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Youth Voices: Effects of The Spaghetti Bowl on South Asia-East Asia Trade Relations

Osama Sajid's picture

As part of the organizing team for the South Asian Economics Student’s Meet (SAESM’13) in Lahore, Pakistan, I already had an overview of what it was like to be part of the SAESM family. The idea behind the first annual conference in 2003 was to provide a platform for the South Asian undergraduate students of economics to interact with each other, exchange ideas, and discuss economic issues in an out of class environment. Participants either write a research paper and present it, or take part in a multiple round competition to contest for the honor of being The Budding Economist of South Asia. In addition, SAESM gives an opportunity to establish cross border friendships and create memories that last a life time. So as soon as the applications for SAESM’14 (Bhutan) opened, I applied to be a part of the Pakistani delegation, and was selected after an academically challenging interview.

I decided to write my research paper on the sub-theme ‘South Asia in Global Perspective’. A lot of hard work, with numerous nights skimming relevant papers, articles and publications led me to narrow down the topic to ‘Impact evaluation of Spaghetti Bowl Effect on South Asia-East Asia trade relations’.


This Week in #SouthAsiaDev: February 6th, 2015

Mary Ongwen's picture

Apply for SAFE Trust Fund grants

Soukeyna Kane's picture



The SAFE Trust Fund application (Word document) is now open until 27 February 2015.
 
What is SAFE?
 
SAFE means Strengthening Accountability and the Fiduciary Environment. It is a Trust Fund group administered by the World Bank and established by the Swiss State Secretariat for Economic Affairs (SECO) and the European Commission with the aim of improving public financial management in the Europe and Central Asia region. This Trust Fund group provides support for activities to assess public financial management (PFM) performance, identify and implement actions to achieve improvements and share knowledge and good practices across countries in the region.

Oil is Well that Ends Well

Francisco G. Carneiro's picture


Why are petroleum prices dropping so fast anyway? Have they reached rock bottom yet? Should we be worried if they continue to fall? These are questions that probably every finance minister in either oil-rich or oil importing nations is trying to answer.  

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

Tumbleweed rolls through West African resorts: Ebola and tourism crisis management

Hermione Nevill's picture



Jean-Marie Gaborit has been operating his beautiful wetland lodge in the Delta de Saloum in Senegal for 12 years, but he says things have never been so quiet. The European winter months are usually the high season for popular West African destinations, with the beaches, hotels and restaurants packed full of sunshine-seeking tourists. "It’s this Ebola" he sighs, and then adds "even though there is none here."
 
It’s the same story in the Gambia, and effects are even felt further afield in Kenya, Tanzania and Botswana. The Hotels Association in Tanzania (with over 200 members) says that business is down 30 to 40 percent on the year and advanced bookings, mostly for 2015, are 50 percent lower. In South Africa, some 6000 kilometers from the nearest Ebola outbreak, arrivals are down this period by as much as 30 percent. In some cases, airlines (such as Korean Air) have stopped running – even to non-affected countries like Kenya. Across the board, Share values of international tour operators have fallen, hotels have closed, and thousands of tourism-industry workers have been made redundant. 
 
The Accommodation Manager at the Baobab Hotel in Saly, Senegal admits he has laid off 160 staff in the last few months: "When we are full, we have a ratio of one employee for one room. We have 280 rooms and right now 100 of them are occupied. I have 20 extra staff that I can’t afford, but their contracts mean that I can’t let them go." About 80 percent of those staff members are from the local area, and they directly support seven to 10 dependents. For countries that rely on tourism for a large part of their GDP and foreign-exchange contributions, the loss of revenue is significant. In the Gambia, for example, where tourism accounts for 13 percent to 15 percent of GDP, the target of 7.5 percent economic growth for 2015 will be missed.
 
Misinformation lies at the heart of the problem. Although many foreign governments have declared Senegal and the Gambia to be Ebola-free, spreading this message to tourists has proved incredibly difficult. Noisier news reports of death tolls, medical-staff shortages and NGO-promoted appeals in affected countries have drowned out other voices. Moreover, those reports play to international prejudices. With the overwhelming foreign perception of Africa as one country, the problem has no boundaries.

The World Bank Group will be supporting the Government of Senegal in implementing a communications strategy with an emphasis on briefings for key tour operators and the provision of hard data. Best practice shows that such management is more effective if it is planned ahead, and if it includes the preparation of a task force involving decision-makers from both the private and public sector – including a public-relations team, a recovery marketing team, an information-coordination team and a fundraising team. Moving into crisis recovery, a series of medium-term resilience measures – such as incentives, matching grants, training and sustained promotion – may be appropriate.
 
