The World Region
We’ve all been there. Leafing through a magazine, or on the subway, glancing up at the billboards, and then a moment of painful awareness as our eyes meet those of a starving child. Limbs grotesquely proportioned, belly distended, the image is accompanied by a request for help. For some small sum of money you too can save a life. Again you see the image… and reach for your phone. You text CHILD or SAVE or LIFE to the relevant organization. Then, conscience temporarily assuaged, you encounter a sinking feeling as you remember you’ve seen this before. How exactly will your donation help the child? What purpose do these images really serve?
Growing up in a tropical country, one of us (Alfredo) was acutely aware of mosquito-borne diseases such as dengue and malaria. For many years now, vector-control strategies were—and still are—promoted by government- and school-led campaigns to limit the spread of these diseases. Consequently, it is somewhat alarming to know that diseases spread by mosquitoes remain an enormous challenge facing large parts of the developing and even developed world, particularly sub-Saharan Africa. It is perhaps less surprising that our shared interest in the health sector has resulted in a joint paper on assessing the overall quality of the health care system via compliance with established treatment guidelines.
Scan the United Nations’ 17 Sustainable Development Goals (SDGs). You’ll see inclusive growth, clean water and greater equality, among other objectives. But you won’t see this: Giving people access to savings accounts, loans, insurance and other financial services.
The categorisation of countries into relevant international benchmark indices affects the allocation of capital across borders. The reallocation of countries from one index to another affects not only capital flows into and out of that country, but also the countries it shares indices with. This column explains the channels through which international equity and bond market indices affect asset allocations, capital flows, and asset prices across countries. An understanding of these channels is important in preventing a widening share of capital flows being impacted by benchmark effects.
Energy prices play a key role in the determination of food prices. The post-2006 boom of food prices was partly driven by higher energy costs, and the weakness in energy prices since 2014 is expected to hold food commodity prices down in the future as well.
I’ve suggested recently that although high economic growth in recent decades has greatly improved average life expectancy, infant mortality, and other leading indicators policymakers and development practitioners were still worried about the sustainability of these trends and whether people in developing countries would eventually enjoy the high standards of living of high-income countries. This, against the background of a planet under increasing stress, particularly as a result of climate change. In this blog, I explore some of the actions needed to sustain our global economy.
The World Bank is raising its crude oil price forecast for 2016 to $43 a barrel from $41 dollars after a 37 percent jump in energy prices in the second quarter due principally to disruptions to supply, particularly from wildfires in northwestern Canada and sabotage of oil infrastructure in Nigeria.
Fear of openly confronting politics can come in the way of achieving economic development goals. To help address this problem, the Development Research Group of the World Bank prepared a report synthesizing the vanguard of economics research on the functioning of political markets to understand the implications. It yields insights for strengthening existing transparency and citizen engagement policies with potentially powerful consequences for economic development everywhere, in poor and rich countries alike.
It has been almost ten years since Richard Thaler and Cass Sunstein wrote Nudge, but the revolution in behavioral policymaking is still unfolding.
Around the world, behavioral economists and policymakers strive to show that a richer model of human behavior can improve both individual and social welfare in virtually all domains of society.