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191. Using Entrepreneurship to Promote Stability in Fragile Regions

Author:
Raymond Gilpin and Steven Koltai
Publication Date:
09-2012
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
Described as the productive combination of innovation, initiative, risk and capital, entrepreneurship could provide a crucial underpinning for stability in conflict-affected regions via job creation and improved human security. State building initiatives regularly tout entrepreneurship as an integral part of broader economic development, political or security strategies but seldom explain the thinking behind purported causal linkages. The Six + Six model offers a targeted and comprehensive strategy to promote entrepreneurship in conflict-affected states. It provides a dynamic alternative to aid-based strategies. Given the growing success of impact investing, it is imperative for bilateral and multilateral development agencies to help facilitate such investment by co-investing and seeding further impact investing. Entrepreneurs in fragile regions urgently need support in the form of enabling environments and innovative approaches that reward their creativity and risk-taking. To bolster entrepreneurs' chances for success, policymakers should consider: redirecting foreign assistance; re-focusing private sector development interventions; re-conceptualizing state building; and re-valuing individuals.
Topic:
Conflict Prevention, Political Violence, Economics, Markets, Poverty, Fragile/Failed State, and Foreign Direct Investment

192. How Business Can Foster Peace

Author:
Raymond Gilpin, John Forrer, and Timothy L. Fort
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
The business sector can promote prosperity and stability in conflict-prone and conflict affected regions through good corporate citizenship, but operating in these high-risk, high-reward environments is fraught with great difficulty. Many firms develop risk mitigation strategies designed to minimize exposure and cost without accounting for costs to the country, its population, and the environment. Poor risk management strategies combine with endemic corruption and myriad market failures and distortions resulting from weak economic governance to reinforce aspects of the political economy that could trigger and sustain violent conflict. Effectively addressing these failings could reduce business costs, increase efficiency, and improve governance and livelihoods in fragile regions. U.S. government policy documents, such as the Quadrennial Defense Review, Quadrennial Diplomacy and Defense Review, and National Security Strategy, allude to a potential role for firms in furthering stability and promoting peace but do not clearly analyze the complexities such endeavors entail or identify workable solutions. Strategies to capitalize on the immense potential of the business sector to foster peace must account for the size of firms, whether they are state or privately owned, which industries they are involved in, and their interconnectedness within supply chains. Key components of effective strategies include crafting incentives to reward investing firms that espouse good corporate citizenship, strengthening international initiatives that promote transparency and contain corruption, developing initiatives to more fully incorporate the local economy into global value chains, and introducing mechanisms to forge global consensus on appropriate conflict-sensitive business practices.
Topic:
Conflict Resolution, Political Violence, Development, Poverty, War, and Fragile/Failed State
Political Geography:
United States

193. Global microscope on the microfinance business environment 2012

Publication Date:
10-2012
Content Type:
Working Paper
Abstract:
The last few years have presented a series of challenges and learning opportunities for the microfinance sector. During the last few decades the microfinance industry experienced substantial growth, but eventually this resulted in market saturation, a rise of The last few years have presented a series of challenges and learning opportunities for the microfinance sector. During the last few decades the microfinance industry experienced substantial growth, but eventually this resulted in market saturation, a rise of non-performing loans and multiple lending across a few key markets. The global financial crisis then increased the focus on risk management, corporate governance and regulatory capacity. Most recently, the Andhra Pradesh microfinance credit crisis that unfolded in India has raised serious questions about the viability of microfinance as a valid development modality.
Topic:
Economics, Globalization, International Trade and Finance, Poverty, Financial Crisis, and Governance
Political Geography:
Andhra Pradesh

194. The Buoyant Billions: How "Middle Class" Are the New Middle Classes in Developing Countries? (And Why Does It Matter?)

Author:
Andy Sumner
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Middle-income countries (MICs) are now home to most of the world's extreme poor—the billion people living on less than $1.25 a day and a further billion people living on between $1.25 and $2. At the same time, many MICs are also home to a drastically expanding emerging middle or nonpolar group, called here the “buoyant billions.” This group includes those (mostly in MICs) living on between $2 and $4 a day and another billion people (also mostly in MICs) between $4 and $10 a day. Although they are above the average poverty line for developing countries, many people in these new “middle classes” may be insecure and at risk of falling into poverty. This paper outlines indicative data on trends relating to poverty and the nonpoor by different expenditure groups, and critically reviews the recent literature that contentiously labels such groups as “middle class.” The paper argues that such groups are neither extremely poor nor secure from poverty and that such groups are worthy of closer examination because their expansion may potentially have wider societal implications related, for example, to taxation, governance, and—ultimately—domestic politics.
Topic:
Development, Economics, Emerging Markets, and Poverty

195. Declining Inequality in Latin America in the 2000s: The Cases of Argentina, Brazil, and Mexico.

Author:
Nora Lustig, Luis F. Lopez-Calva, and Eduardo Ortiz-Juarez
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Between 2000 and 2010, the Gini coefficient declined in 13 of 17 Latin American countries. The decline was statistically significant and robust to changes in the time interval, inequality measures, and data sources. In-depth country studies for Argentina, Brazil, and Mexico suggest two main phenomena underlie this trend: a fall in the premium to skilled labor and more progressive government transfers. The fall in the premium to skills resulted from a combination of supply, demand, and institutional factors. Their relative importance depends on the country.
Topic:
Development, Economics, Emerging Markets, Globalization, International Trade and Finance, Poverty, and Social Stratification
Political Geography:
Brazil, Argentina, Latin America, and Mexico

