My work with small-hold cocoa farmers in Nicaragua has taught me that it is not true that organic production is more expensive, complicated to learn and unsustainable.
The Sustainable Agroforestry Cocoa Production Project (COCOA-RAAN) was implemented within the Autonomous Region of the North Atlantic, the largest in Nicaragua, with a budget of just US$ 1.9 million.
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It’s tempting to think that this is just another Earth Day – after all, it has been celebrated since 1970. But perhaps this year should be different, at least in Latin America and the Caribbean.
This year marks the third year of drought for Northeast Brazil - still affecting some 10 million people, according to recent reports; a year when Buenos Aires and Rio de Janeiro suffered torrential rains and floods, impacting hundreds of thousands of people in these large metropolitan areas.
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This year, World Health Day focuses on hypertension. Specialists report a clear link between excessive salt consumption and high blood pressure. In this blog, Venezuelan chef Sumito Estévez explains how the use of salt in our cooking has changed. He also shares some ideas for reducing salt consumption and reminds us that governments are also responsible for taking measures to decrease consumption.
Coq Au Vin (Chicken in red wine) is a delicious traditional French dish. Those who have had the privilege of preparing this slow-cooked recipe know that once the sauce has thickened, practically no extra salt is needed.
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Behind Latin America’s economic boom is hidden a wave of crime and violence, hurting all citizens, particularly the poorest, who have no way of protecting themselves.
Citizen insecurity has a variety of complex causes, ranging from organized crime, to outdated, ineffective justice and law enforcement systems, to domestic violence, which affects one in three women worldwide.
I was excited to read early this week a news dispatch about London’s ambitious bike plan.
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Last Friday was International Women’s Day, but before adding to the general celebratory messages in cyberspace, I would like to tell you about a specific case that truly deserves to be celebrated.
If you are reading this blog while drinking coffee or after a coffee break, this story has to do with you.
Right to Information (RTI) laws can be a useful instrument for improving transparency – if the political will for implementation is sustained, and if the broader governance environment provides the enabling conditions for the exercise of the law. A research project that studied the implementation of RTI laws in a number of countries showed that implementation has been very uneven across countries. In some countries, RTI laws had been leveraged effectively for extracting information in a number of important areas, ranging from public expenditures, to performance and procurement, and exposing instances of corruption. In other countries, the existence of an RTI law had little impact in any of these areas, and oversight and capacity building mechanisms had either not been set up, or not functioned effectively.
The findings of the study are not surprising. The implementation gap between de jure and de facto reforms in countries faced with capacity constraints and political economy challenges is well-known. Yet, international agencies have pushed policy reforms without adequate attention to the constraints and challenges of implementation. The pressure to win support and legitimacy with international aid agencies has been an important driver of the adoption of RTI laws. The right has also been recognized in international human rights conventions, and more recently has gained increasing international attention (for instance, the existence of a law is one of the considerations for membership in the Open Government Partnership). Further, pressure from domestic constituencies has also propelled political actors to champion the law. But, once passed, capacity limitations, the erosion of political will, and active resistance have been important impediments to realizing the potential of RTI.
Tell a journalist that they’ll be covering a story on a subject they’re passionate about and you’ll make their day. Tell a cook they’ll be tasting different dishes made with the same ingredient, they’ll be on cloud nine.
I’m both a journalist and a cook. As a journalist I’m passionate about how we will face the challenge of feeding an increasing number of people with limited resources. As a cook, I love to explore the nutritional and flavor possibilities a single ingredient can offer.
The world is increasingly interconnected, and nowhere is a better example of that than the border between Mexico and the US. Lined with factories, the division between the two countries is blurred by a comprehensive trade agreement, international production chains, and other economic and social ties. On the Mexican side of the border, close to 3,000 factories import components and raw materials, workers assemble goods, and most of the finished products are destined for the US.
Is this good for Mexican workers? These export-oriented industries provide nearly two million jobs, a boon for development. But it turns out that these jobs can disappear quickly: the economic health of the US has a large impact on Mexican workers’ employment status, with downturns and booms amplified through a number of channels. Although the US economy is rarely volatile, this is an important finding that could have policy implications around the world. Mexico is similar to the increasing number of countries that have encouraged export-oriented industry as a strategy for development and enacted trade reforms integrating the local economy with the world market.
