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622. Globalisation and Economic Development: Malaysia's Experience
- Author:
- Cassey Lee
- Publication Date:
- 12-2019
- Content Type:
- Working Paper
- Institution:
- Economic Research Institute for ASEAN and East Asia (ERIA)
- Abstract:
- The economic development of Malaysia has been strongly driven and shaped by globalisation, from the pre-colonial to the post-independence period. The country has harnessed trade, foreign capital, and foreign labour to grow and has transformed its economy from one that was highly dependent on primary commodities (tin and rubber) into one driven by manufactured exports. The impact of globalisation on the Malaysian economy has changed through the various phases of its development experience. The early phases of the country’s engagement with globalisation reduced poverty and inequality. In later stages, excessive dependence on low-skilled foreign labour, although beneficial initially, may have compromised the competitiveness of the economy. Malaysia’s multi-ethnic society has also posed considerable challenges in the balancing of domestic needs and benefits with greater engagement with globalisation. The openness of the Malaysian economy has also made it vulnerable to global economic shocks.
- Topic:
- Globalization, International Trade and Finance, Inequality, and Economic Development
- Political Geography:
- Malaysia and Asia
623. Economic Consequences of Globalisation: Case Study of Thailand
- Author:
- Archanun Kohpaiboon
- Publication Date:
- 12-2019
- Content Type:
- Working Paper
- Institution:
- Economic Research Institute for ASEAN and East Asia (ERIA)
- Abstract:
- The paper reviews empirical works examining the effect of globalisation in Thailand, beginning with a discussion of its integration into the economy. Three drivers of economic globalisation are emphasised: international trade, foreign direct investment, and cross-border labour mobility. The findings point to globalisation’s potential to create a favourable economic impact. Opening up to international trade could promote productivity and drive economic growth. Large foreign direct investment inflows enticed by export-oriented industrialisation are likely to generate horizontal technological spillovers within a given industry; vertical spillovers through the linkages were not a robust result. There is no evidence that employing foreign workers retards firm productivity; rather, the opposite is the case. Well-performing firms are in a position to attract foreign workers and maintain production capacity. Global production sharing (GPS) does not necessarily mean the participating countries are trapped at the low end of the quality ladder. The Thai experience supports the case for further globalising its economy. Any possible side effects of globalisation can be mitigated by other policies such as strengthening the social safety net.
- Topic:
- Globalization, International Trade and Finance, Labor Issues, and Economic growth
- Political Geography:
- Asia and Thailand
624. Examining World Bank Lending to China: Graduation or Modulation?
- Author:
- Scott Morris and Gailyn Portelance
- Publication Date:
- 01-2019
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Under the World Bank’s 2018 capital agreement, borrowing countries are expected to gradually reduce their portfolios once a base income threshold—the Graduation Discussion Income (GDI)—is reached. However, the agreement also affirms the case for ongoing lending to these countries. One justification is tied to external value beyond the borrowing country’s borders (global public goods, or GPGs). Another is tied to building capacity within the borrowing country, which can mean a focus on sub-regions where poverty remains high and capacity weak. In this paper, we examine World Bank graduation policies and lending through the lens of China, which maintains a large portfolio of World Bank projects. China currently exceeds the GDI thresholds for IBRD borrowing at the national level, while income inequality within the country leaves many noncoastal provinces below the GDI per capita threshold. Aggregate and provincial-level analysis of World Bank lending in China shows that less than half of China’s portfolio comprises activities clearly linked to GPGs, while a slight majority of projects are based in provinces with per capita income below the GDI threshold. A substantial number of World Bank projects in China focus on climate change mitigation and transportation infrastructure construction, while a smaller number relate to capacity building. Overall, we find evidence that China’s borrowing is broadly consistent with the 2018 principles of institutional capacity strengthening and GPG-related engagement, although significant areas of bank engagement do not appear to fall within the parameters of these principles.
