Publication:
The Poverty/Environment Nexus in Cambodia and Lao People's Democratic Republic

Loading...
Thumbnail Image
Files in English
English PDF (2.02 MB)
871 downloads
English Text (73.15 KB)
156 downloads
Published
2003-01
ISSN
Date
2014-08-01
Editor(s)
Abstract
Environmental degradation can inflict serious damage on poor people because their livelihoods often depend on natural resource use and their living conditions may offer little protection from air, water, and soil pollution. At the same time, poverty-constrained options may induce the poor to deplete resources and degrade the environment at rates that are incompatible with long-term sustainability. In such cases, degraded resources may precipitate a downward spiral, by further reducing the income and livelihoods of the poor. This "poverty/environment nexus" has become a major issue in the recent literature on sustainable development. In regions where the nexus is significant, jointly addressing problems of poverty and environmental degradation may be more cost-effective than addressing them separately. Empirical evidence on the prevalence and importance of the poverty/environment nexus is sparse because the requisite data are often difficult to obtain in developing countries. The authors use newly available spatial and survey data to investigate the spatial dimension of the nexus in Cambodia, and Lao People's Democratic Republic. The data enable the authors to quantify several environmental problems at the district and provincial level. In a parallel exercise, they map the provincial distribution of poor households. Merging the geographic information on poverty and the environment, the authors search for the nexus using geo-referenced indicator maps and statistical analysis. The results suggest that the nexus is country-specific: geographical, historical, and institutional factors may all play important roles in determining the relative importance of poverty and environment links in different contexts. Joint implementation of poverty and environment strategies may be cost-effective for some environmental problems, but independent implementation may be preferable in many cases as well. Since the search has not revealed a common nexus, the authors conclude on a cautionary note. The evidence suggests that the nexus concept can provide a useful catalyst for country-specific work, but not a general formula for program design.
Link to Data Set
Citation
Dasgupta, Susmita; Deichmann, Uwe; Meisner, Craig; Wheeler, David. 2003. The Poverty/Environment Nexus in Cambodia and Lao People's Democratic Republic. Policy Research Working Paper;No. 2960. © http://hdl.handle.net/10986/19172 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Report Series
Other publications in this report series
  • Publication
    Global Poverty Revisited Using 2021 PPPs and New Data on Consumption
    (Washington, DC: World Bank, 2025-06-05) Foster, Elizabeth; Jolliffe, Dean Mitchell; Lara Ibarra, Gabriel; Lakner, Christoph; Tettah-Baah, Samuel
    Recent improvements in survey methodologies have increased measured consumption in many low- and lower-middle-income countries that now collect a more comprehensive measure of household consumption. Faced with such methodological changes, countries have frequently revised upward their national poverty lines to make them appropriate for the new measures of consumption. This in turn affects the World Bank’s global poverty lines when they are periodically revised. The international poverty line, which is based on the typical poverty line in low-income countries, increases by around 40 percent to $3.00 when the more recent national poverty lines as well as the 2021 purchasing power parities are incorporated. The net impact of the changes in international prices, the poverty line, and new survey data (including new data for India) is an increase in global extreme poverty by some 125 million people in 2022, and a significant shift of poverty away from South Asia and toward Sub-Saharan Africa. The changes at higher poverty lines, which are more relevant to middle-income countries, are mixed.
  • Publication
    The Economic Value of Weather Forecasts: A Quantitative Systematic Literature Review
    (Washington, DC: World Bank, 2025-09-10) Farkas, Hannah; Linsenmeier, Manuel; Talevi, Marta; Avner, Paolo; Jafino, Bramka Arga; Sidibe, Moussa
    This study systematically reviews the literature that quantifies the economic benefits of weather observations and forecasts in four weather-dependent economic sectors: agriculture, energy, transport, and disaster-risk management. The review covers 175 peer-reviewed journal articles and 15 policy reports. Findings show that the literature is concentrated in high-income countries and most studies use theoretical models, followed by observational and then experimental research designs. Forecast horizons studied, meteorological variables and services, and monetization techniques vary markedly by sector. Estimated benefits even within specific subsectors span several orders of magnitude and broad uncertainty ranges. An econometric meta-analysis suggests that theoretical studies and studies in richer countries tend to report significantly larger values. Barriers that hinder value realization are identified on both the provider and user sides, with inadequate relevance, weak dissemination, and limited ability to act recurring across sectors. Policy reports rely heavily on back-of-the-envelope or recursive benefit-transfer estimates, rather than on the methods and results of the peer-reviewed literature, revealing a science-to-policy gap. These findings suggest substantial socioeconomic potential of hydrometeorological services around the world, but also knowledge gaps that require more valuation studies focusing on low- and middle-income countries, addressing provider- and user-side barriers and employing rigorous empirical valuation methods to complement and validate theoretical models.
