Tackling Poverty in India: the Low Income, Low Growth Trap

THE

WorldBank IN INDIA

Public Disclosure Authorized VOL 15 / NO 5 MARCH 2017 Public Disclosure Authorized Public Disclosure Authorized I N S I D E

World Bank CEO visits India 1-5 In Mumbai World Bank Pathways to Prosperity – World Bank series 6-10 Development Dialogue: CEO travels by local Connecting India’s states with good logistics 11-13 Recent Project approvals & train and visits Dharavi signings 14-15 ICR Update: Karnataka

Public Disclosure Authorized s India takes on a more complex set of challenges to meet its rising Panchayats Strengthening Project 16-17 Aaspirations, the World Bank’s newly appointed Chief Executive Officer, Kristalina Georgieva came on a visit to India and saw first-hand New Additions to the Public Information Center 18-27 how a rapidly urbanizing India is striving to make its cities a better place for all citizens. Contact Information 28 About the photograph: Arriving in Mumbai, India’s largest metropolis, Georgieva saw how an WB CEO Kristalina Georgieva walked through the narrow India that is urbanizing at a pace and scale, which has few parallels in lanes of Dharavi in Mumbai history, is striving to make its cities a better place for all its citizens. and interacted with people Photo credit: Jeetender Sharma Travelling in the second class ladies Aboard the ‘local’ – as the suburban trains compartment of a suburban train from are commonly called in Mumbai – Georgieva Churchgate to Dadar station, Georgieva got met women commuters who appreciated a sense of the volume of passengers who these improvements but wanted more to be use the trains every day, and the challenges done to make the trains safer. the Railways face in making the system safer, “To meet the aspirations of Mumbaikars, faster and more efficient. some of whom I met during my visit, the city Mumbai is one of the world’s most densely will have to make massive investments in populated mega cities and its suburban trains transport infrastructure. These investments carry some 8 million passengers a day, almost will enable commuters to access more equal to the population of Switzerland. From comfortable, safer and efficient services,” 2002 onwards, a series of two World Bank Georgieva said. “The Bank is committed to supported projects – Mumbai Urban Transport support the government’s efforts in this area Project and Mumbai Urban Transport Project – through investments that strengthen the 2A – have helped introduce new trains with government’s capacity to leverage additional higher speeds, better suspension systems, funds, including those from the private improved interiors, and a better ventilation sector.” system. The new trains have reduced energy consumption by 30 percent.

122 The World Bank in India • March 2017 A walk through Dharavi challenges of urban service delivery in a city where one-third of the residents live in slums. Alighting at Dadar station, Georgieva walked through the narrow alleys of Dharavi, said to She visited a government-run school where be one of Asia’s largest slums and the world’s more than 5,000 children – almost half of third largest informal settlement. whom are girls - are taught in five Indian languages to meet the needs of diverse Dharavi teems with almost a million people communities. The school, still called the who have flocked to the city from all corners Dharavi Transit Camp School after its origin of the country, and now live and work in a as a school for migrant children, is part of the tightly packed melting pot spread across Sarva Siksha Abhiyan – India’s Education for just two square kilometers in the heart of the All program - supported by the World Bank. city. The migrants’ drive and hard work has created a beehive of micro enterprises that “Here, in the middle of this congested area, pull in an estimated annual turnover of over it is most impressive to see that everybody US$1 billion. wants the school to be the best place. Why? Because the parents take pride in what their In Dharavi’s dense warren of homes and kids are going to achieve in life, and the workshops, where slippers are lined up children are motivated to study,” Georgieva neatly outside doorways, Georgieva saw the said.

The World Bank in India • March 2017 123 “ I am very humbled that we from the World Bank can be partners with Mumbai as the city gets more prosperous. The future for you is bright and our commitment to be part of it has got stronger today”. Kristalina Georgieva World Bank CEO

124 The World Bank in India • March 2017 Reaching the most disabilities, including those with cerebral palsy, autism, Down’s syndrome, visual, vulnerable hearing and speech impairment etc. says he used to see a lot of aggression among the The school has a separate classroom children “but they are better now”. where children with special needs are given Khillari, who hails from Maharastra’s Latur individual attention and mainstreamed into district, trained in special education after regular classes. being moved by the plight of children with Among the school’s 76 children with special similar needs in his home village. needs is eight-year-old Jigar who used to Meeting with the children, parents and walk on all fours because of a locomotor teachers, Georgieva said, “I am very happy to disorder. Jigar, whose family specially moved see how even in a difficult informal settlement, to Mumbai from their village home near Bhuj, the government has moved towards inclusion Gujarat to seek help for their young son, can by delivering services to the most vulnerable.” now walk on his feet and eat by himself. “The teachers at the school have made all the “I am very humbled that we from the World difference,” says his visibly relieved mother, Bank can be partners with Mumbai as the Mayya. city gets more prosperous. The future for you is bright and our commitment to be part of it Umesh Khillari, the special education teacher, has got stronger today,” Geogieva add. who teaches the children with various

