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African Economic Outlook 2009
The 2009 edition of the African Economic Outlook (AEO), jointly published by the Organisation for Economic Co-operation and Development (OECD), the African Development Bank (AfDB), and the UN Economic Commission for Africa, says the region has been gravely affected by the global economic downturn. Following half a decade of economic growth above 5 percent, the report says the continent can expect only 2.8 per cent in 2009, less than half of the 5.7 percent expected before the crisis. However, a rebound to 4.5 percent is expected for 2010. The authors also raise concerns that downward pressure on donor aid budgets due to the ongoing economic crisis could negatively impact official development assistance (ODA). On a positive note, the AEO says that because many countries have undergone prudent macroeconomic reforms in the past few years, Africa is better positioned to weather the crisis than it was ten years ago.
Navigating Out of the Crisis: A Trade-led Recovery - A practical guide for trade policymakers in Asia and the Pacific
The purpose of this guide, published by the UN Economic and Social Commission for Asia and the Pacific (ESCAP), is to sensitise policymakers as to various trade, investment, and trade facilitation policy tools which could be used to counter the economic and social impacts of the global economic crisis. Responding to the situation, which has severely affected global trade, is an unprecedented challenge for policymakers of the Asia-Pacific region, the authors say. The guide suggests that the crisis offers an opportunity for the relatively economically sound region to strengthen itself for the future by boosting its competitiveness. ESCAP recommends a regionally coordinated policy response as it will benefit most Asia-Pacific economies as they have grown interdependent as a result of regional integration initiatives and the establishment of intraregional supply chains.
Trade Essential to Recovery in Caribbean, Latin America: WTO, IDB
The heads of the WTO and the Inter-American Development Bank (IDB) say that trade is ‘imperative’ to economic recovery in Latin America and the Caribbean. The comments came during the Second Regional Review on Aid for Trade for Latin America and the Caribbean, which took place on 7 May in Montego Bay, Jamaica. Pascal Lamy, director-general of the WTO and Luis Alberto Moreno, president of the IDB stressed the importance of continued support of Aid for Trade in the region and cautioned that protectionism would hold the region back. “The WTO has started monitoring trade-related measures taken by our members during this crisis, as a device to provide transparency and, through peer pressure, pre-empt the threat posed by shift toward protectionism,” Lamy said. “And we know that retaliation would lead to retaliation, further choking trade as an engine of growth.” The Jamaica meeting acts as a prelude to a global Aid for Trade review, scheduled to take in early July in Geneva.
Multilateral Institutions to Offer Billions to Buoy African Economy
Several multilateral investors and lenders in have pledged to provide at least an additional US$15 billion to promote trade, strengthen the financial sector, and increase lending to help offset the negative impacts of the global financial crisis in Africa. The increased support is part of a coordinated response to prevent the global economic crisis from reversing decades of progress, growth, and investment in Africa. Institutions participating in the initiative include the World Bank, the African Development Bank, and the Agence Française de Développement. Those behind the initiative say that that pooling resources and expertise will enable governments and institutions to more effectively reduce the humanitarian toll in the region resulting from the global economic slowdown. Participating institutions aim to increase lending and investments, promote dialogue, and use a diverse range of instruments to effectively respond to the crisis and address longer-term structural issues that have traditionally hampered Africa’s economic growth.
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