Blanchard Sees Continued Two-Speed Recovery in 2011

Blanchard says the two-speed global economic recovery is likely to dominate 2011, with weak growth in advanced economies barely enough to bring down unemployment and emerging markets facing the challenges of success, including how to avoid overheating and handle strong capital inflows.

2010: The Year of IMF Reform

The year 2010 was—finally—the year of IMF reform. Three major changes have been agreed to. Each one is a major reform and the culmination of years of work. Each one will be difficult to make effective. Each one should prove to be a blessing, but only if it is well implemented.

Today’s Bounty, Tomorrow’s Promise: Better Policies to Manage Natural Resources

By Leslie Lipschitz

(Version in Español | Français | عربي )

Countries rich in natural resources are often looked at with envy: they face few financial constraints and that should speed their development path. But the reality is less rosy.
Countries with an abundance of natural resources—typically oil, gas or minerals—have, on average, performed less well than comparable non-resource rich countries.

That raises one of the perennial questions in economic policymaking. How to manage the economic and social challenges that stem from resource wealth? Or, to borrow the words of Professor Thorvaldur Gylfason (University of Iceland), how to prevent “nature’s bounty” from “becoming the curse of the common people”? Continue reading “Today’s Bounty, Tomorrow’s Promise: Better Policies to Manage Natural Resources” »

Is There a Silver Lining to Sluggish Credit Growth in the Gulf Countries?

Sluggish credit growth in the post-crisis period was hardly a unique development, as indicated in our latest Regional Economic Outlook for the Middle East and Central Asia region. But while there are clearer signs of recovery in some countries, credit to the private sector is still barely growing in the six nations of the Gulf Cooperation Council, notwithstanding policy efforts to revive it. It might seem easy to ring the alarm bells. But there are a number of reasons why we are not as concerned about the slowdown in credit growth—among them that the adjustment reflects a much needed correction from very high—perhaps unsustainable—rates of credit growth witnessed during the boom years.

By | December 7th, 2010|Economic Crisis, Economic outlook, Middle East, عربي|

Bridges to Growth, Not Roads to Nowhere: Scaling Up Infrastructure Investment in Low-Income Countries

For low-income countries, the absence of reliable infrastructure—roads, railways, ports, but also power supply—has become an increasingly binding constraint on growth. And we know that investment in infrastructure can raise productivity, boost growth, and help reduce poverty. But as straightforward as it sounds, getting investment decisions right is no easy feat. The current fragile outlook for many advanced economies also means they’re less likely to be a big source of growth or financing for the foreseeable future. The key issue now is for low-income countries to unlock new sources of growth and investment financing. At the same time, the more robust recoveries of dynamic emerging market economies and their new status as development partners brings fresh perspectives.

By | December 3rd, 2010|Economic Crisis, LICs, Low-income countries, Public debt|
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