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Begin New Search Topic Development Political Geography Global Focus Content Type Working Paper Publication Year within 10 Years Publication Year within 5 Years

1. (R)evolution? Exploring the Potential of Post-Development Approaches for Reforming Development Cooperation

Author:
Patrick Köllner
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The concept and mainstream approaches of development cooperation (DC) have been criticised since the early beginning of their existence. Post-development (PD) scholars have been criticising international DC since 1990 for both its Western perspective and the lack of reflection on asymmetrical power structures. Since also today DC has to face a variety of criticisms, we perceive PD approaches as a starting point for efforts towards change. We asked (1) to what extent and how elements of post-development approaches are reflected in the current policy initiatives of international DC, and (2) what potential do PD approaches have to reform DC. We analysed three examples: German feminist development policy (FemDP) as a relatively new idea of transformation, the locally led development approach as a long-standing concept and Global Public Investment (GPI) as an approach towards a new concept of international cooperation. By means of a content analysis, four commonly used PD elements were selected and slightly adapted to examine whether and how the three policy initiatives acknowledge PD aspects in order to reform DC: (1) the concept of alternatives to development, (2) pluralism of knowledge and power dynamics, (3) user-centred approaches and a critical stance towards the established scientific discourse and (4) the promotion of grassroots movements and local ownership. We discovered a variation in the use of the different PD elements. Although aspects related to power relations, post-colonial structures and knowledge management are prominent in all three initiatives, elements such as grassroots movements are given less consideration in all three cases. Even though FemDP does not focus on an alternative to development, as defined by PD approaches, it puts a strong emphasis on a transformative approach when it comes to its user-centred empowerment and tackles power imbalances by approaching decolonisation. Subsequently, the efforts of German Development Minister Svenja Schulze do not just describe a rhetorical reorientation but involve actual transformative efforts. However, further implementation efforts need to be analysed. The locally led development approach seems to be a suitable springboard for the inclusion of local knowledge and grassroots movements. Whereas the approach mostly uses descriptions of change as a means to reach its objectives, the GPI concept in particular uses PD elements as a reformative approach, as per the PD definition, putting the objective of the transformation of international public finance in international cooperation at its centre. Valuing PD approaches, we conclude that they do influence public initiatives in one way or another. In the future, if inner-systemic change should become an option, we see the greatest added value when PD scholars succeed in underpinning their approaches with instruments that can be used as tools in DC practice.
Topic:
Development, Public Investment, and Cooperation
Political Geography:
Germany and Global Focus

2. Tax Expenditures in OECD Countries: Findings from the Global Tax Expenditures Database

Author:
Martin Beznoska
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The Global Tax Expenditures Database (https://GTED.net/) collects national reports on tax expenditures for 101 countries for the period from 1990 to the present. Based on these data, the development of tax expenditures in the 38 OECD countries between 1999 and today is examined. A look at the data shows that even in countries with high GDP and comprehensive tax coverage, reporting is often incomplete. For a subset of 16 OECD countries for which (relatively) continuous reporting over the period is available, we look at the development of tax benefits for households and firms. We can show that data availability improves over time. For the development of business tax expenditures, a weakly significant positive trend can be identified in terms of tax revenues foregone, driven mainly by the Netherlands and Ireland. Both countries are known for wanting to strengthen their business location through generous tax expenditures for businesses. Tax expenditures for private households, which are on average higher than the level of tax expenditures for businesses in the countries under review, do not show any significant time trend, even though they were increasingly used to relieve the burden on private households and businesses during the financial crisis of 2008/09. In order to compare tax expenditures between countries and to better assess their effectiveness, regular reporting at the national level, transparent definitions and ideally uniform standards would be helpful. Regular monitoring by a commission of experts could contribute to the consistency and comparability.
Topic:
Development, Business, Tax Systems, and OECD
Political Geography:
Global Focus

3. Structural transformation and international trade: Evidence from the China shock

Author:
Clément Nedoncelle and Julien Wolfersberger
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
How does international trade affect structural transformation in developing countries? We use data on sectoral allocation of labour and value-added in 46 developing economies over the period 1995–2017 and exploit for identification plausibly exogenous variation in manufacturing imports from China. We find that the so-called ‘China shock’ largely slows down the transformation of low- and middle-income economies out of agriculture. In our main specification industrialization decreases by 0.49 per cent on average for each additional per cent of manufacturing imports from China. It highlights a competition effect where exposure to Chinese imports is largely detrimental to structural transformation. These results hold across geographical regions, with a difference in Sub-Saharan Africa, where international trade causes an increase in the size of the services sector.
Topic:
Development, Economies, Trade, Industrialization, and Structural Transformation
Political Geography:
Global Focus

4. Assessment of institutional set-up of results measurement and reporting systems for non-sovereign operations in development finance institutions

Author:
Patrick Mabuza, Francis H. Kemeze, Oluwatoba J. Omotilewa, Mamadou Bah, and Btissam Benkerroum
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Development finance institutions (DFIs) foster sustainable development through financing, advisory services, and technical assistance. They complement public investments in developing and underserved markets to unlock development opportunities and deliver development results. Whereas DFIs’ missions are known among practitioners, their development achievements are often less understood. Consequently, DFIs have developed different results measurement and reporting systems to document the impacts of their interventions. This includes recent efforts to harmonize development impact indicators for results measurement and reporting. However, less is known about methodologies used in development outcomes assessments, or institutional set-ups for measuring and reporting these outcomes. This hampers knowledge on what works or does not work from a development finance perspective, preventing feedback mechanisms for DFIs to learn from prior interventions, mitigate risks, and ultimately improve subsequent interventions. Using a newly developed integration index score of hard versus soft integration of results measurement and reporting systems, and primary and secondary data from eleven such systems within DFIs, this study examines the set-up and effectiveness of different results reporting systems and mechanisms currently in place in DFIs. Findings reveal that although all interviewed DFIs measure anticipated (ex-ante) and ex-post development outcomes, only 27 per cent operate a fully integrated results measurement and reporting system that permits a 360- degree feedback loop for development effectiveness.
Topic:
Development, Finance, and Assessment
Political Geography:
Global Focus

5. Building resilience knowledge for sustainable development: Insights from development studies

Author:
Albert Sanghoon Park
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper explores how the concept of resilience has been used in development studies. Set amidst the rise of resilience in sustainable development, it offers insights for scholars and policy-makers, alike. Sampling 419 resilience-oriented journal articles from 2017–22, it uses Kuhnian paradigms to analyse development knowledge production. This produces three key findings. First is the absence of a coherent resilience paradigm (with shared definitions, problems, and methods) in development studies. Second is its use, instead, by pre-existing paradigms as a theoretical add-on to better address complexity and/or as a new buzzword to repackage prior arguments. Third are latent possibilities for resilience as both a rallying call and siren song in sustainable development. Here, resilience discourses open vital space for development cooperation and climate action. However, its outcomes will depend on whether we can first understand precisely what we talk about when we talk about resilience.
Topic:
Development, Politics, Sustainability, Resilience, and Knowledge Production
Political Geography:
Global Focus

