Economic Research Forum (ERF)

Jaime de Melo

Author

Jaime de Melo
Professor Emeritus, University of Geneva

Jaime de Melo, professor emeritus from the University of Geneva is scientific director at the FERDI and Academic Advisor at the Geneva Business School. He is also a CEPR fellow, a non-resident fellow at Brookings Institution, and a member of EU-GDN. From 1972 to 1976, he worked at USAID, then taught at Georgetown University from 1976-80. From 1980 to 1993, he was in the research Department at the World Bank before joining the faculty at the University of Geneva from 1992 to 2012. Jaime has advised governments on trade policies and during WTO litigations and has consulted for the AfDB, the European Commission, the IMF, USAID, the World Bank, and participated in several projects with the LSE. A founding member of the World Trade Institute, he has held several editorial positions and was editor-in-chief of the World Bank Economic Review, 2005-2010. Jaime holds degrees in Political Science at the Maxwell School (Bachelors from Syracuse University 1968), in international relations (M.A from Johns Hopkins SAIS, 1970), and a Phd in economics from John Hopkins University (1975).

Content by this Author

Boosting trade through flexible rules of origin in preferential agreements

Rules of origin are critical components of preferential trade agreements designed to stop products coming in under insufficient transformation or through the partner that applies the lowest tariff. But in practice, these rules are often needlessly complex, undoing the benefits of market access associated with trade agreements. This column reports research showing that the adoption of more flexible product-specific rules of origin within preferential agreements would give a significant boost to global trade.

Challenges of digitalisation in MENA and sub-Saharan Africa

For Africa and the Middle East, new digital technologies present an opportunity to raise productivity by speeding up structural transformation – but how equipped are countries in the region for taking advantage of this moment? This column presents evidence on readiness for e-commerce, integration into global supply chains, data infrastructure and the performance of the services sector.

Harmonising rules of origin for the African continental free trade area

For the African continental free trade area to become fully operational, it is essential for the 54 signatory countries to reach agreement on harmonisation of rules of origins – the ‘Made in Africa’ criteria to ensure that only bona fide African products will benefit from tariff concessions. This column reports on progress and the remaining challenges.

Africa’s continental free trade area: a stepping-stone to integration?

In a week that marks the anniversary of the treaty for an African continental free trade area, signed in Kigali on 18 March 2018, this column asks whether it is a turning point on the road towards economic integration. There are signs of progress: the inclusion of negotiations on trade in services; progress-tracking on removing barriers to trade in goods; easing the movement of persons; and improving hard and soft infrastructure to lower trade costs. But starting off with a small membership that does not include all the big players and the possibility of backsliding under the guise of indiscriminate promotion of regional value chains pose serious threats.

The African continental free trade area: an integration trilemma

Plans to establish an African continental free trade area are hampered by three incompatible objectives: solidarity across the continent’s diverse countries; large membership to break the curse of small markets; and deep integration to reap all the benefits of close economic cooperation. This column explains Africa’s ‘integration trilemma’ – and suggests that it may in part explain why no North African country has as yet ratified the AfcFTA Treaty.

Sahel faces poverty and conflict traps: a call for international action

Conditions in the so-called G-5 countries of the Sahel – Burkina Faso, Chad, Mali, Mauritania and Niger – are grim. This Brookings column from late 2016 summarises a plea for international action. More funding for day-to-day security and for economic development is urgently needed. And the socio-cultural complexity of the region calls for a multidisciplinary approach, bringing together researchers, diplomats, ethnologists, humanitarians, and defence and development experts.

Improving market access for Jordanian exports to Europe

As part of its efforts to alleviate the Syrian refugee crisis in Jordan, the European Union has granted a relaxation on origin requirements for selected products from certain parts of the country. This column reports analysis of whether the EU’s decision can help to provide job opportunities for refugees.

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Making trade agreements more environmentally friendly in the MENA region

Trade policy can play a significant role in efforts to decarbonise the global economy. But as this column explains, there need to be more environmental provisions in trade agreements in which developing countries participate – and stronger legal enforcement of those provisions at the international level. The MENA region would benefit substantially from such changes.

Jordan: navigating through multiple crises

Jordan’s real GDP per capita is today no higher than it was 40 years ago. While external factors have undoubtedly had an adverse effect on the country’s economic outcomes, weak macroeconomic management and low public spending on investment and the social sectors have also played a substantial role. This column explores what can be done to reduce high public debt, accelerate private sector development and enhance social outcomes.

Iran’s globalisation and Saudi Arabia’s defence budget

How might Saudi Arabia react to Iran's renewed participation in global trade and investment? This column explores whether the expanding economic globalisation of Iran, following the lifting of nuclear sanctions, could yield a peace dividend for Saudi Arabia, consequently dampening the Middle East arms competition. These issues have attracted increased attention in recent times, notably after a pivotal agreement between the two countries in March 2023, marking the resumption of their political ties after a seven-year conflict.

Egypt and Iraq: amenities, environmental quality and taste for revolution

The Middle East and North Africa is a region marked by significant political turbulence. This column explores a novel dimension of these upheavals: the relationship between people’s satisfaction with, on one hand, the amenities to which they have access and the environmental quality they experience, and, on the other hand, their inclination towards revolutionary actions. The data come from the World Value Survey collected in 2018 in Egypt and Iraq.

Global value chains and domestic innovation: evidence from MENA firms

Global interlinkages play a significant role in enhancing innovation by firms in developing countries. In particular, as this column explains, participation in global value chains fosters a variety of innovation activities. Since some countries in the Middle East and North Africa display a downward trend on measures of global innovation, facilitating the GVC participation of firms in the region is a prospective channel for stimulating underperforming innovation.

Labour market effects of robots: evidence from Turkey

Evidence from developed countries on the impact of automation on labour markets suggests that there can be negative effects on manufacturing jobs, but also mechanisms for workers to move into the services sector. But this narrative may not apply in developing economies. This column reports new evidence from Turkey on the effects of robots on labour displacement and job reallocation.

Food insecurity in Tunisia during and after the Covid-19 pandemic

Labour market instability, rising unemployment rates and soaring food prices due to Covid-19 are among the reasons for severe food insecurity across the world. This grim picture is evident in Tunisia, where the government continues to provide financial and food aid to vulnerable households after the pandemic. But as this column explains, the inadequacy of some public policies is another important factors causing food insecurity.

Manufacturing firms in Egypt: trade participation and outcomes for workers

International trade can play a large and positive role in boosting economic growth, reducing poverty and making progress towards gender equality. These effects result in part from the extent to which trade is associated with favourable labour market outcomes. This column presents evidence of the effects of Egyptian manufacturing firms’ participation in exporting and importing on their workers’ productivity and average wages, and on women’s employment share.

Do capital inflows cause industrialisation or de-industrialisation?

There is a clear appeal for emerging and developing economies, including those in MENA, to finance investment in manufacturing industry at home with capital inflows from overseas. But as the evidence reported in this column indicates, this is a potentially risky strategy: rather than promoting industrialisation, capital flows can actually lead to lower manufacturing value added and/or a reallocation of resources towards industries with lower technology intensity.

Sustaining entrepreneurship: lessons from Iran

Does entrepreneurial activity naturally return to long-term average levels after big economic disturbances? This column presents new evidence from Iran on trends in entrepreneurship among various categories of firm size, sector and location – and suggests policies that could be effective in promoting entrepreneurial activities.