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11. Where Does the Money Go? Best and Worst Practices in Foreign Aid

Author:
William Easterly and Tobias Pfutze
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper does not address the issue of aid effectiveness—that is, the extent to which foreign aid dollars actually achieve their goals—but instead focuses on “best practices” in the way in which official aid is given, an important component of the wider debate. First, we discuss best practice for an ideal aid agency and the difficulties that aid agencies face because they are typically not accountable to their intended beneficiaries. Next, we consider the transparency of aid agencies and four additional dimensions of aid practice: specialization, or the degree to which aid is not fragmented among too many donors, too many countries, and too many sectors for each donor); selectivity, or the extent to which aid avoids corrupt autocrats and goes to the poorest countries; use of ineffective aid channels such as tied aid, food aid, and technical assistance; and the overhead costs of aid agencies. We compare 48 aid agencies along these dimensions, distinguishing between bilateral and multilateral ones. Using the admittedly limited in- formation we have, we rank the aid agencies on different dimensions of aid practice and then provide one final comprehensive ranking. We present these results as an illustrative exercise to move the aid discussion forward.
Topic:
Economics, Humanitarian Aid, Poverty, Third World, and United Nations

12. The Diversification Challenge in Africa's Resource-Rich Economies

Author:
John Page
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
For a growing number of countries in Africa the current commodity boom is a huge opportunity. But if the economic history of resource-rich, poor countries-especially in Africa-is any guide, rather than bringing prosperity, the resource boom may drive them into what Paul Collier (2007) in his influential book The Bottom Billion terms the "Natural Resources Trap." In Africa, countries dependent on oil, gas, and mining have tended to have weaker long-run growth, higher rates of poverty, and higher inequality than Non mineral-dependent economies at similar levels of income.
Topic:
Development, Economics, Political Economy, and Poverty
Political Geography:
Africa

13. The Implications of Service Offshoring for Metropolitan Economies

Author:
Howard Wial and Robert Atkinson
Publication Date:
02-2007
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
In the months running up to the 2004 election the issue of off- shoring—the movement of jobs from the United States to other nations—seemed to be on the front pages of newspapers every day. Some of the concern was about the loss of manufacturing jobs to lower-wage countries such as China and Mexico, a process that had been going on for decades. The offshoring of service jobs, though, was something new. Service workers—including college- educated professionals—who previously thought their jobs immune to foreign competition began to worry about this new source of job in security. Policymakers concerned about the American standard of living wondered whether service offshoring would eliminate the United States' advantage in high technology industries.
Topic:
Demographics, Economics, Government, and Poverty
Political Geography:
United States, China, and Mexico

14. Give Credit Where Credit is Due

Author:
Patrick D. Walker, Robin Varghese, Ann Schnare, Alyssa Stewart Lee, and Michael A. Turner
Publication Date:
12-2006
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Despite the vast accomplishments of the American credit system, approximately 35 million to 54 million Americans remain outside the credit system. For a variety of reasons, mainstream lenders have too little information on them to evaluate risk and thereby extend credit. As a result, those in most need of credit often turn to check cashing services and payday loan providers, with effective interest rates as high as 500 percent. The lack of reliable credit places them at a great disadvantage in building assets (such as homes, small businesses, or loans for education) and thereby improving their lives.
Topic:
Demographics, Economics, Government, and Poverty
Political Geography:
America

15. Two Steps Back: City and Suburban Poverty Trends 1999-2005

Author:
Elizabeth Kneebone and Alan Berube
Publication Date:
12-2006
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The first half of the current decade brought economic uncertainty and hardship for many Americans. In stark contrast to the late 1990s, when employment and wages were growing at historic rates, the 2000s have been marked by an economic recession, stagnant wages for many workers, and job losses followed by what some have termed a “jobless recovery.”
Topic:
Civil Society, Demographics, Economics, and Poverty
Political Geography:
America

16. Kids in the City: Indicators of Child Well-Being in Large Cities from the 2004 American Community Survey

Publication Date:
08-2006
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Conditions for children living in large cities are worse than those for children nationwide on most measures of well-being. Children growing up in large cities are at greater risk of dropping out of school, living with parents who are not in the labor force, and residing in single-parent families. Children in large cities are twice as likely as children nationwide to have difficulty speaking English (10 percent compared with 5 percent), creating potential barriers for children in school and for young adults who are entering the labor market. As a reflection of these underlying disadvantages, in 2004, more than one-fourth of children in large cities lived in poverty.
Topic:
Civil Society, Human Welfare, and Poverty
Political Geography:
United States

17. Annexation and the Fiscal Fate of Cities

Author:
David Rusk
Publication Date:
08-2006
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
An analysis of the relationship between the annexation patterns and fiscal health of the nation's largest cities shows that: A city's ability to annex land from its surrounding county is a primary determinant of its fiscal health. Cities with greater abilities to annex have much higher bond rating scores. Of cities in large metropolitan areas, every city that expanded its boundaries by as little as 15 percent between 1950 and 2000 had a high bond rating in 2002. Conversely, all cities with low bond ratings are those that had been unable to expand their boundaries. The ability to annex land varies widely by region and state. Most high- bond-rated cities are located in “big box” states (primarily in the South and West) where land is more easily annexed. Most low-bond-rated cities are in “little box” states (primarily in the Northeast and Midwest) where land is more difficult, or impossible, to annex. Annexation is far from an outmoded, dying practice. During the 1990s, about 90 percent of the central cities that could annex additional land did so. Collectively, in just one decade they expanded their municipal territory by more than 3,000 square miles.
Topic:
Demographics, Economics, and Poverty
Political Geography:
United States

18. From Poverty, Opportunity: Putting the Market to Work for Lower Income Families

Author:
Matt Fellowes
Publication Date:
07-2006
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Public and private leaders have a substantial, and widely overlooked, opportunity today to help lower income families get ahead by bringing down the inflated prices they pay for basic necessities, such as food and housing.
Topic:
Demographics, Economics, Markets, and Poverty

19. Delivering a Local EITC: Lessons from the San Francisco Working Families Credit

Author:
Tiana Wertheim and Tim Flacke
Publication Date:
05-2006
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
For families struggling to make ends meet on earnings from low-wage jobs, the federal Earned Income Tax Credit (EITC) has become an essential form of support, boosting the size of annual tax refunds by as much as several thousand dollars. The program is widely recognized for its accessibility (working through the tax code and tax filing system), administrative efficiency and simplicity, and its effectiveness in lifting working poor house- holds out of poverty. Why then shouldn't the EITC serve as a model for other programs for working families, particularly in parts of the country where high costs of living create added difficulties for lower-income residents?
Topic:
Demographics, Economics, and Poverty
Political Geography:
United States and San Francisco

20. Fulfilling the Promise: Seven Steps to Successful Community-Based Information Strategies

Author:
Pari Sabety
Publication Date:
05-2006
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
While some neighborhoods in American cities are resurgent, many others remain stubbornly entrenched in a cycle of underinvestment. A contributing factor is that—despite thriving immigrant populations, high volumes of cash transactions, and relatively stable housing markets—these neighborhoods are victims of an urban information gap which undervalues their commercial potential. The importance of good information for private and public investments is widely acknowledged, but fragmented funding, lack of standards, and spotty data has impeded either effective or universal use of these tools. This paper sets forth seven steps for practitioners and investors to follow in investing in local community information initiatives and, in turn, close the urban information gap and accelerate investment in these markets.
Topic:
Development, Economics, and Poverty
Political Geography:
United States and America