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Global Daily: Eurozone consumer prices rise for first time in six months

Global Macroeconomics Team's picture
Financial Markets

The dollar strengthened against the yen on Wednesday, supported by higher U.S. Treasury yields and widespread expectation that the Fed may signal it is on track for its first rate hike since 2006 by year’s end.  The yield on the benchmark 10-year Treasury note rose 5 basis points to 2.38 percent, as higher U.S. bond yields tend to support the dollar by raising return on dollar-denominated securities.  The greenback was up 0.7 percent to 124.27 yen, while it was little changed versus the euro at $1.1243.

Leveling the field for women farmers in Uganda

Derick H. Bowen's picture
In Uganda, farming employs a massive 66 percent of the working population and accounts for a quarter of GDP. Population growth is among the highest in the world, with the number of Ugandans likely to at least double by 2050. It would be difficult to overstate  the urgency of creating enough jobs and producing enough food for everyone in this landlocked East African country.

Campaign Art: Children Share their Dreams for the Future

Roxanne Bauer's picture

People, Spaces, Deliberation bloggers present exceptional campaign art from all over the world. These examples are meant to inspire.

Our Future World, a nonprofit organization aiming to inspire and connect young people, launched a global campaign using the hashtag #TweetaDream in more than 35 countries. The campaign asked children and youth across the world to share their dreams for the future by answering the question “What if every child was inspired to seek genius?”  In response, children and youth sculpted, painted, photographed and used a variety of other resources to visually demonstrate what they want to achieve. 
 
VIDEO: #TweetaDream


To fight desertification, let's manage our land better

Ademola Braimoh's picture


Every year, we lose 24 billion tons of fertile soil to erosion and 12 million hectares of land to desertification and drought.  This threatens the lives and livelihoods of 1.5 billion people now.

In the future, desertification could displace up to 135 million people by 2045. Land degradation could also reduce global food production by up to 12% and push world food prices up by 30%. In Egypt, Ghana, Central African Republic, Pakistan, Tajikistan and Paraguay, land degradation could cause an annual GDP loss of up to 7%.

Pressure on land resources is expected to increase as populations grow, socio-economic development happens and the climate changes. A growing population will demand more food, which means that unsuitable or especially biodiverse land will be claimed for farming and be more vulnerable to degradation. Increased fertilizer and pesticide use related to agriculture will increase nutrient loading in soils, causing eutrophication and declines in fertility over time. Climate change will also aggravate land degradation—especially in drylands, which occupy 40% of global land area, and are inhabited by some 2 billion people. Urban areas, which are located in the world’s highly fertile areas, could grow to account for more than 5% of global land by mid-century.

 Unless we manage our land better, every person will rely on just .11 hectares of land for their food; down from .45 hectares in 1960. 

Agricultural Input Use in Africa – Revisiting our Meager Evidence Base

One of the most common assumptions underlying current policy and development interventions in Sub-Saharan Africa is that the use of all modern agricultural inputs – like chemical fertilizer, improved seed varieties, irrigation, agro-chemicals, and machinery – remains dismally low. But when you examine the evidence underlying this basic claim, it’s easy to feel misled. Most of the well-perpetuated numbers we hear about are from highly aggregated macro-data sources while others are derived from small or purposively chosen samples. Even further, many of the studies that continue to be cited are a decade or two old and may no longer be accurate in an environment influenced by pledges made via the Abuja Declaration on fertilizer.

So what’s a policy analyst to do when the evidence base is likely problematic? Just wish and hope that more appropriate data existed? For a set of eight countries in Sub-Saharan Africa, the wait is over. The Living Standards Measurement Study Integrated Surveys on Agriculture now provide nationally representative and highly disaggregated data from farmers’ agricultural plots to help rebase our understanding of African agriculture and rural spaces.

