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East Asia and Pacific

Book Review: How China Escaped the Poverty Trap, by Yuen Yuen Ang

Duncan Green's picture

Following on from yesterday’s book review on an account of Bangladesh’s success, here’s a great book on another developmental superstar – China.

The macro-story on China is well known, but always bears repetition. Emerging from the carnage of the Mao era, China in 1980 had a GDP of $193 per capita, lower than Bangladesh, Chad or Malawi. It’s now the world’s second largest economy, with a thirty fold increase in GDP per capita, based on a textbook-defying combination of one party Communist state and capitalism – in the words of one tongue in cheek official ‘no capitalist state can match our devotion to the capitalist sector.’

Success on this scale inevitably finds many intellectual fathers claiming paternity – China is variously portrayed as a victory for a strong state; free markets; experimentation and for central planning. How China Escaped the Poverty Trap blows the conventional explanations away, drilling down into what actually happened, reconstructing the history of different cities and provinces through years of diligent research.

This book is a triumph, opening a window onto the political economy of China’s astonishing rise that takes as its starting point systems and complexity. Its lessons apply far beyond China’s borders. The author, Yuen Yuen Ang (originally from Singapore) is Associate Professor of Political Science at the University of Michigan.

Ang starts with a classic developmental chicken and egg problem – which comes first, good institutions or economic prosperity? Different camps within academia and the aid business urge developing countries either to ‘first, get the institutions right’ or ‘first, get growth going’ – and then the rest will follow.

KIAT Guru: Engaging communities to improve education in Indonesia

Ede Ijjasz-Vasquez's picture
Indonesia successfully reduced its poverty rate over the last two decades. Yet, this growth was accompanied by one of the fastest increases in inequality in East Asia and the Pacific.  While the poverty rate in urban areas has fallen to 8.2%, in remote and rural areas it remains around 14%.

This inequality is exacerbated by the persistent poor quality of public services, such as education, in rural and remote areas. While various government initiatives have improved access to education, quality and equity remain major challenges for those in rural and remote areas.
 
To address these issues, the World Bank has partnered with the government of Indonesia to launch a pilot project called “KIAT Guru,” which aims to improve teacher presence, teacher service quality, and student learning outcomes, while enhancing community engagement and participation in remote areas.

“We [have] two different mechanisms. One of them is community empowerment… The community develops a service agreement with schools so they can agree upon the five to seven indicators that they think are a priority,” says Dewi Susanti, Senior Social Development Specialist, who leads the project.

In this video, Dewi Susanti and World Bank Senior Director Ede Ijjasz-Vasquez (@Ede_WBG) discuss the KIAT Guru project and the lessons learned from its early stages.  
 
KIAT Guru project

Four ways regional bodies can help deliver justice commitments made through the SDGs

Temitayo O. Peters's picture

The Sustainable Development Goals (SDGs) differ from the Millennium Development Goals (MDGs) in many ways. Unlike the MDGs, the SDGs universally apply to all countries and they are holistic and integrated. Moreover, their delivery is to be achieved by governments, civil society, and the private sector all working together to achieve their success.
 
The SDGs also recognize the central role of justice in achieving development, with Goal 16 specifically guaranteeing “equal access to justice for all.” Governments, in partnership with other stakeholders, must make necessary national reforms to provide access to justice to the billions who currently live outside of the protection of the law. They must commit to financing the implementation of these reforms and be held accountable for their success.
 
Regional and sub regional bodies are uniquely placed to assist governments with implementing and monitoring justice commitments made through the SDGs. Learnings from the MDGs show that countries that integrated the MDGs into existing regional strategies were far more successful in meeting the MDGs’ objectives than countries that did not have the support of an existing regional strategy.

#9 from 2014: Exit, Voice, and Service Delivery for the Poor

Robert Wrobel's picture

Our Top Ten blog posts by readership in 2014.
This post was originally posted on January 08, 2014


Inspired by Jeremy Adelman’s wonderful biography of Albert Hirschman (Worldly Philosopher: The Odyssey of Albert O. Hirschman, Princeton University Press, 2013), I’ve read and reread Hirschman’s masterpiece, Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations, and States, (Harvard University Press, 1970) and his follow up essay “Exit, Voice, and State” (reprinted in The Essential Hirschman, Princeton University Press, 2013). Although Hirschman produced these works over 40 years ago, his simple model of flight (“exit”) or resistance (“voice”) in the face of unsatisfactory economic, political or social conditions remains highly relevant for policymakers and development practitioners concerned with eliminating extreme poverty, reducing inequality, and improving basic services accessible to the poor.

Hirschman’s ideas provide much cause for reflection within the context of present-day Indonesia. Indonesia has enjoyed over a decade of macroeconomic stability and economic growth. From 2000 to 2011 GDP expanded by 5.3 percent per year, and the official poverty count halved from 24 percent in 1999 to 12 percent in 2012. This period also saw notable improvements in health and education. Access to education has become more widespread and equitable. Girls are now as likely as boys to graduate from secondary school. In health, Indonesia is on track to meet Millennium Development Goals for reducing both the prevalence of underweight children under five years old, and the under-five mortality rate.

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

So Maybe Money Really Does Buy Happiness?
Inc. Magazine
Emerging Asian nations are finding out what developed ones did years ago: money--and the stuff it buys--brings happiness. Levels of self-reported well-being in fast-growing nations like Indonesia, China and Malaysia now rival those in the U.S., Germany and the United Kingdom, rich nations that have long topped the happiness charts, according to a Pew Research Center global survey released Friday. It says it shows how rises in national income are closely linked to personal satisfaction. The pollsters asked people in 43 countries to place themselves on a "ladder of life," with the top rung representing the best possible life and the bottom the worst. Pew carried out the same survey in 2002 and 2005 in most of those countries, enabling researchers to look at trends over time.

