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Begin New Search Content Type Working Paper Publishing Institution The Brookings Institution

1. Toward data driven education systems

Author:
Samantha Custer, Elizabeth M King, Tamar Manuelyan Atinc, Lindsay Read, and Kabir Sethi
Publication Date:
02-2018
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Today, 650 million children around the globe are at risk of being left behind as they fail to learn basic skills. Inequitable access to education is part of the problem, but even when children are in school, they may not be learning. In Uganda, for instance, barely half of grade 6 children read at a grade 2 level (Uwezo, 2016). In India, just one in four children enrolled in grade 5 can read a simple sentence or complete simple division problems (ASER Centre, 2017).
Topic:
Education and International Cooperation
Political Geography:
Global Focus

2. Delivering inclusive access:

Author:
Jeffrey Gutman, Adie Tomer, Thomas J. Kane, Dev Patel, and Ranjitha Shivaram
Publication Date:
08-2017
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Across the world, rapid urban growth offers enormous opportunity to those living in cities and suburbs. Urban residents tend to earn higher incomes than their rural peers, and enjoy the benefits of living in closer proximity to vital services and commerce. However, the same influx of people and economic activity also places enormous pressure on the built environment, straining existing transportation systems across the developed and developing world. In turn, residents and businesses increasingly struggle to reach one another, and they often place a premium on locating in neighborhoods with the greatest urban access. In other words, people want to live where it is easy to reach key destinations. This can drive up the price of land and contributes to a toxic mix of income inequality and spatial inequity.
Topic:
International Affairs
Political Geography:
Global Focus

3. The Trans-Pacific Partnership The politics of openness and leadership in the Asia-Pacific

Author:
MIREYA SOLIS and Mireya Solis
Publication Date:
10-2016
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Trade policy, and the Trans-Pacific Partnership (TPP) in particular, is vitally connected to the national interests of prosperity, security, and governance. With novel rules on the digital economy, high tariff elimina- tion targets, and disciplines to address behind-the-border protectionism, the TPP creates opportunities for American sectors that enjoy competitive strength—services, advanced manufacturing, agriculture—to expand their reach in overseas markets. Projected annual income gains from this trade deal range between $57 billion and $131 billion by 2032, compared to a base- line scenario. In sharp contrast to the experience of import competition with China, the TPP will not impose large adjustment costs in terms of employment and wages, generating instead a net (albeit small) positive effect on job creation and wage rates. However, the individual costs for displaced employees are very high, and the contours of a new pro-adjustment safety net that enables workers to navigate difficult economic transitions (brought about by technological change or trade) are highlighted below.
Topic:
Globalization, International Political Economy, and International Trade and Finance
Political Geography:
America and Asia-Pacific

4. A Framework for U.S. Policy toward China

Author:
Jeffrey Bader
Publication Date:
03-2016
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Serious people understand that the manner in which the United States deals with China will be a critical, if not the critical, overseas chal- lenge for the United States in the 21st century. China will likely be the largest economy in the world within one or two decades; the second or third strongest military soon, if not already; and competitive with the United States and Europe in global economic, and perhaps political and cultural, influence in some regions. China is ruled by a Communist Par- ty resistant to political liberalization at home and wedded to nationalist rhetoric and behavior in dealing with its neighborhood, enhancing the chances for rivalry with the United States. For those students of history who see conflict as the likely outcome when ris- ing powers encounter dominant powers, these are precursors of a dark future. How should we deal with China? What policy framework best optimizes our interests, which are multiple and not always consistent with each oth- er? Americans are in the midst of an ongoing presidential campaign that, in a better world, would be asking and answering such questions, but this is not such a campaign.
Topic:
International Relations, Foreign Policy, and International Political Economy
Political Geography:
China and America

5. Governing Lagos: Unlocking the Politics of Reform

Author:
Diane De Gramont
Publication Date:
01-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
In fifteen years, Lagos has gone from being a symbol of urban disorder to a widely cited example of effective African governance. The Lagos State government has succeeded in multiplying its tax revenues and using these resources to restore basic infrastructure and expand public services and law enforcement. Extensive field research indicates that reform commitment in Lagos was driven by electoral pressures as well as elite ambitions to construct an orderly and prosperous megacity.
Topic:
Governance and Reform
Political Geography:
Africa

6. Innovation and Action in Funding Girls\' Education

Author:
Xanthe Ackerman
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Many more girls are going to school than ever before, thanks in large part to the Education for All movement (EFA),14 the Millennium Development Goals and international and national programs that have increased access to school for all children. Legislation to make primary education free of charge in many African and Asian countries has greatly contributed to the decrease in the number of primary-school-age girls who are out of school, even as the population of schoolage children has continued to increase. At the primary level, the share of girls in the out-of-school population dropped from 58 percent in 2000 to 53 percent in 2012.15
Topic:
Development
Political Geography:
Africa

7. Agriculture and rural development for inclusive growth and food security in Morocco

Author:
Hafez Ghanem
Publication Date:
02-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Morocco has so far been a success story in the Arab world. It has followed a gradual approach to political reforms and democratization, which led to the adoption of a new constitution and the holding of free parliamentary elections in 2011. At the same time, economic growth averaged 4.5 percent between 2000 and 2010, reached 5.0 percent in 2011, 2.7 percent in 2012, and 4.4 percent in 2013. That is, Morocco has avoided the political upheavals and economic meltdowns that plagued other Arab Countries in Transition (ACTs). Maintaining this record of success will require continued political and economic reforms.
Topic:
Development and Economics
Political Geography:
Arabia and Morocco

