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Piloting the 2014 Findex

Leora Klapper's picture

As President Kim pointed out earlier this month at the plenary of the World Bank/IMF Annual Meetings, 2.5 billion adults worldwide aren’t using the formal financial system. He used the statistic to illustrate the Bank’s new commitment to harnessing knowledge and becoming a bolder institution, a pledge he quickly followed through on by launching a new initiative to provide universal financial access to all working-age adults by 2020.

We’re thrilled to see high-level citations of Global Findex data, particularly in the context of spurring greater action to increase financial access for the world’s poor. We certainly believe that the 2011 Findex data have been a valuable tool for benchmarking, diagnostics, and cross-sectional analyses related to financial inclusion. But the best is yet to come.

Inclusive Growth Revisited: Measurement and Evolution

Saurabh Mishra's picture

Inclusive growth refers to both the pace and distribution of economic growth. For growth to be sustainable and effective in reducing poverty, it needs to be inclusive (Berg and Ostry 2011a, Kraay 2004). Traditionally, poverty (or inequality) and economic growth analyses have been conducted separately. Recent work indicates that there may not be a trade-off between equity and efficiency, as suggested by Okun (1975), and “that it would be a big mistake to separate analyses of growth and income distribution” (Berg and Ostry 2011b). Ianchovichina and Gable (2012) describe inclusive growth as raising the pace of growth and enlarging the size of the economy by providing a level playing field for investment and increasing productive employment opportunities.

Phailin: Lessons Learned and More

Swati Mishra's picture

“How can risk be measured and managed better globally? “

 ADRA India/European Commission, Creative Commons.This was the question posed to the panelists of the “Risk and Opportunity” event on Oct 9, 2013. It was ironic that a World Development Report (WDR) on risk, which I supported through online publicity, was launching at the same time that a serious storm was threatening Odisha, my home state in India.  As the Annual Meetings of top ministers, policy experts and civil society organizations progressed, so did cyclone Phailin, and the importance of the theme of the WDR 2014 couldn’t have been more pronounced.

Friday Roundup: Globalization, schooling gaps, the five hour energy guy, inequality, Phailin's wake and China in world trade

LTD Editors's picture

Simon J Evenett and Douglas Irwin debate on the future and prospects of globalization in the latest edition of the Economist Debates.

In 'The Gap Between Schooling and Education' on the NYT Economix blog, Annie Lowrey interviews CGD's Lant Pritchett about his new book, "The Gap Between Schooling and Education."

The WSJ's 'At Work' blog carries an interview by Rachel Feintzeig with Manoj Bhargava, a CEO who dropped out of Princeton and lived like a monk in India for 12 years before making it big.

Joe Stiglitz has a piece titled 'Inequality is a Choice' on the NYT's opinionator blog.

An EU-US trade pact: Good or bad for developing countries?

Aaditya Mattoo's picture

For a world weary of waiting for the WTO’s Doha trade round to conclude, even a bilateral trade initiative may seem like a boon, especially when “bilateral” covers half of the world’s economy. But there is a serious downside:  the deal could hurt developing-country exporters unless the EU and US make a special effort to protect their interests. 

The feature of the proposed pact that elicits the most excitement – its focus on regulatory barriers like mandatory product standards – should actually incite the greatest concern. Given low tariffs in the EU and the US – less than 5%, on average – further preferential reductions will not seriously handicap outsiders. But, when it comes to standards – such as those governing safety, health, and the environment – the market-access requirements are brutal and binary: either you meet the established standard or you do not sell.

Champions of risk management

Rasmus Heltberg's picture

The declaration, in 1979, of the worldwide eradication of smallpox marked a highly unusual achievement. The only human disease ever to be eradicated, the eradication of smallpox is also unusual in being an instance of successful risk management that many people have actually heard about. When it comes to risk management, there is often more attention to the failures than to the successes. While crises, crimes, disasters, and social unrest dominate the front pages, and the attention of our leaders, the champions of risk management whose foresight averts damage and destruction rarely get the credit they deserve.

That is a shame because many development problems have a basis in deficient risk management. Take poverty. While every year many families escape from poverty, others fall on hard times. Illness, for example, is a frequent cause of poverty in developing countries where most people have no health insurance and friends and family provide the only safety net. In fact, the toxic mix of high risk and inadequate risk management are implicated in a host of development problems, ranging from malnutrition, infant mortality, civil strife, crime, violence, to sclerotic private sector investment and job creation. To overcome these problems and prosper, the developing world needs champions of risk management.

Stiglitz on Milanovic and inequality

LTD Editors's picture

In today's NYT opinionator blog, Joe Stiglitz writes about inequality and the research of Branko Milanovic, World Bank lead economist and inequality expert. In his post, Stiglitz draws from Milanovic's research on long range inequality trends to ponder who the winners and losers of globalization have been and how the most recent worldwide financial crisis affected both the level of global inequality and the relative importance of differences in mean country income vs. nationally based inequalities. His post explores whether we envisage a situation where income inequality continues, by and large, to increase within nations, but, spurred by the high growth of China and India, decreases globally. Stiglitz also ponders the hollowing-out of traditional middle classes in rich countries.

Running a Horse Race Among Institutions for Investment

Jamus Lim's picture

The variation in investment among developing countries is truly remarkable. Over the course of the 30-year period between 1980--2010---a period of relative calm in the global economy that is often referred to as the "Great Moderation"[*]---the investment rate in developing countries ranged from a whopping 90 percent (Armenia in 1990) to a dismal 1 percent (Liberia in 2003). This variability is more than twice that of variance in economic growth---a topic that has preoccupied many more generations of researchers---and much of this variability stems from the developing world.

Friday Roundup: From Poverty to Prosperity, Risk & Opportunity, MDGs Beyond 2015 & World Bank-IMF 2013 Annual Meetings

LTD Editors's picture

As the World Bank Group-IMF Annual Meetings unfold, the two organizations have been buzzing with activity - a lot of which has revolved around themes discussed on Let's Talk Development in the past few months.

Most visibly, President Jim Yong Kim has laid out his vision for the future of the World Bank Group.  Kim has given over this week numerous speeches and views on the two goals of ending extreme poverty and promoting shared prosperity, including a stated target of reducing extreme poverty to 9% by 2020.  See Kim, UNDP Administrator Helen Clark, South Africa Finance Minister Pravin Gordhan, Chief Economist Kaushik Basu and the IDB's Santiago Levy discuss their thoughts in a panel titled 'From Poverty to Shared Prosperity.'

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