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October 2013

Inclusive Growth Revisited: Measurement and Evolution

Saurabh Mishra's picture

Inclusive growth refers to both the pace and distribution of economic growth. For growth to be sustainable and effective in reducing poverty, it needs to be inclusive (Berg and Ostry 2011a, Kraay 2004). Traditionally, poverty (or inequality) and economic growth analyses have been conducted separately. Recent work indicates that there may not be a trade-off between equity and efficiency, as suggested by Okun (1975), and “that it would be a big mistake to separate analyses of growth and income distribution” (Berg and Ostry 2011b). Ianchovichina and Gable (2012) describe inclusive growth as raising the pace of growth and enlarging the size of the economy by providing a level playing field for investment and increasing productive employment opportunities.

Powerless in Kanpur

Sheoli Pargal's picture
Katiyabaaz - master of illegal connections
Documentary on the power crisis in Kanpur, a North Indian city.

Kaatiyabaaz” is a compelling documentary film that highlights the power crisis in Kanpur, a city of three million people in north India. 

It has all the elements of a steamy Hindi movie: 45-degree Celsius heat, power outages that last 12-15 hours, and illegal connections that come up every night and disappear in the morning. The everyday characters are gripping too. There’s a Robin-Hood-like street electrician who “provides power” by hooking to transmission lines. An upright bureaucrat (a woman, imagine that!) trying to get people to pay their bills and prevent theft. A city full of tired, angry citizens fed up with poor service provided.  The film underlines how people will do whatever it takes to get some juice in their wires so that they can get lights, fans, water…the basic necessities of 20th century life.
 

Russia’s Great Deceleration

Birgit Hansl's picture

Russia’s fortune and growth prospects remain tied to its most important economic partners in the Euro area and its main export products: oil and gas. In the last decade Russia grew at around 6 percent (if we exclude the crisis year of 2009 - 4.7 percent on average otherwise).

This high growth was driven by high commodity prices, but it also translated into the non-tradables. Russians enjoyed a higher standard of living and consumed more. The economy still looked strong in 2012 when the country grew at 3.4 percent, especially when compared to Europe, the US and Japan, but also vis-à-vis emerging economies such as Brazil and Turkey. Unemployment dropped to record lows and real wages grew, with poverty decreasing dramatically in recent years.
 

In the past, given the buoyant oil revenues, Russia followed a pro-cyclical growth model of stimulating domestic demand, partly through public investment projects and partly through increasing public wages and other public income sources such as pensions.

If the prices of oil and gas were to drop in the near future, Russia’s growth model might be in need of urgent adjustment.

A Global Challenge: Can We Achieve Financial Inclusion by 2020?



The issue of financial inclusion seems to be everywhere – from the World Bank Annual Meetings to the new UN post-2015 development goals. It’s got buzz in the private sector, public sector and development organizations big and small. Policymakers are increasingly making financial inclusion a priority through specific financial inclusion targets and commitments, such as the Alliance for Financial Inclusion’s Maya Declaration. In fact, World Bank Group President Jim Yong Kim recently launched an initiative “to provide universal financial access to all working-age adults by 2020.”
 
As we know from the Global Findex, more than 2.5 billion people lack access to even a basic bank account — a huge gap in inclusion and an enormous opportunity. Demographic changes, economic growth and advances in technology are making global financial inclusion more possible than ever before. With a massive new market of people demanding new services as incomes rise among the bottom 40 percent, the stage is set for dramatic leaps in access in the next few years. Emerging technologies are bringing down costs and opening new business models while providing greater access to a range of services.
 
Recognizing that the time is ripe for significant progress on financial inclusion, the Center for Financial Inclusion developed a consultative process aimed to raise everyone's sights about the possibilities of achieving full inclusion within a foreseeable timeframe – using the year 2020 as a focal point. The process sought to build a more cohesive financial inclusion “community” through the development of a common vision. It brought together experts from the World Bank, IFC and CGAP along with many representatives of the private sector and the social sector. Financial Inclusion 2020’s Roadmap to Financial Inclusion is the result.

Ask Malala: 'A Woman Is Even More Powerful Than Men'

Katrin Schulz's picture



On this year’s International Day of the Girl, I was part of the vast audience in the Atrium of the World Bank who had the opportunity to hear Malala Yousafza, the young activist who is inspiring the world with her bravery and courage, speak about her passionate fight for girls’ education.

Just the night before, she had wowed Jon Stewart on his television show with her poignantly articulate and exceedingly wise responses. Among them, she said: “I believe in equality. And I believe there is no difference between a man and a woman. I even believe that a woman is more powerful than men.”

These words, though spoken by a teenager, could scarcely ring more true amid the battle to eliminate poverty. Women are indeed more powerful than men, in the sense that, when you invest in a woman, you also invest in her family, her community and her country at large.

Phailin: Lessons Learned and More

Swati Mishra's picture

“How can risk be measured and managed better globally? “

 ADRA India/European Commission, Creative Commons.This was the question posed to the panelists of the “Risk and Opportunity” event on Oct 9, 2013. It was ironic that a World Development Report (WDR) on risk, which I supported through online publicity, was launching at the same time that a serious storm was threatening Odisha, my home state in India.  As the Annual Meetings of top ministers, policy experts and civil society organizations progressed, so did cyclone Phailin, and the importance of the theme of the WDR 2014 couldn’t have been more pronounced.

A Billion-dollar Opportunity for Developing Countries

Otaviano Canuto's picture
The decision last week by the Swiss government to sign the OECD’s somewhat lengthily named Convention on Mutual Administrative Assistance in Tax Matters is the latest of a series of developments that have radically increased the amount and quality of tax information available to governments.

Will hard cash go the way of the compact disk?

Ignacio Mas's picture

Hard cash certainly has its drawbacks. Poor people mired in a cash economy find it difficult, in times of need, to support or seek support from distant relatives and friends. The size of the market they can sell their products and wares into or source their inputs from is limited by how far they can easily and securely transport cash. They are captive to local financial organizations and moneylenders, because more distant financial institutions don’t find it cost effective to go collect their saved-up cash and have no visibility of their prior cash-based financial histories on which they might otherwise grant credit.

Should You Keep Innovating as a Programme Matures? Dilemmas from (another) Ground-Breaking Accountability Programme in Tanzania

Duncan Green's picture

Certain countries seem to produce more than their share of great programmes. Vietnam is one, and Tanzania appears to be another. After the much-blogged-on Twaweza workshop in Tanzania last week, I headed up North to visit the Chukua Hatua accountability programme. It’s one of my favourites among Oxfam’s governance work, not least because it has a really top notch theory of change (keep clicking) I often get asked for a good real life practical example of a ToC – in governance work, this is the best I’ve seen.

Over a series of conversations with Oxfam staff and partners, village activists, officials and others, one intriguing issue struck me: even if you start out as innovative, what happens next?

Let me explain. Chukua Hatua started out with a really interesting theory of change – adopt an evolutionary approach of variation-selection-amplification. That meant trying out lots of things in phase 1 (2010/11), then sifting through the results to identify the most successful variant(s) and scaling that up.

The variant that stood out was that of animation: training farmers selected by their communities to become animators – entrepreneurial, networked activists identifying problems in their communities and bringing people together (both villagers and those in power) to find solutions. This has worked brilliantly, so phase 2 (2012/13) has scaled that up.


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