8. Using the Internet to promote services exports by small- and medium-sized enterprises

Author:
Joshua Meltzer
Publication Date:
02-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
SMEs are the main drivers of U.S. employment, and the majority of the employment is in SME services firms. Services are also a growing portion of U.S. exports. U.S. services exports are 34 percent of total exports. Including services used in the production of goods for export increases services exports to 50 percent of total U.S. exports. The U.S. runs a services trade surplus and has a competitive advantage in high-skill, high-paying services. The U.S. trade surplus in 2013 was $213 billion. Services exports supported 4.2 million jobs in the U.S. in 2013. Services SMEs are under-represented in U.S. exports. Only 5 percent of high-skilled services companies export, compared to 25 percent in the manufacturing sector. The global growth in Internet access is providing new opportunities for SMEs to export services to customers globally. The Internet also gives SMEs access to services as inputs, which increases the productivity of all SMEs and their ability to compete in overseas markets. Export Promotion Agencies (EPAs) assist SMEs to export. However, EPAs have not developed a comprehensive approach that takes full advantage of the opportunities the Internet provides for growing SME services exports. Some countries have developed new ways to use the Internet to assist SME exports. For example, in the U.S., businessusa.gov collects on a single website relevant trade data and provides information on the export assistance provided by various government agencies. In the U.K., opentoexport.com provides trade data, information on exporting and opportunities to blog and interact with experts. Matchsme.com in Denmark goes further and connects local businesses with local service suppliers. Connectamericas.com is also focused on Latin America and uses the Internet to match customers and suppliers. These different approaches and their successes provide insights into how to scale up an online program that could have a significant impact on SME services exports. The following are the main elements of such a program: Develop an Internet platform. Such a platform would connect services SMEs with overseas buyers and facilitate the transaction through to the export and payment. Build public-private partnerships. The Internet platform should involve the government and the private sector, drawing on their respective expertise. Develop trust in the Internet platform. This is needed if the platform is to succeed. There are various ways to build trust. This could include developing a rating system that is accepted across borders and incorporates into the platform existing trust-building mechanisms. Give services SMEs access to better information. The Internet platform should include all relevant information for services SMEs, including trade data, timely and relevant information on markets, barriers and regulations. Develop online networking opportunities. The Internet platform should allow services SMEs to meet customers and suppliers online. This would also increase the flow of timely information amongst participants on the platform. Such networks can also be used to vet potential business partners, thereby building trust in the Internet platform. Improve access to finance. A lack of finance is a barrier for services SMEs going global. An Internet platform should include information on financing opportunities and innovative financing approaches such as crowd funding. Create opportunities for soft landing in export markets. The ability for services SMEs to have face time with potential customers remains important for achieving export success. An Internet platform could build on the approach of CDMN in Canada and give SMEs opportunities to spend time overseas in start-up incubators or building contacts.
Topic:
Development
Political Geography:
Latin America

9. Investing in Early Childhood Development: What is Being Spent, And What Does it Cost?

Author:
Vidya Putcha and Jacques van der Gaag
Publication Date:
02-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
In the developing world, more than 200 million children under the age of five years are at risk of not reaching their full human potential because they suffer from the negative consequences of poverty, nutritional deficiencies and inadequate learning opportunities. Given these risks, there is a strong case for early childhood development (ECD) interventions in nutrition, health, education and social protection, which can produce long-lasting benefits throughout the life cycle. The results from the 2012 round of the Program for International Student Assessment (PISA)—an international, large-scale assessment that measures 15-year-olds\' performance in mathematics, reading and science literacy—demonstrate the benefits of ECD: Students in the countries that belong to the Organization for Economic Cooperation and Development (OECD) who had the benefit of being enrolled for more than one year in preprimary school scored 53 points higher in mathematics (the equivalent of more than one year of schooling), compared with students who had not attended preprimary school. Although there is much evidence that ECD programs have a great impact and are less costly than educational interventions later in life, very few ECD initiatives are being scaled up in developing countries. For example, in 2010, only 15 percent of children in low-income countries—compared with 48 percent worldwide—were enrolled in preprimary education programs. Furthermore, even though the literature points to larger beneficial effects of ECD for poorer children, within developing countries, disadvantaged families are even less likely to be among those enrolled in ECD programs. For instance, in Ghana, children from wealthy families are four times more likely than children from poor households to be enrolled in preschool programs.
Topic:
Development and Economics

10. The post-2015 agenda and the evolution of the World Bank Group

Author:
Homi Kharas
Publication Date:
09-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The Addis Ababa Action Agenda reaffirms the central role of development banks in providing concessional and non-concessional long-term financing, countercyclical financing, guarantees and leverage, policy advice, capacity building, and other support to the post-2015 agenda. "We recognize the significant potential of multilateral development banks and other international development banks in financing sustainable development and providing know-how. We stress that development banks should make optimal use of their resources and balance sheets, consistent with maintaining their financial integrity, and should update and develop their policies in support of the post-2015 development agenda, including the sustainable development goals (SDGs)."
Topic:
Development, International Trade and Finance, Treaties and Agreements, United Nations, and World Bank
Political Geography:
Global Focus

11. Driving sustainable development through better infrastructure: Key elements of a transformation program

Author:
Lord Nicholas Stern, Jeremy Oppenheim, and Amar Bhattacharya
Publication Date:
07-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The agendas of accelerating sustainable development and eradicating poverty and that of climate change are deeply intertwined. Growth strategies that fail to tackle poverty and/or climate change will prove to be unsustainable, and vice versa. A common denominator to the success of both agendas is infrastructure development. Infrastructure is an essential component of growth, development, poverty reduction, and environmental sustainability.
Topic:
Climate Change, Development, Economics, Poverty, and Infrastructure
Political Geography:
Global Focus

12. Today's challenges for girls' education

Author:
Elizabeth King and Rebecca Winthrop
Publication Date:
06-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Educating a girl is one of the best investments her family, community, and country can make. We know that a good quality education can be life-changing for girls, boys, young women, and men, helping them develop to their full potential and putting them on a path for success in their life. We also know that educating a girl in particular can kick-start a virtuous circle of development. More educated girls, for example, marry later, have healthier children, earn more money that they invest back into their families and communities, and play more active roles in leading their communities and countries.
Topic:
Development, Education, Gender Issues, and Human Welfare
Political Geography:
Global Focus

13. Happiness and health in China: The paradox of progress

Author:
Carol Graham, Shaojie Zhou, and Junyi Zhang
Publication Date:
06-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The past two decades in China brought unprecedented rates of economic growth, development, and poverty reduction. Indeed, much of the reduction in the world’s extreme poverty rates during that time can be explained by the millions of people in China who exited poverty. GDP per capita and household consumption increased fourfold between the years 1990 and 2005.1 China jumped 10 places forward on the Human Development Index from 2008 until 2013, moving up to 93 of 187 countries, and life expectancy climbed to 75.3 years, compared to 67 years in 1980.
Topic:
Development, Economics, Health, and Human Welfare
Political Geography:
China