Financial Markets…Spanish and Italian government bonds bounced back from their earlier losses, with their benchmark 10-year yields dropping 6 basis points to 5.17% and 4 bps to 4.36%, as a report showed German investor confidence surged to the highest level in nearly three years this month, boosting risk-appetite for the region’s high-yielding debt. Notably, Spain sold €4 billion ($5.35 billion) of 3- and 9-month bills with an average yield of 0.421%, down from 0.441% in January auction.
Asian equities advanced on Tuesday, with the benchmark MSCI Asia Pacific Index heading for an 18-month high closing, amid robust corporate-earnings reports. But gains were somewhat limited on worries that Chinese government will try to cool the property market, pushing China’s Shanghai Composite Index lower by 1.6%.
The Standard &Poor’s cut its sovereign credit rating on Tunisia by one level ‘BB-‘ (three notches below investment grade) from 'BB', citing increased political risk in the wake of the February 6 assassination of a prominent leftist opposition politician, Chokri Belaid. The downgrade was the third one by the rating agency since January 2011.
High-income Economies…Investor confidence in Germany rose to a three year high in February, with the ZEW Indicator of Economic Sentiment, jumping to 48.2 in February from 31.5 in January. This was the third consecutive increase for the index which aims to predict economic developments six months in advance, and the highest reading since April 2010. Economic expectations for the euro area climbed 11.2 to 42.4 in February.
Greece’s current account deficit narrowed sharply to €0.54 billion in December from € 0.85 billion in November helped by falling imports and lower interest payments after a sovereign debt cut. For the year as whole, the deficit shrank to 2.9% of GDP in 2012 from 9.9% the previous year - its lowest level since 1999 when it joined the euro.
Construction output in the Euro Area continued to fall in December, declining by 4.8% (y/y) compared to 4.7% in November, led by weakness in Portugal, Poland, Bulgaria and the UK. On a monthly basis, output decreased 1.7% (m/m) in December, after dropping 0.4% in the previous month.
Developing Economies…East Asia and Pacific: Thailand’s GDP grew briskly by 3.6% (q/q) in Q4 of 2012, up from 1.5% (q/q) in the previous quarter. Growth for the full year came in at 6.4% up from 0.1% in 2011, reflecting strong domestic demand following the government’s stimulus post 2011 floods.
Europe and Central Asia: Russia’s retail sales slowed in January, growing by 3.5% (y/y) compared to 5.5% (y/y) in December. This is the slowest pace in 35 months as private consumption is weakening.
Latin America and the Caribbean: Mexico’s GDP growth accelerated in the Q4 growing by 3.1% (q/q, saar) up from 1.4 (q/q, saar) in Q3. Growth for the entire year was flat at 3.9% in 2012 as strong domestic demand offset weaker exports.
Middle East and North Africa: Tunisia’s industrial production accelerated in November 4.2% (y/y) compared to 0.3% (y/y) in October 2012. Higher growth partly reflects base year effects, with the expansion led by growth in energy production and manufacturing.
Sub-Saharan Africa: Nigeria’s inflation dropped to 9% (y/y) in January from 12% in (y/y) in December 2012 bringing inflation in line with the central bank’s target (<10%).
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The Montes de María, between the departments of Sucre and Bolivar in the north of Colombia, has been the stage for violent conflict for a long time. In this region, people can't trust their neighbors, poverty is common and opportunities scarce.
In 2004 , the program “Paz y Desarrollo” (Peace and Development) of the Colombian government, co-financed by the World Bank, began to support civil society initiatives to achieve local development and build peace.
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There is a statistic that both astonishes and troubles me: the leading cause of injury to women is not traffic accidents, crime or serious disease. It is domestic violence.
One in four women will fall victim to this type of violence in her lifetime. In other words, a quarter of the female population, a shocking figure that reminds us that these are not anonymous women, but rather acquaintances, colleagues, neighbors, people we run into on the subway every day.
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In the context of a global economic slowdown and the search for balanced economic growth, I offer some elements for discussion.
