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142. Inside the World Bank's Black Box Allocation System: How Well Does IDA Allocate Resources to the Neediest and Most Vulnerable Countries?
- Author:
- Benjamin Leo
- Publication Date:
- 06-2010
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- During the last few International Development Association (IDA) replenishment negotiations, several large donors have pressed for reforms to further increase the share of IDA resources provided to the neediest and most vulnerable countries. While the proposed reforms take different forms, the philosophical Thrust is the same—push IDA's focus further down the development chain. Against this backdrop, this paper explores just how well IDA's existing performance-based allocation (PBA) system actually addresses these issues. To achieve this, I examine how IDA allocations are distributed at each successive stage of the PBA methodology based upon a number of need and vulnerability measures. Next, I apply two simple measures to gauge IDA's performance: (1) whether per-capita allocations to the neediest and most vulnerable countries are equal to or greater than those for the best off countries and (2) whether allocations to the neediest and most vulnerable countries increase between the baseline and final allocation scenarios. Based on these criteria, IDA has a mixed track record. IDA's performance is very modest with respect to the relative share allocated to the neediest or most vulnerable countries. Of the eight measures examined, only two illustrate parity between final allocations to the bottom and top quartile of countries. However, the litany of PBA exceptions clearly helps to redistribute resources in absolute terms. Per-capita allocations to the neediest and most vulnerable countries more than doubles between the baseline and final PBA scenarios for every need and vulnerability indicator examined. Clearly, the existing system has several built-in biases to redistribute resources to these countries. However, these exceptions fall short from ensuring full parity that some IDA donors may wish to achieve. As such, the philosophical debate among key IDA donors likely will continue for the foreseeable future.
- Topic:
- Development, Economics, Foreign Aid, and Financial Crisis
143. Pulling Agricultural Innovation and the Market Together
- Author:
- Kimberly Elliott
- Publication Date:
- 06-2010
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Feeding an additional three billion people over the next four decades, along with providing food security for another one billion people that are currently hungry or malnourished, is a huge challenge. Meeting those goals in a context of land and water scarcity, climate change, and declining crop yields will require another giant leap in agricultural innovation. The aim of this paper is to stimulate a dialogue on what new approaches might be needed to meet these needs and how innovative funding mechanisms could play a role. In particular, could “pull mechanisms,” where donors stimulate demand for new technologies, be a useful complement to traditional “push mechanisms,” where donors provide funding to increase the supply of research and development (R). With a pull mechanism, donors seek to engage the private sector, which is almost entirely absent today in developing country R for agriculture, and they pay only when specified outcomes are delivered and adopted.
- Topic:
- Security, Agriculture, Development, and Poverty
144. Beyond Population: Everyone Counts in Development
- Author:
- Joel E. Cohen
- Publication Date:
- 07-2010
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- This essay reviews some of the most important demographic trends expected to occur between 2010 and 2050, indicates some of their implications for economic and global development, and suggests some possible policies to respond these trends and implications. The interactions of population, economics, the environment, and culture are central. In the past decade, for the first time in history, old people outnumbered young people, urban people outnumbered rural people, and women of reduced fertility outnumbered women of high fertility. The century from 1950 to 2050 will have included the highest global population growth rate ever, the largest voluntary fall in the global population growth rate ever, and the most enormous shift ever in the demographic balance between the more developed regions of the world and the less developed ones. In the coming half century, according to most demographers, the world's population will grow older, larger (albeit more slowly), and more urban than in the 20th century, but with much variance within and across regions. No one knows what numbers and demographic characteristics of humans are sustainable, but it is clear that the prodigious stain of a billion or so chronically hungry people at present results from recent and ongoing collective human choices, not biophysical necessities. Concrete policy options to respond to demographic trends include providing universal primary and secondary education, particularly education for global and household civility; eliminating unmet needs for contraception and reproductive health; and implementing demographically sensitive urban planning, particularly construction for greater energy efficiency and friendliness to older people.
- Topic:
- Demographics, Development, Economics, and Environment
- Political Geography:
- Washington
145. Twenty Concrete Steps to Improve the United States' Commitment to Development
- Author:
- David Roodman and Cindy Prieto
- Publication Date:
- 07-2010
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The Commitment to Development Index (CDI) ranks 22 rich countries on their dedication to policies that benefit poor nations. Looking beyond standard comparisons of foreign aid flows, the CDI measures national policies on aid, trade, investment, migration, environment, security, and technology. The United States ranked 17th overall in 2009, strong in trade and security but less competitive in aid and environment. This memo describes how to boost the U.S. score and links to CGD materials with more detail.
