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Global Economy

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Discarding Democracy: A Return to the Iron Fist- Freedom in the World 2015
Freedom House
For the ninth consecutive year, Freedom in the World, Freedom House’s annual report on the condition of global political rights and civil liberties, showed an overall decline. Indeed, acceptance of democracy as the world’s dominant form of government—and of an international system built on democratic ideals—is under greater threat than at any point in the last 25 years.  Even after such a long period of mounting pressure on democracy, developments in 2014 were exceptionally grim. The report’s findings show that nearly twice as many countries suffered declines as registered gains, 61 to 33, with the number of gains hitting its lowest point since the nine-year erosion began.
Digital Inclusion: The Vital Role of Local Content
Innovations, MIT Press
The journal features cases authored by exceptional innovators; commentary and research from leading academics; and essays from globally recognized executives and political leaders.  The current issue contains lead essays entitled “Building a Foundation for Digital Inclusion”, “Inequitable Distributions in Internet Geographies”, and “To the Next Billion”.  It also includes case narratives entitled “A Mobile Guide Toward Better Health” and “A Social Network for Farmer Training” and more.

Will falling oil prices lead to a decline in outward remittances from GCC countries?

Dilip Ratha's picture
The Gulf region is an important destination for migrant workers and perhaps the largest source of migrant remittances. Some 23 million foreign workers send home over $90 billion in remittances. On average, they make up around 50% of the population in the GCC countries, ranging from 31% in Saudi Arabia to 84% in Qatar (Table 1). Controlling for size, these countries are by far the largest sources of remittances, with an average of 5.7 percent of GDP in 2013 compared with only 0.7 percent in the United States.  

Table 1: Migrants and outward remittances in GCC countries, 2013
 Migrants and outward remittances in GCC countries, 2013

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

#Davosproblems: The financial crisis isn‘t over, and the inequality crisis is just beginning
The World Economic Forum’s annual meeting has kicked off in Davos, Switzerland under the banner of “The New Global Context.” Falling in the long shadow of the financial crisis, the WEF’s theme reflects as much hope as a creeping sense that economic turmoil is the new normal. Some seven years into the current crisis, the participants at Davos are acutely aware that the world economy still hasn’t recovered its past momentum.

The Power of Market Creation, How Innovation Can Spur Development
Foreign Affairs
Most explanations of economic growth focus on conditions or incentives at the global or national level. They correlate prosperity with factors such as geography, demography, natural resources, political development, national culture, or official policy choices. Other explanations operate at the industry level, trying to explain why some sectors prosper more than others. At the end of the day, however, it is not societies, governments, or industries that create jobs but companies and their leaders. It is entrepreneurs and businesses that choose to spend or not, invest or not, hire or not.

Davos: New Briefing on Global Wealth, Inequality and an Update of that 85 Richest = 3.5 Billion Poorest Killer Fact

Duncan Green's picture

This is Davos week, and over on the Oxfam Research team’s excellent new Mind the Gap blog, Deborah Hardoon has an update on the mind-boggling maths of global inequality. 


Wealth data from Credit Suisse, finds that the 99% have been getting less and less of the economic pie over the past few years as the 1% get more. By next year, if the 2010-2014 trend for the growing concentration of global wealth is to continue, the richest 1% of people in the world will have more wealth than the rest of the world put together.

Measurements of wealth capture financial assets (including money in the bank) as well as non financial assets such as property. It is not just inefficient to concentrate more and more wealth in the hands of a few, but also unjust. Just think of all the empty properties bought by wealthy people as investments rather than providing housing for those in need of a home. Think of the billionaire chugging out carbon emissions flying around in a private jet, whilst the poorest countries suffer most from the impacts of climate change and the poorest individuals living want for a decent bicycle to get to school or work.

Funding The Data Revolution

Claire Melamed's picture

A revolution starts with an idea, but to become real, it has to move quickly to a practical proposition about getting stuff done.  And getting things done needs money.  If the ideas generated last year, in the report of the UN Secretary General’s Independent Expert Advisory Group and elsewhere, about how to improve data production and use are to become real, then they will need investments.  It’s time to start thinking about where the money to fund the data revolution might come from, and how it might be spent.

Getting funding for investment in data won’t be easy.  As hard-pressed statistical offices around the world know to their cost, it’s tough to persuade governments to put money into counting things instead of, say, teaching children or paying pensions.  But unless the current excitement about data turn into concrete commitments, it will all fade away once the next big thing comes along, leaving little in the way of lasting change.

Next step for the Data Revolution: financing emerging priorities

Grant Cameron's picture

Last August, the UN Secretary-General Ban Ki-moon asked an Independent Expert Advisory Group (IEAG) to make concrete recommendations on bringing about a Data Revolution in sustainable development.  In response, the IEAG delivered its report, and among other items, recommends, “a new funding stream to support the Data Revolution for sustainable development should be endorsed at the Third International Conference on Financing for Development,” in Addis Ababa in July 2015.

Three Issues Papers for Consultation

To support this request and to stimulate conversation, the World Bank Group has drafted issues papers that focus on three priority areas:

  1. Data innovation
  2. Public-private partnerships for data
  3. Data literacy and promotion of data use

The papers aim to flesh out the specific development needs, as well as financing characteristics needed to support each area. A fuller understanding of these characteristics will determine what kind of financing mechanism(s) or instrument(s) could be developed to support the Data Revolution.