Syndicate content

Poverty

What will it take to realize Pakistan’s potential?

Sri Mulyani Indrawati's picture
Sri Mulyani Indrawati meeting beneficiaries
Meeting with beneficiaries of the Benazir Income Support Programme in Lahore, Pakistan.

As Pakistan readies to celebrate its independence day, we can all feel satisfied about progress in restoring macroeconomic stability, but should also realise that the country can and should do much better. Pakistan has many assets, of which it can make better use — from its vast water and river endowment, to its coastline and cities, to its natural resources. And there are upsides: a growing middle class, a lively informal economy and a strong influx of remittances. Pakistan can also be proud of the first peaceful transfer of power between two civilian governments. But to reach its full potential, Pakistan needs to focus on two critical areas, both obvious and urgent. It needs to ensure that its people have the means to fully participate in and contribute to the economy. And it needs to integrate itself more, globally and regionally.

The first challenge is demographic. As a result of rapid population growth, 1.5 million youngsters reach the working age each year. The question is, will the private sector be able to provide the jobs they need and want? And will the youth have the skills to get good jobs? Pakistan must do far better in education. Primary school net enrollment is about 57 per cent, well below other South Asian countries. Enrollment drops by half in middle school, with much lower levels for girls and children from poor families. This is not a good foundation to build on.

It is not surprising then that Pakistan also struggles to give all its citizens the opportunity to participate in building better lives for themselves. Only 25 per cent of women participate in the labour force, compared to 50 and 80 per cent in most developing countries. Women and girls deserve better. Research shows that girls with little or no education are far more likely to be married as children, suffer domestic violence, and live in poverty. This harms not only them, but also their children, their communities and the economy. Greater gender equality can enhance productivity and improve development outcomes for the next generation. It is smart economics.

Pakistan has taken steps to empower women. The Benazir Income Support Program, supported by the World Bank, has provided millions of women with national ID cards and makes direct payments to them, strengthening their ability to take decisions and move out of poverty.

Nepal post-earthquake response: It’s time to roll up our sleeves

Marc Forni's picture
Nepal Earthquake Reconstruction
Relief workers in the town of Sankhu in the Kathmandu Valley, June 2015. Credit: Yann Doignon / World Bank

It has been exactly three months since the Nepal earthquake first struck and one month since the donor conference. The humanitarian phase is nearing its end, the international presence is starting to move onto the next crisis, and high level international dignitaries have now returned to their capitals. The earthquake is no longer making headline news and the government is getting back to business as usual, albeit with the huge challenge of rebuilding.
 
Now is time to take stock of the events from the past three months. During a crisis, there is no time for those involved to look back at what has been accomplished. What matters is the next immediate action and challenge to overcome.  Last week, in the Bank headquarters, our management and some members of the earthquake response team presented the progress achieved thus far to an overcrowded room. This was my first opportunity to reflect on the disaster and I was almost overcome with emotion. Be they senior government officials, the Bank’s country office team, first- emergency responders, or Nepalis, it is difficult to articulate just what folks have overcome in Nepal.

Lighting up the future in Bangladesh

Yann Doignon's picture

Children using a computer powered by solar energy

Night falls in Dhaka. Commercial streets glow with lights and the neon-lit stores and restaurants are abuzz with shoppers enjoying a break from Ramadan. This is a great visual spectacle punctuated by the incessant honking of colorful rickshaws.

But the reality is different right outside the capital. Sunset brings life to a halt in rural areas as about 60 percent of rural households do not have access to grid electricity. Kerosene lamps and battery-powered torches are widespread yet limited alternatives, their dim light offering limited options for cooking, reading or doing homework.  

It is a sweltering hot day when our team sets out to visit a household of 14 in the village of Pachua, a two-hour drive from Dhaka. Around 80% of the villagers have benefited from the solar panel systems to access electricity. The Rural Electrification and Renewable Energy Development Project (RERED), supports installation of solar home systems and aims to increase access to clean energy in rural Bangladesh.
 
We’re accompanied by Nazmul Haque Faisal from IDCOL, a government-owned financing institution, which implements the program. “This is the fastest-growing solar home system in the world,” Faisal says enthusiastically, “and with 40,000-50,000 new installations per month, the project is in high demand.”

We’ve now reached our destination and Monjil Mian welcomes us to his house, which he shares with 13 other members of his family, including his brothers, two of them currently away for extended work stints in Saudi Arabia.

Back to school in Nepal. What has changed?

