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Europe and Central Asia

2014: 25 Years After 1989 or 100 Years After 1914?

Martin Raiser's picture

A couple of weeks ago, I was in Warsaw to attend a conference jointly organized by the Polish and Turkish Central Banks (“Polish and Turkish Transitions: Achievements and Challenges Ahead”) on the occasion of 600 years of diplomatic relations between Poland and Turkey. Six centuries of (predominantly friendly) relations is indeed worthy of commemoration, but for our Polish hosts another anniversary was of even greater importance: 25 years ago, Poland was the first country from the former Communist Block to embark on the transition towards democracy and market economy. For Poland and other Central and Eastern European countries that joined it as new members of the European Union 10 years ago, this transition laid the foundation for a remarkable economic, cultural and political revival as Indermit Gill and I have argued in Golden Growth. Indeed, many in Poland would agree with the Economist  that Poland has not had it as good as today ever since it was the preeminent Central European power some 500 years ago.

More and Better Financing for Development

Homi Kharas's picture

One of the major issues in the Open Working Group’s outcome report on the shape of the post-2015 agenda is the availability and access to financing to allow the goals to be met. There is a great temptation to simply try and calculate the financing needs for each goal and add them up to get the total financing need. Because this approach seems simple, it is appealing to many. The problem is that it is conceptually wrong.
 

Connecting Europe’s underserved communities to broadband

Roger Burks's picture
The benefits of broadband Internet are well-documented: for each 10-percent increase in penetration, a country’s gross domestic product (GDP) can increase by as much as 1.5 percent. In addition, broadband Internet brings citizens access to new job opportunities, health services and possibilities for digital engagement with their government.
 
Broadband Internet can help bring jobs
to underserved areas, boosting
economic prospects.
However, citizens of the European Union (EU) who live in rural and economically disadvantaged areas have little access to broadband Internet, and therefore miss out on the wide range of opportunities it offers. Today, only 18 percent of rural households in Europe have access to these services.
 
As a result of these gaps and challenges, the European Commission is partnering with the World Bank and others on a new “Connected Communities” initiative. This large-scale project will connect towns and cities to broadband partnerships and operators, offering critical advice and specific business models to finally bring fast Internet to underserved communities.

In Latin America, Hard Hats and Tools are no longer only for Men

Maria Margarita Nunez's picture

Women that have joined road maintenance has increased significantly.

While driving around rural areas of Puno in Peru, Caaguazú in Paraguay or Granada in Nicaragua, do not be surprised to see women lifting rocks from the roads and using shovels and picks alongside men.  In fact, in the past 15 years, the number of women that have joined organizations in charge of routine road maintenance in Latin America has increased significantly and with this their life conditions have improved dramatically.

Does Your Country Export What It Should?

Siddhesh Kaushik's picture

Customs reforms have made trade easier in Georgia. Photo - Irakli Tabagari / World Bank.One of the core principles of trade economics is that of “comparative advantage.” First described by David Ricardo, the theory says that countries are best off if they specialize in products that they can make relatively more efficiently – with lower opportunity cost – than other countries. If this happens, the theory goes, global welfare will increase. This concept is more difficult than it sounds, however – as Paul Krugman has pointed out quite eloquently – and benefits from illustration.

Basketball genius Michael Jordan stars in one example sometimes used in textbooks and classrooms: If Jordan mows his lawn faster than anyone else in the neighborhood, he has anabsolute advantage in lawn mowing. But that doesn’t mean that he should mow his neighbor John Smith’s lawn, because that would come at an opportunity cost: in the same two hours it would take Jordan to cut the grass, he could earn much more by playing basketball or making a commercial.

While it is difficult to measure comparative advantage in world trade, one indicator is something called “Revealed Comparative Advantage” (RCA). This is a measure of how a country’s exports compare to those of a bigger group, such as a region or the rest of the world. For example, if a country’s RCA in wheat is high (typically greater than one), that means wheat makes up a higher share of that country’s total exports than it does of the world’s exports. This suggests that that country is a more efficient wheat-producer than the average country.

But countries don’t always produce the products in which they have a revealed comparative advantage. Sometimes Michael Jordan mows the lawn. Let’s take a look at a couple of examples from this new data visualization tool.

Weekly Wire: The Global Forum

Roxanne Bauer's picture


These are some of the views and reports relevant to our readers that caught our attention this week.

Role reversal as African technology expands in Europe
Phys Org
Africans have long used technology developed abroad, but now a Kenyan cash transfer network which bypasses banks is being adopted in Europe. The M-Pesa mobile money transfer system which allows clients to send cash with their telephones has transformed how business is done in east Africa, and is now spreading to Romania. "From east Africa to eastern Europe, that's quite phenomenal when you think about it," Michael Joseph, who heads Vodafone's Mobile Money business, told AFP in the Kenyan capital Nairobi. "I think that this is something the rest of the world can look at, to say that there are ideas that can emanate out of the developing world, and take it to the developed world."

