A day after India zoomed to <a href="http://www.wionews.com/business-economy/ease-of-doing-business-indias-rankings-zooms-to-100-in-world-bank-report-up-30-places-23243">No-100 in World Bank&#39;s ease of doing business index, China&#39;s</a> state-run Global Times newspaper was quick to point out that &quot;India&#39;s GDP is only one-fifth of China&#39;s.&quot;

India registered double-digital improvement <a href="http://www.wionews.com/business-economy/nifty-sensex-ride-on-world-bank-ranking-hit-new-high-23267">in &quot;ease of doing business&quot; report released on Tuesday by the World Bank</a>, climbing 30 notches from 130, as the bank declared India&#39;s improved rankings was due to reforms carried out evenly across sectors.

However, the China daily said India had achieved &quot;little in land and labour law reform in recent years&quot; which was &quot;another weakness for the Modi government.&quot;

&quot;Being subject to party politics, there are different types of political logic behind some economic reforms in India. In November last year, Modi&#39;s demonetization had a strong influence,&quot; the newspaper said, adding,&quot;It was an effective way to combat the shadow economy, but it also cut the campaign funding of opposition parties. India&#39;s largest opposition party, the Congress Party, strongly condemned the government move.&quot;

&quot;If economic reforms are based on the political interests of certain parties rather than the general public, it is hard to implement changes systematically,&quot; it added.

The newspaper said India&#39;s &quot;stalled reform&quot; had ensured that country missed &quot;the golden age of rapid globalization, while China successfully seized the opportunity and achieved rapid economic growth.&quot;

The newspaper also pointed out India&#39;s refusal to join the One Belt, One Road(OBOR) project - a key foreign policy initiative of President Xi which is now enshrined&nbsp;in the Chinese constitution, stating that the Modi government &quot;chose to compete with China instead of cooperating&quot;, and it displayed a &quot;negative - even confrontational - attitude to the cooperation frameworks proposed by China, including the Belt and Road initiative.&quot;

&quot;These errors may hamper India&#39;s economic development and cause an even greater disappointment in the country,&quot; the newspaper declared.

&nbsp;&nbsp;

China daily said India had achieved 'little in land and labour law reform in recent years' which was 'another weakness for the Modi government.'

A day after India zoomed to No-100 in World Bank's ease of doing business index, China's state-run Global Times newspaper was quick to point out that "India's GDP is only one-fifth of China's." India registered double-digital improvement in "ease of doing business" report released on Tuesday by the World Bank, climbing 30 notches from 130, as the bank declared India's improved rankings was due to reforms carried out evenly across sectors. However, the China daily said India had achieved "little in land and labour law reform in recent years" which was "another weakness for the Modi government." "Being subject to party politics, there are different types of political logic behind some economic reforms in India. In November last year, Modi's demonetization had a strong influence," the newspaper said, adding,"It was an effective way to combat the shadow economy, but it also cut the campaign funding of opposition parties. India's largest opposition party, the Congress Party, strongly condemned the government move." "If economic reforms are based on the political interests of certain parties rather than the general public, it is hard to implement changes systematically," it added. The newspaper said India's "stalled reform" had ensured that country missed "the golden age of rapid globalization, while China successfully seized the opportunity and achieved rapid economic growth." The newspaper also pointed out India's refusal to join the One Belt, One Road(OBOR) project - a key foreign policy initiative of President Xi which is now enshrined in the Chinese constitution, stating that the Modi government "chose to compete with China instead of cooperating", and it displayed a "negative - even confrontational - attitude to the cooperation frameworks proposed by China, including the Belt and Road initiative." "These errors may hamper India's economic development and cause an even greater disappointment in the country," the newspaper declared.

As India climbs 'ease of doing business' rankings, China daily takes potshot at Modi government

India registered <a href="http://www.wionews.com/business-economy/live-world-banks-criteria-is-very-strict-says-jaitley-23245">double-digital improvement in &quot;ease of doing business&quot;</a> report released by the World Bank today.

The World Bank ranked <a href="http://www.wionews.com/business-economy/what-is-ease-of-doing-business-23242">India at 100 out of 190 countries, as the country rose&nbsp;30 places</a>&nbsp;in the latest World Bank report.

Last year, India was ranked 130 out of 190 countries in World Bank Group&#39;s annual report on the &quot;ease of doing business&quot;. India had climbed just one place from the previous year in 2016.

However, this time the World Bank noted that India adopted thirty-seven reforms since 2003, nearly half of these reforms were&nbsp;implemented in last four years.&nbsp;

&quot;With the eight reforms enforced in the system, India made paying taxes easier by requiring that payments be made electronically to the Employees Provident Fund and introducing a set of administrative measures easing compliance with corporate income tax,&quot; said a World Bank statement.

Acknowledging Indian government&#39;s contribution,&nbsp;the report said India&#39;s improved rankings was not a one-year effort,&nbsp;but a three-year&nbsp;effort by the Indian government.

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PM <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a>&#39;s Mantra of &#39;Reform, Perform, Transform&#39; leads to business becoming easier in India. <a href="https://t.co/dC2MAZHdOp">pic.twitter.com/dC2MAZHdOp</a>
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India, the World Bank report said had implemented 8 out of 10 doing business indicators and was the only large country this year to have achieved such a significant shift.

&quot;India reduced the number procedures and time required to obtain a building permit by implementing an online system that has streamlined the process at the Municipality of New Delhi and Greater Mumbai,&quot; the statement added.

&quot;Tackling these challenging reforms will be the key to India sustaining the momentum towards a higher ranking,&quot; said country director India, Junaid Ahmad.&nbsp;

The report said India should focus on reforms which will boost the investment climate and make the country more competitive.&nbsp;

The World Bank said a sound financial sector and access to skilled labour will help India to break into the Top-50. The bank suggested for job creation, small and medium enterprises(SME) should increase in size, as the size of SMEs in India was smaller as compared to other countries.

On &quot;distance to frontier metric&quot;- a technical term meaning closer to global best practices- India went from 56.05 in &quot;doing business&nbsp;2017&quot;&nbsp;to 60.76 in &quot;doing Business 2018&quot;.

The World Bank report said new reforms in starting a business, construction permits, getting credit, protection of minority investors, paying taxes, trading of cross-border(import regulations) helped in improving India&#39;s rankings.

The report pointed out that GST hadn&#39;t shown its full impact which will be visible in the next 2-3 years.

India&#39;s state governments should work on reducing burden on courts, engineer land reforms, boost electricity, get&nbsp;construction permits quickly, the report said.

Brunei, Thailand, Malawi, Kosovo, India Uzbekistan, Zambia, Nigeria, El Salvador were the other countries that improved the rankings the most, the report added.

Last year, India was ranked 130 out of 190 countries in World Bank Group's annual report on the "ease of doing business"

India registered double-digital improvement in "ease of doing business" report released by the World Bank today. The World Bank ranked India at 100 out of 190 countries, as the country rose 30 places in the latest World Bank report. Last year, India was ranked 130 out of 190 countries in World Bank Group's annual report on the "ease of doing business". India had climbed just one place from the previous year in 2016. However, this time the World Bank noted that India adopted thirty-seven reforms since 2003, nearly half of these reforms were implemented in last four years. "With the eight reforms enforced in the system, India made paying taxes easier by requiring that payments be made electronically to the Employees Provident Fund and introducing a set of administrative measures easing compliance with corporate income tax," said a World Bank statement. Acknowledging Indian government's contribution, the report said India's improved rankings was not a one-year effort, but a three-year effort by the Indian government. PM @narendramodi's Mantra of 'Reform, Perform, Transform' leads to business becoming easier in India. pic.twitter.com/dC2MAZHdOp — PMO India (@PMOIndia) October 31, 2017 × India, the World Bank report said had implemented 8 out of 10 doing business indicators and was the only large country this year to have achieved such a significant shift. "India reduced the number procedures and time required to obtain a building permit by implementing an online system that has streamlined the process at the Municipality of New Delhi and Greater Mumbai," the statement added. "Tackling these challenging reforms will be the key to India sustaining the momentum towards a higher ranking," said country director India, Junaid Ahmad. The report said India should focus on reforms which will boost the investment climate and make the country more competitive. The World Bank said a sound financial sector and access to skilled labour will help India to break into the Top-50. The bank suggested for job creation, small and medium enterprises(SME) should increase in size, as the size of SMEs in India was smaller as compared to other countries. On "distance to frontier metric"- a technical term meaning closer to global best practices- India went from 56.05 in "doing business 2017" to 60.76 in "doing Business 2018". The World Bank report said new reforms in starting a business, construction permits, getting credit, protection of minority investors, paying taxes, trading of cross-border(import regulations) helped in improving India's rankings. The report pointed out that GST hadn't shown its full impact which will be visible in the next 2-3 years. India's state governments should work on reducing burden on courts, engineer land reforms, boost electricity, get construction permits quickly, the report said. Brunei, Thailand, Malawi, Kosovo, India Uzbekistan, Zambia, Nigeria, El Salvador were the other countries that improved the rankings the most, the report added.

Ease of doing business: India's rankings zooms to 100 in World Bank report, up 30 places

India has improved considerably on the <a href="http://www.wionews.com/business-economy/ease-of-doing-business-indias-rankings-zooms-to-100-in-world-bank-report-up-30-places-23243">ease of doing business index</a>, according to the latest World Bank rankings released on Tuesday. This will greatly help India showcase its business-friendly image and attract wizards of the industry.

But what exactly is Ease of Doing Business? In simple terms, it&rsquo;s an <a href="http://www.wionews.com/business-economy/live-world-banks-criteria-is-very-strict-says-jaitley-23245">index created by the World Bank</a> which is a benchmark study of regulation, to know how easy it is for a businessman to start his venture in a country. The index measures steps taken by the government, including policy decisions, to ensure an entrepreneur is able to get loans and credits, construction permits licence etc so that he/she can set up the shop there.

Higher rankings on the Ease of Doing index reflect better and simpler regulation process and stronger protection of rights. The report is announced by the World Bank after a detailed survey of different markets.

The Modi government, since it came to power in 2014, has projected India as investment-friendly destination. It has also launched the &#39;Make in India&#39; initiative to invite investors from across the globe to set up shop in the country. It also launched the unified Goods and Services Tax in July this year which subsumed all the other state levies so that India&rsquo;s ranking improves. And it seems to have worked. Finance Minister Arun Jaitley, who held a press conference on the World Bank report today, said that India has jumped 53 places to rank at 119 on paying taxes.

Last year, India ranked a lowly 172 on paying taxes.

India has improved considerably on the ease of doing business index, according to the latest World Bank rankings released on Tuesday.

India has improved considerably on the ease of doing business index, according to the latest World Bank rankings released on Tuesday. This will greatly help India showcase its business-friendly image and attract wizards of the industry. But what exactly is Ease of Doing Business? In simple terms, it’s an index created by the World Bank which is a benchmark study of regulation, to know how easy it is for a businessman to start his venture in a country. The index measures steps taken by the government, including policy decisions, to ensure an entrepreneur is able to get loans and credits, construction permits licence etc so that he/she can set up the shop there. Higher rankings on the Ease of Doing index reflect better and simpler regulation process and stronger protection of rights. The report is announced by the World Bank after a detailed survey of different markets. The Modi government, since it came to power in 2014, has projected India as investment-friendly destination. It has also launched the 'Make in India' initiative to invite investors from across the globe to set up shop in the country. It also launched the unified Goods and Services Tax in July this year which subsumed all the other state levies so that India’s ranking improves. And it seems to have worked. Finance Minister Arun Jaitley, who held a press conference on the World Bank report today, said that India has jumped 53 places to rank at 119 on paying taxes. Last year, India ranked a lowly 172 on paying taxes.

Ease of doing business: How World Bank ranks countries

The growing split between the United States and the rest of the world spilled into the annual meetings of the International Monetary Fund and World Bank in Washington this week.

The US administration showed a diminished view of the Bretton Woods institutions that shaped a US-led order after World War II, rejecting efforts to expand their activities, and defending its attack on free-trade pacts as part of President Donald Trump&#39;s &quot;America First&quot; agenda.

And at the same time, the US continued to stymie China&#39;s ambitions to elevate its global role via an expanded stake in both the IMF and World Bank.

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The Trump administration spelled out its view by rejecting a capital increase that the World Bank wants to expand its global anti-poverty mission.

&quot;More capital is not the solution when existing capital is not allocated effectively,&quot; Treasury Secretary Steven Mnuchin said in a statement Friday, one day after Bank President Jim Yong Kim said he believed the Trump administration was now supportive of the move.

There was also no movement on the IMF&#39;s long-planned boost in its lending resources that would come with a shakeup of its shareholder quotas. Last year, the Republican-controlled Congress effectively vetoed the move, and the Trump administration has not supported bringing it back to life.

US questions IMF, Bank pay 
Instead, Mnuchin took aim at the IMF and World Bank bureaucracies, calling them inefficient and suggesting their staffs are overpaid -- a longstanding view among many US conservative critics of both.&nbsp;

&quot;We see scope for further budget discipline, especially with respect to compensation and the Executive Board budget,&quot; he said of the World Bank.

The new US stance on globalization under the Trump administration also came through in the meeting of the G20 finance ministers and central bank chiefs that took place during the IMF-World Bank meetings.

In the past, the group regularly raised the alarm over protectionist and anti-free-trade sentiment.

But this week the Trump administration -- which this year killed the Trans-Pacific Partnership with Asia-Pacific nations, stalled talks on a transatlantic free trade zone, and forced a renegotiation of the North American Free Trade Agreement -- appeared to stifle such talk.

After presenting a tepid G20 statement with no mention of trade or protectionism, German Finance Minister Wolfgang Schaeuble quipped that the G20 lacks expertise in the matter. Because of that, he said, &quot;at this time, global discussions are much more relaxed.&quot;

Schaeuble challenges US 
The US differences with its allies were not evident on the surface, and the nearly week-long meetings of the two giant multilateral institutions went off smoothly.&nbsp;

The World Bank&#39;s Kim and IMF chief Christine Lagarde kept the focus on the need for countries to reform for the long term while global growth is strong, and to address growing inequality, especially in the most developed nations.

But in statements to the steering committees of the two institutions, many countries made clear their differences with the United States.

Most said they backed a capital hike for the World Bank. Schaeuble called it &quot;urgent.&quot;

He also was tough on the trade issue.&nbsp;

&quot;We should all be concerned about slow global trade growth and increased anti-free-trade rhetoric. Both are a threat to our common economic prosperity,&quot; Schaeuble said.&nbsp;

<a href="http://www.wionews.com/india-news/world-praising-india-for-reforms-like-demonetisation-gst-arun-jaitley-22453" target="_blank">Also read:&nbsp;World praising India for reforms like demonetisation &amp; GST, says Arun Jaitley</a>

&quot;Protectionist measures will only harm growth and harm those they claim to protect,&quot; he added.

In its formal statement, China called the lack of progress on increasing World Bank capital &quot;regrettable.&quot;

&#39;Climate change&#39; restored 
It is a crucial issue for Beijing, which sees that a larger shareholding in both the IMF and World Bank, both dominated by the United States, would recognize its status as the world&#39;s number two economy and a political superpower.

&quot;We hope that all parties will provide more political impetus from the perspective of increasing the legitimacy and effectiveness of the World Bank&#39;s governance structure... so as to increase the representation and voice of emerging market and developing countries,&quot; China said.

The US push for both to curb compensation met unenthusiastic reactions. In a closing statement, the Bank&#39;s steering committee blandly pledged support for a compensation review.

But the IMF bristled. &quot;The Fund is highly cost-conscious and in fact we have been operating under a flat budget in real terms for six years in a row,&quot; a spokesperson said. &quot;Salaries and benefits are reviewed on a regular basis by our Executive Board.&quot;

But one notable change suggested the Trump administration was not always getting its way -- or was changing its stance.&nbsp;

In the April IMF-World Bank meetings, the final Bank statement was bereft of any mention of climate change, reflecting Trump&#39;s refusal to accept it as a key global challenge.

In the statement released Saturday, climate change was reinstated as one of the world&#39;s key challenges.

