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11. Employment Structure and the Rise of the Modern Tax System

Author:
Anders Jensen
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
This paper shows how the increase in information trails through the long-run transition from self-employment to employee-jobs explains the rise of the modern income tax system. I construct a new database which covers 100 household surveys across countries at different income levels and 140 years of historical data within the US (1870-2010). Using these data, I first establish four new stylized facts: 1) within country, the share of employees increases over the income distribution, and increases at all levels of income as a country develops; 2) the income tax exemption threshold moves down the income distribution as a country develops, tracking employee growth; 3) the employee share above the exemption threshold is maximized and remains constantly high; 4) decreases in the exemption threshold are strongly associated with increases in tax collection. These findings are consistent with a model where a high employee share is a necessary condition for effective taxation and where the rise in income covered by information trails through increases in employee share drives expansion of the income tax base. To provide a causal estimate of employee share on income tax systems, I study a state-led US development program implemented in the 1950s-60s which increased the level of employee share. The identification strategy exploits within-state changes in court-litigation status which generate quasi-experimental variation in the effective implementation date of the program. I find that the exogenous increase in employee share is associated with an expansion of the state income tax base and an increase in state income tax revenue.
Topic:
Political Economy, Finance, Economy, International Development, and Tax Systems
Political Geography:
North America and United States of America

12. Validating India's GDP Growth Estimates

Author:
Arvind Subramanian
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
My recent research paper “India's GDP Mis-estimation: Likelihood, Magnitudes, Mechanisms, and Implications,” (hereafter “GDP paper”) and the associated op-ed in the Indian Express on June 11, 2019 have generated considerable debate. This is encouraging because serious argument and counter-argument are the basis for good policy-making. Since the issue itself is of great importance, the counter-arguments to my analysis warrant a considered response. That is the aim of this note, which is a complement to the original paper, addressing both the larger issues and some of the specific points that have been raised. The note is structured as follows. Section II describes my engagement with India’s GDP estimation when I was Chief Economic Adviser. Section III elaborates on the framework/approach underlying the GDP paper. Section IV makes explicit the key puzzle surrounding India’s growth estimates, and addresses the possible explanations for it. Section V explores the puzzle in greater detail. Section VI provides additional cross-country evidence on growth and price deflators, which support the findings of the original paper, namely that growth during 2011-16 was likely overestimated by a significant margin. Section VII addresses two broad objections to the main findings. Section VIII discusses some of the methodological critiques of the paper. Section IX offers some thoughts on the way forward.
Topic:
Economics, Political Economy, International Development, and Economic growth
Political Geography:
South Asia and India

13. When Do Development Projects Enhance Community Well-Being?

Author:
Michael Woolcock
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Many development agencies and governments now seek to engage directly with local communities, whether as a means to the realization of more familiar goals (infrastructure, healthcare, education) or as an end in itself (promoting greater inclusion, participation, well-being). These same agencies and governments, however, are also under increasing pressure to formally demonstrate that their actions ‘work’ and achieve their goals within relatively short timeframes – expectations which are, for the most part, necessary and desirable. But adequately assessing ‘community-driven’ approaches to development requires the deployment of theory and methods that accommodate their distinctive characteristics: building bridges is a qualitatively different task to building the rule of law and empowering minorities. Moreover, the ‘lessons’ inferred from average treatment effects derived from even the most rigorous assessments of community-driven interventions are likely to translate poorly to different contexts and scales of operation. Some guidance for anticipating and managing these conundrums are provided.
Topic:
Development, Government, Infrastructure, and International Development
Political Geography:
Global Focus and United States of America

14. Reasons for Using Mixed Methods in the Evaluation of Complex Projects

Author:
Michael Woolcock
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Evaluations of development projects are conducted to assess their net effectiveness and, by extension, to guide decisions regarding the merits of scaling-up successful projects and/or replicating them elsewhere. The key characteristics of ‘complex’ interventions – numerous face- to-face interactions, high discretion, imposed obligations, pervasive unknowns – rarely fit neatly into standard evaluation protocols, requiring the deployment of a wider array of research methods, tools and theory. The careful use of such ‘mixed methods’ approaches is especially important for discerning the conditions under which ‘successful’ projects of all kinds might be expanded or adopted elsewhere. These claims, and the practical implications to which they give rise, draw on an array of recent evaluations in different sectors in development.
Topic:
International Development, Humanitarian Intervention, and Public Policy
Political Geography:
Global Focus

15. Why Does Hirschmanian Development Remain Mired on the Margins? Because Implementation (and Reform) Really is 'a Long Voyage of Discovery'

Author:
Michael Woolcock
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
A defining task of development is enhancing a state’s capability for policy implementation. In most low- income countries, alas, such capabilities seem to be stagnant or declining, in no small part because dominant reform strategies are ill-suited to addressing complex non-technical aspects. This has been recognized for at least six decades – indeed, it was a centerpiece of Albert Hirschman’s understanding of the development process – yet this critique, and the significance of its implications, remain on the margins of scholarship and policy. Why? I consider three options, concluding that, paradoxically, followers of Hirschman’s approach inadequately appreciated that gaining more operational traction for their approach was itself a type of problem requiring their ideas to embark on ‘a long voyage of discovery’, a task best accomplished, in this instance, by building – and tapping into the distinctive insights of – a diverse community of development practitioners.
Topic:
Development, Political Economy, Developing World, and International Development
Political Geography:
North America and United States of America

