Well, the World Bank’s senior management has really done it this time: As my colleague Joel Meister reported today, Congress has reacted to its intransigence on carbon accounting and coal-fired power by deleting budgetary support for the Bank’s Clean Technology Fund. After cr
CGD Policy Blogs
Eldis, the online aggregator of development policy, practice and research at the Institute of Development Studies in Sussex, is conducting a survey to identify "the most significant new piece of development research of 2008." This strikes me as having roughly the same statistical validity as American Idol does for when it comes to finding new singing talent. Still, as with Idol and other talent shows, the entertainment value of a popularity contest is hard to dispute!
Today Bloomberg News reports that Russia's national monopoly, Gazprom, has shut down all natural gas shipments to the Ukraine as part of an escalating price war that has created an energy crisis in Europe.
We are at the start of what promises to be an unusually difficult year in the global economy. Policy decisions in the United States and other rich world countries will matter immensely for poor and vulnerable people living in developing countries.
This is a joint posting with David Wheeler and Robin Kraft
When countries in Latin America or Africa descend into crisis, economists in Washington take a harsh view. Governments are forced to reduce spending in return for IMF rescue packages and in some instances, countries are even put on a cash-only budget. In the United States, we have a very different approach designed to minimize hardship of any kind -- the bailout.
The U.S. rescue package is (rightly) focused on shoring up our domestic financial markets, ground zero in the global credit crisis. Even if this effort is successful, the United States and other global financial leaders cannot ignore the impact on emerging markets. As the crisis has now spread to Latin America, Asia, and elsewhere, we need to ensure that all available tools are used so that the downturn doesn't eventually boomerang back to us.
Last Wednesday the U.S. Federal Reserve Board announced that it had provided temporary liquidity swaps of $30 billion each with Brazil, Korea, Mexico, and Singapore, thereby significantly expanding the circle of countries that the Fed works with in this manner. This is a very welcome move.
Much sooner than we expected a week ago, the multilaterals (or International Financial Institutions -- IFIs) must be ready to step in with emergency lending.
Though today's financial crisis began in the world's richest nation, there is good reason to worry about how it will affect the world's poor. A recent series of posts explores the implications. The contagions of freeze-up and slowdown will spread through many channels: trade, investment, migration, and more.
IMF and Participants at the upcoming meetings of the IMF and World Bank in early October are bound to promise with considerable conviction an increase and an improvement in international coordination of domestic financial regulators -- just as U.S. Treasury and Fed officials are now promising, with considerable conviction, to revisit and reform the rules and the coordination of a currently fragmented regulatory set-up within the U.S.