Julius Maboloka is a vibrant and passionate young Mosotho farmer. We met Julius while meeting the beneficiaries of the Lesotho Smallholder Agriculture Development Project (SADP).
In many ways, Ethiopia’s teacher Continuous Professional Development program is an education specialist’s dream: teachers regularly collaborate with peers, they are mandated to complete 60 hours of professional learning every year, and in some regions, they receive promotions based on performance in the classroom. The structure mirrors many aspects of international best practice and yet the system falters, primarily because it is missing a key ingredient: content.
Transnational organized crime (TOC) is a widespread phenomenon that leaves no region untouched. Illegal trafficking—TOC’s most lucrative manifestation—has taken multiple forms, ranging from the most traditional trade in narcotics and weapons to smuggling counterfeited medicines and endangered wildlife. As these illicit flows cut across multiple national borders, they become interconnected with local security, political, social, and economic dynamics. At times, they are so embedded that the line between licit and illicit is significantly blurred. The same applies when TOC intersects with conflict situations.
When I was a teenager in Belgium, my parents wanted to make sure that I wouldn’t become a smoker. At the age of 15, I had tried a few cigarettes with friends and they were worried I would pick up the habit. They could have organized a complicated system of surveillance and sanctions to monitor and prevent my smoking behavior. Instead, my dad offered me a very simple deal: “if you are not smoking by the time you graduate from high school, I will pay your trip to a destination of your choice in Europe during the summer before you start college”. My dad’s deal worked well: I took a great trip to Greece – my first flight – with a few friends and I have never smoked after those first cigarettes at 15.
Photo: Andreas Wecker | Flicker Creative Commons
By promoting better standards, methods and benchmarking, development finance institutions can move the mountain that is preventing institutional capital from flowing into infrastructure.
The World Bank Group's initiative to Maximize Finance for Development (MFD) aims to find solutions to crowd in all possible sources of finance, innovation, and expertise in order to achieve the Sustainable Development Goals (SDGs). In the case of infrastructure investment, a significant contribution to long-term sources of private finance is expected from institutional investors such as pension plans, life insurers, and sovereign wealth funds.
These investors have become increasingly interested in infrastructure investment in recent years, in search of new sources of returns, diversification, duration and inflation hedging. However, they cannot be expected to make a substantial and durable contribution to the long-term financing of infrastructure without three important changes:
Clinical research can save lives. In a world where outbreaks of novel infectious diseases are increasing, we urgently need to speed up the development of effective vaccines, therapies, diagnostics and treatment protocols. The horrific loss of life from the 2014-2015 Ebola outbreak in West Africa is a haunting reminder of what is at stake if we do not move fast enough.
Can developing countries create strong Public Financial Management (PFM) systems, without a way to measure progress and make corrections? This would be like a ship sailing unchartered seas without a compass. The Public Expenditure and Financial Accountability (PEFA) Framework, a global gold standard for assessing a country’s PFM systems, can be a powerful guiding tool to help governments raise financial resources and spend them efficiently for service delivery.
In part I of this blog, we discussed the implications of our proposed “Accounting View” of money as it applies to legal tender. In this part and the next, we elaborate on the implications of the new approach, with specific reference to commercial bank money.
Bank deposits and central bank reserves
After long being a tenet of post-Keynesian theories of money,1 even mainstream economics has finally recognized that commercial banks are not simple intermediaries of already existing money; they create their own money by issuing liabilities in the form of sight deposits (McLeay, Radia, and Thomas 2014).2
If banks create money, they do not need to raise deposits to lend or sell (Werner 2014). Still, they must avail themselves of the cash and reserves necessary to guarantee cash withdrawals from clients and settle obligations to other banks emanating from client instructions to mobilize deposits to make payments and transfers.
The relevant payment orders are only those between clients of different banks, since the settlement of payments between clients of the same bank (“on us” payments) does not require the use of reserves and takes place simply by debiting and crediting accounts held on the books of the bank.
- Financial Sector
In October 2017, I departed on vacation from Amman to Yemen. When I arrived in Aden, my hometown, Aden received me with its sunny and hot weather that melted the icy coating around my intense longing to see the city again and the pain of being away from my family and beloved country for over two and a half years.
This is a guest post by Bruce Wydick.
It isn’t hard to understand why Andrew Leigh would write a book on randomized controlled trials. A kind of modern renaissance man, Leigh currently serves as a member of the Australian House of Representatives. But in his prior life as an economist (Ph.D. from Harvard’s Kennedy School), Leigh published widely in the fields of public finance, labor, health, and political economy, even winning the Economic Society of Australia's Young Economist Award--a kind of John Bates Clark medal for Australians. His evolution from economist to politician must constantly evoke the following question: What is the best research approach for informing practical policy? In his new book, Leigh leaves little doubt about his answer. Randomistas: How Radical Researchers Changed Our World (forthcoming, Yale University Press) heralds the widespread incorporation of the randomized controlled trial (RCT) into the mainstream of social science.
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