The Great Reversal: Prospects, Risks, and Policies in International Development Association (IDA) Countries

In Half of IDA Countries, Income Gap with Wealthiest Economies is Widening

Report by the World Bank highlights the widening income gap between the world’s most vulnerable countries and the wealthiest economies, emphasizing the importance of Sustainable Development Goals (SDGs) in addressing this issue.

Introduction

A new report published by the World Bank titled “The Great Reversal: Prospects, Risks, and Policies in International Development Association Countries” provides a comprehensive analysis of the opportunities and challenges faced by 75 countries eligible for grants and low-interest loans from the World Bank’s International Development Association (IDA). These countries, which represent a quarter of the global population, are crucial for achieving global prosperity and sustainable development.

Key Findings

• Half of the IDA countries have experienced slower growth in average per capita incomes compared to wealthy economies, leading to a widening income gap.
• One out of three IDA countries is now poorer than before the COVID-19 pandemic.
• Extreme poverty rates in IDA countries are more than eight times higher than the global average, with one in four people living on less than $2.15 a day.
• IDA countries account for 90% of all people facing hunger or malnutrition.
• Half of these countries are either in debt distress or at high risk of it.

Potential and Challenges

Despite these challenges, IDA countries possess significant potential for sustainable development:

• They have a growing share of young workers, offering a demographic dividend.
• They are rich in natural resources and have high potential for solar energy generation.
• They possess critical mineral deposits essential for the global energy transition.

Policy Recommendations

To overcome the challenges and realize their potential, IDA countries need to implement ambitious policies and receive substantial financial support:

• Improving education and health outcomes to harness the demographic dividend.
• Strengthening policy frameworks and institutions for better economic management.
• Implementing structural reforms to enhance human capital and boost investment.

International Support

The report emphasizes the need for significant international financial support to lower the risk of “protracted stagnation” in IDA countries. Stronger global cooperation on issues such as climate change, debt restructuring, and cross-border trade and investment is crucial to prevent a lost decade in development.

Conclusion

The World Bank highlights the urgent need to address the widening income gap between IDA countries and wealthy economies. By focusing on the SDGs and implementing the recommended policies, IDA countries can unlock their potential for strong, sustainable, and inclusive growth, contributing to global prosperity and poverty reduction.

Sources

1. Report: The Great Reversal: Prospects, Risks, and Policies in International Development Association Countries
2. Website: https://www.worldbank.org/en/research/publication/prospects-risks-and-policies-in-IDA-countries
3. Facebook: http://www.facebook.com/worldbank
4. Twitter: http://www.twitter.com/worldbank
5. YouTube: http://www.youtube.com/worldbank

SDGs, Targets, and Indicators

1. SDG 1: No Poverty

   • Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
   • Indicator 1.2.1: Proportion of population living below the national poverty line, by sex and age group.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries.
   • Indicator 8.1.1: Annual growth rate of real GDP per capita.
   • Indicator 8.1.2: Proportion of informal employment in non-agriculture employment, by sex.

3. SDG 10: Reduced Inequalities

   • Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average.
   • Indicator 10.1.1: Growth rates of household expenditure or income per capita among the bottom 40 percent of the population and the total population.

4. SDG 13: Climate Action

   • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
   • Indicator 13.1.1: Number of deaths, missing persons, and directly affected persons attributed to disasters per 100,000 population.

Table: SDGs, Targets, and Indicators

Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The SDGs addressed or connected to the issues highlighted in the article are SDG 1: No Poverty, SDG 8: Decent Work and Economic Growth, SDG 10: Reduced Inequalities, and SDG 13: Climate Action.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the specific targets identified are:
– Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
– Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries.
– Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average.
– Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets. These indicators include:
– Indicator 1.2.1: Proportion of population living below the national poverty line, by sex and age group.
– Indicator 8.1.1: Annual growth rate of real GDP per capita.
– Indicator 8.1.2: Proportion of informal employment in non-agriculture employment, by sex.
– Indicator 10.1.1: Growth rates of household expenditure or income per capita among the bottom 40 percent of the population and the total population.
– Indicator 13.1.1: Number of deaths, missing persons, and directly affected persons attributed to disasters per 100,000 population.

These indicators can be used to measure progress towards reducing poverty, sustaining economic growth, reducing inequalities, and strengthening resilience to climate-related hazards and natural disasters.

4. Table: SDGs, Targets, and Indicators

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Source: worldbank.org

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