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141. Sweatshops and Third World Living Standards: Are the Jobs Worth the Sweat?

Author:
David Skarbek and Benjamin Powell
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
Many studies have shown that multinational firms pay more than domestic firms in Third World countries. Economists critical of sweatshops have responded that multinational firms' wage data do not address whether sweatshop jobs are above average because many of these jobs are with domestic subcontractors. In this paper we compare apparel industry wages and the wages of individual firms accused of being sweatshops to measures of the standard of living in Third World economies. We find that most sweatshop jobs provide an above average standard of living for their workers.
Topic:
Economics, Human Welfare, Industrial Policy, and Third World

142. The EU's CAP, the Doha Round and Developing Countries

Author:
Michael Nelson and Michael Halderman
Publication Date:
10-2004
Content Type:
Working Paper
Institution:
Institute of European Studies
Abstract:
This study analyzes the political economy of European Union policy-making in regard to EU trade in beef and dairy with developing countries. The way the EU makes its agriculture and trade policies involves three levels: the EU member state, the EU itself, and the international trading system. The study also considers a fourth “level,” developing countries, that is affected by EU policy-making. We present criticism from various sources concerning negative international effects of EU agriculture and trade policies. Recognizing the great range of trade-related interests among developing countries, the study analyzes relevant issues of four categories of such countries. EU trade and agriculture policy is strongly influenced by international factors, particularly by multilateral trade negotiations. Change in relevant EU agriculture and trade policy affecting developing countries has been part of or directly linked to - and in the future will require additional reform of - the EU's Common Agricultural Policy (CAP). Recent reform of the CAP has been affected by and linked to the current Doha Round of multilateral trade negotiations conducted under the auspices of the WTO.
Topic:
International Relations and Third World
Political Geography:
Europe

143. The Rise or Fall of World Inequality: A Spurious Controversy?

Author:
Bart Capéau and André Decoster
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In the age of globalization, the question whether inequality in the world rose or fell down, is a hot topic. Leading scholars in the field of economic inequality measurement developed methods to estimate empirically the distribution of welfare (income) amongst world citizens. Despite their similar methodologies, they do not seem to agree about the conclusion. In the present paper we pinpoint what drives the two extreme positions apart. Sala-i-Martin (2002a, b), who claims that there can be no doubt that world inequality went down between the late 1970s and the late 1990s, has in fact calculated population weighted inequality between countries. Milanovic (2002a, b, c) does not deny this, but illustrates the empirical importance of divergent tendencies at the sub-national level (especially urban versus rural regions) for assessing true world inequality and comes to the reverse conclusion. Nevertheless, there seems to be unanimity, especially amongst the contributions quoted here, about the inequality measure(s) to be used for assessing world income distributions. We show that at least for international inequality, there is empirical evidence for rank reversals among the class of generalized entropy measures and expect the same to be true of world inequality. However, the normative debate about which inequality measure to use for assessing true world inequality has not yet begun.
Topic:
Development, Poverty, and Third World

144. Conflicting Motivations: The Private Sector and International Conflict

Author:
Luke A. Patey
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Since the end of the Cold War, the world has been witness to a drastic increase in the number and magnitude of inter- and intra-state wars. These conflicts have predominately taken place within developing and underdeveloped countries and have led to substantial human, economic, and political costs at both local and international levels. The United Nations, along with international financial institutions and the global civil society, has recognized the need for curbing the violence and preventing further outbreaks. However, the political breadth and financial capacities of these organizations cannot ensure sufficient socio-economic recovery through peace-building operations alone. A more progressive approach is required. Responsible and committed engagement from private sector actors can provide a thrust towards reducing poverty in war-torn societies. Over the long term, the private sector in conjunction with international and non-governmental organizations can accelerate the process of postconflict reconstruction and encourage lasting peace through economic prosperity.
Topic:
Economics, Politics, Third World, and United Nations

145. Refugees, Security and Development: Current Experience and Strategies of Protection and Assistance in 'The Region of Origin'

Author:
Finn Steppulat
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
On the background of the recently increased political interest in protecting and assisting refugees in their 'regions of origin' this working paper lays out a conceptual framework for analyzing the strategies, conditions and options for support to refugees areas in neighboring countries to countries in conflict. In particular relations between security–or the 'securitization of refugees'–and development and local integration are discussed. The working paper identifies the confinement and lack of freedom of movement of refugees as the major obstacle to local, or rather regional, integration of refugees. Finally, the working paper makes recommendations for action and research in relation to the strategy of protecting and assisting refugees close to the countries they have left.
Topic:
Development, Human Welfare, Migration, and Third World
Political Geography:
United States

