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242. Capital Requirements under Basel III in Latin America: The Cases of Bolivia, Colombia, Ecuador and Peru
- Author:
- Liliana Rojas-Suarez, Arturo J. Galindo, and Marielle del Valle
- Publication Date:
- 05-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- A number of banks in developed countries argue that the new capital requirements under Basel III are too stringent and that implementing the proposed regulation would require raising large amounts of capital, with adverse consequences on credit and the cost of finance. In contrast, many emerging market economies claim that their systems are adequately capitalized and that they have no problems with implementing the new capital requirements. This paper conducts a detailed calculation of capital held by the banks in four Latin American countries—known as the Andean countries: Bolivia, Colombia, Ecuador and Peru—and assesses the potential effects of full compliance with the capital requirements under Basel III. The conclusions are positive and show that while capital would decline somewhat in these countries after they make adjustments to comply with the new definition of capital under Basel III, they would still meet the Basel III recommendations on capital requirements. More importantly, these countries would hold Tier capital to risk-weighted-asset ratios significantly above the 8.5 percent requirement under Basel III. That is, not only the quantity, but also the quality of capital is adequate in the countries under study. While encouraging, these results should not be taken as a panacea since the new regulations are only effective if coupled with appropriate risk management and supervision mechanisms to control the build-up of excessive risk-taking by banks. Further research into these areas is needed for a complete assessment of the strength of banks in the Andean countries.
- Topic:
- Debt, Economics, International Trade and Finance, and Monetary Policy
- Political Geography:
- Colombia, Latin America, Peru, Ecuador, and Bolivia
243. Haiti: Where Has All the Money Gone?
- Author:
- Vijaya Ramachandran and Julie Walz
- Publication Date:
- 05-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Since the 2010 earthquake, almost $6 billion has been disbursed in official aid to Haiti, a country with a population of just under 10 million. An estimated $3 billion has been donated to NGOs in private contributions in addition to official aid. The United States Government alone has disbursed almost $2 billion of this total amount and has pledged over $3 billion for relief and reconstruction.
- Topic:
- Corruption, Humanitarian Aid, Non-Governmental Organization, and Foreign Aid
- Political Geography:
- United States, Caribbean, and Haiti
244. Adolescent Fertility in Low- and Middle-Income Countries: Effects and Solutions
- Author:
- Amanda Glassman, Kate McQueston, and Rachel Silverman
- Publication Date:
- 05-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Adolescent fertility in low- and middle-income countries presents a severe impediment to development and can lead to school dropout, lost productivity, and the intergenerational transmission of poverty. However, there is debate about whether adolescent pregnancy is a problem in and of itself or merely symptomatic of deeper, ingrained disadvantage. To inform policy choices and create a revised research agenda for population and development, this paper aggregates recent quantitative evidence on the socioeconomic consequences of and methods to reduce of teenage pregnancy in the developing world. The review finds variable results for all indicator types with the partial exception of knowledge-based indicators, which increased in response to almost all evaluating interventions, though it is not clear that such interventions necessarily lead to short- or long term-behavior change. The evidence base supporting the effectiveness of conditional cash transfers was relatively strong in comparison to other interventions. Similarly, programs that lowered barriers to attending school or increased the opportunity cost of school absence are also supported by the literature. On the basis of these findings, the authors argue that donors should adopt a rights-based approach to adolescent fertility and shift their focus from the proximate to distal causes of pregnancy, including human rights abuses, gender inequality, child marriage, and socioeconomic marginalization. Further research should be conducted to strengthen the evidence base by 1) establishing causality, 2) understanding the differential impacts of adolescent fertility in different contexts, and 3) investigating other the impact of adolescent fertility on other socioeconomic outcomes, such as labor participation, productivity, and the intergenerational transmission of poverty.