  • Publication
    The Marshall Plan: Then and Now
    (Washington, DC: World Bank, 2025-10-14) Kedrosky, Davis; Mokyr, Joel
    This paper is a product of the Development Policy Team, Development Economics. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://www.worldbank.org/prwp.
  • Publication
    The Macroeconomic Implications of Climate Change Impacts and Adaptation Options
    (Washington, DC: World Bank, 2025-05-29) Abalo, Kodzovi; Boehlert, Brent; Bui, Thanh; Burns, Andrew; Castillo, Diego; Chewpreecha, Unnada; Haider, Alexander; Hallegatte, Stephane; Jooste, Charl; McIsaac, Florent; Ruberl, Heather; Smet, Kim; Strzepek, Ken
    Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.
  • Publication
    Geopolitical Risks and Trade
    (Washington, DC: World Bank, 2025-09-23) Mulabdic, Alen; Yotov, Yoto V.
    This paper studies the impact of geopolitical risks on international trade, using the Geopolitical Risk (GPR) index of Caldara and Iacoviello (2022) and an empirical gravity model. The impact of spikes in geopolitical risk on trade is negative, strong, and heterogeneous across sectors. The findings show that increases in geopolitical risk reduce trade by about 30 to 40 percent. These effects are equivalent to an increase of global tariffs of up to 14 percent. Services trade is most vulnerable to geopolitical risks, followed by agriculture, and the impact on manufacturing trade is moderate. These negative effects are partially mitigated by cultural and geographic proximity, as well as by the presence of trade agreements.
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Poverty Environment Nexus : Sustainable Approaches to Poverty Reduction in Cambodia, Lao PDR and Vietnam
    (Washington, DC, 2006-06) World Bank
    This is a draft edition of the Poverty Environment Nexus (PEN) report for Cambodia, Lao PDR and Vietnam. The purpose of this conference edition is to present the findings from the studies that have been undertaken in each country over the last three years as well as to obtain relevant comments and feedback from the conference participants that could be included in the final edition of the report. The material presented in this report is based upon comprehensive case studies as well as national analytical work performed in each country. This second phase of the PEN study is designed to address several of the unsolved issues faced by the first phase and within the existing PEN literature on Cambodia, Lao PDR and Vietnam. Since the earlier study found that the nexus may often be identified at disaggregated, or local, levels, the analysis in the second phase of the study was conducted both at the regional, provincial and district levels for the national studies (macro-levels) and on the district, village, commune, and household levels in the (case) studies (micro-level). This combination of macro and micro approaches results in more substantive findings, which are elaborated in detail in these elaborations, may then lead to a better scope for defining policy interventions.
  • Publication
    Environmental Priorities and Poverty Reduction : A Country Environmental Analysis for Colombia
    (Washington, DC: World Bank, 2007) Ahmed, Kulsum; Sánchez-Triana, Ernesto; Awe, Yewande
    The analysis of the cost of environmental degradation conducted as part of the country environmental analysis (CEA) shows that the most costly problems associated with environmental degradation are urban and indoor air pollution; inadequate water supply, sanitation, and hygiene; natural disasters (such as flooding and landslides); and land degradation. The burden of these costs falls most heavily on vulnerable segments of the population. To address these problems, this report identifies a number of cost-effective policy interventions that could be adopted in the short and medium terms to support sustainable development goals. In recent decades, considerable progress has been made in addressing the water and the forestry environmental agendas. The impact of environmental degradation on the most vulnerable groups suggests the need to increase emphasis on environmental health issues. However, the environmental management agenda has yet to catch up with this shift in priorities from watershed and forestry to environmental health problems because mechanisms in the current institutional structure to signal these changes are not yet in place. Improved monitoring and dissemination of information on environmental outcomes, assignment of accountability for environmental actions and outcomes, and involvement of a broad range of stakeholders are three important mechanisms to allow these signals to be picked up.
  • Publication
    Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies
    (World Bank, Washington, DC, 2009-06) Griebenow, Gonzalo; Kishore, Sunanda
    Poverty reduction strategies (PRSs) provide a central framework for macroeconomic, structural, and social policies in developing countries. Because of the numerous and complex links between environment and poverty, it is important that environmental issues are taken into account in the PRS process. This paper follows six previous assessments of the degree of mainstreaming environment in the PRS process using a similar methodology to present trends and provide an understanding of the effectiveness of environmental interventions in reducing poverty. However, it goes beyond previous assessments in three important ways. In-depth country case studies of the evolution of environmental mainstreaming in the PRS process over time. Many countries have now gone through several iterations of their poverty reduction strategies and have received a sequence of credits designed to implement key aspects of these strategies, making it possible to see how the process of mainstreaming environment in the strategies has evolved over time. In this assessment, the authors conduct detailed case studies of this evolution in Ghana, Albania, Bangladesh, and Vietnam. The choice of countries was based on the maturity of each country's PRS process, taking into consideration country size, lending volume, and vulnerability to climate change. An assessment of climate change mainstreaming in the PRS process in the same four countries. Like environment as a whole, the potential impacts of climate change have often been considered separately, if at all rather than as an integral part of development policies. An evaluation of environmental development policy loans (DPLs) in several middle income countries (Brazil, Gabon, and Mexico). DPLs represent an important opportunity to mainstream environment and climate change into middle-income countries' growth and development. This review assesses the process by which environmental DPLs have been prepared and the effectiveness with which they have been implemented.
