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Latin America & Caribbean

Five lessons of regional integration from Asia, America, and Africa

Sanjay Kathuria's picture
More than 50% of today’s international trade goes through regional trading arrangements.  While trade is a critical component of regional integration, integration has several other dimensions including energy cooperation and intra-regional investment, to name a few.  After carefully examining cases of regional integration in Southeast Asia, the Americas and Africa, we present five lessons for South Asia.

Lesson 1: Facilitate trade in goods and services

Despite falling tariffs, there is still a large gap between the price of the exported good and the price paid by the importer, largely arising from high costs of moving goods, especially in South and Central Asia. On a percentage basis, the potential gains to trade facilitation in South and Central Asia, at 8 percent of GDP, are almost twice as large as the global average. High trade costs have contributed to South Asia being the least integrated region in the world.

FIGURE 1: Intra-regional trade share (percent of total trade), 2012

In the ASEAN region, most countries have established either Trade Information Portals or Single Windows that have enhanced trade facilitation, reduced trade costs and enhanced intra-regional trade. A Trade Information Portal allows traders to electronically access all the documents they need to obtain approvals from the government. A Single Window (a system that enables international traders to submit regulatory documents at a single location and/or single entity) allows for the electronic submission of such documents. These single windows, using international open communication standards, facilitate trade both within the region and with other countries using similar standards.

In services, one barrier to trade involves the movement of skilled workers, accountants, engineers and consultants who may move from one country to another on a temporary basis. The Southern Common Market (Mercosur)’s Residence Agreement allows workers to reside and work for up to two years in a host country. This residence permit can be made permanent if the worker proves that they can support themselves and their family.

Reflections on International Day of Persons with Disabilities

Maitreyi Bordia Das's picture
international-day-persons-disabilities
"Disability is no barrier. Landmine victims play volleyball." Photo: AusAID

I am often asked how “we” – development professionals and practitioners at large - can make a difference to social exclusion. It is an opportune day to reflect on this by thinking about a diverse group of historically excluded people. The focus of today’s International Day of Persons with Disabilities is appropriately on Sustainable Development: The Promise of Technology.” Because the power of technology in rehabilitation and hence, for inclusion, is uncontested. Let me quickly add that technology is a necessary, but by no means a sufficient condition for enhancing the functional ability of persons with disabilities. 

Technology attenuates many barriers that disability raises. It has changed the way persons with disabilities live, work and study. The seminal World Report on Disability emphasizes the role of technology for the inclusion of persons with disabilities in markets, in services and in physical, political and social spaces. It points out for instance, that assistive devices can substitute or supple­ment support services, possibly even reduce care costs. The National Long-Term Care Survey in the United States found that higher use of technology was associated with lower reported disabil­ity among older people. The fascinating Digital Accessible Information SYstem (DAISY) consortium of talking-book libraries aims to make all published information acces­sible to people with print-reading disabilities. And the examples could go on.

Can Mapping Help Increase Disaster Resilience?

Marc Forni's picture



In the days following the January 12, 2010 earthquake in Haiti, the World Bank disaster risk management (DRM) community worked to assess the damage, and support the Haitian government plan and enact what would become a massive and protracted recovery from this profound disaster. Accurate and up to date maps of the country were an important component of these planning efforts. These maps came from an unexpected source, a global community of volunteer mappers, who, using their internet connections and access to satellite imagery, were able to contribute to mapping Haiti from their own homes.
 
Following the Haiti earthquake, the World Bank, Google, and several other entities made high-resolution imagery of the affected area available to the public. Over 600 individuals from the global OpenStreetMap (OSM) community began digitizing the imagery, tracing roads, building outlines, and other infrastructure, creating what quickly became the most detailed map of Port au Prince that had ever existed.  Volunteers from 29 countries made about 1.2 million edits to the map, performing an estimated year of cartographic work in about 20 days. This effort catalyzed a rethinking of community mapping and open data within the World Bank and other international institutions.

Results-Based Projects: Insights from the Frontline (Part I)

Dhushyanth Raju's picture

Projects supported by results-based loans—of the breed of the current projects in education in Pakistan and counterparts in the Latin American and Caribbean region—are increasingly seen as a promising way for raising the effectiveness of Bank lending. In a seminar recently organized by the South Asia region, a proposal that such projects should be set as the default choice and quickly become the lion’s share in the region’s lending portfolio resonated widely with the participants.

While, in principle, linking loan disbursements to the achievement of results seems desirable, this step by itself may not be enough for project success. In this entry, and ones to follow, learning from the Pakistan results-based projects in education, I provide some insights on considerations that may increase the likelihood that such projects succeed. Some of these insights may also be relevant for other types of projects.

Reflections on the Chile Earthquake and Disaster Response

Isabel Guerrero's picture

So many feelings and thoughts as I watch and digest the earthquake in Chile…some of them very relevant to understanding the importance of disaster preparedness in South Asia, a region that is exposed to so many natural shocks.

Immediate feelings of admiration and pride. The incredible reaction from Michele Bachelet as the leader of the whole country: less than an hour after the earthquake at the center to manage disasters, gathering the facts, coming out to tell the people of Chile what was happening, and taking a helicopter to the worst affected areas. She was not dramatic. Quite knowledgeable, deferring to the experts on things she didn’t understand, and empathic throughout. Not looking down on people, not overly reassuring, but holding. One felt glad to have her as a President in this moment; sure she would do the right thing. No ego and the right tone.

Does South Asia Run the Risk of Rising Inflation?

Eliana Cardoso's picture

I am old enough to remember the days when Latin America was the land of inflation. Hyperinflation in Bolivia, Brazil and Argentina made the news in the 1980s and early 1990s. At that time, Asia was seen as immune to the Latin disease. Since then, much water has gone under the bridge. Inflation came under control in the majority of Latin American countries. Today the median inflation rate in South Asia is more than twice the size of the median inflation rate in Latin America and the Caribbean. (See chart below)

Should South Asia’s policymakers look at this information and wonder whether they are doing something wrong?

In general, the recipe for hyperinflation is the monetization of budget deficits in countries afflicted by political instability or conflict. Even if the threat of mega inflation is far removed from the South Asia scenarios, the combination of big budget deficits and loose monetary policy seems to be present in some countries of the region.

An Unconventional Tactic for the Fight Against Poverty

Ben Safran's picture

Earlier this summer, Pakistan defeated Sri Lanka to win the Twenty20 Cricket World Cup. Like any triumph in an international competition, there was a great sense of national pride, this time coming in a country with great need for such a unifying force. But, as Tunku Varadarajan wrote,  the victory was much more than just a boost to national morale:

“As Pakistan fights for its survival against the barbarian Taliban…its people find themselves possessed of a weapon with which to vanquish the forces of darkness. I speak here not of drones or tanks or helicopter gunships, but of the glorious game of cricket.”

This is a powerful concept: that cricket is a key weapon needed to defeat the “darkness” imposed by extremism in Pakistan. But why limit ourselves to discussing the power cricket possess to fight the Taliban? What about the effects all sports have to instill happiness, empowerment, and hope in people? Could using sports for development be an unconventional tactic for the fight against poverty?