The US rejected the World Bank's and the IMF's efforts to expand their activities, and defended its attack on free-trade pacts as part of President Donald Trump's 'America First' agenda

The growing split between the United States and the rest of the world spilled into the annual meetings of the International Monetary Fund and World Bank in Washington this week. The US administration showed a diminished view of the Bretton Woods institutions that shaped a US-led order after World War II, rejecting efforts to expand their activities, and defending its attack on free-trade pacts as part of President Donald Trump's "America First" agenda. And at the same time, the US continued to stymie China's ambitions to elevate its global role via an expanded stake in both the IMF and World Bank. US Treasury Secretary Steve Mnuchin took aim at the IMF and World Bank bureaucracies, calling them inefficient and suggesting their staffs are overpaid -- a longstanding view among many US conservative critics of both × The Trump administration spelled out its view by rejecting a capital increase that the World Bank wants to expand its global anti-poverty mission. "More capital is not the solution when existing capital is not allocated effectively," Treasury Secretary Steven Mnuchin said in a statement Friday, one day after Bank President Jim Yong Kim said he believed the Trump administration was now supportive of the move. There was also no movement on the IMF's long-planned boost in its lending resources that would come with a shakeup of its shareholder quotas. Last year, the Republican-controlled Congress effectively vetoed the move, and the Trump administration has not supported bringing it back to life. US questions IMF, Bank pay Instead, Mnuchin took aim at the IMF and World Bank bureaucracies, calling them inefficient and suggesting their staffs are overpaid -- a longstanding view among many US conservative critics of both. "We see scope for further budget discipline, especially with respect to compensation and the Executive Board budget," he said of the World Bank. The new US stance on globalization under the Trump administration also came through in the meeting of the G20 finance ministers and central bank chiefs that took place during the IMF-World Bank meetings. In the past, the group regularly raised the alarm over protectionist and anti-free-trade sentiment. But this week the Trump administration -- which this year killed the Trans-Pacific Partnership with Asia-Pacific nations, stalled talks on a transatlantic free trade zone, and forced a renegotiation of the North American Free Trade Agreement -- appeared to stifle such talk. After presenting a tepid G20 statement with no mention of trade or protectionism, German Finance Minister Wolfgang Schaeuble quipped that the G20 lacks expertise in the matter. Because of that, he said, "at this time, global discussions are much more relaxed." Schaeuble challenges US The US differences with its allies were not evident on the surface, and the nearly week-long meetings of the two giant multilateral institutions went off smoothly. The World Bank's Kim and IMF chief Christine Lagarde kept the focus on the need for countries to reform for the long term while global growth is strong, and to address growing inequality, especially in the most developed nations. But in statements to the steering committees of the two institutions, many countries made clear their differences with the United States. Most said they backed a capital hike for the World Bank. Schaeuble called it "urgent." He also was tough on the trade issue. "We should all be concerned about slow global trade growth and increased anti-free-trade rhetoric. Both are a threat to our common economic prosperity," Schaeuble said. Also read: World praising India for reforms like demonetisation & GST, says Arun Jaitley "Protectionist measures will only harm growth and harm those they claim to protect," he added. In its formal statement, China called the lack of progress on increasing World Bank capital "regrettable." 'Climate change' restored It is a crucial issue for Beijing, which sees that a larger shareholding in both the IMF and World Bank, both dominated by the United States, would recognize its status as the world's number two economy and a political superpower. "We hope that all parties will provide more political impetus from the perspective of increasing the legitimacy and effectiveness of the World Bank's governance structure... so as to increase the representation and voice of emerging market and developing countries," China said. The US push for both to curb compensation met unenthusiastic reactions. In a closing statement, the Bank's steering committee blandly pledged support for a compensation review. But the IMF bristled. "The Fund is highly cost-conscious and in fact we have been operating under a flat budget in real terms for six years in a row," a spokesperson said. "Salaries and benefits are reviewed on a regular basis by our Executive Board." But one notable change suggested the Trump administration was not always getting its way -- or was changing its stance. In the April IMF-World Bank meetings, the final Bank statement was bereft of any mention of climate change, reflecting Trump's refusal to accept it as a key global challenge. In the statement released Saturday, climate change was reinstated as one of the world's key challenges.

Divide between US & rest of world spills out at World Bank-IMF meetings in Washington

World Bank President Jim Yong Kim said the recent slowdown in India&#39;s economic growth is an &quot;aberration&quot; caused by temporary disruptions in preparation for the Goods and Service Tax (GST).

He asserted that it will get corrected in the near future.

Kim while responding to questions on the slowdown in India`s growth in the first quarter said GST is going to have a positive impact on the Indian economy.

&quot;There&#39;s been a deceleration in the first quarter, but we think that`s mostly due to temporary disruptions in preparation for the GST, which by the way is going to have a huge&nbsp;positive impact on the economy,&quot; Kim told the media during a conference ahead of the annual meeting of the International Monetary Fund and the World Bank here.

&quot;We think that the recent slowdown is an aberration which will correct in the coming months, and the GDP growth will stabilise during the year. We`ve been watching carefully, as Prime Minister (Narendra) Modi has really worked on improving the business environment, and so, we think all of those efforts will pay off as well,&quot; he added.

Further responding on India and human capital, Kim praised the &quot;commitment&quot; of Prime Minister Narendra Modi to sanitation issues, and said &quot;Swachh Bharat&quot;&nbsp;is one of the most effective programmes anywhere.

&quot;I know that Prime Minister Modi himself personally is very committed to improving opportunities for all of India. But, India has a lot of challenges. We look at some of the educational outcomes, we`ve looked at some of the health outcomes, and India has room to improve, like most other countries,&quot; he said.

&quot;Our job is to take the political will and commitment that Prime Minister Modi has clearly demonstrated and has communicated to everyone, and then bring to India the most effective intervention that will, as quickly as possible, improve the stock of human capital,&quot; Kim said.

Finance Minister Arun Jaitley would be leading a delegation to the annual meeting next week.

India`s GDP grew 5.7 per cent during the April-June period. During the previous quarter (January-March) the GDP had grown by 6.1 per cent.

<a href="http://www.wionews.com/india-news/watch-not-concerned-by-slowdown-in-indian-economy-says-mastercard-ceo-ajay-banga-21060" target="_blank">WATCH: Not concerned by slowdown in Indian economy, says Mastercard CEO Ajay Banga</a>

Also read:&nbsp;<a href="http://www.wionews.com/photos/forbes-list-mukesh-ambani-added-153-billion-last-year-485#photo-26301" target="_blank">Economy slows but India&#39;s richest 100 </a><a href="http://www.wionews.com/photos/forbes-list-mukesh-ambani-added-153-billion-last-year-485#photo-26301" target="_blank">get</a><a href="http://www.wionews.com/photos/forbes-list-mukesh-ambani-added-153-billion-last-year-485#photo-26301" target="_blank"> richer by 26%: Forbes list</a>

World Bank President Jim Yong Kim said the recent slowdown in India's economic growth is an 'aberration' caused by temporary disruptions in preparation for the Goods and Service Tax

World Bank President Jim Yong Kim said the recent slowdown in India's economic growth is an "aberration" caused by temporary disruptions in preparation for the Goods and Service Tax (GST). He asserted that it will get corrected in the near future. Kim while responding to questions on the slowdown in India`s growth in the first quarter said GST is going to have a positive impact on the Indian economy. "There's been a deceleration in the first quarter, but we think that`s mostly due to temporary disruptions in preparation for the GST, which by the way is going to have a huge positive impact on the economy," Kim told the media during a conference ahead of the annual meeting of the International Monetary Fund and the World Bank here. "We think that the recent slowdown is an aberration which will correct in the coming months, and the GDP growth will stabilise during the year. We`ve been watching carefully, as Prime Minister (Narendra) Modi has really worked on improving the business environment, and so, we think all of those efforts will pay off as well," he added. Further responding on India and human capital, Kim praised the "commitment" of Prime Minister Narendra Modi to sanitation issues, and said "Swachh Bharat" is one of the most effective programmes anywhere. "I know that Prime Minister Modi himself personally is very committed to improving opportunities for all of India. But, India has a lot of challenges. We look at some of the educational outcomes, we`ve looked at some of the health outcomes, and India has room to improve, like most other countries," he said. "Our job is to take the political will and commitment that Prime Minister Modi has clearly demonstrated and has communicated to everyone, and then bring to India the most effective intervention that will, as quickly as possible, improve the stock of human capital," Kim said. Finance Minister Arun Jaitley would be leading a delegation to the annual meeting next week. India`s GDP grew 5.7 per cent during the April-June period. During the previous quarter (January-March) the GDP had grown by 6.1 per cent. WATCH: Not concerned by slowdown in Indian economy, says Mastercard CEO Ajay Banga Also read: Economy slows but India's richest 100 get richer by 26%: Forbes list

India's economy will be back on track soon: World Bank

The World Bank has warned of a learning crisis in global education particularly in low and middle-income countries like India, underlining that schooling without learning is not just a wasted development opportunity, but also a great injustice to children worldwide.

The Bank in a latest report yesterday noted that millions of young students in these countries face the prospect of lost opportunity and lower wages in later life because their primary and secondary schools are failing to educate them to succeed in life.

According to the World Development Report 2018, &quot;Learning to Realise Education&#39;s Promise&quot;, released on Tuesday, India ranks second after Malawi in a list of 12 countries wherein a grade two student could not read a single word of a short text.

India also tops the list of seven countries in which a grade two student could not perform two-digit subtraction.

&quot;In rural India, just under three-quarters of students in grade 3 could not solve a two-digit subtraction such as 46 - 17, and by grade 5 half could still not do so,&quot; the World Bank said.

The report argued that without learning, education will fail to deliver on its promise to eliminate extreme poverty and create shared opportunity and prosperity for all.

&quot;Even after several years in school, millions of children cannot read, write or do basic math. This learning crisis is widening social gaps instead of narrowing them,&quot; it said.

Young students who are already disadvantaged by poverty, conflict, gender or disability reach young adulthood without even the most basic life skills, it said.

&quot;This learning crisis is a moral and economic crisis,&quot; World Bank Group President Jim Yong Kim said.

&quot;When delivered well, education promises young people employment, better earnings, good health, and a life without poverty,&quot; he added.

&quot;For communities, education spurs innovation, strengthens institutions, and fosters social cohesion. But these benefits depend on learning, and schooling without learning is a wasted opportunity. More than that, it&#39;s a great injustice, the children whom societies fail the most are the ones who are most in need of a good education to succeed in life,&quot; the Bank president said.

In rural India in 2016, only half of grade 5 students could fluently read a text at the level of the grade 2 curriculum, which included sentences (in the local language) such as &#39;It was the month of rains&#39; and &quot;There were black clouds in the sky&quot;.

&quot;These severe shortfalls constitute a learning crisis,&quot; the Bank report said.

According to the report, in Andhra Pradesh in 2010, low-performing students in grade 5 were no more likely to answer a grade 1 question correctly than those in grade 2.

&quot;Even the average student in grade 5 had about a 50 per cent chance of answering a grade 1 question correctly, compared with about 40 per cent in grade 2,&quot; the report said.

An experiment in Andhra Pradesh, that rewarded teachers for gains in measured learning in math and language led to more learning not just in those subjects, but also in science and social studies, even though there were no rewards for the latter.

&quot;This outcome makes sense after all, literacy and numeracy are gateways to education more generally,&quot; the report said.

Further, a computer-assisted learning program in Gujarat, improved learning when it added to teaching and learning time, especially for the poorest-performing students, it said.

The report recommends concrete policy steps to help developing countries resolve this dire learning crisis in the areas of stronger learning assessments, using evidence of what works and what does not to guide education decision-making,&nbsp;and mobilising a strong social movement to push for education changes that champion &quot;learning for all&quot;. &nbsp;

According to the 'World Development Report 2018, 'Learning to Realise Education's Promise', India ranks second after Malawi in a list of 12 countries

The World Bank has warned of a learning crisis in global education particularly in low and middle-income countries like India, underlining that schooling without learning is not just a wasted development opportunity, but also a great injustice to children worldwide. The Bank in a latest report yesterday noted that millions of young students in these countries face the prospect of lost opportunity and lower wages in later life because their primary and secondary schools are failing to educate them to succeed in life. According to the World Development Report 2018, "Learning to Realise Education's Promise", released on Tuesday, India ranks second after Malawi in a list of 12 countries wherein a grade two student could not read a single word of a short text. India also tops the list of seven countries in which a grade two student could not perform two-digit subtraction. "In rural India, just under three-quarters of students in grade 3 could not solve a two-digit subtraction such as 46 - 17, and by grade 5 half could still not do so," the World Bank said. The report argued that without learning, education will fail to deliver on its promise to eliminate extreme poverty and create shared opportunity and prosperity for all. "Even after several years in school, millions of children cannot read, write or do basic math. This learning crisis is widening social gaps instead of narrowing them," it said. Young students who are already disadvantaged by poverty, conflict, gender or disability reach young adulthood without even the most basic life skills, it said. "This learning crisis is a moral and economic crisis," World Bank Group President Jim Yong Kim said. "When delivered well, education promises young people employment, better earnings, good health, and a life without poverty," he added. "For communities, education spurs innovation, strengthens institutions, and fosters social cohesion. But these benefits depend on learning, and schooling without learning is a wasted opportunity. More than that, it's a great injustice, the children whom societies fail the most are the ones who are most in need of a good education to succeed in life," the Bank president said. In rural India in 2016, only half of grade 5 students could fluently read a text at the level of the grade 2 curriculum, which included sentences (in the local language) such as 'It was the month of rains' and "There were black clouds in the sky". "These severe shortfalls constitute a learning crisis," the Bank report said. According to the report, in Andhra Pradesh in 2010, low-performing students in grade 5 were no more likely to answer a grade 1 question correctly than those in grade 2. "Even the average student in grade 5 had about a 50 per cent chance of answering a grade 1 question correctly, compared with about 40 per cent in grade 2," the report said. An experiment in Andhra Pradesh, that rewarded teachers for gains in measured learning in math and language led to more learning not just in those subjects, but also in science and social studies, even though there were no rewards for the latter. "This outcome makes sense after all, literacy and numeracy are gateways to education more generally," the report said. Further, a computer-assisted learning program in Gujarat, improved learning when it added to teaching and learning time, especially for the poorest-performing students, it said. The report recommends concrete policy steps to help developing countries resolve this dire learning crisis in the areas of stronger learning assessments, using evidence of what works and what does not to guide education decision-making, and mobilising a strong social movement to push for education changes that champion "learning for all".

World Bank warns of learning crisis in countries like India

Imagine the populations of the US, Brazil and Russia all lined up one after the other. That is approximately the number of poor children there are in the world &ndash; which stands at 689 million across 103 countries, according to a new <a href="http://www.ophi.org.uk/wp-content/uploads/Brief_46_Child_MPI_2017-1.pdf">report</a> published by my colleagues at the <a href="http://www.ophi.org.uk">Oxford Poverty and Human Development Initiative (OPHI)</a>.

Even more frustrating is that children, who represent 34 per cent&nbsp;of the population in these countries, constitute half of the world&rsquo;s poor and have a higher rate of poverty than adults. This is a call for action that poses a huge challenge to the accomplishment of goal number one of the UN&rsquo;s <a href="https://sustainabledevelopment.un.org/?menu=1300">sustainable development goals</a> (SDGs): ending poverty in all its forms and dimensions.

As the UN <a href="https://sustainabledevelopment.un.org/hlpf">High Level Political Forum</a> meets on July 10 to discuss poverty eradication and track progress on the SDGs, the international community at large must take swift action to address this issue.

The OPHI report used the <a href="http://www.ophi.org.uk/wp-content/uploads/OPHIMethNote_44_Summer_2017.pdf">Global Multidimensional Poverty Index</a>, first introduced in 2010, which comprises a series of measures that assess deprivations in health, education and living standards to find out how many children are what are called &ldquo;multidimensionally poor&rdquo;. When looking at populations across 103 low and middle-income countries for which data is available, the research team found that children represent 48 per cent&nbsp;of the multidimensional poor &ndash; and account for two out of every five children in these countries.

Some 87 per cent&nbsp;of the 689 million&nbsp;are growing up in South Asia and in Sub-Saharan Africa &ndash; around 300 million in each region. In Ethiopia, Niger and South Sudan more than 90 per cent&nbsp;of all children are multidimensionally poor. The report also found that younger children, from birth to the age of nine, are the poorest according to the index &ndash; meaning more action is needed to improve nutrition and education in early stages of life.

More than just income

There are diverse and complementary ways of measuring poverty and, often, one measure alone does not provide the full picture. The numbers living in poverty can be different too.

In 2016, a <a href="https://www.unicef.org/publications/files/Ending_Extreme_Poverty_A_Focus_on_Children_Oct_2016.pdf">joint report of the World Bank and UNICEF</a> found that, globally, 385 million children were living on less than $1.90 a day (&pound;1.46) per person. But using a different series of measures the <a href="http://www.ophi.org.uk/wp-content/uploads/B47_Global_MPI_2017.pdf">Global Multidimensional Poverty Index</a> found that the number of poor children rises to 689m.

Why this difference? The <a href="http://www.ophi.org.uk/wp-content/uploads/OPHIMethNote_44_Summer_2017.pdf">Multidimensional Poverty Index (MPI)</a> draws attention to indicators that go beyond just income. It assesses a range of deprivations across health, education and living standards using ten indicators which include nutrition, school attendance and sanitation. A person is identified as multidimensionally poor if she or he is deprived in one-third or more of the ten indicators. This captures how people experience different deprivations simultaneously, and illuminates key areas that need as much attention as income.

