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11. Migration as a Strategy for Household Finance: A Research Agenda on Remittances, Payments, and Development

Author:
Michael Clemens and Timothy N. Ogden
Publication Date:
02-2014
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
It is time to fundamentally reframe the research agenda on remittances, payments, and development. We describe many of the research questions that now dominate the literature and why they lead us to uninformative answers. We propose reasons why these questions dominate, the most important of which is that researchers tend to view remittances as states do (as windfall income) rather than as families do (as returns on investment). Migration is, among other things, a strategy for financial management in poor households: location is an asset, migration an investment. This shift of perspective leads to much more fruitful research questions that have been relatively neglected. We suggest 12 such questions.
Topic:
Economics, Migration, Political Economy, Poverty, Labor Issues, and Immigration

12. Stopping Deforestation: What Works and What Doesn't

Author:
Jonah Busch and Kalifi Ferretti-Gallon
Publication Date:
05-2014
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
A new Center for Global Development meta-analysis of 117 studies has identified the key factors that drive or deter deforestation. Some findings confirm conventional wisdom. Building roads and expanding agriculture in forested areas, for example, worsen deforestation, whereas protected areas deter deforestation. Encouragingly, payments for ecosystem services (PES) programs that compensate people who live in or near forests for maintaining them are consistently associated with lower rates of deforestation. But contrary to popular belief, poverty is not associated with greater deforestation, and the rising incomes brought about by economic growth do not, in themselves, lead to less deforestation. Community forest management and strengthening land tenure, often thought to reduce deforestation while promoting development, have no consistent impact on deforestation.
Topic:
Agriculture, Economics, Environment, and Poverty

13. Understanding Latin America's Financial Inclusion Gap

Author:
Liliana Rojas-Suarez and Maria Alejandra Amado
Publication Date:
05-2014
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper analyzes Latin America's Financial Inclusion Gap, the difference between the average financial inclusion for Latin America and the corresponding average for a set of comparator countries. At the country level, we assess four types of obstacles to financial inclusion: macroeconomic weaknesses, income inequality, institutional deficiencies and financial sector inefficiencies. A key finding of this paper is that although the four types of obstacles explain the absolute level of financial inclusion, institutional deficiencies and income inequality are the most important obstacles behind the Latin America's financial inclusion gap. From our analysis at the individual level, we find that there is a Latin America-specific effect of education and income. The results suggest that the effect of attaining secondary education on the probability of being financially included is significantly higher in Latin America than in its comparators. Furthermore, the difference in the probability of being financially included between the richest and the poorest individuals is significantly higher in Latin America than in comparator countries.
Topic:
Economics, Education, Human Rights, and Poverty
Political Geography:
Latin America

14. Commitment to Development Index 2013

Author:
Owen Barder and Petra Krylová
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
The Commitment to Development Index ranks 27 of the world's richest countries on policies that affect the more than five billion people living in poorer nations. The CDI goes beyond measures of foreign aid to quantify performance in seven areas: Quantity and quality of foreign aid Openness to trade policies that encourage investment and financial transparency Openness to migration Environmental policies Promotion of international security Support for technology creation and transfer Why does the CDI matter? Because in an integrated world, the behavior of rich countries and powerful institutions can profoundly affect the lives of people in poor countries and because poverty and weak institutions in developing countries can breed public health crises, security threats, and economic crises that know no borders. Committing to policies that promote development and well-being is a global imperative: no human being should be denied the chance to live free of poverty and oppression and to enjoy a basic standard of education and health. The CDI countries all promote respect for human life and dignity; the Index looks at whether the policies of rich countries match these aspirations.
Topic:
Security, Development, Education, Health, Poverty, and Fragile/Failed State

15. Savings by and for the Poor: A Research Review and Agenda

Author:
Dean Karlan, Jonathan Zinman, and Aishwarya Lakshmi Ratan
Publication Date:
11-2013
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The poor can and do save, but often use formal or informal instruments that have high risk, high cost, and limited functionality. This could lead to undersaving compared to a world without market or behavioral frictions. Undersaving can have important welfare consequences: variable consumption, low resilience to shocks, and foregone profitable investments.
Topic:
Development, Economics, Globalization, International Trade and Finance, Markets, Poverty, and Financial Crisis

