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Pathways to Prosperity: An e-Symposium

Yue Li's picture
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Blog #9: Where you live decides how ‘well’ you live

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments. 

Location and poverty are intimately linked. In India’s rapidly transforming economy, where the boundaries between rural and urban have become increasingly blurred, living standards are much higher in ‘good’ locations, and much worse in places that are not so ‘good’. In the years to come, creating more such ‘good’ locations, and spreading their prosperity to surroundings areas, will play a key role in raising incomes and reducing poverty in India.

Pathways to Prosperity: An e-Symposium

Hanan Jacoby's picture

 

Blog #8: In building and agri boom, rural wage lift

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments. 

Real wages have risen across India in the past two decades, but the increase was especially marked among rural unskilled workers. Three drivers – falling rural female labor force participation, a construction boom, and favorable agricultural terms of trade -- help explain why unskilled rural workers fared better than their urban counterparts or workers with more education. Going forward, in light of lower agricultural prices and slower growth in the construction sector, some of the factors that contributed to the increase in relative wages for unskilled labor during this period may not be sustained over time. 

Helping farmers grow and prosper in Nepal

Purna Bahadur Chhetri's picture
District farmers discussing transportation and storage of seed potatoes. Credit: World Bank

In Nepal, the Jagattradevi and Tulsibhanjyang areas of the Syangja District are rapidly emerging as leading producers of seed potatoes -- whole or parts of potatoes intended to be re-planted as seeds -- which have traditionally been imported, mostly from India, to meet growing local demand.

Importing seeds from India is costly and time consuming. Therefore, producing seeds domestically is not only a lucrative activity but also a necessity for Nepali farmers, who are also dedicated to growing high-quality seed potatoes.

The Irrigation and Water Resources Management Project (IWRMP) has helped kick start the sustainable production and supply of this important food and cash crop. Since 2008, IWRMP has benefitted about 1,100 households and contributed to improving agriculture productivity and management of selected irrigation schemes in Nepal.

Pathways to Prosperity: An e-Symposium

Carlos Felipe Balcazar's picture


Blog #7: Jobs, not transfers, the big poverty buster


India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments. 

The significant shift from farm work to non-farm sources of income accelerated the decline in poverty in India. Non-farm jobs pay more than agricultural labor, and incomes from both were propelled by a steep rise in wages for rural unskilled labor. While lower dependency rates and transfers - from remittances and social programs - have contributed to a reduction in poverty, they are not the primary drivers of the poverty decline between 2005 and 2012.

How Higher Education in Bangladesh Creates Opportunities

Tashmina Rahman's picture
Students hold a discussion. Improved quality of higher education provides an opportunity for better jobs.

A couple of months ago, I visited a few tertiary colleges affiliated with the National University in Bangladesh while preparing the College Education Development Project which aims to strengthen the strategic planning and management capacity of the college subsector and improve the teaching and learning environment of colleges. Almost two-thirds of all tertiary students in Bangladesh are enrolled in these colleges, making them the largest provider of higher education in the country.

World Bank report on education in Bangladesh

A recent World Bank report estimates that around 1.6 million tertiary students in Bangladesh are enrolled in around 1,700 government and non-government colleges affiliated under the National University. This piece of information underpins a huge economic opportunity in context with Bangladesh’s quest to become a middle-income country over the next few years. There is a strong demand for graduates with higher cognitive and non-cognitive skills and job-specific technical skills in the country. This requires an improvement in the quality and relevance of tertiary education to ensure graduates have more market relevant skills. The National University student enrolment size combined with its sheer number of colleges network all over the country make it the critical subsector for making a qualitative dent in the higher education system.

Pathways to Prosperity: An e-Symposium

Gaurav Datt's picture
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Blog #6: India, the driver of growth for Bharat

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments.
 
How has India’s recent growth impacted poverty in the country? We look at how India’s rapid structural transformation over the past three decades —the shift from agriculture to industry and services, and from rural to urban areas – is changing the relationship between economic growth and poverty reduction.

Harnessing Stitches for Riches in South Asia

Gladys Lopez-Acevedo's picture
Stitches to Riches? The Potential of Apparel Manufacturing in South Asia

In the coming years and decades, China is expected to slowly relinquish its lead position in the global apparel market, opening the door to other competitors. This is a huge opportunity for South Asia to create at least 1.5 million jobs that are “good for development” – of which half a million would be for women – according to a new World Bank report Stitches to Riches?  But those numbers could be much higher if the region moves quickly to tackle existing impediments and foster growth in apparel, which will also yield dividends for other light manufacturers (like footwear and toys).
 
How South Asia fits in the global apparel market
Currently, China holds by far the largest share of global apparel trade – at 41 percent, up from 25 percent in 2000, with about 10 million workers. But as China continues to develop, it is likely to move up the global value chain into higher-value goods (like electronics, and out of apparel) or switch production among sectors in response to rising wages. A 2013 survey of leading global buyers in the United States and European Union (EU) found that 72 percent of respondents planned to decrease their share of sourcing from China over the next five years (2012-2016).
 
Already, the top four apparel producers in South Asia – Bangladesh, India, Pakistan, and Sri Lanka – have made big investments in world apparel trade, now accounting for 12 percent of global apparel exports (see figure). In terms of apparel export value, Bangladesh leads the pack (at $22.8 billion), followed by India ($12.5 billion), Sri Lanka ($4.4 billion), and Pakistan ($4.2 billion).
 
China dominates global apparel trade
(Country share of global apparel exports)


Source: Stitches to Riches?
 
Why apparel jobs are “good for development”
When we think of jobs that are “good for development,” the main yardstick is whether they will help translate growth into long-lasting poverty reduction and broad-based economic opportunities. Apparel fits the bill for numerous reasons. 

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