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An update on Bhutan’s economy

Tenzin Lhaden's picture
Accelerating the reform momentum after the 2018 elections is key to consolidating and furthering Bhutan’s development
Accelerating the reform momentum after the 2018 elections is key to consolidating and furthering Bhutan’s development. Credit: World Bank

Bhutan is one of the smallest, but fastest-growing economies in the world.
 
Its annual average economic growth of 7.6 percent between 2007 and 2017 far exceeds the average global growth rate of 3.2 percent.
 
This high growth has contributed to reducing poverty: Extreme poverty was mostly eradicated and dwindled from 8 percent in 2007 to 1.5 percent in 2017, based on the international poverty line of $1.90 a day (at purchasing power parity).
 
Access to basic services such as health, education and asset ownership has also improved significantly.
 
The country has a total of 32 hospitals and 208 basic health units, with each district hospital including almost always three doctors.
 
The current national literacy rate is 71 percent and the youth literacy rate is 93 percent.
 
The recent statistics on lending, inflation, exchange rates and international reserves (Sources: RMA, NSB) confirm that Bhutan maintained robust growth and macroeconomic stability in the first half of 2018.  

Gross foreign reserves have been increasing since 2012 when the country experienced an Indian rupee shortage.
 
Reserves exceeded $1.1 billion, equivalent to 11 months of imports of goods and services, which makes the country more resilient to potential shocks.
 
The nominal exchange rate has been depreciating since early 2018 (with ngultrum reaching Nu. 73 against the US dollar in early November).

How Pakistan can diversify, digitally

Miles McKenna's picture

A year ago, Farzana had no idea that an online business would so drastically change her life. She was drowning in debt with no way of repaying, worrying about her family’s financial future. Reaching for a lifeline, she joined GharPar, a women-founded, women-led social enterprise that connects beauticians with clients seeking at-home salon services through an Uber-like digital platform.

 
 

Doing better business to fight poverty

Duvindi Illankoon's picture
The new Doing Business ranking places Sri Lanka at 100 out of 190 economies, compared with 111 last year. This year Sri Lanka made it easier for businesses to register property, obtain permits, enforce contracts and pay taxes. Credit: World Bank

End Poverty Day fell on the 17th of October. Two weeks later, the new Doing Business rankings come out for this year.

If you’re wondering what the link is, here’s a quick summary: business-friendly regulations can be instrumental in lowering poverty at the national level.

This is one of those happy instances where economics, common sense and the data align.

A better regulatory environment encourages more businesses to register and expand, bringing more employers to the economy.

Then the market responds- not only do these employers create more jobs, but also going to offer better jobs to attract capable workers to their companies.

Ultimately, a reliable source of income is the catalyst to moving out of poverty.

Sounds too simple? Trust the numbers.

Commitment to reforms improves business climate in South Asia

Hartwig Schafer's picture
 
Rikweda, an Afghan fruit processing company in the Kabul Province is well on its way to restoring Afghanistan as a raisin exporting powerhouse—a status the country held until the 1970s when it claimed about 20 percent of the global market. Credit World Bank


Imagine a state-of-the-art processing plant that harnesses laser-sorting technology to produce a whopping 15,000 tons of raisins a year, linking up thousands of local farmers to international markets and providing job opportunities to women.
 
To find such a world-class facility, look no further than Rikweda, an Afghan fruit processing company in the Kabul Province that’s well on its way to restoring Afghanistan as a raisin exporting powerhouse—a status the country held until the 1970s when it claimed about 20 percent of the global market.
 
In Afghanistan’s volatile business environment, let alone its deteriorating security, Rikweda’s story is an inspiration for budding entrepreneurs and investors.
 
It also is an illustration of the government’s reform efforts to create more opportunities for Afghan businesses to open and grow, which were reflected in the country’s record advancement in the Doing Business 2019 index, launched today by the World Bank.
 
Despite the increasing conflicts and growing fragility, and thanks to a record five reforms that have moved Afghanistan up to the rank of 167th from 183rd last year, the country became a top improver for the first time in the report’s history.
 
And Afghanistan is not the only South Asian country this year that took a prominent place among top 10 improvers globally.
 
India – which holds the title for the second consecutive year – is a striking example of how persistence pays off, and the high-level ownership and championship of reforms are critical for success. Its ranking has improved by 23 places this year and puts India ahead of all other countries in South Asia. This year, India is ranked 77th, up from 100th last year. 

What’s the latest in development economics research? Microsummaries of 150+ papers from NEUDC 2018

David Evans's picture



Last weekend, the North East Universities Development Consortium held its annual conference, with more than 160 papers on a wide range of development topics and from a broad array of low- and middle-income countries. We’ve provided bite-sized, accessible (we hope!) summaries of every one of those papers that we could find on-line. Check out this collection of exciting new development economics research!

