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21. Some Unpleasant ODA Arithmetic

Author:
Ranil Dissanayake and Atousa Tahmasebi
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
Official development assistance is supposed to be designed to prioritise the economic development and welfare of developing countries. The OECD’s Development Assistance Committee is a club of wealthy donor countries which collaborate to set rules and norms to this effect. However, digging into the official data submitted by donors to the OECD reveals some unpleasant truths. We use data on every funding line reported by donors to the OECD between 2006 and 2019 to investigate the pattern and distribution of commitments and disbursements of ODA to developing countries, and discover that ODA is targeted poorly within the group of eligible developing countries; that this group of eligible countries is gradually expanding to include more relatively wealthy places; that aggregate ODA flows are organized and structured sub-optimally; and that ODA responds more to arbitrary income classifications than it should. We suggest informational and incentive reforms in response. These findings also suggest limits to what realistic reform of ODA can achieve, and, consequently, the importance of non-aid development policy for outcomes in developing countries.
Topic:
Development, International Cooperation, Foreign Aid, and Welfare
Political Geography:
Global Focus

22. "Diversifying" Social Investment: European Welfare States and Immigrant Integration in the Wake of the COVID-19 Crisis

Author:
Anton Hemerijck and Liam Patuzzi
Publication Date:
09-2021
Content Type:
Special Report
Institution:
Migration Policy Institute (MPI)
Abstract:
Across Europe, the COVID-19 pandemic has strengthened awareness of the importance of robust, well-functioning welfare states in helping individuals, families, and communities weather threats to their lives and livelihoods. Initial EU and Member State responses to the pandemic and its economic fallout were much more vigorous than responses to other recent economic shocks, such as the Great Recession and the European debt crisis. Even so, European societies will likely have to contend with long-term social and economic impacts, which in many cases are exacerbating existing inequalities. The shift in the structure and goals of welfare spending since the start of the pandemic can be understood through the prism of “social investment.” In recent decades, European welfare states have moved away from a predominantly reactive focus on financial safety nets that protect individuals during periods of unemployment and illness, and toward investing in people’s human capital and employability to help them navigate life transitions and drive growth in advanced knowledge economies. Looking ahead, the success of social-investment policies will depend on their ability to account for immigration and diversity, increasingly prominent features of European societies that are central to understanding the nature and development of socioeconomic inequalities. This report explores whether the social-investment approach to welfare states could serve as a tool for post-pandemic recovery—particularly in diverse, immigrant-receiving societies. It examines how European welfare systems fared and adapted during the Great Recession, how social investment seeks to balance social and economic goals, and how lessons from recent immigrant integration policy developments could help improve the reach, accessibility, and relevance of social-investment initiatives.
Topic:
Education, Health, Children, Employment, Family, Welfare, Integration, COVID-19, and Workforce
Political Geography:
Europe

23. Fiscal Policy as Credit Policy: Reassessing the Fiscal Spending vs. Private Debt Trade-Off

Author:
Etienne Lepers
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
City Political Economy Research Centre (CITYPERC), University of London
Abstract:
This paper revisits the dominant narrative that explains the substantial household credit boom as a substitute to fiscal redistribution, i.e. the “substitution” hypothesis, according to which fiscally-constrained governments substituted public safety nets by private credit. I argue instead that the credit and welfare state constituencies may not necessarily be the same and that far from fiscally constrained, governments have been actively using “fiscal policy as credit policy”. I provide two sets of empirical evidence for such account: First, I find a positive within-country relationship between household debt and fiscal spending. Second, compiling a unique dataset of 550 fiscal subsidies adjustments in 50 countries since 1980, I show that fiscal and tax subsidies have been instrumental in driving household credit. These dynamics have distributional and financial stability implications as such tax subsidies typically favour higher income households and household debt booms have proven more dangerous than corporate ones.
Topic:
Debt, Financial Crisis, Welfare, Financialisation, Subsidies, Household, and Public Finance
Political Geography:
Global Focus

