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Nepal

Employment Programs By Any Other Name...

Maitreyi Bordia Das's picture

Is it an employment program? Is it an anti-poverty program? Is it a safety net? Is it a disaster management program, is it…..? Actually, it’s all of these. Public works programs are both good development and good politics. India’s National Employment Guarantee Scheme (now called the Mahatma Gandhi EGS) , despite its implementation challenges, is fast becoming the stuff international lore is made of.

Demographers talk of the diffusion effects of ideas of low fertility and other behaviors. And while South Asian countries have a history of public works programs as safety nets – a history that actually goes back to the Maurya Empire in circa 3rd century BC - the diffusion effect of NREGS across South Asia is apparent. This is as much due to the urgent employment needs in all countries in the region, as due to the fact that the Congress victory in India was purported to have hinged significantly on NREGS.

Conflict and Development: Where is Conflict Concentrated in South Asia?

Ejaz Ghani's picture

After Iraq, South Asia is the second most violent place on earth. Conflict has increased in South Asia during the last decade. Where is conflict concentrated? What can be done about it?

Conflict is a very broad term, which is often defined differently in different contexts and data sets. We can, however, consider two broad classes of conflict. The first category includes conflict against the State. Examples of this include civil war or terrorism, which is an extreme manifestation of conflict, and it reflects a certain degree of organization of conflict. It is carried out by a relatively organized group of non-state actors, and directed against the State. Some researchers choose to focus on terrorism as a measure of conflict, because it has implications for the overall stability of the state itself, and therefore its ability to implement any developmental policy. The second category includes people-to-people conflict, rather than directed against the State. Examples of this include localized land conflicts, religious riots, homicides or other crimes. They too have adverse implications for development, but are probably less severe, compared to terrorism.

Perspectives on Climate Change from Nepal and Sri Lanka

Joe Qian's picture

In the course of my daily life here in Washington, climate change is discussed in small conversations, seen and heard on the news, and is an occasional contentious political issue. But truth be told, it feels like a remote subject. Rush hour traffic is as thick as ever, thermostats continue to be turned up, and the recent snow piled as high as I’ve ever seen.

It wasn’t until on a recent trip to Nepal and Sri Lanka for work that I could truly perceive some tangible effects and possible negative impacts of climate change. While driving through dimly lit Kathmandu, which was plagued by 9 hours of blackouts a day, I wondered what was affecting water tables so that less than optimal amounts of hydro power were being generated.

Results’ Agenda and Economists

Eliana Cardoso's picture

In the book, The Idea of Justice, Amartya Sen motivates the discussion on the importance of processes and responsibilities by relying on an example. In the Gita (part of the Mahabharata), on the eve of the crucial battle episode in the epic, Arjuna expresses his doubts about leading the fight which will result in so much killing. Lord Krishna, tells him that he, Arjuna, must perform his duty, that is, to fight. And to fight, irrespective of the consequences.

Krishna’s blessing of the demands of duty is meant to win the argument from a religious perspective. But most of us would share Arjuna’s concerns about the fact that, if the war were to occur, with him leading the charge on the side of justice and propriety, many people would get killed. He himself would be doing a lot of the killing, often of people for whom he had affection.

Do Cities Matter?

Ejaz Ghani's picture

It is a paradox that India which is among the most densely populated countries in the world, is also among the least urbanized. The figure below compares urbanization rates with income for more than 100 countries. It shows that an increase in urbanization rate is positively associated with real per capita income. This is the iron law of development—i.e., growth is associated with the reallocation of labor and capital away from traditional (rural) sectors to modern (urban) sectors. Spatial transformations that give rise to urbanization accelerate growth because households and firms benefit from scale economies, mobility, and specialization. Increased urbanization contributes to growth, job creation and poverty reduction. This can indeed become a virtuous circle.

Unlocking Nepal’s Future Through Entrepreneurship

Joe Qian's picture

Towering mountains, majestic temples, and colorful cityscapes are all characteristics that I had expected for Nepal. I wasn’t disappointed. Driving into Kathmandu, the myriad of exotic colors, shapes, and smells truly ignited my senses and the sense of respect for tradition and gracious hospitality unsurpassed.

