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31. Regional Development Banks (ABCs of the IFIs Brief)

Author:
Jenny Ottenhoff
Publication Date:
09-2011
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
The regional development banks (RDBs) are multilateral financial institutions that provide financial and technical assistance for development in low- and middle-income countries within their regions. Finance is allocated through low-interest loans and grants for a range of development sectors such as health and education, infrastructure, public administration, financial and private-sector development, agriculture, and environmental and natural resource management. The term RDB usually refers to four institutions:
Topic:
Development, Economics, Foreign Aid, and Foreign Direct Investment
Political Geography:
Africa, Europe, and Asia

32. The ABCs of the General Capital Increase (ABCs of IFIs Brief)

Author:
Todd Moss, Sarah Jane Staats, and Julia Barmeier
Publication Date:
09-2011
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
The international financial institutions dramatically increased their lending in 2008–09 to help developing countries cope with the global financial crisis and support economic recovery. Today, these organizations are seeking billions of dollars in new funding. The IMF, which only a few years ago was losing clients and shedding staff, expanded by $750 billion in 2009. The World Bank and the four regional development banks for Africa, Asia, Europe, and Latin America have asked to increase their capital base by 30 to 200 percent. A general capital increase (GCI) for these development banks is an unusual request. A simultaneous GCI request is a oncein- a-generation occurrence.
Topic:
Development, Foreign Aid, and Financial Crisis
Political Geography:
Africa, Asia, Latin America, and Ethiopia

33. Leadership Selection at the International Financial Institutions

Author:
Jenny Ottenhoff
Publication Date:
09-2011
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
The International Financial Institutions (IFIs) are multilateral agencies. The term typically refers to the International Monetary Fund (IMF), which provides financing and policy advice to member nations experiencing economic difficulties, and the multilateral development banks (MDBs), which provide financing and technical support for development projects and economic reform in low- and middle-income countries. The term MDB is usually understood to mean the World Bank and four smaller regional development banks: African Development Bank (AfDB). Asian Development Bank (ADB). European Bank for Reconstruction and Development (EBRD) Inter-American Development Bank (IDB).
Topic:
Development, Economics, International Monetary Fund, Foreign Aid, and World Bank
Political Geography:
Africa, America, Europe, and Asia

34. Zap It to Me: The Short-Term Impacts of a Mobile Cash Transfer Program

Author:
Rachid Boumnijel, Amanda McClelland, Niall Tierney, and Jenny C. Aker
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Conditional and unconditional cash transfers have been effective in improving development outcomes in a variety of contexts, yet the costs of these programs to program recipients and implementing agencies are rarely discussed. The introduction of mobile money transfer systems in many developing countries offers new opportunities for a more cost-effective means of implementing cash transfer programs. This paper reports on the first randomized evaluation of a cash transfer program delivered via the mobile phone. In response to a devastating drought in Niger, households in targeted villages received monthly cash transfers as part of a social protection program. One-third of targeted villages received a monthly cash transfer via a mobile money transfer system (called zap), whereas one-third received manual cash transfers and the remaining one-third received manual cash transfers plus a mobile phone. We show that the zap delivery mechanism strongly reduced the variable distribution costs for the implementing agency, as well as program recipients' costs of obtaining the cash transfer. The zap approach also resulted in additional benefits: households in zap villages used their cash transfer to purchase a more diverse set of goods, had higher diet diversity, depleted fewer assets and grew more types of crops, especially marginal cash crops grown by women. We posit that the potential mechanisms underlying these results are the lower costs and greater privacy of the receiving the cash transfer via the zap mechanism, as well as changes in intra-household decision-making. This suggests that m-transfers could be a cost-effective means of providing cash transfers for remote rural populations, especially those with limited road and financial infrastructure. However, research on the broader welfare effects in the short- and long-term is still needed
Topic:
Agriculture, Development, and Science and Technology
Political Geography:
Africa

35. Why Did Abolishing Fees Not Increase Public School Enrollment in Kenya?

Author:
Tessa Bold, Mwangi Kimenyi, Germano Mwabu, and Justin Sandefur
Publication Date:
10-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
A large empirical literature has shown that user fees signicantly deter public service utilization in developing countries. While most of these results reflect partial equilibrium analysis, we find that the nationwide abolition of public school fees in Kenya in 2003 led to no increase in net public enrollment rates, but rather a dramatic shift toward private schooling. Results suggest this divergence between partial- and general-equilibrium effects is partially explained by social interactions: the entry of poorer pupils into free education contributed to the exit of their more affluent peers.
Topic:
Education, Government, and Poverty
Political Geography:
Kenya and Africa