The World Bank in India • March 2017 125 Pathways to Prosperity Tackling poverty in India: The low income, low growth trap

While India’s economy has grown more rapidly in recent decades, the gains have been unevenly spread, and some regions have fallen further behind the rest of the country. In particular, India’s seven ‘low-income’ states have struggled to shake off the legacy of high consumption poverty, low per capita incomes, poor human development outcomes and the persistence of poverty among tribal populations. Addressing this geographical dimension of poverty and well-being will hold the key to improving the lives of millions of Indians, say Urmila Chatterjee, Economist, World Bank and Swati Puri, Consultant, World Bank.

ver the past decade, India witnessed of Bihar, Chhattisgarh, Jharkhand, Madhya Owidespread economic growth as well Pradesh, Odisha, Rajasthan and Uttar as faster and more widespread poverty Pradesh, continue to lag behind the rest of reduction[1]. However, some states did not the country[2]. With the exception of Bihar benefit as much as others. The seven ‘low- and Rajasthan, all LIS have grown at a slower income states’ (LIS) in particular, comprising pace than other states after 2005. Poverty

6 The World Bank in India • March 2017 reduction has also not been as responsive reduction diverged across India’s states to economic growth as in the other states. after 2005 (figure 2). In other words, economic growth in the LIS As a result, today, the LIS as a group – with has been less inclusive than in India as a Rajasthan as the exception – have a poverty whole. rate that is twice that of other states. They Admittedly, these states did experience are also home to a disproportionate share of greater absolute reductions in poverty after India’s poor; in 2012 the LIS accounted for 2005. However, measuring catch-up using 45 percent of India’s population but nearly absolute changes can be misleading, given 62 percent of its poor. In fact, 44 percent of that initial levels of poverty and per capita India’s poor – or over a 100 million people – incomes differed vastly across states. In live in three states alone: Uttar Pradesh, Bihar relative terms, both growth and poverty and Madhya Pradesh (figure 3).

Figure 1: Population below poverty line in India

CG CG 40 JH JH 37 MN MN 37 AR AR 35 BH BH 34 OD OD 33 AS AS 32 MP MP 32 UP UP 29 AllAI India 22 MZ MZ 22 KA KA 21 WB WB 20 NL NL 19 MH MH 17 GJ GJ 17 TR TR 15 RJ RJ 15 MG MG 12 TN TN 12 UK UK 11 HR HR 11 JK JK 11 DL DL 10 AP AP 9 SK SK 9 PJ PJ 8 KL KL 8 HP HP 8 GA GA 5 (Data for 29 states and All India)

In %, 2012 0510 15 20 25 30 35 40 Low Income States (LIS) Other states considered for analysis

BH Bihar AP Andhra Pradesh MH Maharashtra

CG Chhattisgarh AS Assam PJ Punjab

JH Jharkhand HR Haryana TN Tamil Nadu

MP Madhya Pradesh GJ Gujarat UK Uttarakhand

OD Odisha HP Himachal Pradesh WB West Bengal

RJ Rajasthan KA Karnataka

UP Uttar Pradesh KL Kerala

Source: World Bank staff calculations based on the National Sample Surveys and Central Statistical Office data.

The World Bank in India • March 2017 7 Figure 2: Figure 1a Divergence in growth and poverty reduction Figure 1a in India after 2005

12 UK

11 Improving Leading 10

9 TN

8 AP GJ MH KL HR 7 HP BH RJ WB OD KA 6 MP CG PJ

5 UP WB

Lagging JH Weakening Annual Growth Rate, 2005 - 2012 (%) Annual Growth 4 AS

3 All India

2 0 5 10 15 20 25 30 35 45 45 Figure 1b Real GSDP per capita, (2005, Rupees in thousands)

-1

-3 Figure 1b High poverty, JH CG declining slowly -5

-7 MP

KA WB BH

-9 OD

-11 HR

RJ MH

-13 KL Low poverty, PJ TN declining fast

Annual Decline in Poverty Rate, 2005 - 2012 (%) -15 HP UK

AP All India -17 0 10 20 30 40 50 60 70 80 Poverty Rate, 2005

Low Income States (LIS) Other states considered for analysis

BH Bihar AP Andhra Pradesh MH Maharashtra

CG Chhattisgarh AS Assam PJ Punjab

JH Jharkhand HR Haryana TN Tamil Nadu

MP Madhya Pradesh GJ Gujarat UK Uttarakhand

OD Odisha HP Himachal Pradesh WB West Bengal

RJ Rajasthan KA Karnataka

UP Uttar Pradesh KL Kerala

Source: World Bank staff calculations based on the National Sample Surveys and Central Statistical Office data.

