajarhat was the first upazila (subdistrict) in the country to be declared Open Defecation Free (i.e. 100% sanitation) in 2004. In the light of the Government’s target of education for all, the Rajarhat upazila (subdistrict) is now seeking to be the first upazila in the country to achieve universal enrollment (i.e. 100% of children turning 6 are enrolled in school).

To understand this phenomena we visited one of the Union Parishads (UP) (Council) called Omar Majid and spent some time with the UP Chairman Khanbaker Abdul Hakim. This Union Parishad claims to have achieved:

100% sanitation (achieved in 2004) sustained through ward task forces, hygiene education and public latrines with MGSK and WaterAid.
100% registration at birth (achieved in 2007) and subsequently introduced as a pre-requisite for the enrollment of children in school.

Life and Death in South Asia

Eliana Cardoso's picture

In the film, Venus, an old and frail Peter O’Toole discovers the Greek goddess in the guise of his best friend’s niece. The ironic and good humored story explores the theme of the games played in a mutual seduction between the older man with experience, money and a nostalgic yearning for carnal desire and the young woman who soon finds out the power she wields and negotiates three kisses in return for a pair of earrings. In the final scene, wearing only one of his boots on a cold beach, O’Toole feels the caress of the sea’s salty foam with the sole of his foot and smiles. His face expresses the happiness of someone who knows the joys of being alive.

It is impossible to weigh up Peter O’Toole’s smile, measuring the degree of his happiness or comparing it to what you would feel if walking barefoot in the sand. But, the idea that his feelings can be measured as a metric has become fashionable, ever since the King of Bhutan decided that GDP fails to portray the well-being of his subjects and summoned a team to create the Gross National Happiness index.

What Can Sri Lanka and Africa Learn from Each Other?

Shanta Devarajan's picture

The title of this post may seem a bit odd. What can an island of 20 million people and a diverse continent of 47 countries have in common? The answer: Both were thought to have initial advantages that would generate rapid economic growth; instead, they have fallen painfully short of expectations. 

In the African case, the advantage was its rich natural resources such as oil and minerals. But instead of exploiting this potential ticket to poverty reduction, Africa’s natural resource producers have seen their per capita income grow more slowly than that of non-mineral countries. Nigeria is a case in point. Its per capita income in 1970 (before the oil boom) was $913; today it is $454.

Sri Lanka’s asset is its human resources—reflected in the high levels of literacy and low levels of child and maternal mortality that have stood out since the 1960s. Like Africa, Sri Lanka has been an exercise in disappointment. In fact, there is no other country with a lower infant mortality rate and a lower per capita income than Sri Lanka.

The question for Africa and Sri Lanka is therefore how to manage the enormous assets they posses in a way that translates into sustainable wellbeing for their populations?

Did You Kill Somebody Tonight?

Eliana Cardoso's picture

“Did you kill somebody tonight?” Durga Pokkherel asks the police officer while in police custody in Nepal, after hearing terrified screams. As told in her memoir, Shadow over Shangri-la, the police officer replies: “You always imagine something big. He is not killed. As a routine treatment he was enclosed in a sack and beaten. But he would not speak a word, so some other police friends put a couple pins in his fingers. That is all.”

The dialogue took place in late 1990s, when both Maoists and the state committed human rights abuses in Nepal, a country on the top of the world, where caste, ethnicity, gender status and regional disparities have largely determined inequality. Social exclusion fostered state fragility, a Maoist rebellion, and a civil war that lasted for ten years (1996-2006).

After an unpopular royal coup in February 2005, the international community put pressure on the government to accept international monitoring under the UN Office of the High Commissioner for Human Rights. The monitoring created the space for peaceful political protest and, in April 2006, the King restored Parliament. Civil war came to an end with elections and the declaration of the Federal Republic of Nepal in May 2008.

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 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.

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.

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