All countries aspire to strong, sustainable economic growth given that it makes reducing poverty and expanding opportunities for all citizens much more feasible. There is no doubt about that. But how are high rates of growth achieved over the long term?
Financial Markets…Global stock markets rallied on Friday, with the benchmark MSCI world equity index hitting a 20-month high level of 552.16, as positive economic data from the two world’s largest economies boosted market sentiment. Along with robust U.S. labor and housing market reports, China’s better-than-expected fourth-quarter GDP growth (y/y), buoyant industrial production and retail sales figures added to signs that the global economic recovery is gaining traction.
Japanese yen fell further against the dollar, sliding to a 2 1/2 –year low of 90.21 per dollar in early-morning New York trade, amid speculation the Bank of Japan may start open-ending asset buying program later this month. The yen has depreciated 13% versus the dollar in the past 3 months as the Japanese government signaled greater stimulus measures to boost slumping economy, which may lower the currency and stoke inflation.
U.S. Treasuries rose slightly on Friday, with the benchmark 10-year yields sliding 2 basis points from the highest level in a week to 1.87%, as growing concerns over the country’s debt ceiling debate revived demand for the safe-haven government securities. U.S. lawmakers need to raise the nation’s $16.4 trillion debt ceiling next month, and they will also have to deal with the $110 billion in automatic spending cuts and an expiring short-term measure that funds government agencies in March.
High-income Economies…US consumer confidence fell for the second month in a row in December, with the Thomson Reuters/University of Michigan consumer confidence index declining to 71.3 from 72.9 the previous month. More than a third of consumers referred to concerns related to fiscal cliff negotiations. The consumer expectations sub-index slipped to its lowest since November 2011.
UK retail sales fell 0.1% (m/m) in December, with sales only 0.3% (y/y) higher than a year earlier, underscoring the weakness of consumer spending as the economy continues to struggle after emerging from a double-dip recession in the third quarter of 2012.
Poland's industrial production plunged 14.2% (m/m) in December, the steepest fall in almost four years, with annual industrial output falling 10.6% (y/y). A part of the decline was due to fewer working days in December, but also reflects weak domestic demand and difficult economic conditions in key Euro Area export markets.
New industrial orders in Spain fell 1.5% (y/y) in November, reversing the 5.5% gain seen in October. While consumer goods orders fell 1.4% (y/y), orders of capital goods and energy products increased 4.7% and 7.5%.
Developing Economies…China's GDP growth was reported at 7.9% (y/y) in the fourth quarter of 2012 showing a strong rebound from 7.4% growth in the third quarter.
Quarterly GDP growth rates have been revised for the last three quarters of 2011 and the third quarter of 2012. The revised quarterly growth rates were reported at: 11Q1 - 2.2%, 11Q2 - 2.4%, 11Q3 - 2.3%, 11Q4 - 1.9%, 12Q1 - 1.5%, 12Q2 - 2.0%, 12Q3 - 2.1% and 12Q4 - 2.0% respectively compared with the earlier 11Q1 - 2.2%, 11Q2 - 2.5%, 11Q3 - 2.4%, 11Q4 - 1.7%, 12Q1 - 1.5%, 12Q2 - 2.0% and 12Q3 - 2.2%. The revised quarterly numbers suggest a deceleration in GDP growth to 8.2% in the fourth quarter of 2012 from 8.7% reported in the third quarter.
Annual GDP growth was reported at 7.8% in 2012, the weakest growth rate since 1999 and lower than 9.3% achieved in 2011.
Industrial production in China grew 10.3% (y/y) in December, accelerating from 10.1% rise in November. Retail sales expanded 15.2% (y/y) in December, faster than the 14.9% growth in November. China's urban fixed asset investment in the 12 months through December increased 20.6% (y/y). Monthly price increase for the newly built homes was registered in 54 of the 70 cities surveyed. On an annual basis, 40 cities reported increase in prices in December compared to 25 cities in November.
Chile's central bank kept its monetary policy rate steady at 5.0%. Inflation in Chile eased to 1.5% in December 2.1% in November remaining below the central bank’s 3.0% annual target.
Mexico's central bank left its benchmark interest rate unchanged at 4.50%, but indicated that it is considering monetary easing in light of weak growth and moderating inflation.
