Sitting out in the sun, in the middle of a public school premises, I intently looked at a woman clad in a patchy orange saree carrying a lean child on her lap. It was hard not to wonder whether her bare five years of primary school education really helped her understand public financial management! Indeed I was wrong. It was the sheer urge of entertainment and not curiosity about public financial management that drew her, and many more like her, to the premises of a government owned school in Hazaribaag, near the Beribaad, Mirpur area of Dhaka.
Saving Electricity–One Bulb at a Time!
|Waiting in line to exchange lightbulbs|
On a crisp October morning, all across Bangladesh in 39 districts, they flocked to their nearest schools and community centers, clutching their electricity bills and carrying small bags of used incandescent bulbs. There was much excitement and curiosity in the air – people stood in long snaking queues, gathered to chit-chat and watch what was going on. Men, women and even children waited patiently; expectantly.
They were waiting for the second round of free distribution of energy efficient compact fluorescent lamps (CFLs) to begin.
CFLs consume one-fifth energy compared to regular bulbs. At a time when Bangladesh’s power generation capacity is much below the energy demand, using CFLs can significantly help in reducing peak electricity demand.
This is great news for the energy starved people of Bangladesh, many of whom have to endure hours of power cuts every day. During peak hours, the country faces electricity shortages of about 1,500-2,000 MW. In some areas, this means power cuts for at least 6 - 8 hours a day! Using CFLs will save electricity and help the people cut back on their electricity bills.
As my plane glides over the lush, green forest on the side of the mountains and descends into the narrow valley where the airport is located, I start to feel ...happy? Yes, happiness is the motto of the country of Bhutan—which is actually a kingdom. Interestingly, Bhutan is known for its development philosophy of Gross National Happiness.
While working to finalize the poverty mapping work that our World Bank team has been collaborating on with Bhutan’s National Statistics Bureau (NSB) and the Gross National Happiness Commission (GNHC), I realized that I am happy not just because I have had the opportunity to be in such a beautiful place, but also as I have had the chance to work with some highly dedicated, capable (and yes, happy!) civil servants.
The poverty-mapping exercise in Bhutan was carried out by a joint team of staff members from the NSB and the World Bank. The team uses a “Small Area Estimation” method developed by Elbers et al. (2003) . This method uses both the 2005 Population Census and the 2007 household living standard survey (BLSS) to produce reliable poverty estimates at lower levels of disaggregation than existing survey data permits. In the case of Bhutan, the team managed to come up with reliable poverty estimates at the sub-district (known as Gewog in Bhutan) level .This work was also supported in part by AusAID through the South Asia Policy Facility for Decentralization and Service Delivery.
|Speaking with colleague Ahsan Tehsin, who worked on the Bank's damage and needs assessment for Pakistan.|
I have always had a desire to work in a developing country and have felt a pull towards Pakistan due to my heritage. So after two exciting years in Washington DC, I came across an opportunity to work in the Islamabad office; I went for it.
Within days of accepting the position -to work for the Multi-Donor Trust Fund supporting the Khyber Pakhtunkhwa, Federally-Administered Tribal Areas and Balochistan regions- I was in Islamabad. I had lived in the country for years when I was younger. With family and my fluency in Urdu, this was a homecoming of sorts, but a bittersweet one.
Each day on my way to work I am welcomed by the many checkpoints placed every few kilometers with law enforcement inspecting every vehicle with caution and professionalism (two qualities I once thought they were incapable of possessing!). I encounter at least seven checkpoints. The security situation has deteriorated to such an extent that these barriers to the flow of traffic - and in the mornings, to the flow of thought – bring calm to an otherwise chaotic world.
This post is the second in a special blog series on the Microfinance Institution, SKS and it's IPO launch in partnership with CGAP. Over the coming weeks we’ll be featuring a variety of voices on the issues raised by the IPO. We welcome your participation in this discussion through comments.
This is the first time that I have knowingly contributed to a ‘blog’; hence I am not familiar with medium’s etiquette. Am I to oppose, to concur, or to add? I’ll try to do all three.
Steve Rasmussen poses a number of important questions; they are mostly about the future, and about clients, which is surely where our focus should be.
