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Atlas of Global Development

Atlas of Global Development

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'This is an excellent, up-to-date source book which will be invaluable for students of, and staff teaching, higher levels of geography .... a clear, concise, easily-accessible and well-illustrated volume.' - Geographical Association, United Kingdom
'This is an excellent, up-to-date source book which will be invaluable for students of, and staff teaching, higher levels of geography .... a clear, concise, easily-accessible and well-illustrated volume.' - Geographical Association, United Kingdom

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Published by: WorldBankPublications on Apr 05, 2011
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06/05/2015

Sections

data.worldbank.org/atlas-global/trade

See pp. 6–7 for more information

80

Foreign direct investment flows to
developing economies have increased

Source: World Bank’s Global Development Finance and
World Development Indicators database

Net inflows to developing economies ($ billions)

-50

0

50

100

150

200

1995

2000

2008

Foreign direct
investment

Portfolio equity
flows

External
debt

Agricultural and textile products are subject to higher trade restrictions

Simple mean applied tariff (%)

Agriculture

1998

2008

Manufacturing

1998

2008

Textiles

1998

2008

Source: World Bank estimates, based on data from the UN Conference on Trade and Development’s
Trade Analysis and Information System database and UN Statistics Division’s Comtrade database

On imports from
high-income economies

On imports from
high-income economies

On imports from
developing economies

On imports from
developing economies

Imposed by high-income economies

Imposed by developing economies

0

5

10

15

20

25

41 percent of global GDP in 2009, and trade in services fell
to 11 percent of GDP.

High-income economies remain the principal source and
destination of international trade, but more developing economies
are participating, and trade with other developing economies
is growing. Developing economies now account for almost
30 percent of world trade. Some, such as China, Mexico, and
Thailand, are specializing in manufactured goods, but many
are still dependent on exports of food, fuel, and raw materials.

The international service sector has grown rapidly in
the new century. Between 2005 and 2009, trade in services
by developing economies grew at an annual average rate of
20 percent (in nominal terms)—14 percentage points higher
than that of high-income economies. South Asia led the way,
growing at an average annual rate of 22 percent. But agricultural
and industrial goods still dominate world trade, accounting
for 78 percent of total trade in 2009.

Reductions in tariff and nontariff barriers have helped to spur
trade, but many trade barriers remain. The poorest countries
impose higher barriers across a broad range of goods to protect
their producers and raise revenues for their governments.
Rich countries often impose their highest barriers selectively on
the exports of developing countries, especially agricultural and
textile products. In addition to tariff protection, they provide
subsidies and other forms of support to their farmers, enabling
them to sell agricultural products at very low prices that developing
country producers cannot match. Total agricultural support in
OECD countries exceeded $376 billion in 2008, representing a
3.2 percent increase from 2007, in nominal terms.

Effective global integration requires
the free flow of goods, services,
investment, labor, and technology, not
merely the reduction of tariffs and
import quotas. An open and equitable
trading system enhances growth
opportunities and encourages domestic
and foreign investment. During the last
decade there have been increasing
flows of foreign direct investment (FDI)
toward developing economies. It has
long been recognized that the benefits
of FDI for these countries can be
significant, including knowledge and
technology transfer to domestic firms
and the labor force, productivity
spillover, enhanced competition, and
improved access for exports abroad.
Although slowed by the financial crisis,
net FDI received by developing
economies increased by 12.3 percent
in 2008 to a total of $587 billion.

East Asia and the Pacific received the
highest inflow of FDI ($187.1 billion).
China received 79 percent of the
regional inflows and commanded
one-quarter of all FDI inflows in the
developing economies.

81

Economy

Developing country

Largest merchandise exporters, 2009

Largest merchandise importers, 2009

1

2

3

4

5

Merchandise trade

Quay cranes on dock, Sri Lanka

Rank

$
billions

China

Russian Federation

Mexico

Malaysia

India

1,202

304

230

157

155

Developing country

1

2

3

4

5

Rank

$
billions

China

India

Mexico

Russian Federation

Turkey

1,006

244

242

192

141

Former Spanish Sahara

The Gambia

St. Lucia

São Tomé and Príncipe

Monaco

Luxembourg

Liechtenstein

Kiribati

Dominica

Cape Verde

Andorra

St. Kitts and Nevis

Grenada

Barbados

The Bahamas

Antigua and Barbuda

Martinique (Fr)

