This is the third paper in our series of papers by graduates on the job market this year.
East Asia and Pacific
The US and European economies are showing some signs of recovery from the global financial crisis that began in 2008. As a result, the US Federal Reserve Bank is considering phasing out, or “tapering”, the extraordinary monetary policy measures through which it responded to the crisis. On May 22, Fed Chairman Ben Bernanke testified before Congress that the Fed may begin to reduce the size of its bond buying program. There was an immediate withdrawal by investors from stocks and bonds in emerging markets. The World Bank's East Asia and Pacific regional update estimated that in East Asia alone $24 billion was withdrawn from equities and $35.2 billion from bonds. Share prices fell by 24 percent in Indonesia, 21 percent in Thailand, and 20 percent in the Philippines. Yields on 10 year local currency bonds increased by 273 basis points in Indonesia, 86 basis points in Thailand and 76 basis points in Malaysia. The exchange rate depreciated by 18 percent in Indonesia, and about 5 percent in the Philippines and Thailand. Financial markets largely recovered once the Fed decided to postpone tapering in September, but there is still nervousness. The Indonesian Rupiah and Indian Rupee both fell significantly in November, till Fed Chair nominee Janet Yellen signaled that she saw a continued need for the bond buying program.
At some point the Fed will indeed begin to taper. Investors should clearly be concerned as there is a risk of sudden and dramatic falls in asset prices. Should policy makers be concerned? Will there be an impact on growth, inflation or macroeconomic risk that requires a response from policy makers?
Editor's Note: This blog draws on the forthcoming article “New Trade Regionalism in Asia: Looking Past the Sino-American Great Game," written by Swarnim Wagle, to be published in the Global Emerging Voices 2013 Working Papers.
Negotiations over one of history’s most ambitious trade deals have taken another step towards defining the future of Trans-Pacific trade.
The latest round of discussions on the Trans-Pacific Partnership (TPP) wrapped up this past weekend in Salt Lake City, Utah. Negotiators are believed to have made headway on a number of thorny issues, clearing the way for ministerial talks to be held in Singapore, Dec. 7-10.
The TPP will draw together 12 countries dotting the perimeter of the Pacific—Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. But it’s the United States’ efforts to spearhead the talks that have attracted the most attention. Concerns over a lack of transparency and the intrusive scope of the agreements’ provisions into national policymaking have led many to question its objective.
- Brunei Darussalam
- New Zealand
- United States
- East Asia and Pacific
- Europe and Central Asia
- Latin America & Caribbean
- The World Region
- Global Economy
- Information and Communication Technologies
- Law and Regulation
- TTIP. Trans-Pacific Partnership
- Agricultural Subsidies
- Free Trade
2013 has been a year of adjustment for Indonesia’s economy. In the recent edition of the Indonesia Economic Quarterly report, the flagship publication of the World Bank Indonesia office, we asked the questions: what are the drivers of this adjustment and how should policy respond?
In the early 1990s, selling condoms was highly controversial in Vietnam. For so long, condoms had been distributed to each household throughout the country for free for family planning use only. Condoms were not used for promoting safe sex. It was extremely difficult to convince the media to advertise condoms, very hard to convince the government that it was possible to generate revenue from selling condoms. People found it embarrassing to buy condoms in shops or drugs stores.
Everyone who travels to Thailand will want to have Chiang Mai on their list. It’s an old city which reflects the lovely northern Thai culture and has a lot of significant history behind it. My wife and I spent our first anniversary there because it’s very nice and peaceful. Chiang Mai is a place where Thais often go to recharge and take advantage of the slower pace of life. I have started recently travelling to Chiang Mai more often for work, but even that is also pleasurable.
Chiang Mai has grown so much, and so fast. We see more and more cars in the city center. The traffic jams are becoming problematic and the public transportation issue remains an unsolved problem. To help, the World Bank is supporting the Chiang Mai Municipality's vision of promoting “green mobility” with help from the Global Environment Facility (GEF). It is a small pilot project that supports non-motorized transport, such as walking and bicycling, by improving city center's walk path and bicycle lanes in the city center.
Some observers caution that the reforms proposed by the Chinese Communist Party (CCP) after the Third Plenary meeting of its Central Committee may fall short of promise because of resistance from vested interests or a lack of political will. My view is that it will bring about fundamental changes in China for one simple reason - politics. First, the CCP leadership fully understands that the party has lost the trust of the people because of rising corruption and cronyism, increasingly offensive income inequality, huge question marks over food safety, and worsening pollution. Second, they realize that the current economic model cannot sustainably deliver the economic progress that citizens expect in return for their allegiance to the CCP. The CCP leaders know that fundamental changes are needed to this economic model to regain the trust of the people. Since survival demands big changes, the leadership will pull out all the stops.
What generates 70 percent of the greenhouse gases emitted from cities like New York, Beijing, or New Delhi? Not long ago, I might have answered “cars.” But the real culprit is buildings – our homes, offices, schools, and hospitals. Many of which use electricity, water, and fuel extremely inefficiently because of the way they were initially designed.
In fact, about 40 percent of the world’s electricity is used to cool, light and ventilate buildings, even though much more efficient technology exists.
The longevity of buildings is why we need to think much more about them at the new construction phase. Decisions about building materials, insulation, and plumbing live on for decades or longer. That’s why IFC, the private sector-focused arm of the World Bank Group, is working to help builders and developers in emerging markets lock in climate-smart choices at the early design stage.
Our new certification tool EDGE, which stands for Excellence in Design for Greater Efficiencies, was designed specifically for emerging markets, where housing needs are set to grow exponentially as a result of urbanization pressures. It is Internet-based and easy to use, offering developers a range of inexpensive design choices that might otherwise be overlooked in the rush to build.
Buildings certified by EDGE use 20 percent less energy than their peers, offering long-term emissions savings and lower utility bills – a major benefit in affordable housing.
Available in Bahasa
Since the UN’s High Level Panel announced its vision for the post-2015 development agenda in May, much debate has centered on the absence of a goal for inequality among the panel’s list of 15 proposed goals. Indonesian President Susilo Bambang Yudhoyono, commenting on the goals in Jakarta last June, stressed that the principle of “no one left behind” was central to the panel’s vision, and that each of the U.N.’s goals focused on tackling inequality. The proposed education goals, in fact, include a commitment to ‘ensure every child, regardless of circumstance, completes primary education able to read, write and count well enough to meet minimum learning standards’.
I must admit to being notoriously bad with a mobile phone. I forget to take it with me, leave it in parks and cafés and have never migrated to a smart phone – a simple old Nokia handset is my trusty aide. And on my part this has probably contributed to some skepticism about the discussion of development and mobile phones – which can sometimes seem a little evangelical.