Tuesday, June 10, 2014

World Bank cuts global growth forecast; Homophobia may cost India economy dear; Wondering why one is looking for another job

1 World Bank cuts global forecast (Larry Elliott in The Guardian) The World Bank has cut its growth forecast for the global economy in 2014 following a weak start to the year in both rich and poor countries. Bad weather in the US, tension in the Ukraine, the slowdown in China and political strife in countries such as Turkey will all delay an expected pick-up in activity, the bank said in its half-yearly Global Economic Prospects.

Its president, Jim Kim, expressed disappointment at the prospect of a third straight year of sub-5% growth in the developing world, which he said was insufficient to meet his aim of eradicating extreme poverty by 2030.
The bank expects the global economy to grow by 2.8% compared with the 3.2% predicted in January. Developing country expansion has been revised down from 5.3% to 4.8%, while expansion in high-income countries has been shaved from 2.2% to 1.9%.

After a sluggish start to 2014, the bank expects activity to accelerate during the rest of the year and for global growth to be 3.4% in 2015 and 3.5% in 2016. A stronger performance by the US and a slow recovery in the eurozone are expected to help developing countries by acting as markets for their exports.

However, the bank remains concerned about a number of factors that could hit the developing world – financial turmoil prompted by an end to the heavy doses of financial stimulus used by central banks over the past five years; the possibility of a hard landing in China, and the vulnerability of some emerging market economies.


2 Homophobia may cost India economy dear (Atish Patel in The Wall Street Journal) New World Bank research suggests discrimination toward the lesbian, gay, bisexual and transgender community is costing India billions of dollars.

Homophobia in the workplace in India and lost productivity as a result of discrimination are among some of the findings in a report by US-based economist MV Lee Badgett that is part of an upcoming study for the World Bank. Ms. Badgett’s study also looks at how homophobia triggers high rates of depression and suicidal behavior, which can also affect the economy.

Ms. Badgett estimates that homophobia cost India’s economy between 112 billion rupees ($1.9 billion) and 1.7 trillion rupees ($30.8 billion) in 2012. To put that figure into context: India lost between 0.1% to 1.7% of its potential gross domestic product that year. A year later, in 2013, India’s Supreme Court reinstated a ban on gay sex, a huge setback for the country’s burgeoning gay rights movement. Ms. Badgett is the director of the Center for Public Policy and Administration at the University of Massachusetts Amherst, as well as a professor of economics.


3 Wondering why one is looking for another job (Kim Thompson in San Francisco Chronicle) Is the grass really greener somewhere else? Although you may have a vision of what it would be like to work someplace else, you need to ask questions and take the time to make sure your decision to accept a new job is based on as much information possible. Remember, “the grass is always greener” principle applies to changing jobs.

There are several things you can do to make sure you not influenced by “the grass is greener” principle. Find out what results will be expected of you during the first six months. Ask “How would a person in this role know they were succeeding six months from now”? The answer will give you an idea of how realistic the employer’s expectations are.

Ask how your performance will be measured. Ask your future boss what communication style they prefer. Do they like weekly feedback or as needed? Most employers expect you to know how to do your job. The success in a new role often comes down to two or three key objectives, and you need to know what those are before you make a career move. Don’t accept a position based solely on your desire to leave – get the facts.

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