- Topic:
- Democratization, Demographics, Development, Economics, Foreign Aid, and Youth Culture
245. State Health Insurance and Out-of-Pocket Health Expenditures in Andhra Pradesh, India
- Author:
- Victoria Fan, Anup Karan, and Ajay Mahal
- Publication Date:
- 06-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- In 2007, the state of Andhra Pradesh in southern India began rolling out the Aarogyasri health insurance to reduce catastrophic health expenditures in households “below the poverty line.” We exploit variation in program roll-out over time and districts to evaluate the impacts of the scheme using difference-in-differences. Our results suggest that, within the first year of implementation, Phase I of Aarogyasri significantly reduced out-of-pocket inpatient expenditures and, to a lesser extent, outpatient expenditures. These results are robust to checks using quantile regression and matching methods. No clear effects on catastrophic health expenditures or medical impoverishment are seen. Aarogyasri is not benefiting scheduled caste and scheduled tribe households as much as the rest of the population.
- Topic:
- Health, Poverty, and Health Care Policy
- Political Geography:
- India, Asia, and Andhra Pradesh
246. MDGs 2.0: What Goals, Targets, and Timeframe?
- Author:
- Charles Kenny, Andy Sumner, and Jonathan Karver
- Publication Date:
- 06-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The Millennium Development Goals (MDGs) are widely cited as the primary yardstick against which advances in international development efforts are to be judged. At the same time, the Goals will be met or missed by 2015. It is not too early to start asking 'what next?' This paper builds on a discussion that has already begun to address potential approaches, goals and target indicators to help inform the process of developing a second generation of MDGs or 'MDGs 2.0.' The paper outlines potential goal areas based on the original Millennium Declaration, the timeframe for any MDGs 2.0 and attempts to calculate some reasonable targets associated with those goal areas.
- Topic:
- Development, Economics, Emerging Markets, Post Colonialism, and Political Theory
247. Competitiveness in Central America: The Road to Sustained Growth and Poverty Reduction
- Author:
- Liliana Rojas-Suarez, José Luis Guasch, and Veronica Gonzales
- Publication Date:
- 06-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Over the last decade, Central American countries—Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua—have made significant progress in social and economic areas. In particular, they have stabilized their economies after decades of civil war and the economic volatility that plagued the region through the 1990s. Most countries in Central America have taken important steps to improve their business climates, particularly by enhancing macroeconomic stability, improving the soundness of their financial systems, making improvements in infrastructure services and trade facilitation, reducing red tape, and simplifying their regulatory and tax frameworks. As a result, before the 2008 financial crisis, GDP per capita in Central America grew at an average rate of 3 percent per year from 2003 to 2008, which, albeit modest, was the most robust and stable period of growth the region had witnessed since the early 1990s. However, despite this achievement, Central American economies are still lagging behind the rest of Latin America and other middle-income countries by per-capita growth rates of 0.5 to 2 percentage points. Even more worrying are the levels of poverty and inequality, which show the lack of inclusiveness in their growth models. Moreover, recent developments in the region show a number of red flags that are weakening macroeconomic and democratic stability. Significant structural changes are urgently needed to secure sustained and inclusive growth.
- Topic:
- Development, Economics, Emerging Markets, and International Trade and Finance
- Political Geography:
- Latin America and Central America
248. No Longer Poor: Ghana's New Income Status and Implications of Graduation from IDA
- Author:
- Todd Moss and Stephanie Majerowicz
- Publication Date:
- 07-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Ghana's largest and most important creditor for the past three decades has been the International Development Association (IDA), the soft loan window of the World Bank. That will soon come to an end. The combination of Ghana's rapid economic growth and the recent GDP rebasing exercise means that Ghana suddenly finds itself above the income limit for IDA eligibility. Formal graduation is imminent and comes with significant implications for access to concessional finance, debt, and relations with other creditors. This paper considers the specific questions related to Ghana's relationship with the World Bank, as well as the broader questions about the country's new middle-income status.
