with research contributions from Zichao Wei
At conferences, in meetings, and even during casual work conversations, I am asked the same two questions: “Which countries are ideal for investments in infrastructure? Where should the investors invest and what new opportunities should they look toward?”
While sitting in the World Bank gives us a bird’s-eye view of emerging markets and developing economies (EMDEs), it doesn’t offer the up-close-and-personal perspective that investors demand in order to answer these questions in a succinct way. Not that there’s any shortage of synoptic responses. Any number of “market gurus” can assess projects in a second, gathering all the low hanging fruits which are out there in EMDEs. If there is a private deal to be made, then the deal is already done.
with research contributions from Zichao Wei
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.
So-called ‘emerging markets’ might as well be styles of frocks and blouses in the world of haute couture; they are in and out of fashion with similar unpredictability. One moment a market is all the rage; the next moment it is in the pits of despond. It is an all too familiar if sorry tale. You know that an emerging market is in fashion via the global business press, especially when reporters, pundits, analysts as well as paid boosters and carnival barkers, all produce pieces on the market displaying breathless admiration: What a wonderful place to be this is! What astonishing prospects!
If the emerging market is particularly blessed it will feature in one of the fancy acronyms of the day: BRICS, MINTS, the Breakout Nations, etc. Investment bankers are proving fecund when it comes to dreaming up these meaningless acronyms (if they did not have such real-world consequences!). For once an emerging market is deemed ‘hot’, money flows into it. Investors and hustlers pile in. People who express doubt, urge caution or circumspection are drowned out by the frenzy of adoration and boosterism.
Eventually, inconvenient facts that are too significant to ignore begin to emerge regarding the much-fancied emerging market.
A simple solution for better economic performance - empower women
Christine Lagarde, the managing director of the International Monetary Fund and one of the world's most influential women, made an interesting remark last weekend. "We have estimates that, if the number of female workers were to increase to the same level as the number of men, GDP in the United States would expand by 5 per cent, by 9 per cent in Japan, and by 27 per cent in India," she told the inaugural summit of the Women's 20 (W-20), a new grouping launched by the G20, in Turkey. She said that aside from boosting gross domestic product, getting more women into secure and well-paid jobs raises overall per-capita income.
Dealing with digital in media development —7 things to consider
Deutsche Welle Akademie
When colleagues from DW Akademie asked me to contribute some reflections on media development, I found myself in the difficult position of having to find a common ground for the term. Between regular Facebook updates sent by a friend working with a local radio station in Southern Sudan, a conversation I had here in Malmö/Sweden with a recently arrived Syrian refugee who used to work for state television, or the daily discussions about media, globalization and development that we have in our academic environment, it is difficult to find common ground. But then again, when all these impressions and reflections sink in, some broader issues emerge. I have summarized them under the following seven points:
These are some of the views and reports relevant to our readers that caught our attention this week.
What Future For Emerging Markets?
Long before the current market debacle, I was confronted with a fundamental question about emerging markets. As I was finishing off my course at the Yale School of Management on “The Future of Global Finance” this past May, a student came up to me. “You have gone to great lengths to emphasize the role of emerging markets in a changing monetary system, “ he said, “ but everything I have been reading says that the era of the Brazils, the Indias, the Turkeys, the Indonesias as up-and-comers is history. Even China seems to have lost its luster. Have you been looking backwards and not forward?”
How Africa can benefit from the data revolution
The UN has estimated that across the world more people have access to mobile phones than to toilets. It is of course distressing to imagine what this means for many people’s exposure to disease and access to clean water, but the choice of mobile phone for the comparative statistic actually offers a great deal of hope. The mobile phone is part of a phenomenon where a new infrastructure is emerging, one that could bring the economic changes that enable those toilets to be built. Our modern infrastructure is based on information. Since the 1950s, investment in data storage and distribution by companies and countries has been massive. Historically, data was centralised a single database. Perhaps one for representing the health of a nation, and another database for monitoring social security. However, the advent of the internet is showing that many of our existing data systems are no longer fit for purpose.
Emerging market multinationals (EMMs) have become increasingly salient players in global markets. In 2013, one out of every three dollars invested abroad originated from multinationals in emerging economies.
Up until now, we have had a limited understanding of the characteristics, motivations, and strategies of these firms. Why do EMMs decide to invest abroad? In which markets do they concentrate their investments and why? And how do their strategies and needs compare to those of traditional multinationals from developed countries?
In a book we will launch tomorrow at the World Bank, “New Voices in Investment,” we address these questions using a World Bank and UNIDO-funded survey of 713 firms from four emerging economies: Brazil, India, Korea, and South Africa.
- Emerging Markets
- Emerging Economies
- cross-border investment
- foreign direct investment
- Public Sector and Governance
- Private Sector Development
- Law and Regulation
- Global Economy
- Financial Sector
- The World Region
- South Asia
- Middle East and North Africa
- Latin America & Caribbean
- Europe and Central Asia
- East Asia and Pacific
For many people, "the cloud" is a nebulous term, but it simply refers to software and services that operate on the Internet instead of directly on a computer. Dropbox, Netflix, Flickr, Google Drive, and Microsoft Office 365 (a/k/a Outlook) are all cloud services-- they do not need to be installed on a computer.
According to a report by Gartner, one third of digital data will be in the cloud by 2016. Cloud computing is an attractive option for many entrepreneurs, businesses, and governments in developing countries that seek to service large populations but which require an alternative to heavy ICT infrastructure. Moreover, as mobile apps and PC software are increasingly tied to the cloud, its adoption is likely to increase.
International trade has undergone a radical transformation in the past decades as production processes have fragmented along cross-border value chains. The Brazilian economy has remained on the fringes of this production revolution, maintaining a very high density of local supply chains. This article calls attention to the rising opportunity costs incurred by such option taken by the country.
Moving Tectonic Plates under the Global Economic Geography
In recent decades, international trade has gone through a revolution, with the wide extension of the organization of production in the form of cross-border value chains. This extension was a result of the reduction of tariff and non-tariff barriers, the incorporation of large swaths of workers in the global market economy in Asia and Central Europe, and technological innovations that allowed modularization and geographic distribution of production stages in a growing universe of activities. International trade has grown faster than world GDP and, within the former, the sales of intermediate products has risen faster than the sale of final goods.