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Bangladesh

Finishing the job of ending poverty in South Asia

Hartwig Schafer's picture
This Bangladeshi woman was born in poverty. With the right kind of education, life in poverty quickly became a story from the past for her. Credit: World Bank

"I have a four-year-old son back in my village. I want to make a better life for him,” says Sharmin Akhtar, a 19-year-old employee in one of Dhaka’s many flourishing garment factories.

Like thousands of other poor women, Sharmin came down to Bangladesh’s capital from her village in the country’s north to seek a better job and create a more prosperous future for her family—leaving behind a life of crushing poverty.

Today, as we mark End Poverty Day 2018, it’s important to note that Sharmin’s heartening story is one of many in Bangladesh and the rest of South Asia, where economic growth has spurred a dramatic decline in extreme poverty in the last 25 years.

And the numbers are striking: In South Asia, the number of extreme poor living on less than $1.90 a day dropped to 216 million people in 2015 from 275 million in 2013 and 536 million in 1990.

Even more remarkable, South Asian countries experienced an increase in incomes among the poorest 40 percent of 2.6 percent a year between 2010-2015, faster than the global average of 1.9 percent.

On a global scale, the highest concentration of poor shifted from South Asia to Sub-Saharan Africa in 2012. And India is likely to be overtaken, if it has not already been, by Nigeria as the country with the most people living in extreme poverty.

It’s worth thinking about how far South Asia has come – but remaining clear-eyed about how far we must go to finish the fight against extreme poverty.

Indeed, it is increasingly clear that poverty is more entrenched and harder to root out in certain areas, particularly in rural areas and in countries burdened by violent conflict and weak institutions.

Estimates for 2015 indicate that India, with 176 million poor people, continued to have the highest number of people in poverty and accounted for nearly a quarter of the global poor.

True, the extreme poverty rate is significantly lower in India relative to the average rate in Sub-Saharan Africa. But because of its large population, India’s total number of poor is still large.

And while there has been a substantial decline in the numbers and rate of people living below $1.90 in South Asia, the number of people living on less than $3.20 has declined by only 8 percent over 1990-2015 because of the growing population.

In 2015, 49 percent of the population of South Asia were living on less than $3.20 a day, and 80 percent were living on less than $5.50 a day.

Investing in people of South Asia for prosperity and quality of life

Hartwig Schafer's picture
A little girl in Balochistan, Pakistan, who now receives a quality education thanks to World Bank support. 
A little girl in Balochistan, Pakistan, who now receives a quality education thanks to World Bank support. Credit: World Bank 

Human capital – the potential of individuals – is going to be the most important long-term investment any country can make for its people’s future prosperity and quality of life.

Just look around the world: Technology is reshaping every industry and setting new demands for skills in every profession. The frontier for skills is moving faster than ever before.

To meet that challenge and be able to compete in the global economy, countries need to prepare their workforces now for the tremendous challenges and opportunities driven by technological change.  

To that end, the World Bank will launch next week its highly anticipated Human Capital Index to measure countries’ contribution of health and education to the productivity of the next generation of their workers.

The Index will be released on October 11 at the Bank’s Annual Meetings in Bali as part of the Human Capital Project, a global effort led by the Bank to accelerate investments in people for greater equity and economic growth.

No doubt, any country ranking gets high visibility and, sometimes, meets controversy. But I hope it triggers a dialogue about policies to promote investments in people.

To be clear, the important purpose of the Human Capital Index is to measure the distance of each country to the highest standard of complete education and full health—or the “frontier”.

The index, irrespective of whether it is high or low, is not an indication of a country’s current policies or initiatives, but rather reflects where it has emerged over years and decades.

Put simply, the index measures what the productivity of a generation is, compared to what it could be, if they had benefitted from complete education and good health.

The index ranges from 0 to 1 and takes the highest value of 1 only if a child born today can expect to achieve full health (defined as no stunting and survival up to at least age 60) and complete her education potential (defined as 14 years of high-quality school by age 18).

Connecting communities through India and Bangladesh's cross-border markets

Nikita Singla's picture


In remote border regions in Bangladesh and India, a government-to-government initiative is changing cross border relations, shifting the focus from smuggling and skirmishes to mutual economic gains and building a coalition for peace and cooperation.

In 2011, Bangladesh and India flagged off the first of their border haats, representing an attempt to recapture once thriving economic and cultural relationships that had been truncated by the creation of national borders.
Border Haats are local markets along the Indo-Bangladesh border that stretches 4100 Kms and runs through densely populated regions.

