CFR Presents

Development Channel

Issues and innovations in global economic development

Posts by Category

Showing posts for "Economic Growth"

The Political Salience of Latin Americans’ Perceptions of Corruption

by Matthew Taylor
A demonstrator holds a scarf during a march to demand for the resignation of Honduran President Juan Orlando Hernandez in Tegucigalpa August 14, 2015. Thousands of protesters have been continuing demonstrations in Tegucigalpa, calling for the resignation of Hernandez over a $200 million corruption scandal at the Honduran Institute of Social Security (Jorge Cabrera/Reuters). A demonstrator holds a scarf during a march to demand for the resignation of Honduran President Juan Orlando Hernandez in Tegucigalpa August 14, 2015. Thousands of protesters have been continuing demonstrations in Tegucigalpa, calling for the resignation of Hernandez over a $200 million corruption scandal at the Honduran Institute of Social Security (Jorge Cabrera/Reuters).

Once a year, policymakers and the press are forcibly reminded of the terrible costs of corruption. This year, it fell on January 27, when Transparency International’s Corruption Perceptions Index (CPI) was released, inciting the ritual gnashing of teeth and beating of chests about relative national corruption gains and losses.

Read more »

This Week in Markets and Democracy: Moldova’s Protests, Investors Take on Graft, Corruption’s Costs in Nigeria

by Shannon K. O'Neil
People hold a protest in front of the parliament building in Chisinau, Moldova, January 21, 2016. At least 8,000 people protested in the Moldovan capital on Thursday against the appointment of Prime Minister Pavel Filip, whose hasty swearing-in ceremony at midnight also prompted a government spokesman to resign (Reuters/Viktor Dimitrov). People hold a protest in front of the parliament building in Chisinau, Moldova, January 21, 2016. At least 8,000 people protested in the Moldovan capital on Thursday against the appointment of Prime Minister Pavel Filip, whose hasty swearing-in ceremony at midnight also prompted a government spokesman to resign (Reuters/Viktor Dimitrov).

Moldova’s Corruption Undermines EU Bid

Moldova’s corruption continues despite deepening European Union (EU) ties. New Prime Minister Pavel Filip’s pro-EU party is linked to a $1 billion bank embezzlement scheme that saw nearly 13 percent of gross domestic product (GDP) disappear. Two former prime ministers fell in the scandal, one to a no confidence vote while another is in jail. Now, despite government rhetoric accepting the EU Association Agreement governance statutes and promising to stamp out corruption, protesters are calling for Filip’s resignation. It is unlikely that Moldova will move beyond EU “partner” status anytime soon.

Read more »

This Week in Markets and Democracy: Energy Subsidies, Human Rights in Supply Chains, and Poland’s Democracy Rollback

by Shannon K. O'Neil
A driver waits to fill his car with fuel at a petrol station in Riyadh, Saudi Arabia, December 22, 2015 (Reuters/Faisal Al Nasser). A driver waits to fill his car with fuel at a petrol station in Riyadh, Saudi Arabia, December 22, 2015 (Reuters/Faisal Al Nasser).

Oil Prices Plummet—Will Subsidies Follow?
As crude prices fall below $30 a barrel, oil-producing states face mounting fiscal challenges. Saudi Arabia’s 2015 deficit neared $100 billion, roughly 15 percent of gross domestic product (GDP);Venezuela’s reached 14 percent; and Algeria expects foreign reserves to fall by $30 billion in the coming year to cover its looming fiscal gap. Across commodity-dependent nations finance ministers are looking to cut budgets. Energy subsidies are an obvious target, as these expensive and inefficient payments distort markets and undermine development. In December, Saudi Arabia reduced fuel subsidies and prices went up 50 percent. Algeria promised to cut energy subsidies (though in the short term, they are rising). Even in Venezuela, where citizens pay less for gas than water, rumors are the government is considering a hike. The hesitation? Price increases during recessions don’t go over well; in Venezuela, the unpopular move helped bring Hugo Chavez to power.

