In the aftermath of the global economic crisis, financial market regulators have proposed a myriad of reforms to better govern the banking sector and to enhance its resilience to future shocks. In fact, in September 2010, a number of measures were agreed upon by the Basel Committee on Banking Supervision, an international forum designed to foster cooperation and develop standards on banking supervisory matters.
Advances in Development Economics
What do call centers in Kenya, accounting companies in Sri Lanka, and human resources firms in Abu Dhabi have in common? From the surface, perhaps not much; but from an international trade perspective, these and other industries represent a fundamental change in how countries are doing business.
For the 600 million people living in fragile and conflict affected economies, the threat of relapsing into violence and slipping into deeper poverty is a reality they must face every day. Believe it or not, poverty rates average 54% in fragile and postconflict economies, compared with 22% for low-income countries as a whole. Weak institutions and a lack of local capacity further undermine the delivery of core services, such as security, rule of law, and other public goods.
So what happens when the fighting stops and the reconstruction begins? What happens to local capacity in countries where qualified civil servants have either fled to escape the conflict or were killed during it? A new study on public financial management reforms, produced by the World Bank’s fragile states and public sector governance units, shows that progress is possible even in such difficult circumstances.
South Asia has been one of the world’s success stories in terms of rapid economic growth. With India leading the way, South Asia’s poverty rate has fallen from 60 percent in 1981 to 40 percent in 2005. However, during the same period, the number of poor people—those living on less than $1.25 per day—actually increased from 549 million to 595 million over the same period.
Commodity prices are experiencing a lot of volatility right now, with food and oil prices nearing record highs. But what about the medium-term? The answer is fundamental for developing countries as commodity prices will be the key external variable for them to watch—perhaps even more than interest rates. Commodity prices are expected to stay high until at least 2015, before supply responses and lower relative demand by a burgeoning global middle-class moderate them.
The last 20 years have seen a growing engagement between development and human rights practitioners. But are we still mainly talking past each other? Or has there been valuable mutual learning with development results on the ground?
Let’s start by clarifying what I mean when I refer here to human rights. Adapted from the Stanford Encyclopedia of Philosophy, human rights are international norms that help to protect all people everywhere from severe political, legal, economic and social abuses, or, alternatively, which serve to secure and preserve extremely important goods, protections and freedoms in these various areas, for all people everywhere. These rights are now embodied in the 1947 Universal Declaration on Human Rights and nine core international covenants and treaties.
Since 1947 much has happened. And in the last two decades, there has been a growing convergence between human rights and development. Paralleling the broad reach of human rights concerns, the scope of development has also extended enormously. From mainly being concerned with economic growth, the term has broadened to include poverty reduction, inequality, human and social development, the environment, governance and institutions, just to name some. From GDP figures, we now also think about households and the specific needs of specific groups.
A newsclip in the DECPG Daily dated April 19, 2010, noted: “After Greek aid talks were delayed by disrupted air travel, Greek bond premiums relative to German bunds spiked again on Monday. Air travel disruptions caused by Iceland’s recent volcanic eruption delayed the start of talks on a potential bailout package....
The devastating impact of the global financial crisis, which consequently turned into a global economic crisis, created a consensus that pre-crisis financial regulation didn’t take the “Big Picture” of the system as a whole sufficiently into account. As a result, according to the views of many, supervisors in many markets “missed the forest for the tress”.
A lot is being written these days on the global economic crisis. In fact, the volume of research and blogs on various aspects of the crisis particularly in the developed countries is truly overwhelming. There are too many camps and too many ideas being brandied about the causes, consequences and responses to the global crisis.
‘What is diaspora?’ – a senior official of the biotechnology department of India’s Ministry of Science and Technology asked me as she was describing how the department engages with India’s technical and managerial talent abroad. Relevant expertise is drawn upon for peer review of proposals and mentoring of their subsequent implementation.