  • Publication
    Poverty Reduction Strategies and Environment : A Review of 40 Interim and Full Poverty Reduction Strategy Papers (PRSPs)
    (World Bank, Washington, DC, 2002-06) Bojo, Jan; Reddy, Rama Chandra
    This review systematically assesses the focus of Poverty Reduction Strategy Papers (PRSPs) on environment-related issues. A total of 40 Interim and full PRSPs from countries in Africa, Latin America and Eastern Europe, the Middle East, Central and East Asia are reviewed. Four major questions: are posed: (i) What issues of environmental concerns and opportunities are identified in the PRSPs?; (ii) To what extent are poverty-environment causal links analyzed?; (iii) To what extent are environmental management responses and indicators put in place as part of the poverty reduction efforts?; and (iv) To what extent has the design and documentation of the process allowed for mainstreaming the environment? The review finds:: There is considerable variation across countries in the degree of mainstreaming: from a high score of 2.2 (Mozambique) to a low of 0.3 (Sao Tome Principe). Scores indicate the approximate level of attention given to environmental matters in the PRSPs. Some variation across countries is legitimate and to be expected, but there is no reason to believe that the lower scoring countries are free from concerns of environmental health and natural resources degradation linked to poverty. Finally, it should be recalled that a PRSP is only the written expression of an underlying and still emerging process of participation and implementation. What ultimately matters are the results on the ground, which cannot be evaluated across 40 countries at this point in time.
  • Publication
    Forestry in the Middle East and North Africa : An Implementation Review
    (Washington, DC: World Bank, 2002) Pswarayi-Riddihough, Idah
    In the Middle East and North Africa Region, forest resources are generally limited, as is their contribution to GDP, and it is for this reason their importance is often overlooked. However, forestry's contribution to natural resource and environmental management, is significant, which should not be underestimated. The report, implemented as an input to the development of a Bank Forestry Strategy in guiding its work in the sector, reviews the Bank-assisted forestry projects in the region over the last ten years, defines the regional forests, and describes its current status, and related policy and economic issues, including the need of civil society, and private sector involvement in forestry related issues. It is highlighted that ultimately, the decisions taken on the directions to be followed by the Bank, would be based on sound knowledge of the overall regional aspects, proposing Economic and Sector Work for the future. The report outlines appropriate policy formulation and technical solutions, but emphasizes that local communities must be directly involved in the planning, implementation, and monitoring of forestry development activities. This approach implies that public administrations, responsible for forestry development, become fully decentralized, and capable of strengthening local capacity.

Users also downloaded

Showing related downloaded files

  • Publication
    Digital Africa
    (Washington, DC: World Bank, 2023-03-13) Begazo, Tania; Dutz, Mark Andrew; Blimpo, Moussa
    All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.
  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.
  • Publication
    Digital Progress and Trends Report 2023
    (Washington, DC: World Bank, 2024-03-05) World Bank
    Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.
  • Publication
    Global Economic Prospects, January 2025
    (Washington, DC: World Bank, 2025-01-16) World Bank
    Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.
  • Publication
    Is US Trade Policy Reshaping Global Supply Chains ?
    (World Bank, Washington, DC, 2023-11-01) Mattoo, Aaditya; Freund, Caroline; Mulabdic, Alen; Ruta, Michele
    This paper examines the reshaping of supply chains using detailed US 10-digit import data (tariff-line level) between 2017 and 2022. The results show that while US-China decoupling in bilateral trade is real, supply chains remain intertwined with China. Over the period, China’s share of US imports fell from 22 to 16 percent. The paper shows that the decline is due to US tariffs. US imports from China are being replaced with imports from large developing countries with revealed comparative advantage in a product. Countries replacing China tend to be deeply integrated into China’s supply chains and are experiencing faster import growth from China, especially in strategic industries. Put differently, to displace China on the export side, countries must embrace China’s supply chains. Within products, the reorientation of trade is consistent with a “China + 1” strategy, as opposed to diversified sourcing across multiple countries. There is some evidence of nearshoring, but it is exclusive to border nations, and there is no consistent evidence of reshoring. Despite the significant reshaping, China remained the top supplier of imported goods to the US in 2022.