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Indonesia

How do we achieve sustained growth? Through human capital, and East Asia and the Pacific proves it

Michael Crawford's picture
Students at Beijing Bayi High School in China. Photo: World Bank


In 1950, the average working-age person in the world had  almost three years of education, but in East Asia and Pacific (EAP), the  average person had less than half that amount. Around this time, countries in  the EAP  region put themselves on a path that focused on growth  driven by human capital. They made significant and steady investments in  schooling to close the educational attainment gap with the rest of the world. While  improving their school systems, they also put their human capital to work in  labor markets. As a result, economic growth has been stellar: for four decades  EAP has grown at roughly twice the pace of the global average. What is more, no  slowdown is in sight for rising prosperity.

High economic growth and strong human capital accumulation  are deeply intertwined. In a recent paper, Daron Acemoglu and David Autor explore  the way skills and labor markets interact: Human capital is the central  determinant of economic growth and is the main—and very likely the only—means  to achieve shared growth when technology is changing quickly and raising the  demand for skills. Skills promote productivity and growth, but if there are not  enough skilled workers, growth soon chokes off. If, by contrast, skills are abundant and  average skill-levels keep rising, technological change can drive productivity  and growth without stoking inequality.

KIAT Guru: Engaging communities to improve education in Indonesia

Ede Ijjasz-Vasquez's picture
Indonesia successfully reduced its poverty rate over the last two decades. Yet, this growth was accompanied by one of the fastest increases in inequality in East Asia and the Pacific.  While the poverty rate in urban areas has fallen to 8.2%, in remote and rural areas it remains around 14%.

This inequality is exacerbated by the persistent poor quality of public services, such as education, in rural and remote areas. While various government initiatives have improved access to education, quality and equity remain major challenges for those in rural and remote areas.
 
To address these issues, the World Bank has partnered with the government of Indonesia to launch a pilot project called “KIAT Guru,” which aims to improve teacher presence, teacher service quality, and student learning outcomes, while enhancing community engagement and participation in remote areas.

“We [have] two different mechanisms. One of them is community empowerment… The community develops a service agreement with schools so they can agree upon the five to seven indicators that they think are a priority,” says Dewi Susanti, Senior Social Development Specialist, who leads the project.

In this video, Dewi Susanti and World Bank Senior Director Ede Ijjasz-Vasquez (@Ede_WBG) discuss the KIAT Guru project and the lessons learned from its early stages.  
 
KIAT Guru project

Which region in the world has the smartest kids? According to the OECD, it’s East Asia

Harry A. Patrinos's picture
Students from Tran Dai Nghia High School near Can Tho, Vietnam (Photo: D7K_4030 by makzhou, used under CC BY-NC 4.0 / cropped from original)


With the release last month of the latest PISA (Program for International Student Assessment) results by the OECD (Organisation for Economic Co-operation and Development), it is apparent that many of the highest achieving students in the world are in East Asia.
 
Just as in the recently released TIMSS (Trends in International Mathematics and Science Study) results, Singapore leads the world in every subject in PISA, outperforming other economies and countries by a significant margin. Students in Singapore perform at a level that is up to two years ahead of their regional and OECD counterparts in science, mathematics and reading. Moreover, almost all Singaporean students have reached a basic level of proficiency or higher. And they just keep getting better, having significantly reduced performance below basic proficiency.
 
Japan also outperforms most participating economies in science, mathematics and reading. However, its score in reading has declined since the last round. Still, as in Singapore, 90% of students have reached a basic level of proficiency or above.

One Map: accelerating unified land administration for Indonesia

Anna Wellenstein's picture
Photo: Curt Carnemark / World Bank


The primary forests have long gone from the surroundings of Teluk Bakung village on the outskirts of Pontianak, the capital of Indonesia’s West Kalimantan province. This was evident when I arrived in the region in late November 2016, as part of a field visit. We saw how most villagers have abandoned the difficult peatlands agriculture to work on large oil palm plantations and their own oil palm fields. Others have opted to invest in lucrative edible bird nest production. But they do so against a backdrop of confusing land-use management: forest estate and administrative boundary demarcation is incomplete, and community interest groups and authorities debate over the historical allocation of plantation concessions. Public data sets show a wide variety of land and forest uses in the area, including reserves. But in reality, virtually all of the land is increasingly being devoted to oil palm production.

2016 in Review: Your favorite social media content

Mario Trubiano's picture

Another year has passed, and as we do each year-end, here’s a rundown of what content resonated most with you on World Bank social media in 2016.

Four World Bank Facebook posts you cared about most

Some of our most popular and engaging content on Facebook in 2016 was, not surprisingly, multimedia. Check out these posts that made the biggest impact with you in the last year.