In China, High-speed Rail Increases Mobility and Drives Growth in Underdeveloped Regions

Gerald Ollivier's picture
Nanguang Railway is one of six rail lines currently supported by the World Bank in China and one of three that recently became operational. With a route length of 576 kilometers (358 miles), it connects the capital cities of Guangxi Zhuang Autonomous Region and Guangdong Province of China. 
 
Guangxi is rich in natural resources and home to dozens of ethnic minorities. But economic development has been relatively slow there compared with coastal regions in China. The high-speed railway system will help monetize Guangxi’s natural resources by bringing in more business opportunities and tourists.  In this sense, the line will not only benefit local people in terms of transportation but also help boost the local economy.

PPP Days Dispatch: Day One

Tanya Scobie Oliveira's picture

As your PPP Days Rapporteur, I feel like I should start this dispatch by typing “Dateline: London” on a manual typewriter in a newsroom thick with cigarette smoke. Alas, I am hunting and pecking the tiny keyboard of my phone from Exchange Square, the immaculate, smoke-free home of the European Bank for Reconstruction and Development (EBRD), our hosts for the PPP Days meeting.

Photo: (c)EBRD/Dermot Doorly

“Doing More, Doing Better” is PPP Days’ ambitious-sounding theme. The event’s creators convened the gathering to enhance the collaboration among multilateral development banks (MDBs) that is already strengthening the PPP marketplace. One of the best examples of this collaboration, the PPP Knowledge Lab, launched at the conference this morning. The PPP Knowledge Lab, now live at www.PPPknowledgelab.org, is an online “one-stop-shop” for everything PPP. It’s an important online resource that will continually be refreshed and expanded.

Just as the PPP Knowledge Lab gathers great ideas onto one platform, PPP Days has gathered experts and thinkers in one place. These two days are packed full with talks, presentations, panel sessions, and breakout sessions that chip away at one of the most challenging questions of our day: “What would it take to double the right private infrastructure investment in emerging markets?” 

Global Weekly: Recent Developments in Emerging and Developing Country Labor Markets

Global Macroeconomics Team's picture

Relative to the advanced economies, the Great Recession had a mild impact on the labor markets of developing countries. The resilience of developing-country labor markets reflects, in large part, stronger output growth during and after the crisis. Moderating growth in several large developing countries has not yet had a large labor market impact, but some signs of weakness are emerging.

Can countries legislate to attract more investment?

Ivan Nimac's picture

The effectiveness of legislating to address investment policy shortcomings is a recurrent debate in development circles. More specifically, do countries need a singular investment law? Should governments expend the political capital required to put in place a law if the likelihood of its implementation is questionable from the outset? Is it not better to work on more implementation-focused activities? And: If countries do undergo the reform process, what should it entail?

Revising or enacting investment laws is one of the first steps that many developing countries take to achieve its objectives for Foreign Direct Investment (FDI). In some cases, the purpose is to signal political will to reform; in other cases, changes are more substantial and seek to profoundly increase legal certainty and improve the value proposition for investors. Reforms may also arise from obligations that countries adopt under international investment agreements.

Investor certainty can bring substantial payoffs to host countries. Foreign investors want to be clear, among other things, about market access; about the requirements for business operation; about their rights and obligations; and about the accessibility and enforcement of dispute resolution.

Lack of certainty can have dire consequences. According to the 2013 Political Risk Survey by the Multilateral Investment Guarantee Agency (MIGA), almost 10 percent of investment plans were cancelled or existing investments were withdrawn due to various adverse regulatory changes in the preceding year. The value of such lost investment, coupled with the cost of international disputes that may arise from it, could climb to tens of millions of dollars for a single case.

But, this does not mean that enacting an FDI law is a guarantee of more investment. Effective reform requires, first, policy based on good practice and, second, implementation (legal, regulatory and administrative) through institutions that are up to the task. An investment framework should be implementable locally while remaining consistent with good practice.

Ideally, an investment law should be a part of a broader set of reforms dedicated to achieving specific objectives, such as more exports, jobs, productivity and other forms of value addition. All stages of investment should be addressed, including attraction, retention and linkage to the local economy.


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