St. Vincent and the Grenadines

Uruguay

U n i t e d S t a t e s

United
Kingdom

Trinidad
and Tobago

Togo

Suriname

Spain

Sierra Leone

Senegal

R.B. de
Venezuela

Portugal

Peru

Paraguay

Panama

Nicaragua

The Netherlands

Morocco

Mexico

Mauritania

Mali

Liberia

Jamaica

Ireland

Iceland

Faeroe
Islands
(Den)

Honduras

Haiti

Guyana

Guinea-Bissau

Guinea

Guatemala

Ghana

Fra

El Salvador

Ecuador

Cuba

Côte
d'Ivoire

Costa Rica

Colombia

Chile

C a n a d a

Burkina Faso

B r a z i l

Bolivia

Benin

Belize

Argentina

Alg

Dominican
Republic

Netherlands
Antilles (Neth)

Isle of Man (UK)

Greenland (Den)

Gibraltar (UK)

French Polynesia (Fr)

French Guiana
(Fr)

Channel Islands (UK)

Cayman Islands (UK)

Bermuda
(UK)

Aruba
(Neth)

British Virgin
Islands (UK)

US Virgin
Islands (US)

Puerto
Rico (US)

Guadeloupe (Fr)

Turks and Caicos
Islands (UK)

Latin America & Caribbean

1995: 26%
2008: 41%
2009: 34%

Middle East & North Africa

1995: 45%
2008: 66%
2009: 53%

75–99%

60–74%

40–59%

less than 40%

100% or more

no data

exports and imports as a share of GDP,
2009 or latest available data

Merchandise trade

82

OECD—Trade

www.oecd.org/trade

The five largest exporters in 2009 accounted for more than half the
merchandise exports of developing economies.

Average tariffs imposed by high-income economies have declined,
but averaging tariffs across thousands of products can mask high
tariffs on certain commodities that are particularly important for
developing economies. For some high-income economies the
maximum applied tariff rate can be as high as 887 percent.

Following the global financial crisis, world merchandise exports
declined by 16 percent between 2008 and 2009.

World exports of services grew from $861 billion in 1990 to more
than $3.9 trillion in 2008, but declined to $3.4 trillion in 2009
because of the global financial crisis.

The United States imports more goods than any other country,
followed by China and Germany.

Facts

Internet links

WTO Trade and Tariff Data

IMF—Statistics

United Nations Conference on
Trade and Development—
Statistics

United Nations Trade Statistics

www.wto.org

(go to Resources, select Trade and
Tariff Statistics)

www.imfstatistics.org/dot
www.imfstatistics.org/bop

www.unctad.org

(go to Statistics and select UNCTADstat)

unstats.un.org/unsd/trade
unstats.un.org/unsd/
servicetrade

West Bank and Gaza

Vanuatu

Tonga

Timor-Leste

Solomon Islands

Singapore

Seychelles

San
Marino

Samoa

Tuvalu

Qatar

Palau

Nauru

Mauritius

Malta

Maldives

Lebanon

Kuwait

Israel

Fiji

Federated States of Micronesia

Marshall Islands

Cyprus

Comoros

Brunei Darussalam

Bahrain

Kosovo

Zimbabwe

Zambia

Vietnam

Uzbekistan

United Arab
Emirates

Ukraine

Uganda

Turkmenistan

Turkey

Tunisia

Thailand

Tanzania

Tajikistan

Syrian
Arab Rep.

Switzerland

Sweden

Swaziland

Sudan

Sri Lanka

South Africa

Somalia

Slovenia

Slovak Republic

Serbia

Saudi Arabia

Rwanda

R u s s i a n F e d e r a t i o n

Romania

Rep. of
Yemen

Rep. of
Korea

Poland

Philippines

Papua New
Guinea

Pakistan

Oman

Norway

Nigeria

Niger

Nepal

Namibia

Myanmar

Mozambique

Mongolia

Moldova

Malaysia

Malawi

Madagascar

Lithuania

Libya

Lesotho

Latvia

Lao
P.D.R.

