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Trade

In Afghanistan, new technologies for doing business in the 21th century

Ikramullah Quraishi's picture
 
The Enterprise System is handed over to Hashim Naeem Tailoring Company and its employees, Parwan, Afghanistan
The Enterprise System is handed over to Hashim Naeem Tailoring Company and its employees, Parwan, Afghanistan

Sail Food Production Company is one of the largest food manufacturing factory in Nangarhar Province, Afghanistan. Despite countless hours spent on manual bookkeeping, its owner always complained about errors when reporting profits and losses on the company’s balance sheets.

At the close of each monthly accounting period, the company was always late in submitting profit and loss statements to the Provincial Department of Finance. Similarly, there were many inefficiencies in production and raw material tracking due to the absence of a proper inventory control system.

The scarcity of information technology integration within business operations has limited the development of Sail Food Production and many other Afghan small and medium enterprises (SME) as they are trying to remain competitive in a global business environment. How could this be improved?

Wanted! Your proposals on Regional Integration in South Asia

Sanjay Kathuria's picture
Wanted! Your proposals on Regional Integration in South Asia



Home to Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, South Asia is one of the fastest growing regions in the world and yet one of the least integrated. Intra-regional trade accounts for only 5% of South Asia’s GDP, compared to 25% of East Asia’s. Meanwhile, with a population of 1.6 billion, South Asia hosts one of the largest untapped talent pools.

To encourage young researchers in the region who aspire to use their research to inform policy making, the World Bank Group calls for research proposals on South Asia regional integration. Proposals will be carefully reviewed and the most suitable proposals (no more than five overall) will be awarded with a grant based on criteria listed below. An experienced researcher from the World Bank’s research department or an external academic will mentor and guide the young researcher in the implementation of the research.[1]
 

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.

Next Wave of Economic Reforms in India

Varun Sridharan's picture
Dr. Denis Medvedev, the World Bank Group’s Senior Country Economist, spoke at the Indian Institute of Management Calcutta on the Next Wave of Economic Reforms in India on 20th November, this year.  The talk focused on the challenges facing the Indian economy in achieving inclusive growth with a special focus on reducing poverty in the lower income states.
IIM Calcutta Discussion
Photo Credit: Roli Mahajan

Engaging the Public on Country Partnership Strategies

Aaron Rosenberg's picture
Open India
Click to Explore OpenIndia

Country Partnership Strategies are a central element of the World Bank Group’s effort to act in a coordinated way to end extreme poverty and boost shared prosperity. But they can be hard for the average person to navigate—some are three-volume tomes, and others can be dense with technicalities. When we make them inaccessible to the general public, we often forgo a critical opportunity to build broad support for our work.

This year, the Bank Group’s India team decided to take a more innovative approach—one that has the potential to directly engage the public and perhaps even spur others to join us in our cause. In producing the Country Partnership Strategy for India, the team opted not to create a simple PDF for the website. Instead it produced a well-designed book, flush with easy-to-understand graphics and appealing photographs. It also produced a highly interactive web application that visualizes the strategyand tracks the strategy’s progress towards its goals over time. The tool shows exactly how individual projects along with knowledge and advisory work line up with our twin goals, and what outcomes we expect in each instance.

Will South Asia Take Advantage of its Export Opportunity?

Markus Kitzmuller's picture
The Port of Chittagong at night in Bangladesh. South Asia has a great opportunity to increase exports to realize greater growth and prosperity.
​Photo by: Shahadat Rahman Shemul 

Watching export growth across South Asia surge in the recent past leads one to ask the obvious but crucial question: Will this trend continue in the longer term and is South Asia on its way to become an export powerhouse, or has it just been a short term, one-off spurt provoked by external forces?

Clearly, the rupee depreciation following tapering talk in May 2013 and the recovery in the US constituted favorable tailwinds; however, our analysis in the fall 2014 edition of the South Asia Economic Focus finds that there are more permanent factors at play as well. South Asia is no exception to the trend across developing countries of increasing importance of exports for economic growth. While starting from a low base, the region saw one of the starkest increases in exports to GDP, pushing from 8.5 percent in 1990 to 23 percent in 2013.

Boosting South Asian Trade – Carpe Diem!

Sanjay Kathuria's picture
sar-trade-manufacturing
Ismail Ferdous/World Bank

South Asia’s Commerce Ministers meet in Thimphu on July 24. Getting there would not have been easy for many of them, with no direct flights between Thimphu and four of the seven capitals. In June, when some of us convened for a regional meeting in Kathmandu, our Pakistani colleagues had to take a 20 hour flight from Karachi to Dubai in order to get to Kathmandu! This is symptomatic of the overall state of economic engagement within South Asia—in trade in goods and services, foreign direct investment and tourism.

South Asian countries’ trade policies remain inward-looking compared to other regions, and there are even bigger barriers to trade within the region. Today, South Asia today is less economically integrated than it was 50 years ago. Figure 1 below shows that intra-regional trade in South Asia accounts for less than 5 percent of total trade, lower than any other region. 

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