growth Archive

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Promoting Youth Employment in Africa

As successive editions of the African Economic Outlook have shown, Africa’s rate of growth has outperformed the global rate over the last decade. Yet high growth is not sufficient to guarantee productive employment for all. Large sections of the population, and particularly the young, can be left behind and become frustrated. In the absence of a political process allowing them to express their views and produce policy changes, instability can result, as it did last year in a number of North African countries. This is an opportune time to reset the policy agenda of African governments towards an inclusive, employment-creating and sustainable growth strategy, aimed particularly at addressing the special needs of the young.

Africa has the world’s youngest population and it is growing rapidly. Hundreds of millions of young Africans will be leaving school over the next decades, at every level, and looking for jobs. The challenges and obstacles unemployed youth and the working poor face are diverse and vary between countries. Youth employment is largely a problem of quality in low-income countries and one of quantity in middle-income countries. Youth in vulnerable employment and working poverty are the large majority in poor countries. In upper middle-income countries more youth are unemployed, discouraged or inactive. In all country groups more young people are discouraged than unemployed, suggesting that the youth employment challenge has been underestimated.

Some conclusions are evident. The public sector will not be able to absorb the tide of young job seekers because there is little prospect of an expansion in this area. The private formal sector is growing but from too small of a base. Existing firms in this sector, the primary source of jobs paying a living wage, must be supported to grow further and become more competitive. Most importantly, attention must be concentrated on the informal and rural sectors because these will overwhelmingly be the source of new employment. Governments must focus on removing obstacles to the many small informal firms, helping them to grow and create decent jobs.

Get teh 2012 African Economic Outlook on Youth Employment at http://www.africaneconomicoutlook.org/en/in-depth/youth_employment/

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Green Economy is key catalyst for growth and poverty eradication, says UNEP-report

UNEP has launched a report entitled Towards a Green Economy, Pathways to a Sustainable Development and Poverty Eradication, in advance of Rio 2012, that focuses on innovative ways to reduce poverty and promote sustainable development.
The report aims to ”demystify” two myths about greening the global economy. First, sustainable development and economy go together. A green economy does not inhibit but rather provides opportunities for employment and wealth creation, it argues. Secondly, a green economy is not the prerogative of wealthy countries.
According to the report, this investment will set up the transition towards a green economy, defined as low carbon, resource efficient and socially inclusive. A large part of this transition, however, implies policies and investment that dissociate growth from the current intensive consumption of materials and energy use.
The report also seeks to motivate policy makers to create the enabling conditions for increased investments in a transition to a green economy. Investing 2% of global GDP into ten key sectors can kick-start a transition towards a low carbon, resource efficient Green Economy, a new United Nations Environmental Programme (UNEP) report suggests. The sum, currently amounting to an average of around $1.3 trillion a year and backed by forward-looking national and international policies, would grow the global economy at around the same rate, if not higher than those forecast under current economic models.
In his foreword to the report, UNEP Executive Director Acheim Steiner writes: ”New ideas are by their very nature disruptive, but far less disruptive than a world running low on drinking water and productive land, set against the backdrop of climate change, extreme weather events and rising natural resource scarcities. A green economy does not favour one political perspective over another. It is relevant to all economies, be they State or more market-led. Neither is it a replacement for sustainable development. Rather, it is a way of realising that development at the national, regional and global levels and in ways that resonate with and amplify the implementation of Agenda 21”
Sources:
http://www.unep.org/GreenEconomy/Portals/93/documents/Full_GER_screen.pdf
http://www.unep.org/greeneconomy/GreenEconomyReport/
http://www.un-ngls.org/spip.php?article3261
http://www.thebrokeronline.eu/en/trackback/id/6181

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Green and growth go together, says OECD

