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Tag Archives: Emerging Markets

Middle-income countries should not be rushed to graduate

First appeared at OECD Development Matters14 December 2020 Development MattersNew social contractGraduation, Middle Income Trap, New social contractBy Otaviano Canuto, Senior Fellow at the Policy Centre for the New South, Non-Resident Senior Fellow at Brookings Institution, and Former Vice President at the World Bank; Matheus Cavallari, Senior Advisor and Tiago Ribeiro dos Santos, Advisor at the Board of Executive Directors of the World Bank Group. Opinions here are their own. The authors...

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Quantitative easing in emerging market economies

“This time was different”, one may say about monetary policy responses to capital outflow shocks by emerging market economies (EME), as pointed out by a bulletin of the Bank for International Settlements (BIS) released on November 12th (Aguilar and Cantu, 2020). The pandemic-related global financial shock that occurred in March and April led to an exit of close to US$ 100 billion from EME – see Canuto (2020a) – and it was answered by local monetary authorities in ways different from previous...

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Whatever Happened to EU’s Integrity with the Philippines?

Recently, EU Parliament adopted a resolution denouncing the state of human rights and press freedom in the Philippines. However, the resolution seems to rely on flawed data, political agendas, and prejudicial bias.In Brussels, the resolution got 626 votes in favor, only seven against, and 52 abstentions. Nine of ten members of the European Parliament (MEPs) voted for it. Despite its stated concern for ordinary Filipinos, the resolution seems to reflect dubious cooperation between a small...

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Brazil, South Korea: Two Tales of Climbing an Income Ladder

First appeared as Policy Brief PB-20/70, Policy Center for the New SouthThe “middle-income trap” has captured many developing countries: they succeeded in evolving from low per capita income levels, but then appeared to stall, losing momentum along the route toward the higher income levels of advanced economies (Gill & Kharas, 2007, 2015) (Canuto, 2019). Such a trap may well characterize the experience of Brazil and most of Latin America since the 1980s. Conversely, South Korea maintained...

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The Impact of the Pandemic on Developing Countries

TweetAugust 3, 2020 — The Covid-19 pandemic has had differentiated impacts across countries. This is true even among the set of Emerging Market and Developing Economies (EMDEs), which share the disadvantages of more poverty, less adequate health care, and fewer jobs that can be done remotely, compared to Advanced Economies. Differentiation across continents Surprisingly, the rates of infection and death have so far been lower in most EMDEs than in the US and Europe, as pointed out by...

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The Impact of Coronavirus on the Global Economy

First appeared at the Policy Center for the New SouthCOVID-19 brought the global economy to a sudden stop, causing shocks to supply and demand. Starting in January 2020, country after country suffered outbreaks of the new coronavirus, with each facing epidemiological shocks that led to economic and financial shocks as a consequence.How quickly and to what extent will national economies recover after the pandemic has passed? This will depend on success in containing the coronavirus and on exit...

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CAN CARIBBEAN MICROFINANCE SURVIVE COVID-19?

Image by Pete Linforth from PixabayCOVID-19 has been a global pandemic for several months now, with no end in sight, and the virus is wreaking havoc on economic and health systems. Small, open economies such as those in English-speaking Caribbean have been the hardest hit, disproportionately relative to the small number of confirmed cases -- just over 1000 cases and less than 50 deaths as of May 25. How can the microfinance sector in the Caribbean navigate this crisis and seize the...

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Channels of transmission of coronavirus to developing economies from abroad

In a previous article, we highlighted how developing economies have faced simultaneous shocks from their external environment, as pandemic and recession curves have unfolded abroad (Canuto, 2020a). In addition to financial shocks, there have been declines in remittances, tourism receipts, and commodity prices (Canuto, 2020b). The combination of these shocks with the hardships related to flattening domestic infection curves has configured what we have called a ‘perfect storm’ for developing...

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Kuwait’s Frustrating Socio-Economic Transformation

Why Kuwait's public and lawmakers don’t buy into economic reforms yet Kuwait’s Frustrating Socio-Economic Transformation Dr. Leif Rosenberger Chief Economist, ACERTAS Introduction: At first glance, Kuwait appears to be a role model for other countries in the world. Kuwait is the most democratic Arab country in the Middle East. Kuwait mediates conflicts in this troubled region. And since World War 2, oil wealth has made Kuwait one of the world’s richest countries. Kuwait has 6% of the world's...

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