Governments in the Arab world have long subsidized the price of energy. This gives citizens throughout the region access to cheap petrol and diesel, and electricity supplied at below-market rates. But what has been the real impact of subsidies, and do they justify the huge financial burden they place on national budgets? This is a critical question in the Middle East and North Africa (MENA), as the region represents a disproportionate share of the world’s energy subsidies.
Middle East and North Africa
If you think the summers in the Middle East and North Africa (MENA) region are hot—think again. Summers are likely to become much warmer. Global temperatures are rising; the question now is by how much and what the impact of them will be. People in the region already face very high summer temperatures—and these could get worse. Compared to the rest of the world, the MENA region will suffer disproportionally from extreme heat.
In our earlier blogs on corruption we have looked at the causes and consequences of corruption within the process of economic development. In our last blog, Six Strategies to Fight Corruption, we addressed the question of what can be done about it, and discussed the role of economic policies in developing the right sorts of incentives and institutions to reduce its incidence. This blog will provide some thoughts on the moral dimensions of corruption.
As Tunisia approaches the country’s Presidential elections on November 23, the ‘Arab Spring’ birthplace has a lot to be proud of, having safely wrapped up its first Parliamentary elections since the new constitution was ratified. However, election observers indicate that, as expected, the youth, the revolution’s driving force, remain reluctant to cast their vote.
While the world has seen a rapid reduction in extreme poverty in recent decades, the goal of ‘ending poverty’ by 2030 remains ambitious. The latest estimates show that 1 billion people (14.5% of the world’s population) lived below the $1.25 threshold in 2011. Projections until 2030 suggest that even under optimistic growth scenarios, the global poverty target may not be reached. The latest World Bank estimates show that if developing countries were to grow at the (rather unprecedentedly high) rates they achieved during the 2000’s the global poverty headcount could decline from 14.5% in 2011 to 4.9% in 2030 – short of ‘ending poverty’. These projections assume distribution-neutral growth – that every individual’s income within each country grows at the same rate, essentially keeping inequality unchanged. As in the past, overall growth will be an important driver of future poverty reduction, but the inclusiveness of growth will also matter.
Emerging market multinationals (EMMs) have become increasingly salient players in global markets. In 2013, one out of every three dollars invested abroad originated from multinationals in emerging economies.
Up until now, we have had a limited understanding of the characteristics, motivations, and strategies of these firms. Why do EMMs decide to invest abroad? In which markets do they concentrate their investments and why? And how do their strategies and needs compare to those of traditional multinationals from developed countries?
In a book we will launch tomorrow at the World Bank, “New Voices in Investment,” we address these questions using a World Bank and UNIDO-funded survey of 713 firms from four emerging economies: Brazil, India, Korea, and South Africa.
- Emerging Markets
- Emerging Economies
- cross-border investment
- foreign direct investment
- Public Sector and Governance
- Private Sector Development
- Law and Regulation
- Global Economy
- Financial Sector
- The World Region
- South Asia
- Middle East and North Africa
- Latin America & Caribbean
- Europe and Central Asia
- East Asia and Pacific
Over the course of a year, each Leadership Fellow develops an Action Plan for reform back home, ranging from girls’ education to police training to civil society strengthening, and will work on it during their UK visit, where they get inputs from people like me, discussions and visits to the UK Parliament and elsewhere.
I was presenting on theories of change (ToCs) – here’s my powerpoint. My co-presenter (from a UK thinktank) defined a ToC as ‘a conceptual map of how activities lead to outcomes’. As you might imagine, I disagreed with the implied linearity of that. But the disagreement, and the views of those present was interesting.
This is the third in our series of posts by students on the job market this year.
Economists tend to believe that travel and trade costs reduce welfare. Trade papers like Irwin (2005), Redding & Sturm (2008), Storeygard (2014), and Etkes & Zimring (2014) draw on evidence from the United States, West Germany, sub-Saharan Africa, and the Gaza Strip to support this idea. One might reasonably expect, therefore, that the welfare of Palestinian commuters declined during the Second Palestinian Uprising (2000-2007), when the Israeli army deployed hundreds of roadblocks and checkpoints along the West Bank’s internal road network in order to defend Israeli civilian settlements. Although these obstacles were intended to deter and intercept militants, they had the unintended consequence of delaying Palestinian civilian travel between Palestinian towns, and from Palestinian towns to Israel (B’Tselem (2007), World Bank (2007)). Two World Bank working papers (Cali & Miaari (2014), van der Weide et al (2014)) take advantage of this ‘natural experiment’ to study the effects of travel costs on commuters’ welfare, finding that economic outcomes of Palestinians declined in the face of obstacle deployment. My job market paper, however, finds a very different result: while obstacles reduced the welfare of laborers in some towns, laborers from other towns actually benefited from obstacles. The salient outcome of obstacle deployment was not welfare reduction, but rather welfare inequality.
While he is undoubtedly a great player, Lionel Messi may not be the best person to learn from when working on your soccer game. This is not because his team lost to Germany in this year’s World Cup, but that his playing style is likely very different from yours. The next steps on your path to improvement may be closer to a better player on your own team than that of the super-star.
To maintain current growth rates and meet demands for infrastructure, developing countries will require an additional investment of at least an estimated US$1 trillion a year through 2020. In the Mashreq countries, the required infrastructure investment for electricity alone is estimated at US$ 130 billion by 2020, and an additional US$108 billion by 2030.