Social media has played its part in trying to combat misunderstandings, with Twitter and grassroots campaigns pushing material such as this infographic, but there needs to be a much-better-coordinated response.



Crisis communications consultant Jeff Chatterton has been working with a number of African Tour Operators since the outbreak of the virus. He cites hard information and empathy as two of the most important tools to deploy at this stage of the crisis. According to Chatterton, prospective tourists who are hesitating over an African booking need to feel that their concerns are listened to, acknowledged and understood. Once this has been established, they will be more inclined to engage with fact-based information, which needs to be clear, transparent and accurate. He sees two big problems with tourism businesses: a reactive approach that is not reaching out and communicating to key audiences, and a downplaying of the problem that undermines and belittles consumer. "About the worst thing you can do is dismiss their reality as inconsequential," he says.
 
There is a critical role for government to play in crisis management and disaster recovery. Lessons can be learned from the outbreak of Foot and Mouth Disease in the UK in 2001. The UK’s Department for Environment, Food and Rural Affairs (DEFRA) identified the direct costs to tourism as a loss of expenditure of between £2.7 and £3.2 billion. At the national level, the tourism industry's representatives blamed the British Tourist Authority for failing to react sufficiently and effectively, without an appropriate crisis-management strategy in place before the outbreak.

For the World Bank Group and other development partners, a greater emphasis on crisis-management support at the sector level could be an important pro-active means of stepping up our engagement with client countries – before disaster strikes. With the rising threat of terrorism attacks across the world, along with their devastating impact on tourist demand, the most prepared destinations will have a competitive advantage and will be better equipped to limit the damage to the economy and to people’s livelihoods.  

For now, hotels in Senegal have slashed their prices and are concentrating on supplying the small domestic market, but operating at a loss is not sustainable for long. The booking season for 2015 is almost over, with no sign of recovery – meaning that businesses such as Jean-Marie’s face at least another 12 months of empty beds. 

Bhutan – Development Economics in the Himalayas

Kaushik Basu's picture

Landing at Paro in Bhutan involves making a question-mark shaped maneuver while dropping altitude rapidly to avoid making wing-contact with the Himalayan mountains surrounding the Paro valley where Thimphu, the capital, is also situated. A fellow passenger informs me that there are only 9 pilots in the world who are trained to make this landing. I use up one of my rare prayers to request that it be one of those flying us now. It is, I think, the infrequency of prayers that makes them so effective; our plane descends smoothly and tiptoes on to the tarmac.

What does cheap oil mean for the Arab World?

Shanta Devarajan's picture

As the price of oil falls, the discussion is heating up on what the impact will be for countries in the Arab World – especially online through the popular Arabic hashtag النفط_دون_50_دولار #    translating to “oil below US$50 . The World Bank’s Chief Economist for the Middle East and North Africa, Shanta Devarajan, weighs in on the conversation.

Let’s All Play Antakshari, Shall We?

Delilah Liu's picture
Delilah Liu/World Bank

On Dec 24th 2014, Christmas Eve, I went into the reception room of Hotel Namgay Heritage in Thimphu, Bhutan to look for some students to interview for my story on the 11th South Asia Economic Students Meet (SAESM). To my surprise, I saw five sofas filled with students, as if they were waiting for me. The cruel reality was, the students from India, Nepal, Pakistan, Bangladesh and Afghanistan were singing without even noticing my entrance into the room.
 
They were playing an Indian parlor game (later explained to me by an Indian student) called Antakshari, where each team grouped by the sofa sings the first verse of a Bollywood movie song that begins with the consonant on which the previous team's song selection ended. Though Bollywood movies and songs are often in Hindi; somehow the Afghans who speak Pashto and Dari, Pakistanis who speak Urdu, Bangladeshis speaking Bengali and the Nepali speaking Nepalese were all able to understand each other and sing along.

Managing EU Funds – What We Can Learn from Slovenia

Maya V. Gusarova's picture
Effective management of European Union (EU) funds is not only high on the agenda of the new EU member states but also of the Western Balkan countries that are progressing in the EU integration process. As such, these countries face several important challenges and questions today.

On becoming an EU member, how much will the budget calendar and its preparation need to change? How best to plan and execute projects which are pre-financed? How to record unspent EU funds in the next fiscal year? To what extent should the Ministry of Finance be involved in the process before the signing of financial agreements with the EU? These and other questions arise in relation to the impact on a country’s fiscal position, co-financing obligations, pre-financings and bridging resources, and payment of errors.

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