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China: The Morphing Dragon

Otaviano Canuto's picture

The Chinese economy has changed dramatically over the last three decades. While its per-capita income was only a third of that of Sub-Saharan Africa in 1978, it has now reached an upper-middle income status, lifting more than half a billion people out of poverty. The numbers are dramatic: per capita income has doubled for more than a billion people in just 12 years. What was once a primarily rural, agricultural economy has been transformed into an increasingly urban and diversified economic structure, with decentralization and market-based relations rising relative to the traditional government driven command-based economy.

Brazilian Competitiveness: Folia and Hangover

Otaviano Canuto's picture

As the Carnival in Brazil kicked off last weekend, Brazilians were ready for a party. They have reasons to celebrate. Despite a lackluster GDP performance in the last two years, unemployment rates remain at record low levels.

A remarkably stable outlook for China

Louis Kuijs's picture

As we were wrapping up the work on our new China Quarterly Update (of which I am the main author), looking at our main conclusions and messages on economic developments in China, prospects, and the key policy challenges and tasks, I noticed that, despite lots of new data and all the headlines about changes, likely changes and risks, our overall conclusions and views have not changed all that much since June, when we released the last one. Noticing this was sobering but also somehow comforting.

China's import surge: standard economic theory prevails

Louis Kuijs's picture

When China’s government started to work on and implement its massive stimulus program in November last year in light of a rapid deterioration of the world economy, economists working on China had to work out what it all meant for

The Important Role of Ready Made Garments to Bangladesh’s Export Earnings

Abul Basher's picture

Bangladesh’s export earnings are mostly determined by the export of readymade garments (RMG) to North American and European countries with 75% of total export earning coming from this sector. Quite understandably, the economic crisis in those countries unnerves us.

Fortunately, the clothing sector has remained more or less unscathed by the global crisis even as the trepidation among the entrepreneurs, policy makers and economists is still very high. During the last fiscal year (2007-08), the overall growth of the export of RMG was 16.16% which increased to 23.48% between July 08 and January 09 of the current fiscal year.

Readymade garments are the largest export industry and determine the dynamics of total export earnings for Bangladesh RMG is still growing at a satisfactory rate. There is no strong indication of any negative impacts of the global economic crisis on RMG as of today, but the future continues to be unpredictable.

Does Collusion Exist in Bangladesh’s Commodity Markets?

Zahid Hussain's picture

Co-authored with FARRIA NAEEM

There is widespread belief among Bangladeshi media, civil society and think tanks that collusion exists in the supply chain of many essential commodities, and many blamed this for the price hike in the first half of 2008. Keeping prices low is a high priority for the government. It is therefore important to measure the presence of market collusion through empirical evidence and design appropriate policy responses to mitigate its impact on prices in order for the government to continue to meet its election promise.

Bangladesh is a net importer of major food items. In the absence of market influences and duties, domestic and international prices are expected to be similar. The convergence may not be exact due to transportation and taxation costs but price should follow similar trends as movements of international commodity prices do not of domestic and international markets do not often vary.

We examine and compare the co-mol prices of four essential food items (coarse rice, flour (atta), salt and soybean oil) over time to look for signs of market influences.

Is trade an automatic stabilizer for Bangladesh’s economy?

Abul Basher's picture

The global economic downturn and the consequent pessimistic outlook for exports in developing countries like Bangladesh have reinvigorated voices for protectionism. Even pro-trade minds have vented their skepticism about trade liberalization, as if the punch of the ongoing crisis could be shielded with the help of an embargo on trade with the rest of the world!

Such thoughts, derived from the gloomy prospects of exports, ignore the potential benefits drawn through the imports and disregard the lessons learned from history- that economic isolation leads to further impoverishment.

Dead as a Doha?

Michael Figueroa's picture

After seven years of fitful trade negotiations, the WTO’s Doha Round has collapsed, and the post mortems have already hit the newsstands.  Writing in the International Herald Tribune, Keith Bradsher points to a new alliance between China and India, both pushing for so-called “safeguard” rules for agriculture, translating into uncapped tarif