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Begin New Search Topic International Development Content Type Working Paper Publication Year within 5 Years

1. Mainstreaming South-South and Triangular Cooperation: Work in Progress at the United Nations

Author:
Sebastian Haug
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
South-South cooperation has become an increasingly visible part of international development processes. Together with the expansion of triangular cooperation – that is, cooperation among developing countries supported by a traditional donor or multilateral organisation – the growing clout of South-South schemes reflects shifts in power and wealth towards the former developing world. Against this backdrop, United Nations (UN) entities have repeatedly been asked to mainstream their support for South-South and triangular cooperation (SSTC), but there is hardly any systematic comparative evidence on whether and how they have done so. This paper addresses this gap in three steps. First, it traces the rise and evolution of South-South terminology at the UN, showing that the use of North-South frames had its origins in debates about international inequalities in the 1960s and has expanded in the context of globalisation processes since the 1970s, and also that it is developing countries themselves that have taken up and rallied behind notions of South-South. The paper provides an overview of three partly complementary and partly contradictory approaches that understand South-South cooperation to be a set of technical cooperation modalities; a general political narrative; or a shorthand for inter-state cooperation beyond North-South assistance, with the latter being the dominant de facto understanding among UN entities. Second, the analysis focuses on UN efforts over the last two decades aimed at mainstreaming support for SSTC. It centres around a scorecard of 15 UN entities that maps their level of institutional focus on SSTC, based on insights from strategies, annual reports, publications, monitoring frameworks, budgets and organisational structures. Based on the scorecard, UN entities are grouped under the tentative labels of “champions”, “waverers” and “stragglers” for mapping patterns of SSTC mainstreaming. Third, the paper identifies three key factors that, in addition to beliefs in the functional relevance and potential effectiveness of SSTC, have accompanied and conditioned UN mainstreaming efforts. SSTC support has been part of (a) strategic considerations for positioning UN entities in an evolving funding environment; (b) internal bureaucratic dynamics that centre around individuals and shape day-to-day engagement; and (c) geopolitical tensions connected to the increasingly visible fracture between the United States and China. Traditional donors, in particular, tend to approach South-South cooperation as an umbrella for the expansion of China’s clout across the UN development system, leading to an intensification of SSTC-related contestations. Overall, support for South-South and triangular cooperation has had a long, multi-faceted, expanding and increasingly controversial trajectory at the UN. With reference to areas of future research and policy recommendations, the paper suggests that UN entities – in coordination with member states – are well advised to expand their efforts for exploring how to best support cooperation that unfolds outside traditional North-South assistance schemes.
Topic:
International Cooperation, United Nations, and International Development
Political Geography:
Global Focus

2. Employment Structure and the Rise of the Modern Tax System

Author:
Anders Jensen
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
This paper shows how the increase in information trails through the long-run transition from self-employment to employee-jobs explains the rise of the modern income tax system. I construct a new database which covers 100 household surveys across countries at different income levels and 140 years of historical data within the US (1870-2010). Using these data, I first establish four new stylized facts: 1) within country, the share of employees increases over the income distribution, and increases at all levels of income as a country develops; 2) the income tax exemption threshold moves down the income distribution as a country develops, tracking employee growth; 3) the employee share above the exemption threshold is maximized and remains constantly high; 4) decreases in the exemption threshold are strongly associated with increases in tax collection. These findings are consistent with a model where a high employee share is a necessary condition for effective taxation and where the rise in income covered by information trails through increases in employee share drives expansion of the income tax base. To provide a causal estimate of employee share on income tax systems, I study a state-led US development program implemented in the 1950s-60s which increased the level of employee share. The identification strategy exploits within-state changes in court-litigation status which generate quasi-experimental variation in the effective implementation date of the program. I find that the exogenous increase in employee share is associated with an expansion of the state income tax base and an increase in state income tax revenue.
Topic:
Political Economy, Finance, Economy, International Development, and Tax Systems
Political Geography:
North America and United States of America

3. Validating India's GDP Growth Estimates

Author:
Arvind Subramanian
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
My recent research paper “India's GDP Mis-estimation: Likelihood, Magnitudes, Mechanisms, and Implications,” (hereafter “GDP paper”) and the associated op-ed in the Indian Express on June 11, 2019 have generated considerable debate. This is encouraging because serious argument and counter-argument are the basis for good policy-making. Since the issue itself is of great importance, the counter-arguments to my analysis warrant a considered response. That is the aim of this note, which is a complement to the original paper, addressing both the larger issues and some of the specific points that have been raised. The note is structured as follows. Section II describes my engagement with India’s GDP estimation when I was Chief Economic Adviser. Section III elaborates on the framework/approach underlying the GDP paper. Section IV makes explicit the key puzzle surrounding India’s growth estimates, and addresses the possible explanations for it. Section V explores the puzzle in greater detail. Section VI provides additional cross-country evidence on growth and price deflators, which support the findings of the original paper, namely that growth during 2011-16 was likely overestimated by a significant margin. Section VII addresses two broad objections to the main findings. Section VIII discusses some of the methodological critiques of the paper. Section IX offers some thoughts on the way forward.
Topic:
Economics, Political Economy, International Development, and Economic Growth
Political Geography:
South Asia and India