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Indicator of poor children and adults (Others)
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These contrasts between different measures are not only about numbers but also about location. For example, the <a href="https://www.unicef.org/publications/files/Ending_Extreme_Poverty_A_Focus_on_Children_Oct_2016.pdf">World Bank and UNICEF&rsquo;s report</a> using the $1.90/day measure shows that the percentage of income poor is 20 per cent&nbsp;in South Asia and 49 per cent&nbsp;in Sub-Saharan Africa. In comparison, OPHI&rsquo;s study shows that 44 per cent&nbsp;of poor children are in South Asia and 43 per cent&nbsp;in Sub-Saharan Africa, indicating that South Asia requires as much attention as Sub-Saharan Africa in the efforts to fight poverty.

The need for better data

Progress in global poverty reduction has been steady over the past 20 years. According to the 2015 Millennium Development Goals <a href="http://www.un.org/millenniumgoals/2015_MDG_Report/pdf/MDG%202015%20Summary%20web_english.pdf">report</a>, in 1990, half of the people in developing countries were living under the poverty line. This proportion went down to 14 per cent&nbsp;in 2015. Extreme poverty at the global level also declined more than half, falling from one billion in 1990 to 836 million in 2015.

Despite this progress, efforts to tackle global poverty and to monitor it have sparked debate and concerns when it comes to measuring it, as the poorest people remain invisible. For example, a <a href="http://blogs.worldbank.org/developmenttalk/much-world-deprived-poverty-data-let-s-fix">World Bank study</a> showed that in the period between 2002 and 2011, 61 per cent&nbsp;of the countries in Sub-Saharan Africa did not have adequate data to monitor poverty trends. Without this critical information targeting and policy responses could be misguided.

The international community has acknowledged the importance of strengthening the availability and production of data. &ldquo;We are almost blind when the metrics on which action is based are ill-designed or when they are not well understood&rdquo;, <a href="http://ec.europa.eu/eurostat/documents/118025/118123/Fitoussi+Commission+report">wrote</a> the renowned economists Joseph Stiglitz, Amartya Sen and Jean-Paul Fitoussi in 2010.

A call for action

The results of the OPHI report are a call for action to the international community who must act swiftly and with determination. As new data shines light on aspects that were invisible before, new policy responses must be crafted, particularly for the younger generation growing up in poverty.

In 2015 the then-UN secretary-general Ban Ki Moon <a href="http://www.un.org/millenniumgoals/2015_MDG_Report/pdf/MDG%202015%20rev%20(July%201).pdf">said</a> that the Millenium Development Goals had been &ldquo;the most successful anti-poverty movement in history&rdquo; but that more needed to be done.

<img alt="The Conversation" height="1" src="https://counter.theconversation.edu.au/content/79953/count.gif?distributor=republish-lightbox-basic" width="1" />Children are our future but the future of this rising generation is in peril. Global leaders must do everything in their power, not only to lift children out of poverty, but to protect, nurture and help them realise their full potential. The most successful anti-poverty movement will be the one that leaves no one behind by ending poverty in all its forms and dimensions, everywhere.

This article was originally published on <a href="http://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/nearly-half-of-the-worlds-poor-are-now-children-thats-689m-young-people-79953">original article</a>.

689 million young people are living below poverty line worldwide, reports Oxford Poverty and Human Development Initiative

Imagine the populations of the US, Brazil and Russia all lined up one after the other. That is approximately the number of poor children there are in the world – which stands at 689 million across 103 countries, according to a new report published by my colleagues at the Oxford Poverty and Human Development Initiative (OPHI). Even more frustrating is that children, who represent 34 per cent of the population in these countries, constitute half of the world’s poor and have a higher rate of poverty than adults. This is a call for action that poses a huge challenge to the accomplishment of goal number one of the UN’s sustainable development goals (SDGs): ending poverty in all its forms and dimensions. As the UN High Level Political Forum meets on July 10 to discuss poverty eradication and track progress on the SDGs, the international community at large must take swift action to address this issue. The OPHI report used the Global Multidimensional Poverty Index, first introduced in 2010, which comprises a series of measures that assess deprivations in health, education and living standards to find out how many children are what are called “multidimensionally poor”. When looking at populations across 103 low and middle-income countries for which data is available, the research team found that children represent 48 per cent of the multidimensional poor – and account for two out of every five children in these countries. Some 87 per cent of the 689 million are growing up in South Asia and in Sub-Saharan Africa – around 300 million in each region. In Ethiopia, Niger and South Sudan more than 90 per cent of all children are multidimensionally poor. The report also found that younger children, from birth to the age of nine, are the poorest according to the index – meaning more action is needed to improve nutrition and education in early stages of life. More than just income There are diverse and complementary ways of measuring poverty and, often, one measure alone does not provide the full picture. The numbers living in poverty can be different too. In 2016, a joint report of the World Bank and UNICEF found that, globally, 385 million children were living on less than $1.90 a day (£1.46) per person. But using a different series of measures the Global Multidimensional Poverty Index found that the number of poor children rises to 689m. Why this difference? The Multidimensional Poverty Index (MPI) draws attention to indicators that go beyond just income. It assesses a range of deprivations across health, education and living standards using ten indicators which include nutrition, school attendance and sanitation. A person is identified as multidimensionally poor if she or he is deprived in one-third or more of the ten indicators. This captures how people experience different deprivations simultaneously, and illuminates key areas that need as much attention as income. Indicator of poor children and adults (Others) × These contrasts between different measures are not only about numbers but also about location. For example, the World Bank and UNICEF’s report using the $1.90/day measure shows that the percentage of income poor is 20 per cent in South Asia and 49 per cent in Sub-Saharan Africa. In comparison, OPHI’s study shows that 44 per cent of poor children are in South Asia and 43 per cent in Sub-Saharan Africa, indicating that South Asia requires as much attention as Sub-Saharan Africa in the efforts to fight poverty. The need for better data Progress in global poverty reduction has been steady over the past 20 years. According to the 2015 Millennium Development Goals report, in 1990, half of the people in developing countries were living under the poverty line. This proportion went down to 14 per cent in 2015. Extreme poverty at the global level also declined more than half, falling from one billion in 1990 to 836 million in 2015. Despite this progress, efforts to tackle global poverty and to monitor it have sparked debate and concerns when it comes to measuring it, as the poorest people remain invisible. For example, a World Bank study showed that in the period between 2002 and 2011, 61 per cent of the countries in Sub-Saharan Africa did not have adequate data to monitor poverty trends. Without this critical information targeting and policy responses could be misguided. The international community has acknowledged the importance of strengthening the availability and production of data. “We are almost blind when the metrics on which action is based are ill-designed or when they are not well understood”, wrote the renowned economists Joseph Stiglitz, Amartya Sen and Jean-Paul Fitoussi in 2010. A call for action The results of the OPHI report are a call for action to the international community who must act swiftly and with determination. As new data shines light on aspects that were invisible before, new policy responses must be crafted, particularly for the younger generation growing up in poverty. In 2015 the then-UN secretary-general Ban Ki Moon said that the Millenium Development Goals had been “the most successful anti-poverty movement in history” but that more needed to be done. Children are our future but the future of this rising generation is in peril. Global leaders must do everything in their power, not only to lift children out of poverty, but to protect, nurture and help them realise their full potential. The most successful anti-poverty movement will be the one that leaves no one behind by ending poverty in all its forms and dimensions, everywhere. This article was originally published on The Conversation. Read the original article.

Nearly half of the world's poor are now children

A few years back The World Bank coined the phrase &lsquo;Bangladesh Paradox&rsquo; with regards to Bangladesh&rsquo;s steady&nbsp;economic growth despite the absence of good governance. And a lack of credible electoral democracy has been added to it since 2013. 
&nbsp; 
Political economists were baffled by the average 6-7 per cent&nbsp;annual growth of Bangladesh&#39;s economy in the past few years. Even in last two decades, the growth rate average of Bangladesh was around 6 and never went below 5 which is quite good considering the faltering of south-east Asia in the turn of the century and the economic slump of 2008-09 in the west. The growth rate is one of the highest few in the world.

The saturated economies of the developed countries have very low growth. Also, the growth rate in the middle-income countries has slowed down for various reasons. China has maintained a spectacular double-digit growth rate for the last couple of decades and became the driver of the world&rsquo;s economic growth. But, it has come down to 6-7 per cent&nbsp;now, which is similar to India. Also, the economic situation in Latin America is poor. In Africa, the rates are low barring few countries with natural resources where foreigners, especially the Chinese have recently invested. &nbsp;Scholars of political economy invoked theories about nature of political settlements in Bangladesh and open deal and close deal legacy to explain the economic growth.

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<h5>Export-oriented industries like readymade garments, leather products, processed food, ship building etc alongside the public spending in power, infrastructure and services have been the drivers of the growth in Bangladesh</h5>
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Export-oriented industries like readymade garments, leather products, processed food, ship building etc alongside the public spending in power, infrastructure and services have been the drivers of the growth in Bangladesh. &nbsp;In addition to the impressive economic growth rate, inflation has been under control and the country maintained a healthy forex reserve, thanks to the earnings of foreign exchange through exports and remittance inflow for the sizable worldwide Bangladeshi diaspora. 
&nbsp; 
However, in the&nbsp;key area of domestic private investment, Bangladesh is lagging considerably which is also indicative of the quality of governance. The domestic capital formation seems good due to the expanding middle-class and the banks now have surplus liquidity. But, the number of takers are few despite the fact that borrowing rates have come down considerably. Native investors appear reluctant to borrow and invest. Hence, the growth potential is not being fulfilled.

Ideally, Bangladesh, with massive cheap labour, &nbsp;should have been in a double-digit growth situation as China of two decades back. The difference is, in China&rsquo;s case, the native investors were in action after the initial boost by Special Economic Zones. However, despite the reasonable success of similar Exclusive Economic Zone, the next stage involving native investors isn&#39;t happening in Bangladesh. Hence, the further growth potential is being wasted, and the high numbers of 15-20 million addition to the labour force every year, due to high population growth, can&rsquo;t be absorbed properly in the employment market as it should have been. 
&nbsp; 
The prime reasons for the lack of domestic investment are largely related to the bad state of governance in many areas and corruption. About 2000 new factories in Bangladesh are awaiting proper power connection to start or go for full capacity production. Unpredictability about the supply of required gas and electricity is deterring many other potential native investors to build industries. &nbsp;Leverage offered by cheap labour is being negated by structural deficiency. 
&nbsp; 
The Awami League government demonstrated some success in the power sector during&nbsp;its first term. But the momentum seems lost in the second. The other side of bad governance is bureaucratic red tape. Despite the matter being highlighted by the business community, ordinary citizens, media and the civil society nothing much has been done. Public servants continue to cause public sufferings. Coupled by the power crisis, the practices&nbsp;of bribing officials and rent seeking by politically affiliated lobbies (either as pure nuisance or getting a permission or sanction done) have increased the investment cost of domestic investors so much that they are unsure of the recovery of their money. The investors are not even sure&nbsp;whether&nbsp;they will be able to pay the loans back to the lending bank. Many of the foreign investors are less affected by the situation as they get some priorities in the EPZs with regards to power connections and other infrastructural facilities.

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<h5>The condition in Bangladesh now isn&rsquo;t ideal for freedom of expression or even universal features of civil liberty due to complex causal relations in its recent socio-political history.</h5>
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Another related issue is a broader one; which is of accountability. The condition in Bangladesh now isn&rsquo;t ideal for freedom of expression or even universal features of civil liberty. Due to complex causal relations in its recent socio-political history, Bangladesh has ended up in such state. The main political opposition in Bangladesh is also quite controversial and now being suppressed by the government&nbsp;and the ruling party machinery. The last general election was a one-sided story as the main opposition boycotted it. No one knows what will happen to the next election in 2019. The political office bearers and bureaucracy don&rsquo;t look to be sufficiently answerable to the people or the civil society.

The leaders from all camps of Bangladesh badly need to reach some workable understanding and find a way out of this quagmire created by untenable governance and lack of accountability. Only then the full economic potential of the country will come to fruition.

(WION)

Coupled by the power crisis, the practices?of bribing have increased the investment cost of domestic investors. They are unsure of the recovery of their money.

A few years back The World Bank coined the phrase ‘Bangladesh Paradox’ with regards to Bangladesh’s steady economic growth despite the absence of good governance. And a lack of credible electoral democracy has been added to it since 2013. Political economists were baffled by the average 6-7 per cent annual growth of Bangladesh's economy in the past few years. Even in last two decades, the growth rate average of Bangladesh was around 6 and never went below 5 which is quite good considering the faltering of south-east Asia in the turn of the century and the economic slump of 2008-09 in the west. The growth rate is one of the highest few in the world. The saturated economies of the developed countries have very low growth. Also, the growth rate in the middle-income countries has slowed down for various reasons. China has maintained a spectacular double-digit growth rate for the last couple of decades and became the driver of the world’s economic growth. But, it has come down to 6-7 per cent now, which is similar to India. Also, the economic situation in Latin America is poor. In Africa, the rates are low barring few countries with natural resources where foreigners, especially the Chinese have recently invested. Scholars of political economy invoked theories about nature of political settlements in Bangladesh and open deal and close deal legacy to explain the economic growth. Export-oriented industries like readymade garments, leather products, processed food, ship building etc alongside the public spending in power, infrastructure and services have been the drivers of the growth in Bangladesh × Export-oriented industries like readymade garments, leather products, processed food, ship building etc alongside the public spending in power, infrastructure and services have been the drivers of the growth in Bangladesh. In addition to the impressive economic growth rate, inflation has been under control and the country maintained a healthy forex reserve, thanks to the earnings of foreign exchange through exports and remittance inflow for the sizable worldwide Bangladeshi diaspora. However, in the key area of domestic private investment, Bangladesh is lagging considerably which is also indicative of the quality of governance. The domestic capital formation seems good due to the expanding middle-class and the banks now have surplus liquidity. But, the number of takers are few despite the fact that borrowing rates have come down considerably. Native investors appear reluctant to borrow and invest. Hence, the growth potential is not being fulfilled. Ideally, Bangladesh, with massive cheap labour, should have been in a double-digit growth situation as China of two decades back. The difference is, in China’s case, the native investors were in action after the initial boost by Special Economic Zones. However, despite the reasonable success of similar Exclusive Economic Zone, the next stage involving native investors isn't happening in Bangladesh. Hence, the further growth potential is being wasted, and the high numbers of 15-20 million addition to the labour force every year, due to high population growth, can’t be absorbed properly in the employment market as it should have been. The prime reasons for the lack of domestic investment are largely related to the bad state of governance in many areas and corruption. About 2000 new factories in Bangladesh are awaiting proper power connection to start or go for full capacity production. Unpredictability about the supply of required gas and electricity is deterring many other potential native investors to build industries. Leverage offered by cheap labour is being negated by structural deficiency. The Awami League government demonstrated some success in the power sector during its first term. But the momentum seems lost in the second. The other side of bad governance is bureaucratic red tape. Despite the matter being highlighted by the business community, ordinary citizens, media and the civil society nothing much has been done. Public servants continue to cause public sufferings. Coupled by the power crisis, the practices of bribing officials and rent seeking by politically affiliated lobbies (either as pure nuisance or getting a permission or sanction done) have increased the investment cost of domestic investors so much that they are unsure of the recovery of their money. The investors are not even sure whether they will be able to pay the loans back to the lending bank. Many of the foreign investors are less affected by the situation as they get some priorities in the EPZs with regards to power connections and other infrastructural facilities. The condition in Bangladesh now isn’t ideal for freedom of expression or even universal features of civil liberty due to complex causal relations in its recent socio-political history. × Another related issue is a broader one; which is of accountability. The condition in Bangladesh now isn’t ideal for freedom of expression or even universal features of civil liberty. Due to complex causal relations in its recent socio-political history, Bangladesh has ended up in such state. The main political opposition in Bangladesh is also quite controversial and now being suppressed by the government and the ruling party machinery. The last general election was a one-sided story as the main opposition boycotted it. No one knows what will happen to the next election in 2019. The political office bearers and bureaucracy don’t look to be sufficiently answerable to the people or the civil society. The leaders from all camps of Bangladesh badly need to reach some workable understanding and find a way out of this quagmire created by untenable governance and lack of accountability. Only then the full economic potential of the country will come to fruition. (WION)

Absence of good governance is discouraging investment in Bangladesh

Three men who have fathered nearly 100 children among them are doing their bit for Pakistan&#39;s skyrocketing population, which is being counted for the first time in 19 years.&nbsp;

But in a country where experts warn the surging populace is gouging into hard-won economic gains and social services, the three patriarchs are unconcerned. Allah, they say, will provide.

Pakistan has the highest birth rate in South Asia at around three children per woman, according to the World Bank and government figures, and the census is expected to show that growth remains high.

