Search

16481. How Much Does Natural Resource Extraction Really Diminish National Wealth? The Implications of Discovery

Author:
Alan Gelb, Kai Kaiser, and Lorena Viñuela
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The paper considers the process of discovery for subsoil resources, including both hard minerals and hydrocarbons and estimates its magnitude in recent years, as derived from the sum of extraction and changes in proven reserves. Spurred on by technology change and strong market conditions, discovery has been substantial for most minerals. The value of discovered reserves is high relative to the costs of exploration, particularly when low social discount rates are used to value potential production in the future. Discovery is therefore valuable and should be considered as adding to national wealth through increases in proven reserves. Many countries can continue to generate resource rents far longer than indicated by current reserve estimates and this has implications for decisions on how to plan to spend or save rents. With the high response of discovery to prices and technology, environmental constraints (climate change, water) are more likely than the actual exhaustion of resource deposits to limit resource-based development. The divergence between private and social valuation of discoveries may also justify measures taken by countries to encourage exploration, including through the provision of geo-scientific data to increase interest in discovery as well as competition among mining companies. More information is needed on the payoff to such investments, some of which are supported by donors. However, exploration is, of course, only a slice of the resource value chain. Many countries will need to improve management along the entire chain if resource wealth is to benefit their development.
Topic:
Climate Change, Development, Environment, Natural Resources, and Water

16482. Credit at Times of Stress: Latin American Lessons from the Global Financial Crisis

Author:
Liliana Rojas-Suarez and Carlos Montoro
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The financial systems in emerging market economies during the 2008–09 global financial crisis performed much better than in previous crisis episodes, albeit with significant differences across regions. For example, real credit growth in Asia and Latin America was less affected than in Central and Eastern Europe. This paper identifies the factors at both the country and the bank levels that contributed to the behavior of real credit growth in Latin America during the global financial crisis. The resilience of real credit during the crisis was highly related to policies, measures and reforms implemented in the pre-crisis period. In particular, we find that the best explanatory variables were those that gauged the economy's capacity to withstand an external financial shock. Key were balance sheet measures such as the economy's overall currency mismatches and external debt ratios (measuring either total debt or short-term debt). The quality of pre-crisis credit growth mattered as much as its rate of expansion. Credit expansions that preserved healthy balance sheet measures (the “quality” dimension) proved to be more sustainable. Variables signalling the capacity to set countercyclical monetary and fiscal policies during the crisis were also important determinants. Moreover, financial soundness characteristics of Latin American banks, such as capitalization, liquidity and bank efficiency, also played a role in explaining the dynamics of real credit during the crisis. We also found that foreign banks and banks which had expanded credit growth more before the crisis were also those that cut credit most. The methodology used in this paper includes the construction of indicators of resilience of real credit growth to adverse external shocks in a large number of emerging markets, not just in Latin America. As additional data become available, these indicators could be part of a set of analytical tools to assess how emerging market economies are preparing themselves to cope with the adverse effects of global financial turbulence on real credit growth.
Topic:
Debt, Economics, Emerging Markets, Globalization, and Financial Crisis
Political Geography:
Europe, Asia, and Latin America

16483. Innovative Financing in Early Recovery: The Liberia Health Sector Pool Fund

Author:
Amanda Glassman, Jacob Hughes, and Walter Gwenigale
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
In post-conflict Liberia, the National Health Plan set out a process for transitioning from emergency to sustainability under government leadership. The Liberia Health Sector Pool Fund, which consists of DfID, Irish Aid, UNICEF, and UNHCR, was established to fund this plan and mitigate this transition by increasing institutional capacity, reducing the transaction costs associated with managing multiple donor projects, and fostering the leadership of the Liberian Health Ministry by allocating funds to national priorities. In this paper, we discuss the design of the health pool fund mechanism, assess its functioning, compare the pooled fund to other aid mechanisms used in Liberia, and look into the enabling conditions, opportunities, and challenges of the pool fund.
Topic:
Development, Health, United Nations, and Foreign Aid
Political Geography:
Africa and Liberia

16484. An Index of the Quality of Official Development Assistance in Health

Author:
Amanda Glassman and Denizhan Duran
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Health is one of the largest and most complex aid sectors: 16 percent of all aid went to the health sector in 2009. While many stress the importance of aid effectiveness, there are limited quantitative analyses of the quality of health aid. In this paper, we apply Birdsall and Kharas's Quality of Official Development Assistance (QuODA) methodology to rank donors across 23 indicators of aid effectiveness in health. We present our results, track progress from 2008 to 2009, compare health to overall aid, discuss our limitations, and call for more transparent and relevant aid data in the sector level as well as the need to focus on impact and results.
Topic:
Development, Health, Human Welfare, Humanitarian Aid, and Foreign Aid

