Over the past few decades, cheap and low-skilled labor has provided many countries — including much of East Asia — with a competitive advantage. However, with economies increasingly turning to automation, cheap labor and low skills will no longer guarantee economic growth or even jobs.
Labor and Social Protection
Growing up in a developing country, I remember having some naive but clever solutions to the inequalities in and around my life. I had barely settled into my new teenage shoes, but I was already making indignant inquiries from my parents: “Why can’t we just fix everything for everyone?”
Ten years later — now blessed with a quality education and some work experience — those ideas today are likely less naive (and, I would hope, a little more clever).
But where should I be vocalizing such ideas? The answer: In boardrooms, government buildings and high-level policy meetings. That is according to a group of global leaders who met at the World Bank Spring Meetings in April.
When I visited Peru for the first time last month for a business development trip, I met with the heads of some leading private education institutions. At the end of my visit, I decided to book a cultural tour of Lima. During the tour, I asked our guide Marcos where he learned English as I found him very articulate, knowledgeable and with a good sense of humor. To my pleasant surprise and astonishment, he told me that he learned it by himself, mainly online. He then started practicing with visiting tourists until he became more comfortable leading tours himself.
Never in recent history has anti-minorities rhetoric — anti-immigrants, anti-religious-minorities, anti-LGBTI — been so pronounced in so many countries around the world. Those groups, we are told, are the cause of our current economic crisis because they steal our jobs, fuel criminality and threaten our traditional way of living. And yet, the causes of our economic crisis are probably more nuanced, and initial research seems to suggest that more and not less social inclusion will help us overcome the instability of our times.
The exclusion of minorities from the labor force is becoming politically and economically unsustainable for many states that are struggling to retain their legitimacy and strengthen their competitive potential in an increasingly global marketplace. As a consequence, governments, international development agencies and academic institutions are now looking seriously at ways to develop policies that guarantee a more equal and sustainable form of economic development — development that addresses both short- and long-term economic goals.
The World Bank’s Equality Project attempts to address this problem. The idea driving the project is that institutional measures that hamper the access of ethnic, religious and sexual minorities to the labor market and financial systems (such as legal and policy restrictions, or the absence of appropriate, positive nondiscrimination actions) directly affect their economic performance and, as a consequence, represent a cost for the economy: If a sizeable percentage of the population is not given the opportunity to acquire a high-quality education, a good job, secure housing, access to services, equal representation in decision-making institutions and protection from violence, human capital will be wasted, income inequality will grow and social unrest will ensue. The World Bank’s widely cited Inclusion Matters report puts it succinctly: “Social inclusion matters because exclusion is too costly. These costs are social, economic and political, and are often interrelated.”
The project collected and validated data on the legal framework of six pilot countries: Bulgaria, Mexico, Morocco, the Netherlands, Tanzania and Vietnam. The methodological approach of collecting cross-country comparable data according to key indicators yielded some general but interesting results, published in a research working paper in March 2017.
How can we provide employment to the 1.8 billion young people that live on this planet? Will we have enough jobs for all these young people? Will there be sufficient high-quality and high-productivity work, especially for women, who are often the most vulnerable when it comes to finding meaningful work?
Social safety nets – predictable cash grants to poor households often in exchange for children going to school or going for regular health check-ups – have become one of the most effective poverty reduction strategies, helping the poor and vulnerable cope with crises and shocks. Each year, safety net programs in developing countries lift an estimated 69 million people living in absolute poverty and uplifting some 97 million people from the bottom 20 percent – a substantial contribution in the global fight against poverty.
Quality and innovative education policies emerge usually from a combination of factors such as good teachers, quality school management, and parental engagement, among others. In Brazil, a country with tremendous diversity and regional inequalities, good examples have emerged even when they are least expected. Ceará, a state in the northeast region of Brazil — where more than 500,000 children are living in rural areas and where poverty rates are high — is showing encouraging signs of success from innovative initiatives in education. The figures speak for themselves. Today, more than 70 of the 100 best schools in Brazil are in Ceará.
The World Bank is pleased to release the 2017 Atlas of Sustainable Development Goals. With over 150 maps and data visualizations, the new publication charts the progress societies are making towards the 17 SDGs.
The Atlas is part of the World Development Indicators (WDI) family of products that offer high-quality, cross-country comparable statistics about development and people’s lives around the globe. You can:
- View the SDG Atlas online or download the PDF publication (150Mb)
- Access the WDI statistical tables and interactive SDG Dashboard
- Download and query the WDI database.
The 17 Sustainable Development Goals and their associated 169 targets are ambitious. They will be challenging to implement, and challenging to measure. The Atlas offers the perspective of experts in the World Bank on each of the SDGs.
For example, the interactive treemap below illustrates how the number and distribution of people living in extreme poverty has changed between 1990 and 2013. The reduction in the number of poor in East Asia and Pacific is dramatic, and despite the decline in the Sub-Saharan Africa’s extreme poverty rate to 41 percent in 2013, the region’s population growth means that 389 million people lived on less than $1.90/day in 2013 - 113 million more than in 1990
Note: the light shaded areas in the treemap above represent the largest number of people living in extreme poverty in that country, in a single year, over the period 1990-2013.
- Sustainable Communities
- Research and Publications
- Urban Development
- Social Development
- Public Sector and Governance
- Private Sector Development
- Migration and Remittances
- Law and Regulation
- Labor and Social Protection
- Information and Communication Technologies
- Global Economy
- Financial Sector
- Climate Change
- Agriculture and Rural Development
- The World Region
Happy New Year to all our Sri Lankan friends and colleagues celebrating the Sinhala and Tamil New Year this month; and Happy Easter to those celebrating it.
This is my first opportunity to celebrate these various holidays in my adopted country. I love the energy, the buzz of excitement everywhere and the decorations coming up in many of the commercial districts. I have been asking so many questions about the importance of the New Year holiday; and at the same time enjoying the preparations for the festivities, the anticipation of the big day as well as the serious messages.
I have learnt that the Sinhala and Tamil New Year, also known as 'Aluth Avurudda' (in Sinhala) and 'Puthandu' (in Tamil) is very important to all Sri Lankans and it celebrates the traditional Lunar New Year. It is celebrated by most Sri Lankans – a point of Unity and a Joyful occasion.
Even more importantly the holiday coincides with the New Year celebrations of many traditional calendars of South and South East Asia – a regional point of unity! Above all, this is also known as the month of prosperity.
So what does the holiday mean to you as a Sri Lankan, or maybe you are someone like me who may not be Sri Lankan but loves the country and its people?
At the World Bank Group, promoting shared prosperity and increasing the incomes of the poorest 40 percent of people in every country we work in is part of our mission. The first goal is to end extreme poverty or reduce the share of the global population that lives in extreme poverty to 3 percent by 2030.
Long one of the world’s most unequal countries, Brazil surprised pundits by recording a massive reduction in household income inequality in the last couple of decades. Between 1995 and 2012, the country’s Gini coefficient for household incomes fell by seven points, from 0.59 to 0.52. (For comparison, all of the inequality increase in the United States between 1967 and 2011 amounted to eight Gini points – according to this study.)