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How Can Foreign Investment Become a Driving Force for Development in Tunisia? Ask My Brother

Olfa Hamdi's picture


In any developing country, you’ll hear politicians and government officials talk about foreign investment as a solution, a priority and a need. In other words, it is essential for economic growth and more jobs. Tunisia is no exception. Ever since the 2011 revolution there has been a lot of talk about tackling unemployment by encouraging   foreign investments. 

Trade and Development Leaders Discuss the Benefits of Global Value Chains

Julia Oliver's picture

Airplane engine. Photo - Doug Zwick/Flickr Creative Commons license.A business processing center in Riyadh that is run by women.

An e-commerce company that helps farmers develop transport companies to deliver packages to remote, rural areas of China.

An airplane engine designed in Turkey, constructed in North America, and used all over the world.

Each of these innovations emerged from a modern trend in trade – global value chains – that was the subject of discussion Friday at “Transforming World Trade: Global Value Chains and Development,” a flagship event of the Annual Meetings hosted by the World Bank Group and the International Monetary Fund. At issue: what are the implications of this trend for poverty and development?

The panelists included World Bank Group President Jim Yong Kim, World Trade Organization (WTO) Director-General Roberto Azevêdo, General Electric Company Vice Chairman John Rice, and Colombian Minister of Finance and Public Credit Mauricio Cárdenas.  Anabel Gonzalez, Senior Director of the World Bank Group’s Trade and Competitiveness Global Practice, moderated the discussion. The vantage points ranged widely, but all panelists seemed to agree: Global value chains hold promise for the poor.

Why Serbia Needs to Start its Export Engine

Dusko Vasiljevic's picture

City square in Belgrade This is the story of a country located next to the largest and most connected economic block in the world, with fairly low labor costs and a relatively well educated workforce. You would expect that country to do well. However, the state of Serbia’s economy is problematic. Today, Serbia’s output is below what it was in the 1980s (in the time of Yugoslavia) and only half of its working age population has a job in the formal sector.

At the heart of Serbia’s problems are two interconnected imbalances, which explain why the country appears to be stuck on its path to prosperity. First, the economy is running on domestic consumption, which was fueled by financial inflows since 2000, while exports remain well below potential. Second, employment is driven by the state, not the private sector, with almost half (45%) of all formal jobs in the government or State Owned Enterprises.

Engaging the Public on Country Partnership Strategies

Aaron Rosenberg's picture
Open India
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Country Partnership Strategies are a central element of the World Bank Group’s effort to act in a coordinated way to end extreme poverty and boost shared prosperity. But they can be hard for the average person to navigate—some are three-volume tomes, and others can be dense with technicalities. When we make them inaccessible to the general public, we often forgo a critical opportunity to build broad support for our work.

This year, the Bank Group’s India team decided to take a more innovative approach—one that has the potential to directly engage the public and perhaps even spur others to join us in our cause. In producing the Country Partnership Strategy for India, the team opted not to create a simple PDF for the website. Instead it produced a well-designed book, flush with easy-to-understand graphics and appealing photographs. It also produced a highly interactive web application that visualizes the strategyand tracks the strategy’s progress towards its goals over time. The tool shows exactly how individual projects along with knowledge and advisory work line up with our twin goals, and what outcomes we expect in each instance.

On the Strength of Avocados and Airplane Parts: Making Global Value Chains Work for Development

Daria Taglioni's picture

Also available in: Español

In Chile, producers incorporated procedures that increased the quality of their avocados, thereby increasing their profit margins. Photo - Kristina/Flickr Creative Commons License.By now, developing countries are exporting parts and components used in some of the most sophisticated products on the planet. With the rise of global value chains (GVCs), workers in these countries are no longer just assembling imported parts for local sale, as has been done for decades. They are now participants in international production networks – in factories that cross borders.
 
This change is significant for economic development, as we argue in our forthcoming book, “Making Global Value Chains Work for Development.” GVCs will also be the subject of a discussion by World Bank Group President Dr. Jim Yong Kim, World Trade Organization Director-General Roberto Azevêdo, General Electric Vice Chairman John G. Rice, and Colombia Minister of Finance and Public Credit Mauricio Cárdenas -- and moderated by World Bank Trade and Competitiveness Senior Director Anabel González -- on Friday at “Transforming World Trade: Global Value Chains and Development,” a flagship event of the World Bank-IMF Annual Meetings.

Will South Asia Take Advantage of its Export Opportunity?