The papers are sorted by topic, but obviously many papers fit with multiple topics. There are agriculture papers in the behavioral section and trade papers in the conflict section. You should probably just read the whole post.

If you want to jump to a topic of interest, here they are: agriculture, behavioral, climate change, conflict, early child development, education, energy, finance, firms and taxes, food security, gender, health and nutrition, households, institutions and political economy, labor and migration, macroeconomics, poverty and inequality, risk management, social networks, trade, urban, and water, sanitation, and hygiene (WASH).

Introducing the online guide to the World Development Indicators: A new way to discover data on development

World Bank Data Team's picture

The World Development Indicators (WDI) is the World Bank’s premier compilation of international statistics on global development. Drawing from officially recognized sources and including national, regional, and global estimates, the WDI provides access to almost 1,600 indicators for 217 economies, with some time series extending back more than 50 years. The database helps users—analysts, policymakers, academics, and all those curious about the state of the world—to find information related to all aspects of development, both current and historical.

An annual World Development Indicators report was available in print or PDF format until last year. This year, we introduce the World Development Indicators website: a new discovery tool and storytelling platform for our data which takes users behind the scenes with information about data coverage, curation, and methodologies. The goal is to provide a useful, easily accessible guide to the database and make it easy for users to discover what type of indicators are available, how they’re collected, and how they can be visualized to analyze development trends.

So, what can you do on the new World Development Indicators website?

1. Explore available indicators by theme

The indicators in the WDI are organized according to six thematic areas: Poverty and Inequality, People, Environment, Economy, States and Markets, and Global Links. Each thematic page provides an overview of the type of data available, a list of featured indicators, and information about widely used methodologies and current data challenges.

Moving India’s railways into the future

Joe Qian's picture
Laying Tracks
Progress is being made on the largest railway project in India's modern history – the Dedicated Freight Corridor Program. 
View the 3D presentation here
Thump…thump…thump...like a slow rhythmic drum, concrete ties that hold the track in place are laid down one after another with the latest machinery as rails are placed precisely on top of them.

It’s nearing sunset near the town of Hathras in India’s state of Uttar Pradesh, home to 220 million people—more than the entire population of Brazil.

Progress is being made on the largest railway project in India’s modern history that will increase prosperity by helping move people and goods more safely, effectively, and in an environmentally-friendly way.
India’s Dedicated Freight Corridor (DFC) program is building dedicated freight-only railway lines along highly congested transport corridors connecting the industrial heartland in the north to the ports of Kolkata and Mumbai on the eastern and western coasts.
India Trains
Passengers and freight trains currently share tracks in India which can cause congestion and delays. The project will help increase the speed of freight rail to up to 100km/h from the current 25km/h average. 

Through these efforts, DFC is expected to improve transport and trade logistics – bringing much needed jobs, connectivity, and urbanization opportunities to some of India’s poorest provinces – including Bihar and Uttar Pradesh while helping protect the environment. The electric locomotives will help ease India’s energy security issues and escalating concerns about traffic accidents, congestion, carbon emissions, and pollution created by road traffic. 

Near Hathras and simultaneously in different sites in the country, workers equipped with modern equipment and techniques efficiently lay 1.5 km of new track per day in different weather conditions. Once completed, electric cables are stretched above and signaling is installed, all in preparation for the electric locomotives reliably to carry their cargo across the country at maximum speed of 100km/h, compared to an average current speed of 25 km/h.

How Much Will the Belt and Road Initiative Reduce Trade Costs?

Michele Ruta's picture
The Belt and Road Initiative (BRI) is a development strategy proposed by China to improve cooperation on a trans-continental scale. The range of projects and activities that will be part of the BRI is very wide, including policy coordination, infrastructure, trade and investment, financial and people-to-people exchanges. But a key goal of the Initiative is to boost connectivity and reduce trade costs through new and improved transport infrastructure projects.
 

Foreign Investment Growth in the Belt and Road Economies

Maggie Xiaoyang Chen's picture
A major objective of the Belt and Road Initiative (BRI) is to reduce the time and cost it takes to transport goods and people across BRI economies. Many of these countries face serious gaps in infrastructure, especially related to trade and investment.
 
Traveling on a rural highway in Kazakhstan. PhotoCredit: Kubat Sydykov / World Bank 

Six Corridors of Integration: Connectivity Along the Overland Corridors of the Belt and Road Initiative

Charles Kunaka's picture
The six land corridors that are the “Belt” part of the Belt and Road Initiative (BRI) connect more than sixty countries, a number that keeps growing as more and more countries join. However, even as the initiative progresses, there are still open questions as to what each participating country will gain from the initiative.
 

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