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3181. Globalization and Smallholders: The Adoption, Diffusion, and Welfare Impact of Non-traditional Export Crops in Guatemala

Author:
Paul Winters, Angeli Kirk, Benjamim Davis, and Calogero Carletto
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
As developing countries continue on the path of economic liberalization, there is a compelling need to ensure that the benefits of globalization reach poor rural communities. Increased commercialization of agriculture and diversification into nontraditional exports (NTXs) is one strategy that has often been advocated as a way for developing countries to use their comparative advantage in lower labor costs and to achieve growth in the agricultural sector. Given the predominantly rural nature of most developing countries and the preponderance of poor people in these areas, high-value agricultural production is considered the ideal mechanism to extend the benefits of globalization directly to the rural poor:1 Allowing poor farmers to shift into the export sector and take advantage of internationally demand driven prices that are higher relative to traditional crops may reduce inequality while fostering overall economic growth (Nissanke and Thorbecke 2007).
Topic:
Agriculture, Development, Globalization, International Trade and Finance, and Poverty
Political Geography:
Global Focus

3182. In Search of The 21st Century Developmental State

Author:
Peter B. Evans
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Centre for Global Political Economy, University of Sussex
Abstract:
What role for the developmental state in the 21st century? What state structures and political institutions will best equip nations trying to enter the ranks of "developed" countries? I offer two interconnected propositions. The first stresses continuity: the "developmental state" will continue to play a crucial a role in economic growth and social transformation in the 21st century, just as it did in the latter half of the 20th century. The second is more radical: successful 21st century developmental states will have to depart fundamentally from existing models of the developmental state in order to achieve success. Growth strategies focused primarily on traditional capital accumulation will no longer suffice. State-society ties can no longer be focused narrowly on relations with capitalist elites.
Topic:
Development, Economics, Capitalism, International Development, and Global Political Economy
Political Geography:
Global Focus

3183. Analysis of Poverty and Inequality in Bolivia, 1999-2005: A Microsimulation Approach

Author:
Claudia Gutierrez
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper studies the changes in inequality and poverty in the period 1999-2005 in Bolivia through the analysis of the changes in the labour market. A decomposition method based on micro-simulation techniques was applied. The decomposition works with an income generation model at the household level, which is a set of equations for the individual earnings and for the labour supply and occupational choices for each member of the household. We decomposed the observed change in inequality into four components: i) a shift in the income distribution related to a change in employment rates and the shares of wage and non-wage labour among the employed population (participation effect); ii) a shift related to changes in the remuneration of observed characteristics of the employed population (price effect); iii) a shift related to a change in the distribution of error terms of estimated earnings functions (error term effect); and iv) a residual change in inequality not captured by the first three simulated changes in the income distribution. According to our results the increase in inequality of 3 points of the Gini coefficient, was explained by approximately 1 point for the participation, price and error term effects and 2 points for the residual change. The increase in the unemployment rate, the shift in the participation of the non wage earners, the rise in wages and the more unequal distribution of unobserved productive talents deteriorated the income distribution in this period in Bolivia. Regarding the poverty incidence, the observed variation was a reduction by 3 points explained mainly by the residual change. The low magnitude of the simulated effects as determinants of the decline in poverty in those years can be explained by the rising participation of the non labour incomes in the total household income.
Topic:
Development, Economics, Poverty, Inequality, and Simulation
Political Geography:
South America and Bolivia

3184. Microfinance’s Impact on Education, Poverty, and Empowerment: A Case Study from the Bolivian Altiplano

Author:
Sarah Gibb
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This study explores the impact of microcredits on the economic, educational, and empowerment levels of women from the Bolivian high plains who had acquired microcredits for over three years. Primary research was carried out with the help of a major NGO dedicated solely to microcredits. One hundred in-depth personal interviews were conducted by the author in La Paz and El Alto from February to May 2007. This region was chosen because of the wide extent to which microcredits have been implemented there since the 1980s. The author also created a control group of women who had never taken out a microcredit loan. The study employs the use of an established poverty scorecard to measure poverty levels over time. Using a comparative approach that allows a comparison between the independent control group and the loan group, the study found that while the ownership of goods increased in the loan group, the benefits of microcredits on family educational attainment levels and empowerment were questionable. It is important to note that the vast majority of microcredit research does not use this type of independent control group.
Topic:
Development, Women, Microcredit, Empowerment, and Microfinance
Political Geography:
South America and Bolivia