8 The World Bank in India • March 2017 Beyond monetary measures of well-being, electricity, while Uttar Pradesh performs the LIS perform poorly in providing their somewhat better with half their households people with access to basic services and doing so. infrastructure. They have the highest rates of While the LIS are by no means alone in open defecation in the country. Close to 60 facing persistent barriers to human capital percent or more of households in these states development, the challenges that confront practice open defecation compared to the them are particularly acute. Residents of national average of 44 percent. these states spend fewer years in school, as Access to drinking water and electricity within evidenced by their low rates of secondary the homes of their people continues to be school completion. Moreover, working adults a distant dream for many. More specifically, are far less likely to have salaried jobs - in Chhattisgarh, Odisha, Jharkhand and the jobs that bring more secure terms of Madhya Pradesh only about a third of employment. In addition, the rates of infant households have access to drinking water and maternal mortality in these states are within their homes. As for electricity, only amongst the highest in the country. And, a third of households in Bihar report using while child malnutrition is high and often

Figure 3: A disproportionate share of India’s poor live in the Low-Income states

Share of poor > share of population

20 UP

BH 15

MP 10

MH OD JH WB 5 KA CG GJ RJ Share of poor < share of AS AP TN population HR KL UK PJ 0 HP 0 5 10 15 20 25 Bubble size: Number of poor (in millions)

Low Income States (LIS) Other states considered for analysis

BH Bihar AP Andhra Pradesh MH Maharashtra

CG Chhattisgarh AS Assam PJ Punjab

JH Jharkhand HR Haryana TN Tamil Nadu

MP Madhya Pradesh GJ Gujarat UK Uttarakhand

OD Odisha HP Himachal Pradesh WB West Bengal

RJ Rajasthan KA Karnataka

UP Uttar Pradesh KL Kerala

Source: World Bank staff calculations based on the National Sample Surveys and Central Statistical Office data.

The World Bank in India • March 2017 9 endemic even in the more prosperous parts have been successful on a few important of the country, the malnutrition levels in some fronts suggests that this can indeed be done. LIS are far worse than the national average. Notably, Rajasthan has managed to separate Alarmingly, in Jharkhand, Bihar and Uttar itself from the low-income group. The state’s Pradesh close to half of all children under the growth has not only been higher than the age of 5 are ‘stunted’. LIS as a whole, its pace of poverty decline has been at par with more prosperous states Within the LIS too, poverty and deprivation such as Haryana and Maharashtra. Job follow distinct geographic and ethnic patterns. creation in some LIS has also been faster Typically, members of the scheduled castes than in a few better-off states. For instance, and scheduled tribes living in the LIS are after 2005, Chhattisgarh, Rajasthan, Uttar less well-off than those in other states, both Pradesh and Odisha created jobs at a faster in monetary terms as well as in access to pace than richer states like Gujarat, Andhra basic services, education and salaried jobs. Pradesh and Tamil Nadu. Replicating such In fact, clearly distinguishable geographic (Change background colour as needed) successes and spreading prosperity more clusters that have the highest rates of poverty widely will be key to improving the well-being within the LIS are often places with a high of the people of these states, as well as of concentration of scheduled tribes. This the development of the country at large. suggests that social exclusion is closely intertwined with geography in India. 1 This article focuses on the period 2005 to 2012, the most recent period for which poverty and living Accelerating progress in the LIS will be standards data is available for India.

critical to sustain India’s story of positive 2 The seven ‘low-income states’ selected as in the growth and poverty reduction. For this, World Bank India — Country Partnership Strategy, targeted efforts will be needed to release 2013-17. these states from the twin traps of ‘low This blog was originally published in the income-low growth’ and ‘high poverty-slow Indian Express on 7th June, 2016 poverty decline’. The fact that some LIS

10 The World Bank in India • March 2017 Development Dialogue Connecting India’s states with good logistics

To reap the full benefits of GST on inter-state trade, both hard and soft logistics infrastructure need to improve, says Sebastian Saez, Lead Economist and Arnab Bandyopadhyay, Lead Transport Specialist at the World Bank in New Delhi

he world over, poor logistics often means these activities are essentially carried out by Tpoor trade. In other words, how efficiently private firms, their efficiency depends upon countries trade defines how they grow and public infrastructure. This includes both compete in the global economy. For India, “hard” or physical infrastructure as well as good logistics will also play a critical role in “soft” or institutional infrastructure such as the success of the “Make in India” initiative, systems, procedures and regulations. Trucks, enable small-scale producers to access for instance, use publicly funded roads newer markets, and allow farmers to benefit and highways, while international trade is from the timely uptake of perishable produce. subject to the procedures followed by border agencies. India has already taken a major step forward in this direction. When it is rolled out, the Logistic activities are also regulated from the goods and services tax (GST) will help fiscal, environmental, safety, land use and integrate this vast and diverse country, competition perspectives. In large economies transform it into one common market, such as India, responsibilities for both hard eliminate inefficient taxation, and go a long and soft infrastructure are shared by a way in boosting the manufacturing sector. number of central and state agencies.

But much more can be done. Logistics is a Some estimates suggest that logistics costs series of services and activities that constitute in India amounted to a sizeable 14% of gross supply chains—such as transportation, domestic product (GDP) in 2014. It is also warehousing, brokerages and so on. Although suggested that inefficient logistics chip off a

The World Bank in India • March 2017 11 whopping $45 billion from India’s economic The good news is only partial, however. output, or about 2% of the country’s GDP. For it is not only important to connect India internationally, but also to improve Higher global ranking connections between India’s states.