- Topic:
- Poverty, Infrastructure, World Bank, and Inequality
- Political Geography:
- China and Asia
625. Measuring the Spatial Misallocation of Labor: The Returns to India-Gulf Guest Work in a Natural Experiment
- Author:
- Michael Clemens
- Publication Date:
- 01-2019
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- ‘Guest workers’ earn higher wages overseas on temporary low-skill employment visas. This wage gap can be used to measure gaps in the productivity of workers due to where they are, not who they are. This paper estimates the effects of guest work on Indian applicants to a construction job in the United Arab Emirates, where an economic crisis allocated guest work opportunities as-good-as-randomly among several thousand families. Guest work raised the return to poor families' labor by a factor of four, with little evidence of systematic fraud.
- Topic:
- Migration, Labor Issues, Migrant Workers, and Guest Workers
- Political Geography:
- India and Asia
626. Toward Medium-Term Solutions for Rohingya Refugees and Hosts in Bangladesh: Mapping Potential Responsibility-Sharing Contributions
- Author:
- Cindy Huang and Kate Gough
- Publication Date:
- 02-2019
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Bangladesh is providing a significant global public good by hosting nearly one million Rohingya refugees, including 700,000 who fled violence carried out with “genocidal intent” in 2017. Most refugees are living in camps in Cox’s Bazar District, where local resources and livelihoods are under strain. The situation has exacerbated development challenges and environmental degradation, such as inadequate public services and rapid deforestation. Safe, voluntary, and sustainable Rohingya repatriation to Myanmar is ultimately the best solution. However, the conditions for return do not exist, and Myanmar has not demonstrated meaningful progress in establishing them. Even if conditions did exist and voluntary repatriation began tomorrow, estimates show a large number of Rohingya will still be in Cox’s Bazar 10 years from now. The refugee situation is likely to be protracted. Medium-term planning is critical. The international community has an opportunity to recognize Bangladesh’s contributions through a robust responsibility-sharing process. In addition to humanitarian aid, this would include commitments that support development among host communities, as well as broader regional and national development strategies. There is precedent for development financing and beyond-aid solutions for refugees and host communities, such as in the Jordan, Lebanon, and Ethiopia Compacts. These agreements seek to meet the medium-term needs and generate inclusive growth for refugees and hosts, including through policy adjustments that enable self-reliance and reduce aid dependence. This brief explores the potential range of responsibility-sharing commitments in support of Bangladesh. It does not address the separate and equally important issues of securing justice and accountability for Myanmar’s alleged atrocities and establishing the necessary conditions in Myanmar for safe, voluntary, and sustainable repatriation—nor does it make recommendations on the humanitarian response, which remains essential. This brief focuses exclusively on the medium-term, development-oriented approach. It covers several categories of contribution and commitment types, including trade and investment, labor mobility, SEZ and infrastructure investment, private sector investment, resettlement, and development and climate finance. Each category includes illustrative examples, some of which are specific to one or a subset of UN Member States and others that are more broadly applicable. Geopolitical factors surrounding the Rohingya situation and potential responsibility-sharing commitments are also discussed. Building on this mapping, we will prepare a full report in 2019. The report will highlight a subset of anchor contributions that could build momentum for a responsibility-sharing process that delivers a “win-win-win” for refugees, host communities, and Bangladesh’s broader development objectives.
- Topic:
- Human Rights, Refugees, Displacement, and Humanitarian Crisis
- Political Geography:
- Bangladesh and Asia
627. Learning Equity Requires More than Equality: Learning Goals and Achievement Gaps between the Rich and the Poor in Five Developing Countries
- Author:
- Maryam Akmal and Lant Pritchett
- Publication Date:
- 02-2019
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The Sustainable Development Goals (SDGs) for education include the goal that “all youth...achieve literacy and numeracy” (Target 4.6). Achieving some absolute standard of learning for all children is a key element of global equity in education. Using the Annual Status of Education Report (ASER) data from India and Pakistan, and Uwezo data from Kenya, Tanzania, and Uganda that test all children of given ages, whether in school or not, on simple measures of learning in math, reading (local language), and English, we quantify the role of achieving equality between the richest 20% and the poorest 40% in terms of grade attainment and learning achievement toward accomplishing the global equity goal of universal numeracy and literacy for all children. First, excluding Kenya, equalizing grade attainment between children from rich and poor households would only close between 8% (India) and 25% (Pakistan) of the gap to universal numeracy, and between 8% (Uganda) and 28% (Pakistan) of the gap to universal literacy. Second, children from the poorest 40% of households tend to have lower performance in literacy and numeracy at each grade. If such children had the learning profiles of children from rich households, we would close between 16% (Pakistan and Uganda) and 34% (India) of the gap to universal numeracy, and between 13% (Uganda) and 44% (India) of the gap to universal literacy. This shows that the “hidden exclusion” (WDR, 2018) of lower learning at the same grade levels—a gap that emerges in the earliest grades—is a substantial and often larger part of the equity gap compared to the more widely documented gaps in enrollment and grade attainment. Third, even with complete equality in grade attainment and learning achievement, children from poor households would be far from the equity goal of universal numeracy and literacy, as even children from the richest 20% of households are far from universal mastery of basic reading and math by ages 12-13. Achieving universal literacy and numeracy to accomplish even a minimal standard of global absolute equity will require more than just closing the rich-poor learning gap, it will take progress in learning for all.
