The global economy is rapidly changing. Economic power is increasingly shifting from North America and Europe to China, India, Brazil and other emerging economies. At the same time, poverty remains endemic in many parts of the developing world. Global challenges such as climate change and resource scarcity are shaping the way countries manage their own economies and interact with others.

The impacts of the financial crisis are being felt around the world, placing global financial systems under increased scrutiny and raising questions about regulation and reform.

Sustainable and equitable economic growth is more important than ever. Achieving this requires countries to reach out to broader markets through trade, and to create the right domestic environment to stimulate investment and innovation. They also need to ensure that external relationships contribute as much as possible to domestic growth and development, and that the benefits of development are shared fairly.

IDS works on a range of issues concerning economy and finance, including:

• Trade and growth – we are analysing trends in global trade and regionalisation of the global economy using quantitative analysis and economic modelling.
• Sustainability and the green economy – we are seeking to understand how investment in low-carbon technologies can help countries grow sustainably, and how this investment could be increased.
• Finance and infrastructure – we are examining the impact of Development Finance Institutions support for Private Participation in Infrastructure on economic growth and poverty reduction.
• Private capital flows – we are mapping changes in capital flows, and linking this to development impacts.
• Climate change finance – we are exploring how to mobilise and distribute finance that helps countries mitigate and adapt to climate change.
• Environmental taxation – we are exploring the links between environmental taxation and international development outcomes.
• Business innovation and branding – we are examining how businesses in China and Brazil are growing their innovation and branding capabilities.