&quot;God has created the entire universe and all human beings, so why should I stop the natural process of a baby&#39;s birth?&quot; asks Gulzar Khan, a father of 36, citing one of the strongest influences in the region: the belief that Islam prevents family planning. &nbsp;

Tribal enmity is another factor in the north-west, where the 57-year-old lives in the city of Bannu with his third wife, who is pregnant.

&quot;We wanted to be stronger,&quot; the 57-year-old tells AFP, surrounded by 23 of his offspring -- so many, he observes, they don&#39;t need friends to play a full cricket match.&nbsp;

Polygamy is legal but rare in Pakistan, and families like Khan&#39;s are not the norm, though the beliefs he holds are widespread.

The last census, held in 1998, showed Pakistan had a population of up to 135 million. Estimates suggest the new census -- carried out earlier this year, with the preliminary results due by the end of July -- will put the figure closer to 200 million.&nbsp;

The economy is expanding faster than it has in a decade, and last month Islamabad hiked its development budget by 40 percent.&nbsp;

But observers have warned the population boom is negating any progress, using up valuable resources in a young country where jobs are scarce and nearly 60 million people live below the poverty line.&nbsp;

&quot;It definitely is a problem because it is affecting health outcomes adversely and also eating into development gains,&quot; says Zeba A. Sathar, country director for the UN population council.&nbsp;

Sathar predicted the census would show growth has slowed due to lower fertility rates, though she added it would remain among the highest rates in the region.

&quot;There has to be a clear enunciation of need to slow growth as a positive policy lever,&quot; she said. &quot;And then next a good, effective health system that provides information and services of quality.&quot;&nbsp;

&#39;God will provide&#39;

Khan&#39;s brother, Mastan Khan Wazir -- one of his 15 siblings -- also has three wives. So far, Wazir has only fathered 22 children but, like his brother, he says his grandchildren are too numerous to count.&nbsp;

The 70-year-old, with his bushy moustaches and bejewelled fingers, is a minor celebrity in North Waziristan tribal district, where his blinged out jeep -- done in the style of Pakistan&#39;s famous &quot;jingle trucks&quot;, with Pashto music pouring from the stereo -- is a familiar sight.&nbsp;

&quot;God has promised that he will provide food and resources but people have weak faith,&quot; he tells AFP, wearing a traditional Waziristani turban.&nbsp;

In the southwestern city of Quetta in Balochistan province, Jan Mohammed -- the father of 38 children -- agrees, despite having previously called on the government to provide resources for his family.

Jan spoke with AFP in 2016 to voice his desire for a fourth wife as he continues his mission of having 100 children. No woman has yet agreed, he says, but he has not given up.&nbsp;

&quot;The more Muslims grow, the more their enemies will fear them... Muslims should go for more and more children,&quot; he said.

Empowering women&nbsp;

Denied their husbands&#39; permission to speak, none of the three men&#39;s wives could give their views on family planning in Islam.

But there is already &quot;abundant&quot; awareness in Pakistan about the need for birth spacing, or allowing a woman&#39;s body to rest for at least 18 months between pregnancies, Sathar said.

&quot;The need is for clear information about the methods available, how they work, their possible side effects and where to get them. That is missing,&quot; she added.

Giving women more of a choice in the matter could help, argues Aisha Sarwari, a feminist activist who has previously written on population and women&#39;s rights.

&quot;Access to birth control for women can be a game changer,&quot; she told AFP. &quot;Ultimately the impact is that there are more resources to go around ... Empowered women have fewer children, and this creates a mindset that leads to prosperity within families that is likely to be emulated across communities.&quot;

Khan, at least, admitted there could be some benefits to slowing down.

For one thing, tribal enmity in the north-west has decreased in recent years, he said. &quot;Now, with the grace of God, the situation has changed -- war and fighting is finished -- so, now, a decrease in the population would not be bad.&quot;

It would also free him up for other leisure activities, he says, adding wistfully: &quot;If one had fewer children, one would have more time to make love with his wives.&quot;

(AFP)

Experts warn the surging populace is gouging into hard-won economic gains and social services

Three men who have fathered nearly 100 children among them are doing their bit for Pakistan's skyrocketing population, which is being counted for the first time in 19 years. But in a country where experts warn the surging populace is gouging into hard-won economic gains and social services, the three patriarchs are unconcerned. Allah, they say, will provide. Pakistan has the highest birth rate in South Asia at around three children per woman, according to the World Bank and government figures, and the census is expected to show that growth remains high. "God has created the entire universe and all human beings, so why should I stop the natural process of a baby's birth?" asks Gulzar Khan, a father of 36, citing one of the strongest influences in the region: the belief that Islam prevents family planning. Tribal enmity is another factor in the north-west, where the 57-year-old lives in the city of Bannu with his third wife, who is pregnant. "We wanted to be stronger," the 57-year-old tells AFP, surrounded by 23 of his offspring -- so many, he observes, they don't need friends to play a full cricket match. Polygamy is legal but rare in Pakistan, and families like Khan's are not the norm, though the beliefs he holds are widespread. The last census, held in 1998, showed Pakistan had a population of up to 135 million. Estimates suggest the new census -- carried out earlier this year, with the preliminary results due by the end of July -- will put the figure closer to 200 million. The economy is expanding faster than it has in a decade, and last month Islamabad hiked its development budget by 40 percent. But observers have warned the population boom is negating any progress, using up valuable resources in a young country where jobs are scarce and nearly 60 million people live below the poverty line. "It definitely is a problem because it is affecting health outcomes adversely and also eating into development gains," says Zeba A. Sathar, country director for the UN population council. Sathar predicted the census would show growth has slowed due to lower fertility rates, though she added it would remain among the highest rates in the region. "There has to be a clear enunciation of need to slow growth as a positive policy lever," she said. "And then next a good, effective health system that provides information and services of quality." 'God will provide' Khan's brother, Mastan Khan Wazir -- one of his 15 siblings -- also has three wives. So far, Wazir has only fathered 22 children but, like his brother, he says his grandchildren are too numerous to count. The 70-year-old, with his bushy moustaches and bejewelled fingers, is a minor celebrity in North Waziristan tribal district, where his blinged out jeep -- done in the style of Pakistan's famous "jingle trucks", with Pashto music pouring from the stereo -- is a familiar sight. "God has promised that he will provide food and resources but people have weak faith," he tells AFP, wearing a traditional Waziristani turban. In the southwestern city of Quetta in Balochistan province, Jan Mohammed -- the father of 38 children -- agrees, despite having previously called on the government to provide resources for his family. Jan spoke with AFP in 2016 to voice his desire for a fourth wife as he continues his mission of having 100 children. No woman has yet agreed, he says, but he has not given up. "The more Muslims grow, the more their enemies will fear them... Muslims should go for more and more children," he said. Empowering women Denied their husbands' permission to speak, none of the three men's wives could give their views on family planning in Islam. But there is already "abundant" awareness in Pakistan about the need for birth spacing, or allowing a woman's body to rest for at least 18 months between pregnancies, Sathar said. "The need is for clear information about the methods available, how they work, their possible side effects and where to get them. That is missing," she added. Giving women more of a choice in the matter could help, argues Aisha Sarwari, a feminist activist who has previously written on population and women's rights. "Access to birth control for women can be a game changer," she told AFP. "Ultimately the impact is that there are more resources to go around ... Empowered women have fewer children, and this creates a mindset that leads to prosperity within families that is likely to be emulated across communities." Khan, at least, admitted there could be some benefits to slowing down. For one thing, tribal enmity in the north-west has decreased in recent years, he said. "Now, with the grace of God, the situation has changed -- war and fighting is finished -- so, now, a decrease in the population would not be bad." It would also free him up for other leisure activities, he says, adding wistfully: "If one had fewer children, one would have more time to make love with his wives." (AFP)

Three men, 96 children: Pakistan's population boom threatens economic gains

President Trump is expected to pull out of the Paris climate change accord later on Thursday (read WION&#39;s <a href="http://www.wionews.com/world/trump-to-announce-paris-climate-deal-decision-thursday-16284">report here</a>.) He has recently even made noises about withdrawing from the <a href="https://www.theatlantic.com/politics/archive/2017/04/trump-nafta-withdrawal-order/524463/">North American Free Trade Agreement</a> and cutting funding for the <a href="http://www.reuters.com/article/us-g20-imf-worldbank-idUSKBN17L313">World Bank</a> and <a href="https://www.wionews.com/world/nato-allies-not-spending-enough-to-shore-up-defences-trump-16049">NATO</a> military alliance.

So we ask the question, what else could Trump pull the US out of? How else will Trump&#39;s <a href="http://www.huffingtonpost.com/daniel-wagner/trump-and-the-coming-deat_b_12915974.html">hostility to multilateralism</a> manifest itself

Here&#39;s a graphic looking at major international organisations and treaties and how long the US has been associated with them.

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The thing to keep in mind is that there are several treaties such as the <a href="https://www.brookings.edu/blog/order-from-chaos/2016/09/26/whats-the-deal-with-senate-republicans-and-the-test-ban-treaty/">Comprehensive Nuclear Test Ban Treaty</a>, the Ottawa Treaty (banning mines) and organisations such as the <a href="http://www.politifact.com/truth-o-meter/statements/2014/apr/24/chain-email/chain-email-says-barack-obama-wants-us-joint-inter/">International Criminal Court</a> that the US is not a part of.

So this&nbsp;unilateral route that Trump is taking is nothing new. Sadly, it&#39;s a road the US has been on for some time now.

President Trump could pull the US out of the Paris climate deal later today. So what does Trump have his eyes on next?

President Trump is expected to pull out of the Paris climate change accord later on Thursday (read WION's report here.) He has recently even made noises about withdrawing from the North American Free Trade Agreement and cutting funding for the World Bank and NATO military alliance. So we ask the question, what else could Trump pull the US out of? How else will Trump's hostility to multilateralism manifest itself Here's a graphic looking at major international organisations and treaties and how long the US has been associated with them. The thing to keep in mind is that there are several treaties such as the Comprehensive Nuclear Test Ban Treaty, the Ottawa Treaty (banning mines) and organisations such as the International Criminal Court that the US is not a part of. So this unilateral route that Trump is taking is nothing new. Sadly, it's a road the US has been on for some time now.

Infographic: After Paris climate accord, will Trump pull out of NATO?

The World Bank has approved a loan of USD 375 million (around Rs 2,421 crore) for the ambitious inland waterways project between Haldia in West Bengal and Varanasi in Uttar Pradesh.

An official statement said that the World Bank has approved the loan of USD 375 million for capacity augmentation of National Waterway-1 (River Ganga) under the Jal Marg Vikas Project (JMVP).

The loan amount is about 45 per cent of the estimated project cost of Rs 5,369 crore.

The 1,390 kilometre waterway project of the shipping ministry would enable commercial navigation of vessels with capacity of 1,500-2,000 deadweight tonnage (DWT).

The waterway will pass through Uttar Pradesh, Bihar, Jharkhand and West Bengal, serving major cities of Allahabad, Varanasi, Ghazipur, Bhagalpur, Patna, Howrah, Haldia and Kolkata besides the industrial hinterland including several industries located in the Ganga basin.

&quot;The rail and road corridors in this region are heavily saturated. Hence, the development of NW-1 would provide an alternative, viable, economical, efficient and eco-friendly mode of transport,&quot; the statement said.

NW-1 will have three multi-modal terminals, one each at Varanasi, Sahibganj (Jharkhand), and Haldia.

There will be two inter-modal terminals at Kalughat and Ghazipur, a navigation lock at Farakka and five Roll on-Roll off (Ro-Ro) terminals.

Ferry services will be developed at Varanasi, Patna, Bhagalpur, Munger, Kolkata and Haldia besides vessel repair and maintenance facilities.

The project will enable the Inland Waterways Authority of India (IWAI) to set-up River Information Service (RIS) System on NW -1 for the first time in India.

(PTI) 
&nbsp;

The loan amount is about 45 per cent of the estimated project cost of Rs 5,369 crore

The World Bank has approved a loan of USD 375 million (around Rs 2,421 crore) for the ambitious inland waterways project between Haldia in West Bengal and Varanasi in Uttar Pradesh. An official statement said that the World Bank has approved the loan of USD 375 million for capacity augmentation of National Waterway-1 (River Ganga) under the Jal Marg Vikas Project (JMVP). The loan amount is about 45 per cent of the estimated project cost of Rs 5,369 crore. The 1,390 kilometre waterway project of the shipping ministry would enable commercial navigation of vessels with capacity of 1,500-2,000 deadweight tonnage (DWT). The waterway will pass through Uttar Pradesh, Bihar, Jharkhand and West Bengal, serving major cities of Allahabad, Varanasi, Ghazipur, Bhagalpur, Patna, Howrah, Haldia and Kolkata besides the industrial hinterland including several industries located in the Ganga basin. "The rail and road corridors in this region are heavily saturated. Hence, the development of NW-1 would provide an alternative, viable, economical, efficient and eco-friendly mode of transport," the statement said. NW-1 will have three multi-modal terminals, one each at Varanasi, Sahibganj (Jharkhand), and Haldia. There will be two inter-modal terminals at Kalughat and Ghazipur, a navigation lock at Farakka and five Roll on-Roll off (Ro-Ro) terminals. Ferry services will be developed at Varanasi, Patna, Bhagalpur, Munger, Kolkata and Haldia besides vessel repair and maintenance facilities. The project will enable the Inland Waterways Authority of India (IWAI) to set-up River Information Service (RIS) System on NW -1 for the first time in India. (PTI)

World Bank approves $375 million loan for India's ambitious inland waterway project

The IMF has cut India&#39;s growth rate for the current fiscal year to 6.6 per cent from its previous estimate of 7.6 per cent due to the &quot;temporary negative consumption shock&quot; of demonetisation, days after the World Bank also decelerated India&#39;s growth estimates.

&quot;In India, the growth forecast for the current (2016-17) and next fiscal year were trimmed by one percentage point and 0.4 percentage point, respectively, primarily due to the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative,&quot; the International Monetary Fund (IMF) said in its latest World Economic Outlook (WEO) update released today.

Despite IMF&#39;s downward revision of India&#39;s growth rate and a slight upward revision of China&#39;s growth projections, India continues to be the fastest-growing country among emerging economies. In 2016, China with 6.7 per cent edged past India (6.6) by 0.1 percentage point. In 2018, China&#39;s growth rate is projected to be 6 per cent against India&#39;s 7.7 per cent.

The growth forecast for 2017 was revised up for China (to 6.5 per cent, 0.3 percentage point above the October forecast) on expectations of continued policy support, the IMF said. India&#39;s growth rate in 2017 as per the latest IMG projections is 7.2 per cent.

The IMF said that after a lacklustre out turn in 2016, economic activity is projected to pick up pace in 2017 and 2018, especially in emerging market and developing economies. In 2018, China&#39;s growth rate is projected to be 6 per cent against India&#39;s 7.7 per cent.

The global growth for 2016 is now estimated at 3.1 per cent, in line with the October 2016 forecast. Economic activity in both advanced economies and emerging market and developing economies (EMDEs) is forecast to accelerate in 2017-18, with global growth projected to be 3.4 per cent and 3.6 per cent, respectively, again unchanged from the October forecasts, it said. As per new IMF projections, India&#39;s growth in 2016 is now estimated to be 6.6 per cent as against 7.6 per cent earlier forecast.

In 2017, IMF has projected a growth rate of 7.2 per cent as against its previous forecast of 7.6 per cent.The Indian economy is likely to revive to go back to its previously estimated growth rate of 7.7 per cent in 2018, according to the WEO update.

The cut in India&#39;s growth rates comes days after the World Bank decelerated India&#39;s GDP growth for 2016-17 fiscal to 7 per cent from its previous estimate of 7.6 per cent citing the impact of demonetisation. But forecast issued on January 11 said that India would regain momentum in the following years with a growth of 7.6 per cent and 7.8 per cent due to a reform initiatives.

