These past weeks I’ve visited several southern African nations to assist on-going evaluations of health sector pay-for-performance reforms. It’s been a whirlwind of government meetings, field trips, and periods of data crunching. We’ve made good progress and also discovered roadblocks – in other words business as usual in this line of work. One qualitative data point has stayed with me throughout these weeks, the paraphrased words of one clinic worker: “I like this new program because it makes me feel that the people in charge of the system care about us.”
These past few weeks I’ve been immersed in reviews of health systems research proposals and it’s fascinating to see the common themes that emerge from each round of proposals as well as the literature cited to justify these themes as worthy of funding.
What would blogs be good for if it were not for their intent on steering a bit of controversy?
So here it is… I do not believe that behavior change interventions can effect lasting change in people’s travel patterns unless real choices are available to them within the local context.
Recently I was spending some time with a survey firm in Tanzania, pre-testing a survey. I got to talking with one of the folks working at the firm about how they compensated their enumerators. He made it clear that they follow a fixed efficiency wage (i.e.
There’s a clutch of different research initiatives trying to understand Africa’s political economy and its impact on development and aid. Often, the tone of the political economists can be quite discouraging – Alex Duncan gives a tongue-in-cheek definition of a political economist as ‘someone coming to explain why your aid programme doesn’t work’. There are few practical ‘take aways’ either for large bilateral aid agencies, or NGOs other than ‘give up and become a researcher’.
And that’s pretty much the tone of a logotastic ‘joint statement’ from 5 research programmes based (loosely) in the UK, Denmark, and the Netherlands (The Africa Power and Politics Programme, Developmental Leadership Programme, Elites, Production and Poverty: A Comparative Analysis, Political Economy of Agricultural Policy in Africa, Tracking Development). Here’s some highlights:
An interesting new paper by Ben Olken, Junko Onishi, and Susan Wong gives us some evidence on how incentives can make aid more effective. They look at a community block grant program in Indonesia and compare the effects of these grants with and without incentives. Incentives make a difference.
So what makes people do socially oriented tasks better? An interesting new paper by Nava Ashraf, Oriana Bandiera, and Kelsey Jack shows that money doesn’t matter and recognition makes a big difference.
In this article in the NYT from a few weeks back, there is this quote from Dr. Stefano Bertozzi, director of H.I.V. and tuberculosis for the Bill and Melinda Gates Foundation:
Last month, I blogged about the Special Report on Renewable Energy Sources and Climate Change Mitigation of the Intergovernmental Panel on Climate Change (IPCC), for which I was a coordinating lead author. In that report we found that by 2050, roughly 80 percent of global energy demand could be met by tapping renewable sources. The IPCC’s best-case prediction is contingent on a big caveat, however. It is that government policies must “play a crucial role in accelerating the deployment of Renewable Energy (RE) technologies.”
Fair enough, but which policies work best? Which can be replicated widely? Which sectors need more radical new approaches? Given the complexity of energy technologies, and markets, modes of power generation, transmission, distribution, consumption, metering and billing, and the multiplicity of policies—feed-in tariffs, subsidies, ‘feebates’, renewable portfolio standards, and so on— policy makers are often scrambling for guidance.
As author for the Policy and Deployment chapter of the IPCC report, as well as a member of the Summary for Policymakers’ team, I am pleased to suggest a useful source: a recent Discussion Paper No. 22 produced by my World Bank colleague Gabriela Elizondo Azuela, along with Luiz Augusto Barroso, Design and Performance of Policy Instruments to Promote the Development of Renewable Energy: Emerging Experience in Selected Developing Countries.
Elizondo and Barroso studied grid-connected RE policy options used in six countries—Brazil, India, Indonesia, Nicaragua, Sir Lanka and Turkey. They find that sound governance is an essential condition for the success of policy incentives that aim to accelerate the integration of renewable energy. “For example,” Elizondo says, “legal and regulatory frameworks for grid connection and integration have to be in place before RE policy is introduced.” In the IPCC report we called this the ‘enabling environment’.
I was circumcised in the hospital as a very young infant. Most children do get circumcised in Turkey, although I suspect that many are not as lucky as I was, including my younger brother, who went through the ordeal when he was around six years-old. I remember him in some pain and discomfort for what seemed like a long period of time to me at the time, even though it was probably no longer than a few weeks if not days…
Almost 400 million Indians—about a third of the subcontinent’s population—don’t have access to electricity. This power deficit, which includes about 100,000 un-electrified villages, places India’s per capita electricity consumption at just 639 kWh—among the world’s lowest rates.
The access gap is complicated by another problem: more than three-quarters of India’s electricity is produced by burning coal and natural gas. With India’s rapidly-growing population— currently 1.1 billion—along with its strong economic growth in recent years, its carbon emissions were over 1.6 billion tons in 2007, among the world’s highest.
This is unsustainable, not only from a climate change standpoint, but also because India’s coal reserves are projected to run out in four decades. India already imports about 10% of its coal for electricity generation, and this is expected to reach 16% this year.
India’s national and state governments are taking action to correct this vicious circle of power deficits and mounting carbon emissions. The national government has set a target of increasing renewable energy generation by 40 gigawatts (GW) by 2022, up from current capacity of 15 GW, itself a threefold increase since 2005. Still, renewable sources account for just 3.5% of India’s energy generation at present, so the scale of the challenge is formidable. The cost of meeting it will be high unless the tremendous innovative capacity of India and market reforms can be coordinated to make India a clean energy leader.
Wharton Professor Galit Sarfaty just published a paper on changing norms in international institutions, using as an example the advance of the human rights agenda in the World Bank. The study describes the process of how new norms are adopted - or not - in large organizations and how different factions negotiate their positions. It's well worth a read and spells out the difficulties of reforming organizations and establishing new norms.
- world bank
- Wharton School of Economics
- University of Pennsylvania
- Turf War
- Socializing Norms
- Organizational Reform
- Organizational Culture
- Organizational Communication
- Norm Change
- International Organizations
- Internal Reform
- institutional diffusion
- human rights
- Galit Sarfaty
On Friday, July 23, Michelle Rhee, Chancellor of Washington D.C. Public Schools, dismissed teachers across the city for poor performance. The number of teachers dismissed has yet to be finalized, but at one point, figures were pointing to as high as 240. Other teachers have been placed on probation, and must prove themselves worthy of the high standards Rhee has set for them. She even went so far as to tie teachers’ pay to their performance when negotiating with the Washington Teacher's Union. As a British citizen, I couldn't help but think whether Rhee was taking inspiration from the Iron Lady herself, AKA, Margaret Thatcher - Britain's first female prime minister, who fought many battles against the unions. Whatever the source of Rhee's inspiration, this was an unprecedented step to take. Some may posit that she is addressing what is called, "the widget effect" - the failure to act on differences in teacher effectiveness.
In his 2010 Annual Letter for his foundation, Bill Gates highlighted the need to focus on “helping teachers improve." While many continue to advocate for increased accountability and incentives for teachers, he mentions the need to provide teachers with more and better information on their performance. As he puts it:
“It is amazing how little feedback teachers get to help them improve, especially when you think about how much feedback their students get."
What Are We Doing?
Many of us who work on research and policy advice for developing countries are constantly reminding governments of the need to assess student performance, to improve mechanisms to reward effective teachers and remove those who are not so effective, and to provide information to parents and communities about school quality.
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.
- United Kingdom
- Sri Lanka
- South Asia
- Social Development
- Macroeconomics and Economic Growth
- Culture and Development
- Communities and Human Settlements
- Survival Rate
- Profit Maximization
- Human Behavior
- Edwin Chadwick