6. Export impact on dividend policy for big Colombian exporting firms, 2006–2014

Author:
Federico Merchan
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper studies the impact of exogenous export demand shocks on firms’ dividend policy using firm specific real exchange rate variation as instrumental variable. IV exclusion restriction is plausibly satisfied because real exchange rate shocks were unanticipated -partly explained because of international oil price fluctuation-, and first stage results confirm relevance condition fulfillment. The results indicate that big private Colombian exporting firms decree dividends as a way to mitigate the agency cost generated by exogeneous exports variation via higher free cash flow and cash flow volatility, especially in poor managerial quality firms. Evidence supports agency cost theory and denies signaling.
Topic:
Development, Emerging Markets, Globalization, International Trade and Finance, and Exports
Political Geography:
Global Focus

7. Mapping Pathways for Peace through the Composition of Official Development Assistance

Author:
Jannie Lilja and Gary Milante
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Stockholm International Peace Research Institute
Abstract:
Mapping the changing composition of official development assistance (ODA) against peace and conflict patterns in recipient countries over time can enhance the understanding of how pathways to peace look like in practice. This working paper presents empirical findings from more comprehensive research into the composition of ODA across aid recipient countries in the period 1990–2020. ODA is broken down into humanitarian, development and peacebuilding aid components. While development assistance is found to dominate across all types of country contexts, and the humanitarian share tends to be larger during conflict, peacebuilding assistance varies by conditions in countries. Post-conflict countries that avoid conflict relapse receive significantly higher shares of peacebuilding aid compared to post-conflict countries that relapse. A ternary graph is introduced to strategically track the composition of the total ODA envelope at the country level during different time periods. The findings suggest that a more effective future deployment of ODA for the advancement of peace and stability is possible.
Topic:
Foreign Policy, Development, Conflict, and Peace
Political Geography:
Global Focus

8. How Pratham Learns While Scaling: A Case Study of Adaptive Design and Evaluation

Author:
Jossie Fahsbender, Siddhant Gokhale, and Michael Walton
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Developing scalable innovations is a central challenge in development. Organizations that succeed in scaling often prioritize measurement, learning, and evaluation, but how this is done is poorly understood. This paper explores the case of Pratham, one of the largest NGOs in primary education and an exceptional learning organization. While Pratham is renowned for its randomized control trial sequence with J-PAL, we underscore this is just one aspect of a wider array of learning activities. These include an iterative process to continuously refine and protocolize solutions as they scale, the use of on-field qualitative insights and quantitative tracking, open feedback channels between the field, state, and central offices, information exchange among content and evaluation teams, and a nationwide assessment of learning levels (ASER). The RCTs were effective because they were embedded within this broader learning process and culture. Pratham learns at three levels: learning to improve children's basic skills, learning as an organization about what does and doesn’t work, and fostering learning by others in the system. Its learning capacity is rooted in deep-seated values and a culture of openness, trust, problem-solving, and the freedom to experiment and learn from failure, inculcated and nurtured by its leadership. Throughout, we use the prism of an Adaptive Evaluation to provide a systematic framework for mirroring and understanding Pratham's organic learning processes (as affirmed by its own leadership). Pratham actively engages with the three main pillars of an Adaptive Evaluation, involving understanding systems, theorizing how to effect change, and iterating its designs. While Pratham’s culture will often not be transferable, the systematic analysis of how Pratham learns can provide a framework for other organizations aspiring to replicate Pratham's success as a learning institution.
Topic:
Development, Economy, Innovation, and Adaptation
Political Geography:
Global Focus

9. Process and Implementation Evaluations: A Primer

Author:
Patricia J. Rogers and Michael Woolcock
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Beyond assessing whether or not interventions have achieved their stated goals, evaluations can also provide greater understanding—in real-time and at completion—about how, where, for whom, over what time frame, and which aspects of an intervention may (or may not) have succeeded, and thus where improvements might be sought. Moreover, to the extent any intervention is only as good as its implementation, evaluations can also help identify where breakdowns in the delivery system may have occurred and spaces wherein frontline implementers were able to find innovative solutions to local (“binding constraint”) problems. Process and implementation evaluations thus serve the vital purpose of jointly promoting accountability and learning, thereby expanding the common perception of evaluations as external instruments of compliance and discipline to internal procedures for promoting partnerships, innovation, and improvement (organizationally or technically). In this chapter, we describe six different types of process and implementation evaluations and describe their respective strengths and weaknesses in various contexts, for various purposes. As part of collective efforts to enhance the effectiveness of all classes of interventions, impact and process evaluations should be regarded as necessary complements.
Topic:
Development, Accountability, and Intervention
Political Geography:
Global Focus

10. Paradigm Shifts in Macrosociology

Author:
Renate Mayntz
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:
This paper looks at changes in macrosociological paradigms for social development that traditionally stretch from the primitive society through the stratified medieval society to the image of a functionally differentiated modern society. Changing the perspective from a systems theoretical view of societies to an actor perspective, I focus on populations of individual actors and organizations as collective actors. Over recent decades, important structural changes in the nature of populations and of organizations have taken place in the Western world. The most important relate to economic globalization and financial internationalization. An increasingly flexible population and narrowly goal-specific organizations produce a situation of societal instability that appears to characterize the present, though its causes reach back half a century.
Topic:
Development, Conflict, Integration, and Financial Globalization
Political Geography:
Global Focus

11. Determinants of Social Cohesion: Cross-Country Evidence

Author:
Yabibal M. Walle
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Noting that few studies to date have investigated the determinants of social cohesion in a comprehensive and systematic manner, this paper examines the macro-level determinants of social cohesion using a panel of up to 92 developing and developed countries for the period 1990–2020. Employing the system GMM dynamic panel data estimator, which addresses endogeneity concerns by means of internal instruments, I find that the levels of education, government size, globalisation, and economic development have significantly positive effects on most dimensions of a country’s social cohesion. In contrast, inflation, corruption and income inequality are detrimental to social cohesion.
Topic:
Corruption, Development, Income Inequality, Inflation, and Social Cohesion
Political Geography:
Global Focus

12. Chronic Crisis Financing? Fifty Years of Humanitarian Aid and Future Prospects

Author:
Gary Milante and Jannie Lilja
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Stockholm International Peace Research Institute
Abstract:
This study maps trends of humanitarian funding in the context of total aid at the country level between 1969 and 2019 and estimates how these trends will change in the future. Historical trends show that the composition of aid has changed significantly in the last two decades: the humanitarian share of total aid to countries has increased from approximately 5 per cent in the 1990s to 23 per cent in 2019. Humanitarian aid was originally intended to respond to short-term emergencies, however, most of today’s humanitarian financing goes to protracted situations. Today many countries receive high levels of humanitarian assistance for a decade or longer, referred to in this paper as ‘chronic’ crises. More than half of total global humanitarian assistance (59 per cent) in the decade 2010–19 went to chronic crises, typically synonymous with conflict-affected, fragile and refugee-hosting settings. These chronic crises have become more prevalent since 1995. Conservative forecasts suggest that 71 per cent of humanitarian assistance over the next decade will continue to go to countries receiving high levels of assistance today. The study concludes with open questions to policymakers regarding the use of the humanitarian financing instrument. In chronic crisis settings, the strategic balance between humanitarian, development and peacebuilding financing and the interplay between these financing streams deserves attention.
Topic:
Development, Humanitarian Aid, Finance, Resilience, and Peacebuilding
Political Geography:
Global Focus