146. The New Approach to Foreign Aid: Is the Enthusiasm Warranted?

Author:
Ian Vásquez
Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The failure of past foreign aid programs has given rise to a new consensus on how to make foreign aid effective. According to the new approach, aid that goes into poor countries that have good policies and institutions is highly effective at promoting growth and reducing poverty. Disbursing aid to countries that have good policies contrasts with the traditional practice of providing aid to countries irrespective of the quality of their policies or providing aid to promote policy reforms. President George Bush's proposed foreign aid initiative, the Millennium Challenge Account, is based on the selective approach to foreign assistance, as are, in large part, the World Bank's calls to double foreign aid flows worldwide.
Topic:
Debt, Economics, International Political Economy, International Trade and Finance, and Third World

147. SARS: Down But Still a Threat

Publication Date:
08-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This Intelligence Community Assessment (ICA) was requested by Secretary of Health and Human Services Tommy Thompson and Ambassador Jack Chow, Deputy Assistant Secretary of State for International Health Affairs. It highlights the evolution of Severe Acute Respiratory Syndrome (SARS) and the potential implications of the disease for the United States under several scenarios; this paper does not attempt to provide a scientific assessment of the epidemiology of SARS. Even though SARS has infected and killed far fewer people than other common infectious diseases such as influenza, malaria, tuberculosis, and HIV/AIDS, it has had a disproportionately large economic and political impact because it spread in areas with broad international commercial links and received intense media attention as a mysterious new illness that seemed able to go anywhere and hit anyone.
Topic:
International Relations, Human Welfare, Poverty, and Third World
Political Geography:
United States

148. Policies that increase vulnerability to corruption

Author:
Dwight Ink
Publication Date:
12-2003
Content Type:
Working Paper
Institution:
The National Academy of Public Administration
Abstract:
My comments on donor policies that increase vulnerability to corruption grow out of experience of directing the Agency for International Development programs in the Western Hemisphere, as well as assessing USAID missions in Africa, the Near East, and Asia. Following this work, I headed a non-profit organization, the Institute of Public Administration, which has been heavily involved in the transition of countries in Europe and Asia from dictatorships to market economies and democratic societies. I should point out, however, that my background is in management, not banking or economics.
Topic:
Development, Non-Governmental Organization, Poverty, and Third World
Political Geography:
Africa, Europe, and Asia

149. An Assessment of the Imapct of Microfinance Services in Uganda

Author:
Carolyn Barnes and Gayle Morris
Publication Date:
12-2003
Content Type:
Working Paper
Institution:
The National Academy of Public Administration
Abstract:
Using three microfinance institutions (FINCA , FOCCAS, PRIDE) in Uganda, this paper focuses on the impact of microfiance program participation and profiles the clients who participate in these programs. The research covers clients and a non-client comparison group in rural Mbale district, the capital city of Kampala, and Masaka town and its periphery. The two-staged survey was conducted in late 1997 and repeated during the same months in 1999. The assessment conclude s that microfinance program participation has the following positive characteristics on client microenterprises: addition of new products and services, improved or expanded enterprise sites and markets, reduced costs of inventory purchases, and increases in sales volume. Household-level impacts include: began new enterprise, increased amount spent on durable assets and agricultural inputs, increased amount of cultivated agricultural land, and increased amount of household income from crops. The findings also suggest that microfinance programs help client households reduce their financial vulnerability through diversification of income sources and accumulation of assets.
Topic:
Development, Emerging Markets, and Third World
Political Geography:
Uganda, Kampala, and Masaka

150. Food Aid and Informal Insurance

Author:
Stefan Dercon and Pramila Krishnan
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Households in developing countries use a variety of informal mechanisms to cope with risk, including mutual support and risk-sharing. These mechanisms cannot avoid that they remain vulnerable to shocks. Public programs in the form of food aid distribution and food-for-work programs are meant to protect vulnerable households from consumption and nutrition downturns by providing a safety net. In this paper we look into the extent to which food aid helps to smooth consumption by reducing the impact of negative shocks, taking into account informal risk-sharing arrangements. Using panel data from Ethiopia, we find that despite relatively poor targeting of the food aid, the programs contribute to better consumption outcomes, largely via intra-village risk sharing.
Topic:
Development, Non-Governmental Organization, Poverty, and Third World
Political Geography:
Africa and Ethiopia