What is the appropriate goal of economic policy? From 1950s to now, this measurement of economic performance has been steadily changing from monetary to non-monetary aspects -- increasing per capita incomes, to broad-based GDP growth, to human development, to sustainable environment, gender equity, development as freedom and empowerment, poverty reduction, equity in opportunities, and more recently, to happiness.
Internet technology began as a Cold War communications network developed by America’s Department of Defense (DOD). Between 1968 and 1998, the DOD controlled the operation of internet protocols and was coordinated by a tech-god (late Jon Postel). Since 1998, a group called the Internet Corporation for Assigned Names and Numbers (ICANN) operating under the oversight of the American Government manages the dot-com addresses, names and routing numbers.
How will global external imbalances adjust? Economists have vastly diverse views. The IMF presented two adjustment scenarios using its Global Economic Model, a benign baseline and a more abrupt adjustment. Depending on views regarding the probabilities of various adjustment scenarios, proposed policy responses differ. This note provides a survey of recent literature and summarizes diverse views on various assessment of the probability of a hard landing, and the proposed policy responses.
At a high-level conference in Washington recently, World Bank President Paul Wolfowitz recollected an experience he had visiting a small town in Pakistan last summer.
“…development is like a cart with two wheels - one man and one woman. If one of the wheels isn’t moving, the cart won’t go very far,” one woman described to Wolfowitz.
The following is the introduction to Raj Nallari’s lecture notes on Growth and Poverty Reduction. These materials are part of courses delivered during the last two years to analysts and policy makers around the world. We will be posting these notes every week, in our Fridays Academy series.
Although the world economy has been growing at a decent rate in the last three years, the global current account imbalances have reached unprecedented levels. On one hand, the US current account deficit rose from $665 billion in 2004, to $820 billion or 6 percent of GDP in 2005, and is expected to reach $900 billion in 2006.
This is a book review of the Economic Origins of Dictatorship and Democracy by Daron Acemoglu and James A. Robinson.
The term “Dutch Disease” originated in the Netherlands during the 1960s, when the high revenue generated by its natural gas discovery led to a sharp decline in the competitiveness of its other, non-booming tradable sector. Despite the revenue windfall the new discovery brought, the Netherlands experienced a drastic decline in economic growth.
Equity is defined as equality of opportunity or equality in access to goods and services. Inequities between boys and girls in educational access, between males and females in access to credit and job opportunities, inequities between the poor and the rich in access to land, education, essential health, water and other services, all have a bearing on poverty reduction. In other words, a person's life prospects should not be influenced by circumstances of birth, gender, race, family wealth and class or creed.