Read more about the article China’s renminbi needs convertibility to internationalize

China’s renminbi needs convertibility to internationalize

Commercial transactions and reserves of central banks and other global public investors could strengthen the position of the Renminbi as an alternative currency to the dollar, euro, yen and pound sterling. However, the qualitative leap towards the internationalization of the Chinese currency as a full reserve currency will only happen when confidence in its convertibility is sufficient to convince unofficial (private) investors to hold much more reserves denominated in it.

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Read more about the article Moeda chinesa precisa de conversibilidade para internacionalizar, escreve Otaviano Canuto

Moeda chinesa precisa de conversibilidade para internacionalizar, escreve Otaviano Canuto

Enquanto transações comerciais e reservas de bancos centrais e outros investidores públicos globais poderão reforçar a posição do Renminbi como moeda alternativa ao dólar, euro, yen e libra esterlina, o salto qualitativo para a internacionalização da moeda chinesa como moeda reserva só ocorrerá quando a confiança em sua conversibilidade for suficiente para convencer investidores não-oficiais (privados) a guardar reservas nela denominadas.

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Read more about the article Development through gender equality

Development through gender equality

Empirical evidence shows that gender inequality, including from legal gender-related restrictions, leads to the loss of growth opportunities, particularly in countries at earlier stages of development. The adverse effect of legal barriers to women’s participation in economic activities remains significant for countries at different stages of development. Time is now for investing in women and ensuring countries and the world can honor commitments and achieve the Sustainable Development Goals agreed upon to ensure a prosperous and sustainable world for generations to come.

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Read more about the article Will Another Taper Tantrum Hit Emerging Markets?
Finance investment stock market chart graph currency exchange global business fintech ++The World map texture derived from public domain NASA: http://visibleearth.nasa.gov. Traced in Illustrator. File created on November 29 2018++

Will Another Taper Tantrum Hit Emerging Markets?

Market movements this month have led to renewed fears that changes in US financial and monetary conditions will trigger a painful wave of capital flight from emerging markets, as happened in 2013. But times have changed, and the greatest risks to emerging markets now lie elsewhere.

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Read more about the article Matchmaking Private Finance and Green Infrastructure

Matchmaking Private Finance and Green Infrastructure

The contrast between the scarcity of investments in infrastructure – particularly in non-advanced economies – and the excess of savings invested in liquid and low-return assets in the global economy deserves to be confronted. Greening infrastructure in non-advanced economies would benefit from being able to attract greenbacks into the business. Building a bridge between private finance and (green) infrastructure would need the development of pipeline of projects with homogeneous regulations and standards, as well as with minimum mismatch between risks and comfort of private investors to manage them along project stages.

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Read more about the article Como verdejar a infraestrutura

Como verdejar a infraestrutura

O contraste entre a escassez de investimentos em infraestrutura —particularmente em economias não desenvolvidas —e o excesso de poupança aplicada em formas líquidas e de baixo retorno na economia global merece ser confrontado. “Verdejar” a infraestrutura em economias não avançadas se beneficiaria da viabilização de atrair verdinhas para o negócio.

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Read more about the article Lost in transition: developing countries in the global economy

Lost in transition: developing countries in the global economy

The growth and productivity performance of emerging market and developing economies since the 2008 global financial crisis failed to repeat the achievements of the previous decade. Besides frustrating expectations that they might become the new growth pole in the global economy, their convergence to per capita incomes of advanced economies has suffered a setback. Nonetheless, the path of policies and reforms to be pursued in that direction remains the same. This is something accentuated by the coronavirus pandemic crisis.

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Read more about the article A novela do Fed, escreve Otaviano Canuto
Cedulas, dinheiro, DOlar. Brasilia, 03-09-18. Foto: Sérgio Lima/Poder360

A novela do Fed, escreve Otaviano Canuto

Uma delicada transição está em curso na economia dos EUA. Tanto autoridades fiscais quanto monetárias já deram sinais claros de não contar com –e desejar– o retorno aos patamares de inflação prévios à pandemia, algo inclusive manifesto na mudança de 2% ao ano para média e não mais teto. Agora, que critérios adotar para considerar ser a hora de apertar para impedir que uma inflação acima de 2% contamine credibilidade e expectativas é algo ainda longe de clareza.

