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Video interview with Joe Stiglitz on Financial and Real Crises in the World Economy

Merrell Tuck-Primdahl's picture

According to Nobel-winning economist Joseph Stiglitz, creating jobs amidst today’s low-demand, high-debt environment is a tall order. It will require viable structural employment policies, unemployment insurance for laid off people, and -- in the case of the US – facing up to the inevitable shift out of the manufacturing sector into services.  Stiglitz, who delivered a DEC Lecture at the World Bank on September 26 on ‘The State of the Global Economy: An Agenda for Job Creation’, warned that far more is broken than the banking and financial systems in high income countries. He argues that a lack of aggregate demand is a huge problem that can only be fixed through smart public as well as private investment in education, infrastructure, and innovative technologies to protect the environment. He also described the current phenomenon whereby productivity in manufacturing is exceeding the rate of growth in demand in the sector, which means jobs on factory floors are being shed. In other words, technical change can induce large distributive consequences and lead to long term unemployment. Listen to my interview with him about what can be done to cure our current ills.

Aid for Trade in a World of Shifting Tectonic Plates

John Wilson's picture

Last week, President Zoellick gave a speech at George Washington University in which he outlined his vision of how the aid agenda should adapt to what he described as “shifting tectonic plates,” which has seen the world change dramatically since 1944 when the Bretton Woods system was established. This shift has created a world in which developing countries are now the drivers of the world economy while the developed world is facing severe economic headwinds.

In Zoellick’s vision of a “world beyond aid,” international assistance would be “integrated with—and connected to—global growth strategies, fundamentally driven by investment and entrepreneurship. The goal would not be charity, but mutual interest in building more poles of growth.”

The education of a gender skeptic: what I learnt from the WDR 2012

Ana Revenga's picture

Before I started working on the World Developmnet Report 2012 (WDR), I often thought of gender equality being at the periphery of my work on development.  Like many other World Bank colleagues, I would have told you: “Yes, gender equality matters and it is a good thing.”  But in my mind gender equality was something that happened pretty much automatically with economic development.  If asked about policy priorities, I would say: focus on growth, on creating jobs, on reducing poverty and improving equity in opportunities, and gender equality will come right along.  But I was wrong. Gender equality is not just something that ‘happens’ with development. Gender equality is both fundamental to and a means for development.  And countries need to work hard at achieving it, because it does not come about on its own with economic growth.

Gender economics and 'Think Equal'

Merrell Tuck-Primdahl's picture

Women in development is becoming a front-burner issue and it's exciting to see the many formats that new research, engagement and campaigning is taking as economists, policymakers, advocacy CSOs, grassroots groups, international organizations and socially responsible corporations are getting on the band wagon.

Oxfam's 'From Poverty to Power' blog has a new 'choose this video' post by Duncan Green that asks readers to vote on three short clips that make the case for empowering girls. One is by Nike and the other by the Commonwealth Countries League Education Fund. There's also a parody video.

In Nigeria, One Size Doesn’t Fit All

Volker Treichel's picture

I blogged a few months ago about a paper Justin Lin and I were writing that focused on applying  the Growth Identification and Facilitation Framework in Nigeria.  The paper has just recently been completed and is now available online.

In the meantime, attacks on the UN house in Abuja have highlighted the extreme social tensions experienced by Nigeria. Many of these tensions may be related to the country’s persistent poverty. In fact, notwithstanding high and sustained growth over the past decade, Nigeria’s job creation has barely kept up with the relentless growth of its workforce, and youth unemployment has further risen.  Moreover, formal sector employment has fallen, as a result of privatization and civil service retrenchment, while employment in informal family agriculture has increased. 

Nigeria urgently needs to increase employment intensity and sustainability of its growth performance, and our paper can be a useful tool for developing a strategy to do so. 

Bears, boots and long-run growth

Justin Yifu Lin's picture

Photo: istockphoto.comJackson Hole was abuzz last week as top economists rubbed shoulders with central bankers, but the stuffed bears in the lobby of the venue seemed symbolic of the angst permeating world markets.

In spite of this, the participants got down to business and I was not alone in thinking that today’s financial market turmoil and the anxiety over high unemployment in the United States and over European debt should be treated by the economics profession as an opportunity to think differently about solutions for kick-starting growth. 

Today’s uncertainty should spur policymakers to take new economic ideas and build a social consensus for action. An ambitious, innovative approach is needed otherwise the crisis will likely be with us for some years. Indeed, the US and EU could face a Japan-style scenario, with prolonged recession and a high level of public debt.

The Horn of Africa, Food Sovereignty, and Other Links

Swati Mishra's picture

The Horn of Africa is facing the worst food crisis ever. Over 12 million people, including malnourished children, have been severely affected in Djibouti, Ethiopia, Kenya and Somalia. The UN estimates that around $2.5bn is needed for the humanitarian response in the Horn of Africa. Many countries have come to the rescue and funds have started to flow in. The Data blog has a very informative post with charts and figures on the donated funds and distribution so far.

With soaring global food prices and climate change, longer-term solutions are needed to ensure food security. For Africa, irrigation can be a beneficial solution, as explained by Shanta Devarajan in his post ‘Irrigation and Climate Change’. Elsewhere in Europe, ‘food sovereignty’ is viewed as the future of food, and interestingly the developing countries are showing the way. Read this post from Poverty Matters to know more.

Low Female Participation in the Workforce: Solving the Turkish Dilemma

Asli Gurkan's picture

During his July 19-22 visit to Turkey, World Bank president Robert B. Zoellick put his finger on a key issue, female participation in the Turkish workforce. It wasn't a coincidence that Zoellick commended Turkey's remarkable economic performance and spoke of the gender-gap in Turkey concurrently. The Turkish case presents a dilemma. Despite Turkey's successes in macroeconomic stability and poverty-reduction, the participation of women in economic life is abysmal.

Open data and the 'average' citizen (building the YouTube of data)

Prasanna Lal Das's picture

Is open data useful only to developers and researchers? Can 'average' users use open data to answer questions they have?

One of the (undeserved!) knocks against open data is the presumption that its core audience is technical and that the only people who can truly take advantage of open data are developers who can tap into APIs to build applications that then make sense of open data for lay audiences (unless the audience happens to be researchers in which case they probably have the necessary tools and the forbearance to troll through vast amounts of raw material). Viewed through this prism, open data is only effective via infomediaries.

Health System Innovation in India Part III

Adam Wagstaff's picture

Taking high-quality affordable primary care to the rural poor with the help of handheld computers, telemedicine, and P4P.

In our first post in this series, we showed how illness in India causes financial hardship and leaves Indians—especially poor ones—with limited access to affordable good-quality health care that can actually make them better. In our last post, we outlined the Aarogyasri scheme—a novel government-sponsored health insurance program in the state of Andhra Pradesh that has the potential not just to reduce financial impoverishment but also raise quality standards in hospital care. In this post, we discuss an innovative private-sector approach to delivering and financing primary health care in rural Andhra Pradesh.

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