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World Bank projects bright Indian growth for 2016-17 amid weak global growth

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A World Bank report projects India’s growth at 7.8% in 2016-17 amid projected weak global growth at 2.95%

Washington: India, the dominant economy in the South Asian region, is projected to grow at a faster 7.8 percent in fiscal 2016-17 with growth in the region, speeding up to 7.3 percent in 2016 from 7 percent in the year just ended, a new World Bank report said on Wednesday.

Weak growth among major emerging markets with only the South Asia region, led by India, projected to be a bright spot, will weigh on global growth in 2016. But economic activity should still pick up modestly to a 2.9 percent pace, from 2.4 percent growth in 2015, as advanced economies gain speed, said the World Bank’s January 2016 Global Economic Prospects released here.

South Asia region is a net importer of oil and will benefit from lower global energy prices. At the same time, because of relatively low global integration, the region is shielded from growth fluctuations in other economies, the report said.

Simultaneous weakness in most major emerging markets is a concern for achieving the goals of poverty reduction and shared prosperity because those countries have been powerful contributors to global growth for the past decade, the bank said.

Spillovers from major emerging markets will constrain growth in developing countries and pose a threat to hard-won gains in raising people out of poverty, the report warned.

Global economic growth was less than expected in 2015, when falling commodity prices, flagging trade and capital flows, and episodes of financial volatility sapped economic activity.

Firmer growth ahead will depend on continued momentum in high income countries, the stabilization of commodity prices, and China’s gradual transition towards a more consumption and services-based growth model.

Developing economies are forecast to expand by 4.8 percent in 2016, less than expected earlier, but up from a post-crisis low of 4.3 percent in the year just ended.

Growth is projected to slow further in China, while Russia and Brazil are expected to remain in recession in 2016.

“There is greater divergence in performance among emerging economies. Compared to six months ago, the risks have increased, particularly those associated with the possibility of a disorderly slowdown in a major emerging economy,” said World Bank Group Vice President and Chief Economist Kaushik Basu.

“A combination of fiscal and central bank policies can be helpful in mitigating these risks and supporting growth.”

Although unlikely, a faster-than-expected slowdown in large emerging economies could have global repercussions, the report said.

Risks to the outlook also include financial stress around the US Federal Reserve tightening cycle and heightened geopolitical tensions, it said. (Arun Kumar, IANS) (Photo: www.odishanewsinsight.com)

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World could see 140mn climate migrants by 2050: Report

World Bank Chief Executive Officer Kristalina Georgieva said the new research provides a wake-up call to countries and development institutions

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climate change is happening at a quickened pace and thus leading to melting of huge ice bergs
climate change is happening at a quickened pace and thus leading to melting of huge ice bergs
  • Three regions can witness migration due to climate change
  • The regions also include South Asia
  • It is important to take measures to control climate change

Three densely populated regions of the world, including South Asia, could see internal climate migrants of over 140 million people in the next three decades if climate change impacts continue, a new World Bank Group report finds.

The report, “Groundswell — Preparing for Internal Climate Migration”, released on Monday, finds that unless urgent climate and development action is taken globally and nationally, the three regions — Sub-Saharan Africa, South Asia and Latin America — together could be dealing with tens of millions of internal climate migrants by 2050.

World can witness migration of many due to climate change. VOA
World can witness migration of many due to climate change. VOA

These people will be forced to move from increasingly non-viable areas of their countries due to growing problems like water scarcity, crop failure, sea-level rise and storm surges.

The “climate migrants” would be an addition to the millions of people already moving within their countries for economic, social, political or other reasons, the report warns. The exodus could create a looming humanitarian crisis and will threaten the development process.

Also Read: Climate change driving dramatic rise in sea levels: NASA

However, with concerted actions — including global efforts to cut greenhouse gas emissions and robust development planning at the country level — this scenario could be dramatically reduced by up to 80 per cent or more than 100 million people.

The report is the first and most comprehensive study of its kind to focus on the nexus between slow-onset climate change impacts, internal migration patterns and, development in these three developing regions of the world.

World Bank Chief Executive Officer Kristalina Georgieva said the new research provides a wake-up call to countries and development institutions. “We have a small window now, before the effects of climate change deepen, to prepare the ground for this new reality,” Georgieva said.

It is important to control climate change now.

“Steps cities take to cope with the upward trend of arrivals from rural areas and to improve opportunities for education, training and jobs will pay long-term dividends. It’s also important to help people make good decisions about whether to stay where they are or move to new locations where they are less vulnerable.”

The research team, led by World Bank Lead Environmental Specialist Kanta Kumari Rigaud, include researchers and modellers from CIESIN Columbia University, CUNY Institute of Demographic Research, and the Potsdam Institute for Climate Impact Research.

Also Read: Maharashtra’s climate action plan yielded disappointments

They applied a multi-dimensional modelling approach to estimate the potential scale of internal climate migration across the three regions. They looked at three potential climate change and development scenarios, comparing the most “pessimistic” (high greenhouse gas emissions and unequal development paths), to “climate-friendly” and “more inclusive development” scenarios in which climate and national development action increases in line with the challenge. Across each scenario, they applied demographic, socio-economic and climate impact data at a 14 sq.km grid-cell level to model likely shifts in population within countries.

This approach identified major “hotspots” of climate in- and out-migration – areas from which people are expected to move and urban, peri-urban and rural areas to which people will try to move to build new lives and livelihoods. “Without the right planning and support, people migrating from rural areas into cities could be facing new and even more dangerous risks,” the report added. IANS