Something I didn’t expect was the sense of liveliness on the streets and the industriousness of the people. This is especially evident amid challenges in infrastructure, connectivity, and constraints such as the lack of electricity for up to 9 hours a day and a noticeable lack of quality roads. In spite of this, there were numerous shops selling all kinds of goods and services dotted around the city creating a palpable sense of entrepreneurship and energy.

What are Key Areas for Regional Cooperation in South Asia?

Ejaz Ghani's picture

As discussed in my last two entries, South Asia's Infrastructure Deficit and Integrating the two South Asias, regional cooperation can be a key instrument in meeting the development needs of South Asia. In this piece, I will discuss specific areas that will bring the most region-wide benefits in my view.

The three priority areas for regional cooperation include telecoms and internet, energy, and transport. A regional telecom network and a high-bandwidth, high-speed internet-based network could help improve education, innovation, and health. A regional network would facilitate better flow of ideas, technology, investments, goods and services. It would facilitate greater interactions between knowledge workers in areas such as high-energy physics, nanotechnology, and medical research. There are untapped positive synergies at the regional level that would come from information sharing and competition in ideas among universities, non-university research and teaching entities, libraries, hospitals, and other knowledge institutions.

More and Better Jobs

Eliana Cardoso's picture

Forget the Homo Sapiens and the Homo Economicus. The guy who traces our destiny is the Homo Ludens, the man who plays. Johan Huizinga, a professor of history and linguistics, in his 1938 book, says that art and culture originate from our propensity to dance and have fun. But to enjoy life, play and build a peaceful world, you need a productive job that removes you from the daily struggle of making ends meet.

South Asia is unique in the multiplicity of its challenges and opportunities to generate productive employment. Start counting: many workers are stuck in low productivity agriculture and informal employment; there is low female labor force participation; the skill base is low; the countries in the region struggle with pervasive vulnerability and uncertainty, large economic and social disparities, and persistent conflict and violence.

Yet, there is no work that looks at all these factors in an integrated manner for the region. This is the reason why the World Bank’s first South Asia Region flagship report will focus on More and Better Jobs. This blog will keep readers informed on the progress of the report during next year.

How Can South Asia Overcome its Infrastructure Deficit?

Ejaz Ghani's picture

Last week, I discussed the two very different South Asias and the need for regional cooperation to bring the lagging regions up to the standards of thriving regions. However, increased market integration by itself will not be sufficient to accelerate growth and benefit the lagging regions. South Asia suffers from a massive infrastructure deficit. Infrastructure is like second-nature geography, which can reduce the time and monetary costs to reach markets and thus overcome the limitations of physical geography.

Improved infrastructure that enhances connectivity and contributes to market integration is the best solution to promoting growth as well addressing rising inequality between regions. The Ganga Bridge in Bihar in India is a good example of second-nature geography. The bridge has reduced the time and monetary costs of farmers in the rural areas in north Bihar to reach markets in Patna, the largest city in Bihar. The Jamuna Bridge in Bangladesh is another good example of spatially connective infrastructure. The bridge has opened market access for producers in the lagging Northwest areas around the Rajshahi division. Better market access has helped farmers diversify into high value crops and reduced input prices.

South Asia suffers from three infrastructure deficits. First, there is a service deficit, as the region’s infrastructure has not been able to keep pace with a growing economy and population.

The Poor and the Middle Class

Eliana Cardoso's picture

Start counting the poor in India and you are bound to get into controversy. In “A Comparative Perspective on Poverty Reduction in Brazil, China and India,” Martin Ravallion (October 2009) calculates that 42% of the population in India in 2005 lived in households with income per person below US$1.25 a day (converted using purchasing power parity exchange rates for consumption in 2005). But he finds only 20% of the population under the US$1.25 poverty line when using a different method as a sensitivity test. The difference is huge. One number is twice the other and corresponds to two hundred million people (more than the whole population of Brazil!).

Ravallion repeats the exercise and finds that in Brazil, in 2005, the population who lived in households with income per person below US$1.25 a day (converted using purchasing power parity exchange rates for consumption in 2005) is 8%. When using the alternative sensitivity test method, it is 10%. Compared to India, the difference is small (2% of the population) between the two measures.

I suspect that instead of trying to calculate the number of people with less than US$ 1.25 a day, policies for poverty reduction should focus on the bottom quintile of the population: the 20% poorest group in the country.

One of my reasons is that inequality matters. Think of poverty as a relationship.

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