(PTI)

The reason given was the 'temporary negative consumption shock' of demonetisation

The IMF has cut India's growth rate for the current fiscal year to 6.6 per cent from its previous estimate of 7.6 per cent due to the "temporary negative consumption shock" of demonetisation, days after the World Bank also decelerated India's growth estimates. "In India, the growth forecast for the current (2016-17) and next fiscal year were trimmed by one percentage point and 0.4 percentage point, respectively, primarily due to the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative," the International Monetary Fund (IMF) said in its latest World Economic Outlook (WEO) update released today. Despite IMF's downward revision of India's growth rate and a slight upward revision of China's growth projections, India continues to be the fastest-growing country among emerging economies. In 2016, China with 6.7 per cent edged past India (6.6) by 0.1 percentage point. In 2018, China's growth rate is projected to be 6 per cent against India's 7.7 per cent. The growth forecast for 2017 was revised up for China (to 6.5 per cent, 0.3 percentage point above the October forecast) on expectations of continued policy support, the IMF said. India's growth rate in 2017 as per the latest IMG projections is 7.2 per cent. The IMF said that after a lacklustre out turn in 2016, economic activity is projected to pick up pace in 2017 and 2018, especially in emerging market and developing economies. In 2018, China's growth rate is projected to be 6 per cent against India's 7.7 per cent. The global growth for 2016 is now estimated at 3.1 per cent, in line with the October 2016 forecast. Economic activity in both advanced economies and emerging market and developing economies (EMDEs) is forecast to accelerate in 2017-18, with global growth projected to be 3.4 per cent and 3.6 per cent, respectively, again unchanged from the October forecasts, it said. As per new IMF projections, India's growth in 2016 is now estimated to be 6.6 per cent as against 7.6 per cent earlier forecast. In 2017, IMF has projected a growth rate of 7.2 per cent as against its previous forecast of 7.6 per cent.The Indian economy is likely to revive to go back to its previously estimated growth rate of 7.7 per cent in 2018, according to the WEO update. The cut in India's growth rates comes days after the World Bank decelerated India's GDP growth for 2016-17 fiscal to 7 per cent from its previous estimate of 7.6 per cent citing the impact of demonetisation. But forecast issued on January 11 said that India would regain momentum in the following years with a growth of 7.6 per cent and 7.8 per cent due to a reform initiatives. (PTI)

Demonetisation: IMF cuts India's growth forecast from 7.6 to 6.6%

The World Bank has pared back its global growth estimate for 2017, but uncertainty about the economic policies of US President-elect Donald Trump is clouding the outlook.

&quot;We need to pay attention. All eyes are on US policymakers and how they will formulate their policies,&quot; Ayhan Kose, main author of the World Bank&#39;s global forecast, said.

&quot;What happens in the United States does not stay in the United States.&quot;&nbsp;In the semi-annual Global Economic Prospects report, the World Bank lowered the estimate for global growth this year a tenth from the June forecast, to 2.7 per cent compared to the 2.3 per cent growth seen last year.&nbsp;The World Bank maintained its US forecast at 2.2 per cent following a sluggish 1.6 per cent in 2016.&nbsp;But those estimates could go much higher.&nbsp;

Even the table in the report displaying the forecasts for the major regions and economies comes with a footnote warning about the uncertainty: &quot;The US forecasts do not incorporate the effect of policy proposals by the new US administration, as their overall scope and ultimate form are still uncertain.&quot;&nbsp;Kose said it is simply too soon to draw any conclusions, however a simulation showed the individual and corporate tax cuts that Trump discussed during the campaign could on their own add three-tenths to the US growth rate this year, and more than double that in 2018.&nbsp;And infrastructure spending could have an even larger impact.

&quot;These are significant increases,&quot; he said.&nbsp;&quot;A healthy US economy is good for the rest of the world&nbsp;since an increase in US growth of one full percentage point could boost advanced economies by eight-tenths after a year, and emerging markets by six-tenths,&quot; he added.

So global growth potentially could rise another tenth this year to 2.8 per cent, and get a three-tenths boost in 2018, he said. However, he was quick to stress the caveats to this estimated impact: It will depend on the timing of the tax cuts, how they impact inflation, and how the Federal Reserve reacts.

The same is true for other proposals like big spending on infrastructure, which would have a more direct impact on growth, but could exacerbate an already tight labor market, which also could fuel inflation.&nbsp;The US central bank has cautioned that spending that fuels inflation could require more and faster increases in the benchmark lending rate.&nbsp;Higher interest rates in turn would tend to slow economic growth.

Kose said the rising threat of protectionism in advanced economies also remains a concern, and that uncertainty &quot;is a challenge to businesses in the US and abroad&quot;.

But again he said, it is too early to tell what the impact on global growth will be until the specifics are known -&nbsp;for example, whether US tariff increases Trump has threatened are limited to one product, like automobiles, or extend to an entire country.

&quot;One thing we know well, open trade policies help promote economic growth,&quot; Kose said, in the closest he came in the interview to a word of caution to the new administration. After a pretty bad year in 2016, Kose said the world economy is poised for a recovery, especially with major commodity exporters returning to growth after recessions, including Russia, Brazil and Argentina.&nbsp;The euro area is expected to grow 1.5 per cent this year -- the same as in the June forecast -- and 1.4 per cent in 2018, after 1.6 per cent GDP last year.

Japan&#39;s growth is forecast at 0.9 per cent and 0.8 per cent for 2017 and 2018, which is a half-point better than the June estimate.&nbsp;The China forecasts are unchanged, with growth expected to slow to 6.5 per cent this year and 6.3 per cent next, which Kose called &quot;a healthy slowdown&quot;.

&quot;They have done a real competent job so far slowing down the economy&quot; from double-digit rates. Kose said the most worrisome thing about the global outlook is the continued drop off in investment.

&quot;The single most important issue we are focusing on in this report is the persistent investment weakness in emerging and developing economies,&quot; he said. &quot;The issue is critical.&quot;&nbsp;Investment expanded 10 per cent in 2010, but has slowed steadily growing just 3.5 per cent in 2016.

(AFP)

The World Bank said uncertainty about the economic policies of US President-elect Donald Trump is clouding the outlook

The World Bank has pared back its global growth estimate for 2017, but uncertainty about the economic policies of US President-elect Donald Trump is clouding the outlook. "We need to pay attention. All eyes are on US policymakers and how they will formulate their policies," Ayhan Kose, main author of the World Bank's global forecast, said. "What happens in the United States does not stay in the United States." In the semi-annual Global Economic Prospects report, the World Bank lowered the estimate for global growth this year a tenth from the June forecast, to 2.7 per cent compared to the 2.3 per cent growth seen last year. The World Bank maintained its US forecast at 2.2 per cent following a sluggish 1.6 per cent in 2016. But those estimates could go much higher. Even the table in the report displaying the forecasts for the major regions and economies comes with a footnote warning about the uncertainty: "The US forecasts do not incorporate the effect of policy proposals by the new US administration, as their overall scope and ultimate form are still uncertain." Kose said it is simply too soon to draw any conclusions, however a simulation showed the individual and corporate tax cuts that Trump discussed during the campaign could on their own add three-tenths to the US growth rate this year, and more than double that in 2018. And infrastructure spending could have an even larger impact. "These are significant increases," he said. "A healthy US economy is good for the rest of the world since an increase in US growth of one full percentage point could boost advanced economies by eight-tenths after a year, and emerging markets by six-tenths," he added. So global growth potentially could rise another tenth this year to 2.8 per cent, and get a three-tenths boost in 2018, he said. However, he was quick to stress the caveats to this estimated impact: It will depend on the timing of the tax cuts, how they impact inflation, and how the Federal Reserve reacts. The same is true for other proposals like big spending on infrastructure, which would have a more direct impact on growth, but could exacerbate an already tight labor market, which also could fuel inflation. The US central bank has cautioned that spending that fuels inflation could require more and faster increases in the benchmark lending rate. Higher interest rates in turn would tend to slow economic growth. Kose said the rising threat of protectionism in advanced economies also remains a concern, and that uncertainty "is a challenge to businesses in the US and abroad". But again he said, it is too early to tell what the impact on global growth will be until the specifics are known - for example, whether US tariff increases Trump has threatened are limited to one product, like automobiles, or extend to an entire country. "One thing we know well, open trade policies help promote economic growth," Kose said, in the closest he came in the interview to a word of caution to the new administration. After a pretty bad year in 2016, Kose said the world economy is poised for a recovery, especially with major commodity exporters returning to growth after recessions, including Russia, Brazil and Argentina. The euro area is expected to grow 1.5 per cent this year -- the same as in the June forecast -- and 1.4 per cent in 2018, after 1.6 per cent GDP last year. Japan's growth is forecast at 0.9 per cent and 0.8 per cent for 2017 and 2018, which is a half-point better than the June estimate. The China forecasts are unchanged, with growth expected to slow to 6.5 per cent this year and 6.3 per cent next, which Kose called "a healthy slowdown". "They have done a real competent job so far slowing down the economy" from double-digit rates. Kose said the most worrisome thing about the global outlook is the continued drop off in investment. "The single most important issue we are focusing on in this report is the persistent investment weakness in emerging and developing economies," he said. "The issue is critical." Investment expanded 10 per cent in 2010, but has slowed steadily growing just 3.5 per cent in 2016. (AFP)

World Bank lowers global growth estimate

In a significant development, the World Bank has paused the separate processes initiated by India and Pakistan under the Indus Waters Treaty to allow the two countries to consider alternative ways to resolve their disagreements.

&quot;We are announcing this pause to protect the Indus Waters Treaty and to help India and Pakistan consider alternative approaches to resolving conflicting interests under the Treaty and its application to two hydroelectric power plants,&quot; World Bank Group president Jim Yong Kim said.

The pause was announced by Kim in letters to the finance ministers of India and Pakistan. It was also emphasised that the Bank was acting to safeguard the Treaty.

Pausing the process, for now, the Bank would hold off from appointing the Chairman for the Court of Arbitration or the Neutral Expert, appointments that had been expected on December 12 as earlier communicated by the Bank.

India had taken strong exception last month to the World Bank&#39;s decision to set up a Court of Arbitration and appoint a Neutral Expert to go into Pakistan&#39;s complaint against it over Kishenganga and Ratle hydroelectric projects in Jammu and Kashmir.

Surprised at the World Bank&#39;s decision to appoint a Neutral Expert, as sought by the Indian government and at the same time establish a Court of Arbitration as wanted by Pakistan, India had said proceeding with both the steps simultaneously was &quot;legally untenable&quot;.

Both processes initiated by the respective countries were advancing at the same time, creating a risk of contradictory outcomes that could potentially endanger the Treaty, the Bank noted.

&quot;This is an opportunity for the two countries to begin to resolve the issue in an amicable manner and in line with the spirit of the treaty rather than pursuing concurrent processes that could make the treaty unworkable over time. I would hope that the two countries will come to an agreement by the end of January,&quot; Kim said.

The current processes under the treaty concern the Kishenganga (330 megawatts) and Ratle (850 megawatts) hydroelectric power plants. The power plants are being built by India on, respectively, the Kishenganga and Chenab Rivers.

Neither of the two plants are being financed by the World Bank.

The bank said the Indus Waters Treaty, 1960, is seen as one of the most successful international treaties and has withstood frequent tensions between India and Pakistan, including conflict.

In September, the World Bank, which had mediated the Indus Water Treaty, had said it was approached by India and Pakistan and it is &quot;responding in its limited, procedural role as set out in the treaty&quot;.

&quot;India and Pakistan have informed the World Bank that each has initiated proceedings pursuant to the Indus Waters Treaty 1960 and the World Bank Group is responding in its limited, procedural role as set out in the Treaty,&quot; it had said.

The Treaty sets out a mechanism for cooperation and information exchange between the two countries regarding their use of the rivers, known as the Permanent Indus Commission which includes a commissioner from each of the two countries.

It also sets out a process for resolving so-called &quot;questions&quot;, &quot;differences&quot; and &quot;disputes&quot; that may arise between the parties.

(PTI)

World Bank Group president Jim Yong Kim emphasised that the Bank was acting to safeguard the Treaty

In a significant development, the World Bank has paused the separate processes initiated by India and Pakistan under the Indus Waters Treaty to allow the two countries to consider alternative ways to resolve their disagreements. "We are announcing this pause to protect the Indus Waters Treaty and to help India and Pakistan consider alternative approaches to resolving conflicting interests under the Treaty and its application to two hydroelectric power plants," World Bank Group president Jim Yong Kim said. The pause was announced by Kim in letters to the finance ministers of India and Pakistan. It was also emphasised that the Bank was acting to safeguard the Treaty. Pausing the process, for now, the Bank would hold off from appointing the Chairman for the Court of Arbitration or the Neutral Expert, appointments that had been expected on December 12 as earlier communicated by the Bank. India had taken strong exception last month to the World Bank's decision to set up a Court of Arbitration and appoint a Neutral Expert to go into Pakistan's complaint against it over Kishenganga and Ratle hydroelectric projects in Jammu and Kashmir. Surprised at the World Bank's decision to appoint a Neutral Expert, as sought by the Indian government and at the same time establish a Court of Arbitration as wanted by Pakistan, India had said proceeding with both the steps simultaneously was "legally untenable". Both processes initiated by the respective countries were advancing at the same time, creating a risk of contradictory outcomes that could potentially endanger the Treaty, the Bank noted. "This is an opportunity for the two countries to begin to resolve the issue in an amicable manner and in line with the spirit of the treaty rather than pursuing concurrent processes that could make the treaty unworkable over time. I would hope that the two countries will come to an agreement by the end of January," Kim said. The current processes under the treaty concern the Kishenganga (330 megawatts) and Ratle (850 megawatts) hydroelectric power plants. The power plants are being built by India on, respectively, the Kishenganga and Chenab Rivers. Neither of the two plants are being financed by the World Bank. The bank said the Indus Waters Treaty, 1960, is seen as one of the most successful international treaties and has withstood frequent tensions between India and Pakistan, including conflict. In September, the World Bank, which had mediated the Indus Water Treaty, had said it was approached by India and Pakistan and it is "responding in its limited, procedural role as set out in the treaty". "India and Pakistan have informed the World Bank that each has initiated proceedings pursuant to the Indus Waters Treaty 1960 and the World Bank Group is responding in its limited, procedural role as set out in the Treaty," it had said. The Treaty sets out a mechanism for cooperation and information exchange between the two countries regarding their use of the rivers, known as the Permanent Indus Commission which includes a commissioner from each of the two countries. It also sets out a process for resolving so-called "questions", "differences" and "disputes" that may arise between the parties. (PTI)

World Bank 'pauses' Indus treaty processes of India, Pakistan

The World Bank has appointed its first adviser tasked with promoting the lesbian, gay, bisexual, transgender and intersex (LGBTI) issues in its development work.

The newly-created senior position is part of the bank&#39;s efforts to solidify its commitment to researching and curbing discrimination against LGBTI persons across the 136 countries where it has offices, it said on Thursday.

The initiative by the&nbsp;institution comes at a time when discrimination against LGBTI people is facing increased scrutiny globally.

The bank, which makes loans in developing countries and conducts research, named Clifton Cortez to fill the position. With two decades of experience in development, Cortez most recently managed partnerships for the United Nations program on HIV/AIDS, UNAIDS.

In recent years, the bank&#39;s research has increasingly turned to the economic impact of discrimination on LGBTI persons, the bank said.

This year, the Washington DC-based organisation has been collecting data on the socioeconomic status of LGBTI persons worldwide and launched several research projects on LGBTI discrimination.

&quot;Discrimination against any group is not only morally wrong, it stands in the way of sustained, balanced, and inclusive economic growth,&quot; Jim Yong Kim, the bank&#39;s president, said in a statement. &quot;We need to strengthen our case for economic inclusion [of LGBTI persons].&quot;

The World Bank&#39;s announcement comes a day after the US&nbsp;Agency for International Development (USAID) publicised a new rule barring its foreign aid contractors from discriminating against LGBTI persons in the services it funds.

Last month, the United Nations appointed its first independent investigator to help protect the community worldwide from violence and discrimination.

A UN report last year said hundreds of LGBTI people have been killed and thousands injured in recent years, in violence that included knife attacks, anal rape and genital mutilation.

OutRight Action International, a New York City-based group that advocates for LGBTI rights globally, said the new World Bank position was encouraging.

&quot;Protecting LGBTI people against discrimination has very real positive impacts on economic development,&quot; said Jessica Stern, the group&#39;s executive director.

(Reuters)

&nbsp;

&nbsp;

 
&nbsp;

'Discrimination against any group is not only morally wrong, it stands in the way of sustained, balanced, and inclusive economic growth'

The World Bank has appointed its first adviser tasked with promoting the lesbian, gay, bisexual, transgender and intersex (LGBTI) issues in its development work. The newly-created senior position is part of the bank's efforts to solidify its commitment to researching and curbing discrimination against LGBTI persons across the 136 countries where it has offices, it said on Thursday. The initiative by the institution comes at a time when discrimination against LGBTI people is facing increased scrutiny globally. The bank, which makes loans in developing countries and conducts research, named Clifton Cortez to fill the position. With two decades of experience in development, Cortez most recently managed partnerships for the United Nations program on HIV/AIDS, UNAIDS. In recent years, the bank's research has increasingly turned to the economic impact of discrimination on LGBTI persons, the bank said. This year, the Washington DC-based organisation has been collecting data on the socioeconomic status of LGBTI persons worldwide and launched several research projects on LGBTI discrimination. "Discrimination against any group is not only morally wrong, it stands in the way of sustained, balanced, and inclusive economic growth," Jim Yong Kim, the bank's president, said in a statement. "We need to strengthen our case for economic inclusion [of LGBTI persons]." The World Bank's announcement comes a day after the US Agency for International Development (USAID) publicised a new rule barring its foreign aid contractors from discriminating against LGBTI persons in the services it funds. Last month, the United Nations appointed its first independent investigator to help protect the community worldwide from violence and discrimination. A UN report last year said hundreds of LGBTI people have been killed and thousands injured in recent years, in violence that included knife attacks, anal rape and genital mutilation. OutRight Action International, a New York City-based group that advocates for LGBTI rights globally, said the new World Bank position was encouraging. "Protecting LGBTI people against discrimination has very real positive impacts on economic development," said Jessica Stern, the group's executive director. (Reuters)

World Bank appoints first adviser on LGBTI  issues

Britain&#39;s shock decision to leave the European Union will not be as damaging to developing Asian&nbsp;economies as feared, the World Bank said on Wednesday as it increased its growth forecast for the region this year.&nbsp;Countries in the Mekong region led by Myanmar are projected to expand at the fastest pace in the next three years, the bank said in an updated report on East Asia and the Pacific, though Thailand was projected to be a laggard.

