14 must-read economics stories of the week

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

1. Facts and figures. 2 billion people lack access to a transaction account and 30% of these live in only two countries.

2. Emerging markets are in deep trouble, writes Dani Rodrik. The below chart from BCA research reflects this. Which of the emerging markets have better chances of continuing their convergence with the industrialised world? (Project Syndicate)

3. But what does the term “emerging markets” even mean? The Financial Times is asking you for help to answer this question. Take a look at these six suggestions and contribute one yourself. (Financial Times)

4. Inclusive growth is not only a “nice to have” but the magic ingredient for higher total factor productivity and prosperity, writes Yuwa Hedrick-Wong. (The MasterCard Center for Inclusive Growth)
5. Is China facing a drastic slow-down of economic growth? No, argues Nicholas Lardy. As the services sector is growing, consumption and wages are on the rise as well. (Peterson Institute of International Economics)

6. What are the most effective policies in the short and long term to get the unemployed back into work? A recent NBER meta-analysis offers some insights. (The Economist)

7. What is the more important determinant of an individual’s future wealth: nature or nurture – genes or parents? It’s the latter, according to recent Swedish research. (FiveThirtyEight)
8. Estimates suggest that there is between $1tn and $2tn of unused cash now sitting on corporate balance sheets. As forthcoming World Economic Forum research shows, such cash not going into productive investment is one of the constraints to realising more inclusive growth. Gillian Tett sheds some light on the U.S. case. (Financial Times) 
9. How is the Colombian economy faring? Take a look here. (BloombergView)

10. Ravi Kanbur and Nobel laureate Joseph Stiglitz argue that the economics discipline is in dire need of updating theories on growth, wealth and income distribution. (VoxEU.org)

11. An old question is debated yet again: does automation destroy or create more jobs? (The Economist)

12. Social mobility in the United States is low, and lower at the top than at the bottom. (Brookings)
13. China has lifted more people out of poverty than any other country in the world. New data shows that indeed urban poverty has almost been eradicated. Apart from rural poverty, inequality must now be tackled. (The Guardian)
14. To take on the world’s toughest challenges in a sustainable way, companies are turning to something familiar: the profit motive. Fortune’s new Change the World list shines a spotlight on companies that have made significant progress in addressing major social problems as a part of their core business strategy. (Fortune)

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

Image: Tourists walk along the Mutianyu section of the Great Wall in Huairou District, Beijing, August 28, 2007. REUTERS/Deurbon Chow (CHINA).