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171. Learning to Target for Economic Diversification: PDIA in Sri Lanka

Author:
Matt Andrews and Peter Harrington
Publication Date:
01-2017
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Many countries, like Sri Lanka, are trying to diversify their economies but often lack the capabilities to lead diversification programs. One of these capabilities relates to targeting new sectors to promote and pursue through a diversification policy: countries know they are ‘doomed to choose’ sectors to target,1 but lack effective capabilities to do the targeting. This paper narrates a recent (and ongoing) initiative to establish this kind of capability in Sri Lanka. The initiative adopted a Problem Driven Iterative Adaptation (PDIA) process, where a team of Sri Lankan officials worked with Harvard Center for International Development (CID) facilitators to build capabilities. The paper tells the story of this process, providing documented evidence of the progress over time and describing the thinking behind the PDIA process. It shows how a reliable targeting mechanism can emerge in a reasonably limited period, when a committed team of public officials are effectively authorized and engaged. The paper will be of particular interest to those thinking about targeting for diversification and to those interested in processes (like PDIA) which are focused on building state capability and fostering policy implementation in public contexts.
Topic:
Development, Economics, Economic growth, and Economic Policy
Political Geography:
South Asia and Sri Lanka

172. Institutions vs. Social Interactions in Driving Economic Convergence: Evidence from Colombia

Author:
Michele Coscia, Timothy Cheston, and Ricardo Hausmann
Publication Date:
02-2017
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Are regions poor because they have bad institutions or are they poor because they are disconnected from the social channels through which technology diffuses? This paper tests institutional and technological theories of economic convergence by looking at income convergence across Colombian municipalities. We use formal employment and wage data to estimate growth of income per capita at the municipal level. In Colombia, municipalities are organized into 32 departamentos or states. We use cellphone metadata to cluster municipalities into 32 communication clusters, defined as a set of municipalities that are densely connected through phone calls. We show that these two forms of grouping municipalities are very different. We study the effect on municipal income growth of the characteristics of both the state and the communication cluster to which the municipality belongs. We find that belonging to a richer communication cluster accelerates convergence, while belonging to a richer state does not. This result is robust to controlling for state fixed effects when studying the impact of communication clusters and vice versa. The results point to the importance of social interactions rather than formal institutions in the growth process.
Topic:
Development, Economics, Science and Technology, Economic growth, and Institutions
Political Geography:
Colombia and South America

173. Africa Capacity Report 2017: Building Capacity in Science, Technology and Innovation for Africa’s Transformation

Publication Date:
01-2017
Content Type:
Special Report
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
African countries have shown their interest and willingness to strive for science, technology, and innovation (STI)-led development in the coming years. African heads of state and decisionmakers, through Agenda 2063 and the Common African Position in Agenda 2030, have highlighted STI as a key enabler promoting the ability of African countries to achieve their economic transformation and development goals. This commitment was clearly expressed by the adoption of a 10-year Science, Technology, and Innovation Strategy for Africa (STISA-2024) in June 2014 at the 23rd Ordinary Session of African Union Heads of State and Government Summit. The strategy links science, technology, and innovation to Africa’s sustainable economic transformation.
Topic:
Development, Science and Technology, Economic growth, Capacity, and Innovation
Political Geography:
Africa

174. The Expansion of Regional Supermarket Chains: Implications for local suppliers in Zambia

Author:
Francis Ziba and Mwanda Phiri
Publication Date:
03-2017
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
The last two decades have seen rapid economic growth in Zambia and the proliferation of foreign supermarket chain stores. However, this growth has translated into neither significant job creation nor significant poverty reduction. Furthermore, while the expansion of supermarket chains in Zambia has continued, local processing firms’ participation in supermarket value chains remains limited. This paper assesses the hindrances to local processing firms’ participation in supermarket value chains and how those firms’ participation might stimulate growth through regional trade. Our results show that local processing firms’ participation in regional supermarket value chains is constrained by a number of factors that pose either strategic or structural barriers to entry.
Topic:
Economic growth, Private Sector, Retail, Regional Economy, and Value Chains
Political Geography:
Africa and Zambia

175. Opportunities and Challenges for Mozambique From the Indian Expansion in Africa

Author:
Hetalben Haribhai Patel
Publication Date:
12-2017
Content Type:
Journal Article
Journal:
Brazilian Journal of African Studies
Institution:
Brazilian Journal of African Studies
Abstract:
This paper is organized in four main sections. The first one describes the economic relationships between India and Mozambique in the last five years taking into account the bilateral commercial and investment relationships in private and energy sectors. Apart from trade and investments, the first section of this work also presents data on the credit lines opened by India and their allocation in different projects in Mozambique and the donations made by the Indian government. The second section of the paper analyses the opportunities that India’s approximation represents for Mozambique in different areas, since India’s economic growth and its interest in Mozambican resources and location enable cooperation to flourish and the development of strategic areas in Mozambique such as education, health and infrastructure. Even though, the opportunities can only be fully reached when the states become sufficiently prepared with strategic policies and specialized institutions on India. That way, the third section of the paper presents the main challenges that this opportunity represents for the Mozambican State. With the completion of this article, we hope to answer the following question: what are the opportunities and challenges for Mozambique from the Indian Expansion to Africa?
Topic:
Foreign Policy, Bilateral Relations, Partnerships, Economic growth, and Trade
Political Geography:
Africa, South Asia, India, and Mozambique