16. Primary Schooling, Student Learning, and School Quality in Rural Bangladesh

Author:
Mohammad Niaz Asadullah and Nazmul Chaudhury
Publication Date:
12-2013
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Using a primary school curricular standard basic mathematics competence test, this paper documents the low level of student achievement amongst 10-18 year old rural children in Bangladesh and tests the extent to which years spent in school increases learning. Our sample includes children currently enrolled in school as well as those out of school. About half of the children failed to pass the written competence test, a finding that also holds for those completing primary schooling. Even after holding constant a wide range of factors such as household income, parental characteristics, current enrollment status, and a direct measure of child ability, there remains a statistically significant correlation between schooling attained and basic mathematics competence above and beyond primary school completion. This pattern is more pronounced for girls who have lower competence compared to boys despite higher grade completion.
Topic:
Development, Economics, Islam, and Poverty
Political Geography:
South Asia

17. Is It All About the Tails? The Palma Measure of Income Inequality

Author:
Alex Cobham and Andy Sumner
Publication Date:
09-2013
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
There are normative or instrumental reasons why inequality may be said to matter (e.g. fairness and meritocracy). However, much global literature has taken an instrumentalist approach as to why high or rising inequality can hinder development. For example, Birdsall (2007) argues that income inequality in developing countries matters for at least three instrumental reasons: where markets are underdeveloped, inequality inhibits growth through economic mechanisms; where institutions of government are weak, inequality exacerbates the problem of creating and maintaining accountable government, increasing the probability of economic and social policies that inhibit growth and poverty reduction; and where social institutions are fragile, inequality further discourages the civic and social life that underpins the effective collective decision-making that is necessary to the functioning of healthy societies.
Topic:
Economics, Poverty, Social Stratification, and Labor Issues

18. The New Transparency in Development Economics: Lessons from the Millennium Villages Controversy

Author:
Michael Clemens and Gabriel Demombynes
Publication Date:
09-2013
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The Millennium Villages Project is a high profile, multi-country development project that has aimed to serve as a model for ending rural poverty in sub-Saharan Africa. The project became the subject of controversy when the methodological basis of early claims of success was questioned. The lively ensuing debate offers lessons on three recent mini-revolutions that have swept the field of development economics: the rising standards of evidence for measuring impact, the “open data” movement, and the growing role of the blogosphere in research debates.
Topic:
Development, Economics, Poverty, and Foreign Aid
Political Geography:
Africa

19. A Note on the Middle Class in Latin America

Author:
Nancy Birdsall
Publication Date:
08-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The Carbon Monitoring for Action (CARMA) database provides information about the carbon dioxide emissions, electricity production, corporate ownership, and location of more than 60,000 power plants in over 200 countries. Originally launched in 2007, CARMA is provided freely to the public at www.carma.org and remains the only comprehensive data source of its kind. This paper documents the methodology underpinning CARMA v3.0, released in July, 2012. Comparison of CARMA model output with reported data highlights the general difficulty of precisely predicting annual electricity generation for a given plant and year. Estimating the rate at which a plant emits CO2 (per unit of electricity generated) generally faces fewer obstacles. Ultimately, greater disclosure of plant-specific data is needed to overcome these limitations, particularly in major emitting countries like China, Russia, and Japan. For any given plant in CARMA v3.0, it is estimated that the reported value is within 20 percent of the actual value in 85 percent of cases for CO2 intensity, 75 percent for annual CO2 emissions, and 45 percent for annual electricity generation. CARMA's prediction models are shown to offer significantly better estimates than more naïve approaches to estimating plant-specific performance.
Topic:
Democratization, Economics, Poverty, and Social Stratification
Political Geography:
Russia, Japan, China, America, and Latin America

20. Where Will the World's Poor Live? An Update on Global Poverty and the New Bottom Billion

Author:
Andy Sumner
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper updates the distribution of global poverty data and makes projections up to 2020. The paper asks the following question: Do the world's extreme poor live in poor countries? It is argued that many of the world's extreme poor already live in countries where the total cost of ending extreme poverty is not prohibitively high as a percentage of GDP. And in the not-too-distant future, most of the world's poor will live in countries that do have the domestic financial scope to end at least extreme poverty. This would imply a reframing of global poverty as largely a matter of domestic distribution.
Topic:
Development, Economics, and Poverty