Syndicate content


Why do smaller countries benefit from greater trade with their neighbors?

Sanjay Kathuria's picture
Quay cranes on docks Sri Lanka. Dominic Sansoni/World Bank

The real end winner of NAFTA (North American Free Trade Agreement) is going to be Mexico […]” said then Mexican president Vicente Fox, in 2001. He was referring to Mexico’s gains from trade integration with the USA through NAFTA.

Vicente Fox was right. Mexico has continued to make sustained gains in trade over a 20 year period after signing NAFTA in 1994 with the US, its much larger partner (figure 1).

​Opening up trade is not easy because losses can be immediate, while gains, despite being potentially much larger and more widespread, are often dispersed over time. Producers that may sustain losses from more open imports are often well organized and can hold up reforms quite effectively. Moreover, when one of the countries involved in mutual trade liberalization is disproportionately large, it enables the smaller country lobbies to raise the specter of being swamped by imports from its larger partner.

In the case of South Asia, a history of political differences further complicates deeper trade and economic cooperation within the region. Under these circumstances, opening up trade to neighbors requires strong leadership and a bold vision about the role of trade and regional integration in economic development.

Corridors for Shared Prosperity: A Case for Replication

Pallavi Shrivastava's picture

For those trying to address challenges in global poverty, inclusive businesses offer solutions to some of the world’s most intractable social problems. Business models that create value for the low-income communities are becoming viable - these have been tested, fine-tuned and perfected by some of the finest brains. Once perfected, it makes sense to contextualize and spread these innovations or the knowledge to markets across the globe. To be able to do this, replication is an important tool.

Skilled Women Are Breaking Labor Force Barriers in Bangladesh

Ahamad Tanvirul Alam Chowdhury's picture

Dolly owns and runs “Lovely Fashion,” a tailoring shop in Tongi near Dhaka, the capital of Bangladesh. She is in her mid-twenties and earns around BDT 12,000 (USD 150) a month.  “I work hard. I can support my family to live with dignity in the society,” says Dolly. “Finally I have peace of mind and financial independence.”

Dolly working in her tailoring shop
Dolly working in her tailoring shop

Water, Water Everywhere—and an Island to Live

Nadia Sharmin's picture

A smiling Mosammet Sukkur Jahan, walks to her thatched home in Datiar Char (shoal) in northern Bangladesh to prepare lunch for her family. While eating, Jahan and her neighbors Sharifa, Amena, and Halima were at ease as flood water rushed around their homes located in the middle of vast Teesta River during August and September 2014. They live on a shoal, which is an elevated sandbar that keeps their homes dry.
Chars or Shoals form through siltation along riverbeds. The constant interplay of erosion and accretion creates and sustains the shoals. There are mainly three types of chars: dead, mature, and running. Dead chars are usually permanent land formations. Mature chars are the ones that have not faced any major changes for 10-15 years. Running chars face regular changes and continuous emerge and disappear. The emergence and erosion determines the intensity of vulnerability in the ‘chars’. Typically a new char land requires at least 10 years of continuous presence before it becomes habitable for people.