24. Social Policy Programme “The Family 500+” – Assumptions, Results, and Costs of Functioning: Is It Worth?

Author:
Anna Owczarcyk
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
The unfavorable demographic situation and the falling number of births resulted in an increased interest among Polish politicians in introducing tools to social policy that would reverse this negative trend. Implemented to social policy by Prawo i Sprawiedliwość Party in 2016, the “Family 500+” benefit has become such a tool. According to the government’s intention, this financial aid for families with children aims to reverse the decline in the number of births observed for many years and reduce the scale of poverty among families with the most complex financial situation. After several years of the “Family 500+” Program in force, it is difficult to clearly define whether the goals were achieved and whether the expenses for financing the program were adequate to the results. The aim of the article is an attempt at the assessment of the functioning of the Family 500+ Programme. Both the statutory assumptions of the programme, the costs of its functioning, and its results so far were analyzed. The central part of the analysis covered the period 2016–2019.
Topic:
Poverty, Children, Social Policy, and Welfare
Political Geography:
Europe and Poland

25. Ayushman Bharat

Author:
Ritwik Shukla and Avani Kapur
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
Centre for Policy Research, India
Abstract:
Ayushman Bharat, under the aegis of the Ministry of Health and Family Welfare (MoHFW), was launched by Government of India (GoI) on 23 September 2018. The programme consists of two initiatives: (1) The Pradhan Mantri Jan Arogya Yojana (PMJAY); and (2) The establishment of 1.5 lakh Health and Wellness Centres (HWCs). Against the backdrop of the COVID-19 pandemic, this brief uses government data to analyse: Past trends in GoI allocations, releases, and expenditures; Eligibility and claims under PMJAY till September 2020; and Number of operational HWCs, staff in-position, and footfall.
Topic:
Health, Budget, Welfare, COVID-19, and Allocations
Political Geography:
South Asia and India

26. El problema del coste de la defensa

Author:
Carlos Marti Sempere
Publication Date:
11-2021
Content Type:
Journal Article
Journal:
Journal on International Security Studies (RESI)
Institution:
International Security Studies Group (GESI) at the University of Granada
Abstract:
Este artículo aborda la cuestión del coste asociado ala defensa, es decir, de los recursos que la sociedad debe dedicar a proporcionar seguridad a sus miembros. En él se examina los métodos y formas de establecer y distribuir estos recursos para obtener un conjunto apropiado de capacidades militares que soporten la percepción de seguridad del ciudadano, resolviendo así el problema de la defensa y aumentando así el bienestar económico y social. Se trata de una cuestión antigua que hasido objeto de una preocupación constante del ser humano.La novedad más importante de este artículo es examina resta cuestión desde la perspectiva de la racionalidad limitada del ser humano, dela información imperfecta de la que dispone, de la existencia de preferencias sin una clara racionalidad económica y de instituciones y normas deeficacia limitada. Todo ello conducea asignaciones de recursos para la defensa que pueden encontrarse lejos delos valores que ofrecen un bienestar general mayor.
Topic:
Defense Policy, Economics, Markets, Welfare, and Efficiency
Political Geography:
Global Focus

27. An Uneven Welcome: Latin American and Caribbean Responses to Venezuelan and Nicaraguan Migration

Author:
Andrew Selee and Jessica Bolter
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Migration Policy Institute (MPI)
Abstract:
The sudden mass movement of people fleeing political and economic crises in Venezuela and political unrest in Nicaragua has transformed the migration landscape in Latin America and the Caribbean. Approximately 4.8 million Venezuelans had emigrated by December 2019, the vast majority remaining in the region, and as many as 100,000 Nicaraguans have moved to neighboring Costa Rica since early 2018. This report examines how 11 countries—Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guyana, Mexico, Peru, Trinidad and Tobago, and Uruguay—are responding to the mass outflows. Drawing on extensive fieldwork and interviews with government officials and representatives of nongovernmental organizations, migrant-led groups, and international actors, the study analyzes efforts to provide newcomers with legal status and to integrate them into schools, health-care systems, and local labor markets—measures that are important for both migrants and the communities in which they are settling. Overall, receiving countries have shown openness and even creativity, providing legal status to many and access to basic education and emergency health care to most. But as the exodus continues and it becomes clear that large numbers of Venezuelans are likely to remain in their host countries in the mid- to long term, the initially warm welcome has begun to cool in places. Capacity constraints in many education and health-care systems, which existed prior to the arrival of large numbers of newcomers, have also become more acute. Looking ahead, the report sets out a range of recommendations for both receiving countries and the international community. Among them: balancing security and flexibility in entry requirements; strengthening asylum systems and other, more nimble legal pathways; and streamlining credential recognition so migrants’ skills can benefit local communities and economies.
Topic:
Education, Health, Immigration, Employment, Economy, Welfare, and Skills
Political Geography:
Latin America, Nicaragua, Caribbean, and Venezuela

