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161. Decentralizing Aid with Interested Parties

Author:
Ira N. Gang and Gil S. Epstein
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper analyses the decentralization of decisionmaking in aid-giving in a theoretical rent-seeking framework. In this analysis the root donor establishes a necessary criterion for potential recipients: good governance. The potential recipients compete in hierarchal contests for funds. The paper investigates whether, under certain reasonable conditions, fashionable aid procedures will lead to the development of a poverty trap.
Topic:
Development, Economics, Humanitarian Aid, and Politics

162. On the Empirics of Aid and Growth: A Fresh Look

Author:
George Mavrotas and Jan-Erik Antipin
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The paper contributes to the empirics of aid and growth by taking a fresh look at the aid-policies-growth nexus emanating from the very influential but also debatable paper on the subject by Burnside and Dollar: 'Aid, Policies and Growth'. We employ three different datasets (including the one used in the Burnside and Dollar paper) and Bayesian instrumental variable methods to test the robustness of the central finding of the Burnside and Dollar paper related to the aid and policy interaction coefficient. In doing so, we applied Bayesian instrumental variable technique s to find the most probable parameter values in the growth equation. We also test for the exogeneity of the instrumental variables used. We find that the marginal effect of the disputed (Aid/GDP) x Policy variable on real per capita GDP growth is substantially smaller than in Burnside and Dollar, thus casting serious doubts on the robustness of their findings, and most importantly, on the validity of the policy lessons emerged from the Burnside- Dollar study.
Topic:
Development, Economics, and Humanitarian Aid

163. Tax Policy Reforms in Nigeria

Author:
Ayodele Odusola
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Nigeria is governed by a federal system, hence its fiscal operations also adhere to the same principle, a fact which has serious implications on how the tax system is managed. The country's tax system is lopsided, and dominated by oil revenue. It is also characterized by unnecessarily complex, distortionary and largely inequitable taxation laws that have limited application in the informal sector that dominates the economy. The primary objective of this paper is to prepare a case study on tax policy reforms in Nigeria, with the specific objectives of examining the main tax reforms in the country; highlighting tax revenue profile and composition; analysing possible distributional impacts on the poor; discussing major problems that could prevent effective tax implementation in the country; and offering suggestions for reforms.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Africa and Nigeria

164. Taxation in Developing Countries: Case Study of Cameroon

Author:
Samuel Fambon
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In the beginning of the 1980s, Cameroon witnessed a sustained rate of growth, associated essentially with the boom in the oil sector. Increased budgetary and extra-budgetary resources generated by this sector helped to raise the investment rate in the economy, and to maintain a reasonable level of external indebtedness. But after this period of expansion, the country experienced unfavourable economic development caused by a successive decline in the terms of trade, leading to profound imbalances, notably in public finance and the external account. The government subsequently initiated a series of measures to reform its tax system and to adapt it to national economic realities. An efficient and equitable taxation encourages production and the accumulation of national wealth stimulates saving and investments and hence job creation. Such a tax system could, therefore, ensure sustainable growth and development in Cameroon.
Topic:
Development, Economics, Political Economy, and Third World

165. Millennium Development Goal 7: An Assessment of Progress With Respect to Water and Sanitation: Legacy, Synergy, Complacency or Policy?

Author:
P.B. Anand
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Access to water and sanitation (target 10) is an important ingredient of quality of life. As per WHO-UNICEF assessments, globally, 77 per cent of population had access to water in 1990. This proportion has increase d to 83 per cent in 2002, thus, on track to achieve the target of halving the proportion of population without safe access by 2015. However, there is considerable regional disparity in progress which remains significantly low in many countries in sub- Saharan Africa. Also, the question remains whether increased access is same as sustainable access. In 2002, some 2.6 billion people worldwide did not have access to safe sanitation options. Of these, nearly 2 billion were in the rural areas. While in almost all countries, the proportion of people having access to improved sanitation in 2002 has increased compared to the status in 1990, in 27 countries including India, Ne pal, Lao PDR, Namibia, Ethiopia, Eritrea, and Yemen, two out of three people did not have access to improved sanitation in 2002.
Topic:
Development, Health, and Human Welfare
Political Geography:
India, Yemen, Ethiopia, Eritrea, and Namibia

