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1. Restraining Ourselves: Helping by Not Hurting

Author:
Nathan Nunn
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
In this brief, I discuss the current state of economic development policy, which tends to focus on interventions, usually funded with foreign aid, that are aimed at fixing deficiencies in developing countries. The general perception is that there are inherent problems with less-developed countries that can be fixed by with the help of the Western world. I discuss evidence that shows that the effects of such ‘help’ can be mixed. While foreign aid can improve things, it can also make things worse. In addition, at the same time that this ‘help’ is being offered, the developed West regularly undertakes actions that are harmful to developing countries. Examples include tariffs, antidumping duties, restrictions on international labor mobility, the use of international power and coercion, and tied-aid used for export promotion. Overall, it is unclear whether interactions with the West are, on the whole, helpful or detrimental to developing countries. We may have our largest and most positive effects on alleviating global poverty if we focus on restraining ourselves from actively harming less-developed countries rather than focusing our efforts on fixing them.
Topic:
Development, Economics, International Political Economy, Developing World, and Economic Development
Political Geography:
United States and Global Focus

2. What Drives Religious Politicking?

Author:
Amy Erica Smith and Emma Rosenberg
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
In the last decade, scholars have begun to elaborate the diverse ways religion manifests in democracies. We draw on theories related to modernization, secularism, and religious competition, as well as survey data from the Comparative National Elections Project, to explain individual-level and country-level variation in religious politicking—religious leaders’ and organizations’ engagement in electoral campaigns. At the country level, though human development depresses the rate at which citizens receive political messages from religious organizations and clergy, both secularism and religious pluralism boost it. At the individual level, “civilizational” differences across religious groups are muted and inconsistent. However, across the globe, citizens with higher levels of education are consistently more likely to receive political messages—an effect that is stronger where religious politicking is more common. A case study of Mozambique further confirms the insights obtained when we unpack modernization and secularization theories.
Topic:
Civil Society, Democratization, Politics, Religion, Developing World, Democracy, Citizenship, and Human Development
Political Geography:
Africa, Mozambique, Global Focus, and Global South

3. Creative Destruction or Idiot Winds: Schumpeterian Theory Meets the Educational Sector in Developing Countries

Author:
Mark H. Moore
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
This is one of a series of working papers from “RISE"—the large-scale education systems research programme supported by the UK’s Department for International Development (DFID), Australia’s Department of Foreign Affairs and Trade (DFAT), and the Bill and Melinda Gates Foundation.
Topic:
Development, Education, Governance, and Developing World
Political Geography:
Global Focus

4. Enhancing Public Health Outcomes in Developing Countries: From Good Policies and Best Practices to Better Implementation

Author:
Michael Woolcock
Publication Date:
02-2018
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
In rich and poor countries alike, a core challenge is building the state’s capability for policy implementation. Delivering high-quality public health and health care – affordably, reliably, at scale, for all – exemplifies this challenge, since doing so requires deftly integrating refined technical skills (surgery), broad logistics management (supply chains, facilities maintenance), adaptive problem solving (curative care) and resolving ideological differences (who pays? who provides?), even as the prevailing health problems themselves only become more diverse, complex and expensive as countries become more prosperous. The current state of state capability in developing countries, however, is demonstrably alarming, with the strains and demands only likely to intensify in the coming decades. Prevailing ‘best practice’ strategies for building implementation capability – copying and scaling putative successes from abroad – are too often part of the problem, while individual training (‘capacity building’) and technological upgrades (e.g., new management information systems) remain necessary but deeply insufficient. An alternative approach is outlined, one centered on building implementation capability by working iteratively to solve problems nominated and prioritized by local actors.
Topic:
Health, Developing World, State, Public Policy, and Policy Implementation
Political Geography:
Global Focus

5. The Big Stuck in State Capability for Policy Implementation

Author:
Matt Andrews, Lant Pritchett, and Michael Woolcock
Publication Date:
01-2016
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
We divide the 102 historically developing countries (HDCs) into those with ‘very weak’, ‘weak’, ‘middle’, and ‘strong’ state capability. Analyzing the levels and recent growth rates of the HDCs’ capability for policy implementation reveals how pervasively “stuck” most of them are. Only eight HDCs have attained strong capability, and since most of these are small (e.g., Singapore, UAE), less than 100 million (or 1.7%) of the roughly 5.8 billion people in HDCs currently live in high capability states. Almost half (49) of these countries have very weak or weak capability, and thus their long-run pace of acquiring capability is also very slow. Alarmingly, three quarters of these countries (36 of 49) have experienced negative growth in state capability in recent decades, while more than a third of all countries (36 of 102) have low and (in the medium run at least) deteriorating state capability. At current rates, the ‘time to high capability’ of the 49 currently weak capability states and the 36 with negative growth is obviously “forever”. But even for the 13 with positive growth, only three would reach strong capability by the end of the 21st century at their current medium run growth.
Topic:
Developing World, International Development, State, and Public Policy
Political Geography:
Global Focus and United States of America

