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Poverty

Building an #EndPovertyMosaic – Together

Mario Trubiano's picture
© World Bank


Every October, the World Bank Group and International Monetary Fund (IMF) come together for our joint Annual Meetings. There, thousands of delegates from around the globe convene to discuss the world’s most pressing challenges in the quest to End Poverty.

These discussions, covering dozens of sectors in every region of the world, offer many innovative solutions that affect millions – if not billions – of people globally. Looking back, all the small gains from many initiatives from 1990 to 2013 led to a reduction of global extreme poverty of more than one billion people.

Securing a prosperous future for Afghanistan amidst challenges

Christina Wieser's picture
 Rumi Consultancy/ World Bank
According to a recent report, just over half of Afghan children attend primary school and most of them were boys. Photo Credit: Rumi Consultancy/ World Bank


Fueled by unprecedented levels of aid, literacy, school enrollment, and access to basic services, Afghanistan made tremendous progress between 2007–08 and 2011–12. However, declining aid and increasing conflict during the period between 2011–12 and 2013–14 slowed progress, especially on education and maternal health outcomes, as documented by our recent World Bank report, the “Afghanistan Poverty Status Update: Progress at Risk.”

In this blog, we look at how Afghanistan has performed across several important development indicators in the last few years.

Six reasons why Sri Lanka needs to boost its ailing private sector

Tatiana Nenova's picture
 Joe Qian / World Bank
A view of the business district in Colombo. Credit: Joe Qian / World Bank

Sri Lanka experienced strong growth at the end of its 26-year conflict. This was to be expected as post-war reconstruction tends to bring new hope and energy to a country.
 
And Sri Lanka has done well—5 percent growth is nothing to scoff at.  
 
However, Sri Lanka needs to create an environment that fosters private-sector growth and creates more and better jobs. To that end, the country should address these 6 pressing challenges:

1. The easy economic wins are almost exhausted

For a long time, the public-sector has been pouring funds into everything from infrastructure to healthcare. Unfortunately, Sri Lanka’s public sector is facing serious budget constraints. The island’s tax to growth domestic product (GDP) ratio is one of the lowest in the world, falling from 24.2% in 1978 to 10.1% in 2014. Sri Lanka should look for more sustainable sources of growth. As in many other countries, the answer lies with the private sector.
 
2. Sri Lanka has isolated itself from global and regional value chains 

Over the past decades, Sri Lanka has lost its trade competitiveness. As illustrated in the graph below, Sri Lanka outperformed Vietnam in the early 1990s on how much of its trade contributed to its growth domestic product. Vietnam has now overtaken Sri Lanka where trade has been harmed by high tariffs and para-tariffs and trade interventions on agriculture.


Sri Lanka dropped down by 14 notches to the 85th position out of 137 in the recent  Global Competitiveness Index.
           
3. The system inhibits private sector growth

Sri Lanka’s private sector is ailing. Sri Lankan companies are entrepreneurial and the country’s young people are smart, inquisitive, and dynamic. Yet, this does not translate into a vibrant private sector. Instead, public enterprises are the ones carrying the whole weight of development in this country.
 
The question is, why is the private sector not shouldering its burden of growth?


From the chart above, you can see how difficult it is to set up and operate a business in Sri Lanka. From paying taxes to enforcing contracts to registering property, entrepreneurs have the deck stacked against them.
 
Trading across borders is particularly challenging for Sri Lankan businesses. Trade facilitation is inadequate to the point of stunting growth and linkages to regional value chains. The chart explains just why Sri Lanka is considered one of the hardest countries in the world to run a trading business. Compare it to Singapore–you could even import a live tiger there without a problem.

How remittances help the poor but not the most vulnerable Somalis

Utz Pape's picture
Somalis make a living in the harshest of natural environments. Photo: Hassan Hirsi/World Bank


One year ago, we did not know how many Somalis were poor and how programs and policies could help to reduce poverty or at least build resilience against falling deeper into poverty. We knew that Somalis receive an estimated $1.4 billion (24 percent of GDP) in remittances every year. But we did not know whether the poor received the remittances and whether they helped mitigate the impact of poverty. To overcome this dearth of information, we implemented the Somali High Frequency Survey and established a near real-time market price monitoring system.

Voices of non-violence

Chloe Fevre's picture

Today, October 2nd, is the International Day of Non-Violence, a day that reminds us of the serious development challenge of interpersonal violence.
 
Violence is a multi-causal phenomenon. Therefore, preventing violence requires a multi-sectoral approach. What does this concretely mean? It means that to prevent violence in a sustainable way, we need to address its multiple causes at the same time. It also means to move away from a punitive perspective solely focused on the criminal justice system and acknowledge the shared responsibility for violence prevention and the need for different sectors and government agencies to contribute to solving the issue.

