The international discussions under way in the course of this vital year–including July’s Finance for Development Meeting in Addis Ababa, the agreement of a new set of universal Sustainable Development Goals at the UN in September and the climate change summit in Paris at the end of 2015–represent a remarkable and unprecedented opportunity to establish what might be called a “Magna Carta for the earth” for our times.
In the coming months, the international community will gather three times and on three different continents, to build a sustainable development agenda for generations to come.
The Netherlands last chaired the OECD Ministerial Council Meeting in 1991, a year when advanced economies accounted for nearly two thirds of global GDP and almost two billion people were living in extreme poverty. The world looks very different today. Emerging markets now account for more than half of global GDP and the number of people living in extreme poverty is down to one billion. This Millennium Development Goal has been reached, and that is good news. There is still a formidable challenge ahead, however, in the areas of poverty reduction, sustainability and inclusivity. The new Sustainable Development Goals will help to meet these challenges, but achieving them requires a rethink of development policy. Connecting trade, investment and development is a crucial element of this rethink.
“Neither economists nor market participants, nor indeed governments foresaw a financial crisis of the type and magnitude we have now. The collapse of trust and subsequent credit freeze in the wake of the Lehman Brothers collapse was a shock.”
How to improve water systems is one challenge; financing them is another. Public authorities in most countries play the main role in implementing and funding water infrastructure, but it is a model that is under increasing pressure, with government budgets stretched and banks still prudent about issuing credit.
Water holds huge potential for economic, social and individual betterment. There are challenges to confront, but also opportunities. With the right approach, water could be a harbinger of progress.
Poverty has been halved in less than 25 years worldwide. The enormous progress over the past few decades is mainly due to rapid economic growth in the South. China’s economy grew by 10% for decades and 600 million people were consequently brought out of poverty.
This will be “the mother of all years for summits on international development,” says Kevin Watkins*, Executive Director of the UK’s Overseas Development Institute (ODI). He’s not wrong.
Access to financing can contribute to inclusive social and economic development. How might digital transactions help? Here’s how.
Would you like to smell like Zinedine Zidane? A few years ago, a French perfume maker thought many of us would, and paid the football star to sell its manly mixture.
Not much good has come from the Ebola crisis, save this: It has raised awareness of the fact that we already have a weapon in our hands that could help fight such epidemics – our mobile phones.
Although South Africa has had an impressive track record among emerging economies, it has recently hit economic difficulties. We asked FEDUSA General Secretary, Dennis George, what have been the effects, and what steps the G20 and South African government must take to return to the path of healthy growth.
Eight giant balloons from Japan floated in the shadow of the Eiffel Tower on the weekend of 30 August, a reminder of one of the worst natural disasters of recent times–and of the determination of survivors to rebuild their region.
The most prominent goal of development has been to eradicate extreme poverty. Both literally and figuratively this goal has been part of a prescriptive stroll over the past two decades, moving in a linear fashion.
Former Ambassador Seiichiro Noboru urges the OECD to expand by including the BRIICS* (“Serving a new world” in OECD Observer No. 298 Q1 2014). Only when these countries adopt OECD best practices can governments and firms enjoy a true level playing field. As the organisation helps aspiring members to adhere with OECD instruments, important reforms can be pushed forward. Accession also strengthens the OECD through introducing new perspectives. But the impasse of the Doha round of trade negotiations highlights the risk of deadlock that can accompany enlargement. Does the conduct of the BRIICS within the World Trade Organization suggest they would co-operate within the OECD, which relies on consensus decisions that are enforced by peer review?
A little over a year ago the OECD and the World Trade Organization (WTO) launched Trade in Value-Added (TiVA), a new database on trade measured in value-added terms. The evidence that we have unlocked using TiVA has begun to revolutionise our understanding of what is happening in global trade, investment and production. Take global value chains (GVCs), which are a dominant feature of the global economy today. Goods produced in the European Union (EU) and exported to the United States may include raw materials from China and Malaysia, and use services from Japan and India. Goods and services are no longer produced by a firm in one country and sold to consumers in another; production is fragmented around the world, while components cross borders multiple times as value is added to output along the way.