13. A Global Development Paradigm for a World in Crisis

Author:
Rachael Calleja, Beata Cichocka, Mikaela Gavas, and Samuel Pleeck
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper explores how and whether responses to COVID-19, particularly from non-DAC actors, have deepened the transition from an “international” to a “global” development paradigm, and it considers implications for the future of development cooperation. To do so, we map international responses to COVID-19—financial and beyond—to understand the changing nature of development challenges and cooperation as well as the growing role of non-DAC actors as part of this shift. Our analysis shows that while a diversity of actors contributed to international COVID-19 responses, the transition towards a global development paradigm has yet to materialize. Instead, responses to COVID-19 demonstrated clear tensions between the imperative for collaboration and the national interest, with the latter trumping the former.
Topic:
Development, International Cooperation, Pandemic, and COVID-19
Political Geography:
Global Focus

14. Building a Portfolio of Pull Financing Mechanisms for Climate and Development

Author:
Ranil Dissanayake and Bernat Camps Adrogue
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Pull financing is a powerful but underused mechanism for incentivising progress on hard-to-tackle social problems for which innovation or the take-up of innovation may be part of the solution. It should become part of the ongoing landscape for climate and development work. This paper sets out the specific design features for a portfolio of pull financing mechanisms to support the accelerated development of socially valuable innovations with both climate and development implications. It considers the institutional structure required to manage such a novel mechanism, a process for finding and developing a potential application, and the objectives pull financing should pursue. It then looks in detail at seven applications of pull financing in the climate and development space, each selected to illustrate the potential and challenges of the approach. We conclude by setting out how to construct a high-ambition portfolio of pull financing projects that is both tractable and attractive to potential funders.
Topic:
Climate Change, Development, Environment, and Finance
Political Geography:
Global Focus

15. The Next Game Changers: A Priority Innovation Agenda for Global Health

Author:
Cordelia Kenney and Rachel Silverman
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Over the last century, scientific and technological innovation has led to unprecedented improvements in health outcomes—yet research and development (R&D) investments and progress to address health threats has been uneven. Commercial R&D has focused where investors can expect substantial financial returns: rich countries, the diseases that affect them, and high-tech solutions designed for the richest and most sophisticated systems. Despite supplemental funding from philanthropic and government grants, R&D to address many leading causes of death and disability—especially those that primarily affect low- and middle-income countries (LMICs) or insure against future risk—has been consistently underfunded relative to potential health gain. This implies that many untapped opportunities remain to dramatically improve global health and welfare via biomedical innovation. In this paper, we report the results of a horizon-scanning exercise to source opportunities for global health R&D investment—that is, high-value potential biomedical innovations which are currently underfunded but which could be transformative for health, quality of life, and health security in LMICs and around the world. Drawing from a literature review and expert interviews with researchers, economists, funders, advocates, and implementers, we lay out an expansive and high-promise (though non-comprehensive) biomedical innovation agenda for global health spanning the unfinished MDG agenda; non-communicable diseases; and global health security. We conclude with a discussion of implications for research, funding, and practice.
Topic:
Development, Health, Science and Technology, Innovation, and Emerging Technology
Political Geography:
Global Focus

16. Is There a Better Way to Use Global Reserves?

Author:
Mark Plant
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Global reserves can serve as a global public good, facilitating the short-term global recovery from the economic impacts of the pandemic and Russian invasion of Ukraine, as well as the longer-term global transition to a sustainable and equitable economic future. Strategic allocation of Special Drawing Rights (SDRs) could facilitate sharing of global reserves with low- and middle-income countries to the mutual benefit of advanced and developing countries. This will require the development of new SDR sharing mechanisms, in which multilateral development banks could be instrumental. Other SDR reforms should also be pursued.
Topic:
Development, Multilateralism, Sustainability, and Banking
Political Geography:
Global Focus

17. What’s the Best Way to Bolster the IMF’s Capacity to Lend to Low-Income Countries?

Author:
David Andrews
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The IMF’s concessional lending to low-income countries through its Poverty Reduction and Growth Trust (PRGT) has risen dramatically since the start of the pandemic and demand for the PRGT resources is expected to remain above pre-pandemic levels for quite some time. But the surge in lending has strained the PRGT's finances—loan resources have dwindled, subsidy costs have risen sharply, and reserves need bolstering. Projections show the risks to PRGT financing are accentuated given the Russian invasion of Ukraine and rising global interest rates. A multi-pronged decade-long effort is needed to ensure sound PRGT financing: (1) reinforce current fundraising efforts for loan and subsidy resources; (2) promote the use of the PRGT's deposit investment account; (3) terminate the reimbursement of PRGT administrative resources to the IMF's General Resources Account and (4) begin a discussion on IMF gold sales to take place in the out years. Each prong of the effort should start immediately, given the time lags involved in reaching consensus and implementation.
Topic:
Development, International Cooperation, Finance, and IMF
Political Geography:
Global Focus

18. Why and How Development Agencies Facilitate Labor Migration

Author:
Helen Dempster and Beza Tesfaye
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Development agencies in high-income countries spend a large amount of both official development assistance (ODA) and other forms of financing on migration programming. While most of this spending is aimed at deterring migration, increasingly more is being focused on facilitating migration: to the high-income country itself; within and between low- and middle-income countries; and supporting people on the move and the diaspora. This paper, written by the Center for Global Development and Mercy Corps, aims to explore why and how development agencies in high-income countries facilitate labor, or economic, migration, and how they have been able to justify and expand their mandate in this area. Based on interviews with nine development agencies, we find that development agencies use a range of arguments to justify their work in this area, including supporting economic development and poverty reduction in partner countries while also meeting labor market demands at home or other countries. Yet expanding a mandate in this area requires substantial cross-government coordination and political buy-in, both of which are difficult to achieve. It also requires the ability to be able to use ODA to facilitate labor migration, which is currently up for debate. As development agencies seek to expand their work on labor migration, it will be necessary to define shared goals and start with pilot projects that focus on low-hanging fruit, while maintaining a focus on development and poverty reduction.
Topic:
Development, Migration, Diaspora, and Labor Issues
Political Geography:
Global Focus

19. Assessment of Expenditure Choices by Low- and Low- Middle-Income Countries During the Pandemic and Their Impact on SDGs