So, have India’s recent efforts to improve its A number of studies have focused on this global logistics ranking borne fruit? On this, well-known challenge. One recent study there is good news. measured the impact of internal borders on the country’s economy. It found that delays The World Bank’s 2016 Logistics Performance at inter-state borders were comparable with Index (LPI), which ranks 160 countries every those at international checkpoints in other two years, found that India moved up to parts of the world. Poor inter-state supply 35th place internationally, compared to 54 chains not only erode the competitiveness of in 2014. In other words, within two years, the country as a whole, but also prevent the India had improved its logistics performance benefits of better international connectivity significantly. Globally, Germany stood first for from spreading across the country. the third time running, while China stood at 27, South Africa at 20, and Russia at 99. Hard infrastructure being The World Bank’s LPI found that when improved compared to other countries, including other nations of the Brazil-Russia-India-South Africa As evidenced in the World Bank’s latest grouping, the Indian operators surveyed were index, India has made rapid strides in especially positive regarding improvements in improving its logistics infrastructure. As for areas such as the supporting infrastructure for hard infrastructure, seven new multimodal trade (e.g. ports) and the processing of goods freight corridors are on the anvil, and work by customs. These findings should give a on some is well under way. These include shot in the arm to the government’s efforts to the Western and Eastern Dedicated Freight boost the business environment. Corridors where high-speed trains will run

12 The World Bank in India • March 2017 along electrified freight-only tracks from on freight routes: For example, exporters the hinterland to ports on the western and from manufacturing hubs like Tirupur and eastern coasts. Coimbatore in Tamil Nadu report diverting their shipments by several hundred kilometres just In the Ganga basin, the eastern rail freight to avoid the Tamil Nadu-Kerala border. corridor will link up with the highways, in addition to the proposed Ganga waterway, A start could therefore be made by removing enabling goods to switch seamlessly from unnecessary delays at inter-state checkposts. rail to road to barge to ship in an unbroken Many national, state and international continuum. Along the way, 15 logistic parks organizations dealing with a range of issues, will serve as transport and service hubs. including shipping, commerce, finance, and transportation, have recommended a series Soft infrastructure too needs of measures to improve the situation. attention The World Bank’s LPI report too provides a number of examples from countries that have On the equally imperative softer aspects of implemented logistics reforms successfully. logistics, the GST is most certainly a major Some of these examples may be relevant step forward. However, to reap the full for India. For instance, it will be important to benefits of GST on inter-state trade, more monitor the performance of domestic supply will be needed. Today, a truck on an Indian chains to inform policymaking, and conduct highway reportedly covers an average of 250- a public-private dialogue on the issue. 300km per day, compared to 450km in Brazil, (Change background colour as needed) Such efforts will help determine the best and 800km in the US. way forward and contribute to the country’s Studies have found that for up to 60% of emergence as a rising global manufacturing journey time, the truck is not moving at all—a power. large part of that time is spent at checkpoints This article was originally published in the getting tax and customs clearances. These Mint newspaper on 22 January, 2017 difficulties can have a substantial impact

The World Bank in India • March 2017 13 Recent Project Approvals

Uttarakhand Health Systems Development Project

he World Bank Board has approved a TUS$100 million credit for the Uttarakhand Health Systems Development Project to improve access to and quality of health care services in Uttarakhand, a mountain state richly endowed with natural resources.

A key focus of the Project is to stimulate and finance innovative engagement with private health care providers, expand their role in meeting the unmet health access needs of the state’s population and strengthen health facilities and their accountability to service delivery through better managerial capacity of state health directorates, improved information systems, and a focus on monitoring and research. The Project also aims to reduce financial risk and make affordable, quality health care available to all citizens of the state.

While the Project will benefit all 13 districts (Change background colour as needed) of the state, a special focus will be on improving access to quality health services for geographically dispersed and remote populations in the state.

Recent Project Signings

Technical Education Quality Improvement Project

he Government of India and the World Jawaharlal Nehru Technological University TBank have signed a US$ 201.50 million Hyderabad, and BIT Mesra. It has made credit agreement to enhance the quality a considerable impact on the quality of and equity of engineering education across education by implementing institutional several focus states in India. and policy reforms focusing on institutional autonomy and accountability. Technical Education Quality Improvement Project (TEQIP III) is the third phase of an TEQIP III will support approximately 200 envisioned 15-20 year phased program engineering education institutes across initiated with the first phase of TEQIP India to produce higher quality and more from 2002 to 2009. TEQIP III builds on the employable engineers. The focus of the significant results achieved in the two phases project is to strengthen engineering education of the project which together supported in India’s low-income, hill states and states of over 250 engineering institutes such as NIT the North East. Surathkal, College of Engineering Pune,

14 The World Bank in India • March 2017 The agreement for the project was signed by Raj Kumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India; L. Watikala, Principal Director, Department of (Change background colour as needed) Health and Family Welfare, Government of Nagaland; and Genevieve Connors, Program Leader, World Bank India, on behalf of the World Bank.

