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Customer Information Is Not a Prescription for Counterfeit Drugs: Guest post by Anne Fitzpatrick

This is the twelfth in our series of posts by students on the job market this year

Recent work has suggested that as many as one-third of antimalarial drugs in sub-Saharan Africa are of low-quality, a catch-all term ranging from effective counterfeit medicines to dangerous “fakes” (Nayyar et al., 2012). The persistence of low drug quality may be attributable to asymmetric information (Akerlof, 1970). Patients do not know their need for treatment, or the drug quality at the time of the purchase. In order to maximize profits, providers may then substitute cheaper, lower quality drugs. Bjorkman et al., (2012) find that fake drugs are particularly common in areas with low levels of customer knowledge about malaria transmission, where customers are potentially easier to deceive. However, the only intervention shown to reduce counterfeit drugs is the introduction of a high-quality competitor (Bjorkman et al., 2012; Bennett and Yin, 2014). Might increased customer information about purchases cause suppliers to improve their drug quality?
I address this question in my job market paper. I implement a randomized audit study in Uganda to measure how suppliers adjust price and quality if customers knew what disease the patient had (i.e., “diagnosis”) or knew the particular drug to buy. I contrast the response of drug quality with service quality, which is also low in developing countries (Das and Hammer, 2014). I find that price falls when customers present more information. Counter-intuitively, I find that both service and drug quality fall when the customer presents more information.

Expanding Africa’s Digital Frontier: Farmers Show the Way

Aparajita Goyal's picture

Agricultural transformation is a priority for Africa. Across the continent, the significant information needs of farmers—accurate local weather forecasts, relevant advice on agricultural practices and input use, real time price information and market logistics—remain largely unmet. To the extent that rural regions are typically sparsely populated with limited infrastructure and dispersed markets, the use of innovative information and communication technologies (ICTs) overcome some of these information asymmetries and connect farmers to opportunities that weren't necessarily available to them earlier. Harnessing the rapid growth of digital technologies holds hope for transformative agricultural development. 

Competing Approaches to Social Accountability

Suvojit Chattopadhyay's picture
Advocates of social accountability approaches believe that regular elections are not enough to bring about a change in service delivery

Seeking accountability from public service providers remains one of the most prominent governance challenges in developing countries. In recent years, there has been a burst of social accountability tools, and NGOs and governments have promoted their use widely. Broadly, social accountability refers to approaches that seek to foster accountability through enhanced civil society engagement.

The advocates of social accountability approaches believe that the regular cycle of elections—in spite of the near continuous cycle of elections for the village councils, state and centre—are not enough to bring about a substantive change in service delivery. In this context, there is the opportunity to experiment with alternative mechanisms of fostering social accountability. Researchers at the Centre for Future State of the Institute of Development Studies, Sussex, UK, conclude from their field studies in Delhi and Sao Paulo, Brazil, that social accountability tools can be used to set the minimum required standard of public services by “highlighting deficiencies in existing provision or entitlements”. This also works when citizens’ demands are “framed in terms of legal or moral rights”.

As a set of approaches for “good governance”, social accountability tools represent an interesting collection of hypotheses. One, that involving citizens in local planning, budgeting and spending decisions will ensure that the design and implementation of public services is pro-poor. Local governments and decentralized systems for local planning and service delivery are the usual form in which this approach manifests itself.

Is it just a matter of teaching poor people their rights? An information campaign for India’s NREGA

Martin Ravallion's picture
It is often the case that poor people do not fully access the public services due to them. Information-based interventions have been proposed as a response. The premise is that lack of information is a decisive demand-side factor inhibiting successful participatory action by poor people to get the services to which they are entitled.

Using an iPad to increase your productivity: a roundup

Adam Wagstaff's picture

It's a while since I blogged about the iPad. I thought it might be useful to pull all my tips on this handy little gadget (including some new ones) together in one post. I'm going to focus for the most part on using it to improve productivity, but there will be some thoughts at the end on using the iPad to have a little fun.  

Get yourself a keyboard and stylus

There's a lot you can do without these add-ons, but they'll dramatically increase your productivity.

There are lots of keyboards on the market — here's a nice review. I waited until the Brydge came out. The Brydge team had functionality in mind, but what sold me was the design — it makes your iPad looks (almost) as cool as the MacBook Air but gives you the advantages of the iPad. 

#7 from 2012: Knowledge Management is Not Mere Dissemination

Paolo Mefalopulos's picture

Our Top Ten Blog Posts by Readership in 2012

Originally published on April 3, 2012

Knowledge, or the lack of, is often associated with the success or failure of development initiatives. For decades, communication’s main role was to fill the knowledge gap between what audiences knew and what they needed to know, with the assumption that this would induce change. We now know that this is seldom the case. In the modernization paradigm, media were expected to provide needed knowledge through messages that could fill knowledge gaps, build modern attitudes, and eventually shape behaviours. After years of under-delivering on their promises, development managers and decision-makers are increasingly realizing that it is not enough to have sound technical solutions and disseminate information in order to have audiences adopt the innovations.

Weekly Wire: the Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Over two billion people now connected to Internet but digital divide remains wide

“While citing the rapid development and growth of the Internet, a top United Nations official today urged greater efforts to bridge the ongoing digital divide and ensure that everyone around the world can harness its benefits.

There were 2.3 billion Internet users worldwide at the end of 2011, the UN Under-Secretary-General for Economic and Social Affairs, Wu Hongbo, said in his address to the Internet Governance Forum (IGF), which opened in Baku, Azerbaijan. In addition, mobile broadband reached more than 1 billion subscriptions, while the use of fixed broadband was estimated at 590 million subscriptions.

“While this progress is surely significant, we have a long way to go in our collective efforts to bridge the digital divide,” he told participants, noting that only a quarter of inhabitants in the developing world were online by the end of 2011.”  READ MORE

Better Nutrition Through Information

Markus Goldstein's picture

In honor of Labor Day here in the US, I want to talk about a recent nutrition paper by Emla Fitzsimons, Bansi Malde, Alice Mesnard and Marcos Vera-Hernandez.   This paper, “Household Responses to Information on Child Nutrition,” is one with a twist – they look not only at nutrition outcomes, but they also try and figure out where these might be coming from – and hence also look at labor supply.  

Yet more on coping with information overload with an iPad

Adam Wagstaff's picture

Last year I wrote a couple of posts on coping with information overload using an iPad, one in July and the other in December. The iPad world continues to develop apace, so  here's a quick update, this one - as requested - complete with links to the apps. 

International development apps

In my last post, I covered three World Bank apps: InfoFinder, which allows you to search in the Bank's documents and reports database, DataFinder which gets you into the Bank's data vaults, and WB Finances which shows you what the Bank is doing in its operational work. The Bank's latest iPad app is the 2012 World Development Report which contains the text of the report plus various additional features. While not an iPad app, the Bank's Open Knowledge Repository is quite iPad-friendly and a great way to search for and access World Bank publications.