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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.

How to effectively manage metropolitan areas?

Ede Ijjasz-Vasquez's picture
​Today, a quarter of the world’s population lives in urban “agglomerations”—supersized metropolitan areas that cut across jurisdictional boundaries and bring together one or more cities along with their surrounding areas.

These metropolitan areas face a common challenge: effectively coordinating planning, infrastructure development, and service delivery across multiple jurisdictions. This is particularly difficult in developing countries, which often lack the necessary legal, institutional, and governance apparatus to undertake such coordination. The New Urban Agenda issued by the Habitat III conference in 2016 identified metropolitan planning and management as one of the most critical needs to ensure sustainable urbanization.

Fortunately, there is growing evidence and good practice from various countries on how to effectively manage and govern metropolitan areas. To help spread existing good practice and co-create new solutions, the World Bank has been supporting a community of practice (CoP) on metropolitan governance, or MetroLab, which brings together officials from metropolitan areas in both developing and developed countries for peer-peer knowledge and experience sharing.  Since its launch in 2013, MetroLab has held eight meetings in various cities, including Bangkok, Mumbai, New York, Paris, Rio de Janeiro, and Seoul.

​The most recent meeting took place in Tokyo from January 30 through February 2. Organized by the World Bank’s Tokyo Development Learning Center, the Tokyo MetroLab brought together mayors, city planners, and finance officials from nine developing cities. They were joined by experts from the World Bank, New York’s Regional Plan Association, the Seoul Metropolitan Government, and Advancity—Paris’ Smart Metropolis Hub.

In this video, Lydia Sackey-Addy, one of the participating officials from Accra, Ghana, as well as the World Bank’s Senior Director Ede Ijjasz-Vasquez (@Ede_WBG) and Lead Urban Economist Maria Angelica Sotomayor (@masotomayor) tell us how they are working together to make the Accra metropolitan area more resilient and sustainable for its residents.


 

Three misconceptions in the way of better housing policies

Luis Triveno's picture
Also available in: 中文

Photo by Dominic Chavez / World Bank

​While the need for housing is widespread, individually people have different needs—depending on whether they are single, married, senior citizens, families with children, or members with disabilities. Despite the best of intentions of policymakers, "a roof overhead" remains an elusive goal for a large majority of the world’s people. Most households cannot afford even the cheapest house that fits their needs and qualifies as “decent,” and no government alone can close this gap with subsidies. Nor are we on track to build the 300 million new houses needed to close the housing gap by 2030.

What’s missing? At least three misconceptions stand in the way of better housing policies: 
 

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.

Nine takeaways from the 2015 Trends in International Math and Science Study Results

Marguerite Clarke's picture
The highest performing countries are paying extra attention to the quality of their teachers. (Photo: Dominic Chavez / World Bank)

The International Association for the Evaluation of Educational Achievement (IEA) released the results of its latest Trends in International Mathematics and Science Study (TIMSS) yesterday, November 29. TIMSS 2015 assessed more than 600,000 students in grades four, eight, and the final year of secondary school across 60 education systems.

A tale of two disasters: Communities connecting and learning from each other

Margaret Arnold's picture
Community members from Nepal learn how to make paper jewelry crafts from Ibasho-Japan elders.
Community members from Nepal learn how to make paper jewelry crafts from Ibasho-Japan members. 
(Photo: Margaret Arnold / World Bank)
In the aftermath of the earthquake that struck Nepal in April 2015, Santoshi Rana of Bihani, a social venture working with elderly community members in Kathmandu, noticed that many efforts engaged the youth in relief and recovery activities. “Our elderly were completely left out of the equation, and were treated as passive beneficiaries in need of care.” So she took to the Internet to see what resources she could find. She came across a World Bank-Global Facility for Disaster Reduction and Recovery (GFDRR) report, “Elders Leading the Way to Resilience,” which assessed the impact of Ibasho café, an elder-led recovery effort in Ofunato, Japan, following the Great East Japan Earthquake (GEJE) in 2011.

Ibasho: a Japanese approach to community resilience

In Ofunato, elder community members planned and built the Ibasho Café, which serves as a hub to restore the fabric of a community badly damaged by the GEJE disaster. Ibasho Café is an informal gathering place that brings the community together. All generations connect in that space, with children coming to read books in the English library, older people teaching the young how to make traditional foods, younger people helping their elders navigate computer software, etc. With the elderly actively engaged in the operation of the Ibasho café, the place helps build social capital and resilience, while changing people’s mindsets about aging. The café runs as a sustainable business and, over time, has developed a noodle shop, an organic farm, and a farmers market to further support its operation.