14. Aid procurement and the development of local industry: A question for Africa

Author:
Christine Zhang and Jeffrey Gutman
Publication Date:
06-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Economic development is often tied to the evolution of local industry. One way to assess a country’s emergence as a major player in the global economy is by examining the ability of its domestic firms to compete on the global market. Public procurement—the purchase of goods, works, and services by governments—represents a significant portion of this market, making up an estimated average of 15 to 30 percent of a country’s GDP. Procurement in the developing world is especially noteworthy, since large projects are often partially or wholly financed by external donors such as the World Bank and other international financial institutions (IFIs), which encourage developing country governments to internationally advertise the goods, works, or services they require and to select the most competitive bid they receive. Yet the role of IFI-funded procurement in the emergence of global markets, particularly for and among developing countries, is seldom a topic of empirical study, despite its linkages to global growth.
Topic:
Development, Economics, Emerging Markets, World Bank, and Developing World
Political Geography:
Global Focus

15. Accessibility and effectiveness of donor disclosure policies when disclosure clouds transparency

Author:
Jeffrey Gutman and Claire Horton
Publication Date:
05-2015
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Although the progress of the last decade in the disclosure of aid information has been unprecedented, the ultimate impact of that disclosure is dependent on the specific type of information being disclosed and its accessibility by those who can make use of it. What is evident is that there remains a critical gap, especially when it comes to the timely and accessible disclosure of information during project implementation. If the donor community is sincere in wanting to effectively engage stakeholders, not just during project preparation but throughout the project’s implementation, then it is essential that this gap be filled. Until this is addressed, the promise and potential of transparency and its impact on the governance of aid remain unfulfilled. There has been significant progress in transparency and the accessibility of aid information with regard to the upstream aspects of project design, including project identification, project appraisal, and safeguards. There has also been progress in the reporting of what aid projects have achieved and their impacts after completion. What is still less evident, though, is the transparency of information during the course of project implementation. This critical period—when even the best designed projects can go wrong—has been a relative foundling in terms of available timely information on how a project is progressing, what changes have been made to contract terms and amounts, and whether projects are being executed in accordance with their design and safeguard specifications, leaving a major governance gap in monitoring aid.
Topic:
Development, Humanitarian Aid, Reform, and Budget
Political Geography:
Global Focus

16. A High-Carbon Partnership? Chinese-Latin American Relations in a Carbon-Constrained World

Author:
Timmons Roberts and Guy Edwards
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
China's rapidly increasing investment, trade and loans in Latin America may be entrenching high-carbon development pathways in the region, a trend scarcely mentioned in policy circles. High-carbon activities include the extraction of fossil fuels and other natural resources, expansion of large-scale agriculture and the energy-intensive stages of processing natural resources into intermediate goods. This paper addresses three examples, including Chinese investments in Venezuela's oil sector and a Costa Rican oil refinery, and Chinese investment in and purchases of Brazilian soybeans. We pose the question of whether there is a tie between China's role in opening up vast resources in Latin America and the way those nations make national climate policy and how they behave at the United Nations Framework Convention on Climate Change (UNFCCC) negotiations. We focus on the period between the 2009 Copenhagen round of negotiations and the run-up to the Paris negotiations scheduled for 2015, when the UNFCCC will attempt to finalize a successor agreement to the Kyoto Protocol.
Topic:
Agriculture, Development, International Trade and Finance, Oil, Natural Resources, and Foreign Direct Investment
Political Geography:
China and Latin America

17. Promoting Inclusive Growth in Arab Countries: Rural and Regional Development and Inequality in Tunisia

Author:
Mongi Boughzala and Mohamed Tlili Hamdi
Publication Date:
02-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Regional disparities and inequality between the rural and the urban areas in Tunisia have been persistently large and perceived as a big injustice. The main regions that did not receive an equitable share from the country's economic growth, as compared to the coastal regions that are highly urbanized, are the predominantly rural western regions. Their youth often have to migrate to the cities to look for work and most of them end up with low-paying and frustrating jobs in the informal sector. The more educated among them face a very uncertain outlook and the highest rate of unemployment. This bias is strongest for female workers and university graduates living in the poor rural regions. The purpose of this paper is to study the underlying causes and factors of these disparities and to discuss policies and measures that may allow these regions to benefit from faster and more inclusive growth.
Topic:
Democratization, Development, Poverty, and Social Stratification
Political Geography:
Africa, Arabia, and Tunisia

18. Jordan: The Geopolitical Service Provider

Author:
Emmanuel Comolet
Publication Date:
02-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Jordan is in the eye of the Arab cyclone. It remains stable while surrounded by chaotic political situations in Syria, Iraq, Palestine and the Sinai Peninsula. Jordan has not experienced the massive demonstrations aimed at regime change that have been seen elsewhere in the region, and its relative stability has enabled it to cash in on the geo-political services it provides. These services include: hosting refugees from Palestine, Iraq or Syria; remaining a reliable ally for many international powers; featuring a strong army that plays a stabilizing role in the region; serving as an intermediary when neighboring countries need a host or a dealmaker; and providing qualified Jordanian workers to fill open vacancies for companies and countries, especially in the Gulf. The current stability in Jordan matches well its historic capacity to resist and adapt to shocks. However, the contemporary situation of the labor market reveals that the weaknesses observed in the countries having experienced revolutions (e.g., Tunisia and Egypt) are also present in Jordan; labor market participation is low with very few women active, and the unemployment rate of educated young people is worrisome. Both the number of Jordanians working abroad and the number of migrant workers in Jordan show the discrepancy between demand and supply of labor in Jordan. This could become problematic, since the economic situation has been worsening, notably with fewer public jobs available. Hence there is a need for international donors to keep supporting Jordan in a difficult regional environment, for the government of Jordan to wittily manage the balance between Transjordanians and West Bankers in the near future and for new workers to alter their expectations in searching for opportunities outside the public sector.
Topic:
Conflict Resolution, Political Violence, Democratization, Armed Struggle, and Counterinsurgency
Political Geography:
Iraq, America, Middle East, Arabia, Syria, and Tunisia