New Report for Latin America and the Caribbean Freedom of expression and media development: Where are we heading?
UNESCO
Over the past six years, Latin America and the Caribbean continued to comply with the basic conditions that guarantee freedom of expression and media freedom, although the situation has not been homogeneous throughout the 33 countries in the region. Even where strong legislation has existed, implementation has remained a challenge. Several Latin American countries have approved new media laws that have been perceived by some as an opportunity to make the media landscape more pluralistic and less concentrated, and by others as an opportunity for the governments to act against media outlets that have been critical of their administrations. The same debate has applied to steps to revise out-of-date media laws, including those left over from military dictatorships.
 

Does Your Country Export What It Should?

Siddhesh Kaushik's picture

Customs reforms have made trade easier in Georgia. Photo - Irakli Tabagari / World Bank.One of the core principles of trade economics is that of “comparative advantage.” First described by David Ricardo, the theory says that countries are best off if they specialize in products that they can make relatively more efficiently – with lower opportunity cost – than other countries. If this happens, the theory goes, global welfare will increase. This concept is more difficult than it sounds, however – as Paul Krugman has pointed out quite eloquently – and benefits from illustration.

Basketball genius Michael Jordan stars in one example sometimes used in textbooks and classrooms: If Jordan mows his lawn faster than anyone else in the neighborhood, he has an absolute advantage in lawn mowing. But that doesn’t mean that he should mow his neighbor John Smith’s lawn, because that would come at an opportunity cost: in the same two hours it would take Jordan to cut the grass, he could earn much more by playing basketball or making a commercial.

While it is difficult to measure comparative advantage in world trade, one indicator is something called “Revealed Comparative Advantage” (RCA). This is a measure of how a country’s exports compare to those of a bigger group, such as a region or the rest of the world. For example, if a country’s RCA in wheat is high (typically greater than one), that means wheat makes up a higher share of that country’s total exports than it does of the world’s exports. This suggests that that country is a more efficient wheat-producer than the average country.

But countries don’t always produce the products in which they have a revealed comparative advantage. Sometimes Michael Jordan mows the lawn. Let’s take a look at a couple of examples from this new data visualization tool.

Five Reasons Why Youth Should Choose Agriculture

Andy Shuai Liu's picture
What type of career do you aspire to have? Do you want to be an artist, a business person, or a policymaker?
 
Or, have you ever wanted to become a farmer? I would not be surprised if you said no.
 

Tariffs for Standards?

Hassan Zaman's picture

Bangladesh Duty- and quota-free access for exports to global markets is something developing country trade negotiators have demanded for years.  Few other “stroke-of-the-pen” measures could boost employment and reduce poverty in low income countries in such large numbers. For instance  if the US removed tariffs on Bangladeshi garments – which average around 13%, but for some items are as high as 33% – then exports to the US could rise by  $1.5 billion from the FY13 level of $5 billion, in turn generating employment for at least an additional half a million, primarily female, workers.[1]  Examples of other countries facing US tariffs include Cambodia (12.8% average tariff rate on its exports to the US), India (4.01%), Indonesia (5.73%), and Vietnam (7.41%). Progress in trade facilitation would likely have even greater pay-offs to growth and employment, but these require structural reforms and investments, while the decision to remove tariffs is a simpler, “stroke-of-the-pen” measure.

Why Investors Support a Price on Carbon

Global Investor Coalition on Climate Change's picture

Also available in Français | Español | العربية | 中文

Generating clean energy in New Zealand. Jondaar_1/Flickr Creative Commons

By Stephanie Pfeifer, Institutional Investors Group on Climate Change (Europe); Nathan Fabian, Investor Group on Climate Change (Australia/New Zealand); Chris Davis, Investor Network on Climate Risk (North America); and Alexandra Tracy, Asia Investor Group on Climate Change.


The British economist Lord Nicholas Stern has labelled climate change “the greatest market failure the world has ever seen.” Failing to put a price on carbon emissions leaves the market with no way to address the harm created by these emissions. And with no cost attached to a harmful activity, participants in the market have no incentive to pursue less harmful alternatives. Thankfully, this is changing.

About 40 national and more than 20 sub-national jurisdictions globally have implemented or are scheduled to implement carbon pricing schemes. The world’s emissions trading schemes are valued at about $30 billion, with China home to the world's second largest group of carbon markets, covering the equivalent of 1,115 million tons of carbon dioxide emissions, after the 2,309 million tonnes covered by the EU’s Emissions Trading Scheme.

This progress is good news, and furthering the spread of carbon pricing is essential. Putting a price on carbon reduces emissions and the costs associated with these emissions, costs that end up being borne by everyone, including companies and societies, through an array of impacts resulting from climate change.


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