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international trade

What Policies Will Allow Russia Achieve Environmentally Sustainable Growth?

Adriana Jordanova Damianova's picture

The Russian Federation’s accession to the World Trade Organization (WTO) is an event of exceptional importance.  On many levels, there are concerns that the environment in Russia will  be negatively affected by trade liberalization.   A growing body of research looking at economic and physical linkages between trade, environment and development shows that  these linkages are often complex and interdependent. 
 
Scientists have implicated that from an economic perspective, trade liberalization and environment are related because most economic output is  based on input from the environment, including the energy for processing them, and waste released to environment.  However, the effect of trade liberalization  on the environment would vary depending on  sector, country policies, markets, technologies and management systems. Changes in environmental quality as a result of potential expansion of “dirty industries” (e.g., ferrous and non- ferrous metals, chemicals) could be mitigated by effective and transparent enforcement mechanisms.  Russia’s economic gains from trade liberalization are estimated at  about $49 billion annually.  For these gains to be environmentally sustainable, it will be crucial to implement complementary “do-no-harm” policies tailored to address environmental concerns. This  will be pivotal in  sustaining the sources of gains from WTO accession in the long run.
 
So how does trade liberalization affect environmental quality?

Improving Connectivity for Landlocked Developing Countries: Preparing the comprehensive 10-year review of the Almaty Programme of Action

Nora Weisskopf's picture

A New Mechanism for South-South Knowledge

Susana Carrillo's picture

In my previous blog entry, I mentioned the expected growing engagement between Brazil and Sub-Saharan African countries in 2012, to exchange knowledge and further economic and social development.

Why Dwell Time Matters

The state-owned operator of Indonesia’s Tanjung Priok Port is taking major steps to decrease congestion at the country’s main gateway. The company, Pelindo II, recently announced it will increase storage fees at the port to discourage shippers from leaving containers there for long periods of time. It has also said it will install a new information technology system to better monitor and direct traffic at the port.

The two initiatives are an effort to boost the performance of a port that handles two-thirds of Indonesia’s international trade. The container traffic at Tanjung Priok has grown at a rate of about 20 percent the last two years and is expected to double by 2015. But containers arriving at the port spend an average of 6 days to obtain clearance and get removed, one of the highest “dwell time” rates in the region and up from 4.9 days in 2010.

Economists and government officials are trying to bring down this number. As a statistic, dwell time is a vital measure of a country’s ease of trade. When dwell time is high,

Brazil and Africa: Bridging the Atlantic

Susana Carrillo's picture

Linked in the distant past through colonial-era trade enterprises, Brazil and Africa are becoming close partners again. More than two centuries after establishing a slave trade route across the Atlantic, both regions are again re-engaging, this time to exchange knowledge and further economic and social development.

Sub-Saharan African countries are looking to replicate Brazil’s successes in boosting agricultural production and exports, and private investments, which have made Brazil a key economic player in the international arena. This is no coincidence. The world is going though rapid changes, resulting in a new financial architecture, with emerging economies and countries in the South increasingly participating and influencing global decisions.

Reducing the Infant Mortality of African Exports: The role of information spillovers and network effects

Leonardo Iacovone's picture

Helping African exporters survive in international markets should be a high-priority item on the agenda of development agencies. African exports suffer from high “infant mortality” compared to other regions of the world: Figure 1 shows that the life expectancy of export spells originating from sub-Saharan Africa is about two years (half the level for East Asia and the Pacific), with a median—not shown—around one year. That is, half of the continent’s exporters don’t make it past the first year. Such “hit-and-runs” on international markets cannot establish networks, relationships, and credibility.

Figure 1: Average Spell Survival, by exporting region

Source: Author's calculations, from COMTRADE data

FDI in Southern Africa: Microeconomic Consequences and Macro Causes

Foreign direct investment (FDI) can theoretically reduce income gaps between developing and advanced economies. In a neoclassical world, with perfect capital mobility and technology transfer, capital readily flows from rich to poor countries, seeking higher returns in capital-scarce economies. The real world differs starkly from the theory.

Even though southern African countries (the Southern African Development Community, SADC hereafter) are poor on average, per capita FDI inflows are a meager 36.6 U.S. dollars per year (in 2000 value), which is about 18 percent of average per capita FDI in non-SADC countries and 58 percent of the average level for similar-income economies. Moreover, within SADC, country differences are huge: FDI per capita ranges from single digits (Malawi, Zimbabwe, Madagascar, Democratic Republic of Congo, and Tanzania) to 10-30 dollars (Mozambique, Zambia, Mauritania, and Swaziland), to 50 to 100 dollars (Lesotho, South Africa, and Angola), and to 167 dollars in the outlier in this region, middle-income Botswana. And even within this region there is a positive relationship between average income and FDI per capita, a pattern that holds for the world as a whole. Thus, any hope of relying on FDI as a supply-side remedy to catapult poor countries onto a development fast track is not likely to materialize soon.