Introduction to The Great Recession and Developing Countries: Economic Impact and Growth Prospects Otaviano Canuto and Justin Yifu Lin
An energetic debate on the danger of a global currency war has flared up in recent months, stoked by a renewed move to “quantitative easing” in the United States,…
In the post-recession era, developing countries have come out on top. And they're going to stay there.
While globalization has been a powerful engine of economic growth over the past three decades, it has also posed new problems and challenges, especially for international economic policy coordination. In the past decade, the large and rapid increases in trade, remittances, and international financial flows across borders have been a strong incentive for economic growth, not only in East and South Asia but also in Latin America and Sub-Saharan Africa. And rapid and sustained economic growth in several low- and middle-income economies has been steadily altering the economic weights of different regions in the world economy.
Otaviano Canuto, Catiana García-Kilroy, Anderson Caputo Silva The year of 2009 will be remembered for endorsing a structural shift in the relative position of emerging market economies (EMEs) in the…
It is becoming common wisdom that developing countries are doing well while the rich world is stuck in long-overdue austerity. Barring another subprime crisis (this time, in public debt),…
While the rich world puts its house in order, developing countries are becoming a new engine of global growth and a pulling force for advanced economies, says a new book by World Bank economists. According to The Day After Tomorrow: A Handbook on the Future of Economic Policy in the Developing World, almost half of global growth is currently coming from developing countries. As a group, it is projected that their economic size will surpass that of their developed peers in 2015.
As the global stock of ideas expands and diffuses across and within countries, technological learning is poised to become an even more important determinant of growth through its impact on innovation. This note reviews global trends that make a policy focus on technological learning and innovation more important than ever for developing countries. The note explores how the recent global financial crisis may affect these trends and outlines several implications of these trends for innovation policy moving forward. Developing countries would benefit from an increased policy emphasis on technological learning and the adoption of more efficient existing technologies to generate more and better jobs and higher standards of living.
The recovery in advanced economies is now exhibiting several signs of fragility and the medium-term growth prospects for these economies also look difficult. Could developing economies “switch over” to become locomotives in the global economy, providing a countervailing force against downward trends? The view taken here says, yes, as long as appropriate domestic policies and reforms are pursued in developing countries.
Otaviano Canuto, José Manuel Salazar 28 June 2010 (VoxEU) Economic integration transmitted the negative shocks of the crisis to workers across the world. As the global economic recovery begins, this column…
The current recovery in advanced economies is now exhibiting several signs of fragility. Their medium term growth prospects also look difficult. In this environment two questions arise: Will developing…
The U.S. recession could hurt the South, particularly in oil and apparel exports, and Latin America and the Caribbean. But South-South trade is partly picking up the slack. Middle-income countries…
In PREM Note 141 released last week, Milan Brahmbhatt and Luiz Pereira da Silva point to several structural differences between the global economy today and in the 1930s that tend to…
Aggressive and innovative monetary and financial sector policy actions in developed economies have pulled the global financial system back from the brink of an abyss. But impaired assets are…
Squeezes of trade finance have been among the factors responsible for the recent collapse of trade. Those squeezes should be seen in the context of an overall “introspection” of…