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161. Development Assistance and Conflict in Sri Lanka: Lessons from the Eastern Province

Publication Date:
04-2009
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Violence, political instability and the government's reluctance to devolve power or resources to the fledgling provincial council are undermining ambitious plans for developing Sri Lanka's Eastern Province. The east continues to face obstacles to economic and political progress and offers lessons for development agencies and foreign donors considering expanding their work into newly won areas in the Northern Province. While there is still potential for progress in the east, it remains far from being the model of democratisation and post conflict reconstruction that the government claims. Donors should adopt a more coordinated set of policies for the war-damaged areas of Sri Lanka, emphasising civilian protection, increased monitoring of the effects of aid on conflict dynamics and collective advocacy with the government at the highest levels.
Topic:
Conflict Resolution, Political Violence, Development, Humanitarian Aid, and War
Political Geography:
South Asia and Sri Lanka

162. The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence

Author:
David Roodman and Jonathan Morduch
Publication Date:
06-2009
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
The most-noted studies on the impact of microcredit on households are based on a survey fielded in Bangladesh in the 1990s. Contradictions among them have produced lasting controversy and confusion. Pitt and Khandker (PK, 1998) apply a quasi-experimental design to 1991–92 data; they conclude that microcredit raises household consumption, especially when lent to women. Khandker (2005) applies panel methods using a 1999 resurvey; he concurs and extrapolates to conclude that microcredit helps the extremely poor even more than the moderately poor. But using simpler estimators than PK, Morduch (1999) finds no impact on the level of consumption in the 1991–92 data, even as he questions PK's identifying assumptions. He does find evidence that microcredit reduces consumption volatility. Partly because of the sophistication of PK's Maximum Likelihood estimator, the conflicting results were never directly confronted and reconciled. We end the impasse. A replication exercise shows that all these studies' evidence for impact is weak. As for PK's headline results, we obtain opposite signs. But we do not conclude that lending to women does harm. Rather, all three studies appear to fail in expunging endogeneity. We conclude that for non-experimental methods to retain a place in the program evaluator's portfolio, the quality of the claimed natural experiments must be high and demonstrated.
Topic:
Development, Economics, Foreign Aid, and Foreign Direct Investment
Political Geography:
Bangladesh, South Asia, and Asia

163. Can India catch up with China?

Publication Date:
09-2009
Content Type:
Working Paper
Institution:
Oxford Economics
Abstract:
Although it is only since 2000 that the growing economic power of the Chinese 'dragon' has emerged fully into the media spotlight, its GDP has in fact been growing at an average rate of close to 10% pa for the last 30 years. On a PPP basis, China is already the second largest economy in the world. The Indian 'elephant', on the other hand, has grown at a more sedate pace, but following a burst in the 2000s it now has the fourth largest GDP in the world on a PPP basis and has been close to emulating Chinese growth rates. With the global economy perhaps now starting to recover slowly from the deep recession, it is possible that India is better placed than China to benefit from what may prove to be a fairly slow period of growth in the developed economies in the years ahead, with the latter's huge exports of manufactured goods struggling to recapture the momentum of the last ten years. For China, net trade will probably be a significant drag on growth in the year ahead, while the stimulus from state-led investment may begin to peter out. In order to maintain earlier rapid growth, the Chinese economy will need to rely much more heavily on domestic demand than before, especially if global over-capacity appears in certain key industries. Despite the apparent resilience of the economy to the global recession, there are a number of question marks over whether this shift can be made quickly. India's fundamentals have become more favourable given the rise in its service sector and climbing FDI inflows (albeit both of these remain well below Chinese levels), and its lower reliance on trade will also mean that it is less exposed to what may be a lengthy period of sluggish world demand. But it also faces problems, including an inefficient agricultural sector, a still-burdensome bureaucracy and a cautious stance towards privatisation. Its fiscal position is also much weaker than China, which may be a long-term threat to greater foreign investment. India also has the benefit of being a democracy – although to date this has probably hampered rather than helped growth performance, it should facilitate faster growth in the longer term. China's authoritarian regime has enabled policies to be implemented more quickly and with little regard to public popularity, but this may be storing up socio-political problems for the longer term, especially if growth were to slow sharply. Demographic factors should also favour India, but again over the long term rather than the next decade. China's decision to start to reverse its one-child policy indicates mounting concern about its ageing population and labour shortages in the future. India on the other hand may be able to turn population growth trends to its advantage, as long as it can improve the skills base. In conclusion, although India's growth trend is forecast to pick-up to 7-8% over the next decade, this is not likely to be enough to overtake China's pace of expansion. But India's recent surge in growth was achieved with few reforms – if it can manage to implement further liberalisation measures, attract increasing FDI inflows and turn its more favourable demographics to its advantage, then the 'elephant' may begin to catch up with the 'dragon' after 2020, although by that time the gap will be even wider than it is now.
Topic:
Development, Economics, and Foreign Direct Investment
Political Geography:
China, South Asia, and India