Conceived as Confidence Building Measures between India and Bangladesh, 4 Border Haats were set up between 2011 and 2015.
  • Balat (Meghalaya) – Sunamgunj (Sylhet)
  • Kalaichar (Meghalaya) – Kurigram (Rangpur)
  • Srinagar (Tripura) – Chagalnaiya (Chittagong)
  • Kamalasagar (Tripura) – Kasba (Chittagong)

Initially only local produce was permitted for trade. But subsequently, the range of items has been broadened to include goods of household consumption.
 

Bringing the People of Bangladesh and India Together Through Border Markets
Overall, border Haats have been strongly welcomed by participants. The positive experience of border haats has prompted both the governments to flag-off six more Border Haats: two in Tripura and four in Meghalaya. More Haats mean more trade, more people to people connect and more trust, one leading to another. This will go a long way in linking marginalized border communities to more mainstreamed trade and development.  


But border haats are not only about trade.

Clean and Green Bangladesh: A goal that can be achieved

Karin Erika Kemper's picture
 

"Think before you do, not after you're done,” says a Bengali proverb that applies to an urgent threat today for Bangladesh—major environmental problems spawned by rapid urbanisation and industrialisation. A decade of strong economic growth helped Bangladesh reach lower middle-income status while sharply decreasing its poverty rate, a remarkable achievement. But like many countries in the world, such progress has come at considerable environmental cost.

According to our just released report, "Country Environmental Analysis", Bangladesh is among the countries most affected by pollution and other environmental health risks. The monetary cost to the Bangladeshi society of environmental degradation in urban areas, measured in terms of foregone labour output was equivalent to about one percent of the Gross Domestic Product (GDP) annually.  If one takes into account the broader welfare impacts of mortality attributed to environmental risks, the economic cost is equivalent to 3.4 percent of the national GDP. Noncompliant industries and inadequate waste management of hazardous and nonhazardous materials are polluting the cities' air as well as surface and ground water. The study also indicated that many rivers around Dhaka are polluted.

Announcing the winners of the 2018 #OneSouthAsia Photo Contest

World Bank South Asia's picture


Home to Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, South Asia is one of the world’s most dynamic regions.

It's also one of the least integrated.

A few numbers say it all: Intra-regional trade accounts for only 5 percent of South Asia’s total trade; Intra-regional investment is smaller than 1 percent of overall investment.

South Asia’s transport corridors can lead to prosperity

Martin Melecky's picture
 World Bank
Transport corridors offer enormous potential to boost South Asia’s economies, reduce poverty, and spur more and better jobs for local people, provided the new trade routes generate growth for all and limit their environmental impact. Credit: World Bank

This blog is based on the report The Web of Transport Corridors in South Asia -- jointly produced with the Asian Development Bank, the United Kingdom’s Department for International Development, and the Japan International Cooperation Agency

No doubt, South Asia’s prosperity was built along its trade routes.

One of the oldest, the Grand Trunk Road from the Mughal era still connects East and West and in the 17th century made Delhi, Kabul and Lahore wealthy cities with impressive civic buildings, monuments, and gardens.

Fast forward a few centuries and today, South Asia abounds with new proposals to build a vast network of transport corridors.
 
In India alone—and likely bolstered by the successful completion of the Golden Quadrilateral (GQ) highway system—several transport proposals extending beyond India’s borders are now under consideration. 
 
They include the International North-South Transport Corridor (INSTC), linking India, Iran and Russia, the Asia-Africa Growth Corridor, and the Bangladesh, China, India, and Myanmar (BCIM) economic corridor.
 
The hope is that these transport corridors will turn into growth engines and create large economic surpluses that can spread throughout the economy and society.

Arguably, the transport corridor with the greatest economic potential is the surface link between Shanghai and Mumbai.
 
These two cities are the economic hubs of China and India respectively, two emerging global powers.
 
The distance between them, about 5,000 kilometers, is not much greater than the distance between New York and Los Angeles.
 
But instead of crossing a relatively empty continent, a corridor from Shanghai to Mumbai—via Kunming, Mandalay, Dhaka, and Kolkata—would go through some of the most densely populated and most dynamic areas in the world, stoking hopes of large economic spillovers along its alignment.
 
“Build and they will come” seems to be the logic underlying many massive transport investments around the world.
 
However, the reality is that not all these investments will generate the expected returns.
 
Worse, they can become wasteful white elephants—that is, transport infrastructure without much traffic—that would cost trillions of dollars at taxpayers’ expense.
 
So, how can South Asia develop transport corridors that have a positive impact on their economies and benefit all people along the corridor alignments and beyond?  
 
First, countries need to change the mindset that transport corridors are mere engineering feats designed to move along vehicles and commodities.
 
Second, sound economic analysis of how corridors can help spur urbanization and create local jobs while minimizing the disruptions to the natural environment, is key to developing successful investment programs.
 
