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Jobs: The fastest road out of poverty

Sri Mulyani Indrawati's picture

A worker at the E-Power plant in Port-au-Prince, Haiti. © Dominic Chavez/World Bank

For the first time in history, the proportion of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series, I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030:
 good governance, gender equality, conflict and fragility, preventing and adapting to climate change, and, finally, creating jobs.

Good jobs are the surest pathway out of poverty. Research shows that rising wages account for 30 to 50% of the drop in poverty over the last decade. But today, more than 200 million people worldwide are unemployed and looking for work — and many of them are young and/or female. A staggering 2 billion adults, mostly women, remain outside the workforce altogether. In addition, too many people are working in low-paying, low-skilled jobs that contribute little to economic growth. Therefore, to end poverty and promote shared prosperity, we will need not just more jobs, but better jobs that employ workers from all walks of society.

A view from Myanmar: exploring system-scale hydropower planning

Jeff Opperman's picture
Aerial view of the Ayeyawardi river in Myanmar
Aerial view of the Ayeyawardi river in Myanmar
by Michael Foley/Flickr
under a Creative Commons license
Myanmar’s rivers provide a reliable source of water for navigation and irrigation, and support food production and livelihoods. In fact, Myanmar’s freshwater fisheries produce more than 1.3 million tons of fish per year and employ approximately 1.5 million people. While the Ayeyawardy and other rivers are critical to maintaining the way of life in Myanmar, harnessing those rivers for hydropower is also a big part of the country’s plans for development and reducing poverty.
This scenario is not unique. For many countries like Myanmar, where only one-third of the population has access to electricity, hydropower presents a compelling opportunity to increase energy supply at low costs and make important contributions to development objectives and water resources management.
Myanmar has ambitious future hydropower development plans that mirror the trends seen globally. Projections show that the world is poised to nearly double hydropower capacity by 2040, building as many hydropower dams in the next 25 years as were built in the previous century.
In a report funded by the United Kingdom’s Department for International Development (DFID), The Nature Conservancy worked with WWF and the University of Manchester to demonstrate a framework that could be applied in Myanmar and replicated worldwide to change the trajectory of water resource development towards a more sustainable path. By adopting system-scale planning and engaging diverse stakeholders, Myanmar has the opportunity to be a leader and global example.

Vietnam: Brightening people’s lives through integrated healthcare in a hydropower project

Sang Minh Le's picture
Vietnam: A Healthier Project Is a Brighter Project

On a spring morning in 2016, Mrs. Dinh Thi Son of the Thai ethnic minority group brought her two month old baby to the Trung Son Hydropower Project construction site for medical services. Why go to a construction site? Because it has a health center that’s fully equipped with medical devices, well stocked with medicines, an ambulance, and doctors and nurses who provide healthcare services 24/7 for workers and local people alike.

In rural Nepal, tying micro hydropower plants to the main grid brings electricity for all

Bhupendra Shakya's picture
Talti village in Dhading district in Nepal where a MHP scheme has made it possible to open an agro-processing plant
Talti village in Dhading district in Nepal: A new micro hydropower plant has made it possible to open
an agro-processing plant. Credit: The World Bank

Fifteen years ago, I started a new job in the Sindhupalchowk district in Central Nepal. I was working in the rural energy development section of the District Development Committee and supervised technical support for micro hydropower plants (MHPs) in the area.

My job also entailed reaching out to local communities and ensuring they were deeply involved, from installation to maintenance, in bringing micro hydro to their villages.

During my time in Sindhupalchowk, I witnessed firsthand the dramatic and positive changes  hydro-powered electricity brought to people’s lives: houses lit up, radio and television sets came to life, mobile phones were easier to use, schools could run computer classes, small-scale enterprises flourished, and shops stayed open longer and offered more products. Moreover, the newly generated power contributed to improving the working conditions of women employed in local agro-processing mills as mechanical automation replaced labour-intensive manual processing.

For remote rural households not connected to the grid, MHPs have provided ready access to electricity. Still, as the national grid was gradually deployed into rural areas – albeit with little coordination between the Nepal Electricity Authority (NEA) and the Alternative Energy Promotion Centre (AEPC), respectively responsible for the national grid and alternative energy promotion -- villages with both existing MHPs and a new grid connection faced an entirely novel problem.
In places like Bhuktangle, Parbat and Righa, Baglung, detailed feasibility studies and construction of MHPs had already been completed when the grid was extended to these areas. As a result, more than 50% of existing customers switched from their MHP-generated electricity services and the ensuing lower electricity usage made it difficult to pay off the loan that was taken out for the building of the plant.  Ten districts in 2010 showed similar patterns as about 11% of MHPs are now competing with the national grid.

Clean energy, not coal, is the solution to poverty

Rachel Kyte's picture

 Dana Smillie / World Bank

It is the development conundrum of our era. Extremely poor people cannot lift themselves out of poverty without access to reliable energy. More than a billion people live without power today, denying them opportunities as wide-ranging as running a business, providing light for their children to study, or even cooking meals with ease.

Ending poverty requires confronting climate change, which affects every nation and every person. The populations least able to adapt – those that are the most poor and vulnerable – will be hardest hit, rolling back decades of development work.

How do we achieve the dual goals of expanding energy production for those without power and drastically reducing emissions from sources such as coal that produce carbon dioxide, the primary contributor to climate change?

There is no single answer and we cannot ask poor communities to forego access to energy because the developed world has already put so much carbon pollution in the air.

