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361. 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

362. Welcome Home in a Crisis: Effects of Return Migration on the Non-migrants' Wages and Employment

Author:
Ricardo Hausmann and Ljubica Nedelkoska
Publication Date:
01-2017
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Over the past few decades, migration from developing to developed countries was often viewed as 'brain drain', as talented workers were forced out of their home countries due to lack of competitive opportunities. The population that left these countries and settled in the more economically advanced parts of the world have, over time, acquired financial capital and built social networks within host countries. Hence, while the home countries were still suffering from the scarcity of knowhow, significant shares of their populations began to actively engage in more productive economies. It seems that, through migration, developing countries had unexpectedly created significant networks of human and financial capital abroad. But are these foreign networks transferring knowhow back to their home countries? It turns out that those same reasons that induced the economic migration in the first place, often make it difficult for migrants to engage afterwards. What would happen, however, if a large proportion of these diasporas was forced to return back to their home country - would that lead to knowhow transfer? Our study investigates the impact of such an abrupt return migration wave between Greece and Albania.
Topic:
Development, Migration, Labor Issues, Developing World, and Economy
Political Geography:
Europe, Eastern Europe, Greece, and Albania

363. Water as a basic human right within the Israeli-Palestinian con ict

Author:
Erika Weinthal
Publication Date:
10-2017
Content Type:
Journal Article
Journal:
American Diplomacy
Institution:
American Diplomacy
Abstract:
In the Middle East, water often crosses political borders; because water is a shared resource, its effective management demands cooperation among different users. In the absence of cooperation, conflict is likely. Indeed, conflict and cooperation over shared water has defined Israeli-Palestinian relations since 1967 when Israel gained full control over the Eastern and recharge zone of the western Mountain aquifer, as well as the southern Coastal aquifer. These resources, combined with water from the Sea of Galilee have provided about 60% of Israel’s water consumption. With the occupation of the West Bank and Gaza Strip in 1967, Israel placed restrictions on the drilling of new wells for the Palestinian population in the West Bank, and instead chose to supply water to Palestinian households through its national water company, Mekorot. The signing of the 1993 Declaration of Principles on Interim Self-Government Arrangements (Oslo I) and the 1995 Interim Agreement on the West Bank and Gaza Strip (Oslo II) between Israel and the Palestinian Liberation Organization offered an historic opportunity to move from conflict to cooperation over shared water resources. Unlike many other peace agreements, water was codified in the Oslo Accords, as it was understood that water sharing was of critical importance for human security, economic development, and regional cooperation. Specifically, the Oslo Accords called for the creation of a Joint Water Committee (JWC) during an interim period before the final status negotiations, comprised of equal number of members from Israel and the Palestinian Authority, whose functions would include the coordinated management of water resources and water and sewage systems in the West Bank. Oslo II, Article 40 on water and sewage recognized Palestinian water rights in the West Bank and the need to develop additional water supply. Oslo II also detailed specific water quantities to be allocated to the Palestinian population, mostly from the eastern Mountain aquifer in the West Bank.
Topic:
Development, Human Rights, Natural Resources, Water, Conflict, Negotiation, and Sanitation
Political Geography:
Middle East, Israel, Palestine, and West Bank

364. Africa and the Politics of Possibility

Author:
Louis S. Segesvary
Publication Date:
12-2017
Content Type:
Journal Article
Journal:
American Diplomacy
Abstract:
According to the IMF, the 2016 GDP per capita estimate for Eritrea was only $771 per annum; for Ethiopia $739; for Gambia $435; and for Nigeria, sub-Saharan Africa's most populous country with major petroleum reserves, it was $2,930, or around $244 a month. According to a comprehensive report prepared by the African Development Bank Group, the number of impoverished people in sub-Saharan Africa had doubled from 1981 to 1998, with the number of people living on less than US $1 per day in the region, "reaching 290 million in 1998, which is over 46% of the total population." According to the Food and Agricultural Organization of the United Nations, in 2014/2015 some 153 million individuals in sub-Saharan Africa, about 26 percent of the population or one out of four individuals above 15 years of age, was "hungry but did not eat or went without eating for a whole day because there was not enough money or other resources for food." [...]a case can be made that all this aid has contributed to fostering a culture of dependency in which foreign aid grants become a form of entitlements that governments rely on to maintain a status quo, as opposed to attracting the type of private sector investments that grow economies.
Topic:
Development, Migration, Poverty, and Foreign Aid
Political Geography:
Africa and Europe