Author:
Sanjeev Gupta and Lucas Sala
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Until the COVID pandemic, public spending in low- and low-middle-income countries had been growing modestly. As a result, governments expanded service provision, including in social sectors, and enlarged welfare programs. This was made possible in part by domestic revenue growth. However, the pandemic has significantly lowered revenue receipts of these countries, while creating pressures to spend more on shielding the population and providing support to the economy. Unfortunately, health outlays did not increase as a share of total output during 2000-2018. The preliminary evidence compiled in this paper shows that health spending in relation to GDP increased virtually in all low and low-middle income countries in 2020, though not by as much as in advanced economies. However, higher health spending in low and low-middle income countries is unlikely to be sustained because of the pandemic’s adverse impact on revenues and other spending pressures. Furthermore, COVID has critically scarred the future productivity of these countries. Before the pandemic, the achievement of the Sustainable Development Goals (SDGs) by 2030 was doubtful in part because of the slow pace in generating additional revenues from domestic sources. As the financing needs have increased, the achievement of these goals will be delayed beyond 2030, unless additional financing sources can be found. This means that policy actions will need to be taken by these countries to create additional fiscal space going forward. There is potential to raise more revenues from domestic sources by implementing politically difficult policy measures and generating savings by improving the quality of public spending, including on health.
Topic:
Development, Sustainable Development Goals, Sustainability, Pandemic, and COVID-19
Political Geography:
Global Focus

20. Development Effectiveness in the “New Normal”: What Do the Changing Roles and Purposes of ODA Mean for the Effectiveness Agenda?

Author:
Rachael Calleja and Beata Cichocka
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper explores how the roles and purposes of official development assistance (ODA) are changing and what these shifts mean for the future of the development effectiveness agenda. Using data obtained through a survey of officials working in development agencies and partner countries, this paper maps perspectives on the changing role and purposes of ODA as well as perceptions of the continued relevance of the effectiveness agenda and the Busan principles in this changing development landscape. Our results show that providers are increasingly prioritizing global challenges and private sector development as main purposes of ODA, and that the catalytic role of ODA is becoming increasingly important. In spite of substantive changes to the development landscape, survey respondents overwhelmingly thought that the current effectiveness agenda remains relevant – however, they also expressed the need to revise or renew the effectiveness principles to keep pace with changing demands. Working from our survey responses, we propose a basic framework for considering options for the future of the effectiveness agenda and conclude by proposing four possible paths forward.
Topic:
Security, Development, International Cooperation, and Development Assistance
Political Geography:
Global Focus

21. What is public policy success, especially in development?

Author:
Matt Andrews
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Public policy work is hard, especially when one works in developing countries. It is even difficult to define what success looks like, and thus how to manage towards success. Literature helps manage such difficulty, providing studies that define the concept and show how it can be achieved. A core message from such is that success is multi-dimensional, and practitioner need to focus on multiple criteria when doing their policy work. But what dimensions and criteria matter? And do development practitioners really adopt this multi-dimensional view? Tackling such questions, the current paper reviews 45 applied studies from the public policy, project management and development evaluation literatures to see what they identify as key success criteria and if the practical studies (about development evaluation) are in sync with the more academic messages. Reading across all three literatures, I identify 30 potential success criteria in 6 categories or dimensions (program, impact and endurance, capability, political, stakeholder, and process). I find that the development evaluation literature focuses on a narrow set of 7 criteria, mostly in one dimension (program success) as compared to broader perspectives in the other literatures. This suggests that development practitioners have a narrow view on success, which is out of step with academic views on the topic. A conclusion proposes a broader approach for these practitioners.
Topic:
Development, Public Policy, and Project Management
Political Geography:
Global Focus

22. Wartime governance and state-building trajectories in post-conflict societies

Author:
Patricia Justino
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
To date, there is limited understanding about the consequences of wartime dynamics for post-war state-building processes. This paper explores one such dynamics—the forms of governance exercised by armed groups during wartime—and proposes a theoretical framework outlining how forms of wartime governance affect trajectories of state-building in the aftermath of civil wars. Six possible trajectories are mapped out: stable democracy, weak democracy, stable autocracy, fragmented rule, contested autocracy, and durable disorder. Each trajectory is shaped by the interaction between two dimensions of wartime governance: how armed groups build institutional capacity in wartime and the characteristics of wartime civilian rule by armed groups. The core argument is that civil wars generate within themselves bureaucratic and institutional capacity—through how armed groups govern territories and civilians within them—that under certain circumstances may be harnessed in the post-war period to build states capable of governing. The characteristics and durability of those forms of wartime governance shape the type of statebuilding and political regime trajectories that emerge in the post-war period.
Topic:
Political Violence, Development, War, Conflict, Peace, and State Building
Political Geography:
Global Focus

23. Aid’s impact on democracy

Author:
Miguel Niño-Zarazúa, Ana Horigoshi, and Rachel M. Gisselquist
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper investigates the impact of foreign aid on democratic outcomes using a panel of countries for the period between 1995 and 2018. In so doing, it speaks to a major critique of foreign aid, which is that it negatively impacts democratic governance. The analysis distinguishes between developmental aid and democracy aid, and examines democracy aid to specific sectors, in order to explore variation across different aid types. It draws on the Organisation for Economic Co-operation and Development’s (OECD) Creditor Reporting System (CRS) data on foreign aid and indices of democracy from the Varieties of Democracy project, employing a combination of a maximum likelihood estimation and structural equation modelling (ML-SEM) model and fixed effects models. Overall, using a more extensive set of data and methods than previous analyses, we offer comprehensive evidence pointing to aid having a positive if modest impact on democratic outcomes. Our analysis suggests this effect is more significant for democracy aid than developmental aid, but there is no evidence of negative impact for either. These results are robust to multiple specifications.
Topic:
Development, Foreign Aid, and Democracy
Political Geography:
Global Focus

24. Does the adoption of peer-to-government mobile payments improve tax revenue mobilization in developing countries?

Author:
Abdoul-Akim Wandaogo, Fayçal Sawadogo, and Jesse Lastunen
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Developing countries need to raise sufficient tax revenue to finance development. Revenue mobilization is often hampered by limited tax compliance, weak institutions, and technical problems with tax collection. One solution to these challenges is person-to-government (P2G) mobile phone payments, adopted in a number of developing countries since the early 2000s. This study assesses the causal effect of P2G adoption on tax revenue using propensity score matching. According to the matching estimates, countries that adopt P2G services experience a 1.2–1.3 percentage point boost in direct tax revenue as a share of GDP. P2G adoption increases revenue from both corporate and personal income taxes, with larger effects on the latter. The results remain robust to matching quality tests and alternative estimation methods, including function control, two-stage least squares, and system generalized method of moments. The average treatment effects are largest among lower-middle-income countries and countries characterized by limited tax compliance and corruption control, and by low levels of urbanization and domestic credit to the private sector. The findings suggest that developing countries, particularly those with poor institutions and low levels of financial inclusion, should promote the adoption and use of mobile money services for tax transactions.
Topic:
Development, Government, Finance, Economy, and Tax Systems
Political Geography:
Global Focus

