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Europe and Central Asia

Greek tragedy: 'Sleepwalking' toward an economic abyss, with eurozone fears pervading the Spring Meetings

Christopher Colford's picture

“All roads lead to Rome” may have been true in ancient times, but policymakers during this Spring Meetings season in Washington have been focused on another classical crossroads: All roads now lead to Athens, as the intensifying eurozone crisis is again stoking fears that Greece may soon “crash out” of the European common currency system – potentially dealing a severe shock to the still-fragile global financial markets.

“The discussions about Greece have pervaded every meeting” during this fast-forward week of finance and diplomacy, said the United Kingdom’s Chancellor of the Exchequer, George Osborne. That viewpoint was reinforced by a studious chronicler of the Greek drama’s daily details, Chris Giles of The Financial Times, who asserted – in an unusually dismissive swipe – that “the antics of Greece dominated the Spring Meetings of the International Monetary Fund and World Bank.”

The Greece-focused anxiety was palpable to many Spring Meetings attendees, judging by the number of corridor conversations and solemn sidebars that dwelled on the eurozone drama – especially on the Fund’s side of 19th Street NW. While most forums and panels on the Bank’s side of the street focused on the progress of many developing countries, events at the Fund seemed consumed by the policy contortions within Greece's faltering economy, as Meetings-goers monitored every tremble of their text messages to follow the week’s the week’s staccato bulletin-bulletin-bulletin news of Greece’s financial flailing.

“The mood is notably more gloomy than at the last international gathering,” said Osborne, “and it’s clear . . . that a misstep or miscalculation on either side [of the Greece negotiations] could easily return European economies to the kind of perilous situation we saw three to four years ago.” Having received a $118 billion bailout in May 2010 and a second package of $139 billion in October 2011, Greece is now at an impasse with its creditors: the IMF, the European Central Bank and the European Commission. A new government in Greece – having denounced the loan conditions reluctantly accepted by its predecessor governments – is debating how, or whether, it should comply with lenders’ pressure for far-reaching reform. Greece's foot-dragging has exasperated the lenders even as Greece envisions a potential third bailout program.

As the Greek tragedy unfolds, the doleful observation of Wolfgang Münchau in the FT seems all too apt: “Until last week, discussions with Greece did not go well. That changed when the circus of international financial diplomacy moved to Washington for the Spring Meetings. Then it became worse.”

Unlocking Georgia’s potential through export-led job creation

Rashmi Shankar's picture
Having lived in Tbilisi for almost three years now, I continue to be fascinated by the contradictions of the Georgian story.

On one hand, Georgia has achieved significant economic growth over the past decade, successfully introduced much needed governance reform, and become synonymous with world leadership in terms of doing business (ranked in the top 15 and better than some OECD countries).

On the other hand, the country has been dogged persistently by high poverty rates – among the highest in the Europe and Central Asia region. And, despite a highly improved business environment, unemployment rates remain in the double digits: official unemployment is currently around 15 percent!

Economists weigh in on oil prices and an uneven global recovery

Donna Barne's picture
World Bank chief economists, clockwise from upper left: Senior Vice President and Chief Economist Kaushik Basu, Augusto de la Torre (Latin America and the Caribbean), Shanta Devarajan (Middle East and North Africa), Francisco Ferreira (Sub-Saharan Africa), Sudhir Shetty (East Asia and Pacific), Hans Timmer (Europe and Central Asia), Martin Rama (South Asia).


​Lower oil prices are a boon for oil importers around the world. But how well are oil-producing countries adapting to the apparent end of a decades-long “commodity supercycle” and lower revenues? And what does this mean for the global economy?

World Bank economists provided insights on the situation in six developing regions at a webcast event April 15 ahead of the World Bank Group-IMF Spring Meetings. The discussion focused on the challenge of creating sustainable global growth in an environment of slowing growth.

World Bank Chief Economist Kaushik Basu said the global economy is growing at 2.9% and is “in a state of calm, but a slightly threatening kind of calm. … Just beneath the surface, there’s a lot happening, and that leads to some disquiet, concern – and the possibilities of a major turnaround and improvement.”

Baltički autoput podataka: Kada ćemo mi imati balkanski?

Natalija Gelvanovska's picture
Izvor fotografije: Data Logistics Center
Pre par meseci su Estonija, Letonija i Litvanija završile petogodišnju gradnju Baltičkog autoputa – kičme širokopojasne mreže koja koristi prednosti postojećih optičkih kablova koji poseduju tri baltička energetska postrojenja. Optička kičma dugačka 3000km prolazi kroz baltički region povezujući nove mega centre za podatke u severnoj Evropi Talinu sa čvorištem za podatke zapadne Evrope u Frankfurtu i ima mogućnost daljeg povezivanja sa Rusijom i Belorusijom. Izgradnja i funkcionisanje baltičkog autoputa je odličan primer regionalne saradnje i zajedničke infrastrukture.
 
Baltički autoput je proizvod nekoliko aktera - Data Logistics Center (deo od Lietuvos Energija, državne holding kompanije litvanskih snabdevača energijom), Latvenergo (državne kompanije za električnu energiju u Letoniji), i Televõrk (podružnica privatne energetske firme Eesti Energia iz Estonije). Za razliku od drugih ova mreža je građena tako što su kablovi sa optičkim vlaknima polagani preko visokonaponskih dalekovoda i gasovoda koji pripadaju energetskim kompanijama, umesto korišćenja različitih segmenata operatera za telekomunikacije koji su već bili “priheftani”. Sada klijenti baltičkog autoputa imaju mogućnost da koriste regionalnu infrastrukturu iz jedne tačke.

Autostrada Baltike e të dhënave: Kur do e ketë Ballkani një të tillë?

