• Growth and Governance in Africa: Towards a Sustainable Success Story

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    by Marco Annunziata, Chief Economist, GE

     

    Africa is increasingly seen as the most promising growth region in the global economy. Its potential has long been recognized, given abundant natural resources and a large, young and fast-growing population. Over the past decade this potential has begun to turn into actual performance, as economic reforms and improvements in governance and institutions have broken a long history of economic instability, conflict and corruption.

    If this time it is for real, Africa represents a tremendous opportunity for the global economy and for global industry players, who can contribute to developing the massive endowment of oil and other commodities, building the infrastructure needed to foster economic growth, from railway links to power generation, and improving both distributed and urban health care provision. African businesses are also poised to reap substantial rewards: they recognize the disruptive potential of accelerating innovation as the digital world meets the physical, and they are ready to become enthusiastic early adopters of new technologies. Most importantly, this is a tremendous opportunity for Africa’s citizens to enjoy a rapid and sustained rise in living standards. – Read more

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  • Exiting the Eurozone Crisis

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    by Harald Uhlig
     
    Perhaps, we will be lucky. Since the announcement of ECB president Draghi to “do whatever it takes”, yields on sovereign bonds in Europe have declined. The Cyprus crisis has been contained, for now. Italy has a new government. Perhaps, things gradually quiet down. Perhaps growth returns as it usually does at the end of recessions: not by government interventions, but by renewed entrepreneurial innovation and market activities, as consumers, workers and firms seek to return to their normal lives and competitive spirits, as the wait-and-see paralysis regarding the macroeconomic risks recedes, as reasonable bargains get struck to resolve remaining logjams. But perhaps, we will not be so lucky… – Read more

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  • Arab Spring: the Economic Consequences

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    by Mohsin Khan
     
    The Arab Spring that swept the Middle East starting in early 2011 dramatically altered the political landscape of the region for the better. It signaled an end to dictatorships and the beginning of a democratic transition process in the Arab world. Will the political transition lead to a continuation of the market-oriented economic reforms that most Arab countries had embarked on over the past two decades, or will more populist regimes emerge that will undo these reforms and adopt policies catering primarily to the immediate demands of the restive and empowered public? Mohsin Khan discusses the perspectives of the MENA region in this paper presented at the Fifth Advantage Forum (Milan, May 13, 2013). – Read more

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