16485. Is There Such a Thing As Middle Class Values?

Author:
Florencia Torche, Luis F. Lopez-Calva, and Jamele Rigolini
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Middle class values have long been perceived as drivers of social cohesion and growth. In this paper we investigate the relation between class (measured by the position in the income distribution), values, and political orientations using comparable values surveys for six Latin American countries. We find that both a continuous measure of income and categorical measures of income-based class are robustly associated with values. Both income and class tend to display a similar association to values and political orientations as education, although differences persist in some important dimensions. Overall, we do not find strong evidence of any “middle class particularism”: values appear to gradually shift with income, and middle class values lay between the ones of poorer and richer classes. If any, the only peculiarity of middle class values is moderation. We also find changes in values across countries to be of much larger magnitude than the ones dictated by income, education and individual characteristics, suggesting that individual values vary primarily within bounds dictated by each society.
Topic:
Economics, Political Economy, Social Stratification, and Culture
Political Geography:
Latin America

16486. Remittances and Rashomon

Author:
Devesh Kapur and Randall Akee
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Utilizing a novel data set on remittance data for India that matches household surveys to administrative bank data, we investigate the differences in self-reported and actual deposits to Non-Resident Indian (NRI) accounts. There is a striking difference between the perceived and actual frequency, as well as the amount of deposits, to NRI accounts. Our results indicate the presence of non-classical measurement error in the reporting of remittances in the form of deposits to NRI accounts. As a consequence, regression analyses using remittances as an explanatory variable may contain large upward biases instead of the usual attenuation of results under classical measurement error. Instrumental variables estimates are no better; the estimated coefficients from these regressions are more than three times the size of the OLS regression results. The results point to the need to more carefully check the accuracy of the international remittance flows. The wide discrepancies in the Indian case could be both because of inaccuracies in the household survey as well as mis-classification of the Balance of Payment data with some fraction of reported remittances being disguised capital flows (and hence likely to be less stable) rather than current account flows for family maintenance.
Topic:
Development, Economics, and Labor Issues
Political Geography:
South Asia

16487. Developments and Implications of Missile Defence

Author:
Gustav Lindstrom
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
The Geneva Centre for Security Policy
Abstract:
On 9 December 2011, the Geneva Centre for Security Policy (GCSP) hosted a seminar entitled "Developments and Implications of Missile Defence". The event was organized by the GCSP with the financial support of the Swiss Federal Department of Foreign Affairs (FDFA). About fifty participants attended the event, representing government, international organizations, the think tank community, and academia. The seminar had four principal aims. They were to: Examine recent developments in missile defence initiatives; Gauge the potential consequences of missile defence on regional and global security trends; Analyze the possible impact of missile defence developments on existing and future disarmament activities, including unintended consequences; and, Offer preliminary findings of key issues that policymakers should be aware of as missile defence evolves.
Topic:
Security, Defense Policy, Nuclear Weapons, and Weapons of Mass Destruction
Political Geography:
Europe

16488. Regional and International Energy Security Dynamics: Consequences for NATO's Search for an Energy Security Role

Author:
Phillip Cornell
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
The Geneva Centre for Security Policy
Abstract:
It should not come as a surprise that energy has been steadily gaining importance within security circles in recent years due to the military and security dimensions of this mainly economic issue. As globalization has blurred the lines between traditional security and economic interchange (and especially energy flows), new challenges have arisen. This process has fanned the debate surrounding the role of the North Atlantic Treaty Organization (NATO) with regard to energy questions and their evolution.
Topic:
Security, Defense Policy, NATO, and Energy Policy
Political Geography:
Europe

16489. Book Reviews

Publication Date:
03-2012
Content Type:
Journal Article
Institution:
Chatham House
Abstract:
This edited volume has been published at the end of a year in which African actors have enjoyed almost unprecedented global attention. Protest movements across North Africa, but particularly in Egypt and Tunisia, captured headlines during the Arab Spring, and Time magazine named 'The protestor' as their person of the year for 2011. The world's newest state was born in South Sudan in June. The second half of the year was dominated by a violent revolt and civil war in Libya, against the backdrop of massive western intervention. As the year drew to a close, environmental diplomats and activists from across the world convened in Durban in December, as the possibility of a legally binding global successor to the Kyoto Protocol on climate change was hammered out. One might think, therefore, that the continued warnings from Africanists that most analyses of the continent's inter - national politics continue to 'occur largely from a vantage point of detachment, exclusion and aberrance' (p. 2) might start to ring a little hollow.
Topic:
War
Political Geography:
Africa, North Africa, Egypt, and Tunisia

16490. The Koran Desecration and the Role of Religion in Conflict

Author:
Qamar ul Huda
Publication Date:
03-2012
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
The recent desecration of the Koran and Islamic writings caused violent unrest in Afghanistan and raises concerns about essential training in culture and religion for U.S. personnel. Basic knowledge of religious actors and their roles in peacebuilding and conflict management is still barely factored in by policymakers and advisers to U.S. government. There needs more effort by local, regional, and international religious leaders to promote nonviolent and tolerant reactions even in midst of incendiary events. An assessment is needed to evaluate whether efforts at promoting inter-cultural sensitivity are working or not, and identifying processes for mitigating tensions.
Topic:
Conflict Resolution, Islam, Religion, War, and Counterinsurgency
Political Geography:
Afghanistan and United States