The WTO will soon initiate its 500th formal dispute, and discussions of such international litigation are now a media mainstay. Last Thursday, for example, the WTO’s Appellate Body released its latest ruling, upholding most of a set of legal challenges to China’s use of export restrictions on “rare earth” materials, a set of intermediate inputs important for green technologies such as wind turbines, batteries for gas-electric hybrid cars, etc. Other recent examples of formal WTO litigation in the news include the EU’s challenge to Russia’s import restrictions on vans, the US’s challenge to Chinese barriers to autos, and Canada’s and Norway’s challenges to an EU ban on trade in seal products.
It’s 38°C (99°F) in Ouagadougou, the capitol city of Burkina Faso, today—and it’s been this hot all week. The end of the warm season is near, but in places like Ouaga (pronounced WAH-ga, as its better known), temperatures stay high year-round. These are the African drylands: hot, arid, and vulnerable.
Over 40 percent of the African continent is classified as drylands, and it is home to over 325 million people. For millennia, the people of these regions have adapted to conditions of permanent water scarcity, erratic precipitation patterns, and the constant threat of drought. But while urban centers like Cairo and Johannesburg have managed to thrive under these harsh conditions, others have remained mired in low productivity and widespread poverty.
The World Bank has been partnering with a team of regional and international agencies to prepare a major study on policies, programs, and projects to reduce the vulnerability and enhance the resilience of populations living in drylands regions of Sub-Saharan Africa.
You can find it here.
Using gross figures of exports and imports to approach the contribution of trade to economic growth and a country’s resource allocation may be misleading. Products often cross borders more than once while being processed until their final use and may thus be counted multiple times. Furthermore, given the increased use of imported intermediate goods and services associated with rising global trade flows in the last decades, not only exports of goods and services carry some content of imported inputs classified in other sectors, but also some exports of intermediate products may return embedded in imported final products. Therefore, in order to gauge appropriately where and how much is the value added by a country’s employed labor and other factors of production, one has to do due accounting of those intra- and cross-sector trade in order to measure trade in value-added terms – see a thorough analysis in Mattoo et al (2013).
Food prices in international markets have spiked three times in the past five years: in mid-2008, early 2011 and mid-2012 (Figure 1). The first of those spikes – when rice prices more than doubled – prompted urban riots in dozens of developing countries. It may have contributed even to the unrest that led to the Arab Spring. The most common government response was to alter trade restrictions so as to insulate the domestic market from the international price rise. And the most common justification for that action (tighter export restrictions or lower import barriers on food staples) was that it would reduce the number of people who would fall into poverty. Not only are food prices politically sensitive, but many poor people are vulnerable to higher food prices, because the poorest people spend a large fraction of their incomes on food.
Merchandise trade has become an increasingly important contributor to a country’s gross domestic product (GDP), particularly for developing countries. Before the global financial crisis hit in 2008, merchandise trade as a percent of GDP for low- and middle-income economies was 57 percent, about 5% higher than for high-income economies. This is very evident in Europe and Central Asia (ECA) where merchandise trade accounts for 73 percent of the developing region’s GDP. Many ECA countries including Hungary, Belarus, and Bulgaria have merchandise trade to GDP ratios above 100 percent (155, 136, and 114 percent respectively in 2011), meaning merchandise exports are a large contributor to their overall economy.
Mention China at your next dinner party, and chances are you will be met with references about future superpowers, exchange rates, and the joys of traveling through gleaming new airports. And while the conversation may touch on the dining scene along the Bund or outstanding new restaurants in Shanghai and Beijing, the impact of food standards on global consumers will almost certainly not be the center of discussion.
The fact is, however, that trade in agriculture is one of the most important ways the world connects with China. China’s exports of food products increased from US$ 9.7 billion to US$ 56.3 billion between 1992 and 2012. The United States alone imported US$ 6.5 billion worth of Chinese fish, seafood, juice, vegetables, fruit, and other food products in 2012—making China the third largest source of US food imports.
LONDON -- I'm just back from the G8 meeting in Northern Ireland, and under the leadership of Prime Minister David Cameron, we focused on some critical but often overlooked elements on how the world can end extreme poverty in a generation: taxes, trade, and transparency. Watch the video to see why I feel so strongly about this.