Kyrgyz Republic

Kenya

Kazakhstan

Jordan

Japan

Italy

Islamic Republic
of Iran

Iraq

Indonesia

India

Hungary

Greece

Germany

Georgia

Gabon

FYR Macedonia

nce

Finland

Ethiopia

Estonia

Eritrea

Equatorial Guinea

Djibouti

Denmark

Dem. Rep.
of Congo

Dem. People's
Rep. of Korea

Czech Republic

Croatia

Congo

C h i n a

Chad

Central
African
Republic

Cameroon

Cambodia

Burundi

Bulgaria

Botswana

Bosnia and Herzegovina

Bhutan

Belgium

Belarus

Bangladesh

Azerbaijan

Austria

A u s t r a l i a

New Zealand

Armenia

Arab Rep.
of Egypt

Angola

eria

Montenegro

Afghanistan

Albania

Réunion (Fr)

New
Caledonia
(Fr)

N. Mariana Islands (US)

Mayotte
(Fr)

Guam (US)

American Samoa (US)

South Asia

1995: 23%
2008: 43%
2009: 32%

East Asia & Pacific

1995: 55%
2008: 66%
2009: 52%

Europe & Central Asia

1995: 41%
2008: 56%
2009: 48%

Sub-Saharan Africa

1995: 48%
2008: 65%
2009: 53%

83

Economy

Developing country

1

2

3

4

5

6

7

8

9

10

Developing countries that attracted the
largest FDI net inflows, 2008

China received almost 80 percent of the regional inflows in
East Asia and the Pacific in 2008

Rank

$ billions

China

Russian Federation

Brazil

India

Mexico

Turkey

Kazakhstan

Chile

Romania

Ukraine

147.8

75.5

45.1

41.2

23.2

18.3

15.8

15.2

13.9

10.9

Former
Spanish
Sahara

The Gambia

St. Vincent and the Grenadines

St. Lucia

São Tomé and Príncipe

Monaco

Luxembourg

Liechtenstein

Kiribati

Grenada

Dominica

Cape Verde

Barbados

Antigua and Barbuda

Andorra

St. Kitts and Nevis

The Bahamas

Martinique (Fr)

Uruguay

U n i t e d S t a t e s

United
Kingdom

Trinidad
and Tobago

Togo

Suriname

Spain

Sierra Leone

Senegal

R.B. de
Venezuela

Portugal

Peru

Paraguay

Panama

Nicaragua

The Netherlands

Morocco

Mexico

Mauritania

Mali

Liberia

Jamaica

Ireland

Iceland

Faeroe
Islands
(Den)

Honduras

Haiti

Guyana

Guinea-Bissau

Guinea

Guatemala

Ghana

Fra

El Salvador

Ecuador

Cuba

Côte
d'Ivoire

Costa Rica

Colombia

Chile

C a n a d a

Burkina Faso

B r a z i l

Bolivia

Benin

Belize

Argentina

Alg

Dominican
Republic

Netherlands
Antilles (Neth)

Isle of Man (UK)

Guadeloupe (Fr)

Greenland (Den)

Gibraltar (UK)

French Polynesia (Fr)

French Guiana
(Fr)

Channel Islands (UK)

Cayman Islands (UK)

Aruba
(Neth)

Bermuda
(UK)

US Virgin
Islands (US)

British Virgin
Islands (UK)

Turks and Caicos
Islands (UK)

Puerto
Rico (US)

Middle East & North Africa

5%

Latin America & Caribbean

3%

4.0–5.9%

2.0–3.9%

1.0–1.9%

less than 1.0%

6.0% or more

no data

foreign direct investment net inflows as a share of
GDP, 2008 or latest available data

Foreign direct investment

84

World Bank

International Monetary Fund
Balance of Payments Statistics

www.imfstatistics.org/bop

data.worldbank.org/topic/
financial-sector

United Nations Conference on
Trade and Development—
Statistics

Multilateral Investment
Guarantee Agency,
World Bank Group

www.unctad.org

(go to Statistics and select UNCTADstat)

www.fdi.net

Luxembourg’s net outward direct investment in foreign economies
in 2008 was nearly 3.8 times its GDP. Iceland’s was 63 percent of
its GDP.

Notably, China continued to moderately record a positive net flow of
portfolio equity by $8.7 billion.
For the first time in the last five years, foreign investors reduced
portfolio investments in Russian corporate securities by $15.3 billion
because of the global liquidity crisis.
FDI net flows to high-income countries accounted for nearly
68.2 percent of the world total in 2008. Among developing regions,
Europe and Central Asia received the highest amount in 2008
($186.6 billion), having quadrupled in value since 2000.

Risk perceptions in international credit markets during the second
half of 2008 affected all the developing regions resulting in negative
portfolio investment flows of $53 billion.