Read more »

Trade, Anticorruption, and Elections at the Start of 2016

by Shannon K. O'Neil
U.S. Attorney General Loretta Lynch (3rd L) makes remarks at a news conference to announce a law enforcement action relating to FIFA, as (L-R) Assistant U. S. Attorney for Eastern District of New York Evan Norris, U.S. Attorney for the Eastern District of New York Robert Capers, FBI Assistant Director New York Field Office Diego Rodriguez, IRS Criminal Investigation Chief Richard Webber and IRS Special Agent in Charge of Los Angeles Field Office Erick Martinez listen, in Washington, December 3, 2015. Officials Alfredo Hawit and Juan Angel Napout have been arrested by Swiss authorities in the ongoing soccer scandal (Reuters/Mike Theiler). U.S. Attorney General Loretta Lynch (3rd L) makes remarks at a news conference to announce a law enforcement action relating to FIFA, as (L-R) Assistant U. S. Attorney for Eastern District of New York Evan Norris, U.S. Attorney for the Eastern District of New York Robert Capers, FBI Assistant Director New York Field Office Diego Rodriguez, IRS Criminal Investigation Chief Richard Webber and IRS Special Agent in Charge of Los Angeles Field Office Erick Martinez listen, in Washington, December 3, 2015. Officials Alfredo Hawit and Juan Angel Napout have been arrested by Swiss authorities in the ongoing soccer scandal (Reuters/Mike Theiler).

As a new year begins, trade is slower, the drive against corruption continues, and electoral struggles shape fragile democracies. Here are three issues the Civil Society, Markets, and Democracy (CSMD) program will be following in 2016:

Read more »

This Week in Markets and Democracy: Modi’s Reform Agenda, the WTO, and 2015 UN Development Report

by Shannon K. O'Neil
A labourer pushes a handcart loaded with sacks containing tea packets, towards a supply truck at a wholesale market in Kolkata, India, June 26, 2015. For years Indian businesses have lobbied for a nationwide sales tax, hoping to replace a chaotic structure that inflates costs and halts their trucks at state borders for duty payments, and to unify the country into one of the world's largest single markets. But after political compromises that finally got a goods and services tax (GST) bill before parliament, they have turned wary (Reuters/De Chowdhuri). A labourer pushes a handcart loaded with sacks containing tea packets, towards a supply truck at a wholesale market in Kolkata, India, June 26, 2015. For years Indian businesses have lobbied for a nationwide sales tax, hoping to replace a chaotic structure that inflates costs and halts their trucks at state borders for duty payments, and to unify the country into one of the world's largest single markets. But after political compromises that finally got a goods and services tax (GST) bill before parliament, they have turned wary (Reuters/De Chowdhuri).

Modi’s Reforms at Odds
A senior official in Indian Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) is pushing a corruption probe that threatens to derail his own party’s Goods and Services Tax (GST). A linchpin of Modi’s economic platform, the reform would replace numerous local and state taxes with a single nation-wide tax. The government expects GST to boost government revenue, attract foreign investment, and add up to two percent to GDP. With the corruption case’s targets—opposition Congress Party leaders Sonia and Rahul Gandhi—denouncing the investigation as politically motivated, the fallout will likely halt Modi’s tax reform in India’s opposition-led upper house. As the Gandhi case advances, the GST may not, putting Modi’s ambitious pro-business and anticorruption agendas at odds.

Read more »

A Tipping Point in Bangladesh?

by Guest Blogger for Shannon K. O'Neil
A sign is seen as a building safety assessment is being conducted at an Adorn Knitwear garments factory in Dhaka, December 9, 2014. Adorn is a small business not far from the rubble of Rana Plaza, a Dhaka suburb building that collapsed in April 2013 killing more than 1,100 people, most low-paid seamstresses, and prompting a costly safety overhaul at plants large and small. Last month, Adorn's production lines were silent and its sewing machines gathering dust as the lengthy process of checking the building for structural weakness was underway (Reuters). A sign is seen as a building safety assessment is being conducted at an Adorn Knitwear garments factory in Dhaka, December 9, 2014. Adorn is a small business not far from the rubble of Rana Plaza, a Dhaka suburb building that collapsed in April 2013 killing more than 1,100 people, most low-paid seamstresses, and prompting a costly safety overhaul at plants large and small. Last month, Adorn's production lines were silent and its sewing machines gathering dust as the lengthy process of checking the building for structural weakness was underway (Reuters).

Emerging Voices features contributions from scholars and practitioners highlighting new research, thinking, and approaches to development challenges. This post is from Sarah Labowitz (@SarahLabo), codirector of the NYU Stern Center for Business and Human Rights. Here, she explains why the time is right for improving factory conditions in Bangladesh, and what can be done to protect workers. 

