Other Poverty Study
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Publication
2021 Compounding Misfortunes: An Update to the Study
(World Bank, Washington, DC, 2021-03)COVID-19 (coronavirus) has had an enormous impact on nearly every country in the world. However, Iraq, Jordan and Lebanon were already facing difficult to extreme circumstances even before the pandemic erupted, making them particularly vulnerable. This report looks at the impact of the pandemic, associated lockdowns and economic shocks and other misfortunes which have compounded the crisis, such as sharply lower oil revenues in Iraq and the Port of Beirut explosion in Lebanon, as well as political instability in both. The report estimates that 4.4 million people in the host communities and 1.1 million refugees or IDPs were driven into poverty in the immediate aftermath of the crisis, and while this considers all of Lebanon, it only includes three governorates in Jordan and the Kurdistan Region of Iraq, due to data limitations. A response commensurate with the magnitude of the shock is needed to prevent further misery. The poverty impact of COVID-19 and the ensuing confinement policies and economic contractions have been felt throughout the world, not least by marginalized communities. However, COVID-19 has compounded existing vulnerabilities or crises in Jordan, the Kurdistan Region of Iraq (KRI) and Lebanon. Syrian refugees – most of whom have been displaced for up to nine years – are particularly exposed given their perilous pre-crisis situation. Host communities in these three countries, who have supported and accommodated such large numbers of refugees, have also been heavily affected; all three countries were in strained positions prior to COVID-19, ranging from economic stagnation and high public debt in Jordan, to a collapse in public revenues due to international oil price shocks in KRI, to complete political and economic crisis in Lebanon. By March 2020, all three countries had witnessed their first cases of COVID-19 and introduced stringent containment policies ranging from partial closures of schools and shops to full curfew. While these measures were initially largely successful in containing the spread of the pandemic, they also led to a decline in economic activity across most sectors, particularly in the informal market. In Jordan and Iraq, the losses are estimated at around 8.2 and 10.5 percent of 2019’s GDP respectively. In Lebanon where the COVID-19 crisis is compounded by economic and political crises the losses are much higher, around 25 percent of GDP. Lebanon has experienced inflation of over 100 percent, largely due to its import dependence and currency depreciation. Unsurprisingly, given the magnitude of these shocks, recent rapid needs assessments and UNHCR administrative data show that refugees, who are highly concentrated in low-skilled jobs in the informal sector, have had to reduce food intake, incur additional debt and in some instances suffered eviction. -
Publication
Compounding Misfortunes: Changes in Poverty Since the Onset of COVID-19 on Syrian Refugees and Host Communities in Jordan, the Kurdistan Region of Iraq and Lebanon
(World Bank, Washington, DC, 2020-12-16)COVID-19 (coronavirus) has had an enormous impact on nearly every country in the world. However, Iraq, Jordan and Lebanon were already facing difficult to extreme circumstances even before the pandemic erupted, making them particularly vulnerable. This report looks at the impact of the pandemic, associated lockdowns and economic shocks and other misfortunes which have compounded the crisis, such as sharply lower oil revenues in Iraq and the Port of Beirut explosion in Lebanon, as well as political instability in both. The report estimates that 4.4 million people in the host communities and 1.1 million refugees or IDPs were driven into poverty in the immediate aftermath of the crisis, and while this considers all of Lebanon, it only includes three governorates in Jordan and the Kurdistan Region of Iraq, due to data limitations. A response commensurate with the magnitude of the shock is needed to prevent further misery. The poverty impact of COVID-19 and the ensuing confinement policies and economic contractions have been felt throughout the world, not least by marginalized communities. However, COVID-19 has compounded existing vulnerabilities or crises in Jordan, the Kurdistan Region of Iraq (KRI) and Lebanon. Syrian refugees – most of whom have been displaced for up to nine years – are particularly exposed given their perilous pre-crisis situation. Host communities in these three countries, who have supported and accommodated such large numbers of refugees, have also been heavily affected; all three countries were in strained positions prior to COVID-19, ranging from economic stagnation and high public debt in Jordan, to a collapse in public revenues due to international oil price shocks in KRI, to