The world economy faces huge infrastructure financing needs that are not being matched on the supply side. Emerging market economies, in particular, have had to deal with international long-term private debt financing options that are less supportive of infrastructure finance.
In the context of development, globalization has always had two facets. For the advocates of globalization, it has facilitated financial and economic integration around the world and has played a substantial role in reducing poverty in many developing countries. For those who oppose it, it has introduced new challenges such as economic structural changes, huge income inequality and development disparities across and within developing countries. The changing development landscape with globalization calls for the necessity of reconsidering effective development aid strategies.
At a time when students, parents and governments are looking more closely at the value of schooling, it is important to keep in mind that in addition to being a basic human service, education produces some strong economic benefits. One of the most commonly cited benefits are the earnings associated with schooling. These have been called the returns to investment in schooling.
While estimates of the economic rate of return to schooling have been provided by economists for more than 60 years, it is only recently that we have had such estimates for the vast majority of nations in the world. In a recent research, “Comparable Estimates of Returns to Schooling around the World,” we report the latest estimates of the private – what the individual student earns – returns to schooling using comparable data from 140 economies around the world and more than 800 household surveys.
Do Poverty Traps Exist? is the question asked by Aart Kraay and David McKenzie in an article in the Journal of Economic Perspectives.
An articulate, humble piece by IMF Chief Economist Olivier Blanchard on key lessons from the 2009 financial crisis, the main one being that much more attention needs to be paid to what he calls ‘dark corners’
A new study by an international team of researchers finds that the world's population will hit 11bn in 2100.
A recent surge in China’s food imports has rekindled concerns about global food demand raised by Brown (1995) and about food self-sufficiency in China. According to UN Comtrade data, China’s trade in food was roughly balanced until 2008 but subsequently moved into deficit, with net imports rising to $38.7 billion in 2013. A key question is whether China will become a massive net food importer like Japan and the Republic of Korea, which rely on world markets for more than 70 percent of grain and soybean demand.
China’s rapid economic growth, at 8.5 percent average annual per capita in purchasing power parity terms since economic reform began in 1978, has dramatically changed Chinese diets. While China’s per capita calorie consumption appears likely to be approaching its peak, the composition of food demand seems likely to continue to change, as consumers shift away from basic staples and towards animal-based products. This shift to greater dietary diversity imposes greater burdens on agricultural resources since animal-based diets require much more agricultural resources than vegetable-based diets.
Economists often recommend fuel taxes to curb greenhouse gas emissions from automobiles in cities. But the effectiveness of these taxes depends heavily on other factors, like the availability of public transportation, and the density of a city. In the following podcast interview, I discuss my paper, co-authored with Paolo Avner and Jun Rentschler, and explain why taxes are twice as effective when accompanied by an investment in public transport. Please listen in.
Reuters reports that the number of new Ebola cases in West Africa is growing faster than authorities can manage them, and that the World Health Organization (WHO) is renewing a call for health workers from around the world to go to the region to help.
The Wall Street Journal's 'Corporate Intelligence' blog finds that R&D by pharmaceuticals on tropical diseases like ebola is on the rise. "Increased focus on tropical diseases [is] a mix of social responsibility and “strategic investment in the customers of tomorrow, given that the tropics are home to over 40% of the world’s population," writes Hester Plumridge.
During the 1990s and 2000s, nearly two dozen African countries proposed de jure land reforms extending access to formal, freehold land tenure to millions of poor households, but many of these reforms stalled. Titled land remains largely the preserve of wealthy households and, within households, mainly the preserve of men.
An ambitious research project aiming to map the value of preserving the Amazon rainforest is just getting started at the World Bank. Why is it important to value the Amazon rainforest? Consider the perhaps most fundamental dilemma for conservation policy, with two opposing views. A “conservation” view is to assume that the rainforest should always be protected. A “development” view implies that the rainforest should always be converted to alternative uses (such as agriculture) when such conversion implies clear and readily measurable financial gains. Very often these two views cannot be reconciled, as the value attributed to forest protection by each of them can be dramatically different.
Do economists care about influencing public policy? is a question asked by Robert Hansen on the 'Overcoming bias' blog.
Abhijit Banerji, Arun Chandrasekhar, Esther Duflo, and Matthew Jackson have a new paper on a study of 43 Indian villages that tackles the subject of gossip and how to identify the village busybody, also known as the best information diffuser. This matters for microfinance and any product for which experts want local uptake or adoption.