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How to boost female employment in South Asia

Martin Rama's picture
What's driving female employment in South Asia to decrease


South Asia is booming. In 2018, GDP growth for the region as a whole is expected to accelerate to 6.9 percent, making it the fastest growing region in the world. However, fast GDP growth has not translated into fast employment growth. In fact, employment rates have declined across the region, with women accounting for most of this decline.

Between 2005 and 2015, female employment rates declined by 5 percent per year in India, 3 percent per year in Bhutan, and 1 percent per year in Sri Lanka. While it is not surprising for female employment rates to decline with economic growth and then increase, in what is commonly known as the U-shaped female labor force function (a term coined by Claudia Goldin in 1995), the trends observed in South Asia stand out. Not only has female employment declined much more than could have been anticipated, it is likely to decline further as countries such as India continue to grow and urbanize.

The unusual trend for female employment rates in South Asia is clear from Figure 1. While male employment rates in South Asia are in line with those of other countries at the same income level, female employment rates are well below.
From the South Asia Economic Focus
Source: South Asia Economic Focus (Spring 2018).

If women are choosing to exit the labor force as family incomes rise, should policymakers worry? There are at least three reasons why the drop in female employment rates may have important social costs. First, household choices may not necessarily match women’s preferences. Those preferences reflect the influence of ideas and norms about what is women’s work and men’s work as well as other gendered notions such as the idea that women should take care of the children and housework. Second, when women control a greater share of household incomes, children are healthier and do better in school. Third, when women work for pay, they have a greater voice in their households, in their communities, and in society. The economic gains from women participating equally in the labor market are sizable: A recent study estimated that the overall gain in GDP to South Asia from closing gender gaps in employment and entrepreneurship would be close to 25 percent.

Face to face with William Maloney, Chief Economist, Equitable Finance and Institutions

Nandita Roy's picture

Returns on technological adoption are thought to be extremely high, yet developing countries appear to invest little, implying that this critical channel of productivity growth is underexploited. A recent World Bank study – The Innovation Paradox: Developing-Country Capabilities and the Unrealized Promise of Technological Catch-Up – sheds light on how to address this paradox. In this interview, William Maloney Chief Economist, Equitable Finance and Institutions Practice Group, World Bank Group, calls upon developing country public and private-sector leaders to pursue a more focused approach to innovation policy.



What is the new study Innovation Paradox all about?

The potential gains from bringing existing technologies to developing countries are vast, much higher for poor countries than for rich countries. Yet developing-country firms and governments invest relatively little to realize this potential. That’s the origin of what we are calling ‘The Innovation Paradox’.

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Why do firms in developing countries lag behind when it comes to innovation?

The Innovation Paradox, argues that developing country firms choose not to invest heavily in adopting technology, even if they are keen to do so, because they face a range of constraints that prevent them from benefitting from the transfer.

Developing country firms are often constrained by low managerial capability, find it difficult to import the necessary technology, to contract or hire trained workers and engineers, or draw on the new organizational techniques needed to maximize the potential of innovation. Moreover, they are often inhibited by a weak business climate. For example, small and medium enterprises (SMEs) are constantly in a situation where they are putting out fires, they don’t have a five-year plan, they don’t have somebody keeping track of what new technology has come out of some place that they could bring to the firm.

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How can developing economies catch up with the developed world on innovation?

The rates of return to investments and innovation of various kinds appear to be extremely high, yet we see a much smaller effort in these areas.  In the developing countries, we need to think not only about barriers to accumulating knowledge capital, we have to think about all the barriers to accumulating all of the complementary factors—the physical capital. So, if I have a lousy education system, it doesn’t matter if I get a high-tech firm because there won’t be any workers to staff it.

Innovation requires competitive and undistorted economies, adequate levels of human capital, functioning capital markets, a dynamic and capable business sector, reliable regulation and property rights. Richer countries tend to have more of these conditions. This is at the root of Paradox. Even though follower countries have much to gain from adopting existing technologies from the advanced countries, in practice, missing and distorted markets, weak management capabilities and human capital prevent them from taking advantage of these opportunities.

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How data can benefit Nepal

Ravi Kumar's picture

Thirty years ago, almost everyone in Nepal —except for a few professionals and business people—would have been classified as poor by any reasonable international standard.

In 2010, by contrast, 15 percent of Nepalis were considered poor.

Without a doubt, Nepal has made progress.

