The new president should negotiate with shareholders to create a new facility that would heavily subsidize climate-friendly loans—for example, to encourage China and India to switch faster from coal to hydropower, natural gas, and renewables; to help Bangkok, Dhaka, and Lagos invest massively in urban subway systems to get cars off the roads; and to help Indonesia and Brazil aggressively tackle the bribery and corruption that are fueling deforestation.
The World Bank must also find fresh approaches to achieving the Sustainable Development Goals that the United Nations has set for the year The development community, for example, had hoped to meet the global goals for infrastructure by leveraging billions of public dollars to attract trillions of private dollars from institutional investors for projects that promised long-run financial returns.
This is the hope that Kim referred to in his job switch to a private equity fund specializing in clean power. To play its part, the World Bank needs to shift, especially in its private lending arm, from direct lending to mobilizing private investor capital. That will require the next president to champion changes in the rules and incentives inside the bank. To some extent, all this will involve pushing on an open door; resistance inside and outside the bank to this shift in focus is not about whether to do so but how and at what pace and taking what kind of risk. Then there is Africa, surely of all regions the single biggest development challenge in this century.
Remarks by the President on Fiscal Policy | uvinigyz.tk
But investing well in Africa, and particularly in its fragile states, is hard, even where country governments are willing to take on tough political and anti-corruption reforms to ensure investments contribute to long-run growth. But the African bank is more owned and trusted by African borrowers and has untapped potential to work with borrowers on tough reforms.
What makes sense is for the two banks to cooperate in a big way, combining World Bank financing with African Development Bank regional ties. The World Bank has a history of arrogance and competition with the regional development banks, and Kim resisted shareholder efforts to engage with his regional counterparts.
The next president must change that—especially in the case of Africa. Finally, China.
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Beijing is now the biggest—by far—lender to developing countries, with its China Development Bank capitalized at many multiples of all the legacy multilateral banks. Its Belt and Road Initiative involves big loans for infrastructure to relatively poor countries already vulnerable to debt distress, raising concern that the initiative is a vehicle to buy power and influence independent of the merits of the projects being financed.
But the World Bank and the other multilateral banks cannot satisfy alone the demands of poorer developing counties for financing critical infrastructure; Africa especially needs the financing China can provide. The next World Bank president should be a leader in working out with the Chinese their greater adherence to best lending and development practices, persuading them that doing so is in their own enlightened long-run self-interest. African and other governments are increasingly wary of Chinese deals—a fact that China seems to have noticed. Everyone knows why they are not as good.
Good News For 12222: Mexico's New President AMLO Is Scaring Wall Street
AMLO promised to put an airport construction project up for a referendum vote: up or down, yea or nay. The nays had it. The airport project was killed and AMLO was a bit slow in affirming bond holders would be paid. This is not starting off good for Mexico. It's been as strong as For stocks and bonds heading into , Mexico is a neutral weight at best, underweight for most. AMLO is largely to blame for this. But it is that uncertainty that creates opportunities as risk-averse investors prefer to take money off the table then get beat up by the policy surprises of a new president.
Emerging market investors are underweight Mexico heading into Blame AMLO. More money for schools?
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While conventional wisdom holds that there is a trade-off between equality and economic growth, President Clinton began to see that growth and equality can in fact go hand in hand. A growing body of research supports that view today. And a later study by Pastor and professor Chris Benner at the University of California, Davis, found that concentrated poverty, income inequality, and racial segregation drags down growth in older industrial cities—where growth is most needed—far more than it does to cities with stronger markets.
When President Clinton spoke about three values, he spoke about the importance of community, alongside opportunity for all and responsibility from all. And President Clinton believed a nation that lives as a community must value all its communities. Over the course of his administration, he promoted bold new programs to help American communities thrive—particularly those located in inner-city and poor rural areas—and to give residents of those cities the resources they needed to start a business, give back to their community, or feel safe on the streets.
Those programs included:. And years of big federal deficits had sapped investor confidence and forced interest rates up for everybody.
Introduction: Why infrastructure matters
Several months prior, in February , consumer confidence had hit its lowest level since The Omnibus Budget Reconciliation Act of made significant cuts in spending, balanced over the course of five years. Just as important, President Clinton insisted that deficit reduction be accomplished such that the burden was borne fairly.
