Economic Research Forum (ERF)

Daniel Lederman

Author

Daniel Lederman
Former Lead Trade Economist, World Bank's International Trade Unit (PRMTR)

Daniel Lederman is a former Lead Trade Economist in the World Bank's International Trade Unit (PRMTR). Before joining the World Bank Group in 1995 as a consultant in the Office of the Chief Economist for Latin American and the Caribbean, he worked for the United Nations’ Economic Commission for Latin America and the Caribbean. An economist and political scientist by training, Daniel has written extensively on a broad set of issues related to economic development, including financial crises in emerging markets, crime, political economy of policy reforms, economic growth, innovation and international trade. His writings have been accepted for publication in the American Economic Review, Journal of Law and Economics, Journal of Development Economics, Economics and Politics, Journal of International Business Studies, among other peer-reviewed journals. He holds a BA in Political Science from Yale University and MA and PhD degrees in International Relations from the Johns Hopkins University’s School of Advanced International Studies (SAIS). He was born in Santiago, Chile, on February 17, 1968.

Content by this Author

Balancing act: jobs and wages in MENA when crises hit

What has been the human toll of the dizzying sequence of global macroeconomic shocks since 2020 for the Middle East and North Africa in terms of lost jobs and deteriorating livelihoods? A recent World Bank report highlights the additional 5.1 million people who have become unemployed, and explores the potential for them to be permanently scarred by the experience. As this column explains, there is a critical trade-off in labour markets between jobs losses and falls in real incomes, neither of which is desirable. The authors advocate maintaining real wage flexibility and supporting the most vulnerable via targeted cash transfers.

Altered destinies: the long-term effects of food insecurity in the MENA region

Rising food prices are making it difficult for families to put meals on the table. Inflation, especially when it stems from food prices, hits the poorest groups hardest. Across the MENA region, food insecurity has been rising over recent decades. As well as having dire immediate consequences, even temporary increases in food prices can cause long-term irreversible damages, especially to children. This column argues that the rise in food prices due to the war in Ukraine may have altered the destinies of thousands of children in the MENA region, setting them on paths to limited prosperity.

On calamities, debt and growth in developing countries

What implications does the aftermath of the Covid-19 pandemic have for debt and growth in developing countries? This column, originally published by the World Bank, summarises new research evidence on the economic impact of three types of calamities – natural disasters, conflicts and external debt distress.

MENA’s unexpectedly low inflation

Since the start of the war in Ukraine, inflation rates in most countries of the Middle East and North Africa have been lower than in Europe and the United States. This column explores why – and what are the implications for government budgets.

Reality check: forecasting MENA growth in times of uncertainty

Over the past decade, growth forecasts for the countries of the Middle East and North Africa have often been overly optimistic. As this summary of the World Bank’s latest Economic Update for the region shows, greater availability and accessibility of timely and high-quality information can improve their accuracy. Better forecasts are particularly important in these times of uncertainty, as policy-makers seek a path to economic recovery from the pandemic and its aftermath.

MENA public healthcare systems: building resilience for future emergencies

The pandemic caught most countries in the Middle East and North Africa with underfinanced, imbalanced and ill-prepared healthcare systems. This column outlines what went wrong, the economic and health impacts, and the implications for policy. The authors conclude that together with a strong focus on building core public health functions, leveraging the power of data openness can help to promote the region’s recovery. It can also support resilient systems capable of responding to future health calamities arising from epidemics, wars and natural disasters driven by climate change.

When market contestability is not enough

In economies where the state maintains a big footprint, as in the Middle East and North Africa, improving the performance of public enterprises and dominant private firms would seem to require a stronger threat of competition. But as this column explains, such enhanced market contestability may not be enough if there is inadequate competition in the marketplace for policy ideas and public opinion.

Living with debt: how institutions can chart a path to recovery in MENA

Public debt has been a critical tool for governments dealing with Covid-19, but it is a double-edged sword: as the pandemic subsides, tensions will inevitably arise between potential short-run gains and long-run costs. As the World Bank report summarised in this column concludes, institutional reforms to improve governance and transparency can address the trade-off. Such measures can be implemented with limited fiscal costs – and they hold the promise of boosting long-run growth.

