First, we need to address “energy poverty” if we want to end poverty.
We find that energy poverty means two things: Poor people are the least likely to have access to power. And they are more likely to remain poor if they stay unconnected.
Around one in seven, or 1.1 billion people, don’t have access to electricity, and almost 3 billion still cook with polluting fuels like kerosene, wood, charcoal, and dung.
Over the last 20 years, economic growth has helped to lift almost a billion people out of extreme poverty. But 1 billion people are still extremely poor. 1.1 billion live without electricity and 2.5 billion people without access to sanitation. For them, growth has not been inclusive enough.
In addition, growth has come at the expense of the environment. While environmental degradation affects everyone, the poor are more vulnerable to violent weather, floods, and a changing climate.
Development experts, policymakers, and institutions like the World Bank have learned a major lesson: If we want to succeed in ending poverty, growth needs to be inclusive and sustainable.
Over the past three decades, China has successfully lifted more than 500 million people out of poverty. For many years, the government’s poverty alleviation strategy focused on ensuring that every person had access to enough food. Driven by rapid economic development and urbanization, China is today one of the world’s largest producers and consumers of agricultural products.
Now the Chinese government has turned its attention to making the country’s food supply safer. The issue has become so important that, in the words of President Xi Jinping: “Whether we can provide a satisfying solution on food safety to the people is an important test on our capacity of governance.”
According to a poll published in March 2015, more than 77 percent of respondents ranked food safety as the most important quality of life issue. Environmental pollution, which experts consider one of the causes of China’s food safety problems, was another top issue worrying the public.
Chinese people attach significant importance to food, beyond its nutritional characteristics, due to historic memories of starvation. Food is also a symbol of regional pride and distinction, as well as a reflection of respect to guests.
Traditionally Chinese people believe each type of food brings specific medicinal features. Ginger cures a cold, garlic stops diarrhea, spinach is good for the blood, walnuts are good for the brain, pear relieves a cough, etc. When in China, you cannot avoid stories on how adding a specific food to one’s diet helped cure some disease. Therefore, it is understandable why Chinese people attach such importance to food safety. Contaminated or unsafe food poses a threat to public health and also risks undermining social stability and cultural identity.
The root causes China’s food safety problems come from the country’s rapid development. China has experienced unprecedented growth in recent decades and now is the world’s second-largest economy. Such rapid expansion has unleashed positive and negative effects. The industrial boom coupled with urban expansion and infrastructure development put significant pressure on both land and water resources. Over the long term, that pressure could constrain the ability to produce more food.
Women are emerging as a major force for change. Countries that have invested in girls’ education and removed legal barriers that prevent women from achieving their potential are now seeing the benefits.
Let’s take Latin America. More than 70 million women have joined the labor force in recent years. Two-thirds of the increase in women’s labor force participation in the last two decades can be attributed to more education and the fact that women marry later and have fewer children. As a result, between 2000 and 2010, women's earnings contributed to about 30% of the reduction in extreme poverty in the region.
In fact, for countries to leave poverty behind, both men and women need to get to equal and push the frontiers of equal opportunities even further. But to get there, we need to tackle three issues.
First, violence against women needs to end. More than 700 million women worldwide are estimated to have been subject to violence at the hands of a husband or partner. Domestic violence comes with great cost to individuals but also has significant impact on families, communities, and economies. Its negative impact on productivity costs Chile up to 2% of its GDP and Brazil 1.2%.
Many girls and women have little control over their sexual and reproductive health: If current trends persist, more than 142 million girls will be married off over the next decade while they are still children themselves.
The World Bank Group President Jim Yong Kim and World Bank Chief Economist Kaushik Basu had some answers in a live-streamed conversation, Building Shared Prosperity in an Unequal World, with Chinese media entrepreneur Yang Lan in the lead-up to the institution’s Annual Meetings on Wednesday morning.
China’s high economic growth during the last three decades is well known. But less attention has been paid to the dividends of that growth and the country’s rapid urbanization: China has lifted half a billion people out of poverty in the last 30 years – an historic feat.
But the country’s leadership knows that many challenges remain – some coming as a result of the rapid growth. For 30 years, the World Bank Group has had a strong partnership with the government and we’ve recently completed two landmark joint studies: China 2030 (guided by the leadership of my predecessor, Robert Zoellick), and the Urban China report, released just a few months ago.
Something Is Changing
Fifteen years ago, the international community designed the Millennium Development Goals, including that of halving extreme poverty, through a process that mostly took place in New York, behind closed doors. A few years earlier, the World Bank had developed the guidelines of the Poverty Reduction Strategy for Heavily Indebted Poor Countries from Washington, D.C. in a similar fashion.
Fortunately, this approach has changed.
Today, the process of identifying and consulting on the post-2015 development agenda has been opened to the general public including, importantly, those whom the goals are expected to serve. In fact, the United Nations and other partners have undertaken a campaign to reach out directly to citizens for ideas and feedback on the issues most important to them in the post-2015 agenda. Those who are formulating the post-2015 goals will no longer need to assume what the poor and vulnerable want: they will have a firsthand knowledge of what their priorities are.
The World Bank Group has explicitly stated that our new goals of eradicating extreme poverty and boosting shared prosperity cannot be achieved without institutions, structures, and processes that empower local communities, hold governments accountable, and ensure that all groups in society are able to participate in decision-making processes. In other words, these goals will not be within reach without a social contract between a country and its citizens that reduces imbalances in voice, participation and power between different groups, including the poor.
Right now, as you read this, wherever you are, we are in uncharted territory. Our global population of 7.1 billion is headed for more than 9 billion by 2050. With our growing numbers and aspirations for shared prosperity comes a growing demand for energy to power homes, businesses, industry and transport. Our continuing reliance on fossil fuels is generating pollution and a dangerously high amount of greenhouse gas emissions – this past summer, the concentration of CO2 in the atmosphere passed levels not seen in 3 million years.
If you were in Beijing last week, you felt the impact in your lungs: Just 16 days into the new year, the city woke up to its first “airpocalypse” of 2014, the latest in a series of dangerously high smog days. Beijing’s mayor announced plans the same day to cut coal use by 2.6 million tons and ban heavily polluting vehicles.
That was an important local step, and we are seeing forward-thinking cities and national governments make similar moves as they develop the architecture for a cleaner, low-carbon future.
The global economy is finally emerging from the financial crisis. Worldwide, growth came in at an estimated 2.4 percent in 2013, and is expected to rise to 3.2 percent this year. This improvement is due in no small part to better performance by high-income countries. Advanced economies are expected to record 1.3 percent growth for the year just finished, and then expand by 2.2 percent in 2014. Meanwhile, developing countries will likely grow by 5.3 percent this year, an increase from estimated growth of 4.8 percent in 2013.
The world economy can be seen as a two-engine plane that was flying for close to six years on one engine: the developing world. Finally, another engine – high-income countries – has gone from stalled to shifting into gear. This turnaround, detailed in the World Bank’s Global Economic Prospects 2014 launched last Tuesday, means that developing countries no longer serve as the main engine driving the world economy. While the boom days of the mid-2000s may have passed, growth in the emerging world remains well above historical averages.
High-income countries continue to face significant challenges, but the outlook has brightened. Several advanced economies still have large deficits, but a number of them have adopted long-term strategies to bring them under control without choking off growth.