Now the 761 newly formed—local, provincial, and federal—governments in Nepal aim to provide all Nepalis access to essential public services, eliminate poverty, reduce gender and ethnic inequalities, and ensure environmental sustainability

The hope is that Nepal will reach middle-income status by 2030.

But tracking and monitoring progress against the goals articulated in Nepal’s development vision as well as the global Sustainable Development Goals (SDGs) impose significant demands on the country.

Unfortunately, the absence of disaggregated data by geography, sex, age, social groups and sub-national level, and more poses an enormous challenge for all levels of governments to properly plan and budget.

As such, Nepal needs to urgently invest in its data and statistics capacity.

Data is the currency for decision making and helps us understand what works and what doesn’t.

For instance, let’s consider a province in Nepal that is keen to improve learning for its public schools’ students.

Without data on students, their gender, age, academic performance, or the number of schools and teachers, the provincial government cannot elaborate an informed plan for its students.

But were policymakers able to access timely and sufficient data, they could decide whether more teachers or more schools are needed. Without data, decisions are just like shooting in the dark and hoping for the best.   

Boosting entrepreneurship in rural Afghanistan

Miki Terasawa's picture
Also available in: دری | پښتو
The Afghanistan Rural Enterprise Development Project has linked rural producers, inlcuding saffron farmers with markets to create businesses and provide employment opportunities to many Afghan women and men.
The Afghanistan Rural Enterprise Development Project has linked rural producers, including saffron farmers with markets to create businesses and provide employment opportunities to many Afghan women and men. Photo Credit: AREDP/ World Bank.

Meet Mohammad Naim, a saffron farmer in Afghanistan’s Herat province.  In 2013, Naim launched a new business, the Taban Enterprise Group after he and his partners received training and attended agriculture fairs nationwide.

Taban cultivates, processes, and markets saffron, and since its founding, it has steadily improved the quality of its saffron and expanded operations. Today, the company employs 120 women annually for seasonal work to harvest and process the valuable crop.
 
This business success story started with small savings pooled together by rural men and women like Naim.
 
Since 2010, the Afghanistan Rural Enterprise Development Project (AREDP) has linked rural producers with markets and helped villagers form savings and credit groups to create businesses or expand their small enterprises.

تقویت تشبثات خصوصی و ایجاد فرصت های کار در روستاهای افغانستان

Miki Terasawa's picture
Also available in: English | پښتو
The Afghanistan Rural Enterprise Development Project has linked rural producers, inlcuding saffron farmers with markets to create businesses and provide employment opportunities to many Afghan women and men.
پروژه انکشاف صنایع روستایی افغانستان  ازتولید کنندگان روستایی، به خصوص کسانیکه در عرصه تولید زعفران مشغول کاراند حمایت مینماید، تا نه تنها محصولات شانرا به بازار ها عرضه نمایند، بلکه خود قادر به ایجاد تشبثات و تجارت های کوچک گردند وزمینه های اشتغال زایی بیشتر را برای زنان و مردان فراهم نمایند. عکس: پروژه انکشاف صنایع روستایی افغانستان/ بانک جهانی

با نعیم یکتن از متشبثین محلی در ولایت هرات، که  در عرصه تولید زعفران مصروف کار است، آشنا شوید. در سال ۲۰۱۳ میلادی، نعیم و چند تن از شرکای او پس از اشتراک در یک سلسله برنامه های آموزشی در بخش زراعت و همچنان اشتراک در چندین نمایشگاه داخلی، تصمیم گرفتند یک شرکت تجارتی را بنام تابان تاسیس نمایند. شرکت متذکره که در بخش های کشت، پروسس و فروش محصول زعفران فعالیت را آغاز نمود، در مدت کم توانست با بهبود کیفیت تولید زعفران و گسترش فعالیت های تجارتی فراتر از مرز های افغانستان شهرت کسب نماید. بطور اوسط سالانه ۱۲۰ زن در این شرکت به منظور انجام کار های فصلی زعفران استخدام گردیده، تا در عرصه جمع آوری حاصلات و پروسس این نبات ارزشمند کار نمایند.
 
موفقیت این سرمایه گذاری با سهمگیری و اختصاص هزینه های کوچک پس انداز و قرضه از سوی چند زن و مرد روستایی مانند نعیم آغاز گردیده است.
 
