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July 2016

What India’s successful rural development programs can teach the world?

Ethel Sennhauser's picture

In India’s southern state of Tamil Nadu, I met young ex-farmers who had moved out of farm jobs and were now working in factories and government offices.  Their day to day circumstances weren’t all that different from millions of others around the world.

But yet, the people I met were remarkable.  There was the disabled young man who, with skills training, found an IT job and a life outside his home, and is now supporting his mother.  There were also women Self Help Group (SHG) members who, with support from their female Panchayat Leader, Pushpa, were helping to better the lives of their communities. They worked to improve water supply, build toilets and boost sanitation, and also found jobs in agro-processing.

My time in India made it clear to me that opportunity can change lives - especially in rural areas, where 78% of the country’s poor people live. 

Opportunity can come in various forms. It can come in the form of social empowerment - by giving voice to groups that are often marginalized, such as women, youth and disabled people.

It can also come in the form of jobs - through skills training, job placement programs and other services that help people secure formal employment. 

Jobs and social empowerment are two different opportunities. But they can be related: They both share transformative effects that are positive, and can multiply in unexpected directions.

For example, as women gain more confidence, their voices are listened to on a variety of matters within the home - such as on family planning and how to spend family incomes - improving the lives of their children and their families. Collectively, the power of their voices expressed through SHGs and other groups can bring about change on a larger scale, impacting the wider community as a whole.
 
Photo credit: Irina Klytchnikova



Jobs, too, are known to have transformative effects. They give people the economic resources to improve their quality of life, open up new opportunities and enable them to engage with the outside world.

Philippines pioneers approach to monitor and evaluate the national financial inclusion strategy

Helen Luskin Gradstein's picture



National financial inclusion targets, better data availability, and transformative business models to provide financial services are helping to accelerate financial inclusion across the globe and in Asia – where more than a billion of unbanked people live.

Countries set national financial inclusion goals to increase the pace and impact of reforms. For this to be effective, it’s critical to have in place a robust monitoring and evaluation (M&E) system to track progress, identify obstacles, and demonstrate success.  However, it’s often difficult to evaluate and track the extent and quality of the national financial inclusion strategy implementation, and to aggregate the results of multiple actions at the national level.

The Philippines has adopted a fresh approach to this challenge by designing a comprehensive M&E system that will report on headline and national-level indicators, as well as track progress of the regional and program-level performance indicators.

The Philippines is one of the 25 countries that are part of the World Bank Group’s Universal Financial Access 2020 initiative, whose goal is to provide access to a transaction account to the 2 billion unbanked people worldwide.

Between 2011 and 2014, the Philippines improved access to bank accounts by 4 percentage points. This resulted in some 2.7 million adults gaining access to formal financial services. Potential demand is significant, considering that an estimated 10 million Filipinos keep savings outside of the formal financial system.

Energy storage: A critical piece of the power puzzle

Peter Mockel's picture
 Aarthi Sivaraman


Just months after a historic climate conference in Paris, I can’t help but marvel at how far the world has progressed in the uptake of renewable energy. Take solar power, for example. What used to be a prohibitively expensive endeavor just years ago, is now a household-level solution in many countries. Then there are the record-setting solar auctions in countries like Zambia, the United Arab Emirates, India, Mexico, and Peru.

So what’s the next critical piece of the puzzle in our global efforts to provide sustainable energy for all?

In my view – and that of many others – it is to establish a viable, stationary solution to store energy. While stationary energy storage on a large scale has always been around – hydro energy storage, as an example, is efficient and cost effective – it is tied to topography and difficult to add at will. The cost of batteries has also been a big obstacle to widespread deployment and was a primary reason for the electricity grid to be designed as the biggest real-time delivery systems humans have ever made.

Why do people flee their homes? The answers may surprise you

Duncan Green's picture

June 21 was World Refugee Day and a new UN report put the total number of ‘forcibly displaced’ at 65.3 million. Most of those remained within national boundaries (internally displaced). Oxfam researcher John Magrath summarizes a recent study on the causes of internal displacement.

Why do people become displaced? That is, forcibly displaced in that they have, or believe they have, no other choice but to leave their homes? You would think we would know. After all, the Internal Displacement Monitoring Centre (IDMC) in its latest annual report points out that in 2015 a record number of 27.8 million people were newly displaced; and the reasons were conflict, violence and disasters. We are familiar with the overall picture: the Middle East and North Africa account for over half those displaced by conflict and violence; South and East Asian countries, especially India and China, saw the most people displaced by disasters. Once people are displaced, they tend to stay displaced so the numbers add up cumulatively; in 2015 there were nearly 49 million in total living as internally displaced people just because of conflict and violence.

But dig beneath and beyond those figures, as IDMC does, and an even more disturbing picture emerges of reasons and trends. IDMC puts the spotlight on three issues that demand more attention. One is drought, of the kind exacerbated by this year’s El Niño event. That may seem unsurprising; after all, it is obvious that drought dries up precious water sources and scorches crops and as this moving video from Oxfam in the Dominican Republic shows,  the result is that farmers get into debt and can end up selling their farms – their homes – and becoming wandering labourers.

