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December 2012

What I told your Finance Ministers: don’t lose sight of your priorities

Steen Jorgensen's picture

       

It has been too long since I last wrote about the jobs situation in the Middle East and North Africa, and an account of what actually happened when I met your senior financial authorities at the World Bank annual meeting in Tokyo is long overdue.

The Numbers Behind Bangladesh’s Goal of Middle Income Status by 2021

Zahid Hussain's picture

This is the fourth in a series of six posts about the recent report, Bangladesh: Towards Accelerated, Inclusive and Sustainable Growth. The last post, Be Happy Yet Do Worry: Explaining Resilience in Bangladesh's Economy, explained how the economy has withstood recent shocks. The next post will look at what sort of policies it will take to achieve the goal of middle income status by 2021.

Bangladesh’s economic growth has followed a path both theory and international experience would expect. Starting from a low income level, growth initially tends to accelerate through capital accumulation in a market economy. This is what happened in Bangladesh during the four decades since independence in 1971. A recent article in The Economist rightly said, “Bangladesh has become a model of what can be done”. Progress achieved so far provides a credible basis for aspiring to be a middle income nation by 2021, as observed in the World Bank’s recent report “Bangladesh: Towards Accelerated, Inclusive and Sustainable Growth—Opportunities and Challenges”.

Would it take more than just maintaining recent growth rates to achieve middle-income country (MIC) status? It is important to be clear about how middle-income status is defined. It is based on nominal Gross National Income (GNI) measured in Atlas dollars, not real Gross Domestic Product (GDP). Economies are divided according to 2012 GNI per capita, calculated using the World Bank Atlas method. The income thresholds are: low income—$1,025 or less; lower middle income—$1,026 to $4035; upper middle income—$4036 to $12,475; and high income—$12,476 or more.

At current prices, Bangladesh’s per capita GNI would have to exceed US$1,025 to reach the lower end of “low middle income” status. Nominal Atlas GNI per capita, currently $851, will need to grow at a sustained 2.1% and nominal Atlas total GDP will need to grow at 3.5% per annum from now onwards for Bangladesh to reach the middle-income threshold by 2021, when Bangladesh will celebrate its 50th year of independence.

Power to the people? Taking a look at community driven reconstruction in the DRC

Markus Goldstein's picture

Given the Bank's recent release of a report on community driven development and a recent New York Times article about the intractability of peace in the Democratic Republic of the Congo, I thought it would be worth looking at a recent

Time to Put Institutions at the Center of Community Driven Development (CDD)?

Janmejay Singh's picture

Community driven development (CDD) has been a key operational strategy supported by the World Bank for more than a decade – averaging about $2 billion in lending every year and now covering more than 80 countries. By emphasizing empowerment and putting resources in the direct control of community groups, CDD’s rapid spread stems from its promise of achieving inclusive and sustainable poverty reduction. Yet despite its popularity, evidence on whether these programs work still remains limited and scattered. Recently, two significant efforts have been made by the Bank to pull together the different strands of evidence there is on CDD and provide a summary picture of what we know and what we don’t (please see What Have Been the Impacts of World Bank Community-Driven Program? and Localizing Development – Does Participation Work?). The reviews find on the positive end that CDD-type programs, when implemented properly, do well on delivering service delivery outcomes in sectors like health and education, improve resource sustainability, and help in constructing lower cost and better quality infrastructure.

Keeping Peru on a Strong Economic Path

Luis Miguel Castilla's picture

Over the past decade, Peru has enjoyed one of the best performing economies in Latin America – one that took the financial crisis in stride. Now its focus is on sustaining this trajectory and, with about a third of the population in poverty, spread the economic gains more broadly. The JKP team and Vox LACEA spoke on the subject with Luis Miguel Castilla, Peru’s Minister of Economy and Finance, who says his top economic priorities are growth, productivity, and social inclusion.

KNOMAD logo competition extended

Dilip Ratha's picture

We've extended the deadline for submission of entries to the KNOMAD International Logo Competition, to give people extra time over the holiday season, especially youngsters who we hope will utilize their school holidays to participate.

Thank you very much for those who have already submitted --- you now have time to submit additional entries, if you wish.

The new closing date is January 15 and we expect to announce the winner on January 31.

Please do participate.

Education in Egypt: inequality of opportunity across three generations

Lire Ersado's picture

        Kim Eun Yeul

The political transition in Egypt has gone through many phases, but the ability to deliver on the demand for bread, dignity, opportunity and social justice that epitomized the 2011 revolution will continue to stand as an arbiter of its ultimate success. This will be especially apparent in the distribution of economic opportunities and how they are shaped by public policies.

Will CSOs Follow Bono’s Lead?

John Garrison's picture

International rock star Bono recently visited the World Bank where he was hosted by Bank President Jim Kim (see photo).  In a packed and electrifying session, moderated by CNN news anchor Isha Sesay, Bono and Kim talked about corruption, transparency, food security, and gender inclusion.  Bono called on the Bank to join civil society efforts to fight for the end of poverty.  While praising the Bank’s recent open development reforms, he noted that open data and transparency would “turbo-charge” the fight against extreme poverty as it will shine a light on this urgent problem.  He jokingly referred to Bank economists as “jedis for development” and said that he never thought he would say publicly “I want to go work for the Bank.”  As the head of One, Bono has been an effective advocate for greater aid to Africa over the years.  One reason for his success has been his willingness to work with both donor and recipient country governments to push for greater aid.  In the US, he has reached out to both Democrats and Republicans in the US Congress to lobby for foreign aid, and is credited for having convinced the Bush Administration to sharply expand funding for Africa and HIV/AIDS in the mid-2000s. 

The Case for Sharing Africa’s New Minerals Wealth With All Africans

Makhtar Diop's picture

In country after country in Sub-Saharan Africa, new discoveries of oil, natural gas and mineral deposits have been making headlines every other week it seems. When Ghana’s Jubilee oil field hits peak production in 2013, it will produce 120,000 barrels a day. Uganda’s Lake Albert Rift Basin fields could potentially produce even greater quantities. Billions of dollars a year could flow into Mozambique and Tanzania thanks to natural gas findings. And in Sierra Leone, mining iron ore in Tonkolili could boost GDP by a remarkable 25 percent in 2012.

My strong hope is that all the people living in these resource-rich African countries also get to share in this new oil and mineral wealth. So far, with one of few exceptions being Botswana, natural resources haven’t always improved the lives of people and their families. From what I see on my constant travels to the continent, economic growth in most resource-rich countries is not automatically translating into better health, education, and other key services for poor people.

Many resource-rich countries tend to gravitate towards the bottom of the global Human Development Index, which is a composite measure of life expectancy, education and income. 

One strikingly effective way to make sure that all people, especially the poorest, share in the new minerals prosperity is through safety nets and social protection programs. These are designed to protect vulnerable families and promote job opportunities among poor people who are able to work. This in turn makes communities stronger and more secure, while reducing painful inequalities between people.

Social protection programs are already central to poverty-fighting, higher growth national strategies across Africa, and have played a significant role reducing chronic poverty and helping families become more resilient in the face of setbacks such as unemployment, sudden illness, or natural disasters such as droughts or floods. These programs have also allowed families to invest in more livestock or grow more food, and increase their earnings. 


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