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developing countries

Peer Pressure: Tax competition and developing economies

Michael Keen's picture
A race to the bottom. Graphic by Nicholas Nam/World Bank

Economists tend to agree on the importance of competition for a sound market economy. So what’s the problem when it comes to governments competing to attract investors through the tax treatment they provide? The trouble is that by competing with one another and eroding each other’s revenues, countries end up having to rely on other—typically more distortive—sources of financing or reduce much-needed public spending, or both.

All this has serious implications for developing countries because they are especially reliant on the corporate income tax for revenues. The risk that tax competition will pressure them into tax policies that endanger this key revenue source is therefore particularly worrisome.

The world’s refugee crisis needs both a humanitarian and longer-term response

Jim Yong Kim's picture
Denham and his family have been refugees living in this tent for the last four years. © Dominic Chavez/World Bank


The world's greatest risks can't be confined within borders. This is clearly the case with the ongoing refugee crisis, which is unprecedented in scale and affecting people and places far from the scene of civil war, fragility and conflict. The UK vote to leave the European Union showed, in part, the volatility and reach of the impact of forced displacement.

SMEs finance leapfrogs through fintech innovations

Gloria M. Grandolini's picture



Since more than 50% of small and medium-sized businesses (SMEs) worldwide lack adequate access to credit, the international community is proposing reforms that will help countries strengthen their financial infrastructure and make it easier for SMEs to borrow funds needed to operate and expand.

A peek at the media coverage of SDGs: What is it telling us?

Mauricio Ríos's picture

Pope Arrives in General Assembly Hall for His AddressThe United Nations General Assembly recently adopted the Sustainable Development Goals (SDGs) in New York in the midst of great expectation and hype. The 17 SDGs, with 169 specific targets, are now becoming the road map for governments and the international development community for the next 15 years.

Now that all the publicity and excitement are starting to settle down, it seems opportune to look at the media coverage of the SDGs and developing countries to get a sense of how that coverage has played out over the past few weeks, and what some of the insights are that we can learn from for the way forward. This coverage mainly includes articles from various publications, websites, and blog posts in the English language. It does not include social media statistics from Tweeter or Facebook.  

An analysis of this media coverage featuring the key words “SDGs” and “developing countries” show that, over the past three months, more than 2,400 articles mentioned these two key words somewhere in the text of the articles. The analysis, using the Newsplus database, covers the period July 8-October 8. It shows that almost a quarter of that coverage (more than 600 entries) took place during the last week of September when the UN meetings were held. However, the second week of July, right before the summer break, was also active in terms of SDG-related coverage, signaling an important communications effort in the lead up to the UN September meetings.

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Migration and Development: The $100 billion idea

Alejandra de Lecea's picture
Traffic congestion results in an estimated productivity loss of around PHP2.4 billion ($54 million) a day or more than PHP800 billion ($18 billion) a year.



From my house in northern Quezon City, I drive more than two hours every day to get to the office in Bonifacio Global City, which is about three cities away where I come from, and two cities away from the capital Manila. It’s a journey that should only take around half an hour under light traffic. That is a total of four hours on the road a day, if there is no road accident or bad weather. It takes me an hour longer whenever I use the public transport system. Along with hundreds of thousands of Metro Rail Transit (MRT) commuters, I have to contend with extremely long lines, slow trains, and frequent delays due to malfunctions. This has been my experience for several years. Many of us might be wondering: why have these problems persisted?

Mobile connectivity in Africa has already arrived

Borko Handjiski's picture

Las economías crecen más rápido cuando las mujeres trabajan, pero en todas las regiones del mundo existen barreras que impiden a las mujeres tener acceso al empleo. En el informe Mujer, Empresa y el Derecho 2018 se analizan 189 economías y se constata que, en 104 economías, las mujeres enfrentan algún tipo de restricción que les impide trabajar. En el 30 % de las economías existen barreras que prohíben a las mujeres trabajar en empleos considerados peligrosos, arduos o moralmente inapropiados; en el 40 % se impide a las mujeres trabajar en determinados sectores, y en el 15 % hay barreras que no permiten a las mujeres trabajar de noche. Más

 

Lucky Countries Or Lucky People: Will East Africans Benefit From Their Natural Resource Discoveries?

Borko Handjiski's picture

Luck has struck the region of East Africa: for a couple of years now, new announcements of natural resource discoveries are being made every few months. Mozambique has found some of the largest natural gas deposits in the world, while Tanzania, Uganda, and Kenya have also discovered gas and oil. Exploration is still ongoing, so even more discoveries could be forthcoming. Luck has definitely struck the region, but the main question is: how will the people in these countries benefit from this?

Disentangling the Economic Uses of Bitcoin as Currency

Jamus Lim's picture

This is the eleventh entry in this year's job market series. You can read the previous entries here.

"On March 5th, we went to sleep as poor colonos [laborers]. On March 6th, we woke up rich, as landholders."  –Cooperative Member, La Maroma Cooperative, 2017

Cooperative Property Rights in Latin America

Latin America has high levels of land inequality. In fact, land inequality is frequently cited as a key driver of Latin America’s comparative underdevelopment. In response to these high levels of inequality, over half of Latin American countries have attempted land reform programs to transform haciendas, in which an owner contracts laborers to work on the land, into agricultural cooperatives, in which workers jointly own and manage production. The figure below illustrates the Latin American countries that have attempted a land reform since the 1920s.
 

 

Collier–Sandefur Debate on Migration – What is the Question Please?

Christian Eigen-Zucchi's picture

Paul Collier and Justin Sandefur are discussing migration with recent postings on the popular From Poverty to Power blog hosted by Duncan Green of OXFAM.  But, can we please first agree on the question?

Collier’s blog-post starts with the question of how emigration affects people in countries of origin, and goes on to emphasize that the pertinent issue is “whether poor countries would be better off with somewhat faster, or somewhat slower emigration than they have currently.” His answer, in a nutshell, is that it depends: on the country of origin (“in small countries that are falling further behind … brain drain predominates” when there is further skilled migration) and the emigrant (students – good, unskilled – fine, skilled worker – may already be excessive). To this, one could also add that it depends on the host country (and the scope for migrants realizing their potential there) and the circumstances of the migration (voluntary or forced).

Global investment patterns will see radical changes by 2030

Jamus Lim's picture

 TonyV3112/Shutterstock

A dangerously warming planet is not just an environmental challenge – it is a fundamental threat to efforts to end poverty, and it threatens to put prosperity out of the reach of millions of people.  Read the recent Fifth Assessment Report from the Intergovernmental Panel on Climate Change if you need further evidence.

If we agree it is an economic problem, what do we do about it?  There is general agreement among economists that a robust price on carbon is a key part of effective strategies to avert dangerous climate change. A strong price signal directs finance away from fossil fuels and toward a suite of cleaner, more efficient alternatives.

This logic is not lost on governments and companies.  Momentum is building around the globe to put a price on carbon.  Consider these facts:


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