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11. The Commitment to Development Index 2021

Author:
Ian Mitchell, Lee Robinson, Beata Cichocka, and Euan Ritchie
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
The Commitment to Development Index (CDI) ranks 40 of the world’s most powerful countries on policies that affect more than five billion people living in poorer nations. Because development is about more than foreign aid, the CDI covers eight distinct policy areas: Development Finance Investment Migration Trade Health Environment Security Technology
Topic:
Security, Development, Environment, Health, Migration, Science and Technology, Finance, Investment, and Trade
Political Geography:
Global Focus

12. Operationalizing Climate Adaptation at the US International Development Finance Corporation: The Case for an Agriculture-Led Agenda in Low-Income Countries

Author:
Clemence Landers, Jocilyn Estes, and Scott Morris
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
The US International Development Finance Corporation (DFC) could be well placed to lead among development finance institutions (DFIs) on agriculture adaptation to climate change. With its mandate to support private investment in developing country markets, overcoming barriers to investment in agricultural adaptation—where agricultural growth is an estimated two to four times more effective at reducing poverty than growth originating from other sectors—is exactly the type of activity DFC is intended to pursue. Yet, DFC is paradoxically prone to the same investment incentives and disincentives as private investors with an investment portfolio that tends to favor lower risk, higher deal size (and lower overhead) transactions. So, while global estimates for adaptation investments financing needs total close to $140-$300 billion by 2030, a fraction of the global mitigation needs measured in the trillions of dollars, the barriers to project level investment in agriculture adaptation and resilience raises the risk that DFC will continue to favor larger and lower risk mitigation investments in more established markets. This paper reviews DFC’s agriculture portfolio, and based on this review, proposes elements of an agriculture strategy that can overcome barriers to adaptation and resilience investments in the most climate vulnerable markets.
Topic:
Agriculture, Climate Change, Environment, and Finance
Political Geography:
Global Focus

13. How Do Development Agencies Support Climate Action?

Author:
Rachael Calleja
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
This paper explores how development agencies are integrating climate action into development portfolios in response to calls to scale-up climate engagements in alignment with both the Sustainable Development Goals and the Paris Agreement. Using data compiled on all 30 members of the Organisation for Economic Co-operation and Development’s Development Assistance Committee (OECD-DAC), this paper maps and analyzes trends in both the scale and usage of official development assistance allocated to support climate activities and the tools and approaches used to integrate climate across development activities. This paper shows that while climate has become a key priority for development agencies, there remains scope for deepening integration by improving monitoring and reporting of climate and development results, integrating climate considerations across the life cycle of projects, and searching for complementarities across agencies.
Topic:
Climate Change, Development, Environment, and Green Transition
Political Geography:
Global Focus

14. Creating Opportunities for Rohingya Refugees and Hosts Through Forest Landscape Restoration

Author:
Heather Tallis, Cindy Huang, John Herbohn, Karen Holl, Sharif A. Mukul, and Kam Morshed
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
Rohingya refugees began arriving in Bangladesh in August 2017, fleeing atrocities deemed serious crimes under international law by United Nations investigators. Over 740,000 new refugees have settled in two camps in Cox’s Bazar district of Chittagong: Kutupalong-Bulukhali and Naypara-Leda. The number of Rohingya in Cox’s Bazar now stands at around one million, comprising about 30 percent of the population. Kutupalong-Bulukhali is now the largest refugee camp in the world. The influx of Rohingya into Cox’s Bazar has exacerbated deforestation, underdevelopment, and climate vulnerability. Combined, these factors create an urgent need for new strategies and resources to address the increasing stress placed on the environment, and the consequences of this stress for refugee and host communities.
Topic:
Environment, Genocide, Refugees, Humanitarian Crisis, and Forest
Political Geography:
Myanmar

15. Fuel Subsidy Reform and Green Taxes: Can Digital Technologies Improve State Capacity and Effectiveness?

Author:
Alan Gelb and Anit Mukherjee
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
Reforming inefficient and inequitable energy subsidies continues to be an important priority for policymakers as does instituting “green taxes” to reduce carbon emissions. Simply increasing energy prices will have adverse impact on poorer consumers, who may spend substantial budget shares on energy and energy-intensive products even though the rich typically appropriate more of the price subsidy. Equitable pricing reforms therefore need to be accompanied by programs to transfer compensation: depending on the situation, this can be targeted or universal. Successful reforms require measures to raise awareness-of the subsidies and the problems they cause, effective dissemination of the reform to the population, and rapid feedback loops to facilitate mid-course corrections. Digital technology, including for unique identification and payments, as well as general communications, can help build government capacity to undertake such reforms and respond to changes in fuel markets. The paper outlines the use of digital technology, drawing on four country cases. The technology is only a mechanism; it does not, in itself, create the political drive and constituency to push reform forward. However, it can be employed in a number of ways to increase the prospects for successful and sustainable reform.
Topic:
Climate Change, Energy Policy, Environment, Science and Technology, Reform, and Digitalization
Political Geography:
Africa, Middle East, India, and Latin America

