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Trade

Five actions that matter to the future of Aid for Trade

Anabel Gonzalez's picture
This week, myself and colleagues from the World Bank Group will participate in the World Trade Organization’s Sixth Global Review of Aid for Trade. The bi-annual meetings, held at WTO headquarters in Geneva, bring together trade ministers, civil society, international development institutions and the private sector to monitor progress made toward connecting developing countries to the global trade system.

What China’s Appetite for Meat means for Mongolia

Miles McKenna's picture
The concept of farm-to-fork can be complicated when it comes to meat. Fresh meat could be from the farm next door—or it could be from 10,000 kilometers away, having just arrived on a flight from the other side of the globe. With advances in cold chain transportation and logistics, distances that once took meat weeks to travel are covered in days, if not hours. And for a handful of low- and middle-income countries, meat exports are big business.  

Preparing for the future of logistics - the Singapore way

Yin Yin Lam's picture
Photo: Sarah Starkweather/Flickr
The government of Singapore recently outlined its vision for the country's future, describing how different sectors could harness technology, innovation and mega-trends in order to take the city-state to the next level. This approach includes a dedicated Industry Transformation Map for the logistics sector, which accounts for 7.7% of Singapore's GDP and over 8% of jobs. Logistics is also understood as a crucial enabler for other significant parts of the economy, such as manufacturing and trade.

How is Singapore anticipating the transformation of logistics?

Singapore has been considered a major logistics hub for quite some time, and is currently ranked first in Asia according to the Word Bank’s Logistics Performance Index. The sector, however, is experiencing significant transformations such as the rise of digitally enabled logistics services, and the emergence of new delivery capabilities (autonomous vehicles, 3D printing).

The Industry Transformation Map (ITM) will help Singaporean logistics keep its competitive edge in this rapidly evolving context, and aims to achieve a value-added of S$8.3billion (US$6 billion) by 2020. In particular, the ITM intends to strengthen innovation, productivity, as well as talent development across the logistics sector—including by leveraging trends such as artificial intelligence and collaborative robotics.

The Philippines: Resurrecting Manufacturing in a Services Economy

Birgit Hansl's picture
In recent years, the Philippines has ranked among the world's fastest-growing economies but needs to adjust to the demands of a dynamic global economy.

The Philippines is at a fork in the road. Despite good results on the growth front, trends observed in trade competitiveness, Global Value Chain (GVC) integration and product space evolution, send worrisome signals. The country has solid fundamentals and remarkable human assets to leapfrog into the 4th Industrial Revolution – where the distinction between goods and services have become obsolete. Yet it does not get the most out of this growth, especially with regards to long-term development prospects. In order to do so, the government will have to make the right policy choices.

Building resilience, rebuilding lives with dignity

Jim Yong Kim's picture

© Dominic Chavez/World Bank

On World Refugee Day, we pay tribute to faces of resilience – mothers, fathers, husbands, wives, and children, who fled horrific circumstances as refugees, but who continue to strive every day to rebuild their lives with dignity.

As the number of people displaced by conflict climbs to historic highs, it’s easy to lose sight of the faces behind the statistics. But recently, there’s been a sea change in how the world is managing this crisis – by putting people first, and making it possible for refugees to work or go to school and become self-reliant as an integral part of their host country’s development story.

Our commitment to the people of Afghanistan stays strong

Annette Dixon's picture
Despite government efforts with support from the international community, Afghanistan's development needs remain massive. Photo Credit: Rumi Consultancy/ World Bank

I am still shaken and saddened by the many lives lost to the attacks in Kabul two weeks ago and since then there has been more violence. As we grieve these tragedies, now is the time to stand strong with the people of Afghanistan and renew our commitment to build a peaceful and prosperous country.

To that end, we announced this week a new financing package of more than half-a-billion dollars to help Afghanistan through its struggle to end poverty, increase opportunity to help stabilize the country, and ensure all its citizens can access basic services during a time of economic uncertainty.

Afghanistan has come a long way since 2001 and achieved much progress under extremely challenging circumstances. Life expectancy has increased from 44 to 60 years, maternal mortality has decreased by more than three quarters and the country now boasts 18 million mobile phone subscribers, up from almost none in 2001.

Yet, the development needs in Afghanistan remain massive. Nearly 40 percent of Afghans live in poverty and almost 70 percent of the population are illiterate. The country needs to create new jobs for about 400,000 people entering the labor market each year. The situation is made more challenging by the return of around 5.8 million refugees and 1.2 million internally displaced people.

Our new support is in line with our belief that Afghanistan’s economic and social progress can also help it address security challenges.  Our financing package meets the pressing needs of returning refugees, expands private-sector opportunities for the poor, boosts the development of five cities, expands electrification, improves food security, and builds rural roads.

U.S. post-crisis trade weakness in 4 charts

Franziska Ohnsorge's picture
Trade growth has slowed sharply since the 2007-2009 financial crisis. An analysis of U.S. trade data shows that trade between unaffiliated firms (arm’s-length trade) – as opposed to trade between firms linked by control or ownership (intra-firm trade) – accounted for the lion’s share of this slowdown. Arm’s-length trade depends more heavily on sectors of the economy, such as textiles and apparel, that have languished since the crisis.

Good luck and good policies

Frederico Gil Sander's picture

In Brazil, where I come from, we are crazy about football, so I grew up listening to football matches. At the end of a match, the reporters would interview the main scorer of the day, who would often say that he was just lucky to receive the ball at the right place.
 
The commentator would then say that “good luck is a combination of ability and opportunity”. This story comes to mind when thinking of India’s economy over the past two years.
 
India has been lucky indeed. In the fiscal year ending March 2016 (FY16), the sharp decline in oil prices generated what economists call a positive “terms-of-trade” shock, which lifted growth.
 
A terms-of-trade shock means that the things you buy suddenly become cheaper relative to the things you sell, allowing you to buy more things.


 
In the fiscal year that just ended, CSO data that was released recently shows that the good monsoons helped agriculture propel growth. Notwithstanding disruption from demonetization, agricultural wages have continued to grow, along with their purchasing power as rural inflation declined.

But India has also implemented good policies, which allowed it to take advantage of the external shocks. The government took advantage of declining oil prices to eliminate fuel subsidies and hike taxes on carbon-emitting petroleum products, a win for the environment and a win for the exchequer.

The future of business matchmaking

Aman Baboolal's picture

How a new green business facility in South Africa is connecting local companies to the global green economy

Traditional trade mission functions are becoming obsolete. Over hors d'oeuvres, business cards are exchanged, elevator pitches are delivered but, in most cases, entrepreneurs leave with empty promises to stay in touch and no useful contacts. This may sound a little cynical but the reality is that in an age of business models “ripe for disruption,” the ways to create viable business partnerships across borders have not changed for decades.
 


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