4. When Do Development Projects Enhance Community Well-Being?

Author:
Michael Woolcock
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Many development agencies and governments now seek to engage directly with local communities, whether as a means to the realization of more familiar goals (infrastructure, healthcare, education) or as an end in itself (promoting greater inclusion, participation, well-being). These same agencies and governments, however, are also under increasing pressure to formally demonstrate that their actions ‘work’ and achieve their goals within relatively short timeframes – expectations which are, for the most part, necessary and desirable. But adequately assessing ‘community-driven’ approaches to development requires the deployment of theory and methods that accommodate their distinctive characteristics: building bridges is a qualitatively different task to building the rule of law and empowering minorities. Moreover, the ‘lessons’ inferred from average treatment effects derived from even the most rigorous assessments of community-driven interventions are likely to translate poorly to different contexts and scales of operation. Some guidance for anticipating and managing these conundrums are provided.
Topic:
Development, Government, Infrastructure, and International Development
Political Geography:
Global Focus and United States of America

5. Reasons for Using Mixed Methods in the Evaluation of Complex Projects

Author:
Michael Woolcock
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Evaluations of development projects are conducted to assess their net effectiveness and, by extension, to guide decisions regarding the merits of scaling-up successful projects and/or replicating them elsewhere. The key characteristics of ‘complex’ interventions – numerous face- to-face interactions, high discretion, imposed obligations, pervasive unknowns – rarely fit neatly into standard evaluation protocols, requiring the deployment of a wider array of research methods, tools and theory. The careful use of such ‘mixed methods’ approaches is especially important for discerning the conditions under which ‘successful’ projects of all kinds might be expanded or adopted elsewhere. These claims, and the practical implications to which they give rise, draw on an array of recent evaluations in different sectors in development.
Topic:
International Development, Humanitarian Intervention, and Public Policy
Political Geography:
Global Focus

6. Why Does Hirschmanian Development Remain Mired on the Margins? Because Implementation (and Reform) Really is 'a Long Voyage of Discovery'

Author:
Michael Woolcock
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
A defining task of development is enhancing a state’s capability for policy implementation. In most low- income countries, alas, such capabilities seem to be stagnant or declining, in no small part because dominant reform strategies are ill-suited to addressing complex non-technical aspects. This has been recognized for at least six decades – indeed, it was a centerpiece of Albert Hirschman’s understanding of the development process – yet this critique, and the significance of its implications, remain on the margins of scholarship and policy. Why? I consider three options, concluding that, paradoxically, followers of Hirschman’s approach inadequately appreciated that gaining more operational traction for their approach was itself a type of problem requiring their ideas to embark on ‘a long voyage of discovery’, a task best accomplished, in this instance, by building – and tapping into the distinctive insights of – a diverse community of development practitioners.
Topic:
Development, Political Economy, Developing World, and International Development
Political Geography:
North America and United States of America

7. Jordan: The Elements of a Growth Strategy

Author:
Ricardo Hausmann, Tim O'Brien, Miguel Angel Santos, Ana Grisanti, Semiray Kasoolu, Nikita Taniparti, Jorge Tapia, and Ricardo Villasmil
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
In the decade 1999-2009, Jordan experienced an impressive growth acceleration, tripling its exports and increasing income per capita by 38%. Since then, a number of external shocks that include the Global Financial Crisis (2008-2009), the Arab Spring (2011), the Syrian Civil War (2011), and the emergence of the Islamic State (2014) have affected Jordan in significant ways and thrown its economy out of balance. Jordan’s debt-to-GDP ratio has ballooned from 55% (2009) to 94% (2018). The economy has continued to grow amidst massive fiscal adjustment and balance of payments constraints, but the large increase in population – by 50% between 2008 and 2017 – driven by massive waves of refugees has resulted in a 12% cumulative loss in income per capita (2010-2017). Moving forward, debt sustainability will require not only continued fiscal consolidation but also faster growth and international support to keep interest payments on the debt contained. We have developed an innovative framework to align Jordan’s growth strategy with its changing factor endowments. The framework incorporates service industries into an Economic Complexity analysis, utilizing the Dun and Bradstreet database, together with an evaluation of the evolution of Jordan’s comparative advantages over time. Combining several tools to identify critical constraints faced by sectors with the greatest potential, we have produced a roadmap with key elements of a strategy for Jordan to return to faster, more sustainable and more inclusive growth that is consistent with its emerging comparative advantages.
Topic:
Labor Issues, Women, GDP, International Development, and Economic Growth
Political Geography:
Middle East and Jordan

8. Why does the IMF assign labor conditions? The Burden of Adjustment, Exchange Rate Regimes, and Labor Conditions

Author:
Saliha Metinsoy
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Centre for Global Political Economy, University of Sussex
Abstract:
Why does the International Monetary Fund (IMF) assign more stringent labor conditions in some cases and not others? This paper argues that the Fund’s bureaucratic organizational culture and neoliberal economic beliefs dictate its interpretation of international economics and predict the stringency of labor conditions in its programs. Particularly, the Fund staff envisage that lower unit labor costs would indirectly increase competitiveness, boost exports, and contribute to the balance of payments in fixed exchange rate regimes, where currency depreciation is not possible. To this end, the Fund assigns more stringent labor conditions in fixed regimes compared to floating ones. To test this theory, the paper uses a mixed method. It firstly demonstrates the association between exchange rate regimes and the stringency of labor conditions in Fund programs in a global sample. It then complements this analysis by showing particular organizational habits and beliefs at work in two cases, namely in Latvia and Hungary in 2008 under their respective IMF programs. Furthermore, the paper shows that distribution of income away from labor groups (i.e. lowered wages) is in fact by design in IMF programs in an attempt to increase competitiveness in fixed regimes.
Topic:
Economics, International Monetary Fund, International Development, and Neoliberalism
Political Geography:
Europe, Eastern Europe, Hungary, and Latvia