In preparation for the 2015 Global Forum on Development, which will focus on how access to financing can contribute to inclusive social and economic development, the OECD Development Centre and the United Nations Capital Development Fund (UNCDF) have developed a series of articles exploring the key issues and dimensions of financial inclusion. Today’s post from Sarah Bel of the UNCDF Better Than Cash Alliance and James Eberlein of the OECD Development Centre highlights some of the overarching themes related to financial literacy.
Southeast Asia, with more than half-a-billion people, is among the fastest growing regions in the world. However, levels of growth and prosperity within the region are very uneven.
This post is from Juana de Catheu, founder of Development Results and Donata Garrasi, Peace-building Adviser in the OECD Development Co-operation Directorate.
I am just starting to think about this question of how aid should be measured, so this article is very helpful background on Development Assistance Committee process and substance (“Development aid and finance: A defining moment”, in No 294 Q1 2013).
Industrial policy is now back–unless, as economist Joseph Stiglitz says, it never really left. The third edition of Perspectives on Global Development from the OECD Development Centre demystifies industrial policies. Cambridge Professor Ha Joon Chang calls it a “landmark publication because it looks for ways to make industrial policy work better, rather than having an ideological debate on whether it exists and whether it can ever succeed.”
The collapse of Rana Plaza in Dhaka, killing over a thousand workers, was not just a human tragedy. The ready-made garments sector is hugely important in Bangladesh, both economically and socially. This gives dealing with the Rana Plaza aftermath even greater importance.
Development aid rose by 6.1% in real terms in 2013 to reach the highest level ever recorded, despite continued pressure on budgets in OECD countries since the global economic crisis. Donors provided a total of US$134.8 billion in net official development assistance (ODA), marking a rebound after two years of falling volumes. Aid to developing countries had grown steadily in the decade to 2010, but fell in 2011-12 as austerity hit several government aid budgets.
Global activity and trade are projected to strengthen gradually in 2014-15, but the recovery is likely to remain modest, the latest OECD Economic Outlook reported in November.
In 1994, a simple disagreement in a marketplace in Ghana over the price of a guinea fowl turned ugly. The quarrel led to the violent death of one person, which provoked subsequent killings and then escalated into a cycle of revenge attacks. The dispute quickly grew to become what is today known as the Guinea Fowl War. By the time the Ghanaian military restored order, more than 400 villages had been burned and over 15 000 people are thought to have been killed.
Can Africa sustain its recent strong economic performances and benefit more from its abundant resources?
Judging from media headlines, we are in a phase of Afro-optimism. Are we witnessing Africa’s economic take-off? The African Economic Outlook project, the result of a partnership of more than 10 years between the Development Centre, the African Development Bank, the United Nations Development Programme (UNDP) and the Economic Commission for Africa, presents a contrasting assessment of the continent’s “emergence”.
In September 2013 the Kenyan government and the United Nations announced the discovery of huge underground reserves of water in northern Kenya, enough water to last the entire nation for 70 years. The Lotikipi Basin Aquifer and Lodwar Basin Aquifer were located by satellite in drought-afflicted Turkana County, where water scarcity and competition for grazing land has led to deadly cattle raids between communities.
Africa has made tremendous progress over the last 13 years, going from “hopeless” to “aspiring”, in the words of The Economist. Certainly, Africa’s pace of growth has been impressive, averaging 5.1% of GDP per year–much faster than most OECD countries. Some have dismissed this simply as reflecting the recent boom in natural resource prices. They point to the fact that the prices of most commodities– agricultural, mineral and energy–doubled or even tripled over the same period, and warn that Africa’s growth will come to an end once resource prices taper off, as is happening now.
The Central Bank of Nigeria (CBN) in 2004, embarked on a policy-induced consolidation exercise to strengthen the banks and position them to play pivotal roles in driving economic development. Through mergers and acquisitions, and raising the capital base from 2 billion Naira to a minimum of 25 billion Naira, the number of banks was reduced to 25 from 89 in 2005 and later to 24. Also, the aggregate capital base of the sector rose from about US$3 billion to US$5.9 billion.
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