complete political and economic crisis in Lebanon. By March 2020, all three countries had witnessed their first cases of COVID-19 and introduced stringent containment policies ranging from partial closures of schools and shops to full curfew. While these measures were initially largely successful in containing the spread of the pandemic, they also led to a decline in economic activity across most sectors, particularly in the informal market. In Jordan and Iraq, the losses are estimated at around 8.2 and 10.5 percent of 2019’s GDP respectively. In Lebanon where the COVID-19 crisis is compounded by economic and political crises the losses are much higher, around 25 percent of GDP. Lebanon has experienced inflation of over 100 percent, largely due to its import dependence and currency depreciation. Unsurprisingly, given the magnitude of these shocks, recent rapid needs assessments and UNHCR administrative data show that refugees, who are highly concentrated in low-skilled jobs in the informal sector, have had to reduce food intake, incur additional debt and in some instances suffered eviction. -
Publication
Living Conditions and Settlement Decisions of Recent Afghan Returnees: Findings from a 2018 Phone Survey of Afghan Returnees and UNHCR Data
(World Bank, Washington, DC, 2019-06)This report is the result of a collaboration between the United Nations High Commissioner for Refugees (UNHCR) and the Poverty and Equity Global Practice of the World Bank Group (WBG). Repatriation or the return of refugees to their country of origin has been rarely studied, and data on their socio-economic outcomes is sparsely available. In such a context, the World Bank and UNHCR teams attempted to make good use of the existing data sources and complemented it with new data collection methods to better understand the patterns and characteristics of recent Afghan refugee returns. More specifically, the team attempted to analytically connect insights between different data sources to explore (albeit imperfectly) questions of selection among Afghans who remained in Pakistan and those documented returnees who returned to Afghanistan. -
Publication
Mauritius: Earnings Mobility and Inequality of Opportunity in the Labor Market
(World Bank, Washington, DC, 2019-03-22)This report sheds light on the extent to which earnings mobility and inequality of opportunity in access to the labor market have contributed to the increase in earnings inequality in Mauritius. Among the most important concerns about rising inequality is a situation where people become trapped in low-paying jobs and do not have the opportunity to improve their welfare through their own efforts. For this reason, this report takes a closer look at the extent and nature of earnings mobility and inequality of opportunity in the Mauritian labor market. -
Publication
South Caucasus in Motion
(World Bank, Washington, DC, 2019-01)The people of the South Caucasus aspire for their countries to become strong middle-class societies, and they are on track to make that aspiration a reality. Two decades of social and economic progress have changed the societies of Armenia, Azerbaijan, and Georgia. The notable improvements that people in the region have experienced are reflected in better living standards that allowed poverty to be reduced by half in the 12 years between 2005 and 2017. Yet, to consolidate middle-class societies, the governments of the South Caucasus need to do more to achieve the stability and resilience enjoyed by their more advanced peers in Europe and Central Asia. Sustainable economic growth, poverty reduction, and shared prosperity require that the full potential of all geographical and administrative areas, population groups, and economic sectors be realized. This boo analyzes spatial, social, and economic mobility in the South Caucasus. The book argues that Armenia, Azerbaijan, and Georgia have not yet integrated important geographical areas and population segments in full economic participation and social development. Economic gains have not been uniformly and equitably translated into greater welfare and opportunity among all households and individuals. The main conclusion is that sustainable growth, poverty reduction, and the consolidation of the middle class require that the institutional and physical foundations of greater and more equitable economic and social mobility be secured in the South Caucasus. Understanding and removing the constraints to the development of lagging districts; leveraging opportunities for agglomeration; linking geographical areas, peoples, and markets; fostering equality in access to better jobs; and making sure that high-quality education and basic services are available to all individuals and areas are crucial. -
Publication
Toward Water Security for Palestinians: West Bank and Gaza Water Supply, Sanitation, and Hygiene Poverty Diagnostic
