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.
Some say natural resources are a curse, others say they are neither curse nor destiny (see here and here for examples). The jury may still be deliberating on the evidence but, in the meantime, resource-rich, income poor countries like Liberia, Sierra Leone and others need to find their way forward. They have to be responsive to the enormous needs of their populations or face dire consequences.
For post-conflict countries, the policy learning curve must of necessity be steep, since they neither have the luxury of time nor the expanse of fiscal space to benefit from learning by doing over the longer-term. A primary challenge for policy makers in these countries is to identify a “a fail-safe” model that can, with few degrees of freedom on the political, social, and economic dimensions, deliver sustained, inclusive growth and poverty reduction at levels that will appease a youthful, impatient population.
Over half of the 12 million people living in Somalia are acutely food insecure. This adds to the development challenge for Somalia after more than two decades of civil war and political instability. In particular, the urgent need for humanitarian assistance bears the risk of fostering aid dependency. To embark on a sustainable pathway toward development instead, intervention should rely on markets (whenever possible), and react dynamically to changes in market equilibria.
Therefore, we started to monitor 14 Somali markets and publish the data in near real-time using something similar to what we use for South Sudan, the innovative survey and analysis methodologies.
The story of a country’s economic development is often told through the lens of new roads, factories, power lines, and ports. However, it can also be told through the voices of every day heroes, individuals who have taken action to improve their lives and those around them. In this blog series, the World Bank Group, in partnership with the Ivorian newspaper Fraternité Matin and blogger Edith Brou, tells the stories of those individuals who, with a boost from a Bank project, have set economic development in motion in their communities.
Young Soulama Siaka is dressed in his khaki school uniform and is sitting quietly next to his uncle, Kone Birama, in the yard of their family home. The bare yard reflects the destitution of his family after the political crisis. “I couldn’t even afford to send my children to school,” he says. Children drop out of school nearly everywhere in Côte d’Ivoire because their families cannot afford the tuition fees.
Various scholars have indulged tremendous resources to study poverty. Amartya Sen is among such scholars. He used the ideas of Adams Smith as his building blocks and looked at poverty as lacking the basics that one needs in order to co-exist in the society. The World Bank estimates that 4 out of 10 Kenyans live in poverty. Consequently, several approaches to reduce poverty have been tried and tested in Kenya. In most cases, these approaches have been a blend of various theories, which have been opined by various scholars. However, it is my belief that just like cancer – which requires a combination of chemotherapy and proper nutrition – poverty cannot be fought using a single approach.
Sustainable energy access is vital to the eradication of poverty. I believe that by providing access to affordable energy, it triggers the domino effect of bringing light, clean water, tools of communication and learning, improving health, and allowing for the establishment and growth of small businesses. World Bank President Jim Yong Kim stated when joining the Sustainable Energy for All initiative in 2012, “Ending poverty and ensuring sustainability are the defining challenges of our time. Energy is central to both of them.”
As African Presidents, Prime Ministers, and business leaders arrive in Washington to attend the first US-Africa Summit, one topic that will be paramount in their discussions with President Obama and his Cabinet is: how governments and families can access affordable electricity across the African continent.
Consider the facts: one in three Africans, that’s 600 million people, has no access to electricity. Neither do some 10 million small and medium-sized enterprises. Those homes and businesses fortunate enough to have power pay three times as much as those in the United States and Europe; furthermore, they routinely endure power outages that cost their countries from one to four percent in lost GDP every year.
Despite the fact that Africa is blessed with some of the world’s largest hydropower and geothermal resources (10-15 GW of geothermal potential in the Rift Valley alone), bountiful solar and wind resources, as well as significant natural gas reserves, total power generation capacity in Africa is about 80,000 megawatts (MW) (including South Africa), roughly the same as that of Spain or South Korea.
As Africa enters its 20th consecutive year of economic expansion, with the World Bank forecasting that Africa’s GDP growth will remain steady at 4.7 percent in 2014, and strengthening to 5.1 percent in each of 2015 and 2016, the continent needs more electric power. Specifically, Africa needs to add 7,000 MW of generation capacity each year to meet the projected growth in demand, yet it has achieved only 1,000 MW of additional power generation annually.
Over the last week I visited Cameroon and the Democratic Republic of the Congo, two of Africa’s so-called ‘fountain states.’ The resources in these two countries – along with Guinea, Ethiopia, and Uganda – can generate enough hydroelectricity to satisfy the growing demand in Africa. I saw the range of applications for which this power is needed, and I saw clear solutions.
In Eastern Cameroon I visited the construction site for the Lom Pangar hydropower project. Once construction is complete and the reservoir is filled in the next couple of years, this new dam on the Sanaga River will improve the reliability of power supply and lower the cost for up to five million Cameroonians. The Lom Pangar project will also pave the way for developing the full 6,000 MW of hydropower potential of the Sanaga River by regulating the flow of the river.
In the Democratic Republic of Congo, last week, I visited the Inga hydropower site on the mighty Congo River. DRC’s overall hydropower potential is estimated at 100,000 MW, the third largest in the world behind China and Russia, yet only 2.5% of this key resource has been developed. With 40,000 MW of generation potential, Inga is the world’s largest hydropower site. Its proper development can make Inga the African continent’s most cost-effective, renewable source of energy with an estimated generation cost of US$ 0.03 per kilowatt hour with little or no carbon footprint--a significant added virtue.
Preparing a recent project mission to Angola, I came across the country’s latest accomplishment: a gigantic new refinery to consolidate its national oil industry. Looking at that massive structure, I was hit with a sudden thought: if they can pull off such an enormous and complex feat of engineering, what do they need me for?
According to the World Bank report, "Women and Trade in Africa: Realizing the Potential", eliminating gender-specific barriers can help boost trade and increase productivity in Africa. Behind the research for this report were women who shared their personal stories of how they overcame gender discrimination at work in order to realize their potential.