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Afghanistan

Why do smaller countries benefit from greater trade with their neighbors?

Sanjay Kathuria's picture
Quay cranes on docks Sri Lanka. Dominic Sansoni/World Bank

The real end winner of NAFTA (North American Free Trade Agreement) is going to be Mexico […]” said then Mexican president Vicente Fox, in 2001. He was referring to Mexico’s gains from trade integration with the USA through NAFTA.

Vicente Fox was right. Mexico has continued to make sustained gains in trade over a 20 year period after signing NAFTA in 1994 with the US, its much larger partner (figure 1).



​Opening up trade is not easy because losses can be immediate, while gains, despite being potentially much larger and more widespread, are often dispersed over time. Producers that may sustain losses from more open imports are often well organized and can hold up reforms quite effectively. Moreover, when one of the countries involved in mutual trade liberalization is disproportionately large, it enables the smaller country lobbies to raise the specter of being swamped by imports from its larger partner.

In the case of South Asia, a history of political differences further complicates deeper trade and economic cooperation within the region. Under these circumstances, opening up trade to neighbors requires strong leadership and a bold vision about the role of trade and regional integration in economic development.

The Impact of Education Management Information Systems: The Case of Afghanistan

Samantha de Silva's picture


In some fragile states, where the education sector has faced direct attack, physical monitoring of development programs becomes a hugely complex and dangerous task. In this context, Afghanistan is an excellent example of how investment in Education Management Information Systems (EMIS) can strengthen overall monitoring systems in a country.  In some provinces, there has been an improvement in accountability and transparency but challenges remain.    

This Week in #SouthAsiaDev: February 6th, 2015

Mary Ongwen's picture

Aid for Peace? Let’s Dig Deeper

Robert Wrobel's picture

In their article “Aid for Peace,” Berman, Felter and Shapiro question some of the basic assumptions underpinning delivery of humanitarian development aid in zones of conflict and argue persuasively that small, targeted programs designed based on a deep contextual understanding of the drivers of a conflict produce better outcomes than programs aimed at spreading around as much cash as possible. As a development practitioner with experience in conflict-affected parts of Afghanistan, the Philippines, and Aceh, Indonesia, I ultimately agree with this conclusion and commend the authors’ innovative work through Empirical Studies of Conflict Project (ESOC). However, I would strongly caution against generalizing too broadly from the Philippines’ experience as to what constitutes “smart aid” in other conflict zones. It’s worth noting in particular that studies of community-driven development and conditional cash transfer programs implemented in other countries affect conflict outcomes in ways that are entirely at odds with the Philippines’ experience.
 

9 New Year Wishes from South Asian Youth

Delilah Liu's picture
Students from Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka in Bhutan expressed their wish for a more integrated South Asia. 
Photo by: Rubaiya Murshed

After the New Year arrives, most of us have the habit of making New Year resolutions. Whether it is a higher salary, a promotion, world travel or even weight loss, some wishes are similar among us and our friends. This year, after meeting the students attending the 11th South Asia Economic Students Summit (SAESM), I realized how New Year wishes can be vastly different from one corner of the world to another. 
 
Here’s a sample of New Year “wish lists” of the South Asian students who attended the 11th SAESM in Thimphu, Bhutan held between Dec. 23-28, 2014. 
 
“I hope South Asia can have a similar program to ERASMUS in Europe, where students are allowed to spend one year or a semester working or interning in a different South Asian country."
- Phalguni, Kirorimal College, India


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