- Topic:
- Development, Education, Sustainable Development Goals, and Language
- Political Geography:
- Pakistan, Kenya, Africa, Middle East, India, Asia, and Tanzania
628. The Limits (And Human Costs) of Population Policy: Fertility Decline and Sex Selection in China under Mao
- Author:
- Kimberly Singer Babiarz, Paul Ma, Grant Miller, and Shige Song
- Publication Date:
- 03-2019
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Most of China’s fertility decline predates the famous One Child Policy—and instead occurred under its predecessor, the Later, Longer, Fewer (LLF) policy. Studying LLF’s contribution to fertility and sex selection behavior, we find that it i) reduced China’s total fertility rate by 0.9 births per woman (explaining 28% of China’s modern fertility decline), ii) doubled the use of male-biased fertility stopping rules, and iii) promoted postnatal neglect (implying 210,000 previously unrecognized missing girls). Considering Chinese population policy to be extreme in global experience, our paper demonstrates the limits of population policy—and its potential human costs.
- Topic:
- Population, Sexuality, and Fertility
- Political Geography:
- China and Asia
629. India-China relations reconsidered: A realist perspective on India´s border dispute with its neighbour
- Author:
- Jayanta Kumar Ray
- Publication Date:
- 01-2019
- Content Type:
- Journal Article
- Journal:
- Revista UNISCI/UNISCI Journal
- Institution:
- Unidad de investigación sobre seguridad y cooperación (UNISCI)
- Abstract:
- India’s relations with Communist China have evolved through various twists and turns. India’s lack of realist approach and naiveté about emerging global politics helped China in gaining an upper hand over India in achieving regional dominance particularly displayed through the bilateral disputes over the border determination. While the defeat of 1962 is a distant past, it has continued to wield great influence over India’s overall approach towards China. This article, thus, goes for a reappraisal of the border issues which have and still continue to influence Indo-China relations.
- Topic:
- Communism, History, Bilateral Relations, and Borders
- Political Geography:
- China, South Asia, India, and Asia
630. Modicare Post-Election: Recommendations to Enhance the Impact of Public Health Insurance on UHC Goals in India
- Author:
- Kalipso Chalkidou, Nishant Jain, Françoise Cluzeau, and Amanda Glassman
- Publication Date:
- 05-2019
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Hailed as one of the largest publicly funded health insurance programs in the world, India’s “Modicare” has, since its launch a little more than six months ago, made universal healthcare coverage an election theme for the first time in the country’s history.[1] In this note, we describe the program, with an emphasis on its better-known secondary and tertiary care component, and offer policy recommendations to strengthen the scheme post-election to enhance its contribution to India’s vision for universal health coverage (UHC). In a country of almost 1.4 billion people that is home to one-third of global maternal deaths, where public spending for health accounts for roughly 1 percent of GDP and where 60 million people fall into poverty every year because of healthcare bills, fixing healthcare is a daunting task that will determine the world’s performance against the Sustainable Development Goals over the coming decade.
- Topic:
- Health, Health Care Policy, Public Health, and Health Insurance
- Political Geography:
- India and Asia