IMF’s World
International financial institutions, such as the World Bank and IMF, have been slow to reflext geopolitical shifts. Europe is over-represented while developing countries are under-represented.
Images
Regional Trade
Countries have not been able to negotiate multilateral trade agreement under the umbrella of WTO. Instead, they turn to regional trade agreements such as Trans-Pacific Partnership (TPP).
Elephant Ride in Sri Lanka
The Temple of the Tooth in Kandy is a sacred place of worship for Buddhists. On my way back from Kandy I stopped for an elephant ride. I had mixed feelings about the enterprise but at least, my money went to support the elephant orphanage.
Global Supply Chains
Modern commerce is dominated by global supply-chains through which transnational companies manage and distribute goods and services to maximize profit.
Inequality and Development
Modern economic growth brings less inequality as opposed to traditional pre-modern societies. Alas, this trend has turned into more inequality after 1970s.
Aid Effectiveness
Effective foreign aid has four pillars: 1. Partner countries set their own priorities, 2) Donors align with priorities of partner countries, 3) Donors harmonize their assistance among themselves, 4) Aid is driven by results.
Money to and from Africa
Illicit financial flows from Africa outweight what the continent gets in the form of foreign direct investment and foreign aid.
Financial Flows to Poor Countries
Foreign direct investments (FDI) are more important source of development finance than official development assistance (ODA). On the other hand, FDI are more volatile while ODA provides stability over economic cycles,
Forced Migration
The number of forcibly displaced people is the highest since the end of the Cold War and continues growing. International refugees are only a minor part of this number. Most forced displacements are internal due to civil wars.
Migration Hump
Some people believe economic development can stop outward migration from poor to rich countries. This is true only beyond a certain income threshold. The reduction in poverty actually stimulates more migration during earlier stages of development.