This blog post is based on de Soyres, Frohm, Gunnella and Pavlova (2018), “Bought, Sold and Bought Again: Complex value chains and export elasticities”, World Bank Policy Research Working Paper Series No. 8535.
Economics textbooks outline a clear-cut relationship between movements in a country’s exchange rate and its export volumes. When the currency depreciates, export volumes are expected to increase by some amount. By how much exports increase is called the exchange rate elasticity of exports. Yet, some recent episodes of significant exchange rate movements, such as those in Japan (2012–2014) and the United Kingdom (2007–2009), were not associated with very large movements in trade volumes.1 This perceived unresponsiveness of exports to exchange rate fluctuations has raised the question among some commentators as to whether the exchange rate elasticity of export volumes have changed or even become zero.
Your neighbor drives for a ride-sharing company. Your nephew just joined his third start-up. Your daughter lands a job as a freelance journalist. Your street vendor who sells flowers down the street has been absent due to an illness.
The changing nature of work is upending traditional employment. But as the gig economy, part-time jobs, contracts and other diverse and fluid forms of employment grow, what happens to the protections the traditional job market offered to people and workers?
It’s not so long since the days when speaking of ‘universal health coverage’ used to provoke shockwaves. Happily, the principle that “… everyone having access to the health care they need without suffering financial hardship” is now widely recognized and documented. And although few countries have achieved this goal in practice, it is clearly within reach, including in low-income countries like Rwanda.