According to conventional wisdom, capital flows are fickle. They are fickle more or less independent of time and place. But different flows exhibit different degrees of volatility: FDI is least volatile, while bank-intermediated flows are most volatile. Other portfolio capital flows rank in between, and within this intermediate category debt flows are more volatile than equity-based flows.
The World Region
Agribusiness is en vogue, fostered by a new understanding of the agricultural sector as a major contributor to overall growth and poverty reduction and through its linkages with the manufacturing and services sector.
In order to efficiently link farmers and consumers across countries and regions, quantifying and analyzing agribusiness trade flows is key. But how can we measure international agribusiness trade flows in a systematic way to identify important patterns?
- Do not conflate “international carbon markets” with “internationally transferred mitigation outcomes.”
- Be cautious about the apparent gains from linking emissions trading markets.
- Create contracts between developed and developing country governments for internationally transferred mitigation obligations.
In the ongoing debate about the benefits of trade, we must not lose sight of a vital fact. Trade and global integration have raised incomes across the world, while dramatically cutting poverty and global inequality.
Within some countries, trade has contributed to rising inequality, but that unfortunate result ultimately reflects the need for stronger safety nets and better social and labor programs, not trade protection.
We’ve all had those hallway conversations or coffee meetings or been privy to overhearing those chats… the ones where we have quick exchanges on why so many ‘best practice’ polices – such as those designed to reduce teacher absenteeism-- continually fail on implementation. Or why policies such as energy subsidies are so difficult to get rid of when they are universally recognized as regressive and encouraging inefficient energy use.
That’s where today’s launch of the 2017 World Development Report (WDR) on Governance and the Law led comes into play. The new report, co-directed by Luis-Felipe Lopez-Calva and Yongmei Zhou, starts by acknowledging that all countries share a similar set of development goals: to minimize the threat of violence, to promote growth, and to improve equity. But too often, carefully designed, sensible policies to achieve these objectives are not adopted or implemented—and when they are, they too often fall short of achieving their goals. The report argues that the development community needs to move beyond asking “what is the right policy?” and instead ask “what makes policies effective in achieving desired outcomes?” As this WDR suggests, the answer has to do with governance—that is, the process through which state and non-state actors interact to adopt and implement those policies.
A few years ago, West Africa was gripped by the Ebola outbreak. The onset of the virus devastated communities and weakened the economies of Guinea, Liberia, and Sierra Leone.
Ebola moved quickly and an immediate response by development partners was badly needed. The governments of the three affected countries requested assistance from UN agencies and the World Bank to lead a coordinated effort to curb the epidemic. The Bank responded by restructuring ongoing health projects to free up resources for the governments to quickly contract UN agencies.
Investment growth in emerging market and developing economies has tumbled from 10 percent in 2010 to 3.4 percent in 2015 and was below its long-term average in nearly 70 percent of emerging an developing economies in 2015. This slowing trend is expected to persist, and is occurring despite large unmet investment needs, including substantial gaps in infrastructure, education, and health systems.
We chose to highlight this book for the World Development Report (WDR) 2017 Seminar Series as its focus on institutional functions rather than forms and on adaptation resonates strongly with the upcoming WDR 2017.
The first takeaway of the book, that a poor country can harness the institutions they have and get development going is a liberating message. Nations don’t have to be stuck in the “poor economies and weak institutions” trap. This provocative message challenges our prevailing practice of assessing a country’s institutions by their distance from the global best practice and ranking them on international league tables. Yuen Yuen’s work, in contrast, highlights the possibility of using existing institutions to generate inclusive growth and further impetus for institutional evolution.
In a world riddled with complexity, the simplicity of universal basic income grants (BIGs) is alluring: just give everyone cash. Excerpts of such radical concepts have been put in practice across the globe, with the launch of a pilot in Kenya, results from India, a coalition in Namibia, an experiment in Finland, a pilot in the Unites States, a referendum in Switzerland, and the redistribution of dividends from natural resources in Alaska and elsewhere.