19. Supporting The Internet as a Platform for International Trade

Author:
Joshua Meltzer
Publication Date:
02-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper is about the potential of the Internet as a platform for international trade. A traditional understanding of the impact of the Internet on commerce is derived from the dot.com experience of the 1990s, where Internet companies such as Pets.com and Amazon sold goods online. Since then, the impact of the Internet on commerce has grown and changed. Certainly, the ability to sell goods online remains important. However, the key development is that the Internet is no longer only a digital storefront. Instead, the Internet as described in this working paper is a platform for businesses to sell to customers domestically and overseas, and is a business input that increases productivity and the ability of businesses to compete. Understanding the Internet as a platform for trade highlights its broad economic potential. It emphasizes how the commercial opportunities are no longer limited to Internet companies, but are now available for businesses in all sectors of the economy, from manufacturing to services. Moreover, the global nature of the Internet means that these opportunities are no longer limited to domestic markets, but are embraced wherever Internet access is available.
Topic:
Economics, International Trade and Finance, Markets, Science and Technology, and Communications
Political Geography:
Africa, United States, and Europe

20. Designing Youth Employment Policies in Egypt

Author:
Akira Murata
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The paper uses a discrete choice experiment (DCE) to elicit job preferences among youth, and analyzes survey data collected from engineering students at 10 universities in six cities in Egypt during the period of July through October 2013. For a comparative analysis, the survey was also conducted at eight universities in five cities in Indonesia, which is one of the nations in Asia with a Muslim-majority population that faces the same demographic issue. The findings of this research will contribute to building a foundation for designing youth employment policies in Egypt. The most obvious findings to emerge from this study are that: the public-private sector wage differentials must be narrowed; better benefits must accompany private sector employment (particularly support for continuing education, upgrading qualifications, and health insurance); and good IT infrastructure matters. Taken together, these steps could significantly contribute to an increase in the rates of a private sector employment among young Egyptian job seekers, even in the case of continued high public sector wages.
Topic:
Conflict Prevention, Economics, International Trade and Finance, Islam, Labor Issues, and Youth Culture
Political Geography:
Africa, America, and Arabia

21. Improving Regional and Rural Development for Inclusive Growth in Egypt

Author:
Hafez Ghanem
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper examines how economic growth in Egypt can be made more inclusive through a focus on rural development and reducing regional disparities. Nearly all of the extremely poor in Egypt live in rural areas and 83 percent of them live in Upper Egypt. The youth in those rural areas feel particularly excluded.
Topic:
Agriculture, Development, Economics, and Poverty
Political Geography:
Africa and Arabia

22. Egypt's Difficult Transition: Why the International Community Must Stay Economically Engaged

Author:
Hafez Ghanem
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper presents a political-economy analysis of the Egyptian transition experience from the fall of President Hosni Mubarak in February 2011 until the end of 2013, and considers options for the future. Establishing a stable democracy in a country with weak institutions and no democratic culture will take years or even decades. With the benefit of hindsight, most observers were too optimistic in 2011 when they predicted that the “Arab Spring” would quickly lead to democracy. They are probably too pessimistic today when they declare the failure of Egypt's democratic transition. The millions of Egyptians who swarmed into Tahrir Square in January 2011 demanding that Mubarak step down, and then again in June 2013 asking for the overthrow of President Mohammed Morsi, have learned how to use “people power.” A wall of fear has been broken, and it would be difficult for another autocratic regime to succeed in ruling Egypt for an extended period of time.
Topic:
Democratization, Development, Islam, and Political Economy
Political Geography:
Arabia, North Africa, and Egypt

23. Do Trends in U.S. Inequality Matter for Norms of Global Governance? Concepts and Empirics for Debate

Author:
Carol Graham
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The United States has long been viewed as the "land of opportunity," where those who work hard get ahead. Belief in this feature of American national identity has persisted even though inequality has been rising for de¬cades. In recent years, the trend toward extremes of income and wealth has accelerated significantly, owing to demographic shifts, the skills bias of the economy and fiscal policy. From 1997 to 2007, the share of income accru¬ing to the top 1 percent of U.S. households increased by 13.5 percentage points, which is equivalent to shifting $1.1 trillion in total annual income to this group - more than the total income of the bottom 40 percent of households. The precise impact of inequality on individual well-being remains controversial, partly because of the complex nature of the metrics needed to gauge it accurately, but also because why it matters depends on what it signals. If inequality is perceived to be the result of just reward for individual effort, then it can be a constructive signal of future opportunities. However, if it is perceived to be the result of an unfair system that rewards a privileged few, inequality can undermine incentives to work hard and invest in the future. In this sense, current U.S. trends have been largely destructive. Economic mobility, for example, has declined in recent decades and is now lower than in many other industrialized countries. There is also a strong intergenerational income correlation (about 0.5) in the U.S.; children of parents who earn 50 percent more than the average are likely to earn 25 percent above the average of their generation. In a world in which individuals' fates are increasingly linked and effective gover¬nance depends on some kind of consensus on social and distributive justice norms, growing income differentials in one country - especially one that has long served as a beacon of economic opportunity - can affect behavior elsewhere, both in terms of investments in education and the labor market and the propensity to protest. More generally, declining economic mobility in the U.S. could undermine confidence in the principles of market econo¬mies and democratic governance that America has espoused for decades - principles that are fundamental to many countries' development strategies.
Topic:
Economics, Poverty, Social Stratification, and Labor Issues
Political Geography:
United States and Germany

24. The Wisdom of Crowd-Funders: What Motivates Cross-Border Private Development Aid?

Author:
Homi Kharas and Raj M. Desai
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The rapid growth in crowd-funded private development aid allows an examination of the preferences of philanthropic individuals with respect to international causes. Using survival analysis, we analyze the rate at which loan requests are funded through an internet-based nonprofit organization that bundles contributions from individuals and transfers them as loans to borrowers in developing countries. We find little evidence for the view that crowd-funders behave as either official aid donors or as selfish aid-givers. Rather, our results show that private aid contributions are motivated by associational communities that link citizens in donor countries to those in recipient countries - in particular, through migrant and diaspora networks - and that, as a result, their giving may be considered a complement to official aid.
Topic:
Development, Non-Governmental Organization, Foreign Aid, and Foreign Direct Investment
Political Geography:
United States

