Calestous Juma, Harvard Kennedy School professor, writes in The Guardian about how the private sector can be harnessed to ensure that Africans take responsibility for their development. He argues that, to fight a 'public bad' like Ebola, the AU and the private sector can serve as much-need organizing forces.
We often think that all women are in some way subjected to gender-based discrimination, and indeed, there is wealth of evidence to support this belief. The same can be said about ethnic minorities and other social groups—indigenous peoples, refugees, sexual minorities, the poor, immigrants, and people living with HIV/AIDS—who may face barriers in their quest for a better life.
In reality, though, we all have multiple identities, and our abilities, opportunities and achievements are all socially mediated by the way these multiple identities interact with each other. For instance, the feminist literature highlights that day-to-day experiences of ethnic minority women can be drastically different from ethnic majority women, although both groups fare worse than men in most outcomes. While context plays a large role in how ethnicity exacerbates gender-based divisions, such interactions often get manifested in similar ways, through systematic, cumulative achievement gaps across social groups.
G20 Leaders concluded their summit over the weekend in Brisbane, Australia. G20 summits represent the culmination of a process of preparatory work and discussion that lasts a whole year. Concerns about weak prospects for global growth and job creation took center stage in the G20 agenda this year. Economic recovery in advanced economies has been slow and uneven and growth in the faster-growing emerging economies also has slowed. There is a growing recognition that restoring more robust global growth requires not only addressing the legacies of the global financial crisis but also implementing deeper, structural reforms to raise potential growth.
Against this background, all G20 countries were asked to prepare medium-term growth strategies to provide a systematic framework for addressing policies and priorities in the growth agenda. The strategies that have been prepared are comprehensive in scope, spanning macroeconomic policies and structural reforms to promote strong, sustainable, and balanced growth. They have a particular focus on four policy areas that the Australian G20 Presidency emphasized as key elements of the growth agenda, namely, investment and infrastructure, employment, competition and business environment, and trade. The emphasis in the strategies on investment and structural reforms is appropriate: while the proper calibration of macroeconomic policies is important to support aggregate demand in the short term, in the medium term it is the productivity-enhancing structural reforms and investments that will drive strong and sustainable growth. The strategies have benefited from an extensive process of discussion and peer review within the G20, supported by technical assessments prepared by international organizations. Final versions of these strategies were released yesterday together with the Leaders’ Communiqué and the Brisbane Action Plan (which provides an overview of these strategies).
In ‘Financial Inclusion—A phoneful of dollars,’ The Economist writes about mobile money, simple pre-paid cards, findings from the Global Findex, microfinance and more.
The World Bank Group and the IMF jointly launched the new Quarterly External Debt Statistics (QEDS) database, which now features new concepts and definitions, as well as new classifications of external debt statistics and tables.
International trade has undergone a radical transformation in the past decades as production processes have fragmented along cross-border value chains. The Brazilian economy has remained on the fringes of this production revolution, maintaining a very high density of local supply chains. This article calls attention to the rising opportunity costs incurred by such option taken by the country.
Moving Tectonic Plates under the Global Economic Geography
In recent decades, international trade has gone through a revolution, with the wide extension of the organization of production in the form of cross-border value chains. This extension was a result of the reduction of tariff and non-tariff barriers, the incorporation of large swaths of workers in the global market economy in Asia and Central Europe, and technological innovations that allowed modularization and geographic distribution of production stages in a growing universe of activities. International trade has grown faster than world GDP and, within the former, the sales of intermediate products has risen faster than the sale of final goods.
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.
Globally, tremendous progress has been made in reducing extreme poverty in the last 25 years. However, the number of poor remains unacceptably high, at just over 1 billion in 2011 compared with 1.2 billion in 2008, creating a widening gap between the living standards of those in the bottom 40 percent and the top 60 percent of the population. According to the recently released Global Monitoring Report, the well-being of low income households still remains below that of households in the top 60 percent directly impacting young children who are 2-3 times more likely to be malnourished than those in the highest wealth quintiles.
Today, November 10, is World Science Day, and the focus of the Day this year is quality science education. Learning in schools in many developing countries is low. But the same can be said for many schools in Washington, DC. On PISA (Programme for International Student Assessment), the international benchmark to measure mathematics skills and science literacy, among 34 OECD countries the US ranked 27th in mathematics and 20th in science, with no statistically significant improvement over time. Within the US, again in terms of performance in mathematics, the capital city of Washington DC ranks last behind all states in the national NAEP assessment. Improving such low levels of performance requires a concerted effort, but tutoring for STEM (Science, Technology, Engineering, and Mathematics) subjects can help. Tutoring can be part of the solution to improve learning.
Kaushik Basu, Barry Eichengreen, and Poonam Gupta have written a new column titled “From tapering to tightening: The impact of the Fed’s exit on India,” which describes the impact of the US Fed’s tapering on India.
A new paper by Gbemisola Oseni, Kevin McGee, and Andrew Dabalen examines the determinants of agricultural productivity and its link to poverty using nationally representative data from the Nigeria General Household Survey Panel, 2010/11.