Transparency for a time of crisis and beyond

In times of crisis like the current pandemic, citizens turn to their governments for action and reliable information – but in many countries of the Middle East and North Africa, the state has lost much of its credibility. This column summarises a new report on the region’s notable lack of transparency and how that relates to the challenges of low growth, macroeconomic fragility and stagnant labour markets.

Why reforms in the Middle East are unavoidable

One striking feature of the recent economic history of the Middle East is high-income Gulf economies financing the persistent external imbalances of its geo-strategically important neighbours. This column asks what happens when, as a consequence of the technological disruptions of the global fossil fuel market, the current account deficits of key countries in the region are no longer sustainable.

Most read

Beyond job creation: how can Egypt’s gender gap in work be closed?

More than 2 million jobs are needed each year to absorb new entrants into Egypt’s labour market and raise the country’s employment rate. The job challenge is even more acute for women, whose labour force participation remains low despite recent gains in education. This column reports on the second Development Dialogue, an ERF–World Bank Group joint initiative, which brought together students, scholars, policy-makers and private sector leaders at the American University in Cairo to consider how the country’s gender gap in work can be closed.

Digitalisation, global value chains and regional integration in MENA & SSA

Participation in global value chains is vital for countries pursuing structural transformation and inclusive economic development. This column summarises new evidence on how much production processes have been globalised in Africa and the Middle East relative to other regions; whether this process has taken place with partners within or outside the region; and whether it has taken place more in manufacturing or services.

How trade policy can reduce MENA’s cereal import vulnerability

Heavy dependence on imported cereals, combined with climate change, water scarcity and geopolitical uncertainty, continues to threaten food resilience across MENA. This column explains how an inclusive trade policy can play a key role in making the region’s food security less vulnerable to shocks.

The political economy of algorithms in the Middle East

The Middle East is entering a new political-economic era – one in which algorithms, data and artificial intelligence may become as strategically important as oil once was. Across the region, governments are investing heavily in digital infrastructure, smart governance and AI-driven economic transformation. This column outlines how AI and algorithmic governance are reshaping power, inequality and state capacity in the region.

The risks of a two-speed AI economy in MENA

Much of the debate about artificial intelligence in the Middle East and North Africa focuses on how many jobs it will replace. As this column explains, the more important challenge is that the new technology is likely to create a two-speed labour market, where countries with the capacity to invest in digital infrastructure and skills move rapidly ahead while others struggle to keep pace. Unless governments combine credible national reforms with targeted regional cooperation, AI could widen, not reduce, the economic divides across MENA.

From mega-investment to mega-productivity: closing MENA’s conversion gap

Across the Middle East and North Africa, governments are investing heavily in infrastructure, technology, diversification and new industries. Yet capital accumulation alone does not guarantee productivity growth. As this column argues, the region’s deeper challenge is its ‘investment-to-productivity conversion gap’: ensuring that large-scale investment translates consistently into stronger firms, technological diffusion, skills and better jobs. A different metric of success is required: not how much capital is deployed, but how much productive capability that capital leaves behind.

Sanctions and conflict: why corruption changes the equation

Why do sanctions produce such different political outcomes across the countries that have been targeted? This column reports research examining the role of pre-existing corruption in shaping the relationship between sanctions and subsequent conflict or political instability. The evidence indicates that trade sanctions are associated with higher conflict-related deaths where pre-existing corruption is high.

Why energy efficiency still struggles to attract finance in Egypt

Egypt has reduced energy subsidies and gradually adjusted domestic energy prices toward cost-recovery levels, improving the economic case for energy efficiency investments – but financing has not kept pace. Drawing on structured interviews with banks, developers and public officials, this column traces why energy efficiency projects in the country still struggle to attract capital, and sets out how a ‘financing ladder’ used elsewhere – from revolving funds to risk guarantees to green bonds – could close the gap.

The weak bread chain: cereal supply risks in six MENA economies

The Middle East and North Africa is one of the most food-import-dependent regions of the world, particularly for staple cereals such as barley, maize and wheat, and particularly in six countries – Algeria, Egypt, Jordan, Lebanon, Morocco and Tunisia. As this column reports, diversifying import sources has become an essential strategy for strengthening food security and improving resilience to geopolitical and climate-related disruptions.




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