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Trade

Bhutan: Connectivity in the Cloud(s)

Charles Kunaka's picture

Bhutan has some of the most thrilling rides in the world—in the air and on the ground.
 
Flying into Paro Airport, the only international airport in Bhutan, is an experience like none other—its narrow runway tucked between rugged 18,000-foot peaks, high in the Himalayas. Below, the road between Thimphu, the capital, and the border city of Phuentsholing twists and turns as it navigates some of the world’s highest mountain passes, often blanketed in fog with visibility reduced to mere meters. On clear days, both offer some of the most stunning, breathtaking views you will ever see.
 
But stunning peaks do not make for easy trade routes, and this is a problem in Bhutan. That’s why the World Bank’s International Trade Unit teamed up with the South Asia Transport Unit to conduct a diagnostic of impediments to transport and trade facilitation in Bhutan.  The diagnostic, a prelude to a potential investment operation, was based on the recently released Trade and Transport Corridor Management Toolkit.
 

Resilience vs. Vulnerability in African Drylands

Paul Brenton's picture
Woman carries wood in Ouagadougou, Burkina Faso. Source- Guillaume Colin & Pauline Penot

It’s 38°C (99°F) in Ouagadougou, the capitol city of Burkina Faso, today—and it’s been this hot all week. The end of the warm season is near, but in places like Ouaga (pronounced WAH-ga, as its better known), temperatures stay high year-round. These are the African drylands: hot, arid, and vulnerable.

Over 40 percent of the African continent is classified as drylands, and it is home to over 325 million people. For millennia, the people of these regions have adapted to conditions of permanent water scarcity, erratic precipitation patterns, and the constant threat of drought. But while urban centers like Cairo and Johannesburg have managed to thrive under these harsh conditions, others have remained mired in low productivity and widespread poverty. 

The World Bank has been partnering with a team of regional and international agencies to prepare a major study on policies, programs, and projects to reduce the vulnerability and enhance the resilience of populations living in drylands regions of Sub-Saharan Africa.

The Downside of Proximity

Sanjay Kathuria's picture

 

Buy a leather case for your wife’s smartphone on Amazon, select shipping from China with an estimated delivery time of 4-6 weeks, and then be pleasantly surprised when it turns up on your Virginia doorstep in 11 days.  The marvels of the modern age – of technology, globalization, and shrinking distances.

Where does South Asia stand on export delivery? Figure 1 illustrates that compared to other economic units around the globe, it is a lot more difficult to trade with(in) SAFTA (South Asia Free Trade Agreement). It also shows that bureaucratic hurdles and the time it takes to trade go hand-in-hand. While the region does relatively well on trade with Europe or East Asia, intra-South Asian trade has remained low and costly.  It costs South Asian countries more to trade with their immediate neighbors, compared to their costs to trade with distant Brazil (see below)!  In fact, it is cheaper for South Asian countries to export to anywhere else in the world than to export to each other (Figure 3).  In other words, South Asia has converted its proximity into a handicap.   

Eliminating Customs of Corruption: New Approaches in Cameroon & Afghanistan

Gerard McLinden's picture

Corruption continues to plague customs administrations around the world regardless of their level of development and despite intense public attention.

Recent high profile cases in many first world countries reinforce what we always knew—that no country is immune, and that there are no quick fix solutions available. The very nature of customs work makes it vulnerable to many forms of corruption, from the payment of informal facilitation fees to large scale fraud and other serious criminal activities.

But this blanket generalization belies some genuine progress in countries where reforms are making a measurable impact on operational effectiveness and integrity. 
 

What do we know about preferential trade agreements and temporary trade barriers?

LTD Editors's picture

Two of the most important trade policy developments to take place since the 1980s are the expansion of preferential trade agreements and temporary trade barriers, such as antidumping, safeguards, and countervailing duties. Despite the empirical importance of preferential trade agreements and temporary trade barriers and the common feature that each can independently have quite discriminatory elements, relatively little is known about the nature of any relationships between them. A new World Bank policy research working paper by Chad P. Bown, Baybars Karacaovali, and Patricia Tovar surveys the literature on some of the political-economic issues that can arise at the intersection of preferential trade agreements and temporary trade barriers and uses four case studies to illustrate variation in how countries apply the World Trade Organization's global safeguards policy instrument. The four examples include recent policies applied by a variety of types of countries and under different agreements: large and small countries, high-income and emerging economies, and free trade areas and customs unions. The analysis reveals important measurement and identification challenges for research that seeks to find evidence of systematic relationships between the formation of preferential trade agreements, the political-economic implications of their implementation, and the use of subsequent temporary trade barriers.