176. Sustainable Infrastructure Development in Sub Saharan Africa: A View from the Ground

Author:
Jamal Saghir
Publication Date:
04-2017
Content Type:
Policy Brief
Institution:
Institute for the Study of International Development, McGill University
Abstract:
The objective of this policy brief is to discuss issues affecting sustainable infrastructure development in Sub-Saharan Africa (SSA)2 countries including challenges, opportunities, and investment options facing SSA countries. Sustainable infrastructure refers to the designing, building, and operating of infrastructure 3 projects taking into account social, economic, financial, ecological and environmental considerations. Sustainable infrastructure enhances quality of life for citizens, helps protect vital natural resources and environment, and promotes a more effective and efficient use of financial resources.4 Infrastructure development and financing are an indispensable component of growth for any economy, and are an essential building block for SSA countries to get on the path of sustainable development. However, at present, SSA countries lack adequate and sustainable infrastructure to support increased economic growth. Overall and by all indicators, SSA is the least endowed region of the world in terms of infrastructure, even when compared too low- and middle-income countries in other developing regions. Moreover, private sector investments in SSA infrastructure remain among the lowest in the world. This is due to a number of contributing factors, including small country size that affects economies of scale and service delivery costs; low incomes that constrain affordability; weak institutions; underdeveloped domestic capital markets resulting in lack of locally-denominated long term capital; and relatively poor business environments. Closing SSA’s infrastructure gap would thus require a multi-track approach to increase all forms of public and private investments and leverage a variety of financial instruments, including guarantees.
Topic:
Development, Infrastructure, Economic growth, and Sustainability
Political Geography:
Africa and Sub-Saharan Africa

177. Dynamic Cities? The Role of Urban Local Governments in Improving Urban Service Delivery Performance in Africa and Asia

Author:
Jamie Boex, Ammar A. Malik, Devanne Brookins, and Ben Edwards
Publication Date:
07-2016
Content Type:
Research Paper
Institution:
Urban Institute
Abstract:
Cities are engines of economic growth that provide spaces for social transformation and political inclusion. Their ability to deliver widely accessible and efficiently functioning public services drives productivity and sustains development. We design and apply an assessment framework to 42 cities in 14 African and Asian countries to better understand the functional, administrative, and political dimensions determining the quality and coverage of water, sanitation, and solid waste collection services. We find that urban local governments are constrained in their authority and discretion to deliver basic public services. Reforming intergovernmental institutional structures to better match responsibilities is essential for realizing cities’ full economic potential.
Topic:
Government, Water, Governance, International Development, Economic growth, Urban, Sanitation, Services, and Cities
Political Geography:
Africa, Asia, and Global Focus

178. Women’s Economic Empowerment: A Review of Evidence on Enablers and Barriers

Author:
H. Elizabeth Peters, Nan Marie Astone, Ammar A. Malik, Fenohasina Rakotondrazaka Maret, and Caroline Heller
Publication Date:
10-2016
Content Type:
Research Paper
Institution:
Urban Institute
Abstract:
Besides human rights protection and social welfare improvement, fostering female participation in the economy can stimulate growth with human capital accumulation and enhance the competitiveness of businesses. But women face many barriers to participating in the labor market, particularly in high productivity sectors, due to limited investments in education, time burdens from care responsibilities, legal prohibitions to land ownership, and sexual harassment and violence. We find evidence that improving access to infrastructure and public services, reforms in inheritance laws, family friendly workplace policies, and reduction in levels of violence can significantly improve women’s economic empowerment.
Topic:
Gender Issues, Labor Issues, Women, International Development, Economic growth, and Cities
Political Geography:
Global Focus

179. Women in Pakistan's Urban Informal Economy

Author:
Ammar A. Malik, Hadia Majid, Husnain Fateh, and Iromi Perera
Publication Date:
01-2016
Content Type:
Research Paper
Institution:
Urban Institute
Abstract:
In rapidly urbanizing developing countries, the prevalence large-scale informality within urban economies increases social vulnerabilities, stifles worker productivity and dampens regional economic growth. With the prospect of better jobs attracting millions into cities each year, rising urban poverty levels are encouraging international nonprofits to allocate greater resources toward urban programs. Our fieldwork in Pakistan reveals that above all else, urban informal workers require improvements in public service delivery, skillset development and collective bargaining capacity. We propose implementing future urban programs through an iterative learning, adaptation and implementation approach allowing nonprofits to leverage greater impact from finite resources.
Topic:
Gender Issues, Labor Issues, Women, Income Inequality, International Development, Economic growth, Family, and Cities
Political Geography:
Pakistan and South Asia

180. Intra-Regional Trade: Potential Catalyst for Growth in the Middle East

Author:
Bernard Hoekman
Publication Date:
04-2016
Content Type:
Special Report
Institution:
Middle East Institute (MEI)
Abstract:
This Policy Paper is part of The Middle East Institute's Regional Cooperation Series. Throughout 2016, MEI will be releasing several policy papers by renowned scholars and experts exploring possibilities to foster regional cooperation across an array of sectors. The purpose is to highlight the myriad benefits and opportunities associated with regional cooperation, and the high costs of the continued business-as-usual model of competition and intense rivalry.
Topic:
Regional Cooperation, Business, Economic growth, and Trade
Political Geography:
Middle East