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Global Economy

Low-carbon shipping: Will 2018 be the turning point?

Dominik Englert's picture
Photo: Peter Hessels/Flickr
As highlighted in a previous blog post, international maritime transport has not kept pace with other transport modes in the fight against climate change.

While inland transport was included in the 2015 Paris Agreement and international air transport followed suit in 2016, progress in the international shipping sector, which carries 80% of the world’s trade volume, has been more modest. Back in 2011, the International Maritime Organization (IMO) did adopt a set of operational and technical measures to increase the energy efficiency of vessels. Realistically though, it may take about 25-30 years to renew the world’s entire fleet and make all new vessels fully compliant with IMO’s technical requirements.

In any case, focusing only on technical and operational efficiency simply won’t be enough. The demand for maritime transport is growing so quickly that, even when taking all these energy efficiency regulations into account, CE Delft projects that emissions from international shipping could still increase by 20-120% by 2050, while IMO estimates range between 50-250% for different scenarios. This clearly calls for a bolder agenda that includes credible market-based solutions, too.

How to help more citizens participate in the global tax agenda

Andrew Wainer's picture
Photo: Mohammad Al-Arief/The World Bank.

Editor’s note: The findings, interpretations and conclusions expressed herein are those of the authors and do not necessarily reflect the view of the World Bank Group, its Board of Directors or the governments they represent.

Even as domestic tax reform is in the political limelight, there is growing attention to taxation in the developing world and the role of citizens in shaping tax policy.

Making taxes work for the SDGs

Jan Walliser's picture
Graphic: World Bank Group

Taxation plays a fundamental role in effectively raising and allocating domestic resources for governments to deliver essential public services and achieve broader development goals.

Game-changers and whistle-blowers: taxing wealth

Jim Brumby's picture

High and rising income inequality is a serious concern in many countries, as highlighted in the IMF’s recent Fiscal Monitor. Wealth, however, is distributed even more unequally than income, as in the picture below.

How an online platform helps drive infrastructure in developing countries

Catherine Workman's picture


Photo: Free-Photos / Pixabay Creative Commons

In order for investors to see the potential in developing long-term attractive infrastructure assets, projects must be well prepared. The lack of such primed projects is a major obstacle for ramping up global infrastructure, particularly in developing and emerging economies.

This is one of the priorities for the G20, as Argentinean President Mauricio Macri emphasized in December 2017: "Infrastructure for development" will be one of the key issues of focus during the country's G20 Presidency and it will "…seek to develop infrastructure as an asset class by improving project preparation."

Most commodity prices surged in January, led by energy–Pink Sheet

John Baffes's picture
Energy commodity prices surged 9 percent in January, the seventh monthly gain in a row, led by an almost 30 percent increase in U.S. natural gas prices, the World Bank’s Pink Sheet reported.

Non-energy prices made solid advances as well, with metals and minerals prices gaining more than 5 percent, also the seventh consecutive monthly increase, and a five-year high. Nickel and zinc, up 12 and 8 percent respectively, led the rise.

Precious metals climbed nearly 6 percent, with similar gains in gold and silver.

Agricultural prices, which had been stable for nearly 2 years, increased more than 2 percent, led by advances in rice (+9 percent) and cotton (+5 percent). Fertilizer prices rose over 1 percent, led by DAP (+3 percent) and Urea (+2 percent).

The Pink Sheet is a monthly report that monitors commodity price movements.
 
All commodity price indexes gained in January, led by energy
Source: World Bank.

Reflections on forty years of China’s reforms

Bert Hofman's picture
Photo: ©Li Wenyong/World Bank

Forty years ago in December, Deng Xiaoping delivered his historic speech "Emancipate the mind, seeking truth from facts and unite as one to face the future." This triggered four decades of reforms that have transformed China into the world’s second largest economy.  By some time in the next decade, China will be among the few countries in the world that will have transitioned from low income to high income status since World War II. 

Understanding the path China traveled, the circumstances under which historical decisions were made, and their effects on the course of China’s economy will inform future decision makers.  Increasingly, this reflection is important to the rest of the world as more and more countries see China as an example to emulate.  At the 19th Party Congress in November 2017, China accepted this mantle for the first time since the onset of reforms.

In some ways, China’s reforms were fairly mainstream.  The country opened up for trade and foreign investment, liberalized prices, diversified ownership, strengthened property rights, kept inflation under control, and maintained high savings and investment.  But this is simplifying the reforms and obfuscates the essence of China’s reforms: the unique steps China took reforming its system are what makes its experience of interest (see the Annex). Its gradual approach to reform was in sharp contrast to Eastern Europe and the former Soviet Union.  Although often compared, China and other transition countries were simply too different in terms of initial economic conditions, political development, and external environment.  

Predominantly rural and among the poorest nations on earth, China was marred by the failure of the Great Leap Forward and the political disruptions during the Great Proletarian Cultural Revolution. Integration into the global economy was minimal. Industry was inefficient, but also far less concentrated than in Eastern Europe and the former Soviet Union.  Perhaps most importantly, because China retained political continuity, the country could focus on an economic and social transition instead of a political one.

Comparison with much of the Latin American reforms also seems out of place. Brazil, Mexico and Argentina were far closer to a market-based system than China, and their reforms—liberalization and macroeconomic stability—were focused on macroeconomic stabilization, whereas China’s reforms aimed for a transformation of the economic system as a whole.  So there is no need to juxtapose the “Washington Consensus” with a “Beijing Consensus:” the approaches taken served very different purposes indeed.

Chart: Economic Development and the Composition of Wealth

Tariq Khokhar's picture

The composition of wealth fundamentally changes with economic development. Natural capital—energy, minerals, land and forests—is the largest component of wealth in low-income countries. Its value goes up, but its share of total wealth decreases as economies develop. By contrast, the share of human capital, estimated as the present value of future incomes for the labor force, increases as economies develop. Overall, human capital accounts for two-thirds of the wealth of nations. Read more in The Changing Wealth of Nations

 

Chart: Global Wealth Grew 66% Between 1995 and 2014

Tariq Khokhar's picture

Global wealth grew by 66% between 1995 and 2014 to a total of over 1,140 Trillion dollars. The share of the world’s wealth held by middle-income countries is growing — it increased from 19% to 28% between 1995 and 2014, while the share of high-income OECD countries fell from 75% to 65%. Read more in The Changing Wealth of Nations

 

What keeps the President of the World Bank up at night?

Jim Yong Kim's picture
Residents of Kashadaha village visit the Kashadaha Anando school in Kashadaha village, Bangladesh. © Dominic Chavez/World Bank
Residents of Kashadaha village visit the Kashadaha Anando school in Kashadaha village, Bangladesh. © Dominic Chavez/World Bank


This year’s World Economic Forum Annual Meeting comes at a time of good news for the world economy. As we said in this month’s Global Economic Prospects report, for the first time since the financial crisis, the World Bank is forecasting that the global economy will be operating at or near full capacity. We anticipate growth in advanced economies to moderate slightly, but growth in emerging markets and developing countries should strengthen to 4.5% this year.


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