Research note: Covid-19 support to businesses risks leaving behind companies in developing countries

Most governments in the world have announced, and are implementing, programmes to respond both to the health and economic consequences of Covid-19. However, the magnitude of responses to Covid-19 (including health responses and economic stimulus packages) by governments has varied considerably, from nothing to about half of GDP.[1]

A simple linear regression between the level of support and some possible explanatory factors – the forecast level of impact of Covid-19 on the economy, GDP per capita, and the level of government debt before the crisis – shows that not the severity of the anticipated economic impact Covid-19 but GDP per capita is the most important of these three factors (for more details see below).

New study launched to prepare for the EU Generalised Scheme of Preferences after 2023

Since 1971, the EU GSP scheme offers easier access to the EU market for goods exported from developing countries by eliminating or reducing import tariffs unilaterally. The current legal basis for the GSP, Council Regulation (EU) No 978/2012, will expire at the end of 2023. If no new GSP Regulation is enacted, only imports from least developed countries (LDCs) would continue to benefit from preferntial access under the "Everything But Arms" (EBA) arrangement.

Project Completion - External Evaluation of the European Union’s Policy Coherence for Development (PCD)

BKP just completed the External Evaluation of the European Union’s Policy Coherence for Development (PCD) by successfully holding a final presentation and discussion workshop in Brussels. The report produced by BKP provided relevant stakeholders with an overall and independent assessment of the EU PCD actions aiming to improve the impact of relevant EU policies. The final report can be viewed here.

Linked to the final report produced by BKP, the European Commission developed a Commission Staff Working Document - “2019 EU report on Policy Coherence for Development”

Innovative Financing for Development - Options for the EU

August 2017

 

Especially since the last economic crisis of 2008 discussions about innovative financing for development have gathered pace. In the 2011 Agenda for Change, the European Commission recognises that government and donor funds are largely insufficient to cover the substantial investments required to improve living conditions in developing and transition countries. This paper analyses key initiatives influencing the current reasoning behind financing of EU external aid measures, and presents options to pursue innovative financing for development by the EU.

How can companies in emerging markets acquire new technology?

In a blogpost on the World Economic Forum's Agenda website, Dan Ciuriak and Derk Bienen discuss three alternative modes of how developing countries can acquire technology: “build” (developing new technology in-house), “borrow” (attracting FDI), and “buy” (buying technology). The authors suggest that the third mode constitutes an alternative to the mainstream "build" and "borrow" modes worthwhile to be considered by policy-makers in developing countries, and provide some recommendations for its implementation.