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Global Economy

In praise of folly: How modern development partners are learning the lessons of Erasmus

Bertrand Badré's picture
A student in Afghanistan. © Sofie Tesson/World Bank

What a remarkable and busy six weeks!

There has been a tremendous re-energizing globally to explore and identify ways to finance the proposed Sustainable Development Goals (SDGs). The international recognition that the SDGs need to go even further than the previous Millennium Development Goals has prompted discussion of how to get from billions to trillions of dollars to achieve sustainable and inclusive development.

Closing thoughts on the "Harnessing Digital Trade for Competitiveness and Development" conference

Rosanna Chan's picture

Fiber optic light bokeh. Source - x_tineDigital entrepreneurs have the potential to connect to global markets like never before. Whether selling physical goods on internet platforms, or providing digital goods and services that can be downloaded and streamed, an entirely new ecosystem of innovative micro and small businesses has emerged in the developing world.
The World Bank Group hosted some of the pioneers in this space for a full-day conference on Harnessing Digital Trade for Competitiveness and Development on May 19. Here, we heard entrepreneurial success stories—an online platform for jewelry in Kenya, a provider of software solutions in Nepal, an online platform for livestock trade in Serbia—and dove into the constraints and challenges of running a digital business in an emerging economy.
The scope of these challenges made these success stories, and the broader potential they represent, even more inspiring. From internet connectivity to logistics, from financial payments to trade regulations, from bankruptcy laws to entrepreneurial and consumer digital literacy-- clearly, more needs to be done to fully harness the potential of digital trade for competitiveness and development and to foster an enabling environment to digital trade.

Media (R)evolutions: The mobile industry's multiplier effect on the global economy

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

The global mobile technology industry continues to grow and is now a major source of employment generation.  When mobile operators purchase inputs and services from their providers in the supply chain, they generate sales and value added in other sectors and industries, creating a multiplier effect on the rest of the economy.  Accordingly, employment in the mobile technology industry can be directly tied to the product, like engineers, managers, and sales staff that work for mobile operators and manufactures, but it can also be indirectly tied to the product, like application development, content provision, and call centers that serve not only mobile operators and manufacturers but also third-party content and device producers. In some developing countries, outsourcing of mobile content development creates significant numbers of indirect employment opportunities.

In 2014, it was estimated that the mobile technology industry directly employed approximately 12.8 million people globally and 11.8 million people indirectly, bringing the total impact to just under 25 million jobs.
Global mobile ecosystem employment impact

India, China and our growth forecasts

Kaushik Basu's picture

Last month, the World Bank and IMF both put out predictions that, this year, India would overtake China in terms of GDP growth rate. This caused a flutter and was widely reported around the world. How robust is this prediction and what does it really mean?

First, this is not as monumental a milestone as some commentators made it out to be. China has had one of the most remarkable growth runs witnessed in human history, having exceeded an annual growth of 9% from 1980 to now. Four decades ago its per capita income was close to India’s, but now it is four times as large as India’s. None of all this is going to change in a hurry.

With this caveat in mind, it is a year in which India deserves to feel good. It is expected to top the World Bank’s chart of growth rates in major nations of the world. This has never happened before. Before 1990, India did occasionally grow faster than China, mainly because China’s growth gyrated wildly during the pre-Deng Xiaoping period. It was, for instance, minus 27% in 1961, when Mao Zedong’s Great Leap Forward resulted in the world’s biggest famine, and it was 17% and 19% in 1969 and 1970, respectively--a relief in the wake of the Cultural Revolution. Fluctuations of this magnitude would be intolerable to India’s polity.

