Emerging market economies (EMEs) are making important strides in developing long-term finance capital market vehicles to support investment in strategic areas such as infrastructure. However, since last year, EMEs have suffered from big shifts in terms of market sentiment. While EMEs’ prospects were clearly overhyped in the wake of the crisis, the bleak forecasts that dominated headlines in the second half of last year were similarly exaggerated. There are still a number of factors indicating that EMEs’ role in the global economy will continue to grow—just not as rapidly or dramatically as previously thought.
Despite Africa’s great diversity of cultures and climates, countries on the continent often speak the same language when it comes to tackling common development challenges. Senegal and Uganda recently did just that, teaming up to exchange best practices to boost agricultural productivity and employment on both sides of the continent.
I witnessed this knowledge exchange firsthand as I accompanied a Ugandan delegation led by Hon. Maria Kiwanuka, Uganda’s minister of finance, planning, and economic development, on its visit to Senegal. Their core mission was to seek out innovative ways to boost economic growth and create job opportunities for the country’s burgeoning youth, a challenge faced by Uganda and Senegal alike. As both countries continue to experience an increase in urbanization and population growth, and currently have economies that are predominantly based on agriculture, one common answer to this rising challenge is the enhancement of agricultural productivity and the development of agricultural value chains.
Bulgaria’s banking crisis alleviated on Monday after the European Union approved the country’s request to provide 3.3 billion levs ($2.3 billion) in state aid for lenders as a precautionary measure. The government appealed for calm and arrested people suspected of trying to disrupt the country’s banking system. Led by banking shares, the country’s benchmark stock index (Sofix) climbed 4.2% today, posting the biggest gain in the world and recovering from a six-month low level reached last week.
Given the coming impacts of climate change described in the recent IPCC report, it is time to start thinking rationally about settlement abandonment. Low-lying coastal areas and small islands are at long-term risk from sea level rise, but settlements in semi-arid regions, at high latitudes, and in areas exposed to extreme weather events will experience severe impacts sooner. Many settlements are poorly prepared, and some may become uninhabitable.
In a world of 7 billion people, habitable space is scarce. Locations with the reliable freshwater supplies, fertile soils, and energy sources needed to support dense populations are limited. Technological innovations like agriculture, fossil fuels, irrigation, and air conditioning expanded the human habitat; but unless some as-yet unrealized technological revolution of similar magnitude emerges, the spatial extent of our habitat has reached its maximum. It will now shrink because of climate change.
The recent Open Government Partnership (OGP) regional events in Bali and Dublin have provided a fertile opportunity for participating countries to showcase their performance in advancing open data reforms and for newer members to learn from their peers. The positive energy and participation at these events was a reminder of the strides achieved in recognizing the importance of open data as a precondition for better development outcomes. This was particularly relevant in the field of fiscal openness where an increasing number of countries demonstrated how they are taking actions towards improving transparency in financial matters.
The fiscal openness working group (FOWG) - a partnership between the Global Initiative on Fiscal Transparency (GIFT), the OGP Secretariat and the Governments of Brazil and Philippines - – provided a good opportunity to review the results achieved so far. It produced a background paper that reviewed the status of fiscal commitments. The following highlights stood out in helping us gauge the extent to which fiscal transparency principles are being operationalized in the OGP context:
-Barack Obama, President of the United States, speaking about the difficulties he faces as a second-term president struggling to make progress on his priorities and to work constructively with Congress
From time to time, countries experience rapid economic growth without a significant decline in poverty. India’s GDP growth rate accelerated in the 1990s and 2000s, but poverty continued to fall at the same pace as before, about one percentage point a year. Despite 6-7 percent GDP growth, Tanzania and Zambia saw only a mild decline in the poverty rate. In the first decade of the 21st century, Egypt’s GDP grew at 5-7 percent a year, but the proportion of people living on $5 a day—and therefore vulnerable to falling into poverty—stagnated at 85 percent.
In light of this evidence, the World Bank has set as its goals the elimination of extreme poverty and promotion of shared prosperity. While the focus on poverty and distribution as targets is appropriate, the public actions required to achieve these goals are not very different from those required to achieve rapid economic growth. This is not trickle-down economics. Nor does it negate the need for redistributive transfers. Rather, it is due to the fact that economic growth is typically constrained by policies and institutions that have been captured by the non-poor (sometimes called the rich), who have greater political power. Public actions that relax these constraints, therefore, will both accelerate growth and transfer rents from the rich to the poor.
Some examples illustrate the point.
In 1999, the state of Odisha, India, was hit by the most powerful tropical cyclone ever recorded in the North Indian Ocean, causing nearly 10,000 fatalities and US$5 billion in damages. For the next decade, the government of Odisha and partners worked to identify and mitigate cyclone risk. When the similarly intense Cyclone Phailin struck Odisha in October 2013, the region counted 99.6% fewer deaths.
We cannot prevent a monsoon or cyclone from striking – and as population growth, urbanization, and climate change are on the rise, the frequency and impact of natural disasters will increase. But with innovation, collaboration and a better understanding of risk, we can build communities that are more resilient to natural hazards.