Pension funds are rightly viewed as an important source of long-term capital in many countries. Following the global financial crisis of 2008, the theme of long-term investment and the role of institutional investors as providers of domestic capital for economic development has been high on policy makers’ agendas. Despite generally positive findings linking pension system development and economic growth, there are also plenty of disappointments. In too many countries, pension fund investments remain highly concentrated in bank deposits and traditional government bonds. This lack of diversification can be explained by many factors, for instance, unsupportive macro conditions, shortage of investment instruments, poor governance, limited investment knowledge, and regulations with restrictive asset class limits and excessive reliance on short-term performance monitoring.
The world is urbanizing fast—200,000 people are moving to cities every day in search of homes, jobs, as well as education and healthcare services for their families. Supporting this influx with proper infrastructure and services for water, sanitation, transport, and green spaces will require an estimated $1 trillion each year.
Given the difficulties of further increasing the tax burden or the level of public debt,
Not willing to wait for their national governments to bless them with scarce infrastructure funds, innovative mayors have figured out .
Income growth is not the sole aim of economic development. An equally important, albeit harder to quantify objective is a sense of progress for the entire community, and a confidence that prosperity is sustainable and shared equitably across society for the long term.
That regional cooperation in South Asia is lower than optimal levels is well accepted. It is usually ascribed to – the asymmetry in size between India and the rest, conflicts and historical political tensions, a trust deficit, limited transport connectivity, and onerous logistics, among many other factors.
Deepening regional integration requires sufficient policy-relevant analytical work on the costs and benefits of both intra-regional trade and investment. An effective cross-border network of young professionals can contribute to fresh thinking on emerging economic cooperation issues in South Asia.
Against this background, the World Bank Group sponsored a competitive request for proposals. Awardees from Bangladesh, India, and Pakistan, after being actively mentored by seasoned World Bank staff over a period of two years, convened in Washington DC to present their new and exciting research. Research areas included regional value chains, production sharing and the impact assessment of alternative preferential trade agreements in the region.
Young Economists offer fresh thoughts on economic cooperation in South Asia
Mahfuz Kabir, Acting Research Director, Bangladesh Institute of International and Strategic Studies and Surendar Singh, Policy Analyst, Consumer Unity Trust Society (CUTS International) presented their research: Of Streams and Tides, India-Bangladesh Value Chains in Textiles and Clothing (T&C). They focus on how to tackle three main trade barriers for T&C: a) high tariffs for selected, but important goods for the industries of both countries; b) inefficient customs procedures and c) divergent criteria for rules of origin classification.
Sreerupa Sengupta, Ph.D. Scholar at Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi discussed Trade Cooperation and Production Sharing in South Asia – An Indian Perspective. Reviewing the pattern of Indian exports and imports in the last twenty years, her research focuses on comparing the Global Value Chain (GVC) participation rate of India with East Asian and ASEAN economies. Barriers to higher participation include a) lack of openness in the FDI sector; b) lack of adequate port infrastructure, and long port dwell times; and c) lack of Mutual Recognition Agreements (MRAs).
Aamir Khan, Assistant Professor, Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad presented his work on Economy Wide Impact of Regional Integration in South Asia - Options for Pakistan. His research analyzes the reasons for Pakistan not being able to take full advantage of its Free Trade Agreement (FTA) with China, and finds that the granting of ASEAN-type concessions to Pakistan in its FTA with China would be more beneficial than the current FTA arrangement. The work also draws lessons for FTAs that are currently being negotiated by South Asian countries.
- Sustainable Communities
- Urban Development
- Social Development
- Public Sector and Governance
- Private Sector Development
- Law and Regulation
- Labor and Social Protection
- Financial Sector
- Agriculture and Rural Development
- South Asia
- Sri Lanka
A matching grant enabled the Brazilian cooperative Coopervoltapinho to build a rice silo. All photos by Romeu Scirea.
Imagine driving along a rural road and seeing many small farms, all growing flourishing crops. Would you know how the farmers obtained the funds to plant these crops, enhance their productivity, and deliver them to market?
As financial intermediaries tracking benchmarks grow in importance around the world, the issue of which countries belong to relevant international benchmark indexes (such as the MSCI Emerging Markets) has generated significant attention in the financial world (Financial Times, 2015). The reason is that the inclusion/exclusion of countries from widely followed benchmarks has implications for the allocation of capital across countries.
As institutional investors become more passive, they follow benchmark indexes more closely. These benchmark indexes change over time, as index providers reclassify countries, implying that investment funds have to re-allocate their portfolio among the countries they target. The capital flows generated by these portfolio re-allocations are important because worldwide open-end funds that follow a few well-known stock and bond market indexes manage around 37 trillion U.S. dollars in assets (ICI, 2016).
When it comes to education and human development, the Palestinian territories have traditionally outperformed countries with similar GNI per capita as well as its neighbors in the Middle East and North Africa region (figures 1 and 2). Despite facing one of the highest unemployment rates in the world and a severe lack of employment opportunities in the private sector, until 2010, Palestinian youth continued to invest in education.
Equipped with more education than any previous generation, young Palestinians are now moving into adulthood with uncertainty about what their futures might hold amidst a protracted risk of conflict and an economy with steadily rising unemployment.
Many of the world’s populations are vulnerable to climate shocks – to drought, flooding, irregular rainfall and natural disasters. For these countries, cities and communities, index-based insurance is a critical risk-management tool which allows victims of such shocks to continue to have access to finance and to build resilience against future risks.