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Lessons Learned from Armenia's Open Skies

Daniel Saslavsky's picture
"Flight 2." Source - Ken Douglas


Air transport is an increasingly critical area for trade and trade facilitation. As such, our World Bank trade teams are always searching for global good practice and promising policy results.

This search recently brought us to Armenia, where an “Open Skies” policy has been in place since late 2013. For a country with a long legacy of tight regulations in its commercial aviation market, this new policy signaled a sharp break from tradition.

Although there are no single accepted definitions of Open Skies, it refers to a set of provisions typically agreed on a bilateral basis, that enable each party to set freely the number of flights, carriers, types of aircraft and destinations; but also pricing freedom, as well as establishing the conditions for fair competition and provisions for carriers to engage in commercial cooperation.  

Armenia’ Open Skies policy is particularity important when considering the country’s historically limited connectivity with international markets – partly determined by geography, and partly determined by geopolitical considerations. Besides being landlocked, the country has open land borders with only two of its four neighboring countries.

From Imitating to Innovating

Marcin Piatkowski's picture

Time to Change Gears for Poland’s Economy

Poland is Europe’s growth champion. It has more than doubled its GDP per capita since the beginning of post-socialist transition in 1989, consistently growing since 1992, and was the only EU economy to avoid a recession in 2009. Poland is a prime example of the success of the European “convergence machine”. In 2014, the level of income adjusted for purchasing parity exceeded $24,000 and reached almost 65% of the level of income in the euro zone, the highest absolute and relative level since 1500 A.D.
 
However, past successes do not guarantee a prosperous future and Poland cannot afford to grow complacent. Given the significant productivity gap—Poland’s productivity per hour amounts to less than half of that in Germany —technology absorption will continue to drive private sector productivity in the near term, but it is unlikely to help sustain—not to mention accelerate—economic growth in the long term as Poland moves closer to the technology frontier. Investment in private sector R&D and innovation will have to increase far more rapidly. Growth can stagnate if Poland doesn’t start shifting from imitating others to generating new ideas, from quantity to quality, and from potato chips to microchips.

Better Than Sliced Bread? How Trade Integration Can Boost Food Security

Amir Fouad's picture

Salt-rising bread, sliced. Source - Therese Carle-SandersWe welcome 2015 confronting an all-too-familiar reality: there are still people in the world without access to sufficient and nutritional food. One in eight people go hungry every day, according to the United Nations, including an estimated one in six children under the age of five who is underweight. The situation is especially dire for those living in extreme poverty, whose inadequate access to technology, land, water, and other agricultural inputs routinely imperils their ability to produce or secure food for themselves and their families, especially as world food prices have risen in recent years.

On a scale of one to something-must-be-done-now, tackling this problem and ensuring food security remains among the most pressing development issues of our time. The good news is the first Millennium Development Goal to eradicate world hunger is achievable—and the target to halve it by the end of this year is close to being met. But governments have too often failed to meet their obligation to nurture an enabling environment for food security, and in some cases have actually made it worse.

Trade policy can be a proactive—rather than a reactive—tool in helping to ensure greater food security, a theme expounded in our recent publication entitled Trade Policy and Food Security: Improving Access to Food in Developing Countries in the Wake of High World Prices. Although world food prices have risen in real terms in recent years after three decades of decline, there is no global shortage of food. The problem is one of moving food, often across borders, from areas with a production surplus to those with a deficit, at prices that low-income consumers in developing countries can afford.

Fear of Flying (or Sailing)? Pricing International Aviation and Maritime Emissions

Jon Strand's picture

Note from Let's Talk Development Editors: Co-authors Michael Keen and Ian Parry were not mentioned in an earlier version of this blog post, this has been corrected.

The central focus of climate talks that concluded last year in Lima has been on building wide agreements to restrict national emissions of greenhouse gases. But some important emissions are hard to allocate to individual nations: Those from international aviation and shipping. These currently constitute about 4% (and rising) of global carbon emissions, and are subject to almost no charges. This current state reflects heavy resistance to such charges, from industry and many governments, but also tax competition: Taxing these sectors by any one country can be hard due to their geographic mobility and international nature. 

Future Development Forecasts 2015

Shanta Devarajan's picture

Despite their mixed record last year, Future Development's bloggers once again offer their predictions for 2015.  Eight themes emerge.
 
