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281. Why and how least developed countries can receive more FDI to meet their development goals

Author:
Ken Davies
Publication Date:
06-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The 48 least-developed countries (LDCs), most of them in sub-Saharan Africa and a few in Asia, need foreign direct investment (FDI) to help meet their development targets. The FDI they now receive, although inadequate, is enough to demonstrate that investors see potential in them. It is therefore realistic for LDCs to seek more FDI, but they need to enhance their investment environments to attract it in the much greater quantities required. Donors can help by targeting official development assistance (ODA) on investment in human capital and supporting governance improvements. Meanwhile, LDCs should establish effective investment promotion agencies (IPAs).
Topic:
Development, Economics, Poverty, Foreign Aid, and Foreign Direct Investment
Political Geography:
Africa and Asia

282. Post-quake Haiti: Security Depends on Resettlement and Development

Publication Date:
06-2011
Content Type:
Policy Brief
Institution:
International Crisis Group
Abstract:
A year and a half after the Western Hemisphere's deadliest earthquake devastated Haiti, 650,000 victims still wait for permanent housing in more than 1,000 unstable emergency camps dotting Port-au-Prince. The first storms of the 2011 hurricane season have flooded 30 camps, forcing tent dwellers to flee and killing 28 persons nationally. Michel Martelly, who replaced René Préval as president on 14 May, faces an immediate crisis in the growing frustrations of the victims in the camps and those with near identical unmet basic needs who remain in the urban slums. Forced evictions, some violent, along with the reappearance of criminal gangs in those camps and slums, add to the volatile mix. Adopting, communicating and setting in motion a comprehensive resettlement strategy, with full input from the victims and local communities, is the first critical reconstruction challenge he must meet in order to restore stability. It will also test the capacity for common international action beyond emergency relief after a year of disturbing divisions within the UN country team and among donors over resettlement strategy.
Topic:
Disaster Relief, Economics, Poverty, and Natural Disasters
Political Geography:
United Nations and Caribbean

283. Elections in Africa: Mixed Blessings for Growth and Poverty Alleviation

Publication Date:
06-2011
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies
Abstract:
Good governance and free elections are often described as preconditions for growth and poverty alleviation. But recent research tells a different story. Although elections motivate political elites to be responsive to popular demands the effects are ambiguous. This has implications for how donors should support policy initiatives in the productive sectors.
Topic:
Democratization, Development, and Poverty
Political Geography:
Africa

284. Puncturing the 4 Myths about Latin America

Author:
Raul Rivera
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
Most people have grown used to thinking about Latin America as a region of marginal global importance: painfully poor, violent, politically and economically unstable and, to top it all, fragmented into some 20-odd countries, each one different from the other. So when Jerry Wind, founding editor of Wharton School Publishing, invited me to speak on Latin America at a Wharton conference aimed at senior U.S. executives, I wondered what a group of U.S. businesspeople would be interested to hear about the region. Who, after all, would want to do business in a place like that? But how accurate are those perceptions? As I prepared for my talk, my conclusion was: not much. Let's address the four principal myths about the region one by one. Myth 1: Latin America Really Does not Matter Economically To start, the territory of continental Latin America is larger than the U.S. and China combined, four times larger than the European Union, and seven times larger than India—a country roughly the size of Argentina. With almost every ecosystem represented, it is in fact the world's most biodiverse region, containing five of the world's ten most biodiverse countries. The region's bio-capacity (the biological productivity of the land measured in hectares per capita) is also larger than any other's. Witness the region's role in the global food chain: it is the largest producer of soybeans, coffee, sugar, bananas, orange juice, a leading fishmeal producer, and a major grain and meat exporter. Its mineral riches keep world industry running: silver, gold, copper, zinc, lead, tin, bismuth, molybdenum, rhenium, telurium, borium, strontium—you name it. And it produces one out of every six barrels of oil. In fact, much of the global community depends on Latin America's vast riches for its prosperity—indeed, for its survival. To that point: the Amazon basin plays a crucial role in the recycling of atmospheric carbon, absorbing one fourth of all global emissions. Latin America's population, now approaching 600 million, is twice that of the U.S. and significantly larger than the combined population of the European Union. Those numbers do not include some 50 million U.S. permanent residents and citizens who trace their origins back to the region (and keep close ties with it). By 2050, the region's population will have risen to an estimated 800 million. Latin America is not poor either. It boasts a per-capita GDP similar to the global average: $10,000. It is no richer or poorer than the rest of the world. In fact, 400 million people, or two-thirds of all Latin Americans, already belong to the global middle class, with their purchasing power fueling much of Latin America's growth. With some 200 million people still living in poverty, Latin America's poor are still numerous. But their ranks are declining fast, at a rate of 5 million a year over the past decade. As a result, its Gini coefficient improved by 10 percent between 2002 and 2008. In brief: the world's poor are now elsewhere—mainly in Asia and Africa. A population this large combined with average income levels have turned Latin America into the fourth largest economy in the world, with a regional GDP of some $6 trillion (purchasing power parity). That is larger than that of Russia and India's combined—larger, in fact, than that of any country or region other than the U.S., the EU and China. Not bad for a “region of marginal importance.” You could argue that Latin America's fragmentation into small, separate markets makes all the difference. But you would be wrong. As a result of the free-market reforms of the past decades, Latin America's economy is now the most open to trade in the developing world, with average tariffs down to 10 percent or less. Intraregional trade is booming. Most significantly, Chile, Colombia, Mexico, and Peru have signed bilateral free-trade agreements (with both the EU and the U.S., though Colombia's is waiting for the U.S. Congress' approval). These agreements are giving rise to a free-trade zone of some 200 million consumers, larger than Brazil and fully open to global trade. Surprisingly, it does not yet have a name—or a space among the BRICs. It will, though. Let's name these four countries the L-4 for now...
Topic:
Economics and Poverty
Political Geography:
United States, Europe, India, Brazil, Colombia, Latin America, Mexico, Chile, and Peru

