There is now a huge window of opportunity for South Asia to create more apparel jobs, as rising wages in China compel buyers to look to other sourcing destinations. Our new report – Stitches to Riches?: Apparel Employment, Trade, and Economic Development in South Asia – estimates that the region could create 1.5 million new apparel jobs, of which half a million would be for women. And these jobs would be good for development, because they employ low-skilled workers in large numbers, bring women into the workforce (which benefits their families and society), and facilitate knowledge spillovers that benefit the economy as a whole.
But for these jobs to be created, our report finds that apparel producers will need to become more competitive – chiefly by (i) strengthening links between the apparel and textile sectors; (ii) moving into design, marketing, and branding; and (iii) shifting from a concentration on cotton products to including those made from man-made fibers (MMFs) – now discouraged by high tariffs and import barriers. These suggestions recently drew strong support from panels of academics and representatives from the private sector and government when the report was launched mid-year in Colombo, Delhi, Dhaka, and Islamabad. South Asia is now moving on some of these fronts but a lot more could be done.
Moving up the apparel value chain
Stitches to Riches? finds that South Asia’s abundant low-cost labor supply makes it extremely cost competitive (except for possibly Sri Lanka). But rapidly rising living costs in apparel manufacturing hubs, coupled with international scrutiny, are increasing pressure on producers to raise wages. Plus, countries like Ethiopia and Kenya, who enjoy a similar cost advantage, are entering the fray, and some East Asian countries already pose a big challenge. The good news is that the policy reforms needed to keep the apparel sector competitive would likely benefit other export industries and transform economies (view end of the blog).
Both financial inclusion and financial stability are high on international policy makers’ agenda. For instance, the G-20 has called for global commitments to both advancing financial inclusion (the Maya Declaration and the Global Partnership for Financial Inclusion) and enhancing financial stability (the Financial Stability Board, Basel III Implementation, and other regulatory reforms). One challenge is that there can be important policy trade-offs between the two objectives.
A rapid increase in financial inclusion in credit, for example, can impair financial stability, because not everyone is creditworthy or can handle credit responsibly—as illustrated in the last decade by the subprime mortgage crisis in the United States and the Andhra Pradesh microfinance crisis in India. In addition, trade-offs between inclusion and stability could arise as an unintended consequence of bad or badly implemented polices.
The Financial Data Team of the Development Economics Data Group (DECDG) is pleased to announce the launch of our Online Quarterly Bulletin’s second edition, an e-newsletter spotlighting debt statistics news, trends, and events. The current issue features the following:
Organizing Public Sector Debt (QPSD) statistics to maximize their analytical use and international comparability
Bond Issuance by low- and middle-income countries in 2015
- External debt trends for high-income countries in 20105
- Debt statistics-related event summaries
One highlight in this edition is the introduction of the D1-D4 matrix, a cascading approach used to present the QPSD data. The primary aim of the QPSD initiative is to institute a standardized measure for each dimension of public sector debt. The QPSD database displays country data for the same set of debt instruments such as 1. debt securities, 2. loans, 3. currency and deposits, 4. Special Drawing Rights, 5. Other accounts payable, and 6. insurance, pensions, and standardized guarantee schemes for the following institutional sectors of the economy: 1) general government, (2) central government, (3) budgetary central government, (4) non-financial public corporations (5) financial public corporations, and (6) the total consolidated public sector debt.
Efficient, accessible and safe retail payment systems and services are necessary to extend access to transaction accounts to the 2 billion people worldwide who are still unserved by regulated financial service providers.
Having interoperable payment services addresses several important challenges regarding financial access and broader financial inclusion. This is because via a single transaction account.
Establishing payments interoperability is a formidable task. Our experience shows it is important to find the right balance between cooperation and competition when reforming retail payment systems. Despite the advantages that interoperability brings, not all market participants will necessarily embrace interoperability initiatives, e.g. if they fear to lose their dominant position and/or competitive advantage. In an earlier Blog the role authorities to facilitate interoperability has been discussed. Central banks are a key driving force in any payment system reform, but they cannot – and should not – act alone. Other regulators – such as financial and telecom regulators – are also important to achieving interoperability.
- Philip Stephens, an associate editor and chief political commentator of the Financial Times
As a country that is particularly vulnerable to flooding, Malawians know that they cannot halt the forces of nature, but they can prepare and plan for their impacts – and they did. Supported by the Global Facility for Disaster Reduction and Recovery (GFDRR) and the World Bank, the Government of Malawi undertook a series of community mapping activities in which it collected data about the environment for a flood risk modeling exercise and other preparedness activities. So in January 2015, when Malawi experienced its most devastating flood in a century, the data that its government collected was used to support recovery activities.
Robust and actionable information like this can help those at risk understand and prepare for hazards, saving lives and assets. However, even in this era of big data and hyper-connectivity, when one would think that every place on earth is already mapped in great detail, such information is often inaccessible, disparate, or altogether nonexistent. Even as recently as this month’s earthquake on the border of Tanzania and Uganda, people still scrambled for spatial information. Doing so in the moments after a disaster, though, is too late.
As I witnessed the official launch of the Saving One Million Lives Program for Results (SOML PforR), a government-led initiative supported by a $500 million World Bank International Development Association credit, I was overcome by several emotions, the foremost of which was hope.