Facts

Internet links

West Bank and Gaza

Vanuatu

Tonga

Timor-Leste

Solomon Islands

Singapore

Seychelles

San
Marino

Samoa

Tuvalu

Qatar

Palau

Nauru

Mauritius

Malta

Maldives

Lebanon

Kuwait

Israel

Fiji

Federated States of Micronesia

Marshall Islands

Cyprus

Comoros

Brunei Darussalam

Bahrain

Kosovo

Zimbabwe

Zambia

Vietnam

Uzbekistan

United Arab
Emirates

Ukraine

Uganda

Turkmenistan

Turkey

Tunisia

Thailand

Tanzania

Tajikistan

Syrian
Arab Rep.

Switzerland

Sweden

Swaziland

Sudan

Sri Lanka

South Africa

Somalia

Slovenia

Slovak Republic

Serbia

Saudi Arabia

Rwanda

R u s s i a n F e d e r a t i o n

Romania

Rep. of
Yemen

Rep. of
Korea

Poland

Philippines

Papua New
Guinea

Pakistan

Oman

Norway

Nigeria

Niger

Nepal

Namibia

Myanmar

Mozambique

Mongolia

Moldova

Malaysia

Malawi

Madagascar

Lithuania

Libya

Lesotho

Latvia

Lao
P.D.R.

Kyrgyz Republic

Kenya

Kazakhstan

Jordan

Japan

Italy

Islamic Republic
of Iran

Iraq

Indonesia

India

Hungary

Greece

Germany

Georgia

Gabon

FYR Macedonia

nce

Finland

Ethiopia

Estonia

Eritrea

Equatorial Guinea

Djibouti

Denmark

Dem. Rep.
of Congo

Dem. People's
Rep. of Korea

Czech Republic

Croatia

Congo

C h i n a

Chad

Central
African
Republic

Cameroon

Cambodia

Burundi

Bulgaria

Botswana

Bosnia and Herzegovina

Bhutan

Belgium

Belarus

Bangladesh

Azerbaijan

Austria

A u s t r a l i a

New Zealand

Armenia

Arab Rep.
of Egypt

Angola

eria

Montenegro

Afghanistan

Albania

Réunion (Fr)

New
Caledonia
(Fr)

N. Mariana Islands (US)

Mayotte
(Fr)

Guam (US)

American Samoa (US)

Sub-Saharan Africa

4%

Europe & Central Asia

4%

South Asia

3%

East Asia & Pacific

3%

3%

High-income

85

Economy

Source: World Bank, World Development Indicators database

Workers’ remittances and compensation of employees, received

World
$68.4 billion

World
$415.3 billion

High-income
55%

Sub-Saharan Africa
3%

South Asia
8%

East Asia & Pacific
4%

Europe & Central Asia
5%

Latin America &
Caribbean
8%

Middle East &
North Africa
17%

High-income
26%

Sub-Saharan
Africa
5%

South Asia
18%

East Asia & Pacific
20%

Europe &
Central Asia
9%

Latin America &
Caribbean
14%

Middle East &
North Africa
8%

2009

1990

The largest share of remittances flows are now going to developing economies

International migrant stock, millions

Source: World Bank estimates based on data from UN Population Division

19601965197019751980198519901995

2010

2005

2000

High-income

Low-income

Middle-income

0

25

50

75

100

125

150

Most migrants now reside in high-income economies

The movement of people across
national borders is a visible and
increasingly important aspect of
global integration. Three percent
of the world’s population—more
than 213 million people—now live
in countries in which they were not
born. The forces driving the flow
of migrants from poor economies
to rich economies are likely to
grow stronger in the future.

while in many developing countries the
population is young and growing rapidly.
This imbalance creates a strong demand
for developing-economy workers, especially
to provide services that can be supplied
only locally. Immigrants in high-income
economies have increased to 11 percent
of the population, up from 8 percent
two decades before. There can be other
reasons for immigration. After the breakup
of the Soviet Union in 1991, many people
moved between the newly independent
states, raising the number of migrants
recorded in middle-income economies.
Migration is often accompanied by a
flow of remittances—transfers of gifts and
wages and salaries earned abroad—from
migrants to their countries of origin. Over
the past decade remittances flows have
increased rapidly, emerging as an important
source of external finance for developing
economies. Unlike other kinds of financial
flows, remittances do not create liabilities
and are often received by people who need
financing the most. From 2000 to 2009
remittances inflows to developing
economies more than tripled. Global
remittances flows exceeded $415 billion
in 2009, with 74 percent going to developing
economies.

Migration is on the rise, especially from
poor economies to rich economies. Wage
differences and demographic trends encourage
migration. In many high-income economies
the population is aging and growing slowly,

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