6. Aid procurement and the development of local industry: A question for Africa

Author:
Christine Zhang and Jeffrey Gutman
Publication Date:
06-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Economic development is often tied to the evolution of local industry. One way to assess a country’s emergence as a major player in the global economy is by examining the ability of its domestic firms to compete on the global market. Public procurement—the purchase of goods, works, and services by governments—represents a significant portion of this market, making up an estimated average of 15 to 30 percent of a country’s GDP. Procurement in the developing world is especially noteworthy, since large projects are often partially or wholly financed by external donors such as the World Bank and other international financial institutions (IFIs), which encourage developing country governments to internationally advertise the goods, works, or services they require and to select the most competitive bid they receive. Yet the role of IFI-funded procurement in the emergence of global markets, particularly for and among developing countries, is seldom a topic of empirical study, despite its linkages to global growth.
Topic:
Development, Economics, Emerging Markets, World Bank, and Developing World
Political Geography:
Global Focus

7. Early, Old, New and Comparative Regionalism: The Scholarly Development of the Field

Author:
Fredrik Soderbaum
Publication Date:
10-2015
Content Type:
Working Paper
Institution:
The Kolleg-Forschergruppe (KFG)
Abstract:
By tracing the intellectual roots and main characteristics of the scholarly debates on regionalism in different time periods, this Working Paper seeks to contribute to the consolidation of a fragmented field of study in search of its own intellectual history. The paper identifies four main intellectual phases: early regionalism, old regionalism (in both Europe and the developing world), new regionalism, and the current phase of regionalism, referred to as comparative regionalism. It argues that progress in the study of (comparative) regionalism requires a better understanding of the intellectual roots of the field and an acknowledgment of the many types of regions that have occurred in many different historical contexts.
Topic:
Regional Cooperation, Developing World, Intellectual History, and Regionalism
Political Geography:
Europe and Global Focus

8. The BRICS Development Bank: A New Tool for South-South Cooperation?

Author:
Jan Schablitzki
Publication Date:
12-2014
Content Type:
Working Paper
Institution:
Institute for Development and Peace
Abstract:
The Sixth BRICS Summit, held in July 2014 in Fortaleza, Brazil, resulted in agreements to establish a New Development Bank (NDB) as well as a Contingent Reserve Arrangement (CRA). This Policy Brief discusses the impact of the NDB on the existing architecture of development finance, focusing on the bank’s potential contribution to the BRICS’ South-South cooperation. The first section outlines the BRICS countries’ rational for establishing the NDB. In the following section potential development paradigms that are likely to be adopted by the NDB are addressed. Since no decision has been taken on the bank’s future governance, this section will be based on the experiences from the BRICS’ national development banks. Once the NDB’s governance is agreed upon, it will impact whether and to what extent the new bank will cooperate with the existing international system of development finance. A third section discusses the NDB’s potential appeal for the Global South. The Global South shares with the BRICS a disappointment with the existing system, and connects specific hopes and expectations with the foundation of the NDB. Examining the Banks effect on South-South cooperation, the section includes prospects on the Bank’s capital potential and by that its potential contribution to the prevalent demand for infrastructure financing in developing countries. A final section summarises the points made and aims to put the present perceptions of the NDB in rather cautious perspectives.
Topic:
Economics, International Trade and Finance, Infrastructure, and Developing World
Political Geography:
Global Focus

9. A Note on Mundell-Fleming and Developing Countries

Author:
John Weeks
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
This paper inspects the statement found in macroeconomic text books that under a flexible exchange rate regime with perfectly elastic capital flows monetary policy is effective and fiscal policy is not. The logical validity of the statement requires that the domestic price level effect of devaluation be ignored. The price level effect is noted in some textbooks, but not analysed. When it is subjected to a rigorous analysis, the interaction between exchange rate changes and domestic price level changes render the standard statement false. The logically correct statement would be, under a flexible exchange rate regime with perfectly elastic capital flows the effectiveness of monetary policy depends on the values of the import share and the sum of the trade elasticities. Monetary policy will be more effective than fiscal policy if and only if the sum of the trade elasticities exceeds the import share. Inspection of data from developing countries indicates a low effectiveness of monetary policy under flexible exchange rates. In the more general case of less than perfectly elastic capital flows the conditions for monetary policy to be more effective than fiscal policy are even more restrictive. Use of empirical evidence on trade shares and interest rate differentials suggest that for most countries fiscal policy would prove more effective than monetary policy under a flexible exchange rate regime. In any case, the general theoretical assertion that monetary policy is more effective is incorrect.
Topic:
Monetary Policy, Developing World, Capital Flows, Macroeconomics, and Fiscal Policy
Political Geography:
Global Focus

10. The Unemployment Impact of Immigration in OECD Countries

Author:
Sébastien Jean and Miguel Jimenez
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
This paper assesses the consequences of immigration for natives' unemployment in OECD countries and investigates the role played by product and labour market policies in the economy's adjustment to immigration inflows. The estimations, combining a skill-level and an aggregate approach using data for males, cover eighteen OECD countries over the period 1984-2003. While no significant long-run impact is found, an increase in the share of immigrants in the labour force is estimated to raise temporarily natives' unemployment, over a period of approximately five to ten years. Anticompetitive product market regulations are found to increase both the magnitude and the persistence of this impact, while more stringent employment protection legislation magnifies its persistence, and a higher average replacement rate of unemployment benefits increases its magnitude.
Topic:
Migration, Labor Issues, Immigration, Developing World, and Unemployment
Political Geography:
Global Focus