25. Managing for Motivation as Public Performance Improvement Strategy in Education & Far Beyond

Author:
Dan Honig
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
People management has an important role to play in improving public agency performance. This paper argues that a ‘Route Y’ managerial approach focused on supporting the empowered exercise of employee judgment will in many circumstances prove superior to conventional reform approaches steeped in ‘Route X’ monitoring and incentives. Returns to Route Y are greater when employees are or can become more “mission motivated” – that is, aligned with the goals of the agency in the absence of monitoring and extrinsic incentives. Returns to Route Y are also greater when monitoring is incomplete or otherwise likely to unproductively distort effort, thus lowering the returns to using performance-linked rewards and penalties. I argue that education systems are one (but far from the only) setting where Route Y is a lever worth focusing on in efforts to improve public performance in the developed and developing world alike.
Topic:
Development, Education, Public Policy, Performance Evaluation, and Project Management
Political Geography:
Global Focus

26. The Belt and Road Initiative as Ten Policy Commandments: Review of Xi’s Kazakhstan and Indonesia Launch Speeches

Author:
Lauren A. Johnson
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
China Studies Centre, The University of Sydney
Abstract:
In 2019 Foreign Policy described China’s Belt and Road Initiative (BRI) as “the most talked about and least defined buzzword of this decade”. Given that confusion and the importance of leader political speeches in China, especially those of current President Xi Jinping, it is surprising that the BRI literature has little in-depth analysed the two launch speeches of 2013. This article seeks to fill that gap with study of those speeches and focus on the five cooperationoriented areas announced in each. In comparative context those ten pillars appear not to be descended from New Era Chinese heaven but rather demonstrate substantive thematic overlap with the ten pillars of what was once relatively mainstream macroeconomic development policy, the Washington Consensus. Yet, in the case of the BRI there is a relative implicit implementation emphasis also. In forward context of contemporary global political economy tensions, the need to recover from the COVID-19 pandemic, the G7’s Build Back Better and the European Union’s Global Gateway ambitions also, this article may offer a timely fresh and comparative lens on the BRI.
Topic:
Development, International Cooperation, Infrastructure, Hegemony, and Belt and Road Initiative (BRI)
Political Geography:
China, Asia, and Global Focus

27. Putting Development at the Centre of G20 Policy Agenda: Lessons for the T20

Author:
Daniele Fattibene and Alice Fill
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The G20 Development Working Group has gradually evolved throughout the years, following a haphazard and contradictory path. On the one hand, it has been progressively overshadowed by a sectoralisation of G20 activities, with several action tracks (i.e., the Finance Track) taking a more prominent role in the definition of the leaders’ priorities. On the other hand, its (unexploited) potential has increased due to the emergence of several global crises that have shown the importance of rekindling multilateral solutions at the G20 level. The T20 has a strong potential to boost G20 legitimacy on development cooperation worldwide, by drafting evidence-based and pragmatic policy proposals for the decision-makers. However, although often advocating for similar solutions, the Development Working Group and T20 have not necessarily fed into each other’s policy agendas, leading to misalignment and reducing their chances to influence other G20 tracks on crucial development issues such as development finance, food security or the global climate agenda.
Topic:
Development, Political Economy, Governance, G20, and Sustainability
Political Geography:
Global Focus

28. Do various innovation linkages enhance innovation? International evidence

Author:
Rajeev K. Goel
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Whereas various drivers of the international innovative activity have been studied in the literature, our understanding of the contributions of different innovation linkages to innovation deserves more attention. Are the different innovation linkages equally complementary to research inputs in fostering innovation? This paper addresses the contributions of different innovation linkages to innovation, across two different measures of innovation. We find that a broader index of innovation linkages shows positive and significant spillovers on innovation, while joint ventures and university-industry collaborations fail to exert a significant influence. These spillovers are reinforced by the positive and expected impacts of R&D spending. In other results, greater venture capital investments boost innovation in most cases, while more FDI boosts one type of innovation output. These findings are uniquely shown to be sensitive across least- and most innovative nations when a quantile regression is employed. Implications for technology policy are discussed.
Topic:
Development, Science and Technology, Innovation, and Research and Development
Political Geography:
Global Focus

29. Lessons from the COVID-19 Crisis: 6 Opportunities to Strengthen Conflict Sensitivity across the HumanitarianDevelopment-Peacebuilding Nexus

Author:
Céline Monnier and Leah Zamore
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
The COVID-19 pandemic, and efforts to control its spread—including lockdowns, social distancing measures, and border closures—have led to unprecedented health, humanitarian, and socioeconomic shocks worldwide. These shocks, in turn, are raising the likelihood that risks for many forms of violent conflict—crime, armed conflict, violent extremism—may increase. It is crucial for the United Nations (UN) to adopt a conflict-sensitive lens in all relevant operations across the humanitarian, development, and peacebuilding (HDP) nexus to prevent an increasingly volatile situation from deteriorating further.
Topic:
Development, United Nations, Conflict, COVID-19, and Peacebuilding
Political Geography:
Global Focus

30. New Rules, Same Practice? Analysing UN Development System Reform Effects at the Country Level

Author:
Silke Weinlich, Max Otto Baumann, Maria Cassens-Sasse, Rebecca Hadank-Rauch, Franziska Leibbrandt, Marie Pardey, Manuel Simon, and Anina Strey
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
With its unique multilateral assets, the United Nations Development System (UNDS) should be playing a key role in assisting governments and other stakeholders with their implementation of the 2030 Agenda for Sustainable Development. But this requires change. Despite improvements in recent decades, too often the UNDS has continued to act as a loose assemblage of competing entities, undermining its effective support for Sustainable Development Goal (SDG) implementation. It is against that backdrop that the UNDS has been undergoing an extensive reform – that was decided on in 2018 and has been implemented since 2019 – to provide more coherent, integrated support in line with requirements of the 2030 Agenda to United Nations (UN) programme countries. What effects have the reforms yielded at the country level? This paper presents the main findings, conclusions and recommendations from our research on UNDS reform implementation. It does so with a focus on reform-induced changes towards what we call a strengthened, collective offer at the country level. Overall, our research shows that reform implementation is moving the needle on the quality of the collective offer. In particular, with regard to its institutional element, we observed that the reform has fostered change in how UN country teams work together that is in line with what the 2030 Agenda demands. Institutional changes allow for increased cross-organisational and cross-sectoral coordination, which could potentially lead to increased policy coherence. But while we see substantial progress, it remains incomplete, fragile and subject to structural limitations. A more critical picture emerges with regard to change in the substantive component of the collective offer in the areas of SDG integration, cross-border work and normative approaches. While there were positive examples, we found little evidence of a systematic repositioning in these areas. The adjustment of the UNDS to the 2030 Agenda does not (yet) meet the expectations derived from the UN’s own reform ambition.
Topic:
Development, United Nations, Reform, and Sustainable Development Goals
Political Geography:
Global Focus

