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Labor and Social Protection

Why It Is Time to Take Action on Agriculture in Turkey

Donald F. Larson's picture

Turkish eggplant. Source - Suzie's FarmTurkey’s bid to join the European Union (EU) may finally be getting “back on track,” according to the bloc’s top official for enlargement. And while that track may still have a number of hurdles to clear, recent research, carried out by the World Bank Group outlines several interim policy measures that could bring the sides closer together while also benefitting the Turkish economy.

Most goods already move freely between the two economies, under the EU-Turkey Customs Union established in 1995. But agriculture, as is often the case, has proved a sticking point and remains outside the Customs Union today.

A set of permanent institutions, established under the 1963 Ankara Agreement, have chipped away at agricultural trade restrictions. These have steadily provided technical support and helped to facilitate quick action when political opportunities have arisen. And today there is still opportunity to take action on agriculture—with or without becoming an EU Member State.

Sticky Feet: How Workers’ Reluctance to Move Can Reduce Gains from Trade

Elizabeth Ruppert Bulmer's picture

When economists think about price shocks, they consider how a change in price will affect the supply and demand of a product. But when that product is human – i.e., a worker – interpreting the impact of a price – or wage – shock is no longer cut and dried.

Just consider: If your wage was suddenly cut, would you remain in your current job despite the loss in earnings? Would you quit immediately, or look for a new job while continuing to work? How long could you survive on your lower earnings? Would you be forced to sell your house or other assets? How much money and effort would you invest in finding a better job? Would your personal circumstances allow you to take a better job in a distant location? Would you uproot your family for this job? 

Notes From the Field: Taking On Politics, Shifting Paradigms

Miles McKenna's picture

Editor's Note: "Notes From the Field" is an occasional feature where we let World Bank professionals conducting interesting trade-related projects around the globe explain some of the challenges and triumphs of their day-to-day work. The views expressed here are personal and should not be attributed to the World Bank. All interviews have been edited for clarity.

The interview below was conducted with Manjula Luthria, a Senior Economist in the World Bank’s Middle East and North Africa (MENA) regional division of the Human Development Network. Ms. Luthria's work focuses migration, labor mobility, and social protection. She spoke with us about her early experiences as a country economist for the Pacific Islands region, and how lessons learned there have come to inform the programs and projects her unit works on today.
 

West Bank Check-Points Damage Economy, Illustrate High Cost of Trade Barriers

Massimiliano Calì's picture

Qalandia Check-point. Source - www.flickr.com/photos/37276375@N08/4910258986/in/photolist-8tUmVG-8unY9k-7YfgzGConflict is a major cause of poverty in the developing world today. In addition to endangering lives, conflict disrupts the functioning of an economy in many ways. It destroys infrastructure, prevents children from going to school, and closes factories. A little-studied economic impact is conflict’s tendency to restrict the mobility of goods and labor within and across borders. These restrictions are caused both by insecurity associated with the conflict and by explicit barriers that constrain the mobility of people and goods. Our recent World Bank study measures the harm such barriers have caused the economy of the West Bank by limiting mobility in the Israeli-Palestinian conflict.

Shocks Hit Workers Twice In Offshoring Industries: Lessons From Mexico

Daniel Lederman's picture

Factory in Mexico. Source: Alan Grinberg -- http://www.flickr.com/photos/agrinberg/5536586224/The world is increasingly interconnected, and nowhere is a better example of that than the border between Mexico and the US. Lined with factories, the division between the two countries is blurred by a comprehensive trade agreement, international production chains, and other economic and social ties. On the Mexican side of the border, close to 3,000 factories import components and raw materials, workers assemble goods, and most of the finished products are destined for the US.

Is this good for Mexican workers? These export-oriented industries provide nearly two million jobs, a boon for development. But it turns out that these jobs can disappear quickly: the economic health of the US has a large impact on Mexican workers’ employment status, with downturns and booms amplified through a number of channels. Although the US economy is rarely volatile, this is an important finding that could have policy implications around the world. Mexico is similar to the increasing number of countries that have encouraged export-oriented industry as a strategy for development and enacted trade reforms integrating the local economy with the world market.

Welcome to The Trade Post

Mona Haddad's picture

A trading post from the old west. Source: http://www.flickr.com/photos/reservatory3/Welcome to The Trade Post, the World Bank’s new blog on international trade. Here, our trade experts will share their research, observations and questions. We will post when a new, interesting trade study is published or when a solution to one country’s trade policy issue might be applicable to others. We will discuss data, trends and complex ideas. But, above all, our goal is to make our work accessible and understandable, and we hope to engage a wide audience.

Some of our past blogging – originally published elsewhere in the World Bank– can be found here in our archive. We have remarked on the ways extreme flooding in Thailand exposed the vulnerability of supply chains, pointed out political hurdles to infrastructure planning in Africa, and described Indonesia’s efforts to make its main port more efficient. We believe that, while some of the issues we address are technical, we find them fascinating and we should be able to explain them to any layperson willing to listen.