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ECONOMICS 2


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INTERNATIONAL DEVELOPMENT ASSOCIATION

The International Development Association (IDA) is the part of the World Bank that helps the world’s poorest countries. Established in 1960, IDA aims to reduce poverty by providing interest-free loans and grants for programs that boost economic growth, reduce inequalities and improve people’s living conditions.

IDA complements the World Bank’s other lending arm—the International Bank for Reconstruction and Development (IBRD)—which serves middle-income countries with capital investment and advisory services. IBRD and IDA share the same staff and headquarters and evaluate projects with the same rigorous standards.

IDA is one of the largest sources of assistance for the world’s 82 poorest countries, 39 of which are in Africa. It is the single largest source of donor funds for basic social services in the poorest countries. IDA lends money (known as credits) on concessional terms. This means that IDA credits have no interest charge and repayments are stretched over 35 to 40 years, including a 10-year grace period.

Since its inception, IDA credits and grants have totaled US$161 billion, averaging US$7–9 billion a year in recent years and directing the largest share, about 50 percent, to Africa.

Learn more HERE


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FINANCIAL ASSISTANCE SEES BIG INCREASE IN GIRLS ATTENDING SCHOOL IN BANGLADESH

CHALLENGE

In 1991, girls accounted for about 33 percent of children enrolled in secondary school and, of those, only a relatively small percentage passed the Secondary School Certificate.

APPROACH

The Bangladesh Female Secondary School Assistance Program, financed by International Development Association (IDA), supported a government program to improve access to secondary education for girls by providing tuition stipends. It improved the quality of schools through teacher training, provision of performance incentives to schools and students, and water and sanitation facilities. The project covered 119 of Bangladesh’s 480 sub-districts.

RESULTS

Girls’ enrolment in secondary school in Bangladesh jumped to 3.9 million in 2005, from 1.1 million in 1991, including an increasing number of girls from disadvantaged or remote areas. This has enabled Bangladesh to achieve one of its Millennium Development Goals ahead of time – gender parity in education.

HIGHLIGHTS

* Female enrollment, as a percentage of total enrollment, increased from 33 percent in 1991 to 48 percent in 1997 and about 56 percent in 2005.
* Secondary School Certificate pass rates for girls in the project area increased from 39 percent in 2001 to 58 percent in 2006.
-* 66,000 members of school management committees have been trained in school management accountability, with a focus on education quality and a conducive learning school environment.
* 6,666 schools – many more than originally targeted – are currently participating in the program, through a cooperation agreement with the Ministry of Education.
* Indirect benefits of the project included delays in the age of marriage and reduced fertility rates, better nutrition, and more females employed with higher incomes.

IDA CONTRIBUTION

* US$185 million since 1993.
* In the early 1990s, the government of Bangladesh formulated its policy for enhancing girls’ access to secondary education. IDA established implementation arrangements to take forward the government’s policy initiative on a major scale.
* IDA helped build and strengthen a program management unit within the Ministry of Education that now manages and oversees the stipend program.
* A key innovation was the direct funding mechanism featuring the transfer of stipends directly from banks to individual girls’ bank accounts.

PARTNERS

The Asian Development Bank, the Canadian International Development Agency, the European Commission and the Norwegian Agency for International Development.

NEXT STEPS

The program has proven ground-breaking in addressing girls’ access to education, and is recognized worldwide as a pioneering undertaking. As a result, the government of Bangladesh decided to expand the program nationwide. A number of other countries, learning from Bangladesh experience, have implemented similar stipend or conditional cash transfer programs with IDA support. Having achieved gender parity at the country level, the government is now focusing more on how to reach economically and geographically disadvantaged girls - as well as poor boys. Along with the stipend program, the Ministry of Education is undertaking reforms aimed at improving education quality through better governance and accountability. IDA is supporting this through a series of education sector development credits.


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HARVESTING SALT AN IMPORTANT INDUSTRY IN SENEGAL

Lying along an inland strip of Atlantic Ocean coastline, the village of Palado in western Senegal sizzles in the afternoon sun. The air is so hot that the baobab trees tremble in the haze. Most of the villagers are working in the white-hued fields by the water, harvesting salt.

"We have been doing so for generations," says the Village Chief, Hamath Diouf. "For Palado and all the other coastal villages of this region, salt has always been a source of life." Women comb the fields, prepare shiny piles of salt which they then carry on their heads to even bigger heaps. Once collected, the salt is packed by the men, transported by horse-cart to the main asphalt road six kilometres away and sold on the roadside by the ton.

While it might appear that nothing has changed in the salt-making process here for centuries, in fact there is a big difference – even from a decade ago: iodisation. These days in Palado, the salt is iodized by a special (UNICEF-supplied) machine before being packed and sold. The function of that machine is pivotal because iodine is a fundamental nutritional requirement for every child and adult.

Iodine deficiency is the world’s single greatest cause of mental retardation, affecting the nervous system and foetal development, and leading to speech and hearing defects.

One of its most severe manifestations is cretinism, which is a serious and irreversible form of mental and physical retardation. Cretinism and goitre, a large swelling of the thyroid gland in the neck caused by a lack of iodine, are most prevalent in the regions of Tambacounda in eastern Senegal and Kolda in the south.

In coastal areas, the sea and soil are rich in iodine, so the nutrient is absorbed in food. However, the further inland ones goes in Senegal, the less there is in the soil, which leads to iodine-poor diets, and consequently, health problems. Facing an iodine deficiency problem, the Government of Senegal launched a national salt iodisation strategy in 1994, inspired by the positive experiences of other countries and by strong global advocacy, in which UNICEF played a major role.

Thanks in part to UNICEF’s investment and input, villages like Palado have become models of self-development and even a magnet for seasonal workers. Plus, the salt which is being iodised at local level is bringing health benefits to consumers further inland.

There are two major benefits of having all salt-producing villages in a particular area team up around an iodisating unit. Firstly, the premium paid on each sack of iodised salt sold is deposited by the villagers in a common account aimed at covering the cost of maintenance of the iodisation equipment. This system assures the sustainability of the machinery.

Secondly, recognising the importance of social security and infrastructure, villagers work one day per week in a common salt field. The profits derived from this special field are devoted entirely to local development.

These days, all the children of Palado and the neighbouring villages go to school. In 1998, when one of the villagers was struck by meningitis, the social fund paid for hospitalization and medicines. In 1999, the village health hut was provided with new drugs and a surveyor was contracted to plan a running-water connection. In 2002, a year of scant rain, the village chief distributed US$700 from the social fund to enable families to buy food during the dry season. "I am planning to do the same this year, but this time I will give the money to the women. They have so many projects in mind and they deserve a chance," Hamath says, his eyes sparkling when he talks about his community.

Read whole article: HERE