285. Climate Change Adaptation and Conflict in Nigeria

Author:
Aaron Sayne
Publication Date:
06-2011
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
Nigeria's climate is likely to see growing shifts in temperature, rainfall, storms, and sea levels throughout the twenty-first century. Poor adaptive responses to these shifts could help fuel violent conflict in some areas of the country. A basic causal mechanism links climate change with violence in Nigeria. Under it, poor responses to climatic shifts create shortages of resources such as land and water. Shortages are followed by negative secondary impacts, such as more sickness, hunger, and joblessness. Poor responses to these, in turn, open the door to conflict. Drawing lines of causation between climate change and conflict in specific areas of Nigeria calls for caution, however, particularly as the scientific, social, economic, and political implications of the country's changing climate are still poorly understood. President Goodluck Jonathan's government needs to initiate a serious program of research and policy discussion before taking major adaptive steps. Government and private actors also need to ensure that particular adaptive responses do not themselves fuel violence but actively help build peace. Successful adaptation measures will be crosscutting in design and impact, based on inclusive planning and implementation, steer clear of political patronage traps, and confront political and scientific uncertainty. Solid engagement on the part of the Nigerian federal government is key to achieving the best outcomes, even if most adaptation is done privately. Thus far, official responses have been weak. Along with better information and discussion, Nigeria needs a main federal oversight body to coordinate research and policy, larger roles for sister agencies, and an implementation plan. The country also needs and deserves the help of more developed nations in the form of both adaptation funding and technical assistance.
Topic:
Climate Change, Corruption, Environment, Poverty, and Natural Resources
Political Geography:
Nigeria

286. How countries become rich and reduce poverty: A review of heterodox explanations of economic development

Author:
Lindsay Whitfield
Publication Date:
06-2011
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
For the sake of less developed countries, it is time to adjust the discourses of international development assistance on poverty reduction. This article attempts to do so by reviewing new and old literature explaining why some countries are rich and others are poor. History has repeatedly shown that the single most important thing that distinguished rich countries from poor ones is basically their higher capabilities in manufacturing. We have to shift the discussion about ending world poverty back to one about structural transformation of the economy and increasing technological capabilities.
Topic:
Development, Economics, and Poverty

287. Economics and Emigration: Trillion-dollar Bills on the Sidewalk?

Author:
Michael Clemens
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Large numbers of people born in poor countries would like to leave those countries, but barriers prevent their emigration. Those barriers, according to economists' best estimates to date, cost the world economy much more than all remaining barriers to the international movement of goods and capital combined. Yet economists spend much more time studying the movement of goods and capital, and when they study migration at all, they focus on the effects of immigration on nonmigrants in destination countries. I ask why this is the case and sketch a four-point research agenda on the effects of emigration. Barriers to emigration deserve a research priority that is commensurate with their likely colossal economic effects.
Topic:
Economics, Migration, Poverty, and Immigration

288. Incentive Proliferation? Making Sense of a New Wave of Development Programs

Author:
William Savedoff
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
A new wave of development programs that explicitly use incentives to achieve their aims is under way. They are part of a trend, accelerating in recent years, to disburse development assistance against specific and measurable outputs or outcomes. With a proliferation of new ideas under names such as “payments for performance,” “output-based aid,” and “results based financing,” it is easy to lose sight of basic underlying similarities in these approaches and to miss some significant differences. This paper proposes a way of classifying and distinguishing the range of incentive programs being debated today, emphasizing two particular dimensions: the agent whose behavior the incentive seeks to change and the specificity of the output or outcome measure. It begins by characterizing a basic incentive arrangement, discussing the range of available contracts and how they appear in development programs, presents a classification of existing incentive programs and illustrates the scheme with examples. The paper concludes by identifying four broad categories that address different problems and offers some cautionary notes.
Topic:
Development, International Political Economy, Poverty, and Foreign Aid

289. Scholars Who Became Practitioners

Author:
Nora Lustig
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Celebrated by academics, multilateral organizations, policymakers and the media, Mexico's Progresa/ Oportunidades conditional cash transfers program (CCT) is constantly used as a model of a successful antipoverty program. Here I argue that the transformation of well-trained scholars into influential practitioners played a fundamental role in promoting a new conceptual approach to poverty reduction, ensuring the technical soundness and effectiveness of the program, incorporating rigorous impact evaluation, and persuading politicians to implement and keep the program in place. The involvement of scholar-practitioners also helped disseminate the new CCT “technology” to many countries around the world quite rapidly.
Topic:
Development, Poverty, and Foreign Aid
Political Geography:
Mexico

290. Ready or Not: Pakistan's resilience to disasters one year on from the floods

Publication Date:
07-2011
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
The floods that hit Pakistan in 2010 were the worst in the country's history. The humanitarian response achieved remarkable successes in minimising the immediate loss of life and providing relief to millions of people. However, it could have been better: more than 800,000 families remain without permanent shelter and more than a million people remain in need of food assistance. These unmet needs must be addressed as a matter of urgency.
Topic:
Economics, Humanitarian Aid, Poverty, and Natural Disasters
Political Geography:
Pakistan and South Asia