(World Bank, Washington, DC, 2018-08-31)The Palestinian territories face significant and growing shortfalls in the water supply available for domestic use. With population of approximately 4.8 million growing at an average annual rate of 2.8 percent, the domestic supply gap is projected to dramatically increase unless supply and service options are expanded. The Water Supply, Sanitation, and Hygiene Poverty Diagnostic (WASH PD) assesses the underlying causes of the chronic and growing water insecurity in the Palestinian territories to inform water and sanitation programming. Water security requires that water resources are well managed, including risks, and that water service providers (SPs) are capable and motivated to provide sustainable, efficient, and equitable services. In the Palestinian territories, the WASH PD identified that water security was threatened by a complex set of factors including (a) Water resources: Declining quality and quantity due to over-abstraction, lack of regulation, and lack of environmental protection of water resources; (b) Service provision: The SPs operate on an inefficient basis with not-insignificant water losses and low-cost recovery. The SPs’ inability to provide reliable water services undermines customer confidence and willingness to pay; and (c) Geopolitical: The sector development is constrained by the geopolitical context within which it operates, limiting access to goods, services and water resources. To analyze and improve water security in the Palestinian territories, the WASH PD proposed an IWII framework (institutions, water resources, investments and incentives) that integrates efficient use of natural and financial resources to better meet demand and collaborative solutions within the region and with Palestinians to improve access to water supply and to protect resources. The WASH PD in West Bank and Gaza is part of a global initiative to improve evidence on the linkages between WASH, poverty, and service delivery. -
Publication
The Connections between Poverty and Water Supply, Sanitation, and Hygiene in Panama: A Diagnostic
(World Bank, Washington, DC, 2018-07)The present report summarizes the evidence and findings from a series of studies and new data collection around water supply, sanitation, and hygiene (WASH) and poverty. This WASH poverty diagnostic was undertaken to increase our understanding of the linkages between monetary poverty and WASH services. The work focuses on answering four questions: who are the poor?, does access to WASH vary by poverty level?, what are the synergies between WASH and other sectors, and how does this affect welfare?, and what are the constraints to service and potential solutions to providing universal access to safely managed water supply and sanitation? Although the work done in the context of this diagnostic covered both urban and rural areas, the main focus has been on the rural, and particularly, the indigenous areas, as these are the ones facing the greatest gaps in services. A more in-depth exploration of urban issues has been left for a future date. -
Publication
Mauritius Addressing Inequality through More Equitable Labor Markets
(World Bank, Washington, DC, 2018-03-26)Mauritius is often cited as one of the few African success stories, and with good reason. In the aftermath of independence (1968), this small island nation in the Indian Ocean seemed to be bound for economic failure because of its high poverty rate and numerous vulnerabilities, including high population growth, ethnic tensions, substantial unemployment, and an economy greatly dependent on the production of sugar for international markets. However, Mauritius was successful in diversifying the economy and accomplishing an unprecedented structural transformation.The Inclusiveness of Growth and Shared Prosperity report (World Bank 2015a) turned the spotlight on the expanding gap of inequality in household incomes that occurred between 2007 and 2012 and on the negative impact on poverty. The report estimates that the incidence of absolute poverty between 2007 and 2012 would have declined twice as quickly had growth been shared more widely and inequality not worsened. Building on these earlier findings, this study investigates the driving forces behind the growing income inequality and identifies policy levers that could mitigate and, in the long run, possibly reverse the upward trend.This study takes a comprehensive approach to the determinants of inequality by including the role of the choices of households and individuals, markets, and institutions. The report is structured as follows. Chapter one sets the stage by presenting stylized facts on the trends in household income inequality between 2001 and 2015, comparing these trends with trends in consumption inequality, and identifying the main culprit behind the rapidly rising inequality in household incomes, that is, household labor income. Chapter two supplies a set of descriptive trends of the two groups of