1. Global growth and trade. The US economy will strengthen far above predictions. Together with lower oil prices and a better business climate in emerging markets, this will create substantial positive spill-overs, including to the smaller export-oriented Asian economies, boosting the growth of their manufactured exports well above recent trends. The US will look to open new free trade agreements in Asia—India may try to join—and seek opportunities to do the same in Africa. Meanwhile, Germany will face increasing resistance to the free-trade agreement with America (TTIP), just as Angela Merkel celebrates her 10th year in office.

#BestOf2014: Six Popular Environmental Stories You Shouldn’t Miss

Andy Shuai Liu's picture
As we get ready to kick off the new year, let’s recount the voices and stories about how we can enhance the way we interact with our planet. From Ethiopia to Indonesia, we’ve seen our efforts improve lives and help incomes grow as countries and communities strive for greener landscapes, healthier oceans and cleaner air.
 
Take a look back at some of the most popular stories you may have missed in 2014:
 
1. Raising More Fish to Meet Rising DemandPhoto by Nathan Jones via Flickr CC BY-NC 2.0

Aquaculture is on the rise to help feed a growing population. New #Fish2030 report: http://t.co/0fbH4fLDJO http://t.co/Lm5eHsGZaR

— World Bank (@WorldBank) February 6, 2014

The Decline in Oil Prices: An Opportunity

Ivailo Izvorski's picture

A decade of elevated oil prices brought prosperity to many developing countries. Incomes rose, poverty shrank, macroeconomic buffers were rebuilt. The fiscal space for investing more in education and infrastructure increased, resulting in better sharing of prosperity. At the same time, higher commodity prices and surging global demand resulted in much more concentrated exports in all developing oil-rich countries. "Diversifying exports" became a priority for policy makers and development economists around the world. Historical experience and evidence to the contrary from successful resource rich countries notwithstanding, many widely believe that a more diversified export structure should be an important national goal and may well be a synonym for development, a goal that government can target and achieve.  And a more diversified export structure typically meant a smaller share of commodity exports in total shipments abroad or a reduced concentration – as measured by the Herfindahl-Hirschmann index – of exports.

With a Visit to West Africa, Renewed Commitment to Women Traders

Cecile Fruman's picture

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 World Bank Group.I recently returned from a trip to West Africa during which I crossed the Benin-Nigeria border by car at the Seme border post. While waiting for our passports to go through lengthy controls and stamping, I observed the intense activity of the numerous cars, motorbikes and pedestrians passing through.

Sure enough, most of the women were on foot, and they were the ones who were submitted to the most intense scrutiny. While the men on motorbikes were able to ram their way through by refusing to slow down, the women all had to go through a narrow passage where they were subject to questioning and document requirements. It was quite apparent that women were being asked for bribes that men were able to waive by driving right though! I had been reading about how women are subject to more intense harassment at border crossings – this experience brought this to life very vividly.

It made me thankful for all the work we at the World Bank Group are doing to help women traders on the African continent.

"Coordinate or Perish": Can Cell Phones Help Farmers Grow Perishable Crops? Guest post by Saher Asad

This is the fifteenth post in our series by students on the job market this year

The main theme of my job market paper can be summed in a comment that a farmer made during my primary data collection field trips.
"Before I had a cell phone I harvested my crop and then had to wait for a trader to buy my crops; now I talk to the trader and harvest my crops when he will buy it."
-Farmer in rural Pakistan
 

Trade in Fishing Services—Good or Bad? Separating Myth from Fact

Tim Bostock's picture
Small-scale fishers in West Africa. Courtesy MRAG, Ltd.A colleague recently quizzed me on the extent to which our latest report—Trade in Fishing Services: Emerging Perspectives on Foreign Access Agreements—specifically addresses the World Bank’s goals of reducing poverty and sharing prosperity in developing countries. My brief answer was “comprehensively!”. Helping the poor and protecting the environment may not be the first things that pop into your mind when you think about foreign fishing access arrangements. However, when considered as international trade in fishing services, these arrangements do have the potential to deliver real benefits to the poorest people in developing countries. How? Well, let’s immediately dive deeper into the report…
 
Foreign access rarely receives good press. Although over half of the world’s exclusive economic zones are subject to some form of foreign fishing arrangement, there is a perception that industrialized nations are "giving with one hand while taking away with the other." Criticism abounds regarding the role that foreign fleets play in overexploiting coastal state fish stocks, in engaging in illegal and unreported activity, in contributing to conflicts with small-scale fisheries and in generally undermining domestic fishing interests in vulnerable developing economies.

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