August 7, 2019 | Otaviano Canuto - Principal, Center for Macroeconomics and Development
This note approaches the relationship between natural wealth and economic growth, using the case of Sub-Sahara African economies as an illustration. Delving into recent World Bank reports, it highlights how a sustained positive correlation between natural capital and GDP growth happens through the transformation of the former into other forms of assets: produced capital, human capital and other intangible assets. Governance features and the quality of macroeconomic policies are of the essence for such a benign trajectory to take place.
June 11, 2019 | Otaviano Canuto - Principal, Center for Macroeconomics and Development
Friday night, US President Donald Trump announced by Twitter that he would suspend the implementation of tariffs on Mexican imports, which would start with 5% on Monday, June 10, to reach 25% in October.
June 5, 2019 | Otaviano Canuto - Principal, Center for Macroeconomics and Development
Multilateral Development Banks (MDBs) have two financing windows, with different terms, dedicated to low- and middle-income countries. Countries are presumed to cross those windows as their income per capita rises, with middle-income countries (MICs) eventually “graduating” to a non-client status once they reach some criteria.
May 4, 2019 | Otaviano Canuto - Principal, Center for Macroeconomics and Development
The “middle-income trap” has become a broad designation trying to capture the many cases of developing countries that succeeded in evolving from low-to middle-levels of per capita income, but then appeared to stall, losing momentum along the route toward the higher income levels of advanced economies.
April 12, 2019 | Otaviano Canuto - Principal, Center for Macroeconomics and Development
Next week, the 2019 Spring Meeting of the International Monetary Fund (IMF) and the World Bank will take place in Washington, in this 75th year since the birth of the two institutions. Christine Lagarde, the IMF's managing director, speaking on Tuesday at the US Chamber of Commerce, offered an appetizer about the macroeconomic projections to be released.