31. The World Bank, the IMF, and the GATT/WTO: Which institution most supported trade reform in developing economies?

Author:
Douglas A. Irwin
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The 1980s and 1990s saw a policy revolution in developing countries in which many highly protected (if not closed) economies were opened to world trade. These reforms were largely undertaken unilaterally, but international economic institutions such as the World Bank, the International Monetary Fund, and the General Agreement on Tariffs and Trade/World Trade Organization supported these efforts. This paper examines the ways in which these institutions promoted, or failed to promote, trade policy reform during this pivotal period.
Topic:
Development, World Bank, Reform, Trade, IMF, and WTO
Political Geography:
Global Focus

32. Does aid fragmentation affect tax revenue dynamics in developing countries? Observations with new tax data

Author:
Ali Compaoré and Abrams M. E. Tagem
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
There exists a burgeoning empirical literature on the impact of aid fragmentation on development outcomes in aid-receiving countries, with it being widely recognized that aid fragmentation is deleterious. This paper adds to the existing literature by estimating the impact of aid fragmentation on tax revenue mobilization in developing countries. Drawing on the popular system generalized method of moments technique to counter endogeneity issues, this study focuses on a sample of 90 developing countries covering the period from 2000 to 2020. We show that aid fragmentation, measured by the Herfindahl index, has a significant negative impact on recipient countries’ tax revenue ratios, an impact that is not mitigated by the level of institutional quality. The paper also explores the impact of aid fragmentation on tax structure and finds convincing evidence that direct taxes, particularly corporate income taxes, are the most affected. Value-added tax is the only indirect tax affected by aid fragmentation.
Topic:
Development, Tax Systems, Institutions, and Revenue
Political Geography:
Global Focus

33. Employer power and employment in developing countries

Author:
Nancy H. Chau, Ravi Kanbur, and Vidhya Soundararajan
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The issue of employer power is underemphasized in the development literature. The default model is usually one of competitive labour markets. This assumption matters for analysis and policy prescription. There is growing evidence that the competitive labour markets assumption is not valid for employment in developing countries. Our objective in this paper is to review this evidence, to present theoretical and policy perspectives that follow from it, and to highlight areas for further research.
Topic:
Development, Employment, and Labor Market
Political Geography:
Global Focus

34. Private Insurance, Public Welfare, and Financial Markets: Alpine and Maritime Countries in Comparative-Historical Perspective

Author:
A. van der Heide and S. Kohl
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Contemporary capitalist societies use different institutions to manage economic risks. While different public welfare state and financial institutions (banks, capital markets) have been studied across coordinated and liberal market economies, this paper adds the private insurance sector to the study of countries’ security arrangements, following up on Michel Albert’s classical distinction between Alpine and Maritime insurance cultures. Building on extensive new insurance data collections (1880–2017) and institutional analysis, this paper corroborates the long-run historical existence of two worlds of private insurance. Maritime countries (USA, GBR, CAN) developed much bigger life and non-life insurance earlier, with no state-associated insurance enterprises and riskier investments steered towards financial markets. Alpine insurance (AUT, DEU, CHE), by contrast, was initially smaller, with strong state involvement, a significant reinsurance tradition and relatively heavy investments in mortgages and property, due to economic and financial backwardness. We argue that the larger and more “Maritime” the insurance sector, the more it made welfare states liberal and securities markets large. Insurance is thus a hidden factor for countries’ varieties of capitalism and world of welfare. The recent convergence on the Maritime model, however, implies that the riskier and risk-individualizing type of private insurance has added to privatization and securitization trends everywhere.
Topic:
Development, Capitalism, Finance, and Welfare
Political Geography:
Global Focus

35. Navigating the Straits: Pull Financing for Climate and Development Outcomes

Author:
Ranil Dissanayake
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
An increasing share of official development assistance is being used for climate-related activities. This trend is continuing despite the lack of comprehensive cost-effectiveness evidence to guide spending decisions and continuing concerns that few applications are effective or efficient mechanisms for either climate or development outcomes. This represents both a waste of scarce resources and a missed opportunity. This paper proposes that a well-designed pull financing mechanism, which identifies specific problems for which it will pay a pre-specified price for solutions that can scale up, has the potential to navigate these problems. When they work, a pull instrument can solve problems at scale at low cost by incentivizing private innovators to produce a socially beneficial product that people want to buy and use. However, the design challenges associated with them are not trivial: firstly, the identification and selection of technologies or problems for which the pull financing facility would be a sufficiently large portion of the market to shift incentives for innovators or producers (for technologies that exist but have not been taken up widely yet); and secondly, the ability to design contracts that incentivize socially beneficial innovation that are bought and used. This paper sets out the case for pull financing for climate and development activities, the challenges that need to be addressed to do it well, criteria for judging potential applications of pull financing and an initial indication of some sectors to which pull financing may be applied.
Topic:
Climate Change, Development, Environment, and Finance
Political Geography:
Global Focus

36. Are Development Finance Institutions Good Value for Money?

Author:
Paddy Carter
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Finance institutions take money from foreign aid budgets to invest in private enterprises. How much should they be given? We can make some progress on that question by looking at the return on investment in the form of higher real incomes for workers and customers, and comparing that to a cash transfer benchmark. There is considerable uncertainty, but what evidence we have suggests returns on investment are in a range that compares well to that benchmark. There is also a diversification argument that because we don’t know which of the things that aid can finance will ultimately prove most important for poverty eradication, aid allocation should hedge its bets. A low single digit percentage of aid allocated to increase the quantity and quality of private investment in low- and middle-income countries seems reasonable.
Topic:
Development, Foreign Aid, Finance, Investment, and Institutions
Political Geography:
Global Focus

37. Some Unpleasant ODA Arithmetic

Author:
Ranil Dissanayake and Atousa Tahmasebi
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Official development assistance is supposed to be designed to prioritise the economic development and welfare of developing countries. The OECD’s Development Assistance Committee is a club of wealthy donor countries which collaborate to set rules and norms to this effect. However, digging into the official data submitted by donors to the OECD reveals some unpleasant truths. We use data on every funding line reported by donors to the OECD between 2006 and 2019 to investigate the pattern and distribution of commitments and disbursements of ODA to developing countries, and discover that ODA is targeted poorly within the group of eligible developing countries; that this group of eligible countries is gradually expanding to include more relatively wealthy places; that aggregate ODA flows are organized and structured sub-optimally; and that ODA responds more to arbitrary income classifications than it should. We suggest informational and incentive reforms in response. These findings also suggest limits to what realistic reform of ODA can achieve, and, consequently, the importance of non-aid development policy for outcomes in developing countries.
Topic:
Development, International Cooperation, Foreign Aid, and Welfare
Political Geography:
Global Focus

