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Organization of Eastern Caribbean States

So what can be done to contain volatility and spur growth in these countries?

Francisco G. Carneiro's picture

We could be the generation that puts an end to extreme poverty. This is a bold claim that often prompts raised eyebrows and murmurs of disbelief. But it is an idea that Save the Children, The World Bank, and others have been reiterating as we engage with the international process to define a new  framework to replace the Millennium Development Goals (MDGs) – a set of concrete human development targets that have united global efforts to fight poverty since 2002, and are set to expire in 2015. 

But while ending extreme poverty is, of course, a laudable vision, is it a feasible proposition?  Could we really be the generation that achieves it, finishing the job that the MDGs started?

How does this affect the small island economies of the Caribbean?

Francisco G. Carneiro's picture
Understanding Macroeconomic Volatility: Part 4. Click to read the rest of the series

What’s the connection between financial development, volatility, and growth?

Francisco G. Carneiro's picture
Understanding macroeconomic volatility part 3
Read parts 1 & 2


There’s good evidence that a country’s level of financial development affects the impact of volatility on economic growth, particularly so in less developed countries, as the charts below demonstrate
 

Do rich and poor countries have different approaches to counter-cyclical spending?

Francisco G. Carneiro's picture
Understanding Macroeconomic Volatility: Part 2

The fact is that a government can soften a recession by increasing spending (the counter-cyclical approach) to raise demand and output. If government reduces spending (the pro-cyclical approach), the likely result is a deeper recession.

Tame macroeconomic volatility to boost growth and reduce hardship in the Caribbean

Francisco G. Carneiro's picture
Volatility in financial markets gets wide attention in the public eye. Less noticed is what we in the development world call macroeconomic volatility—faster-than-desired swings in the broad forces which shape an economy. Think investment, government spending, interest rates, foreign trade and the like.

There are three key questions to analyze: how do these forces interact, what is their effect on overall growth, and what policies are best to follow? All this is of more than academic interest: macroeconomic volatility can bring substantial hardships to millions of people

Channeling Caribbean diaspora dollars back home

Qahir Dhanani's picture
It will take Karachi as much as $10 billion of capital investment over the next decade to close the infrastructure gaps in the city.
 
On the ground, it is not too difficult to see why this is so. More than 40% of residents rely on public transport, but with 45 residents competing for one bus seat, travel within the city is difficult. Water supply is highly irregular, and rationing is widespread. The availability of water ranges from four hours per day to two hours every other day. Many households rely on private vendors who sell water from tankers at high prices. The sewage network has not been well maintained since the 1960s, and all three existing treatment plants are dysfunctional. Industrial waste, which contains hazardous materials and heavy oils, is dumped directly into the sea untreated. Of the 12,000 tons of municipal solid waste generated each day, 60% never reaches a dumpsite; 80% of medical waste is not disposed of properly.

[Download report: Transforming Karachi into a Livable and Competitive Megacity]
Garbage accumulated on a road median in Karachi. Photo: Annie Bidgood / World Bank