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Energy

Costly Electricity May Still Be Cheap

Zahid Hussain's picture

The deep power crisis that Bangladesh is currently living through is affecting more people than the 40 percent population who currently have access to electricity. The reasons are simple.

For industries power outages increase production costs and the operating uncertainty that enterprises face. Losses arise from spoilage of goods-in-process and damage to machinery. Often the cuts in power supply cause production losses lasting beyond the duration of the outage. E-commerce and ICT cannot operate without reliable supplies of electricity. Mechanization of businesses is rendered ineffective, affecting productivity. SMEs rely on electricity for a variety of needs—lighting, refrigeration, grain mills, water pumping, food preservation and you name it. More generally, economic growth that creates jobs and enhances incomes requires electricity. Less and unreliable electricity translates into less and unreliable jobs. This is now a well established fact.

The million dollar question is what do we do to energize the economy?

Bangladesh sets a world record – 5 million CFLs in a day, one bulb at a time!

Ashok Sarkar's picture

CFL bulbIf you were in Bangladesh in June, you would have found teachers in schools, preachers in mosques, and ads in newspapers, television, loudspeakers and pamphlets, encouraging people to bring in their incandescent bulbs to exchange with new Compact Fluorescent Lamps (CFLs) – and encouraged they were! On Saturday, June 19th 2010, at over 1,400 rural and urban distribution centers spread across 27 districts, manned by teachers, utility workers and other volunteers, Bangladeshis collectively took home about five million high quality CFL bulbs, in the first round of distribution.

 

They broke a record set by the British in January of 2008, for the most number of CFL bulbs distributed in a single day―some 4.5 million. In June, the Government and people of Bangladesh were inspired to do even better … and they did!

 

The New Normal? South Asia Looks East

Dipak Dasgupta's picture

The world South Asia will face after this crisis is not going to be the same as in the past. The trend that is accelerating after the financial crisis is that of the “new normal”: the shift in traditional engines of growth from industrial countries to emerging markets.

The crisis is accelerating this fundamental change in economic order in which developed countries have to save more and spend less, while emerging markets, such as China, India, Indonesia, Brazil, Russia, and South Africa begin to play much bigger roles in driving the global recovery. According to our estimates, by 2020, in just ten years---Asia may see its share of world GDP (in nominal dollars) climb to over one-third, replacing North America and the European Union as the biggest region. Underlying this is an expected sharp rise in shares of China and India, and indeed, that of all emerging markets may climb to nearly one-half of global output.

Is South Asia Moving Up?

Dipak Dasgupta's picture

The food, fuel, and financial crises during the last three years sent shockwaves throughout the world and its effects rippled across South Asia. It impacted growth, causing a reduction of growth by nearly 3% from the peak of 8.9% in 2007 to 6.3% in 2009, led to job losses, declines in stock market value, decreases in tourism, and increasing pressures on already weak fiscal, balance of payments, reserves and exchange rates.

I was based in New Delhi during the crisis, and the effects were palpable. For a moment, it looked as if confidence was ebbing---the construction cranes in Gurgaon (the fastest-growing township around Delhi) became silent, a young scholar at Delhi University ran a survey of what graduates might do as job markets became difficult, airlines ran half-empty and racked-up massive losses, jobs were lost heavily in diamond-cutting in Gujarat and IT firms stopped hiring in Bangalore, and people paused to consider the implications of such a dramatic change from the accelerating and heady growth of the previous years. But despite the circumstances, and thanks to strong and prompt government actions, confidence has swiftly returned, the region has proven to be quite resilient and a noticeable resurgence has taken hold.

Earth Day 2010: Events Around South Asia

Joe Qian's picture

With deep azure skies, bountiful sunshine, and a crisp but mild breeze today, spring is by far my favorite season in Washington. Today marks the 40th year since the advent of Earth Day, an occasion to create awareness and appreciation of the Earth’s environment that we all share in and enjoy. The event is now celebrated around the world as resources are increasingly stretched and environmental issues becoming more pertinent in our everyday lives.

I wanted to give an overview of some Earth Day related events happening in South Asia to mark the occasion.

Afghanistan:

National Saplings in Kabul: Green coverage has been reduced from 14 million hectares to 1 million hectare in Afghanistan.

Ushering in New Era of Openness and Transparency

Isabel Guerrero's picture

data.worldbank.org

The doors to the largest depository of development data in the world were just thrown open. Starting today, all our statistics are available online free of charge for all. The Open Data Access builds on the success of Data.Gov adopted by the US and UK and lets the global community create new applications and solutions to help poor people in the developing world.

Data, until now available through subscriptions only, is now accessible at data.worldbank.org. This is an important milestone for the World Bank, which complements the Access to Information reform. For many data is power. It is more than just numbers as it creates the space for dialogue based on facts and helps to foster new ideas.

The Economy Slumbers as Power Eludes Bangladesh

Zahid Hussain's picture
Photo Copyright of Jugantor

Have you ever tried explaining to non-economists what the consequences of resource misallocation can be for the economy?

What will happen if you invest enough in some sectors and too little in others? The answer is likely to be that you have enough production in sectors where you got your investments right and too little in the under-invested sectors. That may be correct in some cases, but it ignores the interdependence between the adequately invested and underinvested sectors. As a result, you may have too little production in the sectors where you have invested enough because you have too little production in the sectors you have neglected to invest.

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.

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