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May 2018

Migration and remittances can speed up Asia’s development. Here’s how

Mayumi Ozaki's picture
Globally, an estimated 266 million people live and work outside their countries of origin (Source: Migration and Development Brief 29) to seek opportunities provided by economic globalization. About one-third of them are from Asia and the Pacific.

Asian migrant workers tend to be semi- or low-skilled. They usually migrate to countries such as the US, high-income OECD countries, the Middle East, or middle- or upper-income countries within the region. 
 

The “accounting view” of money: money as equity (Part III)

Biagio Bossone's picture

In part I of this blog, we discussed the implications of our proposed “Accounting View” of money as it applies to legal tender. In part II, we further elaborated on the implications of the new approach, with specific reference to commercial bank money. We conclude our treatment of commercial bank money in this part, starting from where we left, that is, the double (accounting) nature of commercial bank (sight) deposits as debt or equity.

Bank deposits: debt, equity, or both…?

This double nature is stochastic in as much as, at issuance, every deposit unit can be debt (if, with a certain probability, the issuing bank receives requests for cash conversion or interbank settlement) and equity (with complementary probability). Faced with such a stochastic double nature, a commercial bank finds it convenient to provision the deposit unit issued with an amount of reserves that equals only the expected value of the associated debt event, rather than the full value of the deposit unit issued.

Last things first — knowing the problem at hand is key for blended finance

Morten Lykke Lauridsen's picture



Solutions to problems

are easy to find:
the problem’s a great
contribution.
 
So wrote the Danish poet, inventor, and mathematician Piet Hein. Development finance wasn’t on his mind when he wrote those words. Neither was private sector development. Yet the observation is unmistakably true for the field: To formulate solutions, we must first understand the nature of the problems we are trying to solve.
 
There is no silver bullet for the complex challenges of development. But blended finance — which involves combining public concessional funds with private capital — is an important part of the solution. It helps crowd in private investment to create markets in difficult places. In an era of limited government resources and donor funds, this is key to achieving sustainable development.

Five small things I’ve learned recently

David McKenzie's picture

As a change from my usual posts, I thought I’d note five small things I’ve learned recently, mostly to do with Stata, with the hope that they might help others, or at least jog my memory when I unlearn them again soon.

1.Stata’s random number generator has a limit on the seed that you can set of 2,147,483,647.
Why did I learn this? We were doing a live random assignment for an impact evaluation I am starting in Colombia. We had programmed up the code, and tested it several times, with it working fine. In our test code, we had set the seed for random number generation as the date “04112018”. Then when my collaborator went to run this live, it was decided to also add the time of the drawing at the end, so that the seed was set as “041120180304”.  This generated an error, and prevented the code from running. Luckily we could quickly fix it, and the live draw proceeded ok. But lesson learned, 2^31-1 is a large number, but sometimes binds.

What are business aspirations worth in developing countries?

Bilal Zia's picture

Small-scale entrepreneurship is widespread in developing countries, yet very few of these entrepreneurs are successful in growing their businesses beyond initial levels. Many constraints play a role, including financial, technical, and informational barriers. Yet, even when these barriers are lifted in experimental studies, we do not see the type of growth one would expect if these constraints were truly binding. In addition, many of the interventions studied, especially those targeting managerial and informational barriers, often suffer from low program take-up.

Initial findings from the implementation of the 'Practical Guide for Measuring Retail Payment Costs'

Holti Banka's picture

MoMo Tap in Côte d'Ivoire
In November 2016, we published the “Practical Guide for Measuring Retail Payment Costs”, an innovative methodology that can be customized to country needs and circumstances, without losing the international comparative dimension.

The guide enables countries to measure the costs associated with retail payment instruments, based on survey data, for the payment end users, payment service/infrastructure providers, and the total economy. The guide also enables countries to derive projected savings in shifting from the more costly to the less costly payment instruments.
 

An institutional view on Menstrual Hygiene Management

Christian Borja-Vega's picture
Recent research points out that adequate water, sanitation and hygiene (WASH) in schools improves school attendance, health and cognitive development of students, nurtures better WASH habits, while addressing gendered dimensions of exclusion. Despite this evidence, operationalizing and streamlining important Menstrual Hygiene Management (MHM) elements into interventions that upgrade overall school infrastructure is often challenging.

The problem is partially rooted in institutions, who having imperceptibly supplanted traditional & cultural rites of passage often fail to recognize the extent of the need for robust, wholistic and sustained alternatives. Girls experiencing menarche not only require WASH infrastructure, but meaning; they not only need materials, space and privacy to change and dispose of menstrual products, but an environment free from aspersions, taboo and social restriction.
 
Download the full infographic to learn about WASH-based MHM interventions in schools. 

What’s the latest systems research on the quality of governance?

Daniel Rogger's picture

Blog reader: “Dan! The government is one big system. Why didn’t your blog on the latest research on the quality of governance take this into account?”
Dan (Rogger): “Well, typically frontier papers in the field don’t frame their work as ‘modeling the system’ [which do?]  However, Martin Williams at the Blavatnik School of Government hosted a conference last week on ‘Systems of Public Service Delivery in Developing Countries’ that directly aims to discuss how research can take into account the systemic elements of governance.
 

Weekly links May 25: tips for saying no, three stories on the media and development, cricket as a development policy? And more...

David McKenzie's picture
  • NBER Summer institute development economics program and labor studies program.
  • The map of “Manuscript-Earth” featuring  “The pit of you saved those files, right? Right?”, “confused about the big picture woods”, “The island of misfit results” and other glorious landmarks (h/t Dave Evans).
  • Do you say “no” enough to new projects? Anton Pottegard has a nice poster of 8 practical tools to assist in saying no – including JOMO (joy of missing out) – “once a project is turned down, set time aside to actively ponder about how happy you are not to be doing it” (h/t Scott Cunningham).

Intermodal connectivity in the Western Balkans: What’s on the menu?

Romain Pison's picture
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As in most other regions, trucks reign supreme on freight transport across the Western Balkans, a region that encompasses six countries including: Albania, Bosnia and Herzegovina, Kosovo, FYR Macedonia, Montenegro, and Serbia.

The domination of road transport in the freight sector comes with several adverse consequences, including unpredictable journey times, high logistics costs, congestion, as well as high levels of pollution and greenhouse gas emissions. To address this, our team is looking at ways to redirect part of the freight traffic in the Western Balkans region away from roads, and onto more efficient, greener modes such as rail or inland waterways.

You may think we’re trying to bite off more than we can chew here. After all, even advanced economies with state-of-the-art rail infrastructure have been struggling to increase and sustain rail freight transport.

However, as evidenced by the Global Competitiveness and Logistics Performance Indexes, there is strong potential to close gaps in the quality of the Western Balkans transport systems or custom clearing processes. The region has also experienced sustained economic growth (higher, for instance, than OECD countries), while its geographic position makes it a strategic link between Western and Eastern markets, especially considering Turkey’s rail freight developments and global connectivity initiatives.

So where should we start?

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