These included:. By the federal government enjoyed its first budget surplus in nearly three decades—on its way to four straight years in the black. By turning the federal budget around, President Clinton accomplished three critical things. First, he reduced federal borrowing as the economy improved, allowing that capital to flow to more productive uses and giving the private sector a needed boost. Second, he allayed the fears of an impending debt crisis, taking that issue off the table.
The Clinton administration also took steps to prepare the United States for the global economy of the future.
President Clinton spoke frankly about the challenges globalization posed to workers and the economy, arguing that nations around the world could not dam up the tides of globalization nor tell their people to sink or swim on their own. Instead, he offered a clear vision for how America could thrive in the emerging global economy, both under his watch and long after his administration had come to a close. First, Clinton saw that the global economy was only as strong as the sum of the skills, the ideas, and the education of millions of individuals around the world.
Second, President Clinton advocated for robust investment in science and the technologies that would provide the foundation for the future economy. As Clinton told students at the California Institute of Technology in , American technology leadership was central to the strong growth the country enjoyed under his administration—and robust future leadership would be needed for the United States to continue to benefit from all the advantages that leadership conferred in the future.
Third, President Clinton continued to press for open markets while laying out a vision of how trade could better benefit everyone. He argued that increased trade would boost U. But President Clinton also made clear that the international community had a fundamental responsibility to make sure that open trade actually lifted living standards and protected worker and human rights.
Rather than bringing America down, Clinton maintained that it was important to help the global economy lift up other nations and make life better for them and better for us. To that end, he advocated for strong safety nets that empower the poorest people and make sure that everyone can weather increasingly global economic storms.
Performance in the near term
He tried to provide for the workers who may be displaced by globalization both by beefing up our export promotion activities and by increasing funding for training displaced workers. He signed an executive order requiring careful environmental review of major trade agreements and urged global cooperation to help every nation develop along a cleaner path. And he emphasized the importance of helping workers everywhere feel the dignity of work, the respect of basic rights in the workplace, and the ability to help shape their own economic future.
No president deserves total blame or total credit for the economic outcomes that arise under his watch.
Indonesia election: China's complicated role in the country's future
He removed potential obstacles by putting the federal budget onto a sustainable path that eventually resulted in surpluses, and by adroitly resolving international economic crises that threatened to derail U. And he laid the foundation for continued growth by investing in infrastructure and education, and by protecting the safety net, bringing millions out of poverty and into the workforce. These are successful strategies that could and should be repeated.
The consequences of that dangerous experiment are clear, and the missed opportunities cannot be regained. Despite the fact that both Presidents Clinton and Obama inherited challenging economic circumstances from their predecessors, the situation today is far from analogous to the one in the early s.
Today we are facing the prospect of a long, hard climb out from, by far, the worst economic crisis in 70 years. In the fourth quarter of , the quarter before President Obama took office, the economy contracted at an annualized rate of nearly 9 percent. That was the second-sharpest quarterly contraction on record, followed in the first quarter of by the fourth-sharpest contraction. In the worst quarter during the recession of the early s, the economy shrank by 3.
Now, as then, we face an economy working for too few of us, and the top 1 percent not shouldering their share of the burdens to pay for the mistakes of our past or to invest in our future. Now, as then, our federal government has a role to play to lay the foundations for future growth and prosperity so that the private sector can do what America does best—innovate and lead. And now, as then, the middle class has been under assault and must be strengthened.
A record of accomplishment In December President-elect Clinton convened business owners, labor leaders, and economists for an economic summit in Little Rock, Arkansas. Middle class led growth Fundamentally, the middle class is the engine of U. They enacted: An increase in the minimum wage. The wage increase boosted earnings for nearly 10 million Americans, almost half of whom were working full time.
Furthermore, empirical studies conducted in the aftermath proved that there were no negative impacts on overall employment. The Family and Medical Leave Act. The very first law that President Clinton signed was the Family and Medical Leave Act, which ensured parents could take up to 12 weeks of unpaid leave to care for a newborn or a sick relative without risking their job. Over the next eight years, more than 35 million workers took advantage of its protections. And though critics warned that the FMLA would hurt businesses, subsequent research showed that businesses had no trouble complying with the new law.
The child tax credit. Middle-class tax cuts were central to the budget deal President Clinton negotiated with Congress in