- Topic:
- Development, Economics, Poverty, Foreign Aid, and Foreign Direct Investment
- Political Geography:
- Africa
249. Escaping Capability Traps through Problem-Driven Iterative Adaptation (PDIA)
- Author:
- Lant Pritchett, Michael Woolcock, and Matt Andrews
- Publication Date:
- 06-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Many reform initiatives in developing countries fail to achieve sustained improvements in performance because they are merely isomorphic mimicry—that is, governments and organizations pretend to reform by changing what policies or organizations look like rather than what they actually do. In addition, the flow of development resources and legitimacy without demonstrated improvements in performance undermines the impetus for effective action to build state capability or improve performance. This dynamic facilitates “capability traps” in which state capability stagnates, or even deteriorates, over long periods of time even though governments remain engaged in developmental rhetoric and continue to receive development resources. How can countries escape capability traps? We propose an approach, Problem-Driven Iterative Adaptation (PDIA), based on four core principles, each of which stands in sharp contrast with the standard approaches. First, PDIA focuses on solving locally nominated and defined problems in performance (as opposed to transplanting preconceived and packaged “best practice” solutions). Second, it seeks to create an authorizing environment for decision-making that encourages positive deviance and experimentation (as opposed to designing projects and programs and then requiring agents to implement them exactly as designed). Third, it embeds this experimentation in tight feedback loops that facilitate rapid experiential learning (as opposed to enduring long lag times in learning from ex post “evaluation”). Fourth, it actively engages broad sets of agents to ensure that reforms are viable, legitimate, relevant, and supportable (as opposed to a narrow set of external experts promoting the top-down diffusion of innovation).
- Topic:
- Development, Economics, Political Economy, Foreign Aid, Foreign Direct Investment, and Governance
250. Assessing the Quality of Aid for Agriculture
- Author:
- Kimberly Elliott and Edward Collins
- Publication Date:
- 08-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- New international initiatives signal strong commitment to agriculture and food security in the face of growing demand and climate-change challenges. But aid to agriculture still represents just five percent of total official development assistance. With donor budgets under intense pressure, making aid effective is more important than ever, but we still know relatively little about the quality of aid in general and of agricultural aid in particular.
- Topic:
- Security, Agriculture, Climate Change, Development, Foreign Aid, and Food
251. A Commitment to Vaccination Index: Measuring Government Progress toward Global Immunization
- Author:
- Amanda Glassman, Denizhan Duran, and Juan Ignacio Zoloa
- Publication Date:
- 08-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Vaccination is among the most cost-effective health interventions and has attracted ever greater levels of investment from public and private funders. However, some countries, mainly populous lower-middle-income countries, are lagging behind in vaccination financing and performance.
- Topic:
- Development, Foreign Aid, and Health Care Policy
252. The Evolution of India's UID Program: Lessons Learned and Implications for Other Developing Countries
- Author:
- Frances Zelazny
- Publication Date:
- 08-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- India has embarked on an ambitious new program to provide its citizens and residents a unique, official identity. The UID (Universal ID) program aims to improve the delivery of government services, reduce fraud and corruption, facilitate robust voting processes, and improve security. It is by far the largest application of biometric identification technology to date and will have far-reaching implications for other developing countries that are looking to adopt national ID programs to further social and economic development. This paper discusses the evolution of the UID program, the innovative organization and pathbreaking technology behind it, how it is being rolled out, and how robust ID is beginning to be used.
- Topic:
- Corruption, Crime, Democratization, Development, and Science and Technology
- Political Geography:
- India
253. Renewable Resource Shocks and Conflict in India's Maoist Belt
- Author:
- Devesh Kapur, Kishore Gawande, and Shanker Satyanath
- Publication Date:
- 08-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Is there a causal relationship between shocks to renewable natural resources, such as agricultural and forest lands, and the intensity of conflict? In this paper, we conduct a rigorous econometric analysis of a civil conflict that the Indian Prime Minister has called the single biggest internal security challenge ever faced by his country, the so-called Maoist conflict. We focus on over-time within-district variation in the intensity of conflict in the states where this conflict is primarily located. Using a novel data set of killings, we find that adverse renewable resource shocks have a robust, significant association with the intensity of conflict. A one standard deviation decrease in our measure of renewable resources increases killings by 12.5 percent contemporaneously, 9.7 percent after a year, and 42.2 percent after two years. Our instrumental variables strategy allows us to interpret these findings in a causal manner.
