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Incentives and Values in Conflict-Prone Countries

Submitted by Eliana Cardoso on Tue, 11/03/2009 - 15:09
On End Poverty in South Asia

One of the most extraordinary examples of the use of economic principles comes from the beginning of the 19th century, when England used to send a huge number of prisoners to Australia. The government originally paid the ship captain a pre-determined amount for each prisoner that boarded the ship, but half of them would die during the journey. In 1862, Edwin Chadwik, knowing that people respond to incentives, told the U.K. government to pay captains according to the number of prisoners that actually disembarked in Australia. With this adjustment, the survival rate increased from 50% to 98.5%.

This example illustrates how incentives can do wonders in some circumstances. Yet, human actions are not always guided by the same calculations made by a profit maximizing ship captain. Behavioral economists have emphasized that we respond to a deep ingrained sense of fairness. Culture and values are crucial in understanding human behavior and promoting healthy and stable societies.

First round of seasonal workers finishes in Australia

Submitted by Tomas Martin Ernst on Fri, 10/30/2009 - 16:59
On People Move

I've just returned from country Australia evaluating the impact of one of the World Bank's (WB) recent development programs in the region. A WB initiative on the ground in Australia? What is the relationship between country Australia and the Bank's mandate of a world free of poverty?

Photo © Tomas Ernst/World Bank

Following several year's of research and advocacy, the Australian government opened its borders this year to the short-term supply of labour from the Pacific Islands (PIs). Evidence from New Zealand showed that when temporary labour mobility programs are well managed - with the appropriate level of monitoring to prevent worker exploitation and with the right incentives to minimize overstaying - the scheme is win-win for growers and PI workers. Growers enjoy a steady, reliable source of labour and PI workers receive income at least 4-5 times the GDP/capita of their home country.

My colleague Nathan and I travelled to Griffith, New South Wales where six ni-Vanuatu workers were preparing to head home following a six-month assignment picking, pruning and packing fruit. All workers reported a significantly improved financial position, with the majority sending regular remittances to their family members and local villages. In terms of skills acquisition, the training workers received on farms in Australia will benefit them when they return home to agriculture dependant economies of the South Pacific.

Blueprint for Green Schools

Submitted by Sophie Bathurst on Fri, 08/07/2009 - 13:58
On Development in a Changing Climate

The author, Sophie Bathurst of Australia, won first place in an international youth essay competition sponsored by the World Bank and other partners. She answered the question "How can you tackle climate change through youth-led solutions?” The awards were announced in Seoul in June, 2009.

Tree protection zone in Bradleys Head, Sydney
   Photo © Sophie Bathurst

My vision for Australia is that of a nation where healthy people live in a healthy environment.  I believe that Australia's future social and economic prosperity as well as the livelihoods of our Pacific Island neighbours depend on our response to the climate challenge. An effective response demands the engagement of all sectors of society and involves both responsible adaptation to existing environmental problems as well as the mitigation of further climate change.

If we ignore the warnings, we will not only damage our precious ecosystems and lose our water resources but will also have to contend with disruption of services; decline in key industries such as agriculture, tourism and fisheries; and increased health problems for society’s most vulnerable, particularly the elderly and remote indigenous communities.

If we think long-term and embrace the challenge, however, climate change can present an opportunity for youth. It can contribute to the establishment of an energy sector based on renewable and clean fuels, the development of world-class research centres and the implementation of globally recognised education programs in sustainability.

Education lies at the core of an initiative that I proposed recently. I envision a series of new projects for primary schools that will be led by a 'Green Taskforce' composed mainly of unemployed youth. The projects are designed to build confidence and to equip young people with some of the skills required for permanent employment in environmental trades. At the same time, these projects will create a culture of ecological awareness and healthy living within primary schools and teach students to reduce their carbon footprint.

Twittering your way to improved governance

Submitted by Tanya on Fri, 06/05/2009 - 16:47
On Governance Matters

San Francisco is setting the US standard for using technology to improve accountability.  The Mayor recently announced the launch of a 311 Call Center through Twitter. Check out the site here.  San Francisco is the first US city to roll out a major service such as this on Twitter.

Capture and the Financial Crisis

Submitted by Kaufmann on Mon, 03/09/2009 - 17:41
On Governance Matters

There is no 'theory-independent' way of viewing reality.  We see and analyze world events through our own prism, shaped and tinted by upbringing, experiences, training and professional field of expertise. So it is not surprising that when it comes to the many explanations given for the current financial crisis, they differ greatly.

A call for international climate change policy

Submitted by James I Davison on Wed, 11/05/2008 - 17:25
On East Asia & Pacific on the rise

The Garnaut Climate Change Review, compared to other influential reports on the issue, factors in economic growth and intensifying emissions from developing countries.

As news of the financial crisis and U.S. presidential election has dominated headlines in recent months, I find it amazing how quickly other crucial issues can slip to the back of one’s mind. Specifically, I’m talking about the topic of climate change, a major area of concern, particularly for developing countries. As economies stabilize and Americans get ready for a historic change in leadership, the climate change issue will surely come back into focus as leaders around the world make the seemingly inevitable move toward policy reform. Last week, I listened to a man discuss his work, which may influence Australian and international leaders to take steps toward a new framework of climate change policy.

In 2007, state and national governments in Australia commissioned economics professor Ross Garnaut to conduct what ultimately become the Garnaut Climate Change Review. The final report was presented to the Australia’s prime minister in late September and is available for download online.

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