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Poverty

Against the tide: A look at the countries where poverty has been on the rise, despite falling global numbers

Francisco Ferreira's picture

The last quarter century saw remarkable progress against extreme poverty, globally. Between 1990 and 2013, the percentage of the world’s population living at or under $1.90/day fell from 35.3% to 10.7% - that is, from more than one in three people to approximately one in ten, planet-wide. Even in the shorter period between 2002 and 2013, the reduction was from 25.8% to 10.7%, meaning that about 850 million people moved out of extreme poverty during that decade alone.

IDA: On the Frontlines of Ending Extreme Poverty

Axel van Trotsenburg's picture


Today is “End Poverty Day.” This is an important marker in the fight to end extreme poverty by 2030—a time for us to renew our collective commitment to do more and better to end poverty, and reflect on what the global community has accomplished together.
 
Since 1960, the International Development Association, IDA, has stood at the frontlines of our work in the poorest countries. IDA investments help spur greater stability and progress around the world by preventing conflict and violence, generating private sector investment, creating jobs and economic growth, preventing the worst effects of climate change, and promoting gender equality and good governance.
 
With IDA’s help, hundreds of millions of people have escaped poverty—through the creation of jobs, access to schools, health facilities, social safety nets, roads, electricity, and more. Our most recent results show quite simply that IDA works. For example, from 2011-17, IDA helped more than 600 million people receive essential health services, 30 million pregnant women receive prenatal care from a health provider, recruit 8 million teachers, and immunize a quarter of a billion children.

The 2017 global poverty update from the World Bank

Francisco Ferreira's picture
This year’s global poverty update from the World Bank is a minor one. Until reference year 2008, the World Bank published new poverty estimates every three years, and between 2010 and 2013 we released new numbers every year (see here).

Let’s work together to make land rights for women a reality

Victoria Stanley's picture
Video: Land ownership for women prevents fears of uncertainty


Around the world, rural women are a major provider of food and food security. The Food and Agriculture Organization of the United Nations argues that improving women’s access to productive resources (such as land) could increase agricultural output by as much as 2.5% to 4%. At the same time, women would produce 20-30% more food, and their families would enjoy better health, nutrition, and education.

But women in rural areas often face both formal and informal barriers to accessing and owning land. Today, only 30% of land rights are registered or recorded worldwide, and women are the least secure in their access to land rights, with major gaps existing between law and practice in many developing countries.

A richer array of international poverty lines

Francisco Ferreira's picture

Is poverty absolute or relative? When we think of (one-dimensional) income poverty, should we define the threshold that separates the poor from the non-poor as the cost of purchasing a fixed basket of goods and services that allows people to meet their basic needs?  Or should we instead think of it as relative deprivation: as earning or consuming less than some given proportion of the country’s average living standard?

Bicycles can boost Bangladesh's exports

Nadeem Rizwan's picture
Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall
Bicycles are the largest export of Bangladesh’s engineering sector, contributing about 12 percent of engineering exports. Credit: World Bank
This blog is part of a series exploring new sources of competitiveness in Bangladesh

Did you know that Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall?

Bicycles are the largest export of Bangladesh’s engineering sector, contributing about 12 percent of engineering exports.
 
This performance is in large part due to the high anti-dumping duty imposed by the EU against China.
 
Recently, the EU Parliament and the Council agreed on EU Commission’s proposal on a new methodology for calculating anti-dumping on imports from countries with significant market distortions or pervasive state influence on the economy.
 
This decision could mean that the 48.5 percent anti-dumping duty for Chinese bicycles may not end in 2018 as originally intended. China is disputing the EU’s dumping rules at the World Trade Organization.
 
As the global bicycle market is expected to grow to $34.9 billion by 2022, Bangladesh has an opportunity to diversify its exports beyond readymade garments. Presently, Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall.
Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall
EU27 bicycle imports in 2016 (Million $). Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall. Source: UNComtrade through WITS

However, if the EU anti-dumping duty against China is reduced or lifted after 2018, Bangladesh’s price edge might be eroded.
 
Bangladeshi bicycle exporters estimate that without anti-dumping duties, Chinese bicycles could cost at least 10-20 percent less than Bangladeshi bicycles on European markets. And Chinese exporters can ship bicycles to the EU market with 35-50 percent shorter lead times.
 
So, how can Bangladeshi bicycles survive and grow?

The future of Jobs and Skills: A gloomy or glowing scenario for the less skilled workers?

