In the recently released Global Economic Prospects June 2012, World Bank experts warned of long period of volatility. Resurgence of the Euro Area tensions had eroded economic gains of first 4 months of 2012, said the report. And as the leaders of the 27 European Nations convened in Brussels yesterday to tackle the crisis, it was labeled as the “last chance” summit. The outcome: Up All Night, But Consensus Finally Reached, says a Time.com story. According to the story, published today, “Yet, despite what were described as tense and grinding negotiations, decisions announced early Friday morning appear to represent important steps towards the survival of the embattled euro zone—and in both the short- and long-term context of the crisis.” This much needed move comes at a crucial point and will hopefully have a positive impact on developing countries. However, a lot remains to be done. Following is a sampling of some interesting research and analysis by World Bank as well as others highlighting issues of current import to global economy and development.
Many feared a return of 1930s-style protectionism when recession hit the global economy. But many countries avoided this. In a blog post, co-authored with Meredith Crowley, I focus on US and EU trade policy and discuss how this policy withstood the ‘Great Recession.’ The following is an excerpt from the post which appeared on Vox.
“During the Great Recession, import protection increased around the world (Evenett, 2011). Popular policies included antidumping tariffs, safeguards, and other temporary trade barriers (Bown 2011a,b). Despite this, for high-income economies such as the US and EU, such trade barriers increased much less than initially feared. In this column, we ask how and why.
Our latest regional outlook shows a two-track path for growth in MENA. In 2012 oil exporters are likely to fare much better than oil importers in the Middle East and North Africa (MENA). Growth of MENA’s oil exporting countries will be strong and rise from the average of 3.4 percent in 2011 to 5.4 percent in 2012. The new Regional Economic Update presents the outlook for MENA in the context of rapidly-evolving global and domestic environments, recognizing the linkages that matter for shaping country-specific outlooks and the multiple risks that could alter them.
Everyone in Egypt has a botagas story. If you walk the busy and pleasantly noisy Cairo streets, as I often do in the early evening during my visits, you pass scores of fast-food shops, cafés, and makeshift tea stands, their bluish botagas flames burning steadily in the fading light. I am sure their owners have many botagas stories to tell. Newspapers often run these stories as well, usually with a photo of a queue of people with mixed expressions – a few smiling faces leaving with heavy bottles and many more anxiously waiting to try their luck. My colleague Khaled tells his own story in the accompanying “botagas” blog and it also ends on an unhappy note: botagas is not easy to get nowadays. So, what is behind these unhappy botagas stories?