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Read more about the article The Global Economy and the Pandemic

The Global Economy and the Pandemic

There remains tremendous uncertainty and prospects of a post-pandemic recovery vary greatly across countries, as it is bound to happen at different paces. And the divergence of per capita incomes in the world is rising as an aftermath of the pandemic. The pandemic will leave scars in labor markets and income distribution, besides higher public debts as a legacy. A higher pace of automation of jobs, as well as a partial reversal of globalization are also to be expected.

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Read more about the article How to heal the Brazilian economy

How to heal the Brazilian economy

The Brazilian economy has been suffering from a double disease in the last few decades: a combination of anemia in productivity increases and an obesity of the public sector. On the one hand, the mediocre performance of productivity in Brazil in recent decades has limited its GDP growth potential. On the other, the expansion of public spending has become increasingly incompatible with such limits on the potential expansion of GDP, particularly since the growing public spending has not achieved commensurate socioeconomic results.

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Read more about the article Otaviano Canuto’s Infoparlament Keynote Speech on the Pandemic, Digital Transformation, Finance, and Taxing Tech

Otaviano Canuto’s Infoparlament Keynote Speech on the Pandemic, Digital Transformation, Finance, and Taxing Tech

Our Senior Fellow and former World Bank Vice-President, Otaviano Canuto, gave the Keynote Speech at Infoparlament online. Check out his though on the pandemic, digital transformation, finance, taxing tech and more in the video. For more related content, get to know our fellow & browse through his publications, videos & more here: https://bit.ly/3glwiny

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Read more about the article Financial Globalization and Inequality

Financial Globalization and Inequality

Inequality is nowadays one of the most important issues facing many economies around the world, not only in developing countries but also in advanced and emerging ones. Today, there is a new evidence that has been highlighted by several economists and international institutions and that shows that the fight against rising inequality is not only beneficial from an equity, political and social point of views but it is also beneficial from an economic point of view and can boost economic growth in the long run. In this podcast, Mr. Otaviano Canuto, Senior fellow at the Policy Center for the New South and a former vice-president at the world bank joined our economist Hamza SAOUDI to discuss the root causes behind the increase of within countries inequality and the main policies that African countries should prioritize in this critical time so to ensure a sustained and inclusive recovery.

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Read more about the article Brazil and South Korea: Two Tales of a Middle-Income Trap

Brazil and South Korea: Two Tales of a Middle-Income Trap

The middle-income trap may well characterize the experience of Brazil and most of Latin America since the 1980s. Conversely, South Korea maintained its pace of evolution, reaching a high-income status. Such divergence of economic growth can be related to their distinctive performances of domestic accumulation of technological and organizational capabilities. Their different approaches to global value chains and trade globalization reinforced such discrepancy in domestic accumulation processes.

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Read more about the article Recuperação global pode não salvar a América Latina

Recuperação global pode não salvar a América Latina

As enormes disparidades na disponibilidade de vacinas entre as economias avançadas e em desenvolvimento podem exacerbar o que o FMI chamou de “recuperações divergentes” - com terríveis consequências para a América Latina. Uma recuperação robusta nos Estados Unidos, União Europeia e China, embora amplamente benéfica para a economia global, esconde alguns riscos importantes para aqueles que ficam para trás. Uma recuperação pós-COVID bem-sucedida na América Latina deve ser definida como um ponto de inflexão para padrões de crescimento mais resilientes, inclusivos e produtivos.

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Read more about the article Global Recovery May Not Be Enough for Latin America

Global Recovery May Not Be Enough for Latin America

The massive vaccine disparities between advanced and developing economies may exacerbate what the IMF has dubbed “divergent recoveries” – with dire consequences for Latin America. A robust recovery in the United States, European Union and China, while largely beneficial to the global economy, conceals some important risks for those falling behind. A successful post-COVID recovery in Latin America should be defined as an inflection point towards more resilient, inclusive, and productive growth patterns.

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