Five years ago, Albania faced a truly ominous situation. With Greece and Italy reeling from the euro crisis, remittances and capital inflows were falling and the economy suffered a severe slowdown. The fiscal deficit ballooned to over 7% of GDP, financed to a large extent by arrears, as access to external financial markets had collapsed and domestic interest rates were sky high.
Cambridge, Massachusetts – In the study of economic growth strategies, Harvard’s Center for International Development (CID) has added a major missing piece to the data landscape. The Center’s Atlas of Economic Complexity now features trade in services, including tourism, transport, finance,...
When Adam Smith wrote ‘The Wealth of Nations’ in 1776, the richest country in the world was four times richer than the poorest one. Today, Singapore is over 110 times richer than Burundi. What could possibly explain such an extreme divergence of the wealth of nations?
Economists have shown that these differences are too large to be explained by differences in the availability of land or capital – including human capital. So, they ascribe it to differences in the productivity with which land and capital are used,...
When presenting his economic stabilisation plan on August 17, Venezuelan president Nicolás Maduro proudly argued that no government has ever done it this way. He should have wondered why. Venezuela is undergoing an economic collapse without precedent outside of war or the fall of the Soviet Union.
This is accompanied by hyper-inflation. Annual inflation is running at over 80,000 per cent and the IMF has predicted it will hit 1m per cent this year. The price of the dollar has added three zeroes in 15 months.
Ricardo Hausmann on NPR's Planet Money: The Indicator podcast
The Venezuelan economy has collapsed. Years of economic mismanagement and a deepening political crisis have led to a recession that has almost no parallel in recent memory.
But explaining just how bad things have gotten is also really hard because the normal economic indicators that we use to measure a country's economy have started to sound so so unfathomable — 25,000% inflation, for example — that it feels impossible to get our heads around them.
Venezuela is in the news again. Through unprecedented treachery, President Nicolás Maduro awarded himself victory in the presidential election on May 20. Given that the blatantly pro-government electoral council had delisted the three main opposition parties and disqualified two major political leaders, much of the opposition boycotted the process. The two other candidates who participated did not recognize the result, given the many violations that took place. Neither did the United States, Canada, the European Union and most...
Reforming immigration law to allow free movement of people through progressive laws could tackle Sri Lanka’s chronic economic challenges of narrow exports, low Foreign Direct Investment (FDI) and limited innovation, a top expert said yesterday, outlining many examples of countries that have experienced growth spurts by opening up their labour markets.
Prof. Ricardo Hausmann is Director of Harvard’s Center for International Development and Professor of the Practice of Economic Development at the Kennedy School of Government. Delivering...
Some parts of the world do not follow a cycle, but may actually enjoy secular growth over the next decade or so. The only problem is that you will need courage and a lot of due diligence to take advantage.
The latest edition of the Atlas of Economic Complexity by Harvard’s Center for International Development was published last week. It shows the countries best positioned to grow thanks to their networks of diverse and transferable skills. Their projected winners might provide some:
Researchers at Harvard’s Center for International Development are predicting that South Africa's economy will grow at 4.9% annually until 2026. This‚ says banking's Michael Jordaan‚ "would be radically transformative".
It's also optimistic‚ as the International Monetary Fund recently forecast SA economic growth to strengthen to 1.5% in 2018 and to 1.7% in 2019.
Harvard's CID report ranks South Africa in 66th place.
India tops the list of the fastest growing economies in the world for the coming decade and is projected to grow at 7.9 per cent annually, ahead of China and the US, according to a Harvard University report.
The Centre for International Development at Harvard University (CID) said in new growth projections on Thursday that countries that have diversified their economies into more complex sectors, like India and Vietnam, are those that will grow the fastest in the coming decade.