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Trade

Why It Is Time to Take Action on Agriculture in Turkey

Donald F. Larson's picture

Turkish eggplant. Source - Suzie's FarmTurkey’s bid to join the European Union (EU) may finally be getting “back on track,” according to the bloc’s top official for enlargement. And while that track may still have a number of hurdles to clear, recent research, carried out by the World Bank Group outlines several interim policy measures that could bring the sides closer together while also benefitting the Turkish economy.

Most goods already move freely between the two economies, under the EU-Turkey Customs Union established in 1995. But agriculture, as is often the case, has proved a sticking point and remains outside the Customs Union today.

A set of permanent institutions, established under the 1963 Ankara Agreement, have chipped away at agricultural trade restrictions. These have steadily provided technical support and helped to facilitate quick action when political opportunities have arisen. And today there is still opportunity to take action on agriculture—with or without becoming an EU Member State.

Avoiding the “Harm” in Harmonized Standards for Food Staples in Africa

John Keyser's picture

Preparing vegetables taken from garden, Mongu, Zambia. Source - Felix Clay/DuckrabbitAfrica’s imports of staple foods could more than triple in the next 15 years. Without an increase in crop yields and an improvement in the trade of surplus food from areas with good growing conditions to deficit zones, importing sufficient amounts of staple food could cost the continent upwards of US$150 billion per year by 2030.

Fortunately, it doesn’t have to be this way. As the World Bank showed in its 2012 report, Africa Can Help Feed Africa, the continent could easily deliver improved food security to its citizens through increased regional trade.

Often the nearest source of inputs or best outlet for farm products is a across a border, yet high costs and unpredictable rules make trade difficult and discourage investments by small farmers in raising productivity and large investments by private companies in input supply and food marketing.

Facilitating regional trade is therefore more important than ever for reducing poverty and meeting Africa’s growing demand for staple foods.

In Trade Facilitation Assistance, Does Country Size Matter?

Jamal Ibrahim Haidar's picture

Border post at the Senegal-Guinea Bissau border. Source - jbdodane/Flickr​Greater attention is now being devoted to trade facilitation measures. The 159 members of the WTO agreed during their December 2013 meeting in Bali on a Trade Facilitation Agreement. And the European Commission, the World Bank, and other donors have just launched the implementation of the Trade Facilitation Support Program (TFSP).
 
The TFSP is to help developing countries reform and modernize their border procedures. Such initiative is important as time delays at customs affect trade. Each additional day that a product is delayed prior to being shipped reduces trade by more than 1%. Put differently, each day is equivalent to a country distancing itself from its trade partners by about 70 km on average.

Next Wave of Economic Reforms in India

Varun Sridharan's picture
Dr. Denis Medvedev, the World Bank Group’s Senior Country Economist, spoke at the Indian Institute of Management Calcutta on the Next Wave of Economic Reforms in India on 20th November, this year.  The talk focused on the challenges facing the Indian economy in achieving inclusive growth with a special focus on reducing poverty in the lower income states.
IIM Calcutta Discussion
Photo Credit: Roli Mahajan

New Voices in Investment: How Emerging Market Multinationals Decide Where, Why, and Why Not to Invest

Gonzalo Varela's picture

Emerging market multinationals (EMMs) have become increasingly salient players in global markets. In 2013, one out of every three dollars invested abroad originated from multinationals in emerging economies.

Up until now, we have had a limited understanding of the characteristics, motivations, and strategies of these firms. Why do EMMs decide to invest abroad? In which markets do they concentrate their investments and why? And how do their strategies and needs compare to those of traditional multinationals from developed countries?

In a book we will launch tomorrow at the World Bank, “New Voices in Investment,” we address these questions using a World Bank and UNIDO-funded survey of 713 firms from four emerging economies: Brazil, India, Korea, and South Africa.

Media (R)evolutions: The Cloud and the Connectivity Revolution

Roxanne Bauer's picture
New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's and will have little resemblance to yesterday's.

For many people, "the cloud" is a nebulous term, but it simply refers to software and services that operate on the Internet instead of directly on a computer. Dropbox, Netflix, Flickr, Google Drive, and Microsoft Office 365 (a/k/a Outlook) are all cloud services-- they do not need to be installed on a computer.

