Covid-19 has hit developing countries hard. This Brookings column suggests that the crisis could galvanise governments to reduce ‘leakages’ of public spending to beneficiaries other than those for whom it is intended. The objectives should be creating fiscal space to serve the poor better while setting the stage for recovery and sustained economic growth.
Comparing the experiences of MENA and East Asia in recent decades reveals the delicate nature of the latter’s remarkable structural transformation: several parts of the economy had to be pulling in the same direction. This column explains how East Asia succeeded – and MENA failed – in generating productive employment.