25. Seven Million Lives Saved: Under-5 Mortality Since the Launch of the Millennium Development Goals

Author:
John McArthur
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
To what extent have developing countries' patterns in reducing under-5 mortality rates (U5MR) changed since the advent of the Millennium Development Goals (MDGs)? This paper investigates that question across multiple time horizons, with attention to the fact that countries' progress had already begun to accelerate during the late 1990s compared to the early 1990s. The paper gives special consideration to countries the MDGs were primarily intended to support, including initially “Off Track” and low-income countries. Although only 21 percent of originally Off Track countries and 34 percent of originally low-income countries are now on a path to achieve the MDG target by 2015, at least 80 percent of each group has seen accelerated progress since 2001. Approximately 90 percent of countries in sub-Saharan Africa have accelerated. Most importantly, regression analysis indicates that cross-country trends since 2000 differ considerably from previous decades. The years since the launch of the MDGs include the first extended period in at least four decades during which rates of U5MR decline have not been negatively correlated with U5MR levels. Compared to a conservative counterfactual trend from 1996 to 2001, at least 7.5 million additional children's lives are estimated to have been saved between 2002 and 2013. The results suggest that much of the greatest structural progress has been achieved by countries not likely to achieve the formal MDG targets, even if their progress might be linked to the pursuit of those targets. Implications are considered for setting U5MR targets through to 2030.
Topic:
Development, Health, Human Welfare, and Health Care Policy
Political Geography:
Africa

26. Fertilizing Growth: Agricultural Inputs and Their Effects in Economic Development

Author:
John McArthur and Gordon C. McCord
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper uses cross-country panel data to estimate the agronomic inputs that lead to cereal yield improvements and the consequences for developing countries' processes of structural change. The results suggest a clear role for fertilizer, modern seeds and water in boosting yields. It then estimates empirical links in developing economies between increased agricultural yields and economic growth; in particular, the spillover effect from yield growth to declines of labor share in agriculture and increases of non-agricultural value added per capita. The identification strategy for the effect of fertilizer includes a novel instrumental variable that exploits variation in global fertilizer price, interacted with the inverse distance between each country's agriculturally weighted centroid and the nearest nitrogen fertilizer production facility. Results suggest that a half ton increase in staple yields (equal to the within-country standard deviation) generates a 13 to 20 percent higher GDP per capita, a 3.3 to 3.9 percentage point lower labor share in agriculture five years later, and approximately 20 percent higher non-agricultural value added per worker a decade later. The results suggest a strong role for agricultural productivity as a driver of structural change.
Topic:
Agriculture, Economics, and Labor Issues

27. Happy Neighbors Are Good For You, Wealthy Ones Are Not: Some Insights From a First Study of Well-Being in Mongolia

Author:
Carol Graham, Tuugi Chuluun, and Sarandavaa Myanganbuu
Publication Date:
08-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
We conducted the first extensive study of well-being in Mongolia, a country that has experienced a dramatic transition in both its economy and polity in recent decades. We found that most of the standard determinants of well-being were no different in Mongolia than they are for most countries in the world, with individual income, health, marital status and exercise all positively associated with life satisfaction; the same variables had positive but weaker correlations with our hedonic well-being measure. As in many other contexts, we found that, controlling for individual income, average community income was negatively correlated with life satisfaction, although not with hedonic well-being. This is not surprising, as comparison effects are more likely to influence overall life evaluations than they are daily (or weekly) moods and experience. In contrast, average community-level well-being—in both evaluative and hedonic dimensions—was positively associated with individual well-being. While being around wealthier people may generate envy among some, being around happier people has positive externalities (except, perhaps, for the very unhappy). Thus, at least in Mongolia, wealthier neighbors are not necessarily g ood for you, but happier ones surely are.
Topic:
Human Welfare
Political Geography:
Mongolia

28. Adjusting Assistance to the 21st Century: A Revised Agenda for Foreign Assistance Reform

Author:
George Ingram
Publication Date:
07-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
A decade of reform of U.S. development assistance programs has brought significant and important improvement in the nature and delivery of U.S. assistance. But the 21st century world is witnessing constant change in development. More developing countries are ascending to middle income status and gaining the capability, resources, and desire to finance and direct their own development. The rapid expansion of private capital flows, remittances, and domestic resources has significantly reduced the relative role of donor assistance in financing development. Donors are becoming more numerous and varied. There is growing recognition that the private sector, both nationally and internationally, is an indispensable component of sustainable development.
Topic:
Development, Foreign Aid, and Reform
Political Geography:
United States

29. A New Agenda for Education in Fragile States

Author:
Rebecca Winthrop and Elena Matsui
Publication Date:
08-2013
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
In the 13 years since the dawn of the new millennium, significant progress has been made in addressing some of the world's most important problems. One billion fewer people live in extreme poverty, 3 million children's lives are saved annually and 610 million children in developing countries are enrolled in primary school, more than ever before. However, this progress has not been shared evenly around the globe. Populations affected by weak systems of governance and that suffer violence and disasters have systematically been left behind. They are much less likely to enjoy progress vis-à-vis any of the United Nations' Millennium Development Goals (MDGs), which include eradicating extreme poverty and hunger, improving children and women's health, and enrolling children in school. No country classified as a “fragile state,” for example, has met all eight of the MDGs. Children born in low-income, conflict-affected countries are twice as likely to die before the age of five years, twice as likely to lack access to clean water and more than three times as likely to not attend school than children living in peaceful, low-income countries. People living in poverty, many of whom are affected by conflict, are more vulnerable to the effects of climate change and disasters. Children are especially affected, and those from the poorest families are up to 10 times more likely to bear the brunt of environmental disasters linked to climate change.
Topic:
Conflict Resolution, Development, International Political Economy, Peace Studies, Foreign Aid, and Peacekeeping
Political Geography:
United Nations

30. Trading Up: The Case for an International Carbon Market Reserve to Reduce Volatility at the Limits in 2020 and Beyond

Author:
Nigel Purvis, Abigail Jones, and Cecilia Springer
Publication Date:
12-2013
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Climate policymakers face major challenges when designing future global carbon markets—those involving carbon transactions between “buyers” (predominantly developed countries to date) and “sellers” (mainly developing countries, particularly least developed nations). On one hand, domestic carbon markets are currently spreading and linking rapidly around the world. By 2015, based on already announced policies, carbon markets will cover almost 3 billion people and the lion's share of the world's economy. Because carbon markets, and carbon pricing instruments in general, present the most flexible mechanism to create low-carbon economies, carbon markets are likely to play a major role in future efforts to confront climate change—perhaps on the order of shouldering 50 percent of the solution.
Topic:
Climate Change, Energy Policy, Globalization, Oil, and Natural Resources