166. Foreign Direct Investment: Key Issues for Promotion Agencies

Author:
Sergey Filippov, Iornara Costa, and Mariana Zanatta
Publication Date:
10-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
The growing importance attached to attracting foreign direct investment (FDI) is evidenced by the steady rise of investment promotion agencies (IPAs) worldwide, especially from the early 1990s. Since its launch in 1995, the World Association of Investment Promotion Agencies (WAIPA) has registered a growing number of members representing cities, regions, countries and free zones from all over the world: from 112 in 2002, 161 in 2004, rising to 191 members from 149 countries in 2006. According to the United Nations Conference on Trade and Development (UNCTAD) there were around 500 IPAs in more than 160 countries in 2004.
Topic:
Foreign Policy, Development, Economics, and International Trade and Finance
Political Geography:
United Nations

167. Mobilizing Talent for Global Development

Author:
Andrs Solimano
Publication Date:
08-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
The generation of new ideas and their application for productive uses is an important engine for growth and development. This is an area in which developing countries usually lag behind developed countries and is where development gaps are more evident. Behind the generation of ideas, innovations, and new technologies there is 'human talent': an inner capacity of individuals to develop ideas and objects, some of them with a high economic value. The 'human factor' is critical to the success or failure of many endeavours. Several countries, particularly China and India, followed by Russia, Poland, and some Latin American countries, are becoming an important source of talented people with PhDs and degrees in science, engineering, and other areas that can lead to change in the international patterns of comparative advantages and reduce development gaps. Part of the new talent formed in developing countries goes to live and work to developed countries, typically the USA, UK, and other OECD nations. At the same time multinational corporations are outsourcing several of their productive and service activities, including research and development, to developing countries (China and India are main destinations) to take advantage of the (less expensive) talent being developed there. Today, therefore, we see a double movement of talent and capital around the globe: on the one hand talent from developing countries is moving north seeking better opportunities where people are equipped with more capital, technologies, and effective organizations. On the hand capital from the north pursues talent in the south; a process largely led by multinational corporations.
Topic:
Development, Economics, Human Welfare, and Migration
Political Geography:
United States, China, United Kingdom, and India

168. Fiscal Policy for Poverty Reduction, Reconstruction, and Growth

Author:
Matthew Smith, Alan Roe, and Tony Addison
Publication Date:
06-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
An effective state is able to mobilize revenue and spend it on infrastructure, services, and public goods that both enhance human capital and the well-being of communities (especially the poor), as well as stimulating investment and employment creation by the private sector. An effective state also manages public finance to ensure that macroeconomic balance is maintained—with policy neither too restrictive to discourage private investment and growth, nor too accommodative to create high inflation and crowd out private investment. Fiscal issues are therefore at the heart of the state's role in the development process and failure in this policy area—whether it is in taxation, public expenditures, or in managing the fiscal deficit and public debt—can quickly undermine growth and poverty reduction. Fiscal weakness can also be fatal to social peace when one or more ethnic, religious, or regional groups are taxed unfairly—or receives too little in the allocation of public spending.
Topic:
Debt, Development, Economics, and Poverty
Political Geography:
Africa and Asia

169. Hydrogen Fuel Cells and Transport Alternatives: Issues for Developing Countries

Author:
Grant Boyle and Lynn Mytelka
Publication Date:
05-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
Recent technological advances in the application of hydrogen fuel cells in the transport sector have drawn considerable attention and increased funding from both public and private sources over the past ten years. The International Energy Agency estimates that about US$1billion per year is currently being invested in public hydrogen and fuel cell research, development, test vehicles, prototype refuelling stations and demonstration projects, as compared to the total annual public budget for energy research, development and demonstration of around US$8billion. While still in the early stages of development and costly in comparison to conventional vehicle propulsion and fuel technologies, fuel cells and hydrogen offer a promising solution to address growing concerns over the transport sector's dependence on oil and its impact on climate change.
Topic:
Development, Energy Policy, Science and Technology, and Third World
Political Geography:
United States and Europe

170. Open Source and Open Standards: A New Frontier for Economic Development?

Author:
Philip Schmidt and Rishab Aiyer Ghosh
Publication Date:
03-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
Free software (also called open source software or libre software) has become one of the most talked about phenomena in the ICT world in recent years. This is remarkable, not only for the usual reasons—that open source has been around for many years as a volunteer driven success story before being discovered by big business and now government— but also because it has largely developed quietly on its own without the headline coverage and glare of international attention that it now receives.
Topic:
Development, Economics, Science and Technology, and Third World
Political Geography:
United States