Telling It Straight: How Trustworthy Government Information Promotes Better Media
CIMA
In new and emerging democracies, in countries coming out of conflict, in societies in transition where for decades information was repressed, being open with the public through the press and disseminating reliable information in a systematized and responsive fashion is a new concept. Yet, just as the media are crucial to informing the public, so too are governments in getting out information that reporters and hence citizens can use.

Media (R)evolutions: Mobile Games by Market

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

Mobile games, developed for smartphones and tablets, represent an incredibly lucrative industry that is expanding very fast! They are the fastest growing segment of the overall games market, boasting a Cumulated Annual Growth Rate of 19%.  Revenues are expected to reach $21.7 billion in 2014 and $35.4 billion by 2017. The growth in mobile games is fueled by both an increase in the number of players worldwide but also a greater willingness on the part of consumers to spend money on mobile games. 

The following infographic illustrates that with 56% of the global revenue, Asia Pacific is the biggest market, and revenue within the region is estimated to reach $12.2 billion this year. However, Latin America takes the lead in terms of growth, with a year-on-year growth rate of 60% between 2013 and 2014.


 

Media (R)evolutions: Asia Pacific's Pay-TV Boom

Roxanne Bauer's picture
New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

When people talk about innovation in media, digital devices and social media are most likely to come to mind.  Yet, at the end of the day, we all like to watch TV.  

Global pay TV revenues, calculated as a total of subscription fees and on-demand movies and TV episode, will reach $209 billion in 2020, an increase from $193 billion in 2013, according to a new report from Digital TV Research.   While revenues are expected to decrease in North America by 9.2% (around $9 billion) between 2013 and 2020 and in Western Europe by 1.6%, these declines will be more than offset by revenue growth of nearly $15 billion (up by 47%) in the Asia Pacific region. Revenues will also more than double in Sub-Saharan Africa to $5 billion.


Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Big data: 4 predictions for 2014
The Guardian
"One could look back at 2013 and consider it the breakthrough year for big data, not in terms of innovation but rather in awareness. The increasing interest in big data meant it received more mainstream attention than ever before. Indeed, the likes of Google, IBM, Facebook and Twitter all acquired companies in the big data space. Documents leaked by Edward Snowden also revealed that intelligence agencies have been collecting big data in the form of metadata and, amongst other things, information from social media profiles for a decade." READ MORE


The rise of civil society groups in Africa
Africa Renewal
"Under the glaring sun of a recent Monday, an unusual group of protesters marched on the streets of Kampala, Uganda’s capital, all dressed in black “to mourn the loss of Uganda’s public money through corruption,” as some of them pointedly explained to reporters. “Return our money and resign,” read one of the slogans they brandished. Since November 2012, on the first Monday of each month, the Black Monday Movement—a coalition of local NGOs and civil society groups—has taken to the streets to highlight the effects of corruption in Uganda and to press public officials to act."  READ MORE
 

Weekly Wire: The Global Forum

Roxanne Bauer's picture
These are some of the views and reports relevant to our readers that caught our attention this week. 

Compare your country - Aid statistics by donor, recipient and sector
OECD Data - Aid Statistics

Compare your country is a service provided by the OECD. It is based on the OECD's Development Co-operation Report 2013. EXPLORE THE MAP
 

More Than One in Five Worldwide Living in Extreme Poverty
Gallup

"Gallup's self-reported household income data across 131 countries indicate that more than one in five residents (22%) live on $1.25 per day or less -- the World Bank's definition of "extreme poverty." About one in three (34%) live on no more than $2 per day. The World Bank Group recently set a new goal of reducing the worldwide rate of extreme poverty to no more than 3% by 2030, but Gallup's data suggest meeting that goal will require substantial growth and job creation in many countries. In 86 countries, more than 3% of the population lives on $1.25 per day or less." READ MORE

Exit, Voice, and Service Delivery for the Poor

Robert Wrobel's picture

Inspired by Jeremy Adelman’s wonderful biography of Albert Hirschman (Worldly Philosopher: The Odyssey of Albert O. Hirschman, Princeton University Press, 2013), I’ve read and reread Hirschman’s masterpiece, Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations, and States, (Harvard University Press, 1970) and his follow up essay “Exit, Voice, and State” (reprinted in The Essential Hirschman, Princeton University Press, 2013). Although Hirschman produced these works over 40 years ago, his simple model of flight (“exit”) or resistance (“voice”) in the face of unsatisfactory economic, political or social conditions remains highly relevant for policymakers and development practitioners concerned with eliminating extreme poverty, reducing inequality, and improving basic services accessible to the poor.
 
Hirschman’s ideas provide much cause for reflection within the context of present-day Indonesia. Indonesia has enjoyed over a decade of macroeconomic stability and economic growth. From 2000 to 2011 GDP expanded by 5.3 percent per year, and the official poverty count halved from 24 percent in 1999 to 12 percent in 2012.  This period also saw notable improvements in health and education. Access to education has become more widespread and equitable. Girls are now as likely as boys to graduate from secondary school. In health, Indonesia is on track to meet Millennium Development Goals for reducing both the prevalence of underweight children under five years old, and the under-five mortality rate.
 

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