31. Key Issues on European Banking Union: Trade-Offs and Some Recommendations

Author:
Douglas J. Elliott
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
European leaders have committed to moving toward a banking union, in which bank regulation and supervision, deposit guarantees, and the handling of troubled banks will be integrated across at least the euro area and possibly across the wider European Union. This is quite positive for two reasons. Most immediately, it will help solve the euro crisis by weakening the link between debt-burdened governments and troubled banks, where each side has added to the woes of the other. In the longer run, it will make the “single market” in European banking substantially more effective.
Topic:
Debt, Economics, International Trade and Finance, Markets, Monetary Policy, and Financial Crisis
Political Geography:
Europe

32. The Myanmar Economy: Tough Choices

Author:
Lex Rieffel
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The new Government of Myanmar has astonished the world since it took office at the end of March 2011 by the pace and scope of policy changes it has introduced in a country that has underperformed most other Asian countries for decades. Not a single analyst inside or outside Myanmar before President Thein Sein’s inaugural address predicted the changes that many now label “breathtaking.” The global policy community and the media have focused heavily on the political changes and challenges, giving less attention to the economic changes and challenges than they probably deserve. This paper focuses on 21 high-priority economic issues facing the Thein Sein administration in mid-2012.
Topic:
Civil Society, Democratization, Diplomacy, Human Rights, and Sanctions
Political Geography:
Southeast Asia and Myanmar

33. Scaling Up Development Interventions: A Review of UNDP's Country Program in Tajikistan

Author:
Johannes F. Linn
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This study reports on a review of the United Nations Development Programmed' s (UNDP) country program in Tajikistan in terms of how it addresses the opportunities and challenges to scale up successful development interventions. It assesses to what extent the UNDP pursued well-articulated scaling up pathways in its overall program and in specific project areas, including its communities development program, its AIDS/HIV, tubercu¬losis and anti-malaria program, its support for aid coordination, its disaster risk management program and its energy and environment program. The study concludes that UNDP has incorporated key elements of a scaling up approach in its Tajikistan program, but also identifies additional ways to develop a more systematic approach to scaling up. This study is part of a broader program of research and analysis carried out under the auspices of the Brookings Global Economy and Development Program.
Topic:
Development, United Nations, and Foreign Aid
Political Geography:
Central Asia and Tajikistan

34. Global Governance Audit

Author:
Hakan Altinay
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
We frequently treat the changing constellation that has come to be referred to as global governance as a lackluster fait accompli. Nobody has masterminded it. Nobody is really in charge. Almost everybody has reasons to be unhappy about what they view as its current suboptimal state. As such, global governance is not an easy phenomenon to assess or audit. The benchmarks and scales to be used are not obvious. Yet an audit attempt is nevertheless necessary, if for no other reason than to start to form a deliberated assessment, to develop some benchmarks, and to refine our questions for the future.
Topic:
Economics, Globalization, and Governance
Political Geography:
China and Europe

35. Dynamics of Inflation "Herding": Decoding India's Inflationary Process

Author:
Urjit R. Patel and Gangadhar Darbha
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Compared to immediately preceding years, that is, its own recent history, India's inflation became unhinged (thereby reversing creditable performance) from as far back as 2006. The paper puts forward an empirical framework to analyze the time series and cross-sectional dynamics of inflation in India using a large panel of disaggregated sector prices for the time period, 1994/95 to 2010/11. This allows us to rigorously explore issues that have been, at best, loosely posed in policy debates such as diffusion or comovement of inflation across sectors, role of common and idiosyncratic factors in explaining variation, persistence, importance of food and energy price changes to the overall inflation process, and contrast the recent experience with the past. We find, interalia, that the current period of high inflation is more cross-sectionally diffused, and driven by increasingly persistent common factors in non-food and non-energy sectors compared to that in the 1990s; this is likely to make it more difficult for anti-inflationary policy to gain traction this time round compared to the past. The paper has also introduced a novel measure of inflation, viz., Pure Inflation Gauges (PIGs) in the Indian context by decomposing price movements into those on account of: (1) aggregate shocks that have equiproportional effects on all sector prices; (2) aggregated relative price effects; and (3) sector-specific and idiosyncratic shocks. If PIGs, in conjunction with our other findings, for example, on persistence had been used as a measure of underlying (pure) inflationary pressures, the monetary authorities may not have been sanguine regarding the timeliness of initiating anti-inflationary policies.
Topic:
Development, Economics, Industrial Policy, International Trade and Finance, and Monetary Policy
Political Geography:
South Asia and India

36. Can Producer Associations Make Agriculture Sustainable? Evidence from Farmer Development Centers in India

Author:
Raj M. Desai and Shareen Joshi
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper evaluates the impact of the Self- Employed Women's Association's (SEWA) farmer development center (FDC) initiative across five farming districts in Gujarat, India. The initiative provided a mix of training, information provisions, access to farming inputs, risk mitigation, and output. Controlling for a range of individual-specific, household, and village level factors, we find that SEWA membership primarily raised awareness of available opportunities among its participants, linked women to the financial sector and to diversified employment opportunities, including non-farm work. There is also evidence that the program's impact varied depending on the participants' socio-economic background. The poorest members experienced higher farm and non-farm incomes, increased food consumption, improved household and farm productivity, more self-employment opportunities, a greater likelihood of opening a bank account, higher crop harvests, and greater food security. These estimates suggest that the major comparative advantage of FDCs lies in improving access to credit and in expanding access to useful information.
Topic:
Agriculture, Development, Economics, International Trade and Finance, and Markets
Political Geography:
India and Gujarat

37. Taking Development Activities to Scale in Fragile and Low Capacity Environments

Author:
Johannes F. Linn and Laurence Chandy
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Fragile states present one of the greatest challenges to global development and poverty reduction. Despite much new learning that has emerged from within the development community in recent years, understanding of how to address fragility remains modest. There is growing recognition that donor engagement in fragile states must look beyond the confines of the traditional aid effectiveness agenda if it is to achieve its intended objectives, which include state building, meeting the needs of citizens, and managing risk more effectively. Current approaches are constrained by relying heavily on small-scale interventions, are weakened by poor coordination and volatility, and struggle to promote an appropriate role for the recipient state.</p
Topic:
Development, Poverty, and Foreign Aid

