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Global Economy

Toward Shared Prosperity, With an Urgent New Focus on Overcoming Inequality

Christopher Colford's picture

The challenge of promoting shared prosperity was one of the unifying themes throughout last week’s Spring Meetings at the World Bank Group and International Monetary Fund – the whirlwind of diplomacy and scholarship that sweeps through Washington every April and October. A remarkable new factor, however, energized this spring's event: In a vivid evolution of the policy debate, the seminars, forums and news-media coverage seemed focused, to a greater degree than ever, not just on the economic question of the creation of overall economic growth but on what has traditionally been seen as a social question: the distribution of wealth.

And in the wake of the Spring Meetings, Washington this week got a bracing reminder of how difficult it may be to build truly shared prosperity – not because our economic institutions lack the ability to achieve it, but because our political institutions may fail to summon the willpower to demand it.

A scholar whose work has taken the economics profession by storm, Thomas Piketty, captivated policy-watchers this week with the Washington launch of his landmark new work, “Capital in the Twenty-First Century.” Hailed as “the most important economics book of the year, and maybe of the decade” by Nobel Prize-winning economist Paul Krugman of the New York Times – and praised by Martin Wolf of the Financial Times as “an extraordinarily important” work “of vast historical scope, grounded in exhaustive fact-based research”– “Capital” offers vital new insights into how wealth and power are distributed in modern economies. “Piketty has transformed our economic discourse,” asserts Krugman. “We’ll never talk about wealth and inequality the same way we used to.”



Piketty’s account of “inexorably rising inequality,” according to New York Times columnist Eduardo Porter, challenges many of the economics profession’s “core beliefs about the organization of market economies” – including “the belief that inequality will eventually stabilize and subside on its own, a long-held tenet of free-market capitalism.” Instead, “the economic forces concentrating more and more wealth into the hands of the fortunate few are almost sure to prevail for a very long time.”

Apr 11, 2014: This Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 39 tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Bangladesh, Bhutan, India, NepalPakistan, and Sri Lanka. For regular #SouthAsiaDev updates, follow us on Facebook and Twitter

What will happen to the Middle East and North Africa region if the Ukraine crisis escalates?

Lili Mottaghi's picture
 Arne Hoel

Following Russia’s annexation of Crimea after the popular voting in early March, the European Union and recently the U.S. and Canada have imposed their first round of sanctions—an asset freeze and travel ban on some officials in Russia and Crimea. This week NATO's foreign ministers, warning that Russian troops could invade the eastern part of Ukraine swiftly, ordered an end to civilian and military cooperation with Russia. Should the crisis escalate, potential fallout on Middle East and North Africa (MENA) countries is likely. The effects would be transmitted directly through trade and indirectly through commodity prices.

Collecting Country Debt Data: 63 Years and Counting

Jung Weil's picture
IDS 2014
What word has four letters, one syllable, no weight but can still be crushing? If you guessed debt, you are correct. The World Bank has had a Debt Reporting System (DRS) since 1951, and it's still going strong.

Although the World Bank collaborates with international agencies that work with external debt and debt-related statistics (the Bank for International Settlements (BIS), the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD) and others), the World Bank has the international mandate to collect external debt data, and we maintain comprehensive external debt information.

Poland Scores High on Shared Prosperity Progress

Laura Tuck's picture

Laura Tuck, Vice President for the World Bank's Europe and Central Asia region, discusses her trip to Poland, its economy, progress in boosting shared prosperity, and the World Bank's partnership with the country.

 

Apr 4, 2014: This Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 18 tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Afghanistan, Bangladesh, Bhutan, India, Nepal, and Pakistan. For regular #SouthAsiaDev updates, follow us on Facebook and Twitter

The Chief Minister Posed Questions We Couldn’t Answer

Jeffrey Hammer's picture

PK126S07 World Bank I was recently at a conference in Lahore, Pakistan sponsored by the International Growth Centre where the keynote address was given by Shahbaz Sharif, the Chief Minister of the province of Punjab, Pakistan (100+ million people). While fun to see old friends and colleagues, the conference was a little depressing in the way it reflected the state of the development economics profession.

The Chief Minister posed serious questions that have traditionally been the bread and butter of the economics profession. Unfortunately, we are not even trying to answer them any more. The specific question was “Should I put more money into transport? Infrastructure (power, roads, water)? Law and order? Social services? Or what? And where am I going to get the money?” What questions could be more solidly part of the core of economics than these? Unfortunately none of these were even remotely the focus of the “evidence-based” policy making discussed.

Mar 28, 2014: This Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 27 tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Afghanistan, Bangladesh ,India, NepalPakistan, and Sri Lanka. For regular #SouthAsiaDev updates, follow us on Facebook and Twitter

One Question: What Is Your Favorite Number?

Mehreen Arshad Sheikh's picture

My Favorite Number
We know that numbers are useful. We rely on them to analyze global economic trends, but also to count calories, create passwords, manage schedules and track our spending. Numbers give order to the chaos of our lives. And that means we can use numbers to reflect, learn, and re-discover ourselves.

We’ve launched a new YouTube series called ‘My Favorite Number,’ that shows how a single digit can give us unique insight into global development and humanity. A number can have a profound effect on human lives.

To Lead Tomorrow, Future Leaders Must Learn to Read Today

Mabruk Kabir's picture


When it comes to primary education, there are many reasons to be optimistic. Enrollment has jumped across the world, and more children are in school than ever before. In the last decade, the number of out-of-school children has fallen by half, from 102 million in 2000 to 57 million in 2011.
 
But is showing up to school enough?
 
According to UNESCO’s Education for All Global Monitoring Report, almost one quarter of the youth in the developing world cannot read a sentence. In countries with large youth populations, this can leave behind a crippling ‘legacy of illiteracy’. Despite almost universal primary enrollment in India – 97 percent – half of second grade students cannot read a full sentence, and almost a quarter cannot even recognize letters.

Reading is a foundational skill. Children who do not learn to read in the primary grades are less likely to benefit from further schooling. Poor readers struggle to develop writing skills and absorb content in other areas. More worryingly, learning gaps hit disadvantaged populations the hardest, limiting their economic opportunities. In Bangladesh, only one in three of the poorest quartile is literate, compared to almost nine out of ten in the richest.


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