The OECD Green Growth Strategy , and the new report, Towards Green Growth, provide a practical framework for governments to boost economic growth and protect the environment.
Governments must look to the green economy to find new sources of growth and jobs. They should put in place policies that tap into the innovation, investment and entrepreneurship driving the shift towards a greener economy. Green growth makes economic as well as environmental sense. In natural resource sectors alone, commercial opportunities related to investments in environmental sustainability could run into trillions of dollars by 2050.
Two broad sets of policies are essential elements in any green growth strategy: the first set mutually reinforces economic growth and the conservation of natural capital, including core fiscal and regulatory settings and innovation policies. The second includes policies that provide incentives to use natural resources efficiently and make pollution more expensive.
Replacing natural capital with physical capital is expensive and the infrastructure needed to clean polluted water can be costly, but the cost of inaction can be higher still. Greening growth now, the report argues, is necessary to prevent further erosion of natural capital, such as increased scarcity of water and other resources, more pollution, climate change, and biodiversity loss, all of which can undermine future growth. In addition to the Synthesis Report, the document Tools for Delivering on Green Growth outlines options available to policy makers for developing green growth strategies. The report Towards Green Growth – Monitoring Progress: OECD Indicators outlines ways to measure progress. http://www.oecd.org/greengrowth

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weitzenegger.de Green Economy and Development | June 2011

This Newsletter guides you to content relevant for international co-operation and
economic development. Reposted from sources linked below. Feel free to circulate it to your network. Edited by Karsten Weitzenegger

CONTENT

Special Issue: Green Economy and Development
On the road again to Rio+20

1. UNEP: Green Economy is key catalyst for growth and poverty eradication 2. OECD: Green and growth go together
3. The Green Star Hotel Initiative supports the greening of Egypt’s tourism industry 4. UNCTAD releases book ”Road to Rio +20”
5. UNEP Report spotlights benefits from boosting funding for forests 6. LDCs set to jump start to a green economy
7. The Africa Competitiveness Report 2011
8. Economic Report on Africa 2011 – Focused industrial policy 9. Climate Change and Asian Development Bank
10. EU renewable energy targets may boost land grabbing in developing countries 11. German government backs new energy strategy
12. Recommended Publications
13. Recommended Training and Events
14. Recommended Websites

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OECD: Green and growth go together

OECD work on green growth.

Governments must look to the green economy to find new sources of growth and jobs. They should put in place policies that tap into the innovation, investment and entrepreneurship driving the shift towards a greener economy.

Green growth makes economic as well as environmental sense. In natural resource sectors alone, commercial opportunities related to investments in environmental sustainability could run into trillions of dollars by 2050.

The OECD Green Growth Strategy, and the new report, Towards Green Growth, provide a practical framework for governments to boost economic growth and protect the environment.

“This report shows that green and growth can go together,” said the OECD Secretary-General Angel Gurría. “With the right policies in place, we can create jobs, increase prosperity, preserve our environment and improve the quality of life. All at the same time.”

Two broad sets of policies are essential elements in any green growth strategy: the first set mutually reinforces economic growth and the conservation of natural capital, including core fiscal and regulatory settings and innovation policies. The second includes policies that provide incentives to use natural resources efficiently and make pollution more expensive.

Replacing natural capital with physical capital is expensive and the infrastructure needed to clean polluted water can be costly, but the cost of inaction can be higher still. Greening growth now, the report argues, is necessary to prevent further erosion of natural capital, such as increased scarcity of water and other resources, more pollution, climate change, and biodiversity loss, all of which can undermine future growth.

In addition to the Synthesis Report, the document Tools for Delivering on Green Growth outlines options available to policy makers for developing green growth strategies. The report Towards Green Growth – Monitoring Progress: OECD Indicators outlines ways to measure progress.

The OECD will continue to support national and global efforts to promote green growth in the run-up to the Rio+20 Conference. Going forward, OECD will integrate green growth into national reviews and in future work on indicators, toolkits, sectoral studies and development co-operation.

