Syndicate content

The World Region

Which features of procurement systems increase competition and reduce corruption?

Steve Knack's picture

Public procurement of services, works and supplies is estimated to account for 15-20% of GDP in developing countries, and up to 50% or more of total government expenditure. Efficient and effective procurement is vital to core government functions, including public service delivery and provision of infrastructure. Weaknesses in procurement systems can lead to large-scale waste of public funds, reduced quality of services, corruption, and loss of trust in government.

Human development accounting

Youssouf Kiendrebeogo's picture

The rate of change in human development outcomes varies considerably across countries over long periods of time, as reflected in the two histograms below (Figure 1). For 78 countries in the period 1980-2014, the percentage decline in child mortality was 3.39% on average, with a standard deviation of 1.36%, a smallest rate of 0.89% (Central African Republic) and a highest rate of 8.07% (Maldives). The average percentage increase in school enrollment was 3.35%, with a standard deviation 3.54%, a minimum of 0.37% (Georgia) and a maximum of 19.68% (Maldives). Similar patterns of cross-country variation are found when using alternative proxies for health and education outcomes.

Should emerging markets worry about U.S. monetary policy announcements?

Poonam Gupta's picture

Emerging economies are routinely affected by monetary policy announcements in the US. This was starkly evident on May 22, 2013, when Federal Reserve Chairman Ben Bernanke first spoke of the possibility of the Fed tapering its security purchases. This “tapering talk” had a sharp negative impact on financial conditions in emerging markets in ensuing days—their exchange rates depreciated, bond spreads increased, and equity prices fell; so much so that some of the countries seemed on the verge of a full-fledged balance of payments crisis. The event helps explain why issues related to the spillover of US monetary policy have gained prominence in recent contributions to the literature and in policy discussions (Rajan, 2015).

How can teachers cultivate (or hinder) students’ socio-emotional skills?

Paula Villaseñor's picture
Also available in: Spanish

Socio-emotional skills are the new hot topic in education. Governments, ministers of education, policymakers, education experts, psychologists, economists, international organizations, and others have been captivated by these skills and their contribution to students’ academic and life outcomes. The goal seems clear, but the way to achieve results is not so obvious. Most of the literature focuses on the impact of socio-emotional skills on different outcomes, while much less illuminates the specific mechanisms through which teachers can boost students’ socio-emotional development. 

U.S. post-crisis trade weakness in 4 charts

Franziska Ohnsorge's picture
Trade growth has slowed sharply since the 2007-2009 financial crisis. An analysis of U.S. trade data shows that trade between unaffiliated firms (arm’s-length trade) – as opposed to trade between firms linked by control or ownership (intra-firm trade) – accounted for the lion’s share of this slowdown. Arm’s-length trade depends more heavily on sectors of the economy, such as textiles and apparel, that have languished since the crisis.

Rising debt and deficits in Emerging Market and Developing Economies (EMDEs) in 5 charts

Ayhan Kose's picture
Debt and budget deficits have risen among emerging market and developing economies since the 2007-2009 financial crisis, rendering these economies more vulnerable to a sharp rise in borrowing costs. Government debt has climbed to 47 percent of GDP in 2016 from 35 percent of GDP in 2007 among emerging market and developing economies, while fiscal deficits have widened to about 5 percent of GDP from roughly 1 percent of GDP over the same period.

Global Economic Prospects in 10 Charts: June 2017

Ayhan Kose's picture
Also available in: Chinese

The World Bank forecasts that global economic growth will strengthen to 2.7 percent in 2017 as a pickup in manufacturing and trade, rising market confidence, and stabilizing commodity prices allow growth to resume in commodity-exporting emerging market and developing economies.  Growth in advanced economies is expected to accelerate to 1.9 percent in 2017, a benefit to their trading partners. Amid favorable global financing conditions and stabilizing commodity prices, growth in emerging market and developing economies as a whole will pick up to 4.1 percent this year from 3.5 percent in 2016. Nevertheless, substantial risks cloud the outlook. These include the possibility of greater trade restriction, uncertainty about trade, fiscal and monetary policy, and, over the longer term, persistently weak productivity and investment growth.

Download the June 2017 Global Economic Prospects report.
 
Global growth is projected to strengthen to 2.7 percent in 2017, as expected. Emerging market and developing economies are anticipated to grow 4.1 percent – faster than advanced economies.
 
Global Growth

Global talent flows: Causes and consequences of high-skilled migration

Caglar Ozden's picture

Co-authors: Sari Kerr, William Kerr, and Chris Parsons

Highly skilled workers play a starring role in today’s knowledge economy. They make exceptional direct contributions, including breakthrough innovations. As teachers, policy makers, and entrepreneurs they guide the actions of others. They propel the knowledge frontier and spur economic growth. In this process the mobility of skilled workers, within and across national borders, becomes critical to enhancing productivity. Using newly available data, a recent paper by Kerr, Kerr, Özden, and Parsons reviews the landscape of global talent mobility and discusses the causes and consequences of highskilled migration.

Much attention has been paid to understanding the worldwide distribution of human capital and how global migration flows further tilt the deck against poor countries. The migration patterns we see today are the result of a complex tangle of firms and other employers pursuing scarce talent, governments trying to manage these flows through policy, and individuals seeking their best options given the constraints imposed on them. The central outcome, however, is clear: the flows of high-skilled migrants are very concentrated, both within and across national borders.

Should a country limit unskilled immigrant workers to safeguard national productivity growth?

Sharmila Devadas's picture

There are about 245 million migrants worldwide – around 3% of the world population. Roughly one-fifth are tertiary educated. Middle-income countries have a smaller proportion of immigrants than high-income countries (about 1% versus 12%). But for a number of middle-income countries with more immigrants than others, there is uneasiness about relying on unskilled foreigners as they strive to leap from low-wage labor and imitation to high-skilled labor and innovation. There are palpable concerns in Malaysia, for example, with some 2.1 million registered immigrants – about 7% of its population - and likely over 1 million undocumented immigrants. Things reached a crescendo early last year when all new hiring of unskilled foreign workers was suspended as the Malaysian government re-evaluated the management and need for foreign workers. The freeze was subsequently lifted for select sectors amid complaints of labor shortages.

Pages