Americans have three choices regarding the low-paying, often hazardous jobs most don’t want: keep foreign labor here, continue to import the needed products, or use robots. To pretend otherwise is doing everyone a disservice.
A small pilot project between the US and Haiti showed that the US could directly and effectively assist Haitian families to earn dignified livelihoods—at negative cost to US taxpayers. That is, the two countries could cooperate for development in a way that actually adds value to the US economy. It did this with short-term work visas.
The Trump administration has imposed a number of entry restrictions through executive order, justifying them on national security grounds. But one additional set of concerns regards the economic costs of tightening visa restrictions, which can be considerable even when looking solely at temporary visitors. While the current bans would likely have a limited economic impact on the US through reduced tourist and business travel, the extension of restrictions could carry increasingly heavy economic costs.
As China’s growth slowed in recent years, India surpassed it to become one of the world’s fastest growing economies. But can India sustain the pace, and will the rest of the region follow? Here's how South Asia can exploit today’s globalization opportunities more effectively.
Beginning this Friday, the Annual Meetings of the IMF and World Bank will take place against the backdrop of a still-sputtering global economy, a growing number of displaced people, and a warming climate. In the face of these headwinds, a major priority for the multilaterals has to be to energize their members to spur global growth while also helping to address the challenge of global public goods.
This paper suggests a reinterpretation of global growth—encompassing notions of unconditional convergence and the middle income trap—in the past 50 years through the lens of growth theory. The last 20-30 years have been a golden era of convergence, challenging the new conventional wisdom of secular stagnation.
Amartya Sen’s famous study of famines found that a nation’s people died not because of a food shortage but because some people lacked entitlements to that food. In a new CGD working paper with Chris Hoy, we ask if a similar situation is now the case for global poverty: are national resources available but not being used to end poverty?
Yesterday at the White House Summit on Global Development, as President Obama outlined the programmatic successes of his administration’s global development policy (all genuine and worthy of acclaim), he didn’t even bother to mention the response to the global financial crisis that consumed his administration for much of its first year. Yet, when we consider just how perilous the economic conditions were for the United States and the world during that time, it is not unreasonable to conclude that the cause of global development was served at least as much by these efforts than by any single development initiative launched by an American president.
In spite of the attention received by the short-term crisis, Brazil faces a more serious problem, namely a long-term lack of growth or even perspectives of growth. If Brazil reforms its economic institutions and puts an end to state capitalism and economic nationalism, its labor productivity will grow again at high rates.
After several starts and stops, the Nigerian government has finally removed fuel subsidies, resulting in an overnight price hike of 67 percent. The economic logic of subsidy reform is clear. What’s notable, and potentially problematic, is that the government is planning to use any savings from lifting the fuel subsidy in the regular budget.