Paolo de Renzio and Andrew Rogerson of the Overseas Development Institute argue in Power to Consumers? A bottom up approach to aid reform that for all the fuss about harmonizing aid efforts, competition can be helpful and is a more productive way out of chaos and fragmentation. They propose, for example, that before any donor agency can receive funds from the proposed International Financing Facility, they must be sufficiently highly rated by recipient countries.
In the latest issue of his magazine, Steve Forbes wonders why Mexico’s growth rate is such a disappointment. His answer: unnecessary and burdensome regulation.
The recent issue of the Economist continues their coverage of the importance of cellular phones for development (which we have highlighted before).
The 2005 G8 summit in Gleneagles has come to an end. Despite where you stand on what was (or was not) accomplished, here is what they say about private sector development in the summit’s final statements:
Website effectiveness consultant David Bowen reflects on all the recent discussion about how Africa’s entrepreneurs can play a key role in changing the continent’s future. However, when he goes online to find evidence of African IT-entrepreneurship he finds very little to be optimistic about:
A recent paper by Sendhil Mullainathan looks at development economics through the lens of psychology. On property rights he says:
It was recently brought to my attention that the UK Overseas Development Institute (ODI) has launched a new blog on development, aid effectiveness and G8 issues.
Martin Wolf asks: is aid petrol on a fire, or water on a plant?
There are at least two negative views of aid (needless to say there are many positive ones, too). Both parallel views on the famous 'resource curse': few resource-rich developing countries have grown strongly over the past four decades, while many resource-poor countries have done so. Angola, Nigeria and Venezuela compare poorly with China, Mauritius and Thailand.
The Emerging Markets Group, a consulting firm, organised a recent workshop on Aligning Private Sector Development Instruments with the focus on Africa; I attended. The report is here.
Most of the 'instruments' were cheap money. 'Aligning' them seems to mean, for example, making sure that private firms don't get cheap money when they're small and then run out of cheap money as they start to grow, or making sure the cheap money is spread around equitably.