The prosperity and economic transformation of Europe and Central Asia (ECA) hinge on making energy reliable and affordable for all. Across the region, many countries are prioritizing energy efficiency and renewable energy as part of their development strategies —not only to strengthen energy security, but also to create jobs, foster innovation, and lower costs. Renewables […]
Over the past two decades, many developing countries have made remarkable progress in reducing poverty, expanding access to education and health care, and investing in infrastructure. These gains were the result of sound national policies and coordinated efforts by the international community, often financed through responsible borrowing. But the road ahead looks more precarious. Debt […]
In January 2026, the European Union will require importers of certain carbon-intensive goods to pay for their products’ embodied carbon emissions. The policy, known as the Carbon Border Adjustment Mechanism (CBAM), could raise the cost of exporting these goods to the EU market, potentially affecting the competitiveness of exporters. To help developing countries assess the potential […]
“When I tried to find work in the handmade hammock industry, a traditional craft in my area, I only lasted two months because I had no one to care for my two-year-old son,” shares Keylin Aguilera, a young rural woman from Orocuina, Honduras. You may find that this is a common scenario across rural Honduras, […]
The world is seriously off track to meet global nutrition targets. In fact, in some countries, statistics are moving in the wrong direction. Stunting remains a widespread problem, with nearly 148 million children affected, while at the other end of the spectrum, millions of adults are either struggling with obesity or suffering from non-communicable diseases (NCDs). […]
Developing countries invest about $1 billion annually to train millions of aspiring and existing entrepreneurs. While significant, this investment doesn’t fully address the shortage of expertise needed to better support micro, small, and medium enterprises (MSMEs) or to design programs to improve their access to finance, markets, and technology. So, what is limiting MSMEs from […]
Banking crises have repeatedly inflicted serious damage on the real economy. This column discusses a new proposal for a public liquidity backstop in Switzerland to support the orderly resolution of systemically important banks in times of crisis. While such a backstop can deliver substantial ex-post benefits, it could also encourage excessive leverage and risk ex-ante […]
The introduction of value added taxes has been widely perceived as successful, boosting government revenue and stimulating industrialisation. This contrasts with the empirical finding that, in countries that are heavily dependent on exports of natural resources, the introduction of VAT has led on average to lower tax revenues and did not stimulate industrialisation. The findings […]
Increasing women’s labour force participation and career progression is a key priority for policymakers in developing and developed economies alike. A central question is whether economic development and rising incomes naturally lead to greater female labour market engagement. This column highlights that the answer depends critically on prevailing gender role attitudes. In societies with more […]
Few economic debates have lasted as long as the 160-year debate concerning the effects of Italian unification on the economies of Italy’s South and North. This column proposes a way to move the argument forward. The authors estimate the causal effects of unification on the agricultural share, literacy rates, and railway density in the South […]