Nagaland Health Project

he Government of India, the Government health systems. This will include capacity- Tof Nagaland and the World Bank have building and results-based financing signed a US$ 48 million credit agreement to for village health committees, who are improve the quality of health care services in responsible for local health services, as well the north eastern state of Nagaland. as enhance the knowledge and awareness of their communities. The agreement for the Project was signed by Raj Kumar, Joint Secretary, Department The Project will invest in improving health of Economic Affairs, Ministry of Finance, on services in 177 facilities, including through behalf of the Government of India; and Junaid water and sanitation and off-grid electricity Ahmad, Country Director, World Bank India, backup. The Project will strengthen statewide (Change background colour as needed) on behalf of the World Bank. health system components, including information, procurement and supply The Project will empower village health chain management, and human resource committees to deliver better health service management systems. across the state and strengthen existing

The World Bank in India • March 2017 15 ICR Update

his is a short summary of the Implementation Completion Report (ICR) of a recently- Tclosed World Bank project. The full text of the ICR is available on the Bank’s website. To access this document, go to www.worldbank.org/reference/ and then opt for the Documents & Reports section. Karnataka Panchayats Strengthening Project

Context Karnataka Panchayats Strengthening Karnataka has a long history of active rural Project local governments. In October 2004, the Approval Date: 29 June, 2006 state government mandated its line agencies to transfer to the panchayats activities which Closing Date: 30 March, 2014 had been devolved to them. This required international organizations, including the Total Project Cost US$ 133 million World Bank, to implement its projects Bank Financing: US$ 120 million through the panchayat system. Implementing Rural Development Project Development Objectives Agency: and Panchayati Raj, The objective of the Project was to improve Government of Karnataka the effectiveness of service delivery by Karnataka gram panchayats particularly Outcome: Moderately Satisfactory with respect to the management of public resources and the delivery of relevant Risk to Development Substantial Outcome: services prioritized by the rural people. Overall Bank Moderately Satisfactory Achievements Performance: The Project successfully facilitated improved Overall Borrower Moderately Satisfactory access to basic services through its Performance: activities. It enabled the construction of more

1216 The World Bank in India • March 2017 than 25,000 roads, 8,029 drainage lines, The Project also contributed to the roll-out 1,652 community toilets, 2,947 drinking of a software – ‘Panchatantra’ – to help GPs water facilities, 1,537 anganwadi buildings improve their financial management. The and a number of other assets which were Project was instrumental in strengthening essential to address the infrastructural gaps Panchatantra implementation by, among in the communities. other things, providing one desktop computer and MS office software to each of the 5,629 By the end of the Project, there was a 72 GPs in Karnataka. percent increase (against a target of 60 percent) in the number of gram and ward Lessons Learnt sabhas held. In fact, under this Project, ● It is critical to fully understand the political almost all gram panchayats (GPs) in the economy of decentralization and to find state conducted their first ever ward sabha. measures to mitigate such risks. To ensure Women’s participation in Gram Sabha success, a strong policy framework and meetings increased by 33 percent and an enabling environment for decentralization almost 21 percent increase in membership is necessary. of schedule caste and tribe households was ● It is important to have a robust baseline seen in such meetings between 2006-07 and and impact evaluation framework at the 2011-12. beginning of the project. The absence of The GPs were gradually able to increase their baseline in certain areas during the initial own sources of revenue which contributed stages of the Project posed challenges for to stronger financial health of village measuring progress. Moreover, a flexible governments. It is worth noting that ‘own and responsive management information source revenue collection’ in Project GPs system, to regularly track results on the grew at an annual average rate of 22.69 ground and facilitate course corrections, percent from 2006-07 to 2012-13, compared was lacking in this Project and could be to the state average of 12.72 percent. adopted in future projects.

The Project also achieved 100 percent ● It is important to have a performance disbursement of block grants to poorer assessment system that is also realistically panchayats by the end of the Project and tailored to the existing capacities of GPs almost 95 percent of the panchayat budgets in the ‘backward’ areas. During the initial were executed according to stipulated plans stages of the Project most of the GPs and procedures. lacked the necessary capacities to adhere to the standards, in addition to limited In the spirit of transparency, GP revenues, skills to compile relevant information. expenditures, and procurement decisions Therefore, future projects should have a were publicly disclosed by almost 94 percent simple system driven by certain Minimum of the GPs. The government’s completion Mandatory Conditions and intermediate report indicated that 179,887 people were indicators which are dynamic in line with trained (representing 79 percent of the target), the improving capacities of the GPs. which can be seen as substantive progress. ● It is important to ensure that the GP plans and their implementation sufficiently reflect changing community preferences and the interests of the more excluded groups. This could be achieved through ensuring that the planning process is periodically updated to reflect changing preferences; and, providing targeted capacity support to typically marginalized groups. In a number of cases, it was found that if (Change background colour as needed) such a planning process is not robust and inclusive, the incentives for people to participate in the Gram Sabha are likely to decline over time.

