International Trade and Finance
Aligning Carbon Markets With Sustainable Development Goals in the Least Developed Countries
dic 2024
Working Paper
Carbon trading under Article 6 of the Paris Agreement presents opportunities and risks for the least developed countries (LDCs). Rather than participating in carbon markets in an ad-hoc fashion, LDCs should build a policy framework that integrates carbon trading into existing development policy and climate policy strategies. The international community can support LDCs through enhanced capacity-building and by strengthening the integrity of carbon markets. This policy brief outlines key benefits, challenges, and policy recommendations for LDCs and development partners to mitigate risks associated with carbon trading under Article 6 and ensure that carbon markets support sustainable development in LDCs.
Preparing to Seize Artificial Intelligence Opportunities With Strategic National Policies
ago 2025
Working Paper
Developing countries need to strengthen national readiness and design targeted policies in order to prepare for a world rapidly being reshaped by artificial intelligence and other frontier technologies. National competitiveness increasingly depends on science, technology and innovation (STI) and knowledge-intensive services. Some developing countries exhibit significant potential relative to their income levels; most need to design industrial and innovation policies that account for the role of knowledge-intensive services and the uncertainties surrounding research and development. It is also critical to consider the diffusion and direction of frontier technologies and their impact on the economy, and to adapt catch-up strategies accordingly. Developing countries need to quickly respond to the challenges posed by artificial intelligence, implementing policies that align with national development goals and agendas. It may be more feasible to immediately support the adoption of artificial intelligence for particular sectoral needs, yet developing countries should also formulate long-term strategic plans to steer national artificial intelligence development. Otherwise, as latecomers, they may be left with few options.
United States Tariff Shockwaves: Impact on the Arab Region
jun 2025
Working Paper
This policy brief examines recent United States tariff shockwaves and the 90-day tariff pause, highlighting both direct impacts – particularly on Bahrain, Egypt, Jordan, Lebanon, Morocco and Tunisia – and indirect spillovers through weaker demand from China and the European Union, and falling oil prices. Preliminary estimates for 2025 suggest moderate macroeconomic effects for the Agadir Agreement countries and limited impacts for the Gulf Cooperation Council economies. The brief underscores rising fiscal vulnerabilities and calls upon Arab States to strengthen regional integration, diversify trade and engage with the United States to enhance economic resilience.
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