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Bali Holds the Key to Progress on International Trade

John Wilson's picture

Bali, Indonesia has become the epicenter of critical new action on international trade. Between now and the end of 2013, the resort island in the Pacific will host two major international meetings where the focus will be on thinking differently about how the international community approaches trade policy.  The focus, as our World Bank colleagues have urged in the past,  will be on trade along global supply chains.

In December, the 9th WTO Ministerial Conference will convene in Bali.  Expectations run high for a new agreement on trade facilitation.  This agreement would concentrate not on traditional tariff barriers to trade, but rather on issues that have a particularly strong impact on supply chain performance – issues like customs modernization, streamlining import and export procedures, and regulatory transparency.  Addressing these issues can dramatically reduce the costs associated with trade in goods and services and boost international trade.  In fact, our World Bank research  shows tremendous potential returns on aid to trade facilitation – returns of $697 in increased trade for every $1 of aid to trade policy and regulatory reform.

Long term impacts of household electrification in rural India

Dominique Van De Walle's picture

It is estimated that 1.3 billion people in 2009 were still without electricity. Many rural households in the developing world continue to cook with wood and biomass (mainly dung), and spend a lot of time collecting and preparing fuel for domestic use. Across the world, these time (and resulting health) burdens are thought to be higher for women and the children under their care. 

One popular argument is that by relieving time burdens spent in collecting and preparing fuel, household electricity results in rural women engaging in market-based work — judged to be a good thing since women’s empowerment has been linked to having one’s own income.  In fact, a number of studies show that the introduction of household electrical appliances accounts for a large share of the increase in married American women’s labor force participation in the 20th century. For the developing world, a recent paper by Taryn Dinkelman finds similar and large effects on female employment (and not on male employment) for South Africa, which are attributed to the use of electric stoves and other time saving appliances. 

Why risk management for development organizations is important

Magda Stepanyan's picture

The following post is a part of a series that discusses 'managing risk for development,' the theme of the World Bank’s upcoming World Development Report 2014.

There are three fundamental challenges in mainstream risk management for development organisations: a culture of blame, lack of adaptive capacity on the part of development organisations and the lack of a shared concept of risk management.

Quite often the manifestation of risks is associated with failure, which subsequently leads to blame. This in turn hinders proactive risk-taking behavior among development organisations and limits their performance. Often we forget that only by failing can we learn to succeed. At the same time, there are also failures that are unnecessary and avoidable if risks are systematically taken into account. Failing to prevent recurrent crises, for example, is unjustified. Recurring drought and hunger are not typical of the Horn of Africa as a geographical region. They are signs of continuing failure on the part of local governments and the international community to address the risks of drought and hunger, which then results in recurrent crises.

Friday round up: Fighting extremism, Peru and health care, latest climate report, the Palma inequality measure, and Laos in space

LTD Editors's picture

Malaysia's Prime Minister is interviewed in New York earlier this week by Fareed Zakaria, explaining the Global Movement of Moderates that he set up to counter extremist ideology.

In "The BRICs Paradox: A Healthy Economy and Bad health Care," Eduardo Gomez writes in The Atlantic on how Peru is growing robustly yet still faltering in terms of health system reforms.

In the NYT's Dot Earth blog, Andrew Revkin describes how the IPCC's fifth report clarifies humanity's choices.

Is “Half Empty” Good News for Women’s Rights?

Mary Hallward-Driemeier's picture

Over the past 50 years, there has been tremendous progress in improving women's legal rights. Indeed, half of the gaps in women's legal rights to property and equal legal capacity were closed during the period 1960 to 2010 in 100 developed and developing countries, according to two new studies highlighted in the Women, Business and the Law 2014 report, launched on September 24. The challenge now is that some sticky areas persist where laws haven't changed or have even regressed. Tackling these remaining gaps is crucial given that strengthening women's legal rights goes hand in hand with better economic opportunities, health, and education — on top of being an inherent right — points made forcefully in the op.ed. by Sri Mulyani Idrawati, Managing Director of the World Bank.
 

Getting to Zero in the fight against extreme poverty

Lisa Horner's picture

We could be the generation that puts an end to extreme poverty. This is a bold claim that often prompts raised eyebrows and murmurs of disbelief. But it is an idea that Save the Children, The World Bank, and others have been reiterating as we engage with the international process to define a new  framework to replace the Millennium Development Goals (MDGs) – a set of concrete human development targets that have united global efforts to fight poverty since 2002, and are set to expire in 2015. 

But while ending extreme poverty is, of course, a laudable vision, is it a feasible proposition?  Could we really be the generation that achieves it, finishing the job that the MDGs started?

Why Didn’t the World Bank Make Reducing Inequality One of Its Goals?

Jaime Saavedra-Chanduvi's picture

The World Bank Group (WBG) has established that its mission, endorsed by the governors of its client countries, is centered around the goals of sustainably ending extreme poverty and promoting shared prosperity.  Extreme poverty is monitored by the percent of people living below the $1.25-a-day threshold.  The Bank’s mission thus gives a clear message:  Extreme poverty, hunger, destitution must come to an end.

To monitor progress in shared prosperity, the WBG will track the income growth of the bottom 40 percent of the population in each country.  The clear signal the WBG wants to give is that the institutional mission is about reducing poverty, fostering growth and increasing equity, so we need to monitor what happens to welfare of the less well off in every country.  Improving averages is not enough; a laser focus on those who are at the bottom of the distribution at all times, everywhere, is needed.

South-South Trade through Value-Added Glasses

Otaviano Canuto's picture

Using gross figures of exports and imports to approach the contribution of trade to economic growth and a country’s resource allocation may be misleading. Products often cross borders more than once while being processed until their final use and may thus be counted multiple times. Furthermore, given the increased use of imported intermediate goods and services associated with rising global trade flows in the last decades, not only exports of goods and services carry some content of imported inputs classified in other sectors, but also some exports of intermediate products may return embedded in imported final products. Therefore, in order to gauge appropriately where and how much is the value added by a country’s employed labor and other factors of production, one has to do due accounting of those intra- and cross-sector trade in order to measure trade in value-added terms – see a thorough analysis in Mattoo et al (2013).

Tales from the Development Frontier

Hinh T. Dinh's picture

How have China and other countries resolved the binding constraints in light manufacturing to create jobs and prosperity? This vital question is answered in a new book based on unprecedented access and detailed interviews at hundreds of Chinese firms in more than 15 cities (including the coastal regions that have fuelled the export boom), as well as visits to a dozen countries in Africa and Asia. The book, Tales from the Development Frontier: How China and Other Countries Harness Light Manufacturing to Create Jobs and Prosperity, focuses on labor-intensive manufacturing (apparel, leather goods, agribusiness, woodworking, and metal products). It is part of the Light Manufacturing in Africa Project being undertaken by a World Bank team in the Development Economics Vice Presidency. We draw from  analytical reviews, case studies, and the testimony of individual entrepreneurs to show how developing countries can grow manufacturing to create jobs and foster prosperity.

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