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Poverty

Shaping the Debate on Promoting Jobs and Competitiveness in Small Island Developing States

Ivan Rossignol's picture

The United Nations has declared 2014 as the International Year of Small Island Developing States (SIDS), in recognition of the contributions this group of countries has made to the world, and to raise awareness of the development challenges they confront – including those related to climate change and the need to create high-quality jobs for their citizens.

The Third International Conference on SIDS in September in Apia, Samoa will be the highlight event.  The World Bank Group is helping shape the debate on both climate and jobs with a delegation led by Rachel Kyte, the Group Vice President and Special Envoy for Climate Change, and with senior-level participation in the conference’s Private Sector Forum.

Is the global jobs agenda relevant to small islands states?

Tackling the challenges related to the jobs agenda in large and middle-income countries could be seen as the most significant issue for the Bank Group’s new Trade and Competitiveness Global Practice, of which I’m a member. Yet the Minister of Finance of Seychelles recently challenged my thinking on this. 

At the June 13  joint World Bank Group-United Nations' High-Level Dialogue on Advancing Sustainable Development in SIDS (which precedes the September conference on SIDS), the presentation by Pierre Laporte, the Minister of Finance, Trade and Investment of Seychelles – who is also the chair of the Small States Forum – led to a lively discussion on various job-creation and growth models that the SIDS countries may want to pursue. 

The sentiment among SIDS leaders was that one-size-fits-all solutions will not do when it comes to jobs and growth.  Yes, they do want to continue to address the tough fiscal challenges they face, but they want to tackle them while creating job opportunities for their citizens. 

Decades of reforms have not helped SIDS grow at a rate similar to the rest of the world: On average, their pace of job creation is about half the global rate. The lack of opportunities felt by many generations resulted in a heavy “brain drain” that exceeds the level seen in other developing countries. 

It is becoming very clear that business as usual in SIDS will not do.  Creative solutions need to be found now.

Toward Shared Prosperity, With an Urgent New Focus on Overcoming Inequality

Christopher Colford's picture

The challenge of promoting shared prosperity was one of the unifying themes throughout last week’s Spring Meetings at the World Bank Group and International Monetary Fund – the whirlwind of diplomacy and scholarship that sweeps through Washington every April and October. A remarkable new factor, however, energized this spring's event: In a vivid evolution of the policy debate, the seminars, forums and news-media coverage seemed focused, to a greater degree than ever, not just on the economic question of the creation of overall economic growth but on what has traditionally been seen as a social question: the distribution of wealth.

And in the wake of the Spring Meetings, Washington this week got a bracing reminder of how difficult it may be to build truly shared prosperity – not because our economic institutions lack the ability to achieve it, but because our political institutions may fail to summon the willpower to demand it.

A scholar whose work has taken the economics profession by storm, Thomas Piketty, captivated policy-watchers this week with the Washington launch of his landmark new work, “Capital in the Twenty-First Century.” Hailed as “the most important economics book of the year, and maybe of the decade” by Nobel Prize-winning economist Paul Krugman of the New York Times – and praised by Martin Wolf of the Financial Times as “an extraordinarily important” work “of vast historical scope, grounded in exhaustive fact-based research”– “Capital” offers vital new insights into how wealth and power are distributed in modern economies. “Piketty has transformed our economic discourse,” asserts Krugman. “We’ll never talk about wealth and inequality the same way we used to.”



Piketty’s account of “inexorably rising inequality,” according to New York Times columnist Eduardo Porter, challenges many of the economics profession’s “core beliefs about the organization of market economies” – including “the belief that inequality will eventually stabilize and subside on its own, a long-held tenet of free-market capitalism.” Instead, “the economic forces concentrating more and more wealth into the hands of the fortunate few are almost sure to prevail for a very long time.”

Bringing mobile money to the world

Editor's Note: Michael Joseph is the World Bank Group's first fellow and was previously the CEO of Safaricom.

Mobile money has gone viral. In Kenya there are now more than 15 million mobile money users, which is equivalent to three in four adults. The company I was heading until last November, Safaricom has developed the world’s largest mobile money platform M-Pesa, which is being used by more than 14 million Kenyans. Over the last three years the growth of mobile money has been exponential. In December we reached a new threshold when the equivalent of US$ 1 billion was transferred. This is more than Western Union has transferred in all of 2010 globally! This has changed the lives of Kenyans—it created new jobs, new businesses and new opportunities for millions of people.

(Don’t) Carry Your Own Water

David Lawrence's picture

Not long ago, I carried a 20-liter bottle of water three blocks to my apartment (there is an artesian well in a nearby park). At first it was easy. I lifted it up onto my shoulders and walked boldly along the street, drawing admiring looks from everyone I passed.

But it didn’t take long for my muscles to feel the burn. Then my back started to ache. By the time I got home, I was wiped out. Never again, I thought.

It’s a microscope! It’s a phoropter! It’s a….cell phone?!

Anushka Thewarapperuma's picture

If mobile phones hold potential for addressing a number of development challenges in existence today then the newest innovations are exciting with cross cutting implications for health. The World Bank recently hosted three top innovators selected from NASA’s LAUNCH Initiative in Health, to provide an overview of new innovations in mHealth and to debate potential bottlenecks in financing and scalability. LAUNCH was formed jointly by NASA, the US Department of State, USAID and NIKE as a global initiative to identify and support innovative work contributing to a sustainable future. All three presenters, Aydogan Ozcan of UCLA, Ramesh Raskar of MIT Media Lab and Josh Nesbit of Medic Mobile, have been widely recognized in the development field as dynamic young innovators.