- South-South FDI is seeing important growth. According to OECD stocktaking, the share of South-South FDI in total world FDI has grown from some 3% at the beginning of the century to around 14% in 2009. See the OECD’s Development Co-operation Report 2014.
- South-South FDI has stayed strong even as global FDI has been volatile. Despite a fall in FDI from OECD countries by 57% below 2007 levels in 2012, FDI from developing countries rose by 19 percent, according to the OECD’s Development Co-operation Report 2014.
- South-South mergers can lead to economic upgrading. In 2013, over two-thirds of gross cross-border mergers and acquisitions by Southern multinational enterprises (MNEs) targeted partners in developing and transition countries, and half of these involved foreign affiliates of MNEs from developed countries passing their assets on to MNEs from developing countries, according to UNCTAD’s World Investment Report 2014.
Civil wars are not only a human tragedy for the countries that experience them, but they can also have an impact on neighbouring countries. That is the case also for the devastating civil war in Syria - one of the most violent in recent times. The war has caused devastation and hundreds of thousands deaths, displacing over 6 million people, and forcing another 3 million to flee the country as refugees.
When we think of eradicating extreme poverty, most of us associate this idea with the provision of basic needs. Food. Water. Shelter. Some argue to include clean air, security, even access to basic healthcare and primary education. But what about access to the internet? Where does the internet fit into development?
This is one of the overarching questions put to the authors of the upcoming 2016 World Development Report: Internet for Development. It was also the topic of a recent roundtable discussion entitled Digital Trade: Benefits and Impediments here at the World Bank Group, where economists and development professionals, including representatives from the public and private sectors, sat down to discuss some of these issues in detail.
The conversation hinged on what the internet meant for trade, especially for online entrepreneurs in developing countries. The internet, in many ways, signifies innovation. How then can we ensure that individuals seeking to introduce their ideas to the world and tap into the global marketplace can best do so? Is this a question of infrastructure? Is it a question of regulation?
Here’s what the numbers tell us.
Home to Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, South Asia is one of the fastest growing regions in the world and yet one of the least integrated. Intra-regional trade accounts for only 5% of South Asia’s GDP, compared to 25% of East Asia’s. Meanwhile, with a population of 1.6 billion, South Asia hosts one of the largest untapped talent pools.
To encourage young researchers in the region who aspire to use their research to inform policy making, the World Bank Group calls for research proposals on South Asia regional integration. Proposals will be carefully reviewed and the most suitable proposals (no more than five overall) will be awarded with a grant based on criteria listed below. An experienced researcher from the World Bank’s research department or an external academic will mentor and guide the young researcher in the implementation of the research.
On one hand, Georgia has achieved significant economic growth over the past decade, successfully introduced much needed governance reform, and become synonymous with world leadership in terms of doing business (ranked in the top 15 and better than some OECD countries).
On the other hand, the country has been dogged persistently by high poverty rates – among the highest in the Europe and Central Asia region. And, despite a highly improved business environment, unemployment rates remain in the double digits: official unemployment is currently around 15 percent!
Lower oil prices are a boon for oil importers around the world. But how well are oil-producing countries adapting to the apparent end of a decades-long “commodity supercycle” and lower revenues? And what does this mean for the global economy?
World Bank economists provided insights on the situation in six developing regions at a webcast event April 15 ahead of the World Bank Group-IMF Spring Meetings. The discussion focused on the challenge of creating sustainable global growth in an environment of slowing growth.
World Bank Chief Economist Kaushik Basu said the global economy is growing at 2.9% and is “in a state of calm, but a slightly threatening kind of calm. … Just beneath the surface, there’s a lot happening, and that leads to some disquiet, concern – and the possibilities of a major turnaround and improvement.”
As world trade and investment have increasingly become organized around “value chains” – production lines that cross borders – Africa has struggled to reap the benefits of this trend, even as Asian and Latin American countries churned out cars, microchips, and textiles for consumers across the globe.
Some modern developments suggest that this could be changing – as global production networks have become more sophisticated, encompassing a wider variety of products and processes, they could provide new opportunities for African economies. But critical to success in this new environment are a good business climate, political will, and ease of trade on the continent.
We are issuing a call to action: On Thursday, as part of the World Bank-IMF Spring Meetings, the World Bank Group and Africa investor will host a panel discussion with African entrepreneurs, government officials, and other experts that you can watch online here: “Building African Participation in Global Value Chains.” The discussion will focus on how the different stakeholders – including businesses, banks, and governments – can work together to build African brands capable of creating jobs and increasing the continent’s role and influence on the global economic stage.
In Ethiopia, registering a trade name-- a precondition for a business startup-- had long been one of the most cumbersome procedures of starting a new business. One had to make frequent visits to the Ministry of Trade with a number of potential trade names, which in most cases were routinely rejected for no clear reason. In one documented instance, an applicant had to submit eighty different names before he was issued a legally registered trade name. The inordinate amount of time that one would spend in the process had created a huge public outcry.
Thankfully, things have changed. The Ministry of Trade, with support from the World Bank Group’s Investment Climate Program, has issued a new, simplified, and modern Trade Name Registration Law.