از سال ۲۰۱۰ بدینسو پروژه انکشاف صنابع روستایی افغانستان تولید کنندگان روستایی را با بازار ها وصل ساخته و همزمان با آن از طریق گروپ های پس انداز و گروپ های قرضه قریه، روستاییان را کمک نموده، تا برایشان تجارت های کوچک ایجاد نموده و یا تشبثات کوچک شان را توسعه دهند.

د افغانستان په کلیوالو سیمو کې د خصوصی تشبثاتو او د کارموندنی د فرصتونو پیاوړتیا

Miki Terasawa's picture
Also available in: English | دری
The Afghanistan Rural Enterprise Development Project has linked rural producers, inlcuding saffron farmers with markets to create businesses and provide employment opportunities to many Afghan women and men.
د افغانستان د کلیوالي صنایعو د پراختیا پروژه له ټولو کلیوالو تولید کوونکو، بالخصوص له هغو بزګرانو څخه چې د زعفرانو د کښټ او پروسس په برخه کې کار کوي، مالي  او تخنیکي ملاتړ برابروي. په دې توګه نه یوازې، چې بزګران به وتوانیږي څو خپل محصولات بازارونو ته عرضه کړي، بلکه خپله به کوچني تجارتونه او تشبثات پرانیزي او د ښځو او نارینه وو لپاره به د کارموندنې فرصتونه برابر شي. انځور: د افغانستان د کلیوالي صنایعو د پراختیا پروژه/ نړیوال بانک

د زعفرانو د کښت چارو کې د هرات ولایت د یوه بریالي متشبث نعیم سره وپیژنئ. په ۲۰۱۳ کال کې نعیم او څو نورو شریکانو یې وروسته له دې چې د کرني په څو ښونیزو برنامو، او کورنیو نندارتونونو کې ګډون وکړ نو د تابان په نامه د یوه سوداګریز شرکت په جوړولو یې پیل وکړ. نوموړی شرکت چې د زعفرانو د کښت، پروسس او خرڅلاو په برخه کې فعالیت کوي، په ډیر کم وخت کې وتوانید د زعفرانو د کیفیت په لوړولو سره  د خپل سوداګریز فعالیتونو شهرت د افغانستان تر پولو واړوي. اوس مهال په منځنۍ توګه دغه شرکت په کال کې ۱۲۰ ښخې د زعفرانو د فصلی چارو لپاره ګوماري، تر څو د دغه ارزښتناک بوټي  د حاصلاتو د راټولولو او پروسس چارې پر مخ بوزي.
 
د دغه پانګه اچونې د بریالیتوب کیسه د سپما او پورونو لپاره د کوچنیو نغدي ونډه اخیستنو  په وسیله د نعیم په شان دڅو نارینه وو او ښخو له خوا پیل شوه.
 
د ۲۰۱۰ کال نه را پدیخوا د افغانستان د کلیوالي صنایعو د پراختیا پروژې، کلیوال تولید کوونکي له بازار سره وصل کړل او همدارنګه د کلي سپما او پورونو د ګروپونو په واسطه یې  له کليوالي خلکو سره مرسته وکړه تر څو ورته کوچني تجارتونه جوړ او کوچني تشبثاتو ته وده ورکړي.

Six ways Sri Lanka can attract more foreign investments

Tatiana Nenova's picture
In 2017, Foreign Direct Investment (FDI) into Sri Lanka grew to over $1,710 billion. But Sri Lanka still has ways to go to attract more FDI.
In 2017, Foreign Direct Investment (FDI) into Sri Lanka grew to over $1,710 billion. But Sri Lanka still has ways to go to attract more FDI. Credit: Shutterstock 


To facilitate Foreign Direct Investment (FDI), Sri Lanka launched last week an innovative online one-stop shop to help investors obtain all official approvals. To mark the occasion, this blog series explores different aspects of FDI in Sri Lanka. Part 1 put forth 5 Reasons Why Sri Lanka Needs FDI. Part 3 will relate how the World Bank is helping to improve Sri Lanka’s enabling environment for FDI.

Sri Lanka and foreign investments read a bit like a hit and miss story.

But it was not always the case.

Before 1983, companies like Motorola and Harris Corporation had plans to establish plants in Sri Lanka’s export processing zones. Others including Marubeni, Sony, Sanyo, Bank of Tokyo and Chase Manhattan Bank, had investments in Sri Lanka in the pipeline in the early 1980s.

All this changed when the war convulsed the country and derailed its growth. Companies left and took their foreign direct investments (FDI) with them.