An array of policies and programs backed with new technology and new thinking can — if combined with political will and financial support — help poor populations get the energy they need while accelerating a worldwide transition to zero net carbon emissions.

Are We Rising to the Renewable Energy Challenge?

Anita Marangoly George's picture

Renewable Energy PanelWe are living in very exciting times when it comes to renewable energy. All over the world, countries are taking steps to generate more and more of their power from their wind, solar and hydropower resources, among other means of clean energy production. This expansion is not just vital for human and economic development, it’s key to the world’s efforts to tackle climate change. With less than six weeks to go until policy makers gather for the next UN Climate Conference of the Parties in Lima, Peru and as part of a series of events at the World Bank’s annual meetings, we hosted a panel of energy experts to look at what it will take to rise to the renewable energy challenge and address energy poverty.

Rampur Hydro – A Small Step towards Lighting Lives

Rohit Mittal's picture

The two Task Team Leaders, (from left) Kwawu Gaba and Rohit Mittal,
​with the Chairman-cum-Managing Director of SJVNL, Mr R P Singh

When a small Bank team, of which one of us was a member, first visited the project site in December 2004, it wasn’t exactly a picture-perfect scenario. We were deep in the Himalayas and it was the middle of winter. Barren mountainsides rose up all around us, the icy Satluj river flowed steadily down, and the wind was howling.

How could we possibly build a hydropower project in this forbidding terrain in a few years’ time? Stories of past challenges from the earlier Nathpa Jhakri project - about 15 kilometers upstream - came flooding into everyone’s mind. But failure was not an option. The Bank was reengaging in hydropower in India after a gap of more than 10 years, and a great deal was riding on each one of us. 

Now, more than a decade later, we find ourselves standing before the almost-fully built Rampur powerhouse. As a wonderful coincidence, both of us happen to be present as the first of the project’s six units roars into operation and is synchronized with India’s northern power grid.

Powering up Africa’s Renewable Energy Revolution

Makhtar Diop's picture
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As African Presidents, Prime Ministers, and business leaders arrive in Washington to attend the first US-Africa Summit, one topic that will be paramount in their discussions with President Obama and his Cabinet is: how governments and families can access affordable electricity across the African continent.

Consider the facts: one in three Africans, that’s 600 million people, has no access to electricity. Neither do some 10 million small and medium-sized enterprises. Those homes and businesses fortunate enough to have power pay three times as much as those in the United States and Europe; furthermore, they routinely endure power outages that cost their countries from one to four percent in lost GDP every year.

Akosombo Dam in Ghana, June 18, 2006. (Photo by Jonathan Ernst)Despite the fact that Africa is blessed with some of the world’s largest hydropower and geothermal resources (10-15 GW of geothermal potential in the Rift Valley alone), bountiful solar and wind resources, as well as significant natural gas reserves, total power generation capacity in Africa is about 80,000 megawatts (MW) (including South Africa), roughly the same as that of Spain or South Korea.

As Africa enters its 20th consecutive year of economic expansion, with the World Bank forecasting that Africa’s GDP growth will remain steady at 4.7 percent in 2014, and strengthening to 5.1 percent in each of 2015 and 2016, the continent needs more electric power. Specifically, Africa needs to add 7,000 MW of generation capacity each year to meet the projected growth in demand, yet it has achieved only 1,000 MW of additional power generation annually.

Over the last week I visited Cameroon and the Democratic Republic of the Congo, two of Africa’s so-called ‘fountain states.’  The resources in these two countries – along with Guinea, Ethiopia, and Uganda – can generate enough hydroelectricity to satisfy the growing demand in Africa. I saw the range of applications for which this power is needed, and I saw clear solutions.

In Eastern Cameroon I visited the construction site for the Lom Pangar hydropower project. Once construction is complete and the reservoir is filled in the next couple of years, this new dam on the Sanaga River will improve the reliability of power supply and lower the cost for up to five million Cameroonians. The Lom Pangar project will also pave the way for developing the full 6,000 MW of hydropower potential of the Sanaga River by regulating the flow of the river.      
In the Democratic Republic of Congo, last week, I visited the Inga hydropower site on the mighty Congo River. DRC’s overall hydropower potential is estimated at 100,000 MW, the third largest in the world behind China and Russia, yet only 2.5% of this key resource has been developed. With 40,000 MW of generation potential, Inga is the world’s largest hydropower site. Its proper development can make Inga the African continent’s most cost-effective, renewable source of energy with an estimated generation cost of US$ 0.03 per kilowatt hour with little or no carbon footprint--a significant added virtue.

Providing electricity in Uganda

Makhtar Diop's picture
World Bank Africa VP at the Bujagali hydropower plant in Uganda

KAMPALA, Uganda--World Bank Africa Region Vice President Makhtar Diop, in Uganda for development talks with President Museveni, his Cabinet, and other development partners, visits the site of the World Bank Group-financed Bujagali Hydropower plant in Uganda, which at 240 MW now generates the bulk of the country's electricity needs.

World Bank Support Delivers Electric Power to Millions – Sustainably

S. Vijay Iyer's picture

Between 2007 and 2011, Peru doubled electricity access rates from 30 percent of households to over 60 percent.  The national rural electrification program has been supported by US$50 million in World Bank financing and US$10 million from the Global Environment Facility (GEF).

This is a remarkable achievement, but to make sure that the new opportunities benefit local people in rural areas, an additional initiative was launched. This “productive uses of electricity” pilot project adapted lessons from two World Bank-supported activities in Indonesia under which the national utility reached out to local communities through NGOs.