Developing nations to grow faster in 2004
WB report says
Star Business Report
Although the growth of South Asia declined in 2002, the World Bank (WB) predicts the developing nations will grow faster than the industrialised countries in 2004.A WB report launched in New Delhi yesterday said South Asia's growth remains above the industrialised world's anaemic 1.5 per cent growth for 2003. It however projects the region's growth in 2002 at 4.2 per cent, down from 4.9 per cent in the previous year due to an economic downtrend. "The slowdown in the region can be traced to adverse weather conditions and a decline in agriculture output in India, Nepal and Bangladesh," it said. Titled 'Global Economic Prospects 2004: Realising the Development Promise of the Doha Agenda' the report has a detailed overview of the world economy and the near-term outlook. The report was launched on the eve of a meeting of the world's trade ministers in Cancun next week that will review progress on WTO negotiations on the Doha Agenda. Aaditya Mattoo, lead economist and Dominique Van Der Mensbrugghe, senior economist with the 'Development Prospects Group' of the WB, presented the findings of the report from New Delhi. The WB Dhaka Office was linked via video conferencing during the presentation "Developing countries are expected to be somewhat more buoyant than industrial countries, growing at 4 per cent," the report said, adding the developing economies will grow at 4.9 per cent in 2004 if the recovery stays on track. On the other hand, the report sees a modest pick-up in the industrial world's growth next year at 2.5 per cent. About the WTO ministerial conference it said a trade deal that addresses the concerns of developing nations could spur global growth and reduce poverty by as much as 144 million people by 2015. The report identified some of the key elements of a trade deal that could contribute to development. It said progress in Cancun could bolster investors' confidence and create momentum towards a more significant WTO agreement that would spur trade. It would eventually raise incomes around the world, leading to a substantial reduction in global poverty. The report also noted that developing countries, especially dynamic middle-income nations can contribute to a good 'Doha deal' by agreeing to undertake trade liberalisation measures that would help boost global trade. The report points to inequities in the world trading system that drag down export growth in developing countries.
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