As part of their response to negative shocks coming from advanced economies after Lehman's collapse in 2008, most developing countries resorted to countercyclical fiscal policy.
Macroeconomics and Economic Growth
Increased cross-learning and cooperation among developing countries has been a remarkable feature of the global economy in recent decades. It's been some time now since knowledge and technology flowed only from advanced economies ("North") to developing ones ("South").
Gross Domestic Product, better known as GDP, is the market value of all final goods and services produced within a country in a given period. That's why GDP per capita is widely used as a summary indicator of living standards in a country. No wonder we keep our eyes closely on its evolution and compare its levels among countries.
This week marks the fifth anniversary of the global financial crisis. Five years ago, the world of finance was shocked when BNP Paribas announced a freeze of three of its money market funds that were undergoing a deadly run of withdrawals. At that moment, a huge pyramid of complex financial assets—then sustained as collateral accepted by banks and the “shadow banking system”—hedge funds and money market funds—started to crumble.
Employment numbers released today by the World Bank shed some light on the resilience of job creation and job preservation heretofore exhibited in most emerging countries.
In 2001, trade representatives from around the world first arrived in Doha, the capital of tiny Qatar, for the latest round of World Trade Organization (WTO) negotiations. The goal was ambitious: work to reduce trade barriers, while ensuring that developing countries secure their fair share of global trade growth.
Drug trafficking is nothing new. But with the current levels of violence we are seeing, its effects on society and economic activity are staggering. From the suffering of victims, to increasing levels of corruption and the weakening of institutions, drug trafficking is not only a criminal problem—it is an urgent development issue which needs to be tackled.
The drug business is particularly insidious.
After the elections that took place in Greece over the weekend, many European leaders breathed a sigh of relief…for a couple of hours. With the narrow defeat of the anti-austerity, anti-bailout opposition party, the results lessened the possibility that Greece would backtrack on commitments recently assumed as part of its second aid package, and decreased the chances of a chaotic exit from the Euro zone.
Whenever we think of textile workers nowadays, we tend to think about cheap labor—particularly women sewing in overcrowded factories. In fact, the textile industry nurtures the narrative of how maquiladoras in the south have robbed manufacturing jobs from countries like the U.S., or how China has inundated the global market with cheap goods.
Recent data show that poverty is falling around the world. Today, 43 percent of people are considered to be living in “poverty” (on less than $2 per day), compared to 30 years ago when almost three-fourths of the developing world’s population was doing so.