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developing countries

Peer Pressure: Tax competition and developing economies

Michael Keen's picture
A race to the bottom. Graphic by Nicholas Nam/World Bank

Economists tend to agree on the importance of competition for a sound market economy. So what’s the problem when it comes to governments competing to attract investors through the tax treatment they provide? The trouble is that by competing with one another and eroding each other’s revenues, countries end up having to rely on other—typically more distortive—sources of financing or reduce much-needed public spending, or both.

All this has serious implications for developing countries because they are especially reliant on the corporate income tax for revenues. The risk that tax competition will pressure them into tax policies that endanger this key revenue source is therefore particularly worrisome.

The world’s refugee crisis needs both a humanitarian and longer-term response

Jim Yong Kim's picture
Denham and his family have been refugees living in this tent for the last four years. © Dominic Chavez/World Bank


The world's greatest risks can't be confined within borders. This is clearly the case with the ongoing refugee crisis, which is unprecedented in scale and affecting people and places far from the scene of civil war, fragility and conflict. The UK vote to leave the European Union showed, in part, the volatility and reach of the impact of forced displacement.

SMEs finance leapfrogs through fintech innovations

Gloria M. Grandolini's picture



Since more than 50% of small and medium-sized businesses (SMEs) worldwide lack adequate access to credit, the international community is proposing reforms that will help countries strengthen their financial infrastructure and make it easier for SMEs to borrow funds needed to operate and expand.

A peek at the media coverage of SDGs: What is it telling us?

Mauricio Ríos's picture

Pope Arrives in General Assembly Hall for His AddressThe United Nations General Assembly recently adopted the Sustainable Development Goals (SDGs) in New York in the midst of great expectation and hype. The 17 SDGs, with 169 specific targets, are now becoming the road map for governments and the international development community for the next 15 years.

Now that all the publicity and excitement are starting to settle down, it seems opportune to look at the media coverage of the SDGs and developing countries to get a sense of how that coverage has played out over the past few weeks, and what some of the insights are that we can learn from for the way forward. This coverage mainly includes articles from various publications, websites, and blog posts in the English language. It does not include social media statistics from Tweeter or Facebook.  

An analysis of this media coverage featuring the key words “SDGs” and “developing countries” show that, over the past three months, more than 2,400 articles mentioned these two key words somewhere in the text of the articles. The analysis, using the Newsplus database, covers the period July 8-October 8. It shows that almost a quarter of that coverage (more than 600 entries) took place during the last week of September when the UN meetings were held. However, the second week of July, right before the summer break, was also active in terms of SDG-related coverage, signaling an important communications effort in the lead up to the UN September meetings.

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Mobile connectivity in Africa has already arrived

Borko Handjiski's picture

What is the main difference between high-income and developing countries?

Here is my take: People in the former have much more of pretty much everything. Almost everyone living in high-income countries has access to electricity; in poor (low-income) countries, 7 out of 10 people don’t. Most families in rich countries own a car, but only a few people living in the developing world do. On per capita basis, rich economies have 15 times more doctors than poor countries, consume 40 times more energy, have 50 times more ATMs, and so on.

Lucky Countries Or Lucky People: Will East Africans Benefit From Their Natural Resource Discoveries?

Borko Handjiski's picture

Luck has struck the region of East Africa: for a couple of years now, new announcements of natural resource discoveries are being made every few months. Mozambique has found some of the largest natural gas deposits in the world, while Tanzania, Uganda, and Kenya have also discovered gas and oil. Exploration is still ongoing, so even more discoveries could be forthcoming. Luck has definitely struck the region, but the main question is: how will the people in these countries benefit from this?

Collier–Sandefur Debate on Migration – What is the Question Please?

Christian Eigen-Zucchi's picture

Paul Collier and Justin Sandefur are discussing migration with recent postings on the popular From Poverty to Power blog hosted by Duncan Green of OXFAM.  But, can we please first agree on the question?

Collier’s blog-post starts with the question of how emigration affects people in countries of origin, and goes on to emphasize that the pertinent issue is “whether poor countries would be better off with somewhat faster, or somewhat slower emigration than they have currently.” His answer, in a nutshell, is that it depends: on the country of origin (“in small countries that are falling further behind … brain drain predominates” when there is further skilled migration) and the emigrant (students – good, unskilled – fine, skilled worker – may already be excessive). To this, one could also add that it depends on the host country (and the scope for migrants realizing their potential there) and the circumstances of the migration (voluntary or forced).

Global investment patterns will see radical changes by 2030

Jamus Lim's picture

In an earlier post, we highlighted a feature of the global pattern of investment in recent times: that since 2000, developing countries have gradually increased their share of global investment, moving from around 20 percent through much of the second half of the last century, to around 46 percent by 2010. The rapidity of this rise notwithstanding, the natural question is whether this trend will continue into the future.

Answering this question---on changing patterns of global investment---is one of the main concerns of the most recent edition of the Global Development Horizons report, entitled Capital for the Future. In order to frame the question, the report considers how different countries will distinguish themselves in the global economy and, consequently, how by doing so they will provide investment opportunities that would attract financing from the pool of global saving.


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