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Development ministers discuss future development policy, Sahel strategy

CTA – Brussels Office Weblog – Development ministers discuss future development policy, Sahel strategy.

At the informal meeting member states discussed the European Commission’s green paper outlining the future trends of European development policy. The main idea is to coordinate the European Union’s support policies with the goals of sustainable growth by putting economic growth in the service of acceptance and reducing poverty. […] Development ministers also discussed an EU strategy for the Sahel region. Sahel is one of the poorest regions in the world where abject poverty is compounded by a fast population growth, food shortage is an everyday issue and governments are transient. Society is riddled with internal conflicts, Islam radicalism poses a high risk, and security threats related to bootlegging and terrorism are extremely high. The European Union is now finalizing a comprehensive strategy to address the region’s security and development challenges. In this quest, creating stable governance, resolving internal conflicts, encouraging closer cooperation between the regions and fighting against radicalism are of equal importance. The strategy also aims to enhance the region’s security capabilities, protect the rule of law and to support economic development.

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Office of Science & Technology – The Good, the Bad, the Ugly, and the Self-destructive of Innovation Policy:

Innovation has become the central driver of economic growth and thus a key focal point of countries’ economic development strategies as they seek to gain global competitive advantage. In fact, no fewer than three dozen countries have now created both national innovation agencies and strategies designed specifically to link science, technology, and innovation with economic growth. These countries’ innovation strategies seek to align their policies toward skills, scientific research, information and communications technologies (ICTs), tax, trade, intellectual property (IP), government procurement, standards, and regulations in an integrated and coordinated approach designed to drive economic growth through innovation.

via Office of Science & Technology – The Good, the Bad, the Ugly, and the Self-destructive of Innovation Policy:.

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UNU-WIDER : Promoting Entrepreneurship in Developing Countries: Policy Challenges

This policy brief provides some fresh perspectives on the relationship between entrepreneurship and development, and considers policy design issues. It reports on the UNU-WIDER two-year research project ‘Promoting Entrepreneurial Capacity’, which aimed to understand whether and how entrepreneurship matters for development, how it could derail development, how entrepreneurs function in high growth as well as in conflict environments, and how female entrepreneurship differs across countries at various stages of development.

via UNU-WIDER : Promoting Entrepreneurship in Developing Countries: Policy Challenges.

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Weitzenegger’s Publication Review

New on entries
Weitzenegger’s Publication Review
http://www.weitzenegger.de/en/publications.html

Agricultural Diversification for the Poor – Guidelines for Practitioners. http://tinyurl.com/2vs2wx8
This World Bank study treats diversification as a differentiated form of agricultural
development and recognizes its role to spur sustainable growth in the rural sector.
The principle purpose of this study is to outline practical ways for implementing
diversification activities. Throughout the paper, emphasis is particularly on how the diversification process can be made pro-poor with minimum risk involved. Paper concludes with a list of key investment areas to assist diversification.

Assets, Shocks, and Poverty Traps in Rural Mozambique
http://www.diw.de/documents/publikationen/73/diw_01.c.363264.de/dp1073.pdf
Using a micro-level approach to poverty traps, this paper explores welfare dynamics
among households in post-war rural Mozambique. The analysis by Lena Giesbert and Kati
Schindler shows that shocks and household coping behavior help to explain the observed poverty dynamics.

Beyond Development Aid
http://europafrica.net/2010/11/09/beyond-development-aid/
Publication of the Europe-Africa Policy Research Network (EARN) that intends to address the EU-Africa political dialogue on global issues of common concern.

Brazil: An Emerging Aid Player
http://tinyurl.com/18r
This ODI Briefing Paper reviews the institutional set up of Brazil’s aid programme and the implications of its rise in the aid scene.