Nearly a decade after the civil conflict ended in 2009, Sri Lanka is now in a very different place.

In 2017, Foreign Direct Investment (FDI) into Sri Lanka grew to over $1,710 billion including foreign loans received by companies registered with the BOI, more than doubling from the $801 million achieved the previous year.

But Sri Lanka still has ways to go to attract more FDI.
 
As a percentage of GDP, FDI currently stands at a mere 2 percent and lags behind Malaysia at 3 – 4 percent and Vietnam at 5 – 6 percent.

Five reasons why Sri Lanka needs to attract foreign direct investments

Tatiana Nenova's picture
Sri Lanka’s government has recognized the need to foster private-sector and beef up exports to attain the overarching objective of becoming an upper-middle-income economy.
Sri Lanka’s government has recognized the need to foster private-sector and beef up exports to attain the overarching objective of becoming an upper-middle-income economy.

To facilitate Foreign Direct Investment (FDI), Sri Lanka is launching this week an innovative online one-stop shop to help investors obtain all official approvals. To mark the occasion, this blog series explores different aspects of FDI in Sri Lanka. Part 2 will explore how the country can attract more FDI. Part 3 will relate how the World Bank is helping to create an enabling environment for FDI in Sri Lanka.

You may have heard that Sri Lanka is intent on drumming up more foreign direct investments up to $5 billion by 2020. At the same time, the government aims to improve the lives of Sri Lanka’s citizens by generating one million new and better jobs.
 
This isn’t a pipe dream. Thanks to its many advantages like a rich natural resource base, its strategic geographic position, highly literate workforce and fascinating culture, the island nation is ripe for investment in sectors such as tourism, logistics, information technology-enabled services, and high-value-added food processing and apparel.
 
What is foreign direct investment and why does Sri Lanka need it?
 
Very simply, foreign direct investment (or FDI) is an investment made by a company or an individual in a foreign country. Such investments can take the form of establishing a business in Sri Lanka, building a new facility, reinvesting profits earned from Sri Lanka operations or intra-company loans to subsidiaries in Sri Lanka.
 
The hope is that these investment inflows will bring good jobs and higher wages for Sri Lankan workers, increase productivity, and make the economy more competitive.  
 
Sri Lanka’s government has recognized the need to foster private-sector and beef up exports to attain the overarching objective of becoming an upper-middle-income economy.
 
Attracting more FDI can help achieve that goal and fulfill the promise of better jobs.
 
Here are five reasons why:

The latest poverty numbers for Afghanistan: a call to action, not a reason for despair

Shubham Chaudhuri's picture
Also available in: دری | پښتو

The just-released Afghanistan Living Conditions Survey (ALCS) paints a stark picture of the reality facing Afghanistan today. More than half the Afghan population lives below the national poverty line, indicating a sharp deterioration in welfare since 2011-12.[1]  The release of these new ALCS figures is timely and important. These figures are the first estimates of the welfare of the Afghan people since the transition of security responsibilities from international troops to the Afghan National Security Forces (ANSF) in 2014.

While stark, the findings are not a surprise

Given what Afghanistan has gone through in the last five years, the significant increase in poverty over this period is not unexpected. The high poverty rates represent the combined effect of stagnating economic growth, increasing demographic pressures, and a deteriorating security situation in the context of an already impoverished economy and society where human capital and livelihoods have been eroded by decades of conflict and instability.

The withdrawal of international troops starting in 2012, and the associated decline in aid, both security and civilian, led to a sharp decline in domestic demand and much lower levels of economic activity. The deterioration in security since 2012, which drove down consumer and investor confidence, magnified this economic shock. Not surprisingly, Afghanistan’s average annual rate of economic growth fell from 9.4 percent in the period 2003-2012 to only 2.1 percent between 2013 and 2016. With the population continuing to grow more than 3 percent a year, per capita GDP has steadily declined since 2012, and in 2016 stood $100 below its 2012 level. Even during Afghanistan’s years of high economic growth, poverty rates failed to drop, as growth was not pro-poor. In recent years, as population growth outstripped economic growth, an increase in poverty was inevitable.

