The New ICP Data and the Global Economic Landscape
The new report of the International Comparison Program published last week promises to invigorate debate about the global economic landscape. In some areas, the report challenges conventional wisdom. In other areas, it reinforces the narrative.
The headline change according to The Economist is the rise of China to potentially become the largest economy in the world by the end of 2014. According to Angus Maddison, the United States’ economy became the largest in the world in 1872, and has remained the largest ever since. The new estimates suggest that China’s economy was less than 14% smaller than that of the US in 2011. Given that the Chinese economy is growing more than 5 percentage points faster than the US (7 percent versus 2 percent), it should overtake the US this year. This is considerably earlier than what most analysts had forecast. It will mark the first time in history that the largest economy in the world ranks so poorly in per capita terms. (China stands at a mere 99th place on this ranking.)
Korea, Republic of
The New ICP Data and the Global Economic Landscape
When the Organization for Economic Cooperation and Development (OECD) launched the results from the most recent assessment of mathematics, reading, and science competencies of 15 year-olds (the Program for international Student Assessment, PISA) last December, it held encouraging news for the European Union’s newest members. Estonia, Poland, Slovenia, and the Czech Republic scored above the OECD average and ahead of many richer European Union neighbors. Compared to previous assessments, the 2012 scores of most countries in Central Europe and the Baltics were up (as they were in Turkey, as Wiseman et al highlighted in this blog recently). Improvements were particularly marked in Bulgaria and Romania, traditionally the weakest PISA achievers in the EU, as well as well-performing Poland and Estonia. Only Slovakia and Hungary saw declines (see chart with PISA mathematics scores).
SEOUL, Republic of Korea — I was born in this country in 1959, a time when the per capita income was not much more than $100. Today, Korea's gross national income is roughly $23,000 per person. Everywhere I travel in the developing world, leaders ask me, how did Korea lift itself out of such dire straits? One of the reasons is that many Koreans are never satisfied with success; they always seek improvement. Watch this blog to learn more.
A recent EASIN Urban, Transport and DRM Community of Practice (CoP) meeting I attended in Seoul, South Korea was an eye opener in terms of the rapid urban development of the city of Seoul. Considered an East Asian tiger, manufacturing and an export-led economy have made Seoul a global city with neon skylines and the new focus of Asia’s technology boom. A presentation by Seoul Metropolitan Government (SMG), the agency responsible for the city’s urban planning, describes the city as a ‘strategic space for people to reside in since ancient times’. Nevertheless, the city and its urban identity have gone through various transformations – through the Japanese occupation (1910-1945) to restoration after the Korean war (1950-53) to industrialization (1960s-1970s) to development and globalization. In SMG’s words, Seoul is witnessing the ‘environmental and historical awakening as a world city’. Evidence of this was seen in sites I visited to the restored Cheonggyecheon stream and a former landfill converted to Haneul Park.
Given confusion around the phrase “science of delivery,” it’s important to state that delivery science is not a “one-size-fits-all” prescription based on the premise that what works somewhere can work anywhere. And it does not profess that research and evidence ensure a certain outcome.
A few weeks ago, the World Bank and the Korea Development Institute convened a global conference on the science of delivery. Several development institutions assembled including the Gates Foundation, the Grameen Foundation, UNICEF, the Dartmouth Center for Health Care Delivery Science, and the mHealth Alliance. We discussed development opportunities and challenges when focusing on the extremely poor, including experiments in health care, how technology is reducing costs and increasing effectiveness, and the difficulty of moving from successful pilots to delivery at scale.
The consensus in Seoul was that a science of delivery underscores the importance of a data-driven and rigorous process to understand what works, under what conditions, why, and how. Too often in international development, we jump to conclusions without understanding counterfactuals and assume we can replicate success without understanding its constituent elements.
- Korea, Republic of
- Climate Change
- Labor and Social Protection
- Private Sector Development
- Science of Delivery
- world bank
- Korea Development Institute
- The Gates Foundation
- Grameen Foundation
- Dartmouth Center for Health Care Delivery Science
- mHealth Alliance
- health care
- World Bank Institute
A recently released Open Budget Survey conducted by the International Budget Partnership (IBP) ranked the Republic of Korea as the top performer in public participation in the budget process. With a score of 92, Korea rose to the top as the only country “that provides extensive opportunities for public participation” (IBP 2012). Of 100 countries surveyed, the average score for public participation in the budget process was 19 out of 100. IBP found that in many countries there are limited, if any, opportunities provided to the public for engagement in the budget process. So what is it about Korea that makes it an exception?
- public participation
- budget process
- medium-term expenditure framework
- public financial reporting
- Public Financial Management
- Public Sector and Governance
- East Asia and Pacific
- Korea, Republic of
- Fiscal transparency
- open government & transparency
- performance drivers
- Governance & Public Sector Management
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China’s prospects stirred interest as the BRICs met in South Africa and a new survey by the Organization for Economic Co-operation and Development found China on course to become the world’s largest economy by 2016. The OECD study says China has “weathered the global economic and financial crisis of the past five years better than virtually any OECD country” and should be able to continue catching up and improving living standards over the next decade. While the OECD study says China needs to shift to more environmentally friendly modes of consumption and production, a new Climate Institute/GE Low-Carbon Competitiveness Index finds that France, Japan, China, South Korea and the United Kingdom are “currently best positioned to prosper in the global low-carbon economy.”
Financial Markets… The euro rose to a six-week high against the dollar, appreciating to $1.3077, and Europe’s benchmark stock index (Stoxx Europe 600) gained for a second day, as growing optimism over a successful Greek buyback program boosted investor sentiment. Greece started the €10 billion ($13 billion) repurchase of government bonds maturing between 2023 and 2042 on Monday.
Almost 20 years ago, the World Bank released a groundbreaking report – The East Asian Miracle – that called worldwide attention to the economic success of eight economies in the region, leading to a discussion on the extent to which policies followed by them could be replicated.