developing countries Current Affairs - 2020
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Recently, the United States of America removed the “developing” tag for dozens of countries. India is one amongst them. These countries are to be classified as developed economies
The “Developing” status for a country in the US is associated with US Trade Act, 1974. The act authorized General System of Preferences (GSP). The intention of the system is to help the poor countries develop faster. The act was later adopted by the World Trade Organization (WTO) and was extended to other rich countries as well. In WTO, around two-thirds of the countries classify themselves as developing.
Recently US had withdrawn India from its GSP listings. Under this preference there were more than 2,000 items that were of worth 6.3 billion USD. This affects India harshly. Hence, India has been asking the US to re-include the GSP status. Unfortunately, US has permanently put an end to India’s GSP status by removing it from the list of developing.
Tags: developing countries • Economic Growth • Foreign Trade • GSP • GSP Benefits
On January 20, 2020, the United Nation Conference on Trade and Development released its report on Global Investment Trend Monitor Report for the year 2019. The Global FDI of the year 2019 was 1.39 trillion USD. This has declined by 1% as compared to 2018.
According to the report, FDI in South Asia increased by 10% as compared to 2018. The inflows of Pakistan and Bangladesh however declined by 20% and 6% respectively. China remained the topmost FDI recipient in the world as it was in 2018 followed by the United States. The United States in 2019 attracted 251 billion USD FDI and the inflows of China was 140 billion USD.
The report also said that the inflows into developing economies remained unchanged. The FDI in Latin America and Caribbean rose by 16%. The FDI in African countries were 3% and was far less as compared to other parts of the world.
The growth of FDI in South Asia was mainly due to India. In 2019, the India’s FDI was 49 billion USD. The report says that FDI in 2019 has increased by 16% as compared to 2018. The majority of the input in India went into Information Technology.
Predictions of 2020
The report predicts that FDI flows in the country will increase in 2020.
Tags: developing countries • Economic Growth • FDI • Information Technology • Investment