- Topic:
- Security, Agriculture, Economics, and Natural Resources
- Political Geography:
- South Asia and India
254. CARMA Revisited: An Updated Database of Carbon Dioxide Emissions from Power Plants Worldwide
- Author:
- Kevin Ummel
- Publication Date:
- 08-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The Carbon Monitoring for Action (CARMA) database provides information about the carbon dioxide emissions, electricity production, corporate ownership, and location of more than 60,000 power plants in over 200 countries. Originally launched in 2007, CARMA is provided freely to the public at www.carma. org and remains the only comprehensive data source of its kind. This paper documents the methodology underpinning CARMA v3.0, released in July, 2012. Comparison of CARMA model output with reported data highlights the general difficulty of precisely predicting annual electricity generation for a given plant and year. Estimating the rate at which a plant emits CO2 (per unit of electricity generated) generally faces fewer obstacles. Ultimately, greater disclosure of plant-specific data is needed to overcome these limitations, particularly in major emitting countries like China, Russia, and Japan. For any given plant in CARMA v3.0, it is estimated that the reported value is within 20 percent of the actual value in 85 percent of cases for CO2 intensity, 75 percent for annual CO2 emissions, and 45 percent for annual electricity generation. CARMA's prediction models are shown to offer significantly better estimates than more naïve approaches to estimating plant-specific performance.
- Topic:
- Climate Change, Environment, Health, and Industrial Policy
- Political Geography:
- Russia, Japan, and China
255. A Note on the Middle Class in Latin America
- Author:
- Nancy Birdsall
- Publication Date:
- 08-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The Carbon Monitoring for Action (CARMA) database provides information about the carbon dioxide emissions, electricity production, corporate ownership, and location of more than 60,000 power plants in over 200 countries. Originally launched in 2007, CARMA is provided freely to the public at www.carma.org and remains the only comprehensive data source of its kind. This paper documents the methodology underpinning CARMA v3.0, released in July, 2012. Comparison of CARMA model output with reported data highlights the general difficulty of precisely predicting annual electricity generation for a given plant and year. Estimating the rate at which a plant emits CO2 (per unit of electricity generated) generally faces fewer obstacles. Ultimately, greater disclosure of plant-specific data is needed to overcome these limitations, particularly in major emitting countries like China, Russia, and Japan. For any given plant in CARMA v3.0, it is estimated that the reported value is within 20 percent of the actual value in 85 percent of cases for CO2 intensity, 75 percent for annual CO2 emissions, and 45 percent for annual electricity generation. CARMA's prediction models are shown to offer significantly better estimates than more naïve approaches to estimating plant-specific performance.
- Topic:
- Democratization, Economics, Poverty, and Social Stratification
- Political Geography:
- Russia, Japan, China, America, and Latin America
256. Energy+ Country Performance Ratings, 2001–2010
- Author:
- David Wheeler
- Publication Date:
- 07-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- This paper introduces ƐCPR, country performance ratings that support Norway's Energy+ initiative by monitoring the progress of 153 countries in reducing the CO2 emissions intensity of energy consumption. It develops annual ƐCPR ratings for the period from 2001 to 2010.
- Topic:
- Climate Change, Development, Energy Policy, and Foreign Aid
257. Direct Distribution of Oil Revenues in Venezuela: A Viable Alternative?
- Author:
- Pedro L. Rodríguez, José R. Morales, and Francisco J. Monaldi
- Publication Date:
- 09-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Venezuela is a textbook example of a resource-dependent country—between 1950 and 2008, oil generated over a trillion dollars of income for the state. Nevertheless, Venezuela currently combines an economy that is stagnant, despite high oil prices, with an increasingly authoritarian government. The authors argue that large oil rents that accrue to the state, together with a lack of formal and transparent mechanisms to facilitate citizen oversight, are a large part of the problem. They consider the nature of the fiscal contract between the Venezuelan government and its people. This has been characterized by increasing discretion of the executive; only a small share of the rents is now subject to political oversight within the framework of the budgetary system. The authors consider the case for direct distribution of rents, distinguishing it from a populist approach to transfers as effected through Venezuela's misiones. They also report on focus group discussions of the directdistribution approach and the political viability of direct transfers.