په افغانستان کې د فقر په هکله د وروستیو ارقامو او شمېرو خپراوی: د عملي او مخنیوونکو اقدامونو لپاره خبرتیا، نه د ناهیلۍ رامنځته کول

Shubham Chaudhuri's picture
Also available in: English | دری

د افغانستان د احصائيي مرکزي ادارې لخوا په افغانستان کې د ژوند د وضعیت د څېړنې سروې موندنې په دغه هېواد کې د شته واقعیتونو به هکله یو مشرح انځور څرګند کړی. ترلاسه شوي معلومات دا څرګندوي، چې د افغانانو له نیمایي څخه زیات نفوس د فقر د کرښې لاندې ژوند کوي، چې دا حالت د ۲۰۱۱ – ۲۰۱۲ زېږدیز کلونو[i] په پرتله د ټولنیزې- اقتصادي اوضاع په لا خرابېدلو دلالت کوي. د دغې سروې د تازه ارقامو او معلوماتو خپراوی په ډېر مناسب وخت کې ترسره کېږي، ځکه چې دا ارقام او اړونده تحلیلي ټولګه ېې د افغانستان د خلکو د هوساینې وضعیت وروسته له هغه چې په ۲۰۱۴ کال کې له نړیوالو ځواکونو څخه د افغانستان امنیتي ځواکونو ته امنیتي مسوولیتونو لېږد ترسره شو، په تفصیل سره څېړلۍ ده.
که څه هم د دغې سروې موندنې ناهیلۍ کوونکې دي، خو د حقیقت پربنسټ دي

دې حقیقت ته په پام سره، چې افغانستان په تېرو پنځو کلونو کې له زیاتو پېښو سره مخامخ شو او ډېرې لوړې او ژورې ېې تجربه کړې، نو ځکه په اوس وخت کې د فقر او بیوزلۍ د بې ساري زیاتوالي تمه هم کېدله. د فقر لوړه کچه د اقتصادي فعالیتونوله کمښت، د نفوس د زیاتوالي او د امنیتي وضعیت له خرابېدلو سره مستقیمه اړیکه لري. له بلې خوا د داسې یوې ټولنې جورښټ، چې اقتصادي بنسټونه ېې د اوږد مهاله جګړې او بحران له امله ویجاړې شوې وي او بشري ځواک او معیشتي برخې ېې د ټیکاو او امنیت د نه شتون له امله خورا زیانمنې شوي وي، پرته له کوم شک څخه، چې د فقر ټغر هم پکښې ډیر پراخ پاتې کېږي.

د ۲۰۱۲ زېږدیز کال په لومړیو کې د نړیوال ایتلاف د ځواکونو په تدریجي وتلو سره، او په ورته مهال د افغانستان د ملکي او پوځي څانګو د مالي مرستو کمېدل، د اقتصادي فعالیتونو او د خصوصي سکټور خدماتو لپاره د تقاضا کچه ېې په شدت سره زیانمنه کړې  ده. له ۲۰۱۴ کال وروسته د امنیتي وضعیت خورا خرابوالۍ د دې لامل شو، څو د پانګوالو او مستهلکینو باور په سیاسي اوضاع باندې را کم شي، او له دې امله یو ستر اقتصادي ټکان رامنځته شو. پرته له کوم شک څخه د افغانستان اقتصادي وده، چې له ۲۰۰۳ څخه تر ۲۰۱۲ کلونو پورې شاوخوا ۹،۴ سلنه وه، وروسته له هغه چېد ۲۰۱۳ تر ۲۰۱۶ کلونو په ترڅ کې امنیتي وضعیتخورا خراب شو، نو له امله ېې اقتصادي وده هم ۲،۱ سلنې ته را ټیته شوه. د نفوس د کچې د ۳سلنې، کلنۍ وده سره جوخت، د ناخالص کورني تولید په حساب د سرانه عاید کچه له ۲۰۱۲ کال راپدېخوا په دوام داره بڼه را ټيته شوې ده، څرنګه چې د ۲۰۱۲ کال په پرتله په ۲۰۱۶ کال کې د ۱۰۰ امریکايي دالرو په اندازه را ټیټه شوې ده. د یادونې وړ ده، چې حتي په هغو کلونو کې چې افغانستان یوه ښه اقتصادي وده لرله، د فقر او بېوزلۍ په کچه کې هراړخیز لږوالی رامنځته نه شو، ځکه، چې د اقتصادي ودې محور د هېواد په بېوزلو سیمو کې د فقر په کموالي تمرکز نه درلود. پر دې سربېره، په وروستیو کلونو کې له اقتصادي ودې څخه د نفوس د کچې د ودې چټکوالی، د دې لامل شوی، څو د فقر لمن نوره هم پراخه شي.

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