Syndicate content

Trade

Malaysia Fails to Qualify for World Cup, Still a Top Team for Trade

Miles McKenna's picture
Trade issues can seem quite complex. Sometimes it's nice to boil concepts down to simpler terms-- terms more familiar, more beloved by many of us. So, let's talk futbol. 

The latest Malaysia Economic Monitor reviews aome key developments in 2013, while also providing in-depth analysis of strutural trends in the country's trade competitiveness. But how competitive is Malaysia (or its trade) on the football pitch? Check out the video below to find out.  
 

Services, Inequality, and the Dutch Disease

LTD Editors's picture

A new World Bank policy research working paper by Bill Battaile, Richard Chisik, and Harun Onder shows how Dutch disease effects may arise solely from a shift in demand following a natural resource discovery. The natural resource wealth increases the demand for non-tradable luxury services due to non-homothetic preferences. Labor that could be used to develop other non-resource tradable sectors is pulled into these service sectors. As a result, manufactures and other tradable goods are more likely to be imported, and learning and productivity improvements accrue to the foreign exporters.

May the Best-Connected Node Score! (Or, How I Came to Tolerate the World Cup)

Jean-François Arvis's picture
 Netherlands player positions. Source - Opta via The Huffington Post.

I have to confess I am indifferent to soccer. Until last week, I was mostly annoyed by the distraction brought by the current World Cup.

​And then things changed a bit. Reading Le Monde, I was intrigued by a graphical representation of a complex network. It just so happened to be a representation of the strategy of the Dutch soccer team. This is a simple and clever representation, which—at least, for me—makes soccer interesting.

Growth Without Apology

Shanta Devarajan's picture

 Chhor Sokunthea / World BankFrom time to time, countries experience rapid economic growth without a significant decline in poverty. India’s GDP growth rate accelerated in the 1990s and 2000s, but poverty continued to fall at the same pace as before, about one percentage point a year. Despite 6-7 percent GDP growth, Tanzania and Zambia saw only a mild decline in the poverty rate. In the first decade of the 21st century, Egypt’s GDP grew at 5-7 percent a year, but the proportion of people living on $5 a day—and therefore vulnerable to falling into poverty—stagnated at 85 percent.

In light of this evidence, the World Bank has set as its goals the elimination of extreme poverty and promotion of shared prosperity. While the focus on poverty and distribution as targets is appropriate, the public actions required to achieve these goals are not very different from those required to achieve rapid economic growth. This is not trickle-down economics.  Nor does it negate the need for redistributive transfers. Rather, it is due to the fact that economic growth is typically constrained by policies and institutions that have been captured by the non-poor (sometimes called the rich), who have greater political power. Public actions that relax these constraints, therefore, will both accelerate growth and transfer rents from the rich to the poor.

Some examples illustrate the point.

Trade policy through 2013: Signs of improvement but new policy concerns

Chad P Bown's picture

Temporary trade barriers have become more than an important bellwether for contemporary protectionism; with persistent tariff levels, they are now a primary obstacle to free trade. The World Bank’s newly updated Temporary Trade Barriers Database suggests that the Great Recession-era increases in import protection may be levelling off. Now policymakers begin to face the daunting task of dismantling all of those temporary barriers they imposed during the early phase of the crisis.

Video: Area C and the Future of the Palestinian Economy

Miles McKenna's picture
World Bank trade economist Massimiliano Calì recently broke down how conflict, the destruction of capital, and restrictions can lead fragile states into large trade deficits and aid dependence. He called it "The Fragile Country Tale." The video below illustrates this tale in Area C of the Palestinian West Bank, and shows us how things could be different. Check it out...
 
Area C and the Future of the Palestinian Economy

Trade vs. Megacities

Cem Karayalcin's picture

In 2000, Port-au-Prince and San Juan accounted for 62 percent of the urban population respectively of Haiti and Puerto Rico. Though they tied for number one in the world rankings as those urban agglomerations that had the highest percentage of their countries urban populations, they were by no means exceptions. Luanda had 57 percent of the urban population of Angola, while Brazzaville had 54 percent of that of Congo. The list goes on to include many developing countries in Africa, Asia, and Latin America.
 
These remarkably high concentrations of urban populations in one dominant city were a long time in the making. Around 1930, when developing market economies had an average level of urbanization of 13 percent, 16 percent of their urban population lived in fourteen large cities (cities that had populations of more than half a million). Such high urban concentrations in the developed world had been attained in 1880, when its average level of urbanization stood much higher at 23 percent. The number of the large cities in the developing world as well as their share of the total urban population increased dramatically between 1930 and 1980, by which date they had 43 percent of the urban population, a number which paralleled that of the developed countries. However, the level of urbanization in the latter stood at 65 percent whereas developing market economies had an urbanization level closer to 30 percent.

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.   


Pages