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East Asia and Pacific

Trade, Employment, and Structural Transformation

Margaret McMillan's picture
  Photo: istockphoto.com

There is a shared sense that globalization has a strong potential to contribute to growth and poverty alleviation.  There are several examples of countries in which integration into the world economy was followed by strong growth and a reduction of poverty, but evidence also indicates that trade opening does not automatically engender growth. The question therefore arises, why the effects of globalization have been so different among countries of the world.

A look at changes in the structure of employment in Latin America and in Asia hints at possible explanations for observed differences in the growth effects of trade.  Since the 1980s, Asia and Latin America have both rapidly integrated into the world economy.  Asia has enjoyed rapid employment and productivity growth, but the consequences for Latin America have been less stellar.

The chart below shows how the pattern of structural change has differed in the two continents. The chart decomposes labor productivity growth in the two regions into three components: (i) a “within” component that is the weighted average of labor productivity growth in each sector of the economy; (ii) a “between” component that captures economy-wide gains (or losses) from the reallocation of labor between sectors with differing levels of labor productivity; and (iii) a “cross” component that measures the gains (or losses) from the reallocation of labor to sectors with above-average (below-average) productivity growth.  The underlying data for the charts come from the Groningen Growth and Development Centre.

Learning from national ICT and education agencies

Michael Trucano's picture
KERIS -- at the cutting edge
KERIS -- at the cutting edge

Over 100 education policymakers from 32 countries gathered last week in Seoul to share lessons, experiences and opinions in response to the following question:

How should an education system structure itself to meet new challenges and take advantage of new opportunities related to the use of information and communication technologies, and what roles and responsibilities could/should a dedicated ICT/education agency or unit play?

This was the theme of the fourth global symposium on ICT and education, an annual event that the World Bank has co-sponsored with the Korean Education & Research and Information Service (KERIS) and the Korean Ministry of Education, Science and Technology (MEST) and other partners, including UNESCO Bangkok, Intel and the IDB. (Proceedings from previous symposia are available herehere, here and here.)

Bike Local, Think Global and What to Do When the Car is Unavoidable

Julie Babinard's picture

A few years ago I proudly put a sticker on my bicycle that claimed one should ‘bike local’ in order to ‘think global.’  These days, it seems that the car is unavoidable in the majority of growing cities and that instead of biking local one should avoid commuting at all.

This project really is “for the birds” - Development Marketplace projects protects the Giant Ibis

Kirsten Spainhower's picture

Paying small farmers more, protecting fragile habitat and safeguarding spectacular wildlife, now there’s a win-win!

Encroaching agricultural land is a perennial challenge for the protection of national parks around the world. In Cambodia, the Wildlife Conservation Society (WCS) developed an innovative approach to conservation by promoting wildlife friendly farming techniques. The project area is home to important habitat for birds and mammals, including Giant Ibis, White-shouldered Ibis, Bengal Florican, and three Critically Endangered vulture species, Asian Elephants, Tigers and wild cattle.

Why Updating Malaysia’s Inclusiveness Strategies is Key

Philip Schellekens's picture

Compare South Korea and Malaysia in 1970 and compare them again in 2009. South Korea was a third poorer back then and is now three times richer. Even more remarkable has been South Korea’s ability to widely share the benefits of this spectacular feat across broad segments of society. South Korea’s strong focus on broad-based human capital development allowed the country to transform itself into a high-income economy, while at the same time reducing income inequality and improving social outcomes.

Most central banks in East Asia need to raise rates to nip inflation in the bud

Ivailo Izvorski's picture

Amid the robust recovery from the global economic and financial crisis, policymakers in East Asia are contending with two emerging challenges: rising inflation and surging capital inflows.  The quickening of the pace of price increases would require further monetary tightening, but many officials and analysts worry that such tightening will help support further flows.  On balance, central banks in the region seem to have been rather patient in raising p

Answers to your questions on the current economic outlook for the East Asia region

Claudia Gabarain's picture

As a follow up event to the recent release of the Bank'slatest East Asia and Pacific economic update, our lead economists spent around 1 1/2 hours this Tuesday answering your questions on the findings of the report, and other economic issues.

Fifty Million Twelve-Year-Old Solutions

Naniette Coleman's picture

“We have a situation on our hands and the clock is ticking. We have fifty million twelve-year-old girls in poverty,” the opening video proclaimed. The solution is simple and profound, the Girl Effect, “an effect that starts with a 12-year-old girl and impacts the world.” Despite the catchy rhyme, I was skeptical. Can you blame me? It seems that we women have been getting the shaft since that damn snake in Eden. 

The list of superwomen who addressed the over capacity crowd at the “Adolescent Girls Initiative (AGI): An Alliance for Economic Empowerment” event on October 6th read like the World Bank, White House, Hollywood, Philanthropy, Business and the Catwalk list of Who’s Who. The crowd craned their necks from the hallway to catch a glimpse of World Bank Managing Director Ngozi Okonjo-Iweala and World Bank Director of Gender and Development Mayra Buvinic; White House Senior Advisor, Valerie Jarrett; Actor, Anne Hathaway; President of the Nike Foundation, Maria Eitel, and Supermodel Christy Turlington

A remarkably stable outlook for China

Louis Kuijs's picture

As we were wrapping up the work on our new China Quarterly Update (of which I am the main author), looking at our main conclusions and messages on economic developments in China, prospects, and the key policy challenges and tasks, I noticed that, despite lots of new data and all the headlines about changes, likely changes and risks, our overall conclusions and views have not changed all that much since June, when we released the last one. Noticing this was sobering but also somehow comforting.

World Bank economists for East Asia and Pacific take your questions on an online chat November 2

Claudia Gabarain's picture

A couple of weeks ago the Bank released its half-yearly economic assessment of developing countries in the East Asia and Pacific region. The report confirmed the robust recovery of the region's economies overall, but flagged a number of emerging risks, particularly around the return of large capital inflows and appreciating currencies.


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