Weekly links July 29: the political economy of running a RCT, the peer review trade-off, work with me, and more…

David McKenzie's picture
  • A couple of months ago I attended this very interesting conference by the Innovation Growth Lab run by Nesta. I was in a session with Mark Sayers from the UK’s Department for Business, Energy and Industrial Strategy, which has been running an RCT on growth vouchers for 20,000 firms in the UK. He gave a talk on lessons learned from a policy side in engaging in such a trial – and I found it very interesting to hear the political economy side (Treasury only agreed to release the funding for a program they were somewhat skeptical of if it would be evaluated by an RCT). A video of his short talk is now up.
  • Slate piece on how journalists should cover working papers (based on the recent Fryer paper on racial bias in the use of lethal force). h/t Berk, who is reminded of his classic post on working papers not working.

Weekly wire: The global forum

Roxanne Bauer's picture

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

World Bank Group
Too often, government leaders fail to adopt and implement policies that they know are necessary for sustained economic development. Political constraints can prevent leaders from following sound technical advice, even when leaders have the best of intentions. Making Politics Work for Development: Harnessing Transparency and Citizen Engagement focuses on two forces—citizen engagement and transparency—that hold the key to solving government failures by shaping how political markets function.
 
Devex
The most challenging notion to take on board in the governance of today’s world is that not all that counts can be counted. We increasingly rely on numbers as shortcuts to information about the world that we do not have time to digest. The name of the game is governance “as if” the world counts. It might be a smart shortcut sometimes, but we are in deep trouble if we forget that we are doing it “as if” the world counts. Leadership should take making good decisions seriously. If the method by which we get knowledge and the method by which we make decisions is limited to what can be numbered, we are setting up a system of governance that’s systematically getting stuff that actually counts wrong.
 

Empowering Myanmar’s rural poor through community-driven development

Ede Ijjasz-Vasquez's picture
Poverty and isolation create a host of development challenges for Myanmar's rural communities, from poor road connections to lack of clean water and unreliable electricity.
 
Since 2013, the Myanmar National Community-Driven Development Project (NCDDP) has helped improve access to basic infrastructure and services with support from the International Development Association (IDA), the World Bank's fund for the poorest. The community-driven development (CDD) approach responds well to local development challenges, in that it lets community groups decide how to use resources based on their specific needs and priorities.
 
Implemented by Myanmar's Department of Rural Development, NCDDP now operates in 5,000 villages across 27 rural townships梙ome to over 3 million people梐nd plans to reach about 7 million people in rural communities in the coming year.
 
In this video, Ede Ijjasz and Nikolas Myint reflect on what has been achieved so far, describe some of the challenges they met along the way, and talk about plans to take the NCDDP to the next level.
 
Related:

Your air conditioner is making you cooler, and the world warmer. We can change that.

Karin Shepardson's picture
Also available in: Español - French - Arabic 
Copyright: Sławomir Kowalewski


Cooling and refrigeration are essential to increasing labor productivity, improving educational outcomes, safeguarding food and minimizing its waste, improving healthcare, and supporting countries’ digital ambitions (that computer of yours heats up pretty fast). And all of this, from improved productivity to education to health, is vital to eliminating extreme poverty and boosting shared prosperity across the globe.

Championing interoperability for financial inclusion: carrot or stick?

Thomas Lammer's picture
Mobile payments at Hawala Market in Daykundi, Afghanistan. Photo: Institute for Money, Technology and Financial Inclusion

Interoperability – a term used in a variety of industries, including telecommunications and financial services – is generally understood to refer to the ability of different systems and sometimes even different products to seamlessly interact. For payment systems, “interoperability” depends not only on the technical ability of two platforms to interact but also the contractual relationships between the entities wanting to interact. Traditionally, interoperability has been established by the same type of institutions, by banks’ participation in a central retail payment infrastructure (e.g. a central switch or an automated clearing house) and adhering to a payment scheme (e.g. a card scheme or a credit transfer scheme).

These days interoperability in retail payments is no longer limited by national borders and the overall ecosystem has become more complex. Non-bank payment service providers have emerged (many of them mobile network operators-MNOs) and there are new types of payment instruments (e.g. mobile money). Innovative payment instruments often start as proprietary solutions, processed in-house rather than via a central platform. In that regard, interoperability can help tear down barriers by enabling transactions between customer accounts of different mobile money solutions. In some countries, interoperability even facilitates transactions across different type of accounts (e.g. deposit transaction accounts held with banks and mobile money accounts held with non-bank service providers).

Why are women working less under capitalism than communism?

Joanna Tyrowicz's picture
A woman works in a call center. Photo: © Flore de Préneuf / World Bank

The last three decades have seen a transition from central planning to market systems across Central and Eastern Europe (CEE). But over the same period there has been a consistent decrease in women’s employment. Prior to the transition, CEE countries were characterized by a relatively high employment ratio among women. Gender employment gaps were generally lower in CEE under central planning and then increased over the course of transition. 


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