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Agriculture and Rural Development

The Resilience of Bangladesh's Economy May Again be Tested This Year

Zahid Hussain's picture

The Bangladesh economy entered FY10 in a position of strength, notwithstanding some pretty tough global circumstances. Good recovery in agriculture, a sustained growth in exports and remittances, and a steady growth in services helped achieve an estimated overall growth of 5.9 percent in FY09, compared with 6.2 percent in FY08. A decline in international commodity prices driven by the global recession and an improvement in domestic food supplies brought inflation down from 10 percent in FY08 to an estimated 7 percent in FY09. Rice prices have remained stable too at nearly 40 percent below the peak reached in April, 2008. The economy has shown reasonable stability in terms of most other macroeconomic indicators. The external current account has been in a large surplus; the exchange rate has been stable; foreign exchange reserves have reached record high levels of nearly $7.5 billion; fiscal balances have been contained; and private credit growth has remained decent.

This is all good news but it doesn’t mean Bangladesh goes totally unscathed by those tough global circumstances.

When Donors Unwittingly Subsidize Corruption and Ignore Collective Action

Sina Odugbemi's picture

There are seminars you attend and you leave both depressed and inspired. Last week, I attended a seminar on the rules of the game - how things really work not how they are supposed to work - governing two sectors in an African country: forestry and wild life management. As with any kind of gritty political economy analysis, you learn how corruption networks work in a particular context, how they reach to the very top, and how intractable they are.

Zai jian – Goodbye – See you again: a look back on China's progress upon leaving the World Bank

David Dollar's picture

This is my last week in the World Bank, after working at the institution for 20 years, the last five as country director for China and Mongolia.

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.

Local Actions, Global Benefits

Saptarshi Pal's picture

Highlights of the essay by Guillermo Recio Guajardo (Mexico) who is one of the eight finalists of The World Bank Essay Competition 2009.

Sierra Tarahumara, Mexico, is known for its enormous diversity of natural resources with over 7,000 plant species, or one fourth of all the botanical species in Mexico, that includes various species of forest resources, such as pine, fir, and ash forests.

Agricultural trade, global warming, and development: Part 1 Can global warming thaw the Doha negotiations?

John Nash's picture

As we approach a critical phase in the negotiations regarding climate change, and continue to grope for a way forward in the Doha Round negotiations, it seems to me to be worth emphasizing the multi-faceted linkages between a liberalized trade regime and climate change. Some of these linkages have received fairly extensive attention.  For example, it is widely recognized that trade barriers to movement of low-carbon technology need to be kept low, and this is being addressed (although some might think inadequately) under the rubric “trade in environmental services” in the Doha Round negotiations. But other connections have received, IMHO, a level of attention that grossly undervalues their potential to contribute to objectives on either the trade side or the climate change side, or both. This is especially true in the realm of agriculture.

2 weeks to Go!

Aaron Leonard's picture

Dear readers,

Proposals for the 2009 Global Development Marketplace are due in 2 weeks! There is still plenty of time to apply. We hope you take advantage and submit your idea today. The competition, funded by the GEF and other DM partners, aims to dentify 20 to 25 innovative, early-stage projects addressing climate adaptation. Winning projects receive up to US$200,000 in grant funding for implementation over two years.

The competition focuses on three sub-themes: 
  1) Resilience of Indigenous Peoples' Communities to Climate Risks
  2) Climate Risk Management with Multiple Benefits
  3) Climate Adaptation and Disaster Risk Management

For more information and to apply, visit our website at www.developmentmarketplace.org. The application deadline is May 18, 2009.

www.developmentmarketplace.org

Bank President unveils plans to deal with fallout of economic crisis

Angie Gentile's picture

World Bank President Robert B. ZoellickSpeaking at a news conference this morning ahead of the start of the World Bank/IMF Spring Meetings, Bank President Robert B. Zoellick hit on the need to address the second and third waves of economic fallout being felt in developing countries.

“First and foremost we need to ensure that we don’t repeat the mistakes of the past. When financial crises hit Latin America in the 1980s and in Asia in the 1990s…basic health, nutrition and education budgets were cut back severely. This time we must ensure that governments can protect targeted social expenditures and finance effective safety nets,” Zoellick said.

Nor can infrastructure be neglected, he said, citing the long-term negative consequences of slashing infrastructure investment during past crises. To help promote investment in roads, electricity, telecommunications, etc.--as a means of creating jobs and spurring economic growth--Zoellick said the Bank is planning a massive infrastructure initiative, to be formally launched on Saturday.

Zoellick also highlighted the Bank’s plans to boost support for agriculture—increasing lending from $4 billion in 2008 to $12 billion over the next two years to help ensure food security.

    

See more photos at the Spring Meetings 2009 Flickr set.

Watch President Zoellick's opening remarks at the news conference below:


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