So far, 2016 has been a year filled with challenges and uncertainties. Global economic growth is weak, commodity prices remain low, and international trade isn’t picking up. In fact, voters around the world are questioning long-held beliefs in open markets, and populists are exploiting their fears by suggesting divisive policies and promising easy solutions to complex issues. Against this backdrop, it would seem that staying afloat is already a remarkable feat by any country.
But to make progress in the fight against poverty and to reactivate economic activity to provide opportunities for all, countries have to do much more. They have to tackle necessary and sometimes difficult reforms, deal with tradeoffs, but most of all, they need to stay focused on what is good for most people in the long-term.
Panama, already projected to be Latin America’s fastest-growing economy over the next five years, was the big winner when the expanded canal opened its locks on June 26. New port projects and related logistics hubs are in the works to attract global manufacturers and further enhance the country’s competitiveness.
We are living in a world where the largest corporations are larger and the richest entrepreneurs are richer than ever before – and an increasing number of billionaires are based in emerging countries. Who are these tycoons and how important are they to their economies?
A new book by Caroline Freund aims to answer these questions by examining the characteristics and impact of 700 emerging-market billionaires whose net worth adds up to more than $2 trillion.
Rich People, Poor Countries: The Rise of Emerging-Market Tycoons and Their Mega Firms finds that very large firms are export superstars in their home countries.
In the United States the top 1% of firms account for 80% of exports. In emerging countries, the top 1% account for 50% of exports but that figure is rising rapidly, Freund said at a book launch at the World Bank’s Infoshop on March 23.
The trend has largely benefited developing countries, which for the first time last year received more tourists than the developed world. At the World Bank, we believe that tourism, when done right, can provide our clients with a unique chance to grow their economies, bolster inclusion, and protect their environmental and cultural assets.
In this video, Lead Urban Specialist Ahmed Eiweida tells us more about the potential of sustainable tourism, and explains the Bank’s role in helping low and middle-income countries make the most of the international travel boom.
The economic slowdown in Latin America and the Caribbean is putting pressure on workers and wages and forcing some people out of the labor force, according to a new report released during a live-streamed event of the same name, “Jobs, Wages, and the Latin American Slowdown,” in the lead-up to the World Bank Group-IMF Annual Meetings in Peru.
“A lot of women joined the labor force in the good times. Now, in the slowdown, people are exiting the labor force — men and youth with little education. This is good news if they’re going to university, but bad if they’re going to live with their parents and be idle,” said Augusto de la Torre, the World Bank’s chief economist for Latin America and the Caribbean.
Moreover, the “exit of youth from the labor force will affect poor families more than wealthier ones – inequality could become greater,” said de la Torre.
It is now a commonplace to refer to the 21st century as the Asian Century. With the world economy struggling to recover from the global financial crisis, the Asia Pacific region, and especially its developing countries, has provided much of the impetus for global growth. In 2015, developing countries in the East Asia Pacific region are likely to account for over one-third of global growth — twice as much as the rest of the developing world. China in particular is now an economic powerhouse. By some measures China is now the world’s largest economy as well as the biggest global manufacturer and exporter.
With this economic success has come increased scrutiny of the region. The rest of the world now wants to know: who sets the rules of the game in Asia?
Lower oil prices are a boon for oil importers around the world. But how well are oil-producing countries adapting to the apparent end of a decades-long “commodity supercycle” and lower revenues? And what does this mean for the global economy?
World Bank economists provided insights on the situation in six developing regions at a webcast event April 15 ahead of the World Bank Group-IMF Spring Meetings. The discussion focused on the challenge of creating sustainable global growth in an environment of slowing growth.
World Bank Chief Economist Kaushik Basu said the global economy is growing at 2.9% and is “in a state of calm, but a slightly threatening kind of calm. … Just beneath the surface, there’s a lot happening, and that leads to some disquiet, concern – and the possibilities of a major turnaround and improvement.”
All eyes turned to Russia recently, when on 16 December the ruble plunged by more than 11 percent, despite the Central Bank of Russia’s last-minute interest rate hike of 6.5 percentage points to 17 percent. When it looked like Russia’s turmoil might spread to global markets, western economies sat up and paid close attention.
What may have gone unnoticed, however, is the ongoing impact on our client countries in the Europe and Central Asia region.
Take a look back at some of the most popular stories you may have missed in 2014:
1. Raising More Fish to Meet Rising Demand
- natural capital
- food security
- Climate Change
- Agriculture and Rural Development
- The World Region
- South Asia
- Latin America & Caribbean
- East Asia and Pacific
Foreign access rarely receives good press. Although over half of the world’s exclusive economic zones are subject to some form of foreign fishing arrangement, there is a perception that industrialized nations are "giving with one hand while taking away with the other." Criticism abounds regarding the role that foreign fleets play in overexploiting coastal state fish stocks, in engaging in illegal and unreported activity, in contributing to conflicts with small-scale fisheries and in generally undermining domestic fishing interests in vulnerable developing economies.