Dipeshwor Shrestha's picture
Biswash, a 12 year old staying at the temporary camp in Uttar Dhoka showing the Dharahara collage he made.
Biswash, a 12 year old staying at the temporary camp in Uttar Dhoka showing the Dharahara collage he made. 
​Photo - Suresh Ghimire
On April 25, the day of the earthquake, my colleagues and I were organizing the final student exhibit to mark the end of our 12-week school session. There were 12 kids and their parents when the earthquake struck. Our first instinct was to keep the kids safe; we managed to stay calm, gathered everyone into an open space and stayed strong. After the aftershocks subsided, we got news of how devastating the earthquake actually was. We immediately called our loved ones. It was a relief that everyone we knew was safe.
 
I am a teacher at Karkhana, an education company that designs and delivers hands-on STEAM (science, technology, engineering, arts and maths)-based content to middle school students in Nepal.
The first two days after the quake, we quickly realized that people without any specialized skills such as first aid, sanitation, nursing, construction, and rescue were not of much help in the immediate relief efforts.

The only way to contribute was to do what we are already good at - teach.

Afghanistan debt - when words get lost in translation

Paul Sisk's picture
Photo Credit: Rumi Consultancy/World Bank

 

One of the many successful fiscal initiatives implemented in Afghanistan was the HIPC, the Highly Indebted Poor Country program, a joint IMF–World Bank effort to reduce the public debt of poor countries. We called this the forgiveness of debt.
At an early stage in this work I had to meet with a senior Afghan government official to explain the program. The official, the Deputy Auditor General, was a dedicated, serious man who had trained in the former Soviet Union as an engineer and did not speak English, so we relied on an interpreter.

In those days any Afghan who spoke some English could find work as an interpreter, and ours was a medical doctor. He told me he was anxious to find work in his own field but in the meantime was willing to work anywhere, even interpreting in this arcane field of auditing, although he was unfamiliar with the jargon. The conversation was not to be long; just outline that the external public debt, which was mostly Russian debt from the communist era, would be absorbed by a trust fund and hence “forgiven” if Afghanistan met the program requirements – basically good fiscal transparency and discipline.

Nepal needs your support

Saurav Rana's picture
Saurav Rana/World Bank
By now, all of you must have heard of the massive earthquake and numerous aftershocks that have shaken Nepal over the last few days. As I am writing this, there is another tremor, 36 hours after the initial quake.
               
I am lucky that my family is safe. We have been fortunate. The majority of the people in Kathmandu are camped out in makeshift tents set up at various open spaces across the city — schools, army barracks and open fields. Some of these are coordinated by the rescue workers while others are set up by local residents. In some places, cremations happen only 5 meters away from where people sleep. The rain makes it very difficult in an already emotionally scarring time. This is just in Kathmandu.
 
Saurav Rana/World Bank

​Rural areas, where 80% of Nepalis live, are devastated. Entire villages have disappeared, buried under landslides triggered by the multiple quakes. Where they haven't, village houses, made mainly of mud and wood, have been reduced to dust, leaving people exposed to the elements. This is happening in some of the most difficult-to-reach hilly and mountainous terrain.

The number of casualties rises by the hour. Although my family and I are safe, many of my friends have lost relatives. Many people we know no longer have their houses. Our staff’s granddaughter needs to have her leg amputated. My "Didi" who took care of me as a child and is a second mother to me - lost her cousin who was crushed when their house collapsed. She really does not even know how to begin to mourn, knowing she still has to keep herself and many other safe.

The heritage we have lost is equally unimaginable. Centuries-old temples and palace squares are down in dust. Imagine the Due Torri in Bologna or the Washington Monument in Washington D.C. crumbling into rubble. The loss has been demoralizing.

The international community has reacted swiftly and relief efforts are in full swing. Hercules and IL-76 military aircrafts have been flying around the clock bringing in supplies, relief materials and workers. Kathmandu, a valley, has only two major highways connecting it to the rest of the world by land - one with China and one with India. Reports of damage to those highways has limited what can be brought into the city by land.
 
Saurav Rana/World Bank

However, this is the just the beginning. The greatest challenges are yet to come. The monsoon season is just a month away. The wet monsoon months are synonymous with outbreaks of various diseases including dysentery, cholera, and hepatitis. With many people's homes destroyed, crowded camps will continue to provide refuge in the coming months. Such densely packed and crowded places with poor hygiene conditions will be ripe breeding grounds for diseases, especially in Kathmandu, where clean water is a scarcity even under normal circumstances.

Here’s my plea to everyone reading this.

The first response has been absolutely fantastic and lifted our spirits, but the support will need to be sustained over time. Relief will not only be limited to rebuilding but also preventing disease outbreaks, which will be more prevalent during the monsoon months.

We will need clean water, medication, waterproof clothes, and infrastructure support to build hygienic camps for people who have lost their homes.
 
Dealing with potential outbreaks will be more challenging with this devastation. Please support organizations involved in Nepal’s relief effort and also help build awareness around the impending health and sanitation issues.

