After posing this question to experts from the government and NGOs alike, as well as the local population in different municipalities, we found that there is a large diversity of excluded groups. But what was surprising was the “exclusion traps” some categories of people were caught in.
It seems that everyone is talking about inequality these days, and I, for one, am happy to see this issue at the forefront in the development discussion.
We can look at inequality in a number of ways, which are not unrelated. One of the most visible types of inequality on the radar is inequality of outcomes — things like differences in academic achievements, career progression, earnings, etc. — which, in and of themselves, are not necessarily bad. Rewarding an individual’s effort, innate talents and superior life choices can provide incentives for innovation and entrepreneurship, and can help drive growth.
However, not all inequalities are “good.” When inequality perpetuates itself because those born poor consistently do not have access to the same opportunities as those born rich, what emerges is a deep structural inequality that is bad for poverty reduction, bad for economic growth, and bad for social cohesion. How pervasive are these deep inequalities? Much more than we would like. Indeed, when we examine what is happening in many countries around the world today, we find large and persistent, even growing, gaps in earnings between rich and poor. And we find that those who start out in poverty or are part of a disadvantaged group tend to remain there, with little opportunity to work their way out.
How do we explain this, and what can we do to tackle it? We need to take a step back and look at where this inequality originates, and that is where the concept of equality of opportunity comes in to play. This concept broadly refers to access to a basic set of services that are necessary, at the minimum, for a child to attain his or her human potential, regardless of the circumstances — such as gender, geographic region, ethnicity, and family background — into which he or she is born. Too often, access to such basic services like electricity, clean water, sanitation, health care and education is much lower among children born into circumstances that place them at a disadvantage. Children from disadvantaged groups thus set off on an unequal path from day one, which curbs their opportunities and potential into adulthood.
While many economies are recovering from the global recession, there are still 600 million jobs needed to be created over the next decade to maintain today's employment rates. Eliminating extreme poverty and boosting shared prosperity for the bottom 40 percent of the population by 2030 requires that we engage more effectively to bring hundreds of millions of people into productive work and out of poverty.
While many initiatives on youth employment have been undertaken over the past few years, there is still limited knowledge about the best way to design, implement and coordinate these interventions, and how to link them to broader reforms that promote private investment and business creation and/or expansion. At the same time, the limited knowledge that we do have does not take into account the significant heterogeneity of constraints across settings and different youth populations, and few programs are designed to take into account these differences in context and needs.
I am lucky. Growing up, I had so many meaningful conversations with my parents -- especially with Mama. One time, I came home from school and she told me firmly to stay away from the computer. Puzzled, I asked her why. She goes, “Your Papa says it has a virus. I don’t want you to get sick.”
After explaining what a computer virus is, we had a good laugh. At the end of it, she just smiled and said “dinner is ready.”
It might have been a hilarious moment (a trump card I would always have in our family reunions) but she was being herself, a great mom. She always puts her children first. And in every circumstance in my life, with the highs and lows, I come to realize that a mother’s love really conquers anything.
As many countries celebrate Mother’s Day this week, we present seven stories featuring mothers doing their best for their families, and individuals who have been inspired by their own moms to achieve their dreams.
Across the globe, young people are a growing share of the labor force. Goals about poverty reduction and shared prosperity depend on the jobs and earnings opportunities they will have. The technical, cognitive, and behavioral skills (such us teamwork, problem-solving skills and creativity) of workers will determine, to a large extent, their job and earnings opportunities. Unfortunately, around the world, much of the labor force has very low levels of education. Young people graduating from vocational centers or universities often lack the relevant skills for the labor markets.
At this year’s Solutions4Work conference, more than 170 academics, business leaders, and government ministers gathered together in Istanbul, Turkey to discuss challenges and solutions facing countries in addressing youth employment. At the conference, we are particularly energized to hear from youth groups and entrepreneurs from around the world who are creating a movement, change in culture, and tools for their fellow youth.
I have the great privilege in my job as president of the World Bank Group of speaking to some of the most creative political and business leaders around the world. One of the consistent themes across all of these conversations is the recognition that we must accelerate innovation to end extreme poverty and to grow economies in a way that is shared by all. What we lack is clear consensus around the best ways to foster and scale new ideas.
Recently, I had the opportunity to have a long discussion with Bill Gates, and our conversation naturally turned to what inspires innovation. Bill and his wife Melinda launched their foundationin 1994 and since that time they have transformed the world’s development aspirations in health, education and poverty reduction.
I was one of the lucky beneficiaries of the Gates’ generosity. In 2000, their Foundation made a $44.7 million grant to Partners In Health, which I co-founded. At a time when most of the global health world was in denial about multidrug-resistant tuberculosis (MDR-TB), the Gates made the largest single tuberculosis-related foundation gift in history in order to find ways to treat this disease in developing countries. This pattern of visionary, innovative philanthropy has been repeated again and again in their efforts to tackle some of the greatest challenges of the 21st century.
Over the next decade, 1 billion people will enter the labor market. Altogether, the global economy will need to create 5 million jobs each month, simply to keep employment rates constant. Global growth and poverty reduction over the next 20 years will be driven by today’s young people, yet many of them face significant difficulties in finding productive employment.
“Maybe in the Middle East … but in our part of the world, there is no gender inequity.” As an Egyptian, I wasn’t surprised to hear such assertions from colleagues when I arrived in the Eastern Europe and Central Asia region to deliver a program aimed at creating opportunities for women in the private sector. With its socialist legacy, the region prided itself on gender equality. Women were historically well-represented in the state-run economic systems. I looked at legal frameworks and the Women, Business and the Law indicators and found little evidence of discrimination. Laws on the books were overwhelmingly gender-neutral. I was puzzled.
Then I studied data from the World Bank’s Enterprise Surveys: Women’s rates of participation in the private sector told a different story. Women’s status seemed to be collapsing with the state systems and falling as markets started opening. For instance, now, only 36% of firms in the region are owned by women; that is a lower percentage than in East Asia (60%) and Latin America and the Caribbean (40%). Only 19% of companies in Eastern Europe and Central Asia have female top managers, compared to 30% in East Asia and 21% in Latin America and the Caribbean.
So I faced the daunting task of delivering a gender program in a region where few believe that there are gender issues to address.
- Bosnia and Herzegovina
- Macedonia, former Yugoslav Republic of
- East Asia and Pacific
- Europe and Central Asia
- Latin America & Caribbean
- Private Sector Development
- gender eqaulity
- women business and the law
- banking on women
- Small and Medium-Sized Enterprises