365. An economic review of the collaborative economy

Author:
Georgios Petropoulos
Publication Date:
02-2017
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
This Policy Contribution tackles the definition and benefits of collaborative economy, as well as the distinction between professional and non-professional services, recommendations on safety and transparency for users, and the way to approach regulatory concerns.
Topic:
Development and Economics
Political Geography:
Global Focus

366. Do Age-of-Marriage Laws Work? Evidence from a Large Sample of Developing Countries

Author:
Matt Collin and Theodore Talbot
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Child marriage is associated with bad outcomes for women and girls. Although many countries have raised the legal age of marriage to deter this practice, the incidence of early marriage remains stubbornly high. We develop a simple model to explain how enforcing minimum age-of-marriage laws creates differences in the share of women getting married at the legal cut-off. We formally test for these discontinuities using multiple rounds of the Demographic and Health Surveys (DHS) in over 60 countries by applying statistical tests derived from the regression discontinuity literature. By this measure, most countries are not enforcing the laws on their books and enforcement is not getting better over time. Separately, we demonstrate that various measures of age-of-marriage discontinuities are systematically related to with existing, widely-accepted measures of rule-of-law and government effectiveness. A key contribution is therefore a simple, tractable way to monitor legal enforcement using survey data. We conclude by arguing that better laws must be accompanied by better enforcement and monitoring in to delay marriage and protect the rights of women and girls.
Topic:
Development and Gender Issues
Political Geography:
Global Focus

367. Building Capacity in Science, Technology, and Innovation for Africa’s Transformation: The Role of Private Sector

Publication Date:
09-2017
Content Type:
Policy Brief
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
The call to industrialize and modernize Africa has become popular in recent years, and the African Union’s Agenda 2063 and the Common African Position on Agenda 2030 identify science, technology and innovation (STI)1 as key enablers. Many African countries fail to achieve their development targets partly as a result of underdeveloped and underused science and technology as well as limited invention and innovation by both the private and the public sectors. For most African countries, the major proportion of domestic contribution to research and development (R&D) activities is provided by the government, with little from the private sector. The Africa Capacity Report 2017 (ACR 2017) found that underdevelopment in Africa is closely linked to the limited capacity to deploy STI for inclusive sustainable development and transformation. The Report helps policymakers draw conclusions critical to STI issues, and derives policy recommendations that strengthen the policy formulation, implementation, and impact of STI.
Topic:
Development, Government, Political Economy, Science and Technology, Capacity, Innovation, Private Sector, Modernization, and Industry
Political Geography:
Africa

368. Building Capacity in Science, Technology, and Innovation for Africa’s Transformation: The Role of Governments

Publication Date:
05-2017
Content Type:
Policy Brief
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
The call to industrialize and modernize Africa has become popular in recent years, and the AU’s Agenda 2063 and the Common African Position on Agenda 2030 identify science, technology, and innovation (STI) as key enablers to achieve development blueprints. In response, Africa adopted a 10-year Science, Technology, and Innovation Strategy (STISA– 2024). The ACBF’s STI Survey (2016) confirms the importance of STI strategies and capacity development. This policy brief highlights the role of African governments in building STI capacity and the key capacity messages pertinent to STI. African governments are responsible for building STI capacity through the policies and processes that guide investment decisions in STI, innovation capacity, and STI products and services.
Topic:
Development, Government, Political Economy, Public Sector, and Capacity
Political Geography:
Africa

369. 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

370. The Significance of Erdoğan's Visit to East Africa

Author:
Michael Asiedu
Publication Date:
02-2017
Content Type:
Policy Brief
Institution:
Global Political Trends Center
Abstract:
On the 22nd of January, Turkish President Recep Tayyip Erdoğan embarked on another tour of three East African countries, Tanzania, Mozambique and Madagascar. These visits bring his total trips to 10 in Sub Saharan Africa, the most by any Turkish president. Earlier in 2016, he visited Ghana, Guinea, Cote d’ivoire, Nigeria, Kenya, Uganda and Somalia. These trips to a much larger extent signify the increasing policy attention Turkey is giving Africa.
Topic:
Development, Diplomacy, Bilateral Relations, Geopolitics, and Trade
Political Geography:
Africa, Turkey, Middle East, Mozambique, Tanzania, Madagascar, and East Africa