South-South investment: development opportunities and policy agenda

Anabel Gonzalez's picture
Worker in a factory in India. Photo - Ray Witlin / World Bank.The growing phenomenon of investment by developing country firms in other developing countries – sometimes referred to as ‘South-South investment’– offers significant development opportunities for the World Bank Group’s client countries. Obtaining a detailed picture of South-South investment flows and stocks is difficult because in many countries data on foreign direct investment (FDI) are inaccurate and insufficiently disaggregated. Still, the overall trend is fairly clear:
  • South-South FDI is seeing important growth. According to OECD stocktaking, the share of South-South FDI in total world FDI has grown from some 3% at the beginning of the century to around 14% in 2009. See the OECD’s Development Co-operation Report 2014
  • South-South FDI has stayed strong even as global FDI has been volatile. Despite a fall in FDI from OECD countries by 57% below 2007 levels in 2012, FDI from developing countries rose by 19 percent, according to the OECD’s Development Co-operation Report 2014.
  • South-South mergers can lead to economic upgrading. In 2013, over two-thirds of gross cross-border mergers and acquisitions by Southern multinational enterprises (MNEs) targeted partners in developing and transition countries, and half of these involved foreign affiliates of MNEs from developed countries passing their assets on to MNEs from developing countries, according to UNCTAD’s World Investment Report 2014.

If Sri Lanka is to join the knowledge economy, it needs to improve its education, training and skills

Nisha Arunatilake's picture
With innovation taking a central role in driving markets, countries are increasingly looking to invest in innovation and technological change to be competitive and improve productivity. Innovation is driven by talent and creativity. But the demand for highly skilled workers, especially workers in the science and technology fields are increasing globally.

Global Citizen Earth Day: Rallying for People and the Planet

Dani Clark's picture

On April 18 close to 300,000 people united under a warm sun on the National Mall in Washington, DC, for Global Citizen 2015 Earth Day, a momentous day-long mix of advocacy and entertainment, urging citizen action to help end extreme poverty by 2030 and stop climate change.

Musical acts alternated possession of the stage with a diverse cadre of global leaders making policy commitments and calling citizens to action throughout the eight-hour event. Superstars like Mary J. Blige, Usher, and the band No Doubt roused the massive crowd which spilled out on green grass around the iconic Washington Monument. More than 2 million people tuned into the live webcast on YouTube.

“2015 is the time for global action. You have the power, your generation can change, your generation can make a difference,” UN Secretary General Ban Ki-moon told the crowd, sharing the stage at the end of the event with World Bank Group President Jim Yong Kim and IMF Managing Director Christine Lagarde.

Wanted! Your proposals on Regional Integration in South Asia

Sanjay Kathuria's picture
Wanted! Your proposals on Regional Integration in South Asia

Home to Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, South Asia is one of the fastest growing regions in the world and yet one of the least integrated. Intra-regional trade accounts for only 5% of South Asia’s GDP, compared to 25% of East Asia’s. Meanwhile, with a population of 1.6 billion, South Asia hosts one of the largest untapped talent pools.

To encourage young researchers in the region who aspire to use their research to inform policy making, the World Bank Group calls for research proposals on South Asia regional integration. Proposals will be carefully reviewed and the most suitable proposals (no more than five overall) will be awarded with a grant based on criteria listed below. An experienced researcher from the World Bank’s research department or an external academic will mentor and guide the young researcher in the implementation of the research.[1]

Economists weigh in on oil prices and an uneven global recovery

Donna Barne's picture
World Bank chief economists, clockwise from upper left: Senior Vice President and Chief Economist Kaushik Basu, Augusto de la Torre (Latin America and the Caribbean), Shanta Devarajan (Middle East and North Africa), Francisco Ferreira (Sub-Saharan Africa), Sudhir Shetty (East Asia and Pacific), Hans Timmer (Europe and Central Asia), Martin Rama (South Asia).

​Lower oil prices are a boon for oil importers around the world. But how well are oil-producing countries adapting to the apparent end of a decades-long “commodity supercycle” and lower revenues? And what does this mean for the global economy?

World Bank economists provided insights on the situation in six developing regions at a webcast event April 15 ahead of the World Bank Group-IMF Spring Meetings. The discussion focused on the challenge of creating sustainable global growth in an environment of slowing growth.

World Bank Chief Economist Kaushik Basu said the global economy is growing at 2.9% and is “in a state of calm, but a slightly threatening kind of calm. … Just beneath the surface, there’s a lot happening, and that leads to some disquiet, concern – and the possibilities of a major turnaround and improvement.”