On October 17 – now recognized as End Poverty Day – Bangladeshi singer Habib Wahid unveiled a new song singing the praises of his country’s rapid progress in reducing poverty and building a prosperous society. Check out the video, and remember why you poured out your approval with more than 161,000 views, 65,000 reactions, and 4,600 shares!

 


Year in Review: 2016 in 12 Charts (and a video)

Tariq Khokhar's picture

Between the social, political, and economic upheavals affecting our lives, and the violence and forced displacement making headlines, you’d be forgiven for feeling gloomy about 2016. A look at the data reveals some of the challenges we face but also the progress we’ve made toward a more peaceful, prosperous, and sustainable future. Here are 12 charts that help tell the stories of the year.

1.The number of refugees in the world increased.

At the start of 2016, 65 million people had been forcibly displaced from their homes, up from 60 million the year before. More than 21 million were classified as refugees. Outside of Sub-Saharan Africa, most refugees live in cities and towns, where they seek safety, better access to services, and job opportunities. A recent report on the "Forcibly Displaced" offers a new perspective on the role of development in helping refugees, internally displaced persons and host communities, working together with humanitarian partners. Among the initiatives is new financial assistance for countries such as Lebanon and Jordan that host large numbers of refugees.


Underage with an ID to prove it

Lucia Hanmer's picture
Rubi’s Story: Exulted, Rubi ran home. As fast as her fifteen-year-old legs could carry her, she ran, exam in hand, excited to share the results with her family. The results, she believed, would shape her fate.
 

 
Yet when she got home, the elation dissipated with the dust. Her father had his own news to deliver. She would not be going to secondary school, as she had worked for, as she had wanted. Instead, she would be getting married, an economic necessity for Rubi’s family as well as a common practice in Bangladesh. Early marriage is on the decline in Bangladesh, but high rates continue to prevail; 59 percent of all girls are married by age 18 and 16 percent by age 15.
 
The Advocates: When little, Rubi had been denied access to primary school because her parents hadn’t registered her at birth. Rubi’s mother got her daughter a birth certificate, and with that, she was admitted to school, a place where she thrived.
 
At 15, smart, ambitious Rubi did not want to get married. So she found advocates in her teachers and Plan International, a child rights organization. With their support, Rubi went to the Union Council Office where the chairman informed her parents about the legal ramifications of child marriage. She was not old enough and her birth certificate proved it. She was underage. So Rubi went back to school and on to graduate at 18.
 
Child Marriage: Rubi’s story highlights the global problem of child marriage, its impact on girls, and the role of identification in empowering girls to prevent it. Child marriage remains pervasive: every year, 15 million girls are married before 18.

How has our rising palm oil consumption affected the communities where it comes from? Guest post by Ryan Edwards

This is the seventh in our series of posts by Ph.D. students on the job market this year
The tripling of area planted with tropical oil crops since the 1990s represents the largest transformation of global food and agricultural systems since the Green Revolution. The area planted for oil crops since the 1970s has expanded by over 150 million hectares, three times that of all cereal crops in the same period (Byerlee, Falcon, and Naylor, 2016). Tropical oil crops feature in most agricultural and food policy debates: genetically modified organisms, food versus biofuels, small farmers versus agribusiness, mono- versus inter-cropping, land grabs, and the environmental footprint of food consumption. The most prominent debates concern clearing forests across the tropics to plant oil crops, particularly oil palm, and the haze that regularly blankets Southeast Asia. Palm oil is the world’s most consumed vegetable oil—ubiquitous in everyday products from food and drink to soap and cosmetics—and one of the world’s most socially contested industries.

On Display: The Highs and Lows of Indonesia’s Urbanization

Gauri Gadgil's picture
Photo Credit: Andres Sevtsuk, Harvard City Form Lab


Last weekend I visited Bogor, 60 km (37 miles) outside of Jakarta. It only took an hour and fifteen minutes to leave the city. Due to traffic caused by heavy rains, the drive back was almost three times as long.                
Elsewhere in Indonesia’s capital, neighborhoods were flooding. Cars were trapped overnight in basement parking lots of the cafes and restaurants of Kemang, a chic neighborhood where a poorly designed drainage system and lack of green space causes recurrent flooding.

Such is life in fast-growing Jakarta, a bustling metropolitan area that looks set to displace Tokyo in 2028 as Asia’s largest city by population.

Five ways to improve parenting education in Indonesia

Heather Biggar Tomlinson's picture
A parenting education workshop is underway in Indonesia.

Ed's note: This guest blog is by Heather Biggar Tomlinson (Executive Director, Roshan Learning Center) and Syifa Andina (Chairperson, Foundation for Mother and Child Health)

There is a dynamic and growing energy in Indonesia focusing on parenting education, particularly for low-income families. However, little is known about parenting styles and related outcomes, much less the coverage and effectiveness of various parenting education approaches.


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