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International cooperation, ethics and climate change

Augusto Lopez-Claros's picture

In pursuing meaningful sustainable development, and investing in conservation and redressing the environmental damage caused by decades of neglect, we need to better explore and understand the role of international cooperation and why human values and ethics are central to this debate.

International cooperation. A key ingredient for generating a sustainable development path will have to be a significant strengthening of the current mechanisms of international cooperation, which have turned out to be insufficient to meet the global challenges that we face. The process of globalization is unfolding in the absence of equivalent international institutions to support it and harness its potential for good.

A rebuttal to the “elephant graph” discussion - or “elephants are tough animals...”

Christoph Lakner's picture

Recently, a discussion erupted over our paper and the so-called “elephant graph”. This graph (reproduced below) is the anonymous growth incidence curve, which shows how each percentile of the global income distribution has grown between 1988 and 2008. The discussion was sparked by a report by the Resolution Foundation’s Adam Corlett. Whether or not this was Corlett’s intention, some commentators have used his results to (erroneously) claim that our empirical results are not robust and/or that the policy implications  drawn from our research are unwarranted  – for example, see this Financial Times article.

Is the declining pace of innovation lowering productivity & growth?

Vinaya Swaroop's picture

If you have been listening lately to Robert ‘Bob’ Gordon, an economics professor at Northwestern University, he will tell you that the days of great inventions are over. This in turn, has led to a significant slowdown in total factor productivity – a measure that economists use to measure innovation and technical progress. Falling productivity is one of the main reasons for growth shortfall in advanced economies like the United States.

Eager to know more about this seemingly worrisome and pessimistic thesis, which has attracted a lot of attention among economists and the media, we invited Gordon to give a talk at the World Bank.

The income of the world’s poor is going up, but they’re $1 trillion poorer. What’s going on?

Duncan Green's picture

Oxfam number cruncher Deborah Hardoon tries to get her head round something weird – according to the stats, the poorest half of the world is getting poorer even though the incomes of these people are rising.

It has become something of a tradition that in January every year we take a look at the Forbes list of billionaires and the Credit Suisse Global Wealth databook and calculate how many billionaires it takes to have the same amount of wealth as the bottom 50% of the planet. Since we started doing these calculations, we have watched the wealth of the top grow at the same time as the wealth of the bottom 50% has fallen. The data tells us that the bottom 50% have approximately $1 trillion (that’s $1,000 billion) less wealth than they did 5 years ago, whilst the richest 62 have about $0.5 trillion more.

The extremely wealthy are able to accumulate more wealth in a day than a whole factory full of workers could earn in a year. On 21stApril, in a 24 hour period, Carlos Slim made more than $400 million. Thomas Piketty famously points out that the rate of return on capital is higher than the general growth rate, such that capital owners are at a distinct economic advantage.

Meanwhile those 3.6 billion people in the bottom 50% include people in debt, people with nothing and people with a net wealth of up to about $5,000. People with little, no, or negative wealth, especially in developing countries with poor social insurance mechanisms (four out of five people in the bottom 50% live in Africa or Asia – including China and India), will not only find it hard to respond to financial shocks – like a poor harvest or a medical bill, but will also find it much harder to invest in their families’ future. Having little wealth may be concerning, but having less and less wealth year to year is even more worrying.

Kuznets Waves and the Great Epistemological Challenge to Inequality Analysis

Francisco Ferreira's picture
A couple weeks ago I was fortunate to serve as a discussant at one (of the many) launch events for Branko Milanovic’s latest book: Global Inequality: A new approach for the age of globalization. The book is hugely thought-provoking, and a pleasure to read. Along with many people in the audience, we had a great conversation. Over lunch afterwards, Branko urged me to put my thoughts into a blog – so here they are!

Innovative Africa for a better tomorrow

Teodoro De Jesus Xavier Poulson's picture
Despite a decade of strong growth, Sub-Saharan Africa still faces a number of social and economic challenges. These range from access to education, off-the-grid electricity, clean water, job creation and public infrastructure. While there is no silver bullet, one word is inspiring millions – innovation.
 

The knowledge capital imperative

Eric A. Hanushek's picture
Without quality education, there is little hope for countries to obtain the requisite long run growth.

Ed: This guest post is by Professor Eric A. Hanushek, a Paul and Jean Hanna Senior Fellow at the Hoover Institution of Stanford University. Join us online on January 28, 2016 to listen to Prof. Hanushek as he discusses his latest book “The Knowledge Capital of Nations”.
 
In September 2015, the United Nations adopted an aggressive development agenda that included 17 separate Sustainable Development Goals (SDGs) designed to guide investment and development over the next 15 years. Two of these assume particular importance because they will determine whether or not the other 15 can be achieved. 

Creating Quality Jobs for Cote d’Ivoire’s Future Generations

Jacques Morisset's picture
Although most Ivorians are employed, they struggle to find jobs that provide decent sustainable incomes. An average worker earns 120,000 FCFA or $200 per month, which is lower than the average in Sub-Saharan Africa.


Firmin gets by doing small odd jobs. One day he is a street vendor, the next day a carpenter, and on other days he’s a gardener. He arrived in Abidjan two years ago with high hopes of joining the National Police Academy. His story resembles that of thousands of Ivorians who join the domestic workforce each year. Today, there are about 14 million people of age to work in the country, and by 2025, there will be approximately 22 million - all of whom seek a secure well-paying job. 

Ethiopia’s growth miracle: What will it take to sustain it?

Lars Christian Moller's picture



If you are curious to know which country has achieved double digit growth in the last 12 years, making it the fourth fastest-growing in the world, the answer is Ethiopia. And what is more striking is that if Ethiopia sustains its current pace of growth, it will become a middle income country by 2025.

Sustaining structural reforms in Africa in good and tough times

Sudharshan Canagarajah's picture



The recently-published
Regional Economic Outlook for Sub-Saharan Africa (SSA) by the International Monetary Fund underscores the enduring view of  international financial institutions that the depth, pace and perfecting of structural reforms needs to continue, not only for competitiveness and growth but also for resilience should external headwinds emerge. The report also presents an important opportunity to further develop this agenda, by the additional treatment of the underlying causes, particularly non-price based ones, and thereby generate a more actionable view of the growth, competitiveness and equality trends so incisively presented in the report.


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