- Topic:
- Civil Society, Economics, Energy Policy, Government, Oil, and Political Economy
- Political Geography:
- Argentina and Latin America
258. Where Will the World's Poor Live? An Update on Global Poverty and the New Bottom Billion
- Author:
- Andy Sumner
- Publication Date:
- 09-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- This paper updates the distribution of global poverty data and makes projections up to 2020. The paper asks the following question: Do the world's extreme poor live in poor countries? It is argued that many of the world's extreme poor already live in countries where the total cost of ending extreme poverty is not prohibitively high as a percentage of GDP. And in the not-too-distant future, most of the world's poor will live in countries that do have the domestic financial scope to end at least extreme poverty. This would imply a reframing of global poverty as largely a matter of domestic distribution.
- Topic:
- Development, Economics, and Poverty
259. Zap It to Me: The Short-Term Impacts of a Mobile Cash Transfer Program
- Author:
- Rachid Boumnijel, Amanda McClelland, Niall Tierney, and Jenny C. Aker
- Publication Date:
- 09-2011
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Conditional and unconditional cash transfers have been effective in improving development outcomes in a variety of contexts, yet the costs of these programs to program recipients and implementing agencies are rarely discussed. The introduction of mobile money transfer systems in many developing countries offers new opportunities for a more cost-effective means of implementing cash transfer programs. This paper reports on the first randomized evaluation of a cash transfer program delivered via the mobile phone. In response to a devastating drought in Niger, households in targeted villages received monthly cash transfers as part of a social protection program. One-third of targeted villages received a monthly cash transfer via a mobile money transfer system (called zap), whereas one-third received manual cash transfers and the remaining one-third received manual cash transfers plus a mobile phone. We show that the zap delivery mechanism strongly reduced the variable distribution costs for the implementing agency, as well as program recipients' costs of obtaining the cash transfer. The zap approach also resulted in additional benefits: households in zap villages used their cash transfer to purchase a more diverse set of goods, had higher diet diversity, depleted fewer assets and grew more types of crops, especially marginal cash crops grown by women. We posit that the potential mechanisms underlying these results are the lower costs and greater privacy of the receiving the cash transfer via the zap mechanism, as well as changes in intra-household decision-making. This suggests that m-transfers could be a cost-effective means of providing cash transfers for remote rural populations, especially those with limited road and financial infrastructure. However, research on the broader welfare effects in the short- and long-term is still needed
- Topic:
- Agriculture, Development, and Science and Technology
- Political Geography:
- Africa
260. The Commander's Emergency Response Program in Afghanistan: Five Practical Recommendations
- Author:
- Vijaya Ramachandran, Gregory Johnson, and Julie Walz
- Publication Date:
- 09-2011
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The U.S. military has become substantially engaged in economic development and stabilization and will likely continue to carry out these activities in in-conflict zones for some time to come. Since FY2002, nearly $62 billion has been appropriated for relief and reconstruction in Afghanistan. The Commander's Emergency Response Program (CERP), which provides funds for projects to address urgent reconstruction and relief efforts, is one component of the military's development operations. In this analysis, we take U.S. military involvement in development as a given and concentrate on providing recommendations for it to operate more efficiently and effectively. By doing so, we are not advocating that the U.S. military become involved in all types of development activities or that CERP be used more broadly; rather, our recommendations address the military's capacity to carry out what it is already doing in Afghanistan and other in-conflict situations.
- Topic:
- Conflict Resolution, Development, Economics, War, and Foreign Aid
- Political Geography:
- Afghanistan and United States