In 2014-2015, GFDRR supported the documentation of the Ibasho experience in Japan. Learning about this experience, Santoshi realized the elders and women of her community could also lead the way, and reached out to Emi Kiyota, head of Ibasho, the NGO that facilitated the process in Ofunato.

Innovating with the past: How to create resilience through heritage

Barbara Minguez Garcia's picture
Demonstration of the firefighting system in the Ninna-ji Temple in Kyoto, Japan, by the temple staff and the R-DMUCH professors. (Photo by Barbara Minguez Garcia / World Bank)
Demonstration of the firefighting system in the Ninna-ji Temple in Kyoto, Japan, by the temple staff and the R-DMUCH professors. (Photo: Barbara Minguez Garcia / World Bank)
Bosai (防災) means disaster risk reduction or management, and it became our word of reference. As a group of professionals from disaster risk and cultural heritage management backgrounds visiting Japan, we used it in activities, as nicknames, and shouted in unison every time a group photo was taken. It represents a lesson that Japan has learned very well. Disasters have been part of the Japanese experience since the beginning of history. The Kobe Earthquake in 1995 and the Great East Japan Earthquake and Tsunami in 2011 are just two recent examples of disasters from which Japan recovered under the motto “build back better.” On November 5 we will be marking the World Tsunami Awareness Day, and I cannot think of a better word than Bosai to capture its significance.

In an environment rife with natural disasters, Japan recognizes that climate change is a tangible reality that increases the intensity and frequency of these disasters. The country knows very well the threat they pose not only to its people, economy, or infrastructure, but also to its cultural heritage.

Intangible culture is equally important, especially helping people in the recovery process and ensuring that we learn from the past. Take for instance the example of ancient local knowledge used around the world, and ask yourself: are we listening to our ancestors’ warnings?

Are we listening to our ancestors’ warnings?

Ko Takeuchi's picture
Also available in: Russian
Photo via Wikimedia Commons
The “miracle pine,” a 250-year-old tree that survived the 2011 tsunami in Japan, has been preserved as a memorial to the 19,000 victims of the disaster. (Photo via Wikimedia Commons)

In disaster risk management, we often pay close attention to the latest technological boosts to better understand risks and help communities prepare for the next disaster. While such efforts are commendable, I noticed that insightful messages from our ancestors can also help us better anticipate tomorrow’s disaster risks.

Such messages teach us how to keep hazards away from people (reducing existing risks) as well as how to keep people away from hazards (avoid creating new risks). On my latest trip to Japan, we hosted government officials from Armenia, Kyrgyz Republic, and Tajikistan as part of an experts’ visit focusing on disaster risk management, acting on Japan’s rich culture of passing on such decisive messages to future generations.

Preparing great primary school teachers is not so elementary

Betsy Brown Ruzzi's picture
Also available in: Español and Français
High-performing systems set rigorous standards for becoming a teacher in order to ensure that only the most qualified individuals enter classrooms

 
Ed's note: This guest blog is by Betsy Brown Ruzzi of the National Center on Education and the Economy (NCEE).

Developing teachers with a deep understanding of the content they teach underpins the success of primary schools in top-performing education systems.  This is one of the key findings in a new report recently released by the National Center on Education and the Economy’s Center on International Education Benchmarking, Not So Elementary: Primary School Teacher Quality in Top-Performing Systems.

How can we help countries share their own development knowledge? Insights from Japan

Ede Ijjasz-Vasquez's picture
To help clients achieve their development objectives, the World Bank has established knowledge-sharing "hubs" in countries that have gained valuable experience from dealing with their own challenges. That is the rationale behind the creation of a Disaster Risk Management (DRM) Hub and Tokyo Development Learning Center (TDLC) in Japan, a country that has developed unparalleled expertise in disaster resilience, quality infrastructure, and sustainable urban development. In this video, Keiko Sakoda Kaneda (DRM Hub) and Daniel Levine (TDLC) elaborate on some of the key elements of their work program, and explain how they collaborate with development partners from around the world.


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