Trading Up to High Income: New Firms, New Products, New Markets

Martin Raiser's picture

A competitive export sector is one of the key engines of a successful transition to high income. Turkish policy makers knew this well, and so they put an increase in export competitiveness at the forefront of their ambitious targets to get the country into the top 10 economies worldwide by 2023. What are the chances of success?
 
To try and answer this question, the World Bank working closely with Turkey’s Ministry of Economy carried out a Trade Competitiveness Diagnostic (“Turkey Country Economic  Memorandum: Trading Up to High Income”), which was just launched in Ankara. The team looked at how Turkey did during the past decade, a period of rapid growth in global trade. It turns out that Turkey did pretty well – its exports during the 2000s grew 15.3 percent annually, twice the average growth in the OECD, 6 percentage points above world trade growth and only 4 percentage points slower than in China. Turkey’s global market share grew by 60 percent (from 0.53 to 0.82 percent) between 2002 and 2009 and is getting close to Turkey’s share of the world population (1.06 percent). At the same time, Turkey increased its export sophistication and improved product quality.

How Much Cement Do I Export? And Other Weighty Questions

Amir Fouad's picture

WITS is how World Bank economists and users like you can answer tough questions on trade.For client countries of the World Bank, there is no shortage of interest in—or desire for—information on trade flows and market access. Improving trade performance is a critical component of many client countries’ development strategies, and trade data hold the key to understanding how countries are faring in the quest to eliminate trade barriers, increase competitiveness, and turn improved market access into actual trade flows.

But the trade data arena is large and complex, full of topical jargon, different nomenclatures and coding systems, availability constraints, and potentially complicated indicators. For newcomers, trade data navigation can be particularly challenging, which belies the immense value and richness in the wealth of information that has become available and accessible over the past few years.

Enter the World Integrated Trade Solution, or WITS.

Reformers vs. Lobbyists: Where have We Got to on Tackling Corporate Tax Dodging?

Duncan Green's picture

The rhythm of NGO advocacy and campaigning sometimes makes it particularly hard to work on complicated issues, involving drawn-out negotiations where bad guys have more resources and staying power than we do. Campaigns on trade, climate change, debt relief etc often follow a similar trajectory – a big NGO splash as a new issue breaks, then activists realize they need to go back to school (I remember getting briefings on bond contracts during the 1998 Asia financial crisis) or employ new kinds of specialists who can talk the new talk. And then for a while we get geeky, entering into the detail of international negotiations, debating with lobbyists and academics. When it works (as in the debt campaign), we contribute to remarkable victories or to stopping bad stuff happening (which I would argue was a big civil society contribution at the WTO).
 

Should Indonesia Worry About Imported Intermediates?

Gonzalo Varela's picture

City and traffic lights at sunset in Jakarta. Source - Jerry Kurniawan, World BankIndonesia finds itself at a crossroads on the trade policy map. A turn in one direction may mean more openness and greater regional integration. A turn the other way—more protectionism and economic nationalism. Those advocating for the proper course share common concerns: the country’s increasing current account imbalance, deindustrialization in sectors built on booming commodity prices, and rising imports of intermediate inputs.

This last factor is perhaps most contentious. There are concerns that an increased reliance on imported inputs will slash domestic jobs and the local value added to exports. But are concerns about increased reliance on imported intermediates justified?
 

Notes From the Field: India, South Asia Buying into Integration

Kaori Niina's picture

Train station in Mumbai, India. Source - World BankEditor's Note: "Notes from the Field" is an occasional feature where we let World Bank professionals conducting interesting trade-related projects around the globe explain some of the challenges and triumphs of their day-to-day work. The views expressed here are personal and should not be attributed to the World Bank. All interviews have been edited for clarity.

The interview below is with Ashish Narain, a Senior Economist at the World Bank Group’s Investment Climate Department. He is based in India from where he manages the World Bank Group’s South Asia Regional Trade and Investment Project. He spoke with us about his project, his personal connection with the region, and the evolution of regional trade facilitation in South Asia.


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