As we mark International Women’s Day 2018, there has never been a more critical time to invest in people, especially in women and girls.
Skills, knowledge, and know-how – collectively called human capital – have become an enormous share of global wealth, bigger than produced capital such as factories or industry, or natural resources.
But human capital wealth is not evenly distributed around the world, and it’s a larger slice of wealth as countries develop. How, then, can developing countries build their human capital and prepare for a more technologically demanding future?
The answer is they must invest much more in the building blocks of human capital – in nutrition, health, education, social protection, and jobs. And the biggest returns will come from educating and nurturing girls, empowering women, and ensuring that social safety nets increase their resilience.
According to UNESCO estimates, 130 million girls between the age of 6 and 17 are out of school, and 15 million girls of primary-school age – half of them in sub-Saharan Africa – will never enter a classroom. Women’s participation in the global labor market is nearly 27 percentage points lower than for men, and women’s labor force participation fell from 52 percent in 1990 to 49 percent in 2016.
What if we could fix this?
Jim Yong Kim
In just six weeks, world leaders will meet in Paris to negotiate a new global climate-change agreement. To date, 150 countries have submitted plans detailing how they will move their economies along a more resilient low-carbon trajectory. These plans represent the first generation of investments to be made in order to build a competitive future without the dangerous levels of carbon-dioxide emissions that are now driving global warming.
The transition to a cleaner future will require both government action and the right incentives for the private sector. At the center should be a strong public policy that puts a price on carbon pollution. Placing a higher price on carbon-based fuels, electricity, and industrial activities will create incentives for the use of cleaner fuels, save energy, and promote a shift to greener investments. Measures such as carbon taxes and fees, emissions-trading programs and other pricing mechanisms, and removal of inefficient subsidies can give businesses and households the certainty and predictability they need to make long-term investments in climate-smart development.
Scientists declared this past year as the warmest year on Earth since record-keeping began in 1880, and a series of scientific reports found glaciers melting and extreme weather events intensifying. There can be no doubt that this year world leaders must commit to transforming their economies to combat climate change.
|My new Lithuanian friends.|
Negotiators have worked through the past three nights in search of agreements that all nations can sign up to (see my last blog). At 3 am this morning they reached consensus on a package of decisions that represents progress in the journey towards a global deal.
But most of those in Cancun have more down-to-earth reasons for being here. They’re here to initiate action – to share experiences, learn from best practice, forge new partnerships, and launch new programs.
Here’s a sample from the past 48 hours of some of the action that we’ve been moving forward, when many heads of state, ministers and global leaders such as Ban Ki Moon and Bob Zoellick were in town.
Developing Countries push the frontiers on Carbon Markets:
A new Partnership of Market Readiness was launched by the World Bank and by ministers from 15 countries with the purpose of supporting innovation in developing nations on market based instruments. Countries like China, Chile, Columbia, India, Indonesia, Mexico, Ukraine and many others – are introducing their own market based instruments. This new facility – now US$30 million but expected to rise to US$100 million – will provide technical support to these efforts, and seek to share practical lessons for others to follow.
This is part of a much bigger movement on carbon markets here in Cancun. The Clean Development Mechanism is in need of reform so that transactions costs are reduced and low income countries get better access to funds. [So far around US$25 billion has flowed to developing countries through carbon markets, but only 2% of this goes to Africa.] The High level Advisory Group on Finance estimates that US$30-50 billion could flow annually to developing countries through the offset markets by 2020 with moderate progress in policies. The fact that so many leading developing countries are now creating their own internal markets could help hugely in driving down the cost of mitigation, bringing in new technology and, over time, building a linked global market
Globally, more than 700 million women alive today married before the age of 18. Each year, 15 million additional girls are married as children, the vast majority of them in developing countries. Child marriage is widely considered a violation of human rights, and it is also a major impediment to gender equality. It profoundly affects the opportunities not only of child brides, but also of their children. And, as a study we issued this week concludes, it has significant economic implications as well.
China’s high economic growth during the last three decades is well known. But less attention has been paid to the dividends of that growth and the country’s rapid urbanization: China has lifted half a billion people out of poverty in the last 30 years – an historic feat.
But the country’s leadership knows that many challenges remain – some coming as a result of the rapid growth. For 30 years, the World Bank Group has had a strong partnership with the government and we’ve recently completed two landmark joint studies: China 2030 (guided by the leadership of my predecessor, Robert Zoellick), and the Urban China report, released just a few months ago.
Two years ago today, I was honored and humbled to become president of the World Bank Group, whose mission – ending poverty – I have been working toward most of my life. One of my first questions for the World Bank economists was whether it would be possible to end extreme poverty, and if so, how long it would take. The answer came back that it would be difficult but possible to end extreme poverty by 2030.
Since then, the 188 countries that hold shares in the World Bank have endorsed this goal, which previously few people believed would ever be achievable, let alone in our lifetimes. And it’s been my mission to find the best ways to leverage the talent, knowledge, and influence of the Bank Group to make it happen.
World Bank Group President Jim Yong Kim has started a conversation about development and the private sector on Oxfam’s blog.
The evolving discussion isn’t so much about whether to harness the private sector to cut poverty, but how to do it.
In an Oct. 28 blog post, Kim said the Bank needs to work with many partners to help meet the goals of ending extreme poverty and boosting shared prosperity. Private sector investment “is needed to stretch scarce development resources.”
“Engaging the private sector is not about how we feel about business; it’s about how high our aspirations are for poor people. If we rely only upon foreign aid, then our aspirations are far too low.”
coauthored with Alaka Holla
So two weeks ago we talked about how we don’t know enough about economically empowering women and last week we talked about power issues when measuring this in “gender-blind” interventions. This week we’d like to make some suggestions about how, with small effort, we could make serious progress in learning meaningful things about how to increase the earning capacity of women.