Markus Kitzmuller's picture
The Port of Chittagong at night in Bangladesh. South Asia has a great opportunity to increase exports to realize greater growth and prosperity.
​Photo by: Shahadat Rahman Shemul 

Watching export growth across South Asia surge in the recent past leads one to ask the obvious but crucial question: Will this trend continue in the longer term and is South Asia on its way to become an export powerhouse, or has it just been a short term, one-off spurt provoked by external forces?

Clearly, the rupee depreciation following tapering talk in May 2013 and the recovery in the US constituted favorable tailwinds; however, our analysis in the fall 2014 edition of the South Asia Economic Focus finds that there are more permanent factors at play as well. South Asia is no exception to the trend across developing countries of increasing importance of exports for economic growth. While starting from a low base, the region saw one of the starkest increases in exports to GDP, pushing from 8.5 percent in 1990 to 23 percent in 2013.

Power Pools: How Cross-Border Trade in Electricity Can Help Meet Development Goals

Michael Pollitt's picture

Power lines strecth over water. Source - DCCXLIXFor nearly three-fifths of the world population, the lack of access to energy is a major challenge to economic development and poverty reduction.

Increasing cross-border trade in electricity can play a major role in helping overcome these challenges. Trade in electricity can help bring down energy prices, mitigate against power shocks, relieve shortages, facilitate decarbonization and provide incentives for market extension and integration.

Yet, countries have been reluctant to trade electricity across borders. Global exports of electricity are currently around 3 percent of total production. This is an anomaly in the energy sector. Think of oil. Roughly 64 percent of all oil produced is traded between countries.

A recent working paper published by the World Bank looks at the institutional arrangements of regional power pools in both developing regions and those in developed countries. In understanding how the regional integration of electricity markets has developed, the paper is able to draw useful lessons for the promotion of future trade arrangements.
 

2014 Annual Meetings Guide to Webcast Events

Donna Barne's picture

How can economic growth benefit more people? What will it take to double the share of renewables in the global energy mix? Will the world have enough food for everyone by 2050? You can hear what experts have to say on these topics and others, ask questions, and weigh in at more than 20 webcast events from Oct. 7 to 11. That's when thousands of development leaders gather in Washington for the World Bank-International Monetary Fund Annual Meetings. Several events will be live-blogged or live-tweeted in multiple languages. You can also follow the conversation on Twitter with #wblive and other hashtags connected to events. We’ve compiled a sampling of events and hashtags below.  Check out the full schedule or download the Annual Meetings app for Apple devices and Android smartphones.

The WTO Environmental Goods Agreement: Why Even A Small Step Forward Is a Good Step

Miles McKenna's picture

Will the WTO be the first global organization to take action on climate change? Source - VerticalarrayInternational trade has a critical role to play in environmental protection and the effort to mitigate climate change. While it certainly isn’t always framed this way, it is important to realize that increased trade and economic growth are not necessarily incompatible with a cleaner environment and a healthier climate.

If we are going to move away from dirty fossil fuels and inefficient energy processes at a rate necessary to limit the likely devastating results of a warmer planet, then we need enabling policies in place—especially when it comes to trade policy.

That’s why, this week, a group of 14 World Trade Organization (WTO) Members are meeting to begin the second round of negotiations on the Environmental Goods Agreement (EGA)—an effort aimed at liberalizing trade in products that help make our world cleaner and greener.
 

Vietnam’s long-term growth performance: A comparative perspective

Axel van Trotsenburg's picture


Vietnam has achieved remarkably high and inclusive GDP growth since the late 1980s. GDP growth per capita increased three-and-a-half-fold during 1991-2012, a performance surpassed only by China. The distribution of growth has been as remarkable as its pace: the bottom 40% of the population’s share in national income has remained virtually unchanged since the early 1990s, ensuring that the rapid income gains got translated into shared prosperity and significant poverty reduction.

GDP growth, however, has been operating on a lower trajectory since 2008. This has led to questions regarding the sustainability of the growth process, and, with it, Vietnam’s ability to bounce back to about 7-8% per capita growth. Analysts have voiced concerns over declining total factor productivity growth and growing reliance on capital accumulation. Moreover, a number of competitiveness issues routinely get raised by private investors, including: a widening skills gap, limited access to finance, relatively high trade and transport logistics costs, an overbearing presence of the SOEs, and heavy government bureaucracy that makes it difficult for businesses to operate in Vietnam.


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