Syndicate content

South Asia

Helping Firms Diversify, One Incentive at a Time: the Experience of Nepal

Gonzalo Varela's picture
Policymakers care about export diversification. High product and market concentration increases a country’s vulnerability to external shocks. Sudden closure of export markets triggered by regulatory changes or dramatic changes in international prices, for example, could even threaten macroeconomic stability when export baskets are concentrated.

The Future is Here: Technology trends currently shaping the world of Logistics

Karuna Ramakrishnan's picture
Also available in: Spanish

Emerging technologies are transforming global logistics. The evidence is everywhere: Logistics companies are exploring autonomous fleets and “lights-out” warehousing, and are looking to Big Data for transport management and predictive analytics. Crowdsourcing start-ups are using a high-tech/asset-light business model. And e-brokerage platforms are providing real-time information from pickup to delivery.
 

Nepal: How a 21st century trade policy framework could boost exports, jobs and economic growth

Cecile Fruman's picture
Equipped with unique tourist destinations, a strong national brand, and favorable trade positions with developed countries, Nepal is a country full of untapped potential. But several obstacles are holding it back from being a modern and globally connected economy. Some of these are unavoidable, such as its remote and landlocked location. But others, including outdated and restrictive trade and investment policies, lack of sufficient infrastructure, and a low capacity for adhering to quality standards for exports, could be resolved with a more modern trade framework.

Traditional trade policy is alive and kicking

Nihal Pitigala's picture

With the growing importance of global value chains as a conduit for trade integration, much of the recent empirical analysis and other literature has focused on the impacts of non-tariff barriers, behind-the-border measures, and other transaction costs. Traditional barriers, tariffs in particular, have generally been dismissed as less disruptive to trade and, therefore, have fallen out of the policy debate. However, evidence is surfacing from developing countries that import taxes are on the rise, increasing protection, and their disruptive tendencies are often disguised. Along with the rising tendency to subsidize domestic industries, these additional taxes tend to further augment the inherent anti-export bias, which can be particularly detrimental to trade-led development strategies and policies in developing countries. 

Picture Trade: How we can visualize intra-regional trade in South Asia and beyond

Siddhesh Kaushik's picture
Intra-regional trade constitutes less than 5 percent of total trade in South Asia, according to World Bank analysis. Economic cooperation remains low, despite the Agreement on a South Asian Free Trade Area (SAFTA). The region’s low level of intra-regional trade is a puzzling phenomenon, and it’s left many interested folks asking questions.

Which regions trade more amongst themselves? What are the top products being exported or imported? Who are the top exporting and importing countries in a particular region?

Here is a visual representation of regional trade in South Asia in WITS that can help quickly unpack some of these questions as they relate to the region. 
 
South Asia, Export by Region
(Click on + sign on left to view country breakdown)


After the jump, we break down these numbers and show how you can explore the viz. 

Closing thoughts on the "Harnessing Digital Trade for Competitiveness and Development" conference

Rosanna Chan's picture

Fiber optic light bokeh. Source - x_tineDigital entrepreneurs have the potential to connect to global markets like never before. Whether selling physical goods on internet platforms, or providing digital goods and services that can be downloaded and streamed, an entirely new ecosystem of innovative micro and small businesses has emerged in the developing world.
 
The World Bank Group hosted some of the pioneers in this space for a full-day conference on Harnessing Digital Trade for Competitiveness and Development on May 19. Here, we heard entrepreneurial success stories—an online platform for jewelry in Kenya, a provider of software solutions in Nepal, an online platform for livestock trade in Serbia—and dove into the constraints and challenges of running a digital business in an emerging economy.
 
The scope of these challenges made these success stories, and the broader potential they represent, even more inspiring. From internet connectivity to logistics, from financial payments to trade regulations, from bankruptcy laws to entrepreneurial and consumer digital literacy-- clearly, more needs to be done to fully harness the potential of digital trade for competitiveness and development and to foster an enabling environment to digital trade.

What happens when the economics of everything meet the internet of things?

Miles McKenna's picture

What will digital innovation mean for trade and development? Source - RiderofthestormWhen we think of eradicating extreme poverty, most of us associate this idea with the provision of basic needs. Food. Water. Shelter. Some argue to include clean air, security, even access to basic healthcare and primary education. But what about access to the internet? Where does the internet fit into development?

This is one of the overarching questions put to the authors of the upcoming 2016 World Development Report: Internet for Development. It was also the topic of a recent roundtable discussion entitled Digital Trade: Benefits and Impediments here at the World Bank Group, where economists and development professionals, including representatives from the public and private sectors, sat down to discuss some of these issues in detail.

The conversation hinged on what the internet meant for trade, especially for online entrepreneurs in developing countries. The internet, in many ways, signifies innovation. How then can we ensure that individuals seeking to introduce their ideas to the world and tap into the global marketplace can best do so? Is this a question of infrastructure? Is it a question of regulation?

Here’s what the numbers tell us.

Waiting on a waiver - what the WTO's new services initiative could mean for LDCs

Marcus Bartley Johns's picture

Workers sort, repack, and ship goods in Al Obaied Crop Market, North Kordofan, Sudan. Source - Salahaldeen Nadir/World BankThe World Trade Organization (WTO) Trade Facilitation Agreement (TFA) has been getting a great deal of attention since it was finalized at the 2013 Bali Ministerial Conference– and rightly so. As we’ve written before on this blog, trade facilitation is a powerful driver of increased competitiveness and trade performance in developing countries.
 
But last month, the spotlight at the WTO was on another important decision from Bali—how to maximize the impact of a waiver to support exports of services from Least Developed Countries (LDCs).

At a meeting on February 5, around 30 WTO Members, covering most major export markets for LDCs, set out in concrete terms what preferences they could provide. The preferences cover a wide range of services and modes of supply, as well as regulatory issues that LDCs have identified in a “collective request” to other WTO Members. 

New Voices in Investment: How Emerging Market Multinationals Decide Where, Why, and Why Not to Invest

Gonzalo Varela's picture

Emerging market multinationals (EMMs) have become increasingly salient players in global markets. In 2013, one out of every three dollars invested abroad originated from multinationals in emerging economies.

Up until now, we have had a limited understanding of the characteristics, motivations, and strategies of these firms. Why do EMMs decide to invest abroad? In which markets do they concentrate their investments and why? And how do their strategies and needs compare to those of traditional multinationals from developed countries?

In a book we will launch tomorrow at the World Bank, “New Voices in Investment,” we address these questions using a World Bank and UNIDO-funded survey of 713 firms from four emerging economies: Brazil, India, Korea, and South Africa.

Pages