16. Are the Pacific Islands Insurable? Challenges and Opportunities for Disaster Risk Finance

Author:
Vijaya Ramachandran and Junaid Sadiq Masood
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
There are several efforts underway in the Pacific Islands to insure public and private assets against natural disasters such as cyclones and earthquakes. These efforts are designed to mitigate the annual costs of such disasters which range from a few percent to over 50 percent of GDP. However, insurance is not a substitute for aid. Most islands are heavily aid dependent and cannot afford to pay the high premiums associated with disaster risk insurance. Insurance to cover disaster risk likely needs to be subsidized to offset costs and to build trust. Governments and donors must also manage basis risk which can be substantial. Over time, investments in resilient infrastructure, coupled with a more comprehensive approach to risk management, may reduce costs and shift premiums to recipients. Finally, current and proposed schemes which provide insurance cover or other products must provide information in a transparent manner on effective demand along with costs, benefits and administrative fees. A clearly defined exit strategy is necessary if funds are not disbursed in a timely manner.
Topic:
Disaster Relief, Environment, Natural Disasters, and Insurance
Political Geography:
Pacific Ocean

17. Ecological Fiscal Transfers and Subnational Budgets: Did Forest-Based Fiscal Devolution Lead Indian States to Increase Forestry Expenditure?

Author:
Jonah Busch, Avani Kapur, and Anit Mukherjee
Publication Date:
10-2019
Content Type:
Research Paper
Institution:
Center for Global Development (CGD)
Abstract:
Later this year, India’s 15th Finance Commission will review the formula used by its predecessor to determine how much central tax revenue will be devolved to each state for fiscal years 2020-21 through 2024-25. Currently, 7.5 percent of the fiscal devolution (an estimated $6.9-12 billion per year) is allocated in proportion to their forest area circa 2013. These “ecological fiscal transfers” (EFTs) provide Indian states with the incentive to increase their forestry budgets as an investment in increased future shares of central taxes. In this paper, we look at whether states are yet taking advantage of this opportunity. We find that states increased their forestry budgets by 19 percent in three years after the introduction of EFTs relative to three years prior. However, this increase is considerably less than the 42 percent overall budget increase over the same time period. We surmise that states are not yet certain that EFTs will continue in such a way that increases in forest cover will be rewarded with increases in revenue. We recommend that the 15th Finance Commission resolve this uncertainty for states by (i) keeping forests in the devolution formula, and (ii) updating the reference year (e.g. 2019). By doing so India’s EFTs can fulfill their potential as an innovative mechanism for incentivizing states to protect and restore forests, thereby mitigating climate change.
Topic:
Environment, Governance, Fiscal Policy, Ecology, and Forest
Political Geography:
India and Asia

18. More Than a Lightbulb: Five Recommendations to Make Modern Energy Access Meaningful for People and Prosperity

Author:
Todd Moss
Publication Date:
04-2016
Content Type:
Special Report
Institution:
Center for Global Development (CGD)
Abstract:
Energy is fundamental to modern life, but 1.3 billion people around the world live without “access to modern electricity.” The current definition of modern energy access—100 kilowatt-hours per person per year—is insufficient and presents an ambition gap with profound implications for human welfare and national economic growth. This report summarizes the energy access problem, the substantial efforts underway to bolster power generation and access in the poorest regions, and highlights concerns about the specific indicators being used to measure progress. It then condenses a set of analytical and conceptual questions the working group grappled with, such as why and how to better measure energy usage and the multiple options that should be considered. The report concludes with five recommendations for the United Nations, International Energy Agency, World Bank, national governments, major donors, and other relevant organizations.
Topic:
Climate Change, Environment, Climate Finance, and International Development
Political Geography:
Global Focus

19. The Future of Forests: Emissions from Tropical Deforestation with and without a Carbon Price, 2016–2050

Author:
Jonah Busch and Jens Engelmann
Publication Date:
08-2015
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
An area of tropical forest the size of India will be deforested in the next 35 years, burning through more than one-sixth of the remaining carbon that can be emitted if global warming is to be kept below 2 degrees Celsius (the “planetary carbon budget”), but many of these emissions could be cheaply avoided by putting a price on carbon.
Topic:
Climate Change, Environment, and Natural Resources

20. Rethinking the Financial Design of the World Bank

Author:
Devesh Kapur and Arjun Raychaudhuri
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
Since their inception, through 2012, the institutions comprising the World Bank group have been involved in lending nearly a trillion dollars. In this paper, we focus on the IBRD, which is the core of the World Bank. The IBRD has the potential to continue to grow and be an important player in official financial flows, supporting critical long-term development projects with large social returns, in sectors ranging from infrastructure, social sectors, or environment.
Topic:
Development, Economics, Environment, Foreign Aid, Infrastructure, and World Bank
Political Geography:
Europe