Challenges in Impact Evaluation of Development Interventions: Opportunities and Limitations for Randomized Experiments
http://www.ua.ac.be/download.aspx?c=.IOB&n=83953&ct=77447&e=249703 Institute of Development Policy and Management (IOB study by Jos Vaessen

Combating Poverty and Inequality: Structural Change, Social Policy and Politics http://tinyurl.com/25rkvpw
This UNRISD Flagship Report argues that this is because many current approaches to reducing poverty and inequality fail to consider key institutional, policy and
political dimensions that may be both causes of poverty and inequality, and obstacles
to their reduction. Moreover, when a substantial proportion of a country’s population
is poor, it makes little sense to detach poverty from the dynamics of development. For
countries that have been successful in increasing the well-being of the majority of
their populations over relatively short periods of time, the report shows, progress has occurred principally through state-directed strategies that combine economic
development objectives with active social policies and forms of politics that elevate the interests of the poor in public policy.

Evaluating Transportation Economic Development Impacts
http://www.vtpi.org/econ_dev.pdf
Understanding How Transport Policy and Planning Decisions Affect Employment, Incomes, Productivity, Competitiveness, Property Values and Tax Revenues. By Todd Litman, Victoria Transport Policy Institute

Evaluation Study on ADB Assistance for Public-Private Partnerships in Infrastructure Development
http://www.adb.org/Documents/SES/REG/SES-OTH-2009-31/default.asp Public-private partnerships have been gaining recognition in many of the Asian Development Bank’s (ADB) developing member countries as an important means of
mobilizing private sector capital and expertise for infrastructure investments and
service provision. This study evaluates the performance of ADB’s public and private
sector operations in support of public-private partnerships in the power, transport, and water sectors; and the development of related policy, legal, regulatory, and institutional frameworks.

Global Employment Trends for Youth
http://www.ilo.org/empelm/what/pubs/lang–en/docName–WCMS_143349/index.htm International Labour Organization (ILO), Report 2010

Global Report on Migration
http://cloud1.gdnet.org/cms.php?id=research_paper_abstract&research_paper_id=16338
This report captures the main results from Development on the Move: Measuring and
Optimising Migration’s Economic and Social Impacts, a joint project of the Global
Development Network (GDN) and the Institute for Public Policy Research (ippr). The
ground-breaking global research project, supported by a consortium of international donors, has gathered new, comparative qualitative and quantitative data about migration’s development impacts.

IFAD Rural Poverty Report 2011: Global food production must increase by 70 per cent http://tinyurl.com/33hct5m
The Rural Poverty Report 2011, released on 6 December 2010 by the International Fund
for Agricultural Development (IFAD), predicts that global food production will have to
increase by 70 percent in order to feed the expected world population of 9 billion by
2050. Boosting the agricultural sector in developing countries is therefore the key to combating world poverty in the coming decades, it stresses. Source: EuroStep.

Is a Financial Transaction Tax a Good Idea? A Review of the Evidence http://tinyurl.com/2dootvw
The Institute of Development Studies has undertaken a comprehensive review of the feasibility of financial transaction taxes (FTTs). We find that, worldwide, a
financial transaction tax on foreign exchange transactions could raise Us$26 billion.
In the UK alone it could raise US$11 billion (£7.7 billion), roughly the same as the
entire UK aid budget. Such a tax would be most effective if implemented by the key financial centres around the world, but a currency transaction tax could be
implemented by individual countries. However, an FTT is unlikely to reduce market volatility as claimed by some campaigners.

Multilateral Resource Allocation: Best Practice Approaches
http://tinyurl.com/23cxnns
ODI Project Briefings 51 by Tony Faint and Deborah Johnson.

OECD Studies on SMEs and Entrepreneurship
High-Growth Enterprises: What Governments Can Do to Make a Difference http://tinyurl.com/37sskrm
This report presents reports from 15 countries that provide interesting insights into
the operations of and challenges faced by high-growth enterprises as well as a policy survey of 340 programmes in 24 countries.

