9 must-read economics stories of the week

Welcome to your weekly economics update – a curated list of some of this week’s most interesting stories on economic growth and social inclusion.

1. The need for structural reform in Greece. Michael Jacobides looks at the mistakes of creditors and debtors in dealing with the Greek debt crisis and why structural reform is the way forward (read more about the policy areas the World Economic Forum suggests should be addressed in particular).

2. China’s foreign direct investments in high-risk countries. China has displaced the United States and Europe as the leading investor in large parts of the developing world. This interactive map shows the extent of China’s investments in developing countries as diverse as Afghanistan, Ecuador and Sierra Leone since 2005.

3. The volume of global trade is falling. Why?

4. How does entrepreneurship affect income inequality? Recent research suggests that new innovators spur innovation, which partly accounts for the surge in top income inequality. At the same time, it fosters social mobility.

5. Do the poor manage their money differently? Consumption and investment behaviour in low-income households in the developing world can show us how to boost financial inclusion in the digital age.

6. Technology is making workers redundant. What are the three sets of skills that people will need to survive and thrive in a hyper-tech future?

7. Minimum wages have divided economists for decades. Yet the debate is becoming more subtle. While minimum wages can lead to higher unemployment levels in the long run (according to the Economist), they have also been found to help reduce inequality (as the IMF pointed out this week).

8. Is Africa more ready to produce than it is to consume? Paul Collier argues that it is, explaining: “When poor regions take off, they create opportunities for production long before they become significant markets for consumption.”

9. Global economic imbalances remain a key concern. The IMF has just warned that global demand is still weak and weighs heavily on worldwide growth prospects. Surplus and deficit countries are advised to correct their current account imbalances so as to avoid continued anaemic growth.

Have you read?
China and Greece: a tale of two crises
Can Africa achieve the right kind of growth?
How raising incomes spurs growth

Author: Jennifer Blanke is Chief Economist at the World Economic Forum.

Image: Anti-austerity protesters lift a Greek flag in front of the Greek Parliament in Athens, Greece July 15, 2015. REUTERS/Yiannis Kourtoglou