Read more »

This Week in Markets and Democracy: G20 and APEC Summits

by Shannon K. O'Neil
Members of the Group of 20 (G20) wave during the traditional family photo at the G20 leaders summit in the Mediterranean resort city of Antalya, Turkey, November 15, 2015. (Reuters/Aykut Unlupinar) Members of the Group of 20 (G20) wave during the traditional family photo at the G20 leaders summit in the Mediterranean resort city of Antalya, Turkey, November 15, 2015. (Reuters/Aykut Unlupinar)

CFR’s Civil Society, Markets, and Democracy (CSMD) Program highlights noteworthy events and articles each Friday in “This Week in Markets and Democracy.” 

Read more »

Five Questions with Elmira Bayrasli

by Guest Blogger for Shannon K. O'Neil
Software developers work on computer sytems at the Information Technology Developers Entrepreneurship Accelerator (iDEA) hub in the Yaba district in Lagos June 25, 2015. At first glance, Yaba is like many other parts of Nigeria's sprawling commercial capital: a cacophony of car horns and shouting street vendors, mingling with exhaust fumes and the occasional stench of sewage. But in between the run-down buildings in this seemingly inauspicious part of Lagos, a city of around 21 million, tech start-ups are taking root and creating a buzz that is drawing international venture capitalists and more established digital firms. (Reuters/Akinleye) Software developers work on computer sytems at the Information Technology Developers Entrepreneurship Accelerator (iDEA) hub in the Yaba district in Lagos June 25, 2015. At first glance, Yaba is like many other parts of Nigeria's sprawling commercial capital: a cacophony of car horns and shouting street vendors, mingling with exhaust fumes and the occasional stench of sewage. But in between the run-down buildings in this seemingly inauspicious part of Lagos, a city of around 21 million, tech start-ups are taking root and creating a buzz that is drawing international venture capitalists and more established digital firms. (Reuters/Akinleye)

Emerging Voices highlights new research, thinking, and approaches to development challenges from contributing scholars and practitioners. This post features Elmira Bayrasli, the co-founder of Foreign Policy Interrupted and a lecturer at New York University.

Read more »

This Week in Markets in Democracy: Election in India, Kenyan Corruption, End of BRICS

by Shannon K. O'Neil
Supporters of Janata Dal (United) celebrate after learning the initial results outside the party office in New Delhi, India, November 8, 2015. Prime Minister Narendra Modi was heading for a heavy defeat on Sunday in a key election in India's third most populous state Bihar, signalling the waning power of a leader who until recently had an unrivalled reputation as a vote winner. Modi's second straight state election setback will galvanise opposition parties, embolden rivals in his own party and diminish his standing with foreign leaders amid concern he may not win a second term as prime minister (Reuters/Anindito Mukherjee). Supporters of Janata Dal (United) celebrate after learning the initial results outside the party office in New Delhi, India, November 8, 2015. Prime Minister Narendra Modi was heading for a heavy defeat on Sunday in a key election in India's third most populous state Bihar, signalling the waning power of a leader who until recently had an unrivalled reputation as a vote winner. Modi's second straight state election setback will galvanise opposition parties, embolden rivals in his own party and diminish his standing with foreign leaders amid concern he may not win a second term as prime minister (Reuters/Anindito Mukherjee).

CFR’s Civil Society, Markets, and Democracy (CSMD) Program highlights noteworthy events and articles each Friday in “This Week in Markets and Democracy.” 

Read more »

This Week in Markets and Democracy: The Americas’ Refugee Crisis, Impunity in Journalist Attacks, and More

by Shannon K. O'Neil
A Salvadoran immigrant carries her son while standing in vegetation to hide from organized crime bands in Huehuetoca, near Mexico City, June 1, 2015. An increasing number of Central Americans are sneaking across Mexico's border en route to the United States (Reuters/Edgard Garrido). A Salvadoran immigrant carries her son while standing in vegetation to hide from organized crime bands in Huehuetoca, near Mexico City, June 1, 2015. An increasing number of Central Americans are sneaking across Mexico's border en route to the United States (Reuters/Edgard Garrido).
CFR’s Civil Society, Markets, and Democracy (CSMD) Program highlights noteworthy events and articles each Friday in “This Week in Markets and Democracy.” 

Read more »