I shall not comment on the rights or wrongs, legal or ethical, of the ways in which the shareholdings of the SKS clients’ Mutual Benefit Trusts were handled; Professor Sriram has already covered that issue, very well.
The United Nations hosted the Millennium Development Goals (MDG) Summit in New York City last month, with the participation of over 120 global leaders from both developed countries and emerging markets. This year’s summit was an especially momentous occasion since it marks 10 years since the Goals were set into motion and begins the 5 year countdown to 2015 when the goals are to be met.
At the awards ceremony on September 19th, both Bangladesh and Nepal received MDG country awards for advancements towards the development goals in health indicators with India receiving a nomination for greatly increasing access to education.
We asked South Asia's Human Development Director, Michal Rutkowski about these achievements.
With urbanization in Sri Lanka expected to increase from 20% in 2000 to 60% in 2030, perpetual gridlock, polluted waterways, and smoggy skies could all be potential side effects. However, Managing Cities for Sri Lanka Green Growth, organized by the Urban Development Authority and attended by representatives from all major cities taught me some ways we may mitigate some of the negative effects and create a sustainable urban development through innovative locally driven initiatives.
The workshop introduced the Eco2Cities approach to urban development which looks at helping developing countries achieve ecological and economic sustainability in urban areas. Although all Sri Lankan cities currently face challenges related to poor urban planning, it was enriching to hear some successful and innovative initiatives carried out by certain communities that can be used as examples for others.
The supply of electricity is a necessary ingredient for economic and social development in low income countries. Electricity is considered to be one of the most important services for improving the welfare of individual citizens. In the digital age, it is difficult to visualize development without electricity. Apart from the availability of energy per se, change in the quality of energy is one of the most important drivers of productivity.
The process of economic development necessarily involves a transition from low levels of energy consumption to higher levels where the linkages between energy, non-energy inputs and economic activity change significantly as an economy meanders through different stages of development. With such progress, commercial fossil fuels and ultimately electricity becomes predominant. Further, the expansion of electricity supply is critical to minimize the consumption of biomass fuel that has been responsible for the massive deforestation, desertification and many health problems.
All of the above sounds fairly straightforward and non-controversial, right? Not really. Count on economists for coming up with Harry Truman’s proverbial “on the other hand”. In other words, there are no straight answers as is most often the case in the infernal complexities, contradictions and ambiguities of our favorite ‘dismal science’.
This post kicks off a special blog series on the Microfinance Institution, SKS and it's IPO launch in coordination with CGAP. Over the coming weeks we’ll be featuring a variety of voices on the issues raised by the IPO. We welcome your participation in this discussion through comments.
A rare microfinance occurrence took place in late July this year. The Indian microfinance institution, SKS, became the second pure microfinance institution (MFI) globally to go public by listing its shares on the stock market. SKS is one of the largest microfinance institutions in the world with almost 6 million clients, mostly poor women living in rural areas. It has also been one of the fastest growing MFIs over the past few years, with a compound annual growth rate of 165% since 2004.
From one perspective, the IPO was a great success. It was 13 times oversubscribed, the company valuation reached the top of the offer band price (valuing the company at $1.5 billion), and the share price rose 42% in the first five weeks of trading. In the process SKS raised $155 million in fresh capital that will allow it to grow and serve far more people than it reaches now.
The power supply situation in Bangladesh remains as precarious as ever; with power outages becoming more erratic and load shedding persistently higher than the corresponding months in the previous year (see Figure). Bangladesh is currently experiencing unprecedented levels of load shedding nationally. Brought about by a shortage of generation supply capacity, load shedding is a last resort measure to prevent a collapse of the national electricity supply system. The risk of load shedding will remain high until at least 2013 if further actions are not taken to ameliorate the situation. Specific and immediate interventions were needed to minimize the risk of load shedding until the new peaking plant and base load electricity generating capacity being built comes online.
The government has taken initiatives to increase the generation capacity to 7,000 MW by 2013 through various technologies (fossil fuel and renewable) with both private and public sector participation. A large portion of this plan relies on quick rental power based on imported liquid fuels which are expensive, more than three times the cost per unit of electricity at which power is currently produced by large power plants.