According to a report by Gartner, one third of digital data will be in the cloud by 2016. Cloud computing is an attractive option for many entrepreneurs, businesses, and governments in developing countries that seek to service large populations but which require an alternative to heavy ICT infrastructure. Moreover, as mobile apps and PC software are increasingly tied to the cloud, its adoption is likely to increase.  

Welfare gains from freer trade. Guest post by Souleymane Soumahoro

This is the fifth in our series of job market posts this year. 

Once known as the “Safe Haven” of Western Africa, because of its long-standing political stability and economic success, Côte d’Ivoire plunged in a decade-long vicious circle of political violence after a coup d’état in December 1999. The level and scope of violence reached its peak in September 2002 when a coalition of three rebel movements, known as the Forces Nouvelles de Côte d’Ivoire (hereafter FNCI), occupied and tightened its grip over 60% of the country’s territory. Unlike other rebel movements in West African states such as Liberia and Sierra Leone, where territorial conquests were allegedly associated with “scorched-earth” and “denial-of-resource” tactics, the FNCI opted for an autonomous self-governance system.

Dutch disease: It’s not just the oil; it’s the oil barons

Harun Onder's picture

What would you do if you won a billion dollars? Would you just buy more hamburgers for lunch or pick up some extra pairs of socks? Probably not. You would think bigger: maybe a boat, a mansion, a fancy car – luxury goods. Or you might try to make your life easier with a housekeeper, a driver, a chef – luxury services. This switch in the shopping list is so common that economists have a nerdy name for it: “non-homothetic” preferences. That is, people buy different things when they get more money. 

It turns out that this dynamic is relevant for development, as we (Bill Battaile, Richard Chisik, and Harun Onder) found in “Services, Inequality, and the Dutch Disease,” a World Bank Policy Research Working Paper published this year. In particular, countries that see a rapid influx of income following a natural resource discovery – say oil or diamonds – are vulnerable to this pattern in a way that could hinder their overall chances of economic growth.

At the Heart of the Matter: Improved Market Access to Food Supplies

Bill Gain's picture
Hi-Las workers weighing and sizing mangoes. Source -

At the Ninth WTO Ministerial Conference held in Bali on December 2013, all WTO members reached an agreement on trade facilitation and a compromise on food security issues, a contentious topic which had previously stalled talks during the 2008 Doha Development Round. The “Bali Package,” as it came to be known, was quickly heralded as an important milestone, reaffirming the legitimacy of multilateral trade negotiations while simultaneously recognizing the significant development benefits of reducing the time and costs to trade.

Seven months after the Bali Ministerial Conference, however, the Trade Facilitation Agreement (TFA) has yet to be ratified as India is concerned that insufficient attention has been given to the issue of food subsidies and the stockpiling of grains. India maintains that agreements on the food security issue must be in concert with the TFA.
 
Despite the current impasse in implementing the Bali decisions, the food security concern at the heart of the matter sheds light on the importance of improving the agribusiness supply chains of developing countries to ensure maximum efficiencies. Consider the fact that in 2014, farmers will produce approximately 2.5 billion tons of food. Yet, 1.3 billion tons are lost or wasted each year between farm and fork, while 805 million people suffer from chronic hunger.

How Ben Ali Policies Continue to Impoverish Tunisians

Antonio Nucifora's picture

Hopes are high for Tunisia’s economy to improve after Tunisians voted for a new parliament in October.  Pre-election polls consistently highlighted that the economy was the foremost preoccupation of Tunisians. Yet, political debates in the run up to the elections largely ignored longstanding economic problems.

Absurdly complex regulations divide the Tunisian economy between a protected “onshore” sector that sells to Tunisian consumers and a competitive “offshore” sector that exports, mostly to Europe. "It's pointless trying to understand the logic of it - there is no logic," says Belhassen Gherab, head of Aramys, one of Tunisia's largest textile and clothing groups.  He gives an example: "Suppose I have a machine that breaks down because one small circuit board needs replacing. If I'm an offshore company, I call up DHL and have it delivered within 24 hours. If I'm an onshore business, I'll have to bring it in through customs. I may be waiting 30 days, with my entire production halted, just for that one circuit board."


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