16. Jordan: The Elements of a Growth Strategy

Author:
Ricardo Hausmann, Tim O'Brien, Miguel Angel Santos, Ana Grisanti, Semiray Kasoolu, Nikita Taniparti, Jorge Tapia, and Ricardo Villasmil
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
In the decade 1999-2009, Jordan experienced an impressive growth acceleration, tripling its exports and increasing income per capita by 38%. Since then, a number of external shocks that include the Global Financial Crisis (2008-2009), the Arab Spring (2011), the Syrian Civil War (2011), and the emergence of the Islamic State (2014) have affected Jordan in significant ways and thrown its economy out of balance. Jordan’s debt-to-GDP ratio has ballooned from 55% (2009) to 94% (2018). The economy has continued to grow amidst massive fiscal adjustment and balance of payments constraints, but the large increase in population – by 50% between 2008 and 2017 – driven by massive waves of refugees has resulted in a 12% cumulative loss in income per capita (2010-2017). Moving forward, debt sustainability will require not only continued fiscal consolidation but also faster growth and international support to keep interest payments on the debt contained. We have developed an innovative framework to align Jordan’s growth strategy with its changing factor endowments. The framework incorporates service industries into an Economic Complexity analysis, utilizing the Dun and Bradstreet database, together with an evaluation of the evolution of Jordan’s comparative advantages over time. Combining several tools to identify critical constraints faced by sectors with the greatest potential, we have produced a roadmap with key elements of a strategy for Jordan to return to faster, more sustainable and more inclusive growth that is consistent with its emerging comparative advantages.
Topic:
Labor Issues, Women, GDP, International Development, and Economic growth
Political Geography:
Middle East and Jordan

17. Gender Analysis and Monitoring of District Budgets: Training Manual

Publication Date:
03-2019
Content Type:
Special Report
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
This is a Training Manual to be used for building capacity in gender analysis and monitoring of district budgets. Development of this manual is part of a larger project titled ‘Building Capacity for Gender Responsive Budgeting in Uganda’ funded by the International Development Research Council (IDRC) and implemented by the Center for Budget and Economic Governance (CBEG) at ACODE. The project aims at building capacity in gender responsive budgeting of actors at national and local government levels. Implementation of the project will cover three districts of Soroti, Mukono and Mbarara and will put special emphasis on the agriculture and health sectors.
Topic:
Agriculture, Development, Gender Issues, Health, International Development, and Capacity
Political Geography:
Uganda and Africa

18. Mobilizing Additional Funds for Pro-Poor Water Services: An Exploration of Potential Models to Finance Safe Water Access in Support of Sustainable Development Goal 6.1

Author:
Tanvi Nagpal, Ammar A. Malik, Matthew Eldridge, Yoori Kim, and Chloe Hauenstein
Publication Date:
09-2018
Content Type:
Research Paper
Institution:
Urban Institute
Abstract:
Meeting the Sustainable Development Goal for universal and equitable access to safe and affordable drinking water by 2030 requires utilities serving the poorest households to play critical roles. Yet these utilities are frequently unable to cover their current operational costs, much less expand access, through existing tariffs and transfers. New models and approaches are needed to identify new sources of sustainable subsidies for these utilities. Drawing on lessons from other sectors, this study explores three potential models in particular – global funds, solidarity levies, and land value capture – for raising additional resources and considers ways that funding could be pooled and delivered to incentivize improved outcomes.
Topic:
Water, Sustainable Development Goals, and International Development
Political Geography:
United Nations and Global Focus

19. High-Tech Humanitarians: Airtel Uganda’s Partnership with DanChurchAid

Author:
Patrick Meagher, Ammar A. Malik, Edward Mohr, and Yasemin Irvin-Erickson
Publication Date:
10-2018
Content Type:
Research Paper
Institution:
Urban Institute
Abstract:
The world is in the midst of an unprecedented refugee crisis, and Uganda’s response to the influx of asylum-seekers from South-Sudan is considered successful and is therefore a valuable target for study and replication. Uganda accepts refugees regardless of point of origin and gives them the rights of freedom of movement and the opportunity to seek employment. This case study examines the official government and humanitarian agency response to increased refugee numbers, both in terms of policies and resources. It also focuses on telecommunication access and humanitarian cash transfers, and it analyzes the partnership between Danish Church Aid and Airtel Uganda.
Topic:
Government, Humanitarian Aid, Science and Technology, Refugee Issues, Immigrants, International Development, and Asylum
Political Geography:
Uganda, Africa, and South Sudan

20. Private-Sector Humanitarians? New Approaches in the Global Refugee Response

Author:
Ammar A. Malik, Edward Mohr, and Yasemin Irvin-Erickson
Publication Date:
10-2018
Content Type:
Research Paper
Institution:
Urban Institute
Abstract:
With the global displaced population exceeding 68 million, the global humanitarian response system is under unprecedented stress. With widening funding gaps and no resolution in sight, new solutions are needed to address the needs of over 68 million displaced people worldwide. The private sector’s innovative and financial capacity is emerging as one such avenue, resulting in dozens of partnerships with local and international nonprofits. Depending on local policy environments, such working arrangements create both opportunities and risks for partners and hosts. This report is an attempt to learn lessons from existing experiences and offer insights on what works under given circumstances. Through desk research on existing partnerships, semistructured interviews with key stakeholders, site visits with partners in Jordan and Uganda, expert roundtables, and public discussions, we gather insights on both conceptual and practical aspects of partnerships benefiting refugees. We introduce a conceptual framework on the variety of options available to partners and offer recommendations for organizing win-win partnerships in the future.
Topic:
Science and Technology, Immigration, Refugees, International Development, Displacement, and Private Sector
Political Geography:
Uganda, Africa, Middle East, and Jordan