3185. Financial Liberalisation, Bureaucratic Corruption and Economic Development

Author:
Keith Blackburn and Gonzalo F. Forgues-Puccio
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
We study the e§ect of international Önancial integration on economic development when the quality of governance may be compromised by corruption. Our analysis is based on a dynamic general equilibrium model of a small economy in which growth is driven by capital accumulation and public policy is administered by governmentappointed bureaucrats. Corruption may arise due to the opportunity for bureaucrats to embezzle public funds, an opportunity that is made more attractive by Önancial liberalisation which, at the same time, raises e¢ ciency in capital production. Our main results may be summarised as follows: (1) corruption is always bad for economic development, but its e§ect is worse if the economy is open than if it is closed; (2) the incidence of corruption may, itself, be a§ected by both the development and openness of the economy; (3) Önancial liberalisation is good for development when governance is good, but may be bad for development when governance is bad; and (4) corruption and poverty may co-exist as permanent, rather than just transitory, Öxtures of an economy.
Topic:
Corruption, Development, Finance, and Liberalization
Political Geography:
Global Focus

3186. Investment in Stadia and Regional Economic Development – Evidence from FIFA World Cup 2006

Author:
Arne Feddersen, André L. Grötzinger, and Wolfgang Maennig
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Using the case of the new stadiums for the FIFA World Cup 2006 in Germany, this paper is the first multivariate work that examines the potential income and employment effects of new stadiums outside of the USA. This study is also the first work on this topic that conducts tests on the basis of a (serial correlation consistent) Difference-in-Difference model with level and trends. As a robustness check, we use the “ignoring time series information” model in a form that is modified for nonsynchronous interventions. We were not able to identify income or employment effects of the construction of new stadiums for the FIFA World Cup 2006, which are significantly different from zero.
Topic:
Development, Economics, Infrastructure, Sports, Regional Economy, and Stadiums
Political Geography:
Europe and Germany

3187. Africa and Development Cooperation – Successes, Pitfalls and Areas for Further Reforms

Author:
Eveline Herfkens
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
The publication contends that development assistance has been of benefit to developing countries over the years. It has helped to build physical infrastructural, human and institutional capacities and deliver some level of growth in recipient countries. Through civil society organizations, it has been instrumental in raising voices on the need for good governance, to stem the tide of corruption, and to promote development effectiveness of both aid and domestic resources. The Author also notes with the same fervor that development assistance has equally had its negative results list: traditional technical assistance has tended to supplant local capacity, undermine local knowledge and institutions and render recipient countries more vulnerable and dependent on aid. Reasons for these shortcomings are legion. Donor-driven projects are not derived from aid recipients' development priorities and are an expression of an attitude by donors that "they know better', "they lecture and recipients listen", "they give and poor countries receive", "they know and recipient countries learn", "they take care of things, because poor countries cannot."
Topic:
Civil Society, Corruption, Development, Reform, and Institutions
Political Geography:
Africa

3188. Good and Bad News on Global Development

Author:
Dani Rodrik
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
Istart with some good news, because there is, I think, a lot of good news in the world of development. Then I want to present what I think is essentially a paradox. The paradox, to put it very crudely, is that while economic development is working, development policy is not. Let me start with the good news. If you look at the total number of people who live on below $1 a day and look at the trend, between 1981 and 2001, what you see is basically that there are now roughly 400 million fewer people who live below the $1-a-day line. So there actually has been not just a relative reduction in the number of the absolute poor; there has actually been an absolute reduction in the number of the absolute poor. This is in a period when, of course, the population of the developing world has increased quite significantly. In terms of the somewhat higher poverty line, which is the $2-a-day line, the number of poor people below that threshold has actually increased somewhat, but it is still the case that relative to the population of the developing world, it has come down. That is basically good news. In this period, there has been, in fact, significant poverty reduction around the world. But if you look at where that has come from, it is also the case that much of it has actu- ally been localized. China alone accounts for the full 400 million-person reduction in absolute poverty when measured by the $1-a-day line. If you take China out, basically, in the rest of the world, some countries have had an increased number of poor people, others have had a decline.
Topic:
Development, Poverty, Inequality, and Population Growth
Political Geography:
Global Focus

3189. Blind spot: The continued failure of the World Bank and IMF to fully assess the impact of their advice on poor people

Publication Date:
09-2007
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
It seems impossible that the World Bank and International Monetary Fund (IMF) would give advice to developing countries without fully considering how it might affect the lives of poor people. Yet, despite it being a long-stated policy of both institutions to do so, and some recent progress on the part of the IMF, they are still failing to consistently ensure that there is a proper assessment of the likely consequences of different policy actions on the poorest people.
Topic:
Development, International Cooperation, International Organization, and World Bank

3190. What agenda now for agriculture? A response to the World Development Report 2008

Publication Date:
10-2007
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
After two decades of indefensible neglect, agriculture is back on the agenda. The World Bank's publication of the 'World Development Report 2008: Agriculture For Development' (hereafter WDR), the first WD R on agriculture since 1982, reflects this renewed interest in the sector's potential to reduce rural poverty and inequality.
Topic:
Agriculture, Development, and World Bank