164. U.S.-India and India-East Asia Relations

Author:
Satu Limaye
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
India's relations with the U.S. and East Asia during 2008 took place amidst remarkable flux domestically, within the South Asian region, and around the world – all of which directly and indirectly influenced developments in bilateral relations. The two issues that dominated U.S.-India relations during 2008 were the civilian nuclear cooperation deal and, at the end of the year, the U.S.-India-Pakistan triangle including the issues of terrorism and Kashmir. India's relations with East Asia were quiescent during 2008. A notable development was the completion of an India-ASEAN free trade agreement, although its economic implications remain uncertain. India accentuated the positive with Myanmar as bilateral relations became more cordial while relations with China seemed to be on hold for most of the year as the border dispute remained unresolved and India responded cautiously to the Chinese handling of unrest in Tibet.
Topic:
International Relations, Development, and Terrorism
Political Geography:
Pakistan, United States, South Asia, India, and East Asia

165. The Dalit Movement and Democratization in Andhra Pradesh

Author:
K.Y. Ratnam
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
This study argues that the democratic state in India is an historical product of very specific circumstances; as such the broader idea of democracy is not consistent with the specific Caste system. Therefore, there is serious juxtaposition between the institutional promise of democracy and the real practice of democracy in relation to the victims of the caste system, the Dalits. However, the caste based hierarchical relations of dominance and subordination have provided sufficient conditions for the rise of Dalit consciousness and these objective conditions have transformed into the sites of democratic struggles when the Dalits are affronted with the real operation of liberal democratic principles of, equality, freedom, fraternity, and social justice. Caste conflict, thus, lies at the structural dimensions of Indian society in the form of exclusion, discrimination, and economic inequality. Inequalities based on the caste divisions are intrinsically anti democratic, and the caste system as an oppressive ideological system represents the scheme of power, domination, privilege, and hierarchy. Its very foundation remains acentral obstacle in the path of democratic redistribution of power.
Topic:
Democratization, Development, and Political Economy
Political Geography:
South Asia and India

166. Sri Lanka: Sinhala Nationalism and the Elusive Southern Consensus

Publication Date:
11-2007
Content Type:
Policy Brief
Institution:
International Crisis Group
Abstract:
Sinhala nationalism, long an obstacle to the resolution of Sri Lanka's ethnic conflict, is again driving political developments on the island. Nationalist parties, opposed to any significant devolution of power to Tamil areas of the north and east and to negotiations with the Tamil Tigers, help set President Mahinda Rajapaksa's agenda. The government takes a hardline stance, responding in part to opposition to the flawed 2002-2006 ceasefire and peace process. Would-be peacemakers need to better understand Sinhala nationalism, which is too often dismissed as merely irrational and racist. With little likelihood of a new formal peace process soon, the longterm challenges it poses to the conflict's resolution need to be addressed.
Topic:
Conflict Resolution, Democratization, and Development
Political Geography:
South Asia and Sri Lanka

167. Interview with Ed Luce: Inspite of the Gods: The Rise of Modern India

Author:
Nermeen Shaikh
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
Edward Luce is the Washington bureau chief for the Financial Times. He was the paper's South Asia bureau chief, based in New Delhi, between 2001 and 2006. From 1999–2000, Luce worked in the Clinton administration as the speechwriter to Treasury Secretary Larry Summers. Educated at Oxford and married into an Indian family, Luce now lives in Washington, D.C.
Topic:
Development, Economics, and Politics
Political Geography:
South Asia, Washington, India, Asia, and New Delhi

168. Finding the Money: Informal Credit Practices in Rural Afghanistan

Author:
Floortje Klijin and Adam Pain
Publication Date:
06-2007
Content Type:
Research Paper
Institution:
Afghanistan Research and Evaluation Unit (AREU)
Abstract:
It is widely believed that there is a strong demand for credit in Afghanistan and that much of this demand is unmet, justifying a major programme in microcredit provision. But there is very little understanding of the extent and the workings of informal credit systems, particularly outside opium poppy growing areas. Is there such an absence of credit available to poor rural households as is assumed? Do microfinance and informal credit respond to the same needs? Is informal credit simply the same thing as formal credit, except that it takes place outside formal institutions? And if there is more informal credit available than is believed, what does this mean for the development and role of formal credit systems? These key questions informed a detailed anthropological study of informal credit practices in three contrasting villages in Herat, Ghor and Kapisa. Drawing from a detailed presentation of eight households case studies, and amplified with addition case material, a number of key conclusions can be drawn from the findings.
Topic:
Development, Economics, Monetary Policy, Microcredit, Rural, Money, Demand, and Credit
Political Geography:
Afghanistan and South Asia

169. "BRIC countries are opaque"

Author:
George Vojta
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
Media Tenor International
Abstract:
Media Tenor: Even within the BRIC States one cannot say that all three are on the Media Agenda, not mention developing countries. What could be the reason for this salience? Vojta: My sense is that the four BRIC countries are rising in media visibility as they become more significant players in the global system. Very shortly these four countries will surpass the G7countries in annual absolute growth results.
Topic:
Development, Economics, International Trade and Finance, and Infrastructure
Political Geography:
Russia, China, South Asia, and Latin America

170. India's Future: It's About Jobs

Author:
Geoffrey N. Keim and Beth Anne Wilson
Publication Date:
11-2007
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Projections of sustained strong growth in India depend importantly on the utilization of the huge increase in India's working-age population projected over the next two decades. To date, however, India's economic growth has been concentrated in high-skill and capital-intensive sectors, and has not generated strong employment growth. In this paper, we highlight the tension between India's performance in output and employment, describe the characteristics of India's demographic dividend, and discuss impediments to India's shift away from agriculture.
Topic:
Development, Economics, and Markets
Political Geography:
South Asia and India