Syndicate content

Financial Sector

Can Africa trade with Africa?

Obiageli Ezekwesili's picture

Obiageli Ezekwesili chairs the seminar: Can Africa Trade with Africa? (Photo: Arne Hoel, The World Bank)

I chaired a very lively seminar on Friday afternoon that focused on the question, “Can Africa Trade with Africa?”  The answer was a resounding yes. 

Today, there is strong consensus among African leaders that regional integration is indispensable to unlock economies of scale and sharpen competitiveness. And promoting intra-African trade has emerged as a top priority, in recognition that the African market of one billion consumers can be a powerful engine for growth and employment.

Yet despite the introduction of free trade areas, customs unions, and common markets within the Region, the level of intra-African trade remains among the lowest in the world -- only about 10% of African trade is within the continent, compared to about 40% in North America and about 60% in Western Europe.

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.

How Strong is LAC’s China Connection?

Carlos Molina's picture

Authors: Emily Sinnott & John Nash

 

For Latin American and the Caribbean (LAC), there has been a substantial shift from exporting commodities to advanced economies to trading instead with emerging economies. China, in particular, has become an important destination market, with its share of commodity exports having grown tenfold since 1990 (from 0.8 percent in 1990 to 10 percent of total commodity exports in 2008).

 

Click to enlarge

In our report on “Natural Resources in Latin America and the Caribbean: Beyond Booms and Busts?” we argue that one advantage of these changing trade patterns has been the important role that China’s demand for commodities played in the region’s economic rebound from the global crisis. While we are not alone in this view (see the CEPAL report on the drivers of the LAC recovery launched on September 2, 2010), there has been some anxiety in LAC that the region is going down the path of increased dependence on exports of raw materials with little value-added, while at the same time increasing its reliance on manufacturing imports from China.

From Collapse to Recovery: Latin America and Caribbean rebound from crisis

Carlos Molina's picture

With the global economic crisis in the rearview mirror, Latin American economies are on a fast track to full recovery and will post a solid 4 percent growth for 2010.

This is no small feat, says the Bank’s chief regional economist Augusto de la Torre, in his new report on the region’s economic prospects ‘From Collapse to Recovery’ (pdf). The region’s rebound, he explains, is one of the world’s strongest, second only to Asia’s, which is the main engine pushing global economies towards a full-fledged recovery.

Global crisis hits home in emerging Europe and Central Asia

Angie Gentile's picture

Young Roma man in Biala Slatina, Bulgaria. Photo: Scott Wallace / World Bank The global economic crisis has reversed the impressive economic growth of recent years in emerging Europe and Central Asia, hitting families hard with higher unemployment and lost wages.

Growth has plummeted from a fast clip of 7.6 percent in 2007 to 4.7 percent in 2008, and is projected at negative 5.6 percent in 2009, the World Bank said at an Annual Meetings press briefing yesterday.

“The global financial and economic crisis has literally hit home in many parts of Emerging Europe and Central Asia,” said Philippe Le Houérou, World Bank Vice-President for Europe and Central Asia.

“What started as a financial crisis has become a social and human crisis. Just as banks were under stress, families are now the ones under severe stress as they see breadwinners lose their jobs and have trouble paying their bills.”

 

 

Taking the temperature of the financial world

James Bond's picture

Global attention is mounting about this year's Annual Meetings of the Bank and the Fund in Turkey. From Egypt, where I am on MIGA business on my way to Turkey, the discussion is around whether the meetings will advance the G20 communiqué in terms of substance and specific implementation measures.

Traffic in Instanbul, Turkey. Photo: Simone D. McCourtie / World Bank I spent two days earlier in the week with global private equity investors. Their anxiety mostly revolves around how financial sector regulation will evolve over the coming months. They feel the cold wind of oversight, and the discussion revolves around two competing plans for financial regulation, one emanating from Brussels and the other from Washington. But everyone accepts that an overhaul of financial sector regulation is the unfinished business from last year's financial crisis, even though views differ on the extent and content of the changes needed. My own concerns are whether the world's piecemeal international governance system will enable a coherent global regulatory structure to emerge from the wreckage of last year's financial meltdown.

In Istanbul I'm looking forward to taking the temperature of the financial world. I hope and expect the meetings to be more subdued than in past years, because we have some serious business to do; and many players who were around at the Singapore meetings are no longer with us (Lehman, Bear Stearns, Merrill, AIG...).

It's a new world.

Latin American performed better than other regions in crisis

Augusto de la Torre's picture

In the lead-up to the World Bank-IMF Annual Meetings, the Latin America and Caribbean Region VPU of the World Bank is co-hosting and attending the Americas Conference.

The Latin American region is exiting financial crisis on a strong footing.

Americas conference raises region’s expectations about its future

Carlos Molina's picture

In the lead-up to the World Bank-IMF Annual Meetings, the Latin America and Caribbean Region VPU of the World Bank is co-hosting and attending the Americas Conference.

Government and business leaders attending the Americas Conference went home Wednesday with a renewed sense of accomplishment after devoting two intense days to tackling an ambitious yet urgent agenda for the region’s future.

The grand rooms of the historic Biltmore Hotel in Coral Gables still reverberate from the animated discussions that took place here amid the lush settings of Miami’s oldest city. These discussions will likely steer the debate on two of the most important issues facing the region: the global financial crisis and renewed threats to democracy in the region as embodied in the Honduran crisis.

Americas conference tackles Latin America's thorny Issues

Carlos Molina's picture

In the lead-up to the World Bank-IMF Annual Meetings, the Latin America and Caribbean Region VPU of the World Bank is co-hosting and attending the Americas Conference.

The Americas Conference got off to a good start today after addressing two of the most pressing issues facing the region: the impact of the financial crisis, that has engulfed Latin America for more than a year, and the political impasse that is rocking democracy in Honduras.

A group of World Bank experts told the meeting of Government and business leaders that Latin America is turning the corner vis-a-vis the financial crisis -one of the region’s worst-, as some countries were already showing signs of an early recovery.

Pages