The World Bank in India • March 2017 1712 New Additions to the Public Information Center

his is a select listing of recent World Bank publications, working papers, operational Tdocuments and other information resources that are now available at the New Delhi Office Public Information Center. Policy Research Working Papers, Project Appraisal Documents, Project Information Documents and other reports can be downloaded in pdf format from ‘Documents and Reports’ at www.worldbank.org

India: Policy Research Working Papers Publications may be consulted and copies of unpriced items obtained from: WPS 7966 The World Bank PIC Toward labor market policy 2.0: The potential for The Hindustan Times House (Press Block) using online job-portal big data to inform labor 18-20, Kasturba Gandhi Marg market policies in India New Delhi – 110 001, India By Shinsaku Nomura, Saori Imaizumi, Ana Carolina Tel: +91-11-4294 7000, Ext. 753 Areias and Futoshi Yamauchi Website: www.worldbank.org This paper examines how online job-portal data can be Facebook: www.facebook.com/WorldBankIndia Email: [email protected] used as a basis for policy-relevant research in the fields of labor economics and workforce skills development, through an empirical analysis of information generated PRINCIPAL DISTRIBUTOR by Babajob, an online Indian job portal. The analysis Viva Books Pvt Ltd highlights areas where online job-portal data can 4737/23 Ansari Road, Daryaganj contribute to the development of labor market policies New Delhi – 110 002 and analytical knowledge. Tel: +91-11-4224 2200 The analysis also provides a unique case study on labor Fax: +91-11-4224 2240 market data analytics in a developing-country context Email: [email protected] in South Asia.

Other Preferred Stockist in India The report also examines the potential for using big Anand Associates data to improve the design and implementation of labor market policies and promote demand-driven skills 1219 Stock Exchange Tower 12th Floor, Dalal Street development. Mumbai – 400 023 Tel: +91-22-2272 3065/66 Email: [email protected] WPS7929 Website: www.myown.org Caste system Fax: +91-11-2610 0573 (New Delhi) By Karla Hoff Fax: +91-80-4128 7582 (Bangalore) In standard economics, individuals are rational actors Allied Publishers Pvt Ltd and economic forces undermine institutions that Tel: +91-22-2261 7926/27 impose large inefficiencies. The persistence of the caste Email: [email protected] system is evidence of the need for psychologically Website: www.alliedpublishers.com more realistic models of decision-making in economics. The caste system divides South Asian society into Bookwell hereditary groups whose lowest ranks are represented 24/4800 Ansari Road, as innately polluted. After the historical encounter Daryaganj between colonial powers and South Asia, caste became New Delhi – 110 002 capable of expressing and systematizing what had Tel: +91-11-2326 8786; 2325 7264 been diverse forms of social identity, community, and Email: [email protected] organization.

This paper reviews work that estimates the economic costs of the caste system in particular environments.

18 The World Bank in India • March 2017 WPS7923 breakdown between regions is also included, showing Understanding India’s urban frontier: What is behind that the effort needed to achieve this reform will not be the emergence of census towns in India? felt equally throughout the world. While the cost of such By Partha Mukhopadhyay, Marie-Helene Zerah, Gopa reform will likely be high, the expected benefits include Samanta and Augustin Maria an increase in biomass by a factor of 2.7, increase in annual harvests by 13 percent, and a 30-fold increase in This paper presents the results of an investigation annual net benefits accrued to the fisheries sector (from of selected census towns in northern India. Census $3 billion to $86 billion annually). This urgent call for towns are settlements that India’s census classifies as action is reinforced by the impacts of climate change on urban although they continue to be governed as rural fish stocks and fisheries worldwide. settlements.

The 2011 census featured a remarkable increase in the number of census towns, which nearly tripled between World Development Report 2017: Governance and 2001 and 2011, from 1,362 to 3,894. This increase the Law contributed to nearly a third (29.5 percent) of the total By World Bank increase in the urban population during this period. Only Available On-line part of this evolution can be attributed to the gradual Published: January 2017 urbanization of settlements in the vicinity or larger Pages: 304 towns. Instead, the majority of census towns appear as ISBN: 978-1-4648-0950-7 small “market towns,” providing trade and other local e-ISBN: 978-1-4648-0951-4 services to a growing rural market. The case studies of SKU: 210950 representative census towns in Bihar, Jharkhand, Orissa, and West Bengal show the role of increased connectivity Policy making and policy and growing rural incomes in driving the demand for implementation do not the small-scale and non-tradable services, which are occur in a vacuum. Rather, the main sources of nonfarm employment in these they take place in complex political and social settings, settlements. in which individuals and groups with unequal power interact within changing rules as they pursue conflicting The case studies also reveal that the trade-offs between interests. urban and rural administrative statuses are actively debated in many of these settlements. Although The process of these interactions is what this Report statistical comparisons do not show a significant impact calls governance, and the space in which these of urban or rural administrative status on access to basic interactions take place, the policy arena. The capacity of services, urban status is often favored by the social actors to commit and their willingness to cooperate and groups involved in the growing commercial and services coordinate to achieve socially desirable goals are what sectors, and resisted by the residents still involved in the matter for effectiveness. However, who bargains, who traditional farming sectors. is excluded, and what barriers block entry to the policy arena determine the selection and implementation of Other Publications policies and, consequently, their impact on development outcomes.