38. Benchmarking Against Progress: An Assessment of Australia's Aid Effectiveness

Author:
Laurence Chandy
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Is Australia's aid program effective? Measuring the effectiveness of aid is no easy feat. For a start, there is uncertainty about what aid is trying to achieve. Even seemingly straightforward objectives, like poverty reduction, throw up a range of questions as to what precisely ought to be measured. For instance, how should one balance the provision of temporary relief to those in need with catalyzing permanent transformation in people's lives (Barder, 2009)? Second, it is notoriously difficult to isolate the effect of a single aid program from other factors. Aid is delivered in an environment of enormous complexity where all manner of other events shape outcomes, including actions by recipient governments, aid from other countries, non-aid flows, and the performance of the global economy. To accurately attribute impact to aid therefore requires a thorough understanding of the setting in which aid is given. Third, the effects of aid are not always immediate or straightforward. For instance, improvements in people's skills or the performance of institutions may manifest gradually. Measurements of what aid achieves must be sensitive to the different ways change is brought about (Woolcock et al., 2009).
Topic:
Economics, Globalization, Humanitarian Aid, Poverty, and Foreign Aid
Political Geography:
Australia/Pacific

39. Decarbonization Strategies: How Much, How, Where and Who Pays for Δ ≤ 2 ̊ C?

Author:
Urjit R. Patel
Publication Date:
03-2010
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
At a panel discussion at the London School of Economics (LSE) in early October, I said in my concluding remarks that while I was not optimistic about the likelihood of a robust global climate deal at Copenhagen, “there seemed to be a strong consensus in world capitals for a weak agreement.” Well, I was more or less right. We ended up with something rather ineffectual: a less than unanimous declaratory announcement (of feeble aims), although they call it an accord; and, in any case, it is neither a treaty nor even a binding commitment underpinned in law. In fact, domestic politics and the recession have probably put paid to hopes for a precise emissions quota-focused treaty in the near term. At any rate, a legally binding multilateral document is hardly sufficient: emission outcomes even under the formally binding Kyoto Protocol with a built-in enforcement mechanism are widely perceived to have been inadequate.
Topic:
Climate Change, Environment, Globalization, International Cooperation, and Treaties and Agreements
Political Geography:
London

40. The Case for Global Civics

Author:
Hakan Altinay
Publication Date:
03-2010
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
“Civics” often refers to the familiar constellation of rights and responsibilities emanating from citizenship in a nation-state. But what about global civics? Would this be feasible—or even desirable?
Topic:
International Relations, Civil Society, Economics, and International Cooperation

41. Does Fairness Matter?

Author:
Hakan Altinay
Publication Date:
04-2010
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Worldwide, there has been a recent increase in expressions of cynicism. We are reminded that all power is hard power, and that being loved or respected is no substitute for being feared. The great power game of nations always continues, we are forewarned, even when a higher goal or rhetoric is evoked. Superpowers are selfish, arbitrary, and dangerous nations, and they should not be embarrassed to be so and not feel constrained by international legitimacy and laws. We are cautioned against assuming that the rise of the world's emerging powers is doing anything to the status of United States as the sole superpower. Naturally, it would be a folly to think that global public opinion is in effect a “second superpower,” or even a crucial factor. Such concerns are the Lilliputians binding an unsuspecting Gulliver. Anyone harboring naïve views needs to be told that good intentions are at best a distraction and a nuisance, and at worst a recipe for disaster, given their imprudence. Cynics prefer to be unconcerned about the achievements of transnational normative action, such as abolishing the slave trade or establishing the International Criminal Court.
Topic:
International Relations, Emerging Markets, and Governance
Political Geography:
Russia, China, India, and Brazil

42. A New Strategy to Leverage Business for International Development

Author:
Robert Mosbacher, Jr.
Publication Date:
05-2010
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
To tackle global poverty, it is essential to craft a new and dynamic approach to economic development that refl ects the realities of a 21st century global economy and incorporates the participation of a wide variety of new players, particularly from the private sector. While investment, trade and innovation all represent basic components of building healthy economies, this paper focuses primarily on strategies to increase both in-country and international private capital investment in order to create jobs. To that end, it concentrates on two areas: strengthening and reforming the existing structures, coordinating mechanisms and policies that support U. S. economic development efforts; and improving public-private partnership models to promote broader fi nancing to local businesses, greater human capital support and technical assistance and improved physical and ICT infrastructure.
Topic:
Foreign Policy, Development, Economics, Emerging Markets, Poverty, and Third World
Political Geography:
United States

43. Scaling Up the Fight Against Rural Poverty

Author:
Johannes F. Linn, Richard Kohl, Homi Kharas, Arntraud Hartmann, and Barbara Massler
Publication Date:
10-2010
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The International Fund for Agricultural Development (IFAD) has for many years stressed innovation, knowledge and scaling up as essential ingredients of its strategy to combat rural poverty in developing countries. This institutional review of IFAD's approach to scaling up is the first of its kind: A team of development experts were funded by a small grant from IFAD to assess IFAD's track record in scaling up successful interventions, its operational policies and processes, instruments, resources and incentives, and to provide recommendations to management for how to turn IFAD into a scaling-up institution. Beyond IFAD, this institutional scaling up review is a pilot exercise that can serve as an example for other development institutions.
Topic:
Agriculture, Development, Humanitarian Aid, Poverty, and Food

44. Does Fairness Matter in Global Governance?

Author:
Hakan Altinay
Publication Date:
10-2010
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Worldwide, there has been a recent increase in expressions of cynicism. We are reminded that all power is hard power, and that being loved or respected is no substitute for being feared. The great power game of nations always continues, we are forewarned, even when a higher goal or rhetoric is evoked. Superpowers are selfish, arbitrary, and dangerous nations, and they should not be embarrassed to be so and not feel constrained by international legitimacy and laws. We are cautioned against assuming that the rise of the world's emerging powers is doing anything to the status of the United States as the sole superpower. Naturally, it would be a folly to think that global public opinion is, in effect, a “second superpower,” or is even a crucial factor. Such concerns are akin to the Lilliputians binding an unsuspecting Gulliver. Anyone harboring naive views needs to be told that good intentions are, at best, a distraction and a nuisance and, at worst, a recipe for disaster, given their imprudence. Cynics prefer to be unconcerned about the achievements of transnational normative actions, such as abolishing the slave trade or establishing the International Criminal Court.
Topic:
Globalization, Post Colonialism, Power Politics, and Governance
Political Geography:
United States