38. A Review of Multilateral Development Banks’ Investments in Childcare

Author:
Megan O'Donnell, Kelsey Ross, and Shelby Bourgault
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The COVID-19 pandemic has led to an unprecedented increase in unpaid care work all over the world, causing women to leave the workforce, reversing decades of progress on gender equality, and resulting in increased focus and empathy around the global childcare crisis. Recognizing a gap in the evidence regarding multilateral development banks’ current (and historical) investments in childcare solutions, in this paper we seek to establish a baseline, exploring the extent to which MDBs have invested in childcare over time, across geographies, and through various sectors and activities. Using project data from eight multilateral development banks’ project databases, we compiled all projects with a childcare component from 2000 to June 2021. Our analysis explores best practices across institutions, identifies gaps and areas for improvement, and makes recommendations for how MDBs can increase and improve investments in childcare.
Topic:
Development, Multilateralism, Banks, Pandemic, COVID-19, and Childcare
Political Geography:
Global Focus

39. How Do Development Agencies Support Climate Action?

Author:
Rachael Calleja
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper explores how development agencies are integrating climate action into development portfolios in response to calls to scale-up climate engagements in alignment with both the Sustainable Development Goals and the Paris Agreement. Using data compiled on all 30 members of the Organisation for Economic Co-operation and Development’s Development Assistance Committee (OECD-DAC), this paper maps and analyzes trends in both the scale and usage of official development assistance allocated to support climate activities and the tools and approaches used to integrate climate across development activities. This paper shows that while climate has become a key priority for development agencies, there remains scope for deepening integration by improving monitoring and reporting of climate and development results, integrating climate considerations across the life cycle of projects, and searching for complementarities across agencies.
Topic:
Climate Change, Development, Environment, and Green Transition
Political Geography:
Global Focus

40. Climate-related Security Risks in the 2020 Updated Nationally Determined Contributions

Author:
Elise Remling and Amar Causevic
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Stockholm International Peace Research Institute
Abstract:
Nationally determined contributions (NDCs) are the central instrument for states to communicate their con­tribution to the 2016 Paris Agreement on climate change and reflect their wider approach to climate mitigation and adaptation. This SIPRI Insights paper analyses how the 2020 updated NDCs (16 submissions as of October 2020) discuss climate-related security risks and compares them with 2015. It finds that climate change is mainly seen as a risk to socio-economic development and human security and almost never as a risk to societal stability or the functioning of the state. The assessment of risks in NDCs largely focuses on direct climate impacts. This suggests that countries are currently not considering the risks from indirect climate impacts, including those that cross national borders, or the unintended adverse con­sequences of adaptation or mitigation responses. Going forward, countries will need to take account of the multi­faceted and transboundary character of climate risks in their NDCs in order to meet global expectations and goals.
Topic:
Security, Climate Change, Development, Risk, and Peace
Political Geography:
Global Focus

41. Let’s Take the Con Out of Randomized Control Trials in Development: The Puzzles and Paradoxes of External Validity, Empirically Illustrated

Author:
Lant Pritchett
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
The enthusiasm for the potential of RCTs in development rests in part on the assumption that the use of the rigorous evidence that emerges from an RCT (or from a small set of studies identified as rigorous in a “systematic” review) leads to the adoption of more effective policies, programs or projects. However, the supposed benefits of using rigorous evidence for “evidence based” policy making depend critically on the extent to which there is external validity. If estimates of causal impact or treatment effects that have internal validity (are unbiased) in one context (where the relevant “context” could be country, region, implementing organization, complementary policies, initial conditions, etc.) cannot be applied to another context then applying evidence that is rigorous in one context may actually reduce predictive accuracy in other contexts relative to simple evidence from that context—even if that evidence is biased (Pritchett and Sandefur 2015). Using empirical estimates from a large number of developing countries of the difference in student learning in public and private schools (just as one potential policy application) I show that commonly made assumptions about external validity are, in the face of the actual observed heterogeneity across contexts, both logically incoherent and empirically unhelpful. Logically incoherent, in that it is impossible to reconcile general claims about external validity of rigorous estimates of causal impact and the heterogeneity of the raw facts about differentials. Empirically unhelpful in that using a single (or small set) of rigorous estimates to apply to all other actually leads to a larger root mean square error of prediction of the “true” causal impact across contexts than just using the estimates from non-experimental data from each country. In the data about private and public schools, under plausible assumptions, an exclusive reliance on the rigorous evidence has RMSE three times worse than using the biased OLS result from each context. In making policy decisions one needs to rely on an understanding of the relevant phenomena that encompasses all of the available evidence.
Topic:
Development, Economics, Education, and Public Policy
Political Geography:
Global Focus

42. Artificial Intelligence, Globalization, and Strategies for Economic Development

Author:
Anton Korinek and Joseph E. Stiglitz
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Progress in artificial intelligence and related forms of automation technologies threatens to reverse the gains that developing countries and emerging markets have experienced from integrating into the world economy over the past half century, aggravating poverty and inequality. The new technologies have the tendency to be labor-saving, resource-saving, and to give rise to winner-takes-all dynamics that advantage developed countries. We analyze the economic forces behind these developments and describe economic policies that would mitigate the adverse effects on developing and emerging economies while leveraging the potential gains from technological advances. We also describe reforms to our global system of economic governance that would share the benefits of AI more widely with developing countries.
Topic:
Development, Globalization, Science and Technology, Inequality, Artificial Intelligence, and Redistribution
Political Geography:
Global Focus

43. Food security in the long-run: a macroeconomic approach to land use policy

Author:
Pedro Naso, Ozgun Haznedar, Bruno Lanz, and Timothy M. Swanson
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:
It is important to dedicate substantial parts of the global land supply to public good uses in the 21st century, for purposes of climate change management and biodiversity provision. But will it also be possible to meet the food requirements of 12 billion people while doing so? Using a macroeconomic model (MAVA), we demonstrate that it may be possible to provide both for food security and environmental services in the long run. We first show that it may be possible to provide for food security with very substantial constraints on the amount of land used in agriculture with relatively minor welfare losses. We then show that global policies that reallocate labour across sectors of the economy may have the capacity for directing the economy toward reduced reliance on land in agriculture. Focusing on education, research and development, and fertility costs may be the best way to meet these combined goals. Details
Topic:
Development, Food Security, Macroeconomics, and Land
Political Geography:
Global Focus

44. Employment effects of R&D and innovation: Evidence from small and medium-sized firms in emerging markets

Author:
Rajeev K. Goel and Michael Nelson
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper studies the impact of research and development (R&D) and innovation on employment growth, focusing on small and medium-sized firms. Employment effects of R&D and innovation are unclear a priori as process innovation may be labor-saving or labor might have complementarities with other inputs. Employing firm-level data from 125 nations, results show that both R&D and innovation increased employment growth, suggesting that innovation was either capital-saving or labor had strong complementarities with other inputs. Upon splitting the sample into growing and contracting firms showed that contracting firms benefit from innovation but not from R&D. In other findings, sole proprietorships, larger firms, firms with relatively more experienced managers, firms with females as top managers, and firms facing the threat of informal competition had lower employment growth, while foreign-owned and government-owned enterprises have positive influences on employment growth. Finally, employment growth in shrinking firms was boosted in nations with greater economic freedom, but this growth is undermined by informal sector competition.
Topic:
Development, Emerging Markets, Research, Innovation, and Research and Development
Political Geography:
Global Focus

