Technological content of India’s exports
The evolution of Indian exports has not followed a “textbook” pattern. The pattern of evolution points to a dichotomy in the Indian economy – a well integrated, technologically advanced services sector and a relatively lagging manufacturing sector. The share of service exports in total exports has grown to over 32 percent in 2013 from 28 percent in 2000. On the other hand, the share of manufacturing exports in total export has declined to 67 percent from nearly 80 percent during 1990-2013.
The growth in service exports has been more rapid, resulting in the share of services exports in total exports to increase rapidly over the last decade. This can be explained by technological changes. Many services do not require face-to-face interaction, and can be stored and traded digitally. These services are called modern services. Modern services are the fastest growing sector of the global economy. This is particularly evident in India, where modern services exports account for nearly 70 percent of the total commercial services exports (compared to around 35 percent in EMs) (see Figure 1).
As we today mark UN Women’s Day, it is worth considering what the inequality between men and women costs South Asian countries and what can be done about it.
One big cost of inequality is that South Asian economies do not reach their full potential. In Bangladesh, for example, women account for most unpaid work, and are overrepresented in the low productivity informal sector and among the poor. Raising the female employment rate could contribute significantly to Bangladesh achieving its goal in 2021 of becoming a middle-income country. Yet even middle-income countries in South Asia could prosper from more women in the workforce. Women represent only 34 percent of the employed population in Sri Lanka, a figure that has remained static for decades.
Improvements in the education and health of women have been linked to better outcomes for their children in countries as varied as Nepal and Pakistan. In India, giving power to women at the local government level led to increases in public services, such as water and sanitation.
Just as the costs of inequality are huge, so is the challenge in overcoming it. The gaps in opportunity between men and women are the product of pervasive and stubborn social norms that privilege men’s and boys’ access to opportunities and resources over women’s and girls’.
不平等がもたらす大きな弊害の一つとして、南アジア諸国が本来備えている力を最大限に発揮することができない点が挙げられる。例えばバングラデシュでは、 無報酬の仕事に就いている人は大半が女性であり、生産性の低いインフォーマル・セクター や貧困層でも女性の割合が多いのが実情である。女性の就業率を高めれば、2021年までに中所得国入りを果たすというバングラデシュの目標達成に大きく貢 献するだろう。それだけではなく、すでに中所得国である国 も、労働人口に占める女性の割合が増えればさらなる繁栄を期待できる。スリランカでは、就業人口に占める女性の割合が、何十年にもわたって、わずか34％ にとどまっている。
On a foggy winter morning in Dhaka, 41-year-old Jahid was sipping tea by a roadside stall.
“Life was very peaceful back in my village,” he reminisced, “but there was no work, so I moved to Dhaka. Even if I live in a slum, my children are better off here.”
Jahid is one of the 500,000 people that move to Dhaka city each year. Driven by the promise of economic opportunity as well as poverty in rural and coastal areas, it is estimated that half the population of Bangladesh will migrate to urban areas by 2030.
Urbanization can be catalyst for growth. Density – the clustering of firms and workers – can drive productivity, innovation and job creation. It is the benefits of agglomeration that once drew the country’s most important industry – the ready-made garments sector to Dhaka city.
However, it is the costs from congestion that are now pushing factories away, mainly to peri-urban areas. Why are factory owners leaving?
For starters, the tide of new migrants has overwhelmed urban infrastructure, basic services, as well as the stock of affordable housing – eroding the both the livability and competitiveness of Dhaka city. A recent World Bank report described South Asia’s urbanization trajectory as “messy and hidden” – reflected in the large-scale proliferation of slums and urban sprawl.
This was the first local election in 10 years in most places of the country. Voters elected council members of three tiers of local governments: district, urban councils, and union council/ward.
How will these elections impact the lives of average citizens?
International experiences have shown that the main benefit of elected local bodies is their closeness to citizens, which allows them to be much more responsive – although with sustained hard work -- to improving local services such as waste, water, sewerage and transportation.
In a report about managing spatial transformation in South Asia launched at the 3rd Pakistan Urban Forum, we highlighted that (see chapter 3 of the report).
To that end, we identified three closely related "deficits" -- empowerment, resource, and accountability -- which, if tackled properly, could lead to improved local urban governance.
The recent local elections in Pakistan are important steps toward reducing these three deficits. The new local government laws, which were enacted in most provinces in 2013, started to re-empower local governments after the expiration of the earlier 2001 Local Government Act.