It has been a very scary last few days. It has been the first time that I’ve had to confront my own mortality: sitting, waiting in the eerily quiet night knowing there will be another shock. But also overcoming this anxiety to help my family and everyone at home, and then, once they are safe, the rest of the country.

We need your support. Nepal needs you.


Blog in English: http://blogs.worldbank.org/endpovertyinsouthasia/nepal-needs-your-support
Blog in Spanish: http://blogs.worldbank.org/voices/es/nepal-necesita-su-ayuda
Blog in Arabic: http://blogs.worldbank.org/voices/ar/endpovertyinsouthasia/nepal-needs-your-support
​Blog in French: http://blogs.worldbank.org/voices/fr/le-nepal-a-besoin-de-votre-aid
What we're doing in Nepal: http://www.worldbank.org/en/country/nepal/brief/fact-sheet-world-bank-do...

How online work is changing labor force participation and fostering urban youth inclusion in Pakistan

Nicola Magri's picture
The Digital Youth Summit 2015 (May 7-9, 2015, Peshawar) will explore the potential of e-lancing.

The vibrant city of Peshawar is getting ready to host the 2nd Digital Youth Summit (May 7-9, 2015, Shiraz Arena). Co-organized by the KP IT Board, Peshawar 2.0 and the World Bank, the Digital Youth Summit is a tech conference and startup expo gathering participants from Pakistan and all over the world passionate about tech entrepreneurship. While there is a lot of excitement about how technology fuels entrepreneurship, there has also been a quiet and steady rise of the ‘e-lancer’
 
Source: https://www.elance.com/trends/skills_central,
Accessed on April 10, 2015

What is e-lancing? Exactly what you think it is. E-lancing is free-lancing for the digital age. Powered by  ICT tools and the internet, e-lancing allows independent tech savvy workers connected to the internet access to the global labor market. Over the past years, even ‘physical’ workspaces have started to get virtual through tele-conferencing, video meetings etc. Many are very convinced by the benefits of ICT-enabled remote work and the flexibility that comes with it while others caution that it may not be the holy grail people tout it to be. However everyone is in agreement about one thing: ICT reduces barriers and distances making the global market more accessible than ever.

All you need is a computer and an internet connection. Thanks to ICTs, e-lancing is booming and there are multiple platforms where employers and e-lancers can “meet” and do business. These virtual marketplaces functions like a Craigslist for skilled tasks: employers post tasks and e-lancers respond to posted tasks and submit offers. Once selected, the e-lancer starts working remotely for his/her client. In most cases, the e-lancing platforms remain the center for all main interactions (payments, reviews, messaging, etc.) between the employer and the on-line worker so to ensure transparency and avoid frauds.

Will South Asia make the most of cheap oil?

Markus Kitzmuller's picture

The world economy today presents itself as a diverse canvas full of challenges and opportunities. Advanced economies continue to struggle towards recovery, with the US on its way to tighten monetary policy as the economy picks up while a still weak Eurozone awaits quantitative easing to kick in. At the same time, plunging oil prices have set in motion significant real income shifts from exporters to importers of oil. Astonishingly, amidst all this turmoil, South Asia has emerged as the fastest growing region in the world over the second half of 2014. Led by a strong India, South Asia is set to further accelerate from 7 percent real growth in 2015 to 7.6 percent by 2017, leaving behind a slowing East Asia gradually landed in second spot by China.



While bolstered by record low inflation and strong external positions across the region, the biggest question yet to be addressed by policy makers in South Asia will be how to make the most of cheap oil.
All countries are net oil importers as well as large providers of fuel and related food subsidies, therefore bound to benefit from low oil prices. However, the biggest oil price dividend to be cashed in by South Asia is one yet to be earned, and not one that will automatically transit through government or consumer accounts. The current constellation of macroeconomic tailwinds provides a unique opportunity for policy makers to rationalize energy prices and to improve fiscal policy. Decoupling external oil prices from fiscal deficits may decrease vulnerability to future oil price hikes – something that may very well happen in the medium term. Furthermore, cheap oil offers a great opportunity to introduce carbon taxation and address the negative externalities from the use of fossil fuels.

The World Bank’s latest South Asia Economic Focus (April 2015) titled “Making the most of cheap oil” provides deeper insights regarding South Asia’s diverse policy challenges and opportunities stemming from cheap oil.
A first major realization is that the pass through from oil prices to domestic South Asian economies is as diverse as the countries themselves, thanks to a variety of different policy environments across countries and oil products. This is also reflected in recent dynamics, seeing India taking determined action towards rationalizing fuel and energy prices, even introducing a de facto carbon tax and beginning to reap fiscal and environmental benefits. Other countries have so far shown less or no enthusiasm towards reform, in spite of significant and/or increasing oil dependency (particularly in electricity generation, one of the region’s weak spots). 

Pages