This Report reveals that governance can mitigate, even The Sunken Billions Revisited Progress and overcome, power asymmetries to bring about more Challenges in Global Marine Fisheries effective policy interventions that achieve sustainable By World Bank improvements in security, growth, and equity. Available On-line Published: February 2017 Pages: 114 Getting the Full Picture on Public Officials: A How-to ISBN: 978-1-4648-0919-4 Guide for Effective Financial Disclosure e-ISBN: 978-1-4648-0947-7 By Ivana Maria Rossi, Directions in Development Laura Pop and Tammar This report updates previous Berger studies that measured Available On-line in economic terms the Published: January 2017 extent of biological losses Pages: 146 attributable to overfishing globally. The new estimates ISBN: 978-1-4648-0953-8 assess these ‘sunken billions’ at $83 billion annually. The e-ISBN: 978-1-4648-0957-6 report further shows that a clear path can lead to the StAR Initiative recovery of these considerable losses, including through Financial disclosure systems significant reduction in global fishing overcapacity. A

The World Bank in India • March 2017 19 are a vital component of transparency. By now 161 working, and ultimately to achieving better results. The countries around the world have introduced financial note draws on the numerous frameworks that have been disclosure systems, becoming commonplace around the developed and the many lessons learned about how to world. But, although the rules are on the books, many design and implement politically sensitive programming. practitioners are still struggling with the intricacies of the Importantly, while political economy assessments rules and how to implement them in the socioeconomic, provide insights into the non-technical drivers of historical, and legal context of their own country. Little decision-making, they rely on a sound understanding of guidance is available to assist them. This book provides the technical bottlenecks that need to be resolved, as practitioners with practical scenarios to consider before well as the economic and social costs and benefits of a deciding on a particular course of action. given intervention.

The Little Data Book on Information and Road Freight Transport Services Reform: Guiding Communication Technology 2017 Principles for Practitioners and Policy Makers

By World Bank By World Bank and IRU Available On-line Available On-line Published: January 2017 Published: December 2016 Pages: 246 Cost-effective and high ISBN: 978-1-4648-1028-2 quality transport systems e-ISBN: 978-1-4648-1029-9 are key to modern logistics. Since the late 1990s access to Their role can only be information and communication expected to grow even technologies (ICTs) has seen as the global economy tremendous growth-driven primarily goes through profound by the wireless technologies and liberalization of transformation in terms of how, where and when goods telecommunications markets. Mobile communications are produced or distributed. Consumer expectations have evolved from simple voice and text services and production requirements increasingly require that to diversified innovative applications and mobile transport operators provide high-quality services that broadband Internet. In 2016, there were more than are also safe and affordable for their clients. However, 7.3 billion mobile–cellular subscriptions worldwide. in many countries logistics performance remains too Globally, 3.5 billion people were using the Internet, low to effectively contribute to economic and social of which 2.5 billion were from developing countries. development. This is the challenge that this Guide Mobile-broadband subscriptions have risen constantly seeks to meet, to offer paths to reforming the sector to reach 3.6 billion, while the number of fixed-broadband and making it suited to the needs of a highly connected subscriptions reached more than 884 million during the world. same period.

This book illustrates the progress of this revolution Mental Health Among Displaced People and for 217 economies around the world. It provides Refugees: Making the Case for Action at the World comparable statistics on the sector for 2005 and 2015 Bank Group across a range of indicators, enabling readers to readily compare economies. By Patricio V. Marquez Available On-line Published: December 2016 Political Economy Analysis for Transboundary Water As documented in a recent Resources Management in Africa: Practical Guidance World Bank report, about 65 By World Bank Group million people – one percent Available On-line of the world’s population – Published: January 2017 live in forced displacement Directions in Development and extreme poverty. In contrast to economic This book introduces key migrants, who move in search of better opportunities, concepts and variables and to persons affected by natural disasters, the forcibly for the transboundary displaced are fleeing conflict and violence. water context. It provides practical advice to help The refugee influx can quickly overwhelm existing water resource management capacities, including health, housing, educational, specialists carry out strong, operationally relevant and social welfare systems and services. Inflows of analysis that contributes to new ways of thinking and displaced people can cause social and economic

20 The World Bank in India • March 2017 challenges and disruptions to host communities. crisis and then help them rebuild their lives. This requires However, refugees can also bring skills, expertise, action to support economic activity, job creation, and and labor that can benefit communities in the longer social cohesion, as well as to strengthen and expand term. The international community can act to reduce essential services. vulnerabilities among the forcibly displaced during a