- Topic:
- Development, Foreign Aid, and Foreign Direct Investment
- Political Geography:
- United States
146. Learning about Schools in Development
- Author:
- Charles Kenny
- Publication Date:
- 12-2010
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- There has been considerable progress in school construction and enrollment worldwide. Paying kids to go to school can help overcome remaining demand-side barriers to enrollment. Nonetheless, the quality of education appears very poor across the developing world, limiting development impact. Thus we should measure and promote learning not schooling. Conditional cash transfers to students on the basis of attendance and scores, school choice, decentralization combined with published test results, and teacher pay based on attendance and performance may help. But learning outcomes are primarily affected by the broader environment in which students live, suggesting a learning agenda that stretches far beyond education ministries.
- Topic:
- Development, Economics, Education, and Poverty
- Political Geography:
- Afghanistan and East Asia
147. Capability Traps? The Mechanisms of Persistent Implementation Failure
- Author:
- Lant Pritchett, Michael Woolcock, and Matt Andrews
- Publication Date:
- 12-2010
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Many countries remain stuck in conditions of low productivity that many call “poverty traps.” Economic growth is only one aspect of development; another key dimension of development is the expansion of the administrative capability of the state, the capability of governments to affect the course of events by implementing policies and programs. We use a variety of empirical indicators of administrative capability to show that many countries remain in “state capability traps” in which the implementation capability of the state is both severely limited and improving (if at all) only very slowly. At their current pace of progress countries like Haiti or Afghanistan or Liberia would take hundreds (if not thousands) of years to reach the capability of a country like Singapore and decades to reach even a moderate capability country like India. We explore how this can be so. That is, we do not attempt to explain why countries remain in capability traps; this would require a historical, political and social analysis uniquely applied to each country. Rather, we focus on how countries manage to engage in the domestic and international logics of “development” and yet consistently fail to acquire capability. What are the techniques of failure? Two stand out. First, 'big development' encourages progress through importing standard responses to predetermined problems. This encourages isomorphic mimicry as a technique of failure: the adoption of the forms of other functional states and organizations which camouflages a persistent lack of function. Second, an inadequate theory of developmental change reinforces a fundamental mismatch between expectations and the actual capacity of prevailing administrative systems to implement even the most routine administrative tasks. This leads to premature load bearing, in which wishful thinking about the pace of progress and unrealistic expectations about the level and rate of improvement of capability lead to stresses and demands on systems that cause capability to weaken (if not collapse). We conclude with some suggestive directions for sabotaging these techniques of failure.
- Topic:
- Development, Economics, and Poverty
- Political Geography:
- Afghanistan, India, and Liberia
148. Not Just Aid: How Making Government Work Can Transform Africa
- Author:
- Tony Blair
- Publication Date:
- 12-2010
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Country ownership has become the new watchword in development. The problem for traditional donors is that ownership is too often code for convincing developing country governments to adopt the donors' agenda as their own: a way of securing influence without imposing conditionality. What is really needed is genuine country leadership. As President Obama said when he announced the United States' new development policy at the UN Millennium Development Goals summit in New York in September, “We will partner with countries that are willing to take the lead. Because the days when your development was dictated in foreign capitals must come to an end.”
- Topic:
- Development, Human Welfare, Humanitarian Aid, and Foreign Aid
- Political Geography:
- Africa, United States, New York, and United Nations
149. Giving Money Away? The Politics of Direct Distribution in Resource Rich States
- Author:
- Alexandra Gillies
- Publication Date:
- 11-2010
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The governments of resource rich states have several options for how to allocate oil and mineral revenues, including the direct distribution of revenues to their citizens. This paper discusses the political feasibility and political implications of such cash transfers in the specific context of resource-rich states. Identifying the contexts in which this policy is mostly likely to emerge, and understanding the potential governance risks and benefits, will help policymakers to consider the desirability of cash transfers as an allocation choice.
- Topic:
- Development, Humanitarian Aid, Poverty, Foreign Aid, and Foreign Direct Investment
150. China in Africa: A Macroeconomic Perspective
- Author:
- Benedicte Vibe Christensen
- Publication Date:
- 11-2010
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- In recent years, China has dramatically expanded its financing and foreign direct investment to Africa. This expansion has served the political and economic interests of China while providing Africa with much-needed technology and financial resources. This paper looks at China's role in Africa from the Chinese perspective. The main conclusion is that China, as an emerging global player and one of Africa's largest trading and financial partners, can no longer ignore the macroeconomic impact of its operations on African economies. Indeed, it is in China's interest that its engagement leads to sustainable economic development on the continent. Trade, financing, and technology transfer must continue at a pace that African economies can absorb without running up against institutional constraints, the capacity to service the costs to future budgets, or the balance of payments. A key corollary is that China should show good governance in its own operations in Africa. Finally, macroeconomic analysis needs to be supported by better analytical data and organization of decision making to support China's engagement in Africa.
- Topic:
- Development and Foreign Direct Investment
- Political Geography:
- Africa and China