45. Green gifts from abroad? FDI and firms' green management

Author:
Peter Kannen, Finn Ole Semrau, and Frauke Steglich
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Improvements of firms' environmental performance crucially determine the speed of a country's green economic transformation. In this paper, we investigate whether firms with foreign ownership are more likely to adopt 'green' management practices, which determine the capability to monitor and improve a firm's impact on the environment. By using multi-country firm-level data, we show that foreign ownership increases the likelihood of implementing green management practices. Considering country heterogeneity, we reveal that only firms based in more developed economies and in countries with better environmental performance benefit from foreign direct investment, while this is not the case for firms based in less developed economies or countries with weak environmental performance. In addition, we find that the effect is more robust for manufacturing sector firms than for service sector firms. Overall, our results suggest that foreign ownership can contribute towards a country's green economic transformation.
Topic:
Development, Economics, Environment, Green Technology, and Green Transition
Political Geography:
Global Focus

46. Development Banking in the Global Economy: State of Play and Future Direction

Author:
Ryan Lasnick
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
This report analyses the size, scale and persistence of national development banks and offers ten clear observations and conclusions of the role of NDBs for the achievement of sustainable development globally. The Executive Summary can be found here. This report analyzes NDBs top down and bottom up. Top down, it includes the most recent data on the number of NDBs along with their total assets and annual disbursements. Bottom up, we conduct systematic case studies of various development bank ecosystems, including those of India, Brazil, China, South Africa, Germany and the US, to begin analyzing their role in the national development bank economy.
Topic:
Development, Sustainability, and Banking
Political Geography:
Global Focus

47. Firm Profits and Government Activity: An Empirical Investigation

Author:
Petar Jolakoski, Branimir Jovanovic, Joana Madjoska, Viktor Stojkoski, and Dragan Tevdovski
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
If firm profits rise to a level far above than what would have been earned in a competitive economy, this might give the firms market power, which might in turn influence the activity of the government. In this paper, we perform a detailed empirical study on the potential effects of firm profits and markups on government size and effectiveness. Using data on 30 European countries for a period of 17 years and an instrumental variables approach, we find that there exists a robust relationship between firm gains and the activity of the state, in the sense that higher firm profits reduce government size and effectiveness. Even in a group of developed countries, such as the European countries, firm power may affect state activity.
Topic:
Development, Economics, Government, International Political Economy, and Profit
Political Geography:
Europe and Global Focus

48. Nature-based solutions to development and climate change challenges: Understanding ecosystem-based adaptation approaches

Author:
Marie Ladekjær Gravesen and Mikkel Funder
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Nature-based Solutions (NbS) to climate- and development-related challenges have recently gained attention in development cooperation. Among other, approaches that fall under the NbS umbrella include Ecosystem-based Adaptation (EbA), Ecosystem-based Mitigation (EbM) and Ecosystem-based Disaster Risk Reduction (Eco-DRR). This new DIIS Working Paper focuses on nature-based solutions to climate change adaptation, EbA. It provides an overview of selected lessons learnt from EbA in the context of development cooperation, with a particular emphasis on the opportunities and risks regarding poverty alleviation and rights. It generates learning for Danish development cooperation, including future programming under Denmark’s 2021 development strategy, in which NbS approaches are emphasised. However, the paper can also be read as a general discussion of experiences with EbA in the development context. The three-legged EbA approach focuses on human well-being, ecosystem management, and climate change adaptation. EbA has already been applied to a range of ecosystems, including the restoration of mangroves to shield them against storm and sea-level rises, the management of watersheds to protect against droughts and flooding, the management of rangelands to inhibit desertification and land degradation, and more sustainably managed fisheries and forestry to tackle food insecurity. EbA thus not only addresses the restoration of already degraded ecosystems, but also the sustainable use, management, and conservation of intact ecosystems. The paper provides a conceptual overview of EbA in relation to NbS, outlines the potential in using EbA approaches, and describes the landscape of the institutions and agencies that fund, promote and implement EbA. The paper then provides a synthesis of lessons learned from PES and REDD+ schemes that are of relevance to EbA. For instance, it is emphasised that many REDD+ measures have effectively existed as project islands that were not anchored in national or subnational planning and governance mechanisms. As a result, the conservation activities and socioeconomic benefits were often not effectively integrated or scaled up beyond small project sites. If comprehensively implemented, the EbA approach builds on these experiences by insuring full inclusion of stakeholders from all relevant sectors, as well as demanding full integration in existing policies, planning and governance practices from the ministry levels to sub-national governments. Among the final recommendations and possible entry points for Danish development cooperation, the paper highlights that the support must have a strong focus on ensuring that EbA is pro-poor (i.e. supports poverty alleviation) and rights-based (i.e. supports the rights of local resource users). Experience from EbA and related efforts show that EbA is not automatically pro-poor or supportive of local rights to natural resources and ecosystem services. In particular, there is insufficient attention to and knowledge of rights issues in EbA. Therefore, Danish development cooperation should help lead the way in ensuring that EbA takes a rights-based approach and supports poverty alleviation.
Topic:
Agriculture, Climate Change, Development, Environment, Poverty, Natural Resources, Water, Food, Governance, Inequality, Investment, and Land Rights
Political Geography:
Global Focus

49. Blockchain Technology in Supply Chains – What are the Opportunities for Sustainable Development?

Author:
Katharina Krings and Jakob Schwab
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
While blockchain technology (BT) has gained a great deal of publicity for its use in cryptocurrencies, another area of BT application has emerged away from the public eye, namely supply chains. Due to the increasing fragmentation and globalisation of supply chains in recent years, many products have to pass through countless production steps worldwide (from raw material extraction to the point of sale). Ensuring the quality and sustainability of production in preceding steps is a major challenge for many firms and thus, ultimately, also for the consumer. BT offers potential for achieving significant progress on this front. Put simply, the blockchain makes it possible to verify data decentralised within a network, store it in a tamper-proof and traceable format and make it accessible to all members of a network.
Topic:
Development, Science and Technology, Cryptocurrencies, Sustainability, and Blockchain
Political Geography:
Global Focus

50. What Are the Distributional Implications of Climate Policies? Recent Evidence from Developing Countries

Author:
Daniele Malerba
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
To avoid catastrophic effects on natural and human systems, bold action needs to be taken rapidly to mitigate climate change. Despite this urgency, the currently implemented and planned climate mitigation policies are not sufficient to meet the global targets set in Paris in 2015. One reason for their current inadequate rollout is their perceived negative distributional effects: by increasing the price of goods, climate mitigation policies may increase both poverty and inequality. In addition, they may disrupt labour markets and increase unemployment, especially in sectors and areas dependent on fossil fuels. As a result, public protests in many countries have so far blocked or delayed the implementation of climate policies.
Topic:
Climate Change, Development, and Policy Implementation
Political Geography:
Global Focus