NEWS/OPINION

Planes flying over map

Uncovering New Insights For How Business ‘Know-How’ Impacts Economic Growth

January 20, 2016

MasterCard data helps reveal how ‘know-how’ moves around the world


Cambridge, MA
– A unique research collaboration between the Center for International Development (CID) at Harvard University and the MasterCard Center for Inclusive Growth is uncovering new insights on the dynamics of global business travel and its impact on economies. Through the first-ever...

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Q&A with Ricardo Hausmann

December 16, 2015

Progreso, Fundacion BBVA MicroFinanzas

What do you think are the key determinants of a country’s economic and social development?

Life in modern-day society is complex. It requires numerous complementary ingredients and, if just one of them is missing, it will have huge negative effects. Thus, two equally poor countries may suffer from the absence of very different ingredients. This is also why simple recipes, such as education, microcredit or “institutions”, are inadequate answers. But if I had to come up with a synthetic vision to encompass all developing countries, I would say that the secret to development or, in any case, the most difficult ingredient to accumulate is collective know-how or knowing-how-to-do things. The secret to prosperity is technology, but technology is expressed in three kinds of elements: tools or equipment, codes or prescriptions, and know-how or tacit knowledge. While tools and prescriptions are easy to disseminate, know-how is hard to spread, because it is acquired slowly through imitation and repetition, in the same way that we learn to walk or learn a language as children. Nobody learns to play a sport or diagnose a patient by reading about it. It requires years of practice.... Read more about Q&A with Ricardo Hausmann

How Should We Prevent the Next Financial Crisis?

December 16, 2015

By Ricardo Hausmann (originally published in GrowthPolicy)

Financial crises are a bit like airplane crashes. Airplanes, and banks, operate well most of the time. But every so often they crash with very bad consequences and our strategy is to do a forensic study of the last crash, see what we learn, and incorporate that learning into the system so that we might prevent the recurrence of the same kind of crash. In aviation, that has made air travel incredibly safe, to the point that, right now, the Civil Aviation Board does not only analyze crashes but they also analyze “near misses” because there are so few crashes that it’s very hard to keep on learning. So near misses are a way to reduce the likelihood of bad things happening that have not really happened.... Read more about How Should We Prevent the Next Financial Crisis?

Shanghai skyline at night

What Should We Do About Inequality?

December 16, 2015

By Ricardo Hausmann (originally published in GrowthPolicy)

Inequality is the result of many different phenomena. Some of them should be a source of policy concern while others should not. My main problem is the inequality that arises from differences in productivity—namely, differences in productivity across regions, across cities, within cities and across social groups. We know that there are huge differences in income across countries of the world: the richest countries are 200 to 300 times richer than the poorest countries in per capita terms. That’s inequality at the global scale.... Read more about What Should We Do About Inequality?

The Import of Exports

November 26, 2015

CAMBRIDGE – Should a country’s development strategy pay special attention to exports? After all, exports have nothing to do with satisfying their people’s basic needs, such as education, health care, housing, power, water, telecoms, security, the rule of law, and recreation. So why give precedence to satisfying the needs of distant foreign consumers?

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Pathways to Inclusive Growth: Corner Store 2.0

November 23, 2015

By Busi Radebe --This blog was originally published on the African Policy Journal

Growing up in the 80’s, it was common for low-income households to visit the city once a month to buy their supply of groceries. The corner stores catered for their grocery needs throughout the month. For the business owner, your typical customer was not the most sophisticated. You knew your customers...

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México como nunca se ha visto: Atlas de Complejidad Económica

November 4, 2015

La Alianza para el Gobierno Abierto, de la que México es miembro fundador, es una iniciativa multilateral que tiene como objetivo hacer a los gobiernos más transparentes, eficientes, que tengan una mejor rendición de cuentas e incentiven la participación ciudadana.

La semana pasada tuvo lugar en nuestro país la Cumbre Global de la Alianza para el Gobierno Abierto (AGA) México 2015, como espacio de diálogo entre sociedad civil y gobierno donde...

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visualization of world trade

"The Globe” Generates Innovative 3D Visualizations of World Trade

October 15, 2015

Cambridge, MA – Data visualization researchers at Harvard’s Center for International Development (CID) have unveiled The Globe of Economic Complexity – an interactive tool which colorfully captures $15 trillion in world trade data in cutting-edge 3D visualizations.

Powered by the UN’s international trade data, the Globe uses “confetti” or dot-based representation to generate dynamic maps, stacked graphs and network diagrams. The Globe is a spin-off of...

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Places are Poor, Not People

Places are Poor, Not People

October 8, 2015

Inclusion Hub spoke with Dr. Ricardo Hausmann, director of Harvard's Center for International Development, about how those who are excluded must be included in the inclusive growth process through interventions to increase their productivity

The Harvard Center for International Development (CID), The World Economic Forum’s Global Agenda Meta-Council on Inclusive Growth and the MasterCard Center for Inclusive Growth convened the Symposium on Inclusive Growth and...

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