EconoMonitor

EconomyPosted by
EconoMonitor

China’s renminbi needs convertibility to internationalize

Last week, the Official Monetary and Financial Institutions Forum (OMFIF) released its eighth annual report on Global Public Investors (GPI). It included a survey on asset allocation plans by reserve managers of central banks, sovereign wealth funds, and public pension funds. Together, the 102 investors responding the survey manage US$42.7 trillion in assets (Figure 1).
Picture for China’s renminbi needs convertibility to internationalize
SocietyPosted by
EconoMonitor

Development through gender inequality

Empirical evidence shows that gender inequality, including from legal gender-related restrictions, leads to the loss of growth opportunities, particularly in countries at earlier stages of development. The adverse effect of legal barriers to women’s participation in economic activities remains significant for countries at different stages of development. Time is now for investing in women and ensuring countries and the world can honor commitments and achieve the Sustainable Development Goals agreed upon to ensure a prosperous and sustainable world for generations to come.
Picture for Development through gender inequality
YOU MAY ALSO LIKE
EconomyPosted by
EconoMonitor

Matchmaking Private Finance and Green Infrastructure

First appeared at Policy Center for the New South (July 7, 2021) The world faces a huge shortfall of infrastructure investment relative to its needs. With a few exceptions, such as China, this shortfall is greatest in emerging and developing countries. The G20 Infrastructure Investors Dialogue estimated the volume of...
EconomyPosted by
EconoMonitor

Lost in transition: developing countries in the global economy

The growth and productivity performance of emerging market and developing economies since the 2008 global financial crisis failed to repeat the achievements of the previous decade. Besides frustrating expectations that they might become the new growth pole in the global economy, their convergence to per capita incomes of advanced economies has suffered a setback. Nonetheless, the path of policies and reforms to be pursued in that direction remains the same. This is something accentuated by the coronavirus pandemic crisis.
Public HealthPosted by
EconoMonitor

The Global Economy and the Pandemic

There remains tremendous uncertainty and prospects of a post-pandemic recovery vary greatly across countries, as it is bound to happen at different paces. And the divergence of per capita incomes in the world is rising as an aftermath of the pandemic. The pandemic will leave scars in labor markets and income distribution, besides higher public debts as a legacy. A higher pace of automation of jobs, as well as a partial reversal of globalization are also to be expected.
EconomyPosted by
EconoMonitor

How to Heal the Brazilian Economy

The Brazilian economy has been suffering from a double disease in the last few decades: a combination of anemia in productivity increases and an obesity of the public sector. On the one hand, the mediocre performance of productivity in Brazil in recent decades has limited its GDP growth potential. On the other, the expansion of public spending has become increasingly incompatible with such limits on the potential expansion of GDP, particularly since the growing public spending has not achieved commensurate socioeconomic results.
Public HealthPosted by
EconoMonitor

Pandemic, Digital Transformation, Finance, and Taxing Tech

In just a few months’ time, the pandemic crisis brought about years of change in the way companies and private and public organizations in all sectors and regions operate. The financial industry is undergoing rapid technological change, a trend reinforced by the pandemic. The arguments and the political desire to...
Foreign PolicyPosted by
EconoMonitor

Genocide Politics: The Zenz-Xinjiang Case

The Trump and Biden administrations have initiated an unsubstantiated genocide case against China. It has been opposed by White House's own legal experts. With its dark roots, genocide politics mocks real genocides. In July 2020, then-Secretary of State Mike Pompeo blamed the Chinese Communist Party (CCP) for “using forced sterilization,...
BusinessPosted by
EconoMonitor

El Salvador is First Country to Adopt Bitcoin

On Wednesday El Salvador became the first country to adopt Bitcoin as official legal tender. The Legislative Assembly of El Salvador voted to pass a bill that declared the world’s largest cryptocurrency by market capitalisation as legal tender, as per the Communications Secretariat of the Presidency of the Republic of El Salvador.
POTUSPosted by
EconoMonitor

American Foreign Policy: The Rest of the Story

Is American foreign policy too militarized? Former U.S. Secretary of Defense Bob Gates says yes. In Exercise of Power, Gates says that the inability of U.S. presidents to understand how to use non-military power largely explains why American foreign policy keeps failing. Gates quotes Russian General Valery Gerasimov who says the rules of war have changed. The role of nonmilitary power has grown and has often exceeded military power.
StocksPosted by
EconoMonitor

NFTs - The Investment Megatrend of the Next Decade

Non-fungible tokens, or NFTs, will become a fundamental part of the tech investment megatrend of the next decade. This is despite the drops of around 80% over the past few days in the NFT market, from a $102 million peak in NFT transactions in one day in early May. NFTs...
AsiaPosted by
EconoMonitor

Brazil and South Korea: Two Tales of a Middle-Income Trap

The middle-income trap may well characterize the experience of Brazil and most of Latin America since the 1980s. Conversely, South Korea maintained its pace of evolution, reaching a high-income status. Such divergence of economic growth can be related to their distinctive performances of domestic accumulation of technological and organizational capabilities....
BusinessPosted by
EconoMonitor

Global Recovery May Not Be Enough for Latin America

Three areas threaten another economic and social "lost decade" for the region. A growing global imbalance threatens to further weaken already vulnerable emerging markets: The massive vaccine disparities between advanced and developing economies may exacerbate what the IMF has dubbed “divergent recoveries” – with dire consequences for Latin America. Despite...
AfricaPosted by
EconoMonitor

Natural Wealth and Growth in Sub-Saharan Africa

The conceptual framework of natural wealth that we approached in the previous video may be illustrated with cases drawn from Sub-Saharan Africa. With at least 250 million inhabitants in resource-rich African countries, natural assets are responsible for more than 80% of exports and 50% of government revenues in the region. As such, the high concentration of resource-rich countries in the area allows for direct comparisons with their resource-poor counterfactual regional neighbors.
Presidential ElectionPosted by
EconoMonitor

The Next 100 Days

As President Biden completed his first 100 days in office, I took the opportunity to talk to many folks in policymaking, business, and investing circles to take stock of what’s been achieved and what the priorities should be for the next 100 days. In an article appearing in The Street,...
EconomyPosted by
EconoMonitor

Natural Wealth: Blessing or Curse?

Natural resource-richness is basically a blessing, as stocks of natural wealth are among the factors of production which help determine the output per worker of a country. But it may become a curse, depending on the quality of governance and on the policies adopted to cope with macroeconomic challenges that accompany it.
IndustryPosted by
EconoMonitor

Are We on the Verge of a New Commodity Super-Cycle?

Commodity prices have recovered their 2020 losses and, in most cases, are now above pre-pandemic levels (Figure 1). The pace of Chinese growth since 2020 and the economic recovery that has accompanied vaccine rollouts in advanced companies are seen as driving demand upward, while supply restrictions for some items—oil, copper, and some food products—have favored their upward adjustment.
EconomyPosted by
EconoMonitor

The Middle-Income Trap

The “middle-income trap” has become a broad designation trying to capture the many cases of developing countries that succeeded in evolving from low- to middle-levels of per capita income, but then appeared to stall, losing momentum along the route toward the higher income levels of advanced economies. We need to approach middle-income countries as being in a complex transition phase between accumulation and innovation-based economies. Individual middle-income country experiences of falling into a “trap” may be approached as cases of lack of or failing performance in footing the bill in terms of appropriate policies and institutions.