Remittances, Value Added Tax and Tax Revenue in Developing Countries http://www.cerdi.org/production/show/id/1208
Centre d’Etudes et de Recherches sur le Developpement International (CERDI) paper by CE Eberke.

Report denounces humanitarian aid politicisation, lauds EU
http://tinyurl.com/3yacltv
A report by the Good Humanitarian Donorship (GHD) initiative, an informal donor
network, ranks humanitarian aid donors according to their aid effectiveness, as rated by 475 senior representatives of aid organisations. The report finds that while bilateral aid from EU member states is becoming increasingly driven by politics,
multilateral EU aid distributed by the European Commission was ranked 6th place out of 37. The only EU member states judged to deliver more effective aid were Denmark, Ireland and Sweden. Source: EurActiv

Stemming girls’ chronic poverty
http://tinyurl.com/39932cb
A new report from the Chronic Poverty Research Centre investigates how to catalyse
development change by including girls (and boys) more prominently in development agendas.

Sustainable management in emerging countries
http://tinyurl.com/2w9rfjj
An analysis of German companies’ activities in India.

The Concept of Corporate Social Responsibility: a Philosophical Approach http://repub.eur.nl/resource/pub_21243/index.html
International Institute of Social Studies of Erasmus University (ISS) Research Paper 508 by Adele Lebano.

The Failure of Cross-border Financial Firms: New Thinking in the Aftermath of the Financial Crisis
http://networkideas.org/featart/nov2010/fa04_Andrew_Cornford.htm
The development of rules for handling insolvencies of financial and non-financial firms with operations in a number of countries (cross-border insolvencies) is a
long-standing item on the international regulatory agenda. In this context, the author Andrew Cornford analyses the measures proposed in various reports to address the problems associated with systemically important financial institutions.

The Financial Crisis and Lower Income Countries
http://www.diis.dk/sw101807.asp
Danish Institute for International Studies Working Paper 2010:35 by Sam Jones.

The future of EC trade policy 2010-2015
http://ec.europa.eu/trade/trade-growth-and-jobs/
In its discussion paper “Trade, Growth and World Affairs”, the Commission analyses how
trade is an engine for economic growth and job creation. It proposes a strategy to
reduce trade barriers, to open global markets and to get a fair deal for European
businesses. The overarching aim is to take a more assertive approach to ensure the benefits of trade reach European citizens.

The G20 as a Development Opportunity for the European Union
http://www.edc2020.eu/96.0.html
EDC2020 Policy Brief by Madeline R. Young, FRIDE, Opinion No. 6 – November 2010.

The Impact of the Crisis on Employment and the Role of Labour Market Institutions http://www.ilo.org/public/english/bureau/inst/download/dp202_2010.pdf International Labour Organization (ILO) Publication byWerner Eichhorst et al.

Trends and issues in international development cooperation
http://poldev.revues.org/142
Emerging economies and private donors provide an increasing proportion of aid.
Progress has been made in implementing the 2005 Paris Declaration on Aid Effectiveness
in a few fields, such as untying aid, but the results do not meet expectations. The approach, too often purely technical, omits taking fully into consideration the
political dimension which strongly affects aid effectiveness. The issue of overall
policy coherence receives renewed attention at a time when the debate about climate
change is leading development agencies to reconsider goals and strategies. Graduate
Institute of International and Development Studies (IHEID) study by Gérard Perroulaz.

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WTO: Trade likely to grow by 13.5 per cent in 2010

Following faster than expected recovery in global trade flows so far in 2010, WTO economists have revised their projection for world trade growth in 2010 upwards to 13.5 per cent. The WTO’s March forecast was a 10 per cent expansion in trade volumes. This would be the fastest year-on-year expansion of trade ever recorded in a data series going back to 1950. But such a large growth rate should be understood in the context of a severely depressed level of trade in 2009, when world exports plunged by 12.2 per cent. http://www.wto.org/english/news_e/pres10_e/pr616_e.htm