ET2006 ⁽¹⁰⁾

On GDP growth, India seems to be bridging the gap with China. But in the world markets, the story is dramatically different. Economic Times May 31 2006 With India now growing between 7% and 8%, a central question on the minds of many is whether it is now poised to match the accomplishments of China. The mood is generally optimistic In view of the impending demographic transition that will substantially raise the proportion of the young in India's population in the coming years, entrepreneurial talent and the forces of competition already unleashed by the liberalisation to-date, some see the shift in India's growth rate to the Chinese level inevitable. n view of the impending demographic transition that will substantially raise the proportion of the young in India's population in the coming years, entrepreneurial talent and the forces of competition already unleashed by the liberalisation to-date, some see the shift in India's growth rate to the Chinese level inevitable. More cautious observers say that catch-up in the growth rate with China is certainly possible provided India undertakes major labour-market reforms, trims…

The fight against corruption is surely a worthy cause on moral grounds. But the case for turning it into the principal instrument of development policy rests on much weaker foundation. The claim by Wolfowitz in the speech in Indonesia that corruption is 'one of the biggest threats to development in many countries' is just as hard to substantiate as the assertion by his predecessor, James D Wolfensohn, that rich country subsidies constitute the most important barriers to the development of the poorest countries Read full article Abstract: The World Bank president Paul Wolfowitz has placed the fight against corruption at the top of his development policy agenda. Citing allegations of bribery in the award of government contracts, he has gone on to block loans on projects in Bangladesh, India, Kenya and Uzbekistan. In a major policy speech delivered in Indonesia on April 11, he has announced a long-term strategy to deploy the Bank's resources to tame corruption in the developing countries. Under the strategy, he plans to place anti-corruption teams in many World Bank country offices and require Bank staff…

The recent best seller titled Freakonomics by Steven Levitt, winner of 2003 Clark Medal awarded to the best American economist below forty years, has sparked the interest of economists in providing surprising explanations of the phenomena observed in everyday life. This column is about a similar surprising explanation of a relatively recent experience. Read full article Abstract: The recent best seller titled Freakonomics by Steven Levitt, winner of 2003 Clark Medal awarded to the best American economist below forty years, has sparked the interest of economists in providing surprising explanations of the phenomena observed in everyday life. For example, crime rates in the major US cities fell significantly during the 1990s. Most past analysts had attributed this decline to increased incomes, better employment opportunities, ageing population and improved enforcement.

In their reply (Dec 23, 2005), WDR authors Francisco Ferreira and Michael Walton question my critique. Among other things, they point out that whereas the WDR 2006 is concerned with equality of opportunity, my critique focused on equality of income. This is puzzling since the bulk of my critique focused on policies that impact opportunities directly, not just through income. Read full article (adapted on FT)

Thanks to a handful of vocal free-trade skeptics among economists, pro-free-trade economists never have to fear being rendered redundant. In a recent article in The Guardian (December 12, 2005), Larry Elliott writes that according to Harvard economist Dani Rodrik, the experiences of Vietnam and Mexico illustrate why liberal trade policies contribute precious little to economic prosperity. But like the other arguments against trade liberalisation by Rodrik, this one also appears plausible at first sight but collapses in the face of careful scrutiny Economic Times January 25, 2006 Thanks to a handful of vocal free-trade sceptics among economists, pro-free-trade economists never have to fear being rendered redundant. In a recent article in The Guardian (December 12, 2005), Larry Elliott writes that according to Harvard economist Dani Rodrik, the experiences of Vietnam and Mexico illustrate why liberal trade policies contribute precious little to economic prosperity. "Take Mexico and Vietnam, he [Rodrik] says. One...has had a free-trade agreement with its neighbour across the Rio Grande. It receives oodles of inward investment and sends its workers across the border in droves. It is fully…