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Central African Republic

The Long-Stalled World Economy Shifts into Gear

Jim Yong Kim's picture



The global economy is finally emerging from the financial crisis. Worldwide, growth came in at an estimated 2.4 percent in 2013, and is expected to rise to 3.2 percent this year. This improvement is due in no small part to better performance by high-income countries. Advanced economies are expected to record 1.3 percent growth for the year just finished, and then expand by 2.2 percent in 2014. Meanwhile, developing countries will likely grow by 5.3 percent this year, an increase from estimated growth of 4.8 percent in 2013.

The world economy can be seen as a two-engine plane that was flying for close to six years on one engine: the developing world. Finally, another engine – high-income countries – has gone from stalled to shifting into gear. This turnaround, detailed in the World Bank’s Global Economic Prospects 2014 launched last Tuesday, means that developing countries no longer serve as the main engine driving the world economy. While the boom days of the mid-2000s may have passed, growth in the emerging world remains well above historical averages.

High-income countries continue to face significant challenges, but the outlook has brightened. Several advanced economies still have large deficits, but a number of them have adopted long-term strategies to bring them under control without choking off growth.

Why We Need to Count Elephants (and Other Natural Resources)

Julian Lee's picture
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Elephants with Mount Kilimanjaro in the distance. Curt Carnemark / World BankLate last year, ministers and delegates from some 30 countries met in Botswana to discuss how to fight the booming illegal trade in ivory that is decimating Africa’s elephant population.
 
CITES estimates that 22,000 elephants were killed in Central and East Africa in just the year 2012. Cameroon, the Democratic Republic of Congo, Gabon, Kenya, Tanzania, and Uganda are just a few of the countries affected by elephant poaching. The poached ivory is used for ornamental carvings that serve as status symbols, religious icons, and collector’s items for buyers across East Asia, Europe, and North America. This is not just a conservation issue. Wildlife crime is also a development and security challenge: It undermines government authority, breeds corruption, increases the supply of small arms, and destroys valuable natural resources. So the growing political attention wildlife crime is receiving – British Prime Minister David Cameron will host the next summit in February – is a welcome sign of high-level political commitment to address the crisis.

Still waiting for that new road to come your way?

Jan Walliser's picture

Anyone who has ever been to the Central African Republic (CAR) knows that the country has huge infrastructure needs after years of internal turmoil and strife. But when you look up how much of the government’s investment budget actually was implemented and financed infrastructure development in 2009 for instance, you find a stunningly low execution rate of 5 percent.

MDG Summit: Day 1 Wrap-Up

Julia Ross's picture

Mali. Photo: © Curt Carnemark / World Bank

MDG Summit participants were off and running yesterday, speaking, blogging, Tweeting and texting from the main U.N. campus and at several marquee side events nearby.

A high-level “Education for All” advocacy session—focused on MDG 2, to achieve universal primary education—got the ball rolling, with Queen Rania of Jordan and former UK Prime Minister Gordon Brown speaking out for universal access to quality schooling.