International Economics: IB Economics

The World Bank has supported Nepalese development for the past 60 years - helping foster development in an economy which has faced natural disasters, conflict and other challenges. 

The International Development Association (IDA) has funded all sorts of improvements in education, healthcare, infrastructure and renewable energy, all of which help engender sustainable development. 

This World Bank clip looks at adaptive social protection as a way of fostering resilience against climate change and promoting sustainable development.

Adaptive social protection has four main pillars - essentially the development of social safety nets that are predicated upon tying this to schemes to enhance human capital. As a result, some of the poorest people in the world might be able to break out of the poverty cycle. 

Another World Bank clip, this time looking at how the adoption of cleaner stoves enhances standards of living in poor rural provinces, such as Bihar. An example of how development can be associated with a reduction in harmful negative externalities, such as air pollution. 

It seems that the rate of debt payment for less economically developed countries has reached a 30 year high, especially for those most vulnerable to climate change. The charity Debt Justice estimates that these countries are paying 15.5% in government revenues to external creditors, compared to 8% pre-Covid and 4% in 2010.

Such a rise in debt interest payments has a significant opportunity cost. 

The Singapore story: how has Singapore grown so rapidly, overtaking the UK and the US in terms of per capita GDP? This Bloomberg clip highlights how its location, and the classic approach of moving up the value chain from labour intensive manufactures to higher value-added activities, which these days means financial services and the tech sector. 

However, it's debatable whether this approach can easily be replicated in other locations. 

The Chief Economist of the World Bank has gone public in stating that the G20's scheme for providing debt relief to developing economies has singularly failed to provide any meaningful funds since 2020.

It appears that the failure to include China and private bondholders in negotiations means that it is difficult to reach agreement on providing debt relief. That said, it seems slightly odd that his equivalent figure at the IMF has a contradictory position arguing that it's helped Ghana and Zambia out of debt crises. 

Larry Elliott argues that the G20 are showing signs of committing to tackling extreme poverty in the years ahead, arguing that poverty reduction is going to require both public and private sector investment, with the former crowding in the latter. 

However, without a concerted effort to improve infrastructure and improve public finances in developing economies and go some way to getting closer to achieving the Sustainable Development Goals (SDGs) by 2030. At present, we're going to fall well short in relation to both extreme poverty and zero hunger. 

This clip looks at how World Bank interventions in southern Madagascar are helping some of the world's poorest people cope with the threat of climate change: improving food security and healthcare, and tackling extreme poverty in the region. 

The importance of access to clean water is an important part of development, and it has significant gender-based implications too, with girls far more likely to be involved in water collection than boys. As a result, they often miss school, lowering their human capital and leaving them stuck in the poverty trap. 

This World Bank clip shows how one project in Papua New Guinea is enabling communities to overcome this disadvantage.

Lots of interesting little contributory factors to economic development in this IFC clip: female participation - and their importance to the labour force, food security and the returns to investment in female education and training and, the positive externalities that this helps generate.

A lovely example of how development economics can simultaneously be both simple and complex. 

This article looks at the current state of the Nigerian economy - with inflation running at 30%, the naira having depreciated by two-thirds, with the pegging of the naira to the dollar having been abandoned and many households facing a cost of living crisis. 

However,  whilst President Tinubu is bearing the brunt of the blame, it's arguably the case that he's being blamed for the sins of his predecessors.

Prior to being scrapped, Nigeria's fuel subsidy accounted for 15% of government spending, more than was spent of education and healthcare. Equally, the pegging of the currency had a significant opportunity cost. Additionally, the previous Buhari government had stoked inflation by asking the central bank for a $19billion loan - financed by printing money.

As a result, the Tinubu camp are arguing that drastic measures, and a period of suffering are necessary to allow the economy to recover, and that greater emphasis on the free market will pay substantial dividends in future.

Water is a scarce resource, and this World Bank clip highlights its importance to development and how climate change is imperilling this. In the short-term, a lack of access to water harms living standards and reduces agricultural productivity; longer-term many think that it will be the source of future conflict.

This clip shows how the World Bank is developing strategic partnerships to counter the likelihood of both outcomes.  

Interesting, and important story for development economists, with the Deputy Chief Economist of the World Bank, arguing that the key to effective developing economy debt relief is going to be China's position as a creditor. 

At present, 11 countries are rated as "in distress" and a further 28 are at risk of becoming so, and for all of them China's has a role to play in helping structure debt relief and improving developmental prospects. 

This International Finance Corporation clip shows how digital technology can help street traders in Kenya grow their business, illustrating the potentially transformative effect of such technologies. 

Another clip looking at air pollution in South Asia, this time in the small mountain kingdom of Nepal, where development has seen increased demand for transport, and more car and motorcycle use. 

However, this is associated - not only with dramatic music - but increased levels of pollution and given the prevailing geography, this is problematic, generating significant negative externalities. However, by encouraging the adoption of electric vehicles and electric bikes the World Bank is helping the country overcome them. 

Lots of economic issues raised here - the importance of agriculture to developing economies, scarcity and resource management, innovation and the clever use of technology to enhance agricultural productivity, the role of the World Bank. The list goes on.

This World Bank clip looks at Bangladesh's roads, and their importance to development. Enhancing infrastructure, in boosting the supply-side is clearly a good thing - however, the schemes also employed nearly 800 rural women who have been able to save and start their own businesses, giving them the potential to break out of the poverty cycle.

Roads are essential to development - enhancing education and healthcare, as well as encouraging greater trade. 

This World Bank mini doc looks at attempts to increase the resilience of infrastructure in the island state of Sao Tome and Prinicipe. The aim of such schemes is to counter the effects of climate change and extreme weather in this developing economy, and in doing so underpinning sustainable development.

It seems that there's a growing acceptance of the need to provide increased quantities of aid for developing economies to help them overcome the worst effects of climate change. Sustainable development is very much on the policy agenda.

Both the World Bank and the IMF seem committed to this and it will be interesting to keep track of the next round of meetings, and the associated pledges of aid from developed economies.  

This World Bank clip looks at the importance of debt, particularly sustainable debt, in promoting development. Debt can play an important role in generating the funds for investment but it needs to be carefully managed, and the role of the World Bank’s International Development Association (IDA) is to co-ordinate this, and ensure fiscal sustainability in doing so, although there are concerns that in some countries debt has grown at an unsustainable rate. 

This World Bank clip shines a light on the International Development Association and its remit, illustrating the extent to which it can intervene to tackle a wide range of development issues: climate change, childrens' rights, healthcare and so on. 

It underpins the developmental prospects of many of the world's most vulnerable and seemingly does so in a highly efficient way, generating returns of $3.50 for every $1 spent.  

This simplistic clip looks at the trade-off between the need for social safety nets whilst simultaneously encouraging growth, achieving inclusive growth. It involves ensuring that tax rates are appropriate without being restrictive and balancing interventionist and market-based reforms. 

This World Bank clip looks at the lack of foundational skills in Thailand, a middle income country, noting that a lack of literacy and basic digital skills means that some people lack human capital, and if it wants to develop, it will need to tackle this with the help of the World Bank. 

This World Bank clip looks at how the International Development Association (IDA) helps mitigate the worst effects of fragile and conflict situations, by providing grants and low-interest loans to fund humanitarian projects associated with these issues. It is particularly associated with helping refugees in these contexts. 

This World Bank clip looks at how to provide healthcare in the challenging environment of rural Papua New Guinea, with limited infrastructure. Better use of technology and the empowerment of front line workers has increased access to healthcare and with it enhanced developmental prospects.