45. A Case Study of Aid Effectiveness in Kenya: Volatility and Fragmentation of Foreign Aid, with a Focus on Health

Author:
Francis M. Mwega
Publication Date:
01-2009
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
In September 2000, 149 heads of state and government endorsed the Millennium Development Goals (MDGs). With this endorsement they set themselves eight goals to be reached by 2015 (from the 1990 base), foremost of which is to halve the proportion of the world's people who were absolutely poor. The MDGs provide a departure from past approaches in addressing poverty. By focusing attention on a core set of interrelated goals and measurable targets, it is now easier to track progress and measure the impact of development interventions.
Topic:
Development and Humanitarian Aid
Political Geography:
Kenya and Africa

46. Financial Globalization and Economic Policies

Author:
Shang-Jin Wei, Eswar Prasad, M. Ayhan Kose, and Kenneth Rogoff
Publication Date:
04-2009
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
We review the large literature on various economic policies that could help developing economies effectively manage the process of financial globalization. Our central findings indicate that policies promoting financial sector development, institutional quality and trade openness appear to help developing countries derive the benefits of globalization. Similarly, sound macroeconomic policies are an important prerequisite for ensuring that financial integration is beneficial. However, our analysis also suggests that the relationship between financial integration and economic policies is a complex one and that there are unavoidable tensions inherent in evaluating the risks and benefits associated with financial globalization. In light of these tensions, structural and macroeconomic policies often need to be tailored to take into account country specific circumstances to improve the risk-benefit tradeoffs of financial integration. Ultimately, it is essential to see financial integration not just as an isolated policy goal but as part of a broader package of reforms and supportive macro- economic policies.
Topic:
Development, Economics, Globalization, and Political Economy

47. Thresholds in the Process of International Financial Integration

Author:
Eswar Prasad, M. Ayhan Kose, and Ashley D. Taylor
Publication Date:
05-2009
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The financial crisis has re-ignited the fierce debate about the merits of financial globalization and its implications for growth, especially for developing countries. The empirical literature has not been able to conclusively establish the presumed growth benefits of financial integration. Indeed, a new literature proposes that the indirect benefits of financial integration may be more important than the traditional financing channel emphasized in previous analyses. A major complication, however, is that there seem to be certain “threshold” levels of financial and institutional development that an economy needs to attain before it can derive the indirect benefits and reduce the risks of financial openness. In this paper, we develop a unified empirical framework for characterizing such threshold conditions. We find that there are clearly identifiable thresholds in variables such as financial depth and institutional quality—the cost-benefit trade- off from financial openness improves significantly once these threshold conditions are satisfied. We also find that the thresholds are lower for foreign direct investment and portfolio equity liabilities compared to those for debt liabilities.
Topic:
Development, Economics, Globalization, International Political Economy, and International Trade and Finance

48. Monetary Policy Challenges for Emerging Market Economies

Author:
Ravi Kanbur, Eswar Prasad, and Gill Hammond
Publication Date:
08-2009
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper introduces a significant collection of papers on monetary policy in emerging market economies, written by leading analysts and policymakers. Does existing economic theory provide lessons that are pertinent for designing effective monetary policy frameworks in emerging markets? What can be learnt from cross-country studies and from experiences of individual countries that have adopted different approaches? While country-specific circumstances and initial conditions matter a great deal in formulating suitable frameworks, are there clear general principles that can serve as a guide in this process? These are among the issues addressed in the dialogue between academics and policymakers represented in the volume. In this paper, we provide an overview of the main issues, linking them to broader debates in the academic literature as well as an assessment of how individual countries have chosen to respond to specific policy challenges and what the consequences have been. We discuss many controversies where there are still sharp differences in views between and amongst theorists and practitioners. We also delineate a few key analytical issues where there is still a yawning gap between theory and practice. In the process, we set out a broad agenda for further re- search in this area.
Topic:
Economics, Emerging Markets, Markets, and Monetary Policy

49. Developing Countries, Dispute Settlement, and the Advisory Centre on WTO Law

Author:
Rachel McCulloch and Chad P. Bown
Publication Date:
12-2009
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Critical appraisals of the current and potential benefits from developing country engagement in the WTO focus mainly on the Doha Round of negotiations. This paper examines a different aspect of developing country participation in the WTO: use of the WTO dispute settlement system to enforce foreign market access rights already negotiated in earlier rounds of multilateral negotiations. We examine data on developing country use from 1995 through 2008 of the WTO Dispute Settlement Understanding (DSU) to enforce foreign market access. The data reveal three notable trends: developing countries' sustained rate of self-enforcement actions despite declining use of the DSU by developed countries, developing countries' increased use of the DSU to self-enforce their access to the markets of developing as well as developed country markets, and the prevalence of disputes targeting highly observable causes of lost foreign market access, such as antidumping, countervailing duties, and safeguards. The paper also examines how introduction of the Advisory Centre on WTO Law (ACWL) into the WTO system in 2001 has affected developing countries' use of the DSU to self-enforce their foreign market access rights. A first pass at the data indicates that developing country use of the ACWL mirrors their use of the DSU more broadly; the ACWL has had little effect in terms of introducing new countries to DSU self-enforcement. A closer look at the data reveals evidence on at least three channels through which the ACWL may be enhancing developing countries' ability to self-enforce foreign market access: increased initiation of sole-complainant cases, more extensive pursuit of the DSU legal process for any given case, and initiation of disputes over smaller values of lost trade.
Topic:
Development, Economics, International Trade and Finance, and Markets

50. Financial Globalization and Economic Policies

Author:
Eswar Prasad, Kenneth Rogoff, M. Ayhan Kose, and Shang-Jin Wei
Publication Date:
04-2009
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
We review the large literature on various economic policies that could help developing economies effectively manage the process of financial globalization. Our central findings indicate that policies promoting financial sector development, institutional quality and trade openness appear to help developing countries derive the benefits of globalization. Similarly, sound macroeconomic policies are an important prerequisite for ensuring that financial integration is beneficial. However, our analysis also suggests that the relationship between financial integration and economic policies is a complex one and that there are unavoidable tensions inherent in evaluating the risks and benefits associated with financial globalization. In light of these tensions, structural and macroeconomic policies often need to be tailored to take into account country specific circumstances to improve the risk-benefit tradeoffs of financial integration. Ultimately, it is essential to see financial integration not just as an isolated policy goal but as part of a broader package of reforms and supportive macroeconomic policies.
Topic:
Development, Economics, Globalization, and International Trade and Finance
Political Geography:
Global Focus