World Bank chief Asia economist Sudhir Shetty said the upgrade for the regional economy came after the group noticed positive early results from the June 23 vote by Britain to leave the EU.&nbsp;&quot;That has translated also into relative stability in terms of exchange rates and in terms of capital flows, so that has been helpful for this region,&quot; he told Asia-based journalists in a video conference from Washington.

Global markets went into freefall immediately after the vote as dealers feared a recession in Britain that could hit the global economy. But since then, world markets have rallied and Britain&#39;s economy is picking up.&nbsp;Shetty said based on the bank&#39;s initial analysis &quot;the bottom line right now is that there&#39;s likely to be very little impact of Brexit&quot; over the short term, as the region is &quot;not very connected&quot; to Britain in terms of trade and financial links.

The region&#39;s developing economies will grow 5.8 per cent this year, the Washington-based institution said, up 0.1 percentage point from its forecast made in April. It also tipped 5.7 per cent growth in 2017 and 2018.

The bank, however, warned a hike in US interest rates, widely expected in December, and a potential sharp slowdown in China could impact its forecast.

Myanmar, which has embraced democracy following decades of military rule, will grow 7.8 per cent this year, 8.4 per cent in 2017 and 8.3 per cent in 2018.&nbsp;Once isolated Myanmar has rapidly transformed itself into one of the world&#39;s fastest growing economies since its once brutal junta handed power to a reformist government in 2010, sparking the lifting of most international sanctions and a flood of foreign investment.

The impoverished nation has boasted average growth rates above eight per cent the past five years.&nbsp;However, while the World Bank report noted stronger-than-expected growth in Thailand during the first half of 2016 it added that &quot;a broad-based and self-sustaining recovery has yet to take hold.&quot; It projected 3.1 per cent expansion for 2016, up from 2.8 per cent last year.

Thailand&#39;s economy has struggled with years of political instability since the military seised power in 2014.

(AFP)

Countries in the Mekong region led by Myanmar are projected to expand at the fastest pace in the next three years, the bank said

Britain's shock decision to leave the European Union will not be as damaging to developing Asian economies as feared, the World Bank said on Wednesday as it increased its growth forecast for the region this year. Countries in the Mekong region led by Myanmar are projected to expand at the fastest pace in the next three years, the bank said in an updated report on East Asia and the Pacific, though Thailand was projected to be a laggard. World Bank chief Asia economist Sudhir Shetty said the upgrade for the regional economy came after the group noticed positive early results from the June 23 vote by Britain to leave the EU. "That has translated also into relative stability in terms of exchange rates and in terms of capital flows, so that has been helpful for this region," he told Asia-based journalists in a video conference from Washington. Global markets went into freefall immediately after the vote as dealers feared a recession in Britain that could hit the global economy. But since then, world markets have rallied and Britain's economy is picking up. Shetty said based on the bank's initial analysis "the bottom line right now is that there's likely to be very little impact of Brexit" over the short term, as the region is "not very connected" to Britain in terms of trade and financial links. The region's developing economies will grow 5.8 per cent this year, the Washington-based institution said, up 0.1 percentage point from its forecast made in April. It also tipped 5.7 per cent growth in 2017 and 2018. The bank, however, warned a hike in US interest rates, widely expected in December, and a potential sharp slowdown in China could impact its forecast. Myanmar, which has embraced democracy following decades of military rule, will grow 7.8 per cent this year, 8.4 per cent in 2017 and 8.3 per cent in 2018. Once isolated Myanmar has rapidly transformed itself into one of the world's fastest growing economies since its once brutal junta handed power to a reformist government in 2010, sparking the lifting of most international sanctions and a flood of foreign investment. The impoverished nation has boasted average growth rates above eight per cent the past five years. However, while the World Bank report noted stronger-than-expected growth in Thailand during the first half of 2016 it added that "a broad-based and self-sustaining recovery has yet to take hold." It projected 3.1 per cent expansion for 2016, up from 2.8 per cent last year. Thailand's economy has struggled with years of political instability since the military seised power in 2014. (AFP)

World Bank predicts Brexit won't impact developing Asian economies as feared

&nbsp;

The World Bank is indirectly financing a boom in some of Asia&#39;s dirtiest coal-fired power generation despite commitments to end most funding for the sector, a development advocacy group charged Monday.

The power plants, which contribute to climate change and deforestation as well as premature deaths due to illness, are cropping up from Bangladesh to the Philippines, all with financing provided by financial intermediaries supported by the Bank, said a report produced by the organisation Inclusive Development International.

In a policy shift in 2013, the Bank said it would end virtually all support for the creation of coal-burning power plants, supporting them only in &quot;rare circumstances&quot; where there are no viable alternatives.

However, since that pledge, 41 coal projects have received funding from banks and investment funds supported by the World Bank&#39;s private-sector arm, the International Finance Corporation, according to the report.

In response to questions from AFP, Frederick Jones, an IFC spokesman, said the global lender took the report seriously.

&quot;It raises important long-term questions about how we need to create stronger markets for clean energy and create incentives for countries and the private sector not to invest in coal, but rather in renewable energy,&quot; he said.

Jones added that since 2005 the IFC had already invested more than $15 billion in renewable energy, energy efficiency and other areas, and had mobilized $10 billion more.

However, Jones conceded that IFC policy did not prohibit equity clients from funding coal plants, meaning the institution might be indirectly exposed to the industry.

This is despite the fact that IFC loans to financial services industry players are not intended to finance coal-related projects and targeted lending is &quot;ring-fenced&quot; to prevent this, according to Jones.

The report&#39;s release coincided with the start of this week&#39;s high-profile annual meetings of the Bank and the International Monetary Fund, as the world&#39;s finance chiefs gather to discuss efforts at poverty reduction.

Campaigners in recent years have been sharply critical of the IFC&#39;s support for third parties in the financial services sector, such as banks and investment funds, saying they can represent an end-run around environmental and social safeguards that apply to projects directly supported by the IFC.

Financial-sector lending now accounts for 52 per cent of the IFC&#39;s long-term commitments, according to IDI, which jointly produced the report with other advocacy organizations including the Bank Information Center and Accountability Counsel. Founded in 2011, IDI is an advocacy organization focusing on human rights and ethics in development.

&nbsp;Seeking compensation tough&nbsp;

The IFC does not identify the end recipients of financing received by such intermediaries.

That can make it difficult for people harmed by such projects to demand compensation or seek redress, the report said.

However, through an analysis of records, the report identified 56,127 megawatts of new coal capacity funded indirectly by the IFC.

These included the planned 1,360-megawatt Rampal power station in Bangladesh, to be situated on the edge of the sprawling Sundarbans mangrove forest, which is home to endangered species and supports the livelihoods of two million people.

The report said the World Bank itself declined to support the project, which could threaten the Sundarbans with air and water pollution. But six local banks, all IFC-financed, agreed to support the project instead.

The report also cited power construction in the Philippines, where coal burning is estimated to result in almost a thousand premature deaths annually and where more than thirty environmental activists were killed in 2015 alone.

IFC-financed banks have supported at least 20 new coal projects since 2013 in the Philippines.

They include the proposed 540-megawatt Lanao Kauswagan power station, which is expected to begin operations next year and may threaten marine life in nearby Panguil Bay and the livelihoods of fishing communities, Inclusive Development International said.

&quot;While the IFC has tried to distance itself from the projects funded by its intermediaries, the fact is that these banks are brazenly disregarding the IFC&rsquo;s environmental and social requirements,&quot; David Pred, IDI&#39;s managing director, said in a statement.

(AFP)

The bank had said in 2013 that it would not fund any more coal power plants but it has indirectly backed 41 since then

The World Bank is indirectly financing a boom in some of Asia's dirtiest coal-fired power generation despite commitments to end most funding for the sector, a development advocacy group charged Monday. The power plants, which contribute to climate change and deforestation as well as premature deaths due to illness, are cropping up from Bangladesh to the Philippines, all with financing provided by financial intermediaries supported by the Bank, said a report produced by the organisation Inclusive Development International. In a policy shift in 2013, the Bank said it would end virtually all support for the creation of coal-burning power plants, supporting them only in "rare circumstances" where there are no viable alternatives. However, since that pledge, 41 coal projects have received funding from banks and investment funds supported by the World Bank's private-sector arm, the International Finance Corporation, according to the report. In response to questions from AFP, Frederick Jones, an IFC spokesman, said the global lender took the report seriously. "It raises important long-term questions about how we need to create stronger markets for clean energy and create incentives for countries and the private sector not to invest in coal, but rather in renewable energy," he said. Jones added that since 2005 the IFC had already invested more than $15 billion in renewable energy, energy efficiency and other areas, and had mobilized $10 billion more. However, Jones conceded that IFC policy did not prohibit equity clients from funding coal plants, meaning the institution might be indirectly exposed to the industry. This is despite the fact that IFC loans to financial services industry players are not intended to finance coal-related projects and targeted lending is "ring-fenced" to prevent this, according to Jones. The report's release coincided with the start of this week's high-profile annual meetings of the Bank and the International Monetary Fund, as the world's finance chiefs gather to discuss efforts at poverty reduction. Campaigners in recent years have been sharply critical of the IFC's support for third parties in the financial services sector, such as banks and investment funds, saying they can represent an end-run around environmental and social safeguards that apply to projects directly supported by the IFC. Financial-sector lending now accounts for 52 per cent of the IFC's long-term commitments, according to IDI, which jointly produced the report with other advocacy organizations including the Bank Information Center and Accountability Counsel. Founded in 2011, IDI is an advocacy organization focusing on human rights and ethics in development. Seeking compensation tough The IFC does not identify the end recipients of financing received by such intermediaries. That can make it difficult for people harmed by such projects to demand compensation or seek redress, the report said. However, through an analysis of records, the report identified 56,127 megawatts of new coal capacity funded indirectly by the IFC. These included the planned 1,360-megawatt Rampal power station in Bangladesh, to be situated on the edge of the sprawling Sundarbans mangrove forest, which is home to endangered species and supports the livelihoods of two million people. The report said the World Bank itself declined to support the project, which could threaten the Sundarbans with air and water pollution. But six local banks, all IFC-financed, agreed to support the project instead. The report also cited power construction in the Philippines, where coal burning is estimated to result in almost a thousand premature deaths annually and where more than thirty environmental activists were killed in 2015 alone. IFC-financed banks have supported at least 20 new coal projects since 2013 in the Philippines. They include the proposed 540-megawatt Lanao Kauswagan power station, which is expected to begin operations next year and may threaten marine life in nearby Panguil Bay and the livelihoods of fishing communities, Inclusive Development International said. "While the IFC has tried to distance itself from the projects funded by its intermediaries, the fact is that these banks are brazenly disregarding the IFC’s environmental and social requirements," David Pred, IDI's managing director, said in a statement. (AFP)

World Bank secretly financing Asian 'coal boom': Development group

Pakistan has approached the World Bank to step in and prevent India from abrogating the Indus Waters Treaty.&nbsp;

&quot;In the meeting&nbsp;with the Pakistani delegation&nbsp;the World Bank committed itself to timely fulfilling its obligations under the treaty while remaining neutral,&quot; a statement released by the Pakistan Embassy in Washington read, The Dawn reported.&nbsp;

Pakistan also urged the World Bank to set up a court of arbitration quickly&nbsp;by selecting three judges in order to thwart India&#39;s plans to make maximum use of waters of rivers that are governed by Pakistan.&nbsp;

New Delhi&#39;s threat to pull the plug on the water-distribution treaty had come a few days after 18 soldiers stationed in Uri, Kashmir, were killed by four armed men, who India believe&nbsp;were helped by Pakistan.&nbsp;

Back in Washington, a Pakistani delegate, led by attorney general&nbsp;Ashtar Ausaf Ali, told the World Bank that India&#39;s threat was a breach of Article IX of the Indus Waters Treaty.

The Article IX of the treaty deals with arbitration of disputes between the parties concerning the interpretation or application of the treaty or the existence of any fact which, if established, might constitute a breach of the treaty.

World Bank has been asked to initiate the&nbsp;arbitration process because it had originally brokered the treaty in 1960.&nbsp;

Under the IWT, India has&nbsp;control of three &#39;eastern&#39;&nbsp;rivers&nbsp;&mdash; Ravi, Sutlej and Beas&nbsp;&mdash; and Pakistan has rights over the &#39;western&#39;&nbsp;rivers&nbsp;&mdash; Indus, Jhelum and Chenab, though India can use 20 per cent of the &#39;western&#39;&nbsp;rivers for power generation purposes.

But there has been a protracted issue about how&nbsp;Kishanganga and Rattle&nbsp;power projects have been set up by India despite mediation by the International Court of Justice in 2013.

Pakistan has objected to the power&nbsp;plant being built on Kishanganga river because India has planned to build a 24-km tunnel to divert water for generating more electricity. Islamabad say they will get less water if water is diverted.

Kishanganga river is in the Kashmir region and eventually meets Jhelum river in Pakistan.

Islamabad has also objected to the Rattle power project on Chenab river for its faulty designs.&nbsp;

But the Indian government is keen on revoking the treaty&nbsp;because they feel Pakistan has failed to rein in jihadist groups from launching cross-border attacks.&nbsp;

Pakistan&#39;s top diplomat Sartaj Aziz reacted strongly, saying India&#39;s threat of ignoring the agreement would be seen as an &quot;act of war&quot;.&nbsp;

(WION with inputs from agencies)

 
&nbsp;

After the September 18 Uri attack India plans to make maximum use of waters that feed into Pakistan

Pakistan has approached the World Bank to step in and prevent India from abrogating the Indus Waters Treaty. "In the meeting with the Pakistani delegation the World Bank committed itself to timely fulfilling its obligations under the treaty while remaining neutral," a statement released by the Pakistan Embassy in Washington read, The Dawn reported. Pakistan also urged the World Bank to set up a court of arbitration quickly by selecting three judges in order to thwart India's plans to make maximum use of waters of rivers that are governed by Pakistan. New Delhi's threat to pull the plug on the water-distribution treaty had come a few days after 18 soldiers stationed in Uri, Kashmir, were killed by four armed men, who India believe were helped by Pakistan. Back in Washington, a Pakistani delegate, led by attorney general Ashtar Ausaf Ali, told the World Bank that India's threat was a breach of Article IX of the Indus Waters Treaty. The Article IX of the treaty deals with arbitration of disputes between the parties concerning the interpretation or application of the treaty or the existence of any fact which, if established, might constitute a breach of the treaty. World Bank has been asked to initiate the arbitration process because it had originally brokered the treaty in 1960. Under the IWT, India has control of three 'eastern' rivers — Ravi, Sutlej and Beas — and Pakistan has rights over the 'western' rivers — Indus, Jhelum and Chenab, though India can use 20 per cent of the 'western' rivers for power generation purposes. But there has been a protracted issue about how Kishanganga and Rattle power projects have been set up by India despite mediation by the International Court of Justice in 2013. Pakistan has objected to the power plant being built on Kishanganga river because India has planned to build a 24-km tunnel to divert water for generating more electricity. Islamabad say they will get less water if water is diverted. Kishanganga river is in the Kashmir region and eventually meets Jhelum river in Pakistan. Islamabad has also objected to the Rattle power project on Chenab river for its faulty designs. But the Indian government is keen on revoking the treaty because they feel Pakistan has failed to rein in jihadist groups from launching cross-border attacks. Pakistan's top diplomat Sartaj Aziz reacted strongly, saying India's threat of ignoring the agreement would be seen as an "act of war". (WION with inputs from agencies)

Indian threat to dam up Indus waters makes Pakistan seek World Bank help

World Bank president Jim Yong Kim effectively won a second five-year term after nominations closed on Wednesday with no other candidates proposed. &nbsp; 
 
The World Bank executive board said in a statement that it expected the selection process to be completed at the Annual Meetings from October 7-9.&nbsp; 
 
Like in 2012, Kim&#39;s nomination, which was backed by the major shareholders of the bank, including the United States, France, Germany and China, was criticised for the lack of transparency in the selection process and not keeping it open for everyone.&nbsp; 
 
Ever since its inception during World War 2, the 56-year-old leader of the global development bank has always been an American chosen by Washington. The only time an American candidate has ever been challenged was in 2012 when Nigerian finance minister Ngozi Okonjo-Iweala faced-off with Kim for the presidency. 
 
