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321. The Race Against Drug Resistance

Author:
Rachel Nugent
Publication Date:
06-2010
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
We are rapidly losing our ability to cure an alarming number of the most serious and common diseases of the developing world because of an invisible adversary: drug resistance. Resistance is inevitable—but careless practices in drug supply and use are hastening it unnecessarily. Without an immediate global effort to safeguard lasting treatment effectiveness, drug resistance will quickly become a widespread threat—claiming lives, raising the cost of curing patients, and making future generations increasingly vulnerable to deadly diseases that were easily cured in the past.
Topic:
Health and War on Drugs

322. The Roots of Global Wage Gaps: Evidence from Randomized Processing of U.S. Visas

Author:
Michael Clemens
Publication Date:
06-2010
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This study uses a unique natural experiment to test a simple model of international differences in workers' wages and productivity. Large differences in wages across countries could arise from several sources. These include barriers to trade in outputs, differences in technology, differences in workers, or differences in the other factors of production accessible in different countries. To measure the relative importance of these sources in one setting, this study exploits the randomized processing of U.S. visas for a group of Indian workers who produce software within a single multinational firm. In this setting, international barriers to trade in outputs, barriers to technology transfer, and all observable or unobservable differences between workers are extremely low. The results indicate that location outside of India causes a sixfold increase in the wages of the same worker using the same technology to produce a highly tradable good. Under plausible assumptions about competition in the industry, this suggests that country-of-work by itself is responsible—in this industry—for roughly three-quarters of the gap in productivity between workers in India and workers in the richest countries. These findings have implications for open questions in labor, growth, international, and development economics.
Topic:
Economics and Labor Issues
Political Geography:
United States and India

323. Leveraging World Bank Resources for the Poorest: IDA Blended Financing Facility Proposal

Author:
Benjamin Leo
Publication Date:
06-2010
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
With the Millennium Development Goals deadline only five years away, the international donor community faces significant challenges due to the global economic crisis, record government deficits, and simultaneous funding requests from nearly every multilateral development institution. This paper proposes a new World Bank financing model for creditworthy emerging economies, such as India and Vietnam, which currently receive billions of dollars in IDA assistance. In contrast to the current IDA-centric financing model, the IBRD would provide the same loan volumes to qualifying emerging economies while IDA would provide grant subsidies to buy down the concessionality level of these IBRD loans. As such, these countries would be held harmless both in terms of aid volumes and lending terms. By better leveraging the IBRD's balance sheet for loan capital, IDA then could re-allocate what it otherwise would have provided to emerging economies. For the current IDA-15 replenishment period, this would mean up to $7.5 billion in additional assistance for the world's poorest, most vulnerable countries. In relative terms, this would entail a 30 percent increase over existing levels. Of this, African countries would have received an additional $5.5 billion in IDA assistance. If donor governments find a way to scrape together increased contributions to IDA, then the allocation pie would grow by an even larger margin. The Inter-American Development Bank already successfully utilizes a similar approach for its lower middle-income and low-income country clients. It is time for World Bank shareholders to seriously consider the same resource-maximizing model. With the IDA-16 replenishment and IBRD general capital increase negotiations currently underway, they have an excellent window of opportunity to implement this win-win-win approach.
Political Geography:
Africa, America, and Vietnam

324. Concentrating Solar Power in China and India: A Spatial Analysis of Technical Potential and the Cost of Deployment

Author:
Kevin Ummel
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Coal power generation in China and India is expected to double and triple, respectively, over the next 20 years, increasing exposure to fuel price volatility, exacerbating local air pollution, and hastening global climate change. Concentrating solar power (CSP) is a growing source of utility-scale, pollution-free electricity, but its potential in Asia remains largely unexamined. High-resolution spatial data are used to identify areas suitable for CSP and estimate power generation and cost under alternative land-use scenarios. Total technical potential exceeds current coal power output by a factor of 16 to 23 in China and 3 to 4 in India. A CSP expansion program and attendant transmission requirements are simulated with the goal of providing 20 percent of electricity in both countries by midcentury. Under conservative assumptions, the program is estimated to require subsidies of $340 billion in present dollars; coal-associated emissions of 96 GtCO2eq are averted at an average abatement cost of $30 per tCO2eq. Estimated costs are especially sensitive to the assumed rate of technological learning, emphasizing the importance of committed public policy and financing to reduce investment risk, encourage expansion of manufacturing capacity, and achieve long-term cost reductions. The results highlight the need for spatially explicit modeling of renewable power technologies and suggest that existing subsidies might be better used through integrated planning for large-scale solar and wind deployment that exploits spatiotemporal complementarities and shared infrastructure.
Topic:
Energy Policy
Political Geography:
China and India

325. The End of ODA (II): The Birth of Hypercollective Action

Author:
Jean-Michel Severino and Olivier Ray
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The development business has become much more complex in the past decade, with actors proliferating and collaboration fragmenting. This trend is characteristic of the change from collective action to what the authors term hypercollective action. Such a shift brings new energy and resources to international development, but also more difficulty managing global public policy. Severino and Ray use the lessons of the Paris Declaration—the first large-scale effort to coordinate hypercollective action—as a starting point for envisioning a new conceptual framework to manage the complexity of current international collaboration. They offer concrete suggestions to improve the management of global policies, including new ways to share information, align the goals of disparate actors, and create more capable bodies for international collaboration.
Topic:
International Relations, Development, Globalization, International Cooperation, and International Political Economy

326. Bridging the Gap: Better, Faster, and Cheaper Clinical Trials for Health Products for Neglected Diseases

Author:
Thomas Bollyky
Publication Date:
06-2010
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
There has been tremendous progress over the last decade in the development of health products for neglected diseases. These include drugs, vaccines, and diagnostics for malaria and tuberculosis, which kill millions of people annually, plus other diseases like chagas and dengue fever, which may less familiar, but nonetheless exact a large and often lethal toll in the world's poorest communities. Led by product development public private partnerships (PDPs) and fueled by the support of the Bill Melinda Gates Foundation, the National Institutes of Health, and other donors, there are now dozens of candidate products in the pipeline.
Topic:
Development, Health, Humanitarian Aid, and Infectious Diseases

327. 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

328. 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

329. 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

330. 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