Global climate and biodiversity outcomes will largely be determined in emerging and developing economies (EMDEs). We propose a four-pillar strategy to support climate and nature preservation in line with the economic interests of both developing and advanced countries. This would move beyond voluntary pledges to embed climate and nature objectives into the structures of trade, […]
Every year, the World Bank Group classifies the world’s economies into four income groups: low, lower-middle, upper-middle, and high. These classifications, updated each year on July 1, are based on the previous year’s Gross National Income (GNI) per capita, expressed in U.S. dollars using the Atlas method. The Importance of Income Classification A country’s income classification not only […]
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 […]
A growing number of urban areas around the world face water scarcity. Focusing on the prolonged drought that Cape Town experienced from 2015 to 2018, this column examines how adaptation shaped outcomes for the city’s residents and for its municipal water utility. While policy measures including higher prices and usage restrictions saved the city from […]
Artificial intelligence is widely seen as a transformative force for productivity and innovation. Yet, its macroeconomic implications remain uncertain, especially from a global perspective. This column shows how structural differences in AI exposure, preparedness, and access in advanced economies, emerging markets, and low-income countries shape the distribution of AI-induced productivity gains. While improvements in AI […]
The European Union is nearly on track to reach its main climate target for this decade, with countries’ existing CO2-cutting plans set to bring the bloc within one percentage point of the goal, the European Commission said on Wednesday. The EU is on course to reduce its net greenhouse gas emissions by 54% by 2030, […]
Advanced economies are still experiencing labour shortages in the aftermath of the COVID-19 pandemic. This column examines the high labour shortages across OECD countries, focusing on wage and non-wage job quality. Real wages have generally increased, but with differences between countries and industries. Beyond pay, job insecurity, poor working conditions, and exposure to health risks […]
President Trump’s sweeping “reciprocal tariffs” announced on 2 April sent shockwaves through the global economy. This column introduces the European Commission’s Spring Forecast, which depicts a resilient EU economy. Yet growth is set to remain modest, reinforcing the image of a continent buffeted by external shocks and mired in low growth. Tariffs, and even more […]
In 2018, after 3 years of droughts, the city of Cape Town in South Africa faced severe water shortages. Dam reservoir capacity had dropped to critical levels and the city was fast approaching “Day Zero” of no water availability. Desalination, new dams, strict water usage limits – all solutions were on the table. Solving the […]
Recent tariff measures by the US and countermeasures by its trading partners have dominated global policy debates. Using three economic models, this column shows how the tariffs impact trade flows, output, and welfare, especially in North America and China. In the short term, tariffs act as negative supply shocks for tariffing countries (depressing output while […]