Originally a Korean-American medical doctor, Kim has steered the World bank on programs to reduce extreme poverty.

(WION with inputs from AFP)

Kim earned the backing of the major stakeholders of the bank including the US, France, Germany and China

World Bank president Jim Yong Kim effectively won a second five-year term after nominations closed on Wednesday with no other candidates proposed. The World Bank executive board said in a statement that it expected the selection process to be completed at the Annual Meetings from October 7-9. Like in 2012, Kim's nomination, which was backed by the major shareholders of the bank, including the United States, France, Germany and China, was criticised for the lack of transparency in the selection process and not keeping it open for everyone. Ever since its inception during World War 2, the 56-year-old leader of the global development bank has always been an American chosen by Washington. The only time an American candidate has ever been challenged was in 2012 when Nigerian finance minister Ngozi Okonjo-Iweala faced-off with Kim for the presidency. Originally a Korean-American medical doctor, Kim has steered the World bank on programs to reduce extreme poverty. (WION with inputs from AFP)

World Bank president Jim Yong Kim nominated for second term

The World Bank has turned down a Chinese firm&#39;s plea to intervene in a bidding process for the construction of 4,320MW Dasu hydropower project on the Indus River, Pakistan daily The Express Tribune reported today.&nbsp; 
 
The objective of the Dasu hydropower project is to faciliate the expansion of electricity supply in Pakistan, according to World Bank&#39;s Project Overview.&nbsp; 
 
Chinese firm Messrs Power Construction Corporation of China Limited (PCCCL) is eyeing a contract for the construction of the civil works required for main dam structure on the Indus River to raise the water level and thus create energy for running the power generating turbines and generators.&nbsp; 
 
The project is likely to improve socio-economic services for people residing in that area. It will also be a stepping-stone for future hydro-power projects by the Water and Power Development Authority&rsquo;s (WAPDA&rsquo;s). 
 
The International money lending bank has, however, advised PCCCL to approach the Pakistan government and WAPDA for permission to bid, according to The Express Tribune. 
 
Earlier, Pakistan&#39;s top court had asked WAPDA &quot;not to publicise the result of the pre-qualification of the bidding for the project&quot;, according to the Pakistan daily.&nbsp; 
 
Pakistan&#39;s Supreme Court, on August 25, had allowed PCCCL to approach the World Bank with an appeal against WPADA&#39;s decision of removing it from obtaining the contract of civil works, to construct the &#39;main hydraulic structure&#39; which is the first component of the project.&nbsp; 
 
Without the hydraulic structure, the water level will not rise and power will not be generated stated World Bank&#39;s project review. 
 
(WION)&nbsp; 
&nbsp;

Chinese firm PCCCL is eyeing the contract for the construction of civil works required for the dam structure

The World Bank has turned down a Chinese firm's plea to intervene in a bidding process for the construction of 4,320MW Dasu hydropower project on the Indus River, Pakistan daily The Express Tribune reported today. The objective of the Dasu hydropower project is to faciliate the expansion of electricity supply in Pakistan, according to World Bank's Project Overview. Chinese firm Messrs Power Construction Corporation of China Limited (PCCCL) is eyeing a contract for the construction of the civil works required for main dam structure on the Indus River to raise the water level and thus create energy for running the power generating turbines and generators. The project is likely to improve socio-economic services for people residing in that area. It will also be a stepping-stone for future hydro-power projects by the Water and Power Development Authority’s (WAPDA’s). The International money lending bank has, however, advised PCCCL to approach the Pakistan government and WAPDA for permission to bid, according to The Express Tribune. Earlier, Pakistan's top court had asked WAPDA "not to publicise the result of the pre-qualification of the bidding for the project", according to the Pakistan daily. Pakistan's Supreme Court, on August 25, had allowed PCCCL to approach the World Bank with an appeal against WPADA's decision of removing it from obtaining the contract of civil works, to construct the 'main hydraulic structure' which is the first component of the project. Without the hydraulic structure, the water level will not rise and power will not be generated stated World Bank's project review. (WION)

World Bank turns down Chinese firm's plea to intervene in Dasu hydropower project in Pakistan

Spain&#39;s former industry minister, who resigned after coming under scrutiny over his links to a company that appeared in the Panama Papers, has withdrawn his application for a senior job at the World Bank, a government source said on Tuesday. 
 
Jose Manuel Soria could not be contacted for comment on Tuesday but newspaper El Mundo reported he had told the economy ministry in a letter he was withdrawing after being asked to by the government and because of how his application was being used politically. 
 
Soria&#39;s nomination as his country&#39;s representative at the World Bank, announced on Friday by the acting center-right government, sparked public outrage in Spain and drew criticism from across the political spectrum. 
 
The news came at a sensitive time in Spanish politics, where bickering between parties is edging the country toward its third election in a year. 
 
He stepped down as minister in April after reports surfaced of his alleged links to an offshore company on the British island of Jersey, saying he was resigning to limit any damage to the caretaker government. Soria has denied any wrongdoing. 
 
The conservative People&#39;s Party (PP) has governed in an acting capacity since losing its majority in an inconclusive election in December following a string of corruption scandals. 
 
The PP again won the most votes in a second ballot in June, but still fell short of a majority in another hung parliament. 
 
Parties have yet to find a way out of the impasse, and PP leader Mariano Rajoy has struggled to get enough rivals to back him for a second term in office. 
 
(Reuters)

Jose Manuel Soria's nomination as his country's representative at the World Bank, announced on Friday, sparked public outrage in Spain

Spain's former industry minister, who resigned after coming under scrutiny over his links to a company that appeared in the Panama Papers, has withdrawn his application for a senior job at the World Bank, a government source said on Tuesday. Jose Manuel Soria could not be contacted for comment on Tuesday but newspaper El Mundo reported he had told the economy ministry in a letter he was withdrawing after being asked to by the government and because of how his application was being used politically. Soria's nomination as his country's representative at the World Bank, announced on Friday by the acting center-right government, sparked public outrage in Spain and drew criticism from across the political spectrum. The news came at a sensitive time in Spanish politics, where bickering between parties is edging the country toward its third election in a year. He stepped down as minister in April after reports surfaced of his alleged links to an offshore company on the British island of Jersey, saying he was resigning to limit any damage to the caretaker government. Soria has denied any wrongdoing. The conservative People's Party (PP) has governed in an acting capacity since losing its majority in an inconclusive election in December following a string of corruption scandals. The PP again won the most votes in a second ballot in June, but still fell short of a majority in another hung parliament. Parties have yet to find a way out of the impasse, and PP leader Mariano Rajoy has struggled to get enough rivals to back him for a second term in office. (Reuters)

Spain's former industry minister, linked to Panama Papers, withdraws World Bank job application

Around 50 companies including global banking institutions like the World Bank, Deutsche Bank and Barclays have expressed their eagerness to be associated with the centre&#39;s postal payments bank initiative, Indian minister Ravi Shankar Prasad said on Saturday. 
 
&quot;We will begin postal payments banking service from September 16, wherein 1.3 lakh postmen will be given hand-held devices, a moving ATM (automated teller machine) to provide banking services, insurance, money-order, as well as third-party service,&quot; the Information technology minister said after inaugurating an incubation centre at the Software Technology Parks of India (STPI) here. 
 
Some 50 companies, including World Bank, Deutsche Bank, Swiss Bank, Barclays, want to be associated with us,&quot; said&nbsp;India&#39;s ruling Bharatiya Janta Party (BJP) leader. 
 
In June, the Indian cabinet had cleared the proposal for postal payments banks with a corpus of Rupees&nbsp;800 crore. The proposal is to set up 650 branches of postal payments banks.&nbsp; 
 
Prasad said his ministry is taking up several initiatives to use IT and related services to improve the services, and asked IT experts to use government services through the STPI to innovate in this direction.&nbsp; 
 
&quot;We will also begin the virtual classroom facility so that we can use technology to offer better education through virtual classrooms. As a pilot project, 3,500 government schools will be given the facility, of which 770 schools are from (western) Gujarat,&quot; he added. 
 
The minister also spoke about the government&#39;s initiative to set up BPOs (business process outsourcing units) in smaller centres in the country. 
 
&quot;We have started BPO scheme to encourage small centres for call centres, BPOs. We started 48,000 call centres/BPOs and will provide a subsidy of Rupees&nbsp;1 lakh to call centres in smaller centres. We are creating a platform across the country for that,&quot; Prasad said, adding, &quot;IT applications will be used for pensioners, distributing scholarships. We want to make India the IT power hub of the world.&quot;&nbsp; 
 
Prasad later visited Bardoli, a city in western Indian state of Gujarat, from where the Indian freedom fighter Sardar Patel had started his historic &#39;Satyagrah&#39; against the British rule. 
 
The minister took a dig at the grand old party&nbsp;Congress for 41-year delay in conferring the Bharat Ratna, the highest civilian award of Republic of India, upon Sardar Patel. 
 
&quot;Sardar Patel died in 1950, and was conferred Bharat Ratna in 1991. Rahulji (Congress vice-president Rahul Gandhi) and Soniaji (Congress chief Sonia Gandhi) must answer as to why they took 41 years for this. Neither has a single family made India independent, nor has a single family been behind taking the country forward,&quot; he said.

(PTI) 
 
 
 
&nbsp;

'Some 50 companies, including World Bank, Deutsche Bank, Swiss Bank, Barclays, want to be associated with us,' Ravi Shankar Prasad said

Around 50 companies including global banking institutions like the World Bank, Deutsche Bank and Barclays have expressed their eagerness to be associated with the centre's postal payments bank initiative, Indian minister Ravi Shankar Prasad said on Saturday. "We will begin postal payments banking service from September 16, wherein 1.3 lakh postmen will be given hand-held devices, a moving ATM (automated teller machine) to provide banking services, insurance, money-order, as well as third-party service," the Information technology minister said after inaugurating an incubation centre at the Software Technology Parks of India (STPI) here. Some 50 companies, including World Bank, Deutsche Bank, Swiss Bank, Barclays, want to be associated with us," said India's ruling Bharatiya Janta Party (BJP) leader. In June, the Indian cabinet had cleared the proposal for postal payments banks with a corpus of Rupees 800 crore. The proposal is to set up 650 branches of postal payments banks. Prasad said his ministry is taking up several initiatives to use IT and related services to improve the services, and asked IT experts to use government services through the STPI to innovate in this direction. "We will also begin the virtual classroom facility so that we can use technology to offer better education through virtual classrooms. As a pilot project, 3,500 government schools will be given the facility, of which 770 schools are from (western) Gujarat," he added. The minister also spoke about the government's initiative to set up BPOs (business process outsourcing units) in smaller centres in the country. "We have started BPO scheme to encourage small centres for call centres, BPOs. We started 48,000 call centres/BPOs and will provide a subsidy of Rupees 1 lakh to call centres in smaller centres. We are creating a platform across the country for that," Prasad said, adding, "IT applications will be used for pensioners, distributing scholarships. We want to make India the IT power hub of the world." Prasad later visited Bardoli, a city in western Indian state of Gujarat, from where the Indian freedom fighter Sardar Patel had started his historic 'Satyagrah' against the British rule. The minister took a dig at the grand old party Congress for 41-year delay in conferring the Bharat Ratna, the highest civilian award of Republic of India, upon Sardar Patel. "Sardar Patel died in 1950, and was conferred Bharat Ratna in 1991. Rahulji (Congress vice-president Rahul Gandhi) and Soniaji (Congress chief Sonia Gandhi) must answer as to why they took 41 years for this. Neither has a single family made India independent, nor has a single family been behind taking the country forward," he said. (PTI)

Global banking institutions keen on tie-up with postal bank initiative: India's IT minister

The World Bank adopted a new set of policies on Thursday that aim to expand protections for people and the environment in projects financed by the bank while making it easier for borrowers to comply with its standards. 
 
The global lender dedicated to fighting poverty, whose commitments rose to more than $60 billion this year, said the new environmental and social framework had involved the &quot;most extensive consultation ever conducted&quot; by the bank. 
 
&quot;These new safeguards will build into our projects updated and improved protections for the most vulnerable people in the world and our environment,&quot; World Bank President Jim Yong Kim said in a statement. 
 
The Bank last year acknowledged that its projects had sometimes resulted in forced population displacements. World Bank projects in regions around the world have been accused of underwriting human rights abuses. 
 
But the first major update to the World Bank&#39;s safeguard policies in nearly 20 years has drawn fire from some non-profit groups for creating &quot;loopholes&quot; with more vague language and more reliance on borrower country laws and standards. 
 
&quot;The bank has effectively dismantled thirty years of environmental and social protections for the world&rsquo;s most impoverished and vulnerable peoples,&quot; said Stephanie Fried, executive director of the Ulu Foundation, a non-profit group focussed on forest preservation. 
 
The new rules are to take effect in 2018 and will require client states to conduct a &quot;broadened social assessment and management of environmental and social risks,&quot; to guarantee labour rights and prohibit any form of forced labour. 
 
Projects will have to reduce environmental harm and avoid large-scale population displacements, according to the new policy. 
 
Kim told reporters on a conference call that one key example of the changes will be increased protections for lesbian, gay, bisexual and transgender communities. The bank pulled out of a $90 million loan to Uganda&#39;s health system in 2014 after the government passed a law that imposed life sentences for certain homosexual activities and made it a crime not to report violations. 
 
Kim said the World Bank had committed increased funding to work with its 189 member countries to lift their own environmental and human rights safeguards to match those of the Washington-based development lender. 
 
While welcoming some improvements, Nadia Daar, head of the Washington office at Oxfam International, said in a statement that her organization was &quot;frustrated and disappointed&quot; that the new policy had not gone further. 
 
The bank information centre, an organisation which lobbies to improve World Bank policies, said the new rules lacked &quot;the strength and clarity that people negatively impacted by development so profoundly depend upon&quot;. 
 
As the latest version of the rules became public last month, Human Rights Watch likewise said it &quot;does not require the bank to respect human rights&quot;. 
 
Kim, the Bank president, said the framework represented &quot;the best possible compromise&quot;. 
 
&quot;We had to find a path down the middle where we can both ensure that abuses didn&#39;t happen and at the same time make it possible for borrowers to borrow,&quot; Kim told reporters in a conference call. 
 
Overly strict criteria risked harming the economic prospects of poor countries, he said.&nbsp;The Bank currently faces a growing number of other actors in global development, including China, seen as placing fewer conditions on financing. 
 
(Agencies)

New rules have drawn fire from NGOs for creating loopholes and shifting responsibility to the borrowing nations

The World Bank adopted a new set of policies on Thursday that aim to expand protections for people and the environment in projects financed by the bank while making it easier for borrowers to comply with its standards. The global lender dedicated to fighting poverty, whose commitments rose to more than $60 billion this year, said the new environmental and social framework had involved the "most extensive consultation ever conducted" by the bank. "These new safeguards will build into our projects updated and improved protections for the most vulnerable people in the world and our environment," World Bank President Jim Yong Kim said in a statement. The Bank last year acknowledged that its projects had sometimes resulted in forced population displacements. World Bank projects in regions around the world have been accused of underwriting human rights abuses. But the first major update to the World Bank's safeguard policies in nearly 20 years has drawn fire from some non-profit groups for creating "loopholes" with more vague language and more reliance on borrower country laws and standards. "The bank has effectively dismantled thirty years of environmental and social protections for the world’s most impoverished and vulnerable peoples," said Stephanie Fried, executive director of the Ulu Foundation, a non-profit group focussed on forest preservation. The new rules are to take effect in 2018 and will require client states to conduct a "broadened social assessment and management of environmental and social risks," to guarantee labour rights and prohibit any form of forced labour. Projects will have to reduce environmental harm and avoid large-scale population displacements, according to the new policy. Kim told reporters on a conference call that one key example of the changes will be increased protections for lesbian, gay, bisexual and transgender communities. The bank pulled out of a $90 million loan to Uganda's health system in 2014 after the government passed a law that imposed life sentences for certain homosexual activities and made it a crime not to report violations. Kim said the World Bank had committed increased funding to work with its 189 member countries to lift their own environmental and human rights safeguards to match those of the Washington-based development lender. While welcoming some improvements, Nadia Daar, head of the Washington office at Oxfam International, said in a statement that her organization was "frustrated and disappointed" that the new policy had not gone further. The bank information centre, an organisation which lobbies to improve World Bank policies, said the new rules lacked "the strength and clarity that people negatively impacted by development so profoundly depend upon". As the latest version of the rules became public last month, Human Rights Watch likewise said it "does not require the bank to respect human rights". Kim, the Bank president, said the framework represented "the best possible compromise". "We had to find a path down the middle where we can both ensure that abuses didn't happen and at the same time make it possible for borrowers to borrow," Kim told reporters in a conference call. Overly strict criteria risked harming the economic prospects of poor countries, he said. The Bank currently faces a growing number of other actors in global development, including China, seen as placing fewer conditions on financing. (Agencies)

World Bank's new environmental framework angers human rights critics

The world cannot depend on China alone to save it from a Brexit-induced downturn, the country&#39;s premier said today. 
 