India Project Documents

Orissa State Roads Project Amaravati Sustainable Capital City Development Project Date 17 February 2017 Date 10 January 2017 Project ID P096023 Project ID P071250 Report No. ICR3903 (Implementation Completion and Results Report) Report No. STEP1033, STEP919, STEP828, STEP827, STEP786 (Procurement 2nd Kerala Rural Water Supply and Sanitation Plan) Project Andhra Pradesh Rural Inclusive Growth Project Date 31 January 2017 Date 09 January 2017 Project ID P121774 Project ID P152210 Report No. STEP910 (Procurement Plan) Report No. STEP774 (Procurement Plan) 40495 (Procurement plan – 2007-2008 phase VII upgrade Jhalawar) Himachal Pradesh Public Financial Management Capacity Building Andhra Pradesh and Telangana State Community- Based Tank Management Project Date 01 January 2017

Date 31 January 2017 Project ID P156687

Project ID P100789 Report No. 12710 (Environmental Assessment)

Report No. ICR3860 (Implementation Completion PIDA103870 (Program Information and Results Report) Document)

Bihar Transformative Development Project Assam State Roads Project

Date 31 January 2017 Date 29 December 2017

Project ID P159576 Project ID P096018

Report No. STEP913 (Procurement Plan) Report No. STEP924, STEP736 (Procurement Plan) Bihar Integrated Social Protection Strengthening Project Second Kerala State Transport Project

Date 14 January 2017 Date 22 December 2017

Project ID P118826 Project ID P130339

Report No. STEP909, STEP885, STEP816 Report No. STEP721 (Procurement Plan) (Procurement Plan) Assam State Public Finance Institutional Reforms Capacity Augmentation of the National Waterway – 1 (Aspire) Project

Date 12 January 2017 Date 12 December 2017

Project ID P148775 Project ID P157198

Report No. STEP821, STEP803, STEP 802 Report No. STEP933, STEP927, STEP776, (Procurement Plan) STEP650 (Procurement Plan)

The World Bank in India • March 2017 21 Assam Agribusiness and Rural Transformation Andhra Pradesh Disaster Recovery Project Project Date 02 December 2017 Date 05 December 2017 Project ID P154847 Project ID P155617 Report No. STEP926, STEP879, STEP3044, Report No. STEP818, STEP740 (Procurement STEP765, STEP764, STEP671, Plan) STEP610, STEP602 (Procurement Plan) SFG724 (Environmental Assessment)

Ecosystems Service Improvement Project – P133803 Bihar Kosi Basin Development Project Date 01 December 2017 Date 05 December 2017 Project ID P133803 Project ID P127725 Report No. SFG3043 (Indigenous Peoples Plan), Report No. STEP979, STEP961, STEP946, SFG3042, SFG3037, SFG3036 STEP792, STEP787, STEP609 (Environmental Assessment) (Procurement Plan) PIDA100822 (Program Information Document)

From the Blogworld

How Can South Asia’s Youth Plug into Digital Jobs How protein deficiencies impact the health of of the Future? communities in India By Anna O’ Donnell and Siddhartha Raja By Parvati Singh

ver the past several years, innovations in he state of Madhya Pradesh in India is largely Oinformation and communication technologies Tvegetarian with limited consumption of eggs and have fundamentally changed the nature of work. meat.

This has created new opportunities in digital While these dietary preferences are commonplace employment for workers and employers in South Asia in other Indian states, Madhya Pradesh is facing a and beyond. protein deficiency epidemic which threatens the long term health of its population. So what are the pathways to this new employment? How did it get there? During a recent Facebook live chat on digital jobs, we explored three themes. First, we discussed where the In 2015, I spent five weeks in rural and tribal areas

digital jobs of the future are. Second, we discussed (Change backgroundof colourMadhya as needed) Pradesh evaluating the World Bank’s how South Asia is uniquely positioned to benefit from Madhya Pradesh District Poverty Intervention Project the growth of these jobs. And finally, we discussed (MPDPIP II), with the support of the South Asia Food how to get started in the digital economy by finding and Nutrition Security Initiative (SAFANSI) relevant training and learning opportunities. Across the 8 districts I visited, families shared how Read More: https://tinyurl.com/h6hfcko they had improved their agricultural productivity,

22 The World Bank in India • March 2017 From the Blogworld

(Change background colour as needed) started backyard kitchen gardening, and the world of automotive technology could have supplemented their income through dairy and poultry fundamental implications for sustainability. farming, collective procurement and small scale What are these megatrends, and how can they enterprises. reshape the future of urban mobility? As I examined local village level health records, Read more: https://tinyurl.com/j9a9d6d Anganwadi Center (AWC) registers, Auxiliary Nurse and Midwife (ANM) registers and Primary Health Center (PHC) documents, I noticed a reduction (Change background colour as needed) Building institutional capacity for rural sanitation: in severe malnutrition and severe anemia among India’s Uttar Pradesh State pregnant women and under 5-year-old children. By Mariappa Kullappa However, this decrease did not extend to moderate or mild malnutrition and anemia.