Specifically, it is vital to ensure that local populations whose lives are disrupted by new infrastructure can reap equally the benefits from better transport connectivity.
 
The hard truth is that the development of corridor initiatives may involve difficult tradeoffs.
 
For instance, more educated and skilled people can migrate to obtain better jobs in growing urban areas that are benefiting from corridor connectivity, while unskilled workers may be left behind in depopulated rural areas with few economic prospects.
 
But while corridors can create both winners and losers, well-designed investment programs can alleviate potential adverse impacts and help local people share the benefits more widely.
 
In that vein, India’s Golden Quadrilateral, or GQ highway system, is a cautionary tale. 
 
No doubt, this corridor had a positive impact. 
 
Economic activity along the corridor increased and people, especially women, found better job opportunities beyond traditional farming.
 
But this success came at a cost as air pollution increased in the districts near the highway.
 
This is a major tradeoff and one that was documented before in Japan when levels of air pollution spiked during the development of its Pacific Ocean Belt several decades ago.
 
Another downside is that the economic benefits generated by the GQ highway were distributed unequally in neighboring communities.  

How can Bangladesh increase its resilience to disasters through data sharing?

Debashish Paul Shuvra's picture
 
How can Bangladesh increase its resilience to disasters?

Schools across Bangladesh are highly vulnerable to floods, cyclones, and earthquakes. How can the country mitigate and respond to the risks of these natural hazards?

By using the GeoDASH platform - a geospatial data sharing platform - the Directorate of Primary Education of Bangladesh has assessed 35,000 schools with respect to the type of infrastructure, water and sanitation facilities, access to roads, and overall capacity during natural disasters.

The GeoDASH platform is a reliable and extensive geographic and information (geospatial) data network.

These data are Geographic Information System (GIS) and other geolocation services-based information to represent objects or locations on a globally referenceable platform to enable mapping.

For example, locations of road network data can be merged with the flood risk map to get a single map for identifying vulnerable road communication in flood-prone areas.

This type of data will allow the Government of Bangladesh, communities, and the private sector to create, share and use disaster risk and climate change information to inform risk-sensitive decision making.

Toward Great Dhaka: Seize the golden opportunity

Qimiao Fan's picture
Toward Great Dhaka
Read the Full Report
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Originally Appeared on the Daily Star

Had you looked across Shanghai's Huangpu River from west to east in the 1980s, you would mostly have seen farmland dotted with a few scattered buildings. At the time, it was unimaginable that East Shanghai, or Pudong, would one day become a global financial centre; that its futuristic skyline, sleek expressways, and rapid trains would one day be showcased in blockbusters like James Bond and Mission Impossible movies! It was also unimaginable that the Shanghainese would consider living in Pudong.

How wrong that would have been! Pudong is now hosting some of the world's most productive companies, and boosting some of the city's most desirable neighbourhoods. And Shanghai has become China's most important global city, lifting the entire hinterland with it.

The same potential for urban transformation exists in Bangladesh, across the Pragati Sarani Airport Road that divides Dhaka into its west and east. West Dhaka is urban, hosting vibrant centres. East Dhaka remains largely rural, with a vast expanse of farmland. This sharp contrast presents a golden urban development opportunity for Dhaka, one that is not available to other major Asian cities.

Realizing the Promise of a Great Dhaka


Dhaka's population has grown from three million in 1980 to 18 million today and it continues to increase rapidly, which is a clear sign of success. However, Dhaka's development has been mostly spontaneous, with its urban infrastructure not keeping pace with its population growth.

Bangladesh Collaborates with China in Strengthening the Skills of its Youth

Mokhlesur Rahman's picture
Agreement Signing
The sigining of an agreement for educational exchange between the Ministries of Education of Bangladesh and China's Yunnan Province. 

With its youthful workforce and the aspiration to be a developed country by 2041, Bangladesh emphasizes skills development to provide its people the ability to transform the country into a high productivity economy. To accelerate progress in this area, the government has been actively tapping into greater South-South cooperation, especially with other Asian countries.

Bangladesh and the China’s Yunnan Province’s partnership on the Skills and Training Enhancement Project (STEP) is one example. Following the International Skills Conference held in Dhaka held in March 2018, a  Bangladesh delegation, led by Mr. Md. Alamgir, Secretary of the Technical and Madrasah Education Division of the Ministry of Education, visited technical education institutions in Yunnan that are expected to receive students from Bangladesh.

Expert trainers in China will help their Bangladesh counterparts improve in the areas of student exchange, teachers’ professional development, and knowledge sharing among others. The agreement will mean that that the first cohort of 85 Bangladeshi students will be enrolled in the partnered Yunnan institutions with scholarships by September 2018.

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.

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