Li Keqiang made the remarks after meeting the heads of six global economic organisations, days after the International Monetary Fund&nbsp;(IMF)&nbsp;predicted that uncertainty created by Britain&#39;s vote to leave the European Union would slow the world economy into next year. 
 
&quot;Given the financial fluctuations as a result of Brexit, China will advance market-based reform of its exchange rate,&quot; Li said, adding, &quot;we will not engage in a trade war or currency war.&nbsp;But it is impossible to carry all of the burden of the whole world on our shoulders,&quot; he said. 
 
Improving global economic growth would require the world to step up macroeconomic coordination and increase the transparency of macro policies, Li added. 
 
In an update to its April forecast, the IMF said global economic growth was likely to be 3.1 per cent this year and 3.4 per cent in 2017, a downward revision of 0.1 per cent for both years. At the same time it upgraded its growth forecast for China by 0.1 per cent to 6.6. 
 
The Asian giant&#39;s economy expanded at 6.7 per cent in the April-June period, the same as the first three months of the year, and slowing from a growth of 6.9 for the full year 2015, its weakest annual rate in a quarter of a century.&nbsp;But the second-quarter reading was stronger than expected and fuelled hopes that growth in the world&#39;s second-largest economy may be stabilising. 
 
Li said the IMF hike put &quot;pressure&quot; on China to &quot;maintain growth and stability&quot;, adding that the organisation should &quot;encourage all countries to move in the same direction&quot;. 
 
Following Li&#39;s comments, World Bank president Jim Yong Kim praised China for its commitment to international economic cooperation at a &quot;time when in the West there is a very loud rejection of globalisation and multilateralism&quot;. 
 
The remarks come as Beijing finds itself in a dispute with the EU over whether or not it deserves to be granted market economy status, a designation that would make it much harder for major economies to fight Beijing over alleged unfair trading practices. 
 
Li&#39;s meeting came ahead of a G-20 finance ministers summit in the Chinese city of Chengdu, where representatives from the biggest industrialised and emerging economies are expected to discuss the impact of Brexit. 
 
(AFP)

In the West there is a very loud rejection of globalisation and multilateralism: World Bank president, Jim Yong Kim

The world cannot depend on China alone to save it from a Brexit-induced downturn, the country's premier said today. Li Keqiang made the remarks after meeting the heads of six global economic organisations, days after the International Monetary Fund (IMF) predicted that uncertainty created by Britain's vote to leave the European Union would slow the world economy into next year. "Given the financial fluctuations as a result of Brexit, China will advance market-based reform of its exchange rate," Li said, adding, "we will not engage in a trade war or currency war. But it is impossible to carry all of the burden of the whole world on our shoulders," he said. Improving global economic growth would require the world to step up macroeconomic coordination and increase the transparency of macro policies, Li added. In an update to its April forecast, the IMF said global economic growth was likely to be 3.1 per cent this year and 3.4 per cent in 2017, a downward revision of 0.1 per cent for both years. At the same time it upgraded its growth forecast for China by 0.1 per cent to 6.6. The Asian giant's economy expanded at 6.7 per cent in the April-June period, the same as the first three months of the year, and slowing from a growth of 6.9 for the full year 2015, its weakest annual rate in a quarter of a century. But the second-quarter reading was stronger than expected and fuelled hopes that growth in the world's second-largest economy may be stabilising. Li said the IMF hike put "pressure" on China to "maintain growth and stability", adding that the organisation should "encourage all countries to move in the same direction". Following Li's comments, World Bank president Jim Yong Kim praised China for its commitment to international economic cooperation at a "time when in the West there is a very loud rejection of globalisation and multilateralism". The remarks come as Beijing finds itself in a dispute with the EU over whether or not it deserves to be granted market economy status, a designation that would make it much harder for major economies to fight Beijing over alleged unfair trading practices. Li's meeting came ahead of a G-20 finance ministers summit in the Chinese city of Chengdu, where representatives from the biggest industrialised and emerging economies are expected to discuss the impact of Brexit. (AFP)

Chinese premier: We alone cannot save world from Brexit downturn

The Government of Sri Lanka and the World Bank today signed a $55 million loan to Sri Lanka to improve urban services, preserve cultural and environment assets, and improve livability in Jaffna, adding the city to an existing project to develop Galle and Kandy. 
 
The credit agreement for the project was signed by Dr. R.H.S. Samarathunga Secretary to the Treasury, Ministry of Finance and Fran?oise Clottes, World Bank Country Director for Sri Lanka and the Maldives. 
 
The credit will add development of rapidly urbanising Jaffna to the existing Strategic Cities Development Project (SCDP), which is supported by the World Bank and was originally approved in 2014. 
 
&ldquo;Well planned cities can be centers of innovation and job creation as experienced in many parts of the world and this is an opportunity for Sri Lanka to connect people to prosperity,&rdquo; said Fran?oise Clottes, World Bank Country Director for Sri Lanka and the Maldives. &ldquo;There is substantial potential for economic growth in Jaffna, now that peace has returned. An improved urban environment is a favorable habitat for the developing enterprises that one day will become the engines of growth.&rdquo; 
 
A recent World Bank study, &ldquo;Sri Lanka: a Systematic Country Diagnostic (SCD)&rdquo;, identifies Jaffna as a rapidly growing, single-city agglomeration in the Northern Province of Sri Lanka. In the post-war era, the city has seen rapid growth and urban expansion and there are significant demands for improved municipal services. As communicated during recent consultations, the people of Jaffna see a priority in improving city functions and livability while preserving cultural heritage. 
 
Guided by consultations with Jaffna&rsquo;s citizens, the project will attempt to improve the road network and rehabilitate the drainage system while preserving the city&rsquo;s ponds, which have played an important role in flood management and which could be key to climate change adaptation. In addition, the project aims to preserve cultural heritage assets such as public spaces and parks as well as encouraging cycling. 
 
&ldquo;Building trust among citizens and service providers is a challenge and an outcome we hope to achieve through the additional finance support to Jaffna through this project,&rdquo; said Zhiyu Jerry Chen, World Bank Senior Urban Development Specialist and Task Team Leader of the project. &ldquo;A City Stakeholder forum will be used under this project for improved and continued citizen engagement to closely collaborate with the service providers in ensuring the project investments are put to profitable use for the people of Jaffna,&rdquo; he said. 
 
The credit for this project is provided by the International Development Association (IDA), the World Bank&rsquo;s grant and low interest arm, with a maturity of 25 years that includes a grace period of 5 years. The Ministry of Megapolis and Western Development is the lead responsible agency for the implementation of this project with active participation from Jaffna Municipal Council and other implementation partner agencies. 
 
(Sourced from World Bank website) 
&nbsp;

World Bank study identifies Jaffna as a rapidly growing, single-city agglomeration in the Sri Lanka's northern province

The Government of Sri Lanka and the World Bank today signed a $55 million loan to Sri Lanka to improve urban services, preserve cultural and environment assets, and improve livability in Jaffna, adding the city to an existing project to develop Galle and Kandy. The credit agreement for the project was signed by Dr. R.H.S. Samarathunga Secretary to the Treasury, Ministry of Finance and Fran?oise Clottes, World Bank Country Director for Sri Lanka and the Maldives. The credit will add development of rapidly urbanising Jaffna to the existing Strategic Cities Development Project (SCDP), which is supported by the World Bank and was originally approved in 2014. “Well planned cities can be centers of innovation and job creation as experienced in many parts of the world and this is an opportunity for Sri Lanka to connect people to prosperity,” said Fran?oise Clottes, World Bank Country Director for Sri Lanka and the Maldives. “There is substantial potential for economic growth in Jaffna, now that peace has returned. An improved urban environment is a favorable habitat for the developing enterprises that one day will become the engines of growth.” A recent World Bank study, “Sri Lanka: a Systematic Country Diagnostic (SCD)”, identifies Jaffna as a rapidly growing, single-city agglomeration in the Northern Province of Sri Lanka. In the post-war era, the city has seen rapid growth and urban expansion and there are significant demands for improved municipal services. As communicated during recent consultations, the people of Jaffna see a priority in improving city functions and livability while preserving cultural heritage. Guided by consultations with Jaffna’s citizens, the project will attempt to improve the road network and rehabilitate the drainage system while preserving the city’s ponds, which have played an important role in flood management and which could be key to climate change adaptation. In addition, the project aims to preserve cultural heritage assets such as public spaces and parks as well as encouraging cycling. “Building trust among citizens and service providers is a challenge and an outcome we hope to achieve through the additional finance support to Jaffna through this project,” said Zhiyu Jerry Chen, World Bank Senior Urban Development Specialist and Task Team Leader of the project. “A City Stakeholder forum will be used under this project for improved and continued citizen engagement to closely collaborate with the service providers in ensuring the project investments are put to profitable use for the people of Jaffna,” he said. The credit for this project is provided by the International Development Association (IDA), the World Bank’s grant and low interest arm, with a maturity of 25 years that includes a grace period of 5 years. The Ministry of Megapolis and Western Development is the lead responsible agency for the implementation of this project with active participation from Jaffna Municipal Council and other implementation partner agencies. (Sourced from World Bank website)

World Bank credits $55m to Sri Lankan government for urbanisation

The World Bank on Monday confirmed New York University economics professor Paul Romer as its next chief economist, bringing in a prominent voice advocating investment in human capital and innovation. 
 
Romer, 60, will replace Kaushik Basu, a former Indian government economics adviser who is retiring. Romer will take up the position in September and is tasked with keeping the World Bank Group at the forefront of international development knowledge. 
 
Romer is a proponent of &quot;endogenous growth theory&quot;, which holds that investments in human capital, innovation and knowledge are significant contributors to economic growth. 
 
The theory, which Romer helped develop in the 1980s and 1990s, also holds that the spillover effects of a knowledge-based economy will lead to economic development and that the long-run growth rate of an economy can be increased with measures such as subsidies for research and development, and education. 
 
&quot;We&#39;re most excited about his deep commitment to tackling poverty and inequality and finding innovative solutions that we can take to scale,&quot; World Bank President Jim Yong Kim said of Romer in a statement. 
 
Romer&#39;s appointment comes at a time when the World Bank, the International Monetary Fund and officials from the world&#39;s largest economies are increasingly worried by a slowdown in global growth and trade. 
 
The IMF said last week that the United States&#39; future growth potential could be even lower than previously thought as aging baby boomers leave the workforce and productivity stagnates. 
 
Romer, also a student of urbanisation, said in a blog posting last year that economic growth sprang from continual innovation, even things as minor as new paper coffee cup designs in which small and large cups use a single-sized plastic top, reducing costs. 
 
Using a cooking metaphor, he said: &quot;Economic growth springs from better recipes, not just from more cooking. New recipes produce fewer unpleasant side effects and generate more economic value per unit of raw material.&quot; 
 
For the developing countries served by World Bank loans and support, he said the priority was to adapt tested strategies that richer countries had used to build higher living standards. 
 
Dense urban environments where market forces can flourish foster innovation, he said, citing China&#39;s urban growth as an example. 
 
&quot;Together, the city and the market let large groups of people cooperate by discovering new ideas, sharing them, and learning from each other,&quot; Romer wrote. 
 
(Reuters)

He believes in 'endogenous growth theory' which says investment in human capital & innovation are significant drivers of growth

The World Bank on Monday confirmed New York University economics professor Paul Romer as its next chief economist, bringing in a prominent voice advocating investment in human capital and innovation. Romer, 60, will replace Kaushik Basu, a former Indian government economics adviser who is retiring. Romer will take up the position in September and is tasked with keeping the World Bank Group at the forefront of international development knowledge. Romer is a proponent of "endogenous growth theory", which holds that investments in human capital, innovation and knowledge are significant contributors to economic growth. The theory, which Romer helped develop in the 1980s and 1990s, also holds that the spillover effects of a knowledge-based economy will lead to economic development and that the long-run growth rate of an economy can be increased with measures such as subsidies for research and development, and education. "We're most excited about his deep commitment to tackling poverty and inequality and finding innovative solutions that we can take to scale," World Bank President Jim Yong Kim said of Romer in a statement. Romer's appointment comes at a time when the World Bank, the International Monetary Fund and officials from the world's largest economies are increasingly worried by a slowdown in global growth and trade. The IMF said last week that the United States' future growth potential could be even lower than previously thought as aging baby boomers leave the workforce and productivity stagnates. Romer, also a student of urbanisation, said in a blog posting last year that economic growth sprang from continual innovation, even things as minor as new paper coffee cup designs in which small and large cups use a single-sized plastic top, reducing costs. Using a cooking metaphor, he said: "Economic growth springs from better recipes, not just from more cooking. New recipes produce fewer unpleasant side effects and generate more economic value per unit of raw material." For the developing countries served by World Bank loans and support, he said the priority was to adapt tested strategies that richer countries had used to build higher living standards. Dense urban environments where market forces can flourish foster innovation, he said, citing China's urban growth as an example. "Together, the city and the market let large groups of people cooperate by discovering new ideas, sharing them, and learning from each other," Romer wrote. (Reuters)

NYU economics Professor Paul Romer to be next World Bank chief economist

The China-led Asian Infrastructure Investment Bank (AIIB) will be different from institutions like the World Bank because it has a greater understanding of the developing world&#39;s needs, officials said on Sunday at its first annual meeting. 
 
Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region. 
 
The AIIB, which intends to invest $1.2 billion this year, has said it is aiming to meet international standards of governance, though some members say there is still work to be done. 
 
Speaking on the final day of the bank&#39;s inaugural annual meeting, Chinese Finance Minister Lou Jiwei said the AIIB needed to establish its niche. 
 
&quot;The AIIB needs to establish its comparative advantage relative to existing multilateral development banks like the World Bank,&quot; Lou said. 
 
&quot;Compared with the Asian Development Bank, World Bank and other multilateral development banks, the AIIB&#39;s advantage lies in its keener understanding of the successful experience and lessons of developing countries&#39; years of development.&quot; 
 
The AIIB&#39;s board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for reconstruction and development. 
 
The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed. 
 
AIIB President Jin Liqun said it was the focus on infrastructure that specifically marked out the bank as different and that they were committed to the concept of international best practice. 
 
&quot;The question is, how do you define international best practice? I will not agree to anything which could be considered international best practice unless this kind best practice incorporates the development experience of China and many countries in Asia and elsewhere over the last three or four decades,&quot; Jin said. 
 
&quot;So our bank would like to have the development experience, the so-called international best practice, reflecting the experience of China, India (and) so many countries in Asia. So we should have a different model of development.&quot; 
 
The AIIB is also looking to expand its numbers this year and will take applications for new members through the end of September. 
 
(Reuters)

The Asian Infrastructure Investment Bank's board approved its first four deals worth $509 million for reconstruction and development

The China-led Asian Infrastructure Investment Bank (AIIB) will be different from institutions like the World Bank because it has a greater understanding of the developing world's needs, officials said on Sunday at its first annual meeting. Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region. The AIIB, which intends to invest $1.2 billion this year, has said it is aiming to meet international standards of governance, though some members say there is still work to be done. Speaking on the final day of the bank's inaugural annual meeting, Chinese Finance Minister Lou Jiwei said the AIIB needed to establish its niche. "The AIIB needs to establish its comparative advantage relative to existing multilateral development banks like the World Bank," Lou said. "Compared with the Asian Development Bank, World Bank and other multilateral development banks, the AIIB's advantage lies in its keener understanding of the successful experience and lessons of developing countries' years of development." The AIIB's board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for reconstruction and development. The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed. AIIB President Jin Liqun said it was the focus on infrastructure that specifically marked out the bank as different and that they were committed to the concept of international best practice. "The question is, how do you define international best practice? I will not agree to anything which could be considered international best practice unless this kind best practice incorporates the development experience of China and many countries in Asia and elsewhere over the last three or four decades," Jin said. "So our bank would like to have the development experience, the so-called international best practice, reflecting the experience of China, India (and) so many countries in Asia. So we should have a different model of development." The AIIB is also looking to expand its numbers this year and will take applications for new members through the end of September. (Reuters)

China praises AIIB's greater understanding of developing world

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