36. Direct Redistribution, Taxation, and Accountability in Oil-Rich Economies: A Proposal

Author:
Shantayanan Devarajan, Hélène Ehrhart, Tuan Minh Le, and Gaël Raballand
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
To enhance efficiency of public spending in oil-rich economies, this paper proposes that some of the oil revenues be transferred directly to citizens, and then taxed to finance public expenditures. The argument is that spending that is financed by taxation—rather than by resource revenues accruing directly to the government—is more likely to be scrutinized by citizens and hence subject to greater efficiency. We develop the case as follows: First, we confirm that public expenditure efficiency is lower in oil-rich countries compared with other developing countries. Second, we develop a theoretical model to explain why citizens' scrutiny over public expenditure can be increased by transferring oil revenues to citizens and then taxing them. By receiving transfers and then paying taxes, citizens are better informed about the level of government revenue, and they have an incentive to ensure that their taxes are spent on public goods. Third, we show empirically that enhanced citizens' scrutiny is associated with more efficient government spending decisions and that accountability is stronger in countries that rely more on taxation to finance public spending. We conclude that, while it may be difficult to implement such a proposal in existing oil producers, there is scope for introducing it in some of Africa's new oil producers.
Topic:
Economics, International Trade and Finance, and Oil
Political Geography:
Africa

37. West African Experience with the World Rice Crisis, 2007–2008

Author:
Vijaya Ramachandran, Peter Timmer, Steven Block, and Jenny C. Aker
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Rice production in Africa has tended to be low-yielding, geographically dispersed, and uncompetitive against low-cost Asian imports, even when protected by high freight costs and substantial trade barriers. Skyrocketing prices in world markets in 2007—08 were a shock to African consumers, producers, and governments alike. When international rice prices were relatively low, rice imports did not pose economic or political problems for West African governments. Extremely expensive imports reverse that equation. This paper addresses the response to that reversal first by presenting a historical review of trends in the West African rice sector and, second, by assessing the effect of world rice prices on domestic prices, primarily at the consumer level.
Topic:
Humanitarian Aid and Food
Political Geography:
Africa and Asia

38. Antiretroviral Therapy Awareness and Risky Sexual Behaviors: Evidence from Mozambique

Author:
Mead Over, Damien de Walque, and Harounan Kazianga
Publication Date:
01-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper studies the effect of increased access to antiretroviral therapy on risky sexual behavior, using data collected in Mozambique in 2007 and 2008. The survey sampled both households of randomly selected HIV-positive individuals and households from the general population. Controlling for unobserved individual characteristics, the findings support the hypothesis of disinhibition behaviors, whereby risky sexual behaviors increase in response to the perceived changes in risk associated with increased access to antiretroviral therapy. Furthermore, men and women respond differently to the perceived changes in risk. In particular, risky behaviors increase for men who believe, wrongly, that AIDS can be cured, while risky behaviors increase for women who believe, correctly, that antiretroviral therapy can treat AIDS but cannot cure it. The findings suggest that scaling up access to antiretroviral therapy without prevention programs may not be optimal if the objective is to contain the disease, since people would adjust their sexual behavior in response to the perceived changes in risk. Therefore, prevention programs need to include educational messages about antiretroviral therapy and address the changing beliefs about HIV in the era of increasing antiretroviral therapy availability.
Topic:
Education and Health Care Policy
Political Geography:
Africa

39. Food Crisis, Household Welfare, and HIV/AIDS Treatment: Evidence from Mozambique

Author:
Mead Over, Damien de Walque, Harounan Kazianga, and Julia Vaillant
Publication Date:
01-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Using panel data from Mozambique collected in 2007 and 2008, the authors explore the impact of the food crisis on welfare of households living with HIV/AIDS. The analysis finds that there has been a real deterioration of welfare in terms of income, food consumption, and nutritional status in Mozambique between 2007 and 2008, among both HIV and comparison households. However, HIV households have not suffered more from the crisis than others. Results on the evolution of labor-force participation suggests that initiation of treatment and better services in health facilities have counterbalanced the effect of the crisis by improving the health of patients and their labor-force participation. In addition, the authors look at the effect of the change in welfare on the frequency of visits to health facilities and on treatment outcomes. Both variables can proxy for adherence to treatment. This is a particularly crucial issue as it affects both the health of the patient and public health because sub-optimal adherence leads to the development of resistant forms of the virus. The authors find no effect of the change in welfare on the frequency of visits, but they do find that people who experienced a negative income shock also experienced a reduction or a slower progress in treatment outcomes.
Topic:
Food and Health Care Policy
Political Geography:
Africa

40. IDA at 65: Heading Toward Retirement or a Fragile Lease on Life?

Author:
Todd Moss and Benjamin Leo
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Even under conservative assumptions, IDA will likely face a wave of country graduations by 2025. We project that it will lose more than half of its client countries and that the total population living in IDA-eligible countries will plunge by two-thirds. The remaining IDA-eligible countries will be significantly smaller in size and overwhelmingly African, and a majority are currently considered fragile or post-conflict. This drastically altered client base will have significant implications for IDA's operational and financial models. We conclude with three possible options for IDA and recommend that World Bank shareholders and management begin frank discussions on its future sooner rather than later.
Topic:
Demographics, Development, Health, World Bank, and Health Care Policy
Political Geography:
Africa