World Bank’s Global Economic Prospects, January 2013 featured in The Economist.
Financial Markets…U.S. Treasuries slid for the first time in four days, with the benchmark note yields 3 basis points to 1.62%, as a government report showed U.S. employers added more than forecasted jobs in November. U.S government bonds have advanced 2.8% this year as of yesterday, after gaining 9.8% in 2011 and 5.9% in 2010.
The Eonia swap rate (an estimate of compounded overnight borrowing costs in euros over the next three months) fell to 4.5 basis points on Friday, the lowest level since July, as investors speculated the European Central Bank is open to cut interest rates further. And the 3-month euro interbank offered rate (or Euribor), bank-to-bank lending rate, fell at a record low of 0.187%.
The dollar strengthened against the yen and euro following encouraging U.S. jobs data, climbing 0.3% to 82.66 yen and 0.4% to $1.2913, respectively. Meanwhile, Canadian dollar rallied versus its U.S. counterpart, climbing 0.3% to 98.82 cents per U.S. dollar, as the country’s unemployment rate fell to 7.2% from 7.4% last month.
High-income Economies…U.S. nonfarm payroll employment rose by 146,000 in November, suggesting that the impact of Hurricane Sandy on overall U.S. employment had been limited. But the rate remains well below the 200,000-250,000 monthly gains needed for a sustained improvement in the labor market as employers remain reluctant to hire amid U.S. “fiscal cliff” risks. The unemployment rate, however, edged down by 0.2 percentage points to a four-year low of 7.7%, mostly because of people dropping out of the labor force.
Reflecting uncertainties relating to impending tax increases and spending cuts, the outlook of U.S. consumers deteriorated sharply in December, with the Thomson Reuters/University of Michigan consumer sentiment index falling to 74.5 in December, the lowest since August, from 82.7 in November.
German industrial production fell 2.6% (m/m) in October, a faster pace of decline compared with a 1.3% drop in September, suggesting that the Euro Area debt crisis is taking a toll on Europe’s largest economy. Earlier data had shown that industrial orders were supported by strengthening foreign demand (partly from developing countries), but domestic demand has continued to weaken.
U.K. industrial production fell 0.8% (m/m) in October, a slower pace of decline than the 2.1% monthly fall in September. On a year-on-year basis, industrial output was 3% (y/y) lower in October, compared with -3.2% (y/y) in September.
Revised data showed that Greek GDP shrank a slightly smaller 6.9% (y/y) in the third quarter, compared with a 7.2% decline reported earlier.
The pace of economic contraction in Czech Republic accelerated in the third quarter to an annualized pace of about 1.2% (q/q) from 0.8% recorded in the second quarter. On a year-on-year basis, Czech Republic’s GDP contracted by 1.3% (y/y) in the third quarter of 2012, compared with 1% (y/y) decline in the second quarter.
Hungary’s GDP continued to contract in the third quarter at an annualized pace of about 0.8% (q/q). On a year-on-year basis, Hungary’s GDP contracted by 1.5% (y/y) in the third quarter of 2012, compared with 1.2% (y/y) declined in the second quarter.
Developing Economies…The Central Bank of Egypt held its benchmark overnight deposit rate steady at 9.25%. Headline inflation rose to 6.7% in October from 6.22% in September on a sharp rise in the prices of butane gas cylinders, partly due to bottlenecks in distribution channels, despite moderating food prices.
Brazil’s inflation accelerated insignificantly in November to 5.53% (y/y) from 5.45% in October with the prices of all key components in consumer basket showing insignificant rise.
Chile’s inflation moderated to 2.1% (y/y) in November from 2.9% in October.
Mexico’s inflation moderated to 4.18% in November from 4.6% in October on easing of food prices following a temporary spike related to adverse weather and the outbreak of avian flu in western Mexico.
Peru's central bank held its policy rate unchanged at 4.25%. Peru's inflation rate slowed to 2.66% in November under the central bank’s 3% inflation target from 3.25% in October on moderating food prices.
Malaysia's exports fell 3.2% (y/y) in October from 2.6% increase in September on continued weak demand from major trade partners and moderating prices for Malaysia's commodity exports (palm oil and crude rubber).
