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How to Reverse the Post-Crisis Slowdown of Growth in Emerging Economies?

Aristomene Varoudakis's picture
Growth in emerging economies has slowed over the past three years, something being discussed with urgency at the G20 meetings in Istanbul, Turkey. Part of the slowdown is cyclical, but a significant part reflects sluggish potential growth. Using new empirical evidence, this column argues that ambitious structural reforms can fully offset the slowdown of potential growth in emerging economies. Reforms that remove barriers to open markets and improve access to finance play a key role in revitalizing total factor productivity growth and boosting private investment.

Friday Round up: Basu on big trends in development economics, Pritchett skewers aid, Krozer on inequality, legal identity as development goal

LTD Editors's picture
In a discussion hosted by Ideas for India, titled ‘Big and small ideas in development economics: Theory, evidence and practice,’ Kaushik Basu says some of the extreme thinking in the economics profession that was ideologically rooted without having enough grounds has become very weak.

Latin American Corporate Finance: Is There a Dark Corner?

Otaviano Canuto's picture

Since last year there has been much talk of possible financial stress stemming from increased debt leverage in non-financial corporates of emerging markets economies. A recent study has brought to light some key evidence on the Latin American case (Bastos et al, 2015).

EME non-financial corporate debt has been on the rise 

Back in 2013, I called attention to new features of international long-term private debt finance in developing countries that arose since the global financial crisis. While global cross-border bank lending with maturities at or beyond five years slowed down after 2008, bond issues have more than filled the void, explaining a rise in total flows since then. While banks in advanced economies – especially in Europe – were deleveraging, unconventional monetary policies and hype about emerging and frontier markets comprised a favorable backdrop for a massive surge in the latter’s bond issuance (Chart 1).
 

How the Business Community Can Help Fight Corruption

Kaushik Basu's picture

This blog appeared originally in The Times of India

The control of corruption is commonly treated as the responsibility of government. The presumption is that people, firms and corporations will be what they are. So if corruption flourishes in a country, it reflects a failure of government. In informal discussions in the bazaar and angry public forums, the demands are invariably for greater honesty among government servants, tougher laws, and better enforcement. The public outrage against corruption is understandable for corruption is among the biggest obstacles to economic development. At the same time, the solutions offered in popular discourses are often naïve. 

Estimating the Economic Cost of Ebola

Mark Roland Thomas's picture
Recent news of declining numbers of new Ebola cases in Guinea, Liberia, and Sierra Leone suggest encouraging progress toward ending the epidemic. The human cost has been tragic and until we reach zero cases the threat to human lives remains the main risk and so the public health response must remain our focus. Yet, as Guinea, Liberia, and Sierra Leone glimpse – we hope – light at the end of the tunnel, thoughts also need to turn to their needs for reconstruction and development.

Mind, Society, and Behavior – and Financial Inclusion

Douglas Randall's picture

This is an except from a post that appeared originally on The World Bank Group's 'Private Sector Development' blog.

Like many World Bankers, I took some time recently to look through the newly released 2015 World Development Report “Mind, Society, and Behavior.” From my perspective, in the Finance and Markets Global Practice, one thing jumped out immediately: The report is packed with insights that are directly relevant to our work on financial inclusion.

Chicken parties and other ways the poorest people raise money

Leora Klapper's picture

From Ghanaians who pay others to take their cash away to Peruvians who invite friends round for chicken, a World Bank survey reveals unusual ways to save.  This is an except from a post that appeared originally on The Guardian's 'Global Development Professionals Network' blog.

It was a pretty dry question: “Imagine that you have an emergency and you need to pay £1,300. How possible is it that you could come up with £1,300 within the next month? Is it very possible, somewhat possible, not very possible, or not at all possible? Would you use a credit card, dip into your savings, or ask your employer, friends or family for help?”

For a year and a half, we’d been using our questionnaire to measure how people manage their money around the world: Bangladesh, the Dominican Republic, Ghana, India, Indonesia, Kenya, Paraguay, Peru, Philippines, Sri Lanka, and Tanzania. The answers were useful, and we were building up a fascinating global picture . . .

What did Firms in Madagascar Experience?

Joshua Wimpey's picture
The goal of the Enterprise Surveys (ES) is to evaluate the quality of the business environment in the economy by asking a set of questions that capture both the experiences and perceptions of firms. This provides much needed information given how little is known about what businesses experience in developing economies. Below we provide highlights of the recently released data for Madagascar.  

Friday round up: Basu op ed, Grading the Gates' annual letter, the most powerful new tool in the history of social activism, study of solar lanterns, 6 new studies by JPAL and IPA on microcredit

LTD Editors's picture
The State of Global Poverty’ is the title of a Project Syndicate commentary by Kaushik Basu. As opinion leaders and heads of state convene in Davos, Basu reflects on the world’s rapidly changing economic geography and what it will take to get extreme poverty virtually to zero by 2030.

Fiscal Policy: Cycle and Space Matter

Otaviano Canuto's picture

I am among those economists who have argued that expansive fiscal policy has been missing as a lever to support recovery in advanced economies, especially in the Eurozone – see here and here

At the same time, I have cast doubts on recent attempts of using it to prop up growth in some emerging markets – see here and here in the case of Brazil. 

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