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Urban Development

Rural jobs allow people to escape poverty; urban jobs are a ticket to the middle class

Yue Li's picture
South Asia is sometimes known as the land of extremes with opulence surrounded by poverty.

How much social mobility is there in South Asia? The intuitive answer is: very little. South Asia is home to the biggest number of poor in the world and key development outcomes – from child mortality to malnutrition – suggest that poverty is entrenched. Absence of mobility is arguably what defines the caste system, in which occupations are essentially set for individuals at birth. Not surprisingly, the prospects for people from disadvantaged backgrounds to prosper are believed to be gloomier in this part of the world.

And yet, our analysis in Addressing Inequality in South Asia, reveals that economic and occupational mobility has become substantial in the region in recent decades. In fact, it could even be comparable to that of very dynamic societies such as the United States and Vietnam. The analysis also suggests that cities support greater mobility than rural areas, and that wage employment – both formal and informal – is one of its main drivers. 

​When splitting the population into three groups—poor, vulnerable, and middle class—upward mobility within the same generation was considerable for both the poor and the vulnerable. In both Bangladesh and India, a considerable fraction of households moved above the poverty line between 2005 and 2010. Meanwhile, a sizable proportion of the poor and the vulnerable moved into the middle class. In India, households from Scheduled Castes and Scheduled Tribes – considered together – experienced upward mobility comparable to that of the rest of the population.  

Engaging the Public on Country Partnership Strategies

Aaron Rosenberg's picture
Open India
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Country Partnership Strategies are a central element of the World Bank Group’s effort to act in a coordinated way to end extreme poverty and boost shared prosperity. But they can be hard for the average person to navigate—some are three-volume tomes, and others can be dense with technicalities. When we make them inaccessible to the general public, we often forgo a critical opportunity to build broad support for our work.

This year, the Bank Group’s India team decided to take a more innovative approach—one that has the potential to directly engage the public and perhaps even spur others to join us in our cause. In producing the Country Partnership Strategy for India, the team opted not to create a simple PDF for the website. Instead it produced a well-designed book, flush with easy-to-understand graphics and appealing photographs. It also produced a highly interactive web application that visualizes the strategyand tracks the strategy’s progress towards its goals over time. The tool shows exactly how individual projects along with knowledge and advisory work line up with our twin goals, and what outcomes we expect in each instance.

Can We Build Dhaka out of Traffic Congestion?

Ke Fang's picture

 Traffic
Traffic in Dhaka. Arne Hoel/World Bank

Dhaka, the capital city of Bangladesh, has been dubbed as “the traffic capital of the world” because of its chaotic traffic and frequent traffic jams. Some say Dhaka needs more roads, because only 7% of land is covered by roads in Dhaka, while in many developed capital cities it is more than 20%. That argument may hold some water.
 
For many years, many cities in the world did try to build more roads to relief traffic jams after motorization took place. However, no city has been able to build itself out of congestion. In fact, allocating more urban land to roads means you have to reduce the portion of land allocated for other urban functions, such as housing, industrial, commercial and entertainment.  What has also been widely recognized is that building more roads does NOT reduce traffic congestion. It would actually induce more motorized traffic and thus create more traffic congestion.

The Downside of Proximity

Sanjay Kathuria's picture

 

Buy a leather case for your wife’s smartphone on Amazon, select shipping from China with an estimated delivery time of 4-6 weeks, and then be pleasantly surprised when it turns up on your Virginia doorstep in 11 days.  The marvels of the modern age – of technology, globalization, and shrinking distances.

Where does South Asia stand on export delivery? Figure 1 illustrates that compared to other economic units around the globe, it is a lot more difficult to trade with(in) SAFTA (South Asia Free Trade Agreement). It also shows that bureaucratic hurdles and the time it takes to trade go hand-in-hand. While the region does relatively well on trade with Europe or East Asia, intra-South Asian trade has remained low and costly.  It costs South Asian countries more to trade with their immediate neighbors, compared to their costs to trade with distant Brazil (see below)!  In fact, it is cheaper for South Asian countries to export to anywhere else in the world than to export to each other (Figure 3).  In other words, South Asia has converted its proximity into a handicap.   

How to be a Great Mayor in South Asia

Jon Kher Kaw's picture


Image: Author's Illustration

Freakonomics Radio recently aired a podcast entitled “If Mayors Ruled the World”, based on Benjamin Barber’s new book of the same title, which contends that cities are a good template for governments to rule by, largely due to their mayors who are often uniquely positioned and focused on solving actual city problems. So much so, that he argues for the formation of a “Global Parliament of Mayors” to solve the world’s problems.

Even so, being a mayor of a South Asian city is no easy task. The challenges of city management in South Asia are compounded by its burgeoning urban population. In fact, according to the UN, roughly 315 million people are expected to be added to urban areas in the region by 2030. That number weighs in close to the entire population of the US today. It is no surprise that the theme of managing the challenges of urban transformation was at the top of the agenda at the recent South Asia Regional Workshop and Mayors’ Forum, hosted in Kandy, Sri Lanka.
 
The Mayors’ Forum, attended by a number of mayors and city leaders from South Asian countries and around, provided insights to what some successful mayors have done for their cities. By being visionary, and at the same time pragmatic problem solvers, mayors have seized opportunities to transform their cities, and quite often out of necessity and within highly constrained environments. Mayors took the opportunity to show how, despite significant institutional and financial limitations, they were able to take proactive initiatives to transform their cities. These were what they had to say:

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