factors, namely, household demographics and labor market forces, that contribute to changes in household laborincome and follows up with a decomposition exercise on changes in household labor income between 2001 and 2015.Because the analysis indicates that an unequal increase in female labor force participation and rising inequality in individual earnings are among the main contributors to the expanding inequality in household labor income, Chapter three takes a deep dive into the issue of gender inequality in the labor market. The chapter illustrates the gender gap in labor market participation, describes the differences in the activities of working women in the labor market relative to men, and concludes with a detailed analysis of gender gaps in wages separately in the public and private sectors. Chapter four resumes the main analysis of the drivers of increasing inequality in individual earnings. The chapter first presents stylized facts about overall inequality in wages and then separates out changes in inequality between and within groups defined by demographic characteristics. The chapter distinguishes the role of changes in prices (or wages) and the role of changes in the composition of the workforce in rising earnings inequality. The second part of the chapter is devoted to the analysis of the role of the main potential drivers of expanding earnings inequality. The possible candidates include the interaction of changes in labor supply and labor demand, giving rise to skills shortages or surpluses, and changes in labor market institutions, namely, remuneration orders (ROs). The chapter concludes with an analysis of an additional source of skills mismatches among the employed population, namely, education mismatches, and advances potential explanations for the coexistence of a substantial skills shortage, over education, particularly among youth, and a large share of highly educated youth among the unemployed. -
Publication
Findings of the Mozambique Water Supply, Sanitation, and Hygiene Poverty Diagnostic
(World Bank, Washington, DC, 2018-03-01)The Water Supply, Sanitation and Hygiene (WASH) Poverty Diagnostic in Mozambique is part of a global initiative to improve the evidence base on the linkages between WASH, human development, and poverty. The Diagnostic provides a detailed analysis of sector status, strengths and weaknesses to inform the conditions needed to attain the new Sustainable Development Goals (SDGs) that aim not only for universal access but for safely managed water and sanitation coverage. This report summarizes three background papers of this activity; the first containing the overall summary of findings, a dossier of sector data, and lessons and recommendations; then two technical reports that cover (i) the detailed information and data on the linkages between WASH, health and human development outcomes, and (ii) the analysis of the main institutional barriers that exist in the rural water subsector. The report presents updated evidence and data using diverse analytical tools that contribute to understand why and how WASH investments could be coordinated with other sectors to improve human development outcomes, such as reduced childhood stunting. The information presented in this comprehensive report explores water supply service quality, affordability and availability and offers conceptual framework and institutional diagnostic applied to the rural water sector, where services have been lagging behind in terms of coverage over the past decades. -
Publication
Improving Service Levels and Impact on the Poor: A Diagnostic of Water Supply, Sanitation, Hygiene, and Poverty in Indonesia
(World Bank, Washington, DC, 2017-10)The objective of this report is to provide an empirical basis for more inclusive and equitable service delivery in the water and sanitation sector in Indonesia. Despite recent gains, there are close to 100 million people without improved sanitation and 33 million without improved drinking water. These figures hide the persistent divides between urban and rural populations and among different income levels in access to services, and they mask underlying gaps in quality faced by all households, regardless of income or geographic location. Unequal access to services at the beginning of life is a key driver of inequality, placing children at a unfair disadvantage from the outset. The report shows that children living in communities where open defecation is practiced and where the quality of drinking water is poor are more likely to be stunted and suffer from cognitive deficits later in life. Improving the ability of and opportunity for the poor and vulnerable to benefit from water and sanitation services can help to ensure that Indonesia not only achieves its service delivery targets, but that water supply and sanitation become key drivers of a reduction in inequality, enhanced health and well-being, and economic growth and prosperity.