Natalija Gelvanovska's picture
Foto nga: Data Logistics Center
Para disa muajve, Estonia, Letonia dhe Lituania kanë përfunduar ndërtimin 5 vjeçar të autostradës së Baltikut - rrjet backbone i broadbandit (brezit të gjerë) i cili shfrytëzon asetet e kabllos optike të tri kompanive energjetike Baltike. Backboni fibër pa nyje prej 3000 km që përshkon tërë regjionin e Baltikut, lidhë mega qendrat e të dhënave të Evropës së veriut në Talin me hubat e të dhënave të Evropës perëndimore në Frankfurt dhe ka mundësinë e zgjerimit të lidhjes me Rusinë dhe Bjellorusinë. Ndërtimi dhe operimi i autostradës së Baltikut është shembull i shkëlqyeshëm i bashkëpunimit regjional dhe i bashkëndarjes së infrastrukturës.
 
Autostrada Baltike është krijuar nga Data Logistics Center (pjesë e Lieuvas Energija, kompani shtetërore aksionare e furnizuesit Lituanez të energjisë), Latvenergo (kompani energjetike shtetërore e Letonisë), dhe Televork (subsidiar i firmës private energjetike Eesti Energia në Estoni). Për dallim nga të tjerët, ky rrjet është ndërtuar duke shtruar kabllon optike përgjatë linjave energjetike të tensionit të lartë dhe gypat e gazit të cilat i përkasin kompanive energjetike, e nuk janë përdorur segmentet e ndryshme të rrjeteve të operatorëve të telekomit të cilat janë të "arnuar së bashku". Tani klientët e Autostradës së Baltikut kanë mundësinë e shfrytëzimit të infrastrukturës regjionale pa nyje nga nj pikë e vetme.

Now that there's a Baltic Data Highway, when will we have one for the Balkans?

Natalija Gelvanovska's picture
Photo credit: Data Logistics Center
In January, Estonia, Latvia and Lithuania finished the five-year construction of the Baltic Highway – a broadband backbone network that takes advantage of fiber-optic assets from three Baltic energy and utility entities. The Highway is a seamless fiber backbone of 3,000 kilometers (1,864 miles) across the Baltic region, connecting Northern Europe’s new mega-data centers in Tallinn to Western Europe's data hub in Frankfurt, Germany, with the possibility of extending connections to Russia and Belarus.

The construction and operation of the Baltic Highway is a great example of regional cooperation and infrastructure sharing — and there are many lessons we can learn from it.
 
The Baltic Highway was created by Data Logistics Center (part of Lietuvos Energija, a state-owned holding company of Lithuanian energy suppliers), Latvenergo (a state-owned electric utility company in Latvia) and Televõrk (a subsidiary of private energy firm Eesti Energia in Estonia). Unlike previous data highways, this network was built by laying optical fiber over high-voltage electricity lines and gas pipelines that belong to energy companies, as opposed to using different segments of telecommunications networks that have been “stitched together.” Today, Baltic Highway clients have the opportunity to utilize one seamless regional infrastructure system from a single point.

What would it take to implement a similar project in the Balkans?

The benefits of e-Visas, and how to overcome implementation challenges

Radu Cucos's picture
The Electronic Visa (e-Visa) has emerged as one of the most innovative services implemented in the area of freedom of movement and people-to-people contacts.

E-Visa allows the management of the visa application process to take place entirely in a virtual environment. Everything is done with the help of the Internet: the visa application and supporting documents are submitted online, the payment is made online and the decision on the application is communicated online. Some of the best examples of e-Visa services I have encountered are implemented by the authorities of Australia, Turkey, New Zealand and Georgia.
 
Serving as Chief Information Officer at the Moldovan Foreign Service, I had the opportunity to lead the development of the Moldova e-Visa Service in partnership with the World Bank’s eTransformation project.

The Moldovan e-Visa service was launched on August 1, 2014. So far, we can make the following observations and conclusions about the benefits of e-Visa:

Developing a 360 degree view of poverty in Armenia

Nistha Sinha's picture

How can we better understand and reach Armenia’s poor? This is a question that my colleagues and I, along with Armenia’s National Statistical Service (NSS) are asking, as we ponder the experiences of several countries in Latin America and the Caribbean who have moved past simply looking at incomes, and instead used a multidimensional approach to poverty measurement.

How long is too long? When justice delayed is justice denied

Georgia Harley's picture
As the saying goes, ‘justice delayed is justice denied.’ Yet, across the world, court users complain that the courts take too long. For your regular court user facing endless talk from lawyers, reams of paper, and mounting legal bills, a court case can feel like it goes on…FOR….EV….ER.
 
But how long is too long? The question has arisen on each of my last four missions in as many months – from Kenya to Croatia to Serbia and back.
 
And it’s not a rhetorical question. Answers can assist client countries in analyzing their efficiency and devising reforms that improve both timeliness and user satisfaction. It also enables potential court users to better estimate how long it might take to resolve their dispute – allowing them to then adjust their expectations accordingly.
 
After all, better enabling people and businesses to resolve their disputes contributes to poverty reduction and shared prosperity.
 

5 reasons why water is key to sustainable development

Tariq Khokhar's picture

March 22nd is World Water Day. We’ve already covered 7 things you may not know about water so here a 5 more facts showing the links between water and health, energy, the climate, agriculture and urbanization. But first:

This is every river and waterway in the contiguous United States

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Image via Wired

Nelson Minar produced this incredible map using data from the USGS National Hydrography Dataset. It includes some waterways that are dry most of the year but still have defined creek beds, and like veins running through the human body it shows how fundamental water is to the country’s ecosystem.


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