Canada and the World Bank: Empowering women and girls is the best way to build a better world for all

Marie-Claude Bibeau's picture
A woman tends to plants in a nursery in Sri Lanka. © Lakshman Nadaraja/World Bank
A woman tends to plants in a nursery in Sri Lanka. © Lakshman Nadaraja/World Bank

We face global challenges on an unprecedented scale: climate change, natural disasters, poverty, water scarcity, food insecurity, global displacement, conflict and violence. These are not the kinds of challenges that will go away on their own—they feed off one another and flourish. The world is responding with the Sustainable Development Goals (SDG), which lay out a road map to building a more inclusive, peaceful and prosperous world—a better world.

Sri Lanka, you have a right to know!

Idah Z. Pswarayi-Riddihough's picture
Sri Lanka's Right to Information act (RTI) can help citizens hold governments accountable and encourage citizens to participate actively in their democracy.
Sri Lanka's Right to Information act (RTI) can help citizens hold governments accountable and encourage citizens to participate actively in their democracy.


Today, the world marks the International Day for the Universal Access to Information. Fittingly, we in Sri Lanka, celebrate 7 months since the Right to Information (RTI) Bill was enacted.  

The product of a slow and steady reform process, RTI is a milestone in Sri Lanka’s history.

Yet how many citizens know about its benefits?

As open access to information takes international center stage today, I’m hoping Sri Lanka’s Right to Information Bill, one of the world’s most comprehensive, will get the attention it deserves.

There is indeed much to celebrate.

Civil society organizations and private citizens are putting Sri Lanka’s RTI to the test. Diverse requests have been filed, from questions relating to how investments are made for the Employees’ Provident Fund (EPF) to how soil and sand mining permits have been allotted in districts like Gampaha.

Interestingly, people living in rural areas are more aware -- and vocal -- of their rights to know than people in urban areas.

The government is making steady progress. In the last six months, more than 3,000 information officers have been recruited. An independent RTI Commission enforces compliance and acts on those who do not follow the law. If, for example, an information officer refuses to release information pertaining to a citizen’s life, they must provide a valid reason or face legal penalties.

In the next few years, the Sri Lankan bureaucracy faces the huge task of revamping its record management, including its land registration system. This reform is an opportunity to live up to RTI’s ambitions of open governance and help citizens access land title information and records that give them a legal title to their property.

Book review- The Aid Lab: Understanding Bangladesh’s Unexpected Success by Naomi Hossain

Duncan Green's picture

Over the summer I read a few absolutely brilliant books – hence the spate of book reviews. This week I will cover two new studies on development’s biggest recent success stories – China, but first Bangladesh.

How did Bangladesh go from being a ‘basket case’ (though ‘not necessarily our basket case’ – Henry Kissinger, 1971) to a development success story, claimed by numerous would-be fathers (aid donors, NGOs, feminists, microfinanciers, low cost solution finders)? That’s the subject of an excellent new book by Naomi Hossain.

The success is undeniable. Per capita income is up to $2780 from $890 in 1991 (PPP terms). Today, that economic progess is built on 3 pillars: garments (80% of exports, 3m largely female jobs), migration (remittances = 7-10% GDP, about 9m workers overseas, mainly men) and microfinance (which has been used by about half of all households).

But perhaps even more interesting, social progress has outstripped economic growth. Infant mortality down from 258/1,000 in 1961 to 47 in 2011; women were having 7 kids in 1961 and are now having 2. In Hossain’s words (she writes well) ‘Bangladesh is the smiling, more often than not sweetly female, face of global capitalist development. Better yet – she often wears a headscarf as she goes about enjoying her new economic and political freedoms, signalling that moderate Islam can couple with global capitalism.’ (And yes, she does acknowledge that there is still a lot of hunger and deprivation).

The ‘how’ of Bangladesh’s transformation is reasonably well known. What interests Hossain is the ‘why’. It certainly isn’t down to good governance – ‘it has never been obvious why an elite known best for corruption and violent winner-takes-all politics should have committed its country to a progressive, inclusive development pathway.’

Equality of opportunity for what?

Daniel Mahler's picture

Equality of opportunity is a popular policy objective around the world. It is deeply embodied in the American Dream and has resonated with politicians ranging from Margaret Thatcher to Nelson Mandela. It is also connected to the World Bank’s goal of shared prosperity; individuals with low opportunities should have a chance of growing and prospering in life.

Adapting to Climate Change: Disaster Risk Mitigation

Joaquim Levy's picture
A family whose home floods every year, creating hazardous living conditions in Colombia. © Scott Wallace/World Bank
A family in Colombia whose home floods every year, creating hazardous living conditions. © Scott Wallace/World Bank


Climate shocks have profound implications for the development prospects of the World Bank’s client countries. For many emerging market and developing economies (EMDEs), the adverse impact is already a reality, with natural disasters becoming more frequent and severe. Unfortunately, many countries still lack the capacity to cushion these blows, and this can spur political fragility, food insecurity, water scarcity, and, in extreme cases, conflict and migration. Even in milder manifestations, these impacts can derail development and set back gains from years of investment


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