28. Hezbollah Has Created Parallel Financial and Welfare Systems to Manage the Current Crisis

Author:
Hanin Ghadder
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
To contain corrupt actors and facilitate reform, the international community must provide alternatives to Hezbollah pharmaceutical and food programs while filling gaps that the group is unable to address. Despite Lebanon’s deteriorating financial and economic situation, the country’s political elite have made clear that they will not implement reforms laid out by the international community as prerequisites for a bailout. In their view, the changes specified by the IMF, the World Bank, and the French-sponsored aid framework CEDRE would mean the eventual collapse of their political class, whose corruption and illegal business dealings are protected and encouraged by Hezbollah. Indeed, the emergence of a more independent secular political class that reflects the October 2019 protests is a serious concern for the militia and its allies in government, so they have chosen to manage the crisis rather than resolve it. Thus far, Hezbollah’s crisis-management efforts have far surpassed those of every other political party, civil society organization, and foreign assistance channel. The group’s military structure, organizational expertise, and access to alternative sources are enabling it to pursue temporary strategies for surviving the current crisis, while also retaining independence from state institutions, preserving a measure of support from its core Shia community, and discouraging Shia from joining any further rounds of public unrest. In the longer term, Hezbollah seems to be hoping that a transformative regional development—perhaps a new U.S.-Iranian nuclear agreement or a favorable U.S.-European partnership on Lebanon—will allow it to resolve its own financial crisis and regain access to hard currency, either from the Iranian regime or through international assistance mechanisms. Yet even if Hezbollah seems fairly well-positioned to weather the storm, the Lebanese people—including the group’s support base—are not. According to a new World Bank report, half the population is living below the poverty line, and more will soon join them if the Central Bank stops subsidizing medicine, fuel, wheat, and other essentials two months from now as projected.
Topic:
Non State Actors, Finance, Economy, Crisis Management, Hezbollah, Welfare, and Militias
Political Geography:
Middle East and Lebanon

29. The Role of Values for Social Cohesion: Theoretical Explication and Empirical Exploration

Author:
Daniel Nowack and Sophia Schoderer
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Shared values are deemed necessary as a solid foundation for social cohesion by commentators and observers in many countries. However, when examining what kind of values this is based on, answers often come down to platitudes and national clichés. This discussion paper offers some clarification through both a theoretical explication and an empirical exploration concerning the general role of values for social cohesion. Values are notions about desirable, trans-situational end-states and behaviours. They fall into two categories, individual and societal values. We provide a critical discussion of the most prominent conceptualisations and their operationalisation in the social sciences. Values affect social cohesion in three possible pathways: First, when they are shared; second, when they promote behaviour per se conducive to social cohesion and third, through their effect on policy choice and institutional design. We review evidence provided by the research literature for each of these pathways. We further explore the third pathway by deriving from the research literature the conjecture that a cultural value emphasis on egalitarianism makes a universalistic scope of welfare institutions more likely, which in turn increases social and political trust. We first examine this conjecture with a series of regression models, and then run a mediation analysis. The results show that (1.) egalitarian values are moderately strongly and positively linked to universalistic welfare institutions, but that (2.) welfare institutions mediate the association of egalitarian values with social trust only to a small extent and that (3.) more universalistic welfare institutions counteract a negative association between egalitarian values and institutional trust.
Topic:
Culture, Institutions, Values, Welfare, and Social Cohesion
Political Geography:
Germany and Global Focus

30. Building a Social Security Architecture for Informal Workers in India, Finally!

Author:
Santosh Mehrotra
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Social protection and social security have very limited coverage in India. This reality has not changed since independence, one of greatest failures of the development strategy India adopted in the early fifties. The labour force is predominantly unorganized. As much as 91 per cent of the labour force are in informal employment, i.e. without any social insurance we estimated from the NSO’s Periodic Labour Force Survey (2017-18) (Mehrotra and Parida, 2019). This is barely down 2 percentage points from 93% in 2011-12 (NSO’s 68th Round). In fact, regardless of the growth rate of GDP, this high share of informality in the workforce had not changed until 2012, and when it fell recently, it did so by merely 2 points. The rest 9 per cent of the workforce has varying levels of social security in the form of provident fund, paid leave, medical insurance and other benefits.
Topic:
Labor Issues, Social Policy, Social Security, Welfare, and Informal Economy
Political Geography:
India