Rita Almeida's picture


Fears abound that automation and other advanced technologies will lead to job losses for lower-skilled workers in emerging economies and exacerbate inequality. Each new wave of technological progress is met with dire predictions. The most critic argue that the unprecedented pace of technological change today will have more dramatic effects on the future of work as new technologies (including robots and artificial intelligence) are increasingly replacing more educated workers and more cognitive and analytical work. At the same time, many economists argue that technology adoption will significantly increase firm productivity and result in job expansion, at least in the medium run under certain policy conditions. The impacts of technology adoption on overall employment and on the skills composition of occupations are ultimately an empirical question.

A celebration of Richard Thaler’s Nobel Prize and a new field – Behavioral Development Economics

Karla Hoff's picture

Could a parent’s decision to vaccinate a child depend on a free bag of lentils?  The premise seems implausible:immunization can be a matter of life and death, and a bag of lentils is worth only a dollar.  Yet a randomized controlled trial in India showed that a gift to parents of a 1 kg bag of lentils and a set of plates can dramatically raise the percentage of children protected against major disease (Banerjee et al. 2010).  Providing a quality immunization camp alone increased the percentage of fully immunized children from 6% to 18%.  The addition of the lentil and plate ‘incentives’ raised the figure to a whopping 39%.  How can we explain the outsize effect of a gift of everyday household items?

The localization of the Sustainable Development Goals: Implementing the SDGs in Colombia, Indonesia, and Kenya

Mahmoud Mohieldin's picture
Medellin, Colombia. (Photo: World Bank Group)

We are approaching the end of year two of implementing the Sustainable Development Goals (SDGs). In September 2015, global leaders from 193 countries set a 15-year deadline – by the year 2030 – to reach the SDGs, a roadmap to end poverty, promote equality, protect people and the planet, while leaving no one behind.
 
What have countries accomplished in these past two years at the local level – where people receive vital goods and services to live and thrive – in areas such as health, education, water, job training, infrastructure? (The results are mixed) Have we raised enough financing? (Likely not). Do we have adequate data to measure progress? (Not in all countries). Some global development leaders have expressed concern that we may not be on track to reach critical SDGs in areas such as health and poverty.
 
To achieve the SDGs, we have to focus on building capacity of development actors at the local level to finance and deliver services that change the lives of people in their communities. This view is well-supported by a joint United Nations Development Program (UNDP)-World Bank Group (WBG) report, which shows that gaps in local delivery capacity are a major factor in determining the success – or failure – of efforts to reach the Millennium Development Goals (MDGs), the predecessor of the SDGs.
 
The lynchpin for successful local implementation of the SDGs is SDG 11, which focuses on making cities and human settlements inclusive, safe, resilient, and sustainable. It is vitally important to manage the process of urbanization to achieve all of the SDGs, not least because the world population is likely to grow by a billion people – to 8.6 billion – by 2030, with most of this growth to be absorbed by urban areas in developing countries.
 
Tackling the challenges facing cities, such as infrastructure gaps, growing poverty, and concentrations of informal housing requires a multi-faceted approach that includes coordinated regional planning with strong rural-urban linkages, effective land use, innovative financing mechanisms, improved and resilient service delivery models, sustained capacity building, and the adoption of appropriate smart and green growth strategies.
 

The WBG is working with our many partners, including countries, the United Nations, the private sector, and civil society to provide more effective, coordinated, and accelerated support to countries for implementing the SDGs at the national and local levels. We have provided below examples from three countries, from diverse regions and situations, which have begun this work in earnest.
 
Following the end of a 50-year conflict in 2016, Colombia has a chance to consolidate peace after the signing of a peace agreement. The National Development Plan of 2014-2018 includes an ambitious reform program focusing on three pillars: peace, equity, and education. Through strong collaboration with all stakeholders – local governments, communities, civil society, businesses, and youth, among others – Colombia is focusing on improving institutional capacity and financing for local and regional governments, enhancing basic services in both rural and urban areas.
 
Medellin city, which in the 1990s had the highest murder rate in the world, has emerged as a confident leader, implementing an integrated and multi-sector approach that has included a combination of violence prevention programs, and the transformation into a prosperous, inclusive, and livable city. Their efforts, with support from the WBG and other partners, have the strong support of local business leaders who recognize that improving poor people’s lives can help reduce the core inequities that fueled conflict in the past. The Government of Colombia is also implementing a program to enhance the capacity at the municipal level in public finance, planning, and management, to help build infrastructure and improve service delivery.

Everyone misbehaves: Putting the 2017 Economics Nobel Prize to work for development

eMBeD Team's picture

Monday’s announcement of the 2017 Nobel Prize for economics, to Richard Thaler, for his groundbreaking work incorporating psychology into economic theory, was a victory not only for the University of Chicago Professor and co-author of Nudge: Improving Decisions about Health, Wealth, and Happiness, but for behaviorally-informed policy worldwide.


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