196. Commitment to Development Index 2012

Author:
David Roodman
Publication Date:
10-2012
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
Why does the CDI matter? Because in an increasingly integrated world, the behavior of rich countries can profoundly affect the lives of people in poor countries and because poverty and weak institutions in developing countries can breed public health crises, security threats, and economic crises that know no borders. Committing to policies that promote develop- ment and well-being is a global imperative—no human being should be denied the chance to live free of poverty and oppression and to enjoy a basic standard of education and health. The CDI countries, all democracies, preach concern for human life and dignity within their own borders; the Index looks at whether rich countries' actions match their words.
Topic:
Development, Economics, Education, Health, and Poverty

197. Côte d'Ivoire : faire baisser la pression

Publication Date:
11-2012
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
En Côte d'Ivoire, la sortie de crise est menacée par une situation sécuritaire volatile et des blocages politiques. Le dernier trimestre a été marqué par une série d'attaques meurtrières qui ont visé un commissariat de police, l'un des principaux camps militaires du pays, plusieurs posi- tions de l'armée et une centrale électrique. Ces incidents ont été précédés par d'autres violences à l'Ouest. Même si ces évènements ne constituent pas une menace immé- diate pour la stabilité, ils indiquent que, pour certains, la guerre n'est pas terminée. Lenteur de la réforme du sec- teur de la sécurité, gel du dialogue politique, fragilité de la coalition au pouvoir, ret our de la violence verbale, révélation de projets de coup d'Etat, doutes sur la réalité d'une volonté de réconciliation nationale, sont autant de signes préoccupants. Le présid ent Alassane Ouattara et son nouveau gouvernement formé le 22 novembre ne doivent pas compter exclusivement sur la relance économique et le verrouillage sécuritaire pour consolider la paix. La com- munauté internationale ne do it pas détourner son regard d'un pays dont la stabilisation est d'autant plus cruciale pour l'Afrique de l'Ouest que le Mali voisin a basculé dans une crise profonde et durable.
Topic:
Security, Political Violence, Poverty, and Governance
Political Geography:
Africa

198. Land Tenure and Economic Activities in Uganda: a Literature Review

Author:
Michael Kidoido, Rasmus Hundsbæk Pedersen, Rachel Spichiger, and Sarah Alobo
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Land is an important asset for people's livelihoods and for economic development in Uganda, where the majority of people live in rural areas. This working paper reviews the literature on Uganda's tenure systems and their relationship with economic activities, focusing primarily on rural agricultural land. The review illustrates that these relationships are complex and context-dependent.
Topic:
Development, Economics, Gender Issues, Poverty, and Law
Political Geography:
Uganda and Africa

199. The Impact of Taxes and Social Spending on Inequality and Poverty in Argentina, Bolivia, Brazil, Mexico, and Peru: A Synthesis of Results

Author:
Nora Lustig
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
We apply a standard tax-and-benefit-incidence analysis to estimate the impact on inequality and poverty of direct taxes, indirect taxes and subsidies, and social spending (cash and food transfers and in-kind transfers in education and health). The extent of inequality reduction induced by direct taxes and transfers is rather small (2 percentage points on average), especially when compared with that found in Western Europe (15 percentage points on average). What prevents Argentina, Bolivia, and Brazil from achieving similar reductions in inequality is not the lack of revenues but the fact that they spend less on cash transfers—especially transfers that are progressive in absolute terms—as a share of GDP. Indirect taxes result in that net contributors to the fiscal system start at the fourth, third, and even second decile on average, depending on the country. When in-kind transfers in education and health are added, however, the bottom six deciles are net recipients. The impact of transfers on inequality and poverty reduction could be higher if spending on direct cash transfers that are progressive in absolute terms were increased, leakages to the nonpoor reduced, and coverage of the extreme poor by direct transfer programs expanded.
Topic:
Development, Economics, Education, Health, and Poverty
Political Geography:
Brazil, Argentina, Latin America, Mexico, Peru, and Bolivia

200. Resources, risk and resilience: scarcity and climate change in Ethiopia

Author:
Alex Evans
Publication Date:
08-2012
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
Ethiopia's resource scarcity context presents a daunting challenge, but also a significant opportunity. The country's current scarcity context includes: Low agricultural yields and farm sizes: Even if farm productivity were to increase by a factor of three, the average farm would still not produce enough food for a family of five. With 83% of Ethiopia's people directly dependent on agriculture for their livelihoods, the country has a major food security challenge; 7.5 million people depend on food safety nets. Major exposure to drought: Ethiopia has erratic rainfall, and acutely limited water storage capacity: the country has only 43m3 of reservoir storage per person, compared to 750m3 in South Africa and 6,150m3 in North America. Levels of irrigation are also low: the World Bank estimates that only 5% of irrigable land in Ethiopia is actually irrigated. Limited access to energy: Ethiopia's total primary energy supply is less than 60% of the African average, and only just over a fifth of the global average. The country depends on waste and biomass for 90 of its energy needs – leading to consequences including deforestation, and soil degradation as a result of biomass not being returned to the soil. High dependence on imported oil and food: Ethiopia currently imports all of its liquid fuels and a significant proportion of its food. This creates major exposure to global commodity price volatility, with the attendant risk of balance of payments problems, inflation and outright supply interruptions.
Topic:
Agriculture, Climate Change, Development, Economics, Poverty, Natural Resources, and Food
Political Geography:
Africa, South Africa, North America, and Ethiopia