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February 2014

The Global Economy Without Steroids

Sri Mulyani Indrawati's picture
Economic growth is back. Not only are the United States, Europe, and Japan finally expanding at the same time, but developing countries are also regaining strength. As a result, world GDP will rise by 3.2% this year, up from 2.4% in 2013 – meaning that 2014 may well be the year when the global economy turns the corner. The fact that advanced economies are bouncing back is good news for everyone.

Swiss Pass the Referendum “Stop Mass Immigration”

Hanspeter Wyss's picture

After a bitterly contested campaign a small majority of 50.3 percent of Swiss voters have passed the referendum “Stop Mass Immigration”  reintroducing quotas on immigration from EU countries. This vote on February 9 mobilized 56 percent of Swiss voters, which was one of the highest turnouts for the last 40 years. 

The referendum was expected to be close. That it has passed, however, is a surprise because the Swiss government as well as most business actors and political parties, except the national-conservative right wing Swiss People Party which launched the referendum, were campaigning against it. It is hard to generalize the reasons that explain the result of this vote, especially as there were significant geographical disparities in voting behavior across Switzerland (see map).  French-speaking areas against the referendum, German-speaking regions divided, and the only Italian-speaking canton firmly in favor of it.  And the cantons with the largest cities (Zurich, Geneva, and Basel) were all against the quotas.

What is the role of universities in global development?

Michael Crow's picture

In my career as an educator, social scientist and university president, I have worked primarily as an organizational designer and architect. And in doing so, I have been fortunate to have the opportunity to study how universities and other organizations are structured, how decisions related to their design can shape their visions and accomplishments, and how organizations can work together as partners to achieve more than they could alone.
It is my belief that, as the pace and complexity of our global society increases exponentially, there is an urgent need to realign the design and infrastructure of education with the needs of the people our educational systems are intended to serve. While universities have long been vital and powerful drivers of global innovation and economic development, they must now be willing to break free from outmoded paradigms if they hope to continue achieving meaningful progress.  

Art of Service Delivery: Learning from Faith-inspired Health Care Providers

Quentin Wodon's picture

In this clinic we are accommodated well and treated respectfully… We have the opportunity to converse with the health worker, describing the illness, and when we are mistaken or do not understand, we are not threatened. They help us locate the pain and they explain everything about the disease and how to treat it. They encourage us to speak and they try to give us confidence. –Patient in Burkina Faso

Kenya Soil Carbon Project Points to the Future

Neeta Hooda's picture

 Curt Carnemark/World Bank

A few weeks ago, we passed a big milestone in the World Bank Group’s climate change and development work. For the first time, small-scale farmers earned carbon credits from an agricultural land management project.

The project in western Kenya kicked off what will surely be many more soil carbon projects in coming years. It also shows how sustainable farming (such as increased mulching and less tilling) can be part of the global effort to reduce greenhouse gas emissions – while improving livelihoods for poor, rural families.

The soil carbon project, made possible by an accounting system for low-carbon farming approved in 2011, took several years to prepare and implement. I had the fortune to be right there, working with farmers on the ground in Kenya and trying to understand their reality.

Islamic Finance: A Quest for Publically Available Bank-level Data

Amin Mohseni-Cheraghlou's picture

Attend a seminar or read a report on Islamic finance and chances are you will come across a figure between $1 trillion and $1.6 trillion, referring to the estimated size of the global Islamic assets. While these aggregate global figures are frequently mentioned, publically available bank-level data have been much harder to come by.

Considering the rapid growth of Islamic finance, its growing popularity in both Muslim and non-Muslim countries, and its emerging role in global financial industry, especially after the recent global financial crisis, it is imperative to have up-to-date and reliable bank-level data on  Islamic financial institutions from around the globe.

To date, there is a surprising lack of publically available, consistent and up-to-date data on the size of Islamic assets on a bank-by-bank basis. In fairness, some subscription-based datasets, such Bureau Van Dijk’s Bankscope, do include annual financial data on some of the world’s leading Islamic financial institutions. Bank-level data are also compiled by The Banker’s Top Islamic Financial Institutions Report and Ernst & Young’s World Islamic Banking Competitiveness Report, but these are not publically available and require subscription premiums, making it difficult for many researchers and experts to access. As a result, data on Islamic financial institutions are associated with some level of opaqueness, creating obstacles and challenges for empirical research on Islamic finance.

India: From BRICS to Fragile ‘n’ (and Back!)

Poonam Gupta's picture

India has covered a long distance in what seems like a short time. Once proudly reckoned as one of the BRICS countries, it is now making frequent headlines in the international financial press as one of the financially fragile countries (fragile 5, fragile 8, edgy eight etc.). Like many other emerging markets in the world, India is feeling the pinch of the global liquidity retrenchment and rebalancing on its exchange rate and capital flows.  Several observers have rationalized the investors’ behavior on account of the hard data on the Indian economy: growth has decelerated (from 8.9 % two years ago to 4.5 percent in fiscal year 2013), current account deficit is reigning high, inflation remains stubbornly high, and savings and investment rates have been falling. And all of this is happening amidst an upcoming national election, when elections anywhere invariably are associated with political and economic uncertainty.

What would it take for India to regain its place in a more revered acronym soon, rather than a less flattering fragile ‘n’ ensemble?