When I first arrived in Sana’a in early 2012, I met with many segments of Yemeni society; including political leaders, civil society organizations, youth, and women leaders and, of course, the new government. From the conversations I had, it was clear that education was always foremost on everyone’s mind.
Middle East and North Africa
Recently, the Jordan Transparency Center conducted a Corruption Perceptions Index (CPI) study for the years 2001–2014 based on the guidelines issued by Transparency International. A team of academics, researchers and legal experts at the Center gathered information from local and international reports, highlighting what they see as reasons for corruption in Jordan
There is a remarkable connection between the public and private sectors in Tunisia, an intersection that I prefer to call “the Golden Boys”. It seems that Tunisia has not learned from its past mistakes; in fact, it risks going back to the old days when an elite benefited from state resources and got rich at other peoples’ expense. Everything points to the fact that Tunisia is once again providing fertile ground for corruption.
A view from Central Europe and the Baltics
Energy subsidies are common throughout the world. The bulk of subsidies are paid in the Middle East and North Africa where my colleague, Shanta Devarajan, has eloquently blogged about their corrosive impact on economic growth, on employment, on human health and on water conservation. Where I sit, in Central Europe, many countries are in the process of liberalizing their market for energy and bringing subsidies to an end. What lessons does the experience of energy price liberation in this group of countries offer to their neighbors in the south? Based on the work of my colleagues, Nistha Sinha and Caterina Ruggieri, I would draw five lessons.
Prior to Kuwait’s independence on June 19, 1961, it had experienced periods of political instability. It had been the hope that turning into a state and adopting a constitution would end the political chaos and serve as a catalyst for Kuwait’s development.
Corruption is a frequently used word. But what is the exact definition of corruption? Is it the abuse of office or is it the absence of laws penalizing and preventing it? Does it mean a lack of enforcement of laws or the absence of justice altogether?
The recent, precipitous decline in oil prices (35 percent so far this year) has revived the question of how oil-exporting countries should manage their budgets. These countries’ governments rely on oil revenues for 60-90 percent of their spending. In light of the price drop, should governments cut expenditures, including growth-promoting investment expenditures? Or should they dip into the money they saved when oil prices were high, and keep expenditures on an even keel? Since oil prices fluctuate up and down, governments are looking for rules that guide expenditure decisions, rather than leaving it to the politicians in power at the time to decide whenever there is a price shock. The successful experience of Norway and Chile, which used strict fiscal rules to make sure that resource windfalls are saved and not subject to the irresistible temptation to spend, is often contrasted with countries such as Nigeria and Cameroon, which didn’t.
At times, I ask my friends in Nepal, why they would not launch a business, especially when they have funds. A common obstacle for everyone is that they say you have to bribe government officials to even open a business.
Turns out, this isn’t unique to Nepal. According to Drivers of Corruption, a report recently published by the World Bank,
. These charts are based on surveys of more than 13,000 firms in 135 countries, by World Bank Enterprise Surveys.
Check out these charts and tell us if you are surprised.
Concerns about the so-called “middle-income trap” have recently emerged among many middle-income countries, particularly after the term was coined in 2007 by two World Bank economists. Worried that they may become “trapped” at the middle-income level, these countries are seeking a set of policies that can help them achieve strong and sustained growth and eventually help them join the league of high-income countries.
In our recent paper, we try to shed some light on both issues. First, we do not find that countries are trapped at middle income. “Escapees” – countries that escaped the middle-income trap and obtained a per capita income higher than 50% of the U.S. level – tend to grow fast and consistently to high income, and do not stagnate at any point as a middle-income trap theory would suggest. In contrast, “non-escapees” tend to have low growth at all levels of income. In other words, while the existence of a middle income trap implies that growth rates systematically slow down as countries reach middle-income status, no such systematic slowdown is apparent in the data. Second, we provide some descriptive and econometric evidence for a different set of “fundamentals” that enable middle-income countries to grow faster than their peers. We find that faster transformation to industry, low inflation, stronger exports, and reduced inequality are associated with stronger growth.
- Middle Income Trap
- Middle Income Countries
- Global Economy
- South Asia
- Middle East and North Africa
- Latin America & Caribbean
- Europe and Central Asia
- East Asia and Pacific
- Korea, Republic of
- Hong Kong SAR, China
- Taiwan, China
- Puerto Rico
- United States