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October 2011

Development Thinking 3.0: The Road Ahead

Justin Yifu Lin's picture

It's time for a third phase of development thinking focused on structural change, driven by changes in endowment structure and comparative advantages. The market will be the fundamental institution for resource allocation and the state would play a proactive facilitating role in the process. I make this case because, in two earlier waves of development economics had mixed records. The first emerged after World War II with a focus on market failures and an embrace of traditional structuralist, state-led development policies; the second adopted a largely neo-liberal view that targeted government failures and recommended Washington Consensus-types of policies.

I lay out this argument in the most recent issue of the World Bank Research Observer (subscription required), which synthesizes half a century of various approaches proposed by development economics, and suggested a way forward. My WBRO paper, New Structural Economics: A Framework for Rethinking Development, is critically discussed in the same issue of the journal by Joe Stiglitz, Anne Krueger, and Dani Rodrik

Beyond Universal Coverage Part III

Adam Wagstaff's picture

Should we try to incorporate the cost of forgone care into a measure of financial protection?

In my first post on UC in this series I argued that UC is best thought of as a means to achieving lower inequalities and improved financial protection in the health sector, but that in practice UC is unlikely to be sufficient – and may not even be necessary – for us to achieve these goals.

In this post, I want to probe a little on the measurement of financial protection; in particular I want to ask whether it should incorporate an allowance for forgone care.

The Nuts and Bolts of Trade: Stepping up to Manufacturing in the Development Ladder

John Wilson's picture

With the global recovery slow to pick up speed, the latest World Economic Outlook (WEO) isn’t exactly an uplifting read. However, for those of us with an eye on the developing world there are some bright spots: the low-income-countries (LICs) in Africa, for example, have returned to their pre-crisis growth rates and their economies are expected to expand by a respectable 6.5 percent in 2012. 

Despite this seemingly good news, there are some dark clouds on the horizon. The WEO attributes the quick rebound to the fact that the African LICs were, “largely shielded from the global financial crisis owing to their limited integration into global manufacturing and financial networks.”  Although limited international exposure is a boon in the short-term, it also signals trouble down the road.

Beyond Universal Coverage Part II

Adam Wagstaff's picture

Quantity inequalities may be dwarfed by quality inequalities

In my last post on UC I argued that UC is best thought of as a means to achieving lower inequalities and improved financial protection in the health sector, but that in practice UC is unlikely to be sufficient – and may not even be necessary – for us to achieve these goals.

In this post, I argue that our focus on narrowing inequalities in the quantity of care is leading us to ignore another and potentially more important type of inequality in the health sector: inequality in the quality of care.

Picking winners

Justin Yifu Lin's picture

Concepts derived from structural-change theory are being revived and debated in exciting new ways, as evidenced in a recent conference at the World Bank earlier this month on ‘Structural Transformation and Economic Growth.’ Top researchers presented new papers and new ongoing work that covered globalization and structural transformation, sectoral diversification and human capital, industrial policy, and country case studies. 

The conference revealed an important emerging consensus about the role of the government in providing both soft infrastructure (for example a conducive business environment, regulations, and legal system) and hard infrastructure (such as port facilities, highways, telecommunications, and power).  Indeed, few dispute that broad-based interventions to support industrial upgrading and diversification are crucial to facilitating structural transformation and to spurring sustainable growth. 

On Aid and Growth – reflections ahead of Busan

Finn Tarp's picture

Not a month goes by without some sort of bad news about foreign aid. Examples of incompetence , abuse of funds by corrupt leaders, and distorted incentives abound. These stories fuel a deep skepticism of foreign aid. In this view, perverse effects dominate – and end up weakening, rather than encouraging, growth and development. If one accepts this view, then it is logical to turn off the poisoned tap of foreign aid. But are such views well founded?

The answer is no.

World Food Day, Global Inequality, and Other Links

Swati Mishra's picture

Rising food prices, famine in the horn of Africa, climate change, seasonal hunger, uncertainty about the future of the global food system. 
 
World Food Day and Blog action Day are on October 16, and one hopes this day will inspire many ideas and innovations to tackle the World’s food security challenges. One such idea is - ‘small is beautiful’. Duncan Green explains why small farmers are actually beneficial when it comes to agriculture. One obvious reason is “it puts food into circulation and at the same time boosts the income of some of the poorest people on the planet”. Read his post to know more. Also, revisit the post "Seasonal Hunger" on this blog to know about the specific policy actions that can end the occurrence of this cycle.

Beyond Universal Coverage Part I

Adam Wagstaff's picture

Health sector inequalities and financial protection – is UC enough?

Since the publication of the 2010 World Health Report “Health Systems Financing: The Path to Universal Coverage”, the “universal coverage” (UC) agenda has accelerated worldwide.

In this post, I ask how far UC is likely to narrow health sector inequalities and improve financial protection. In the next two I pick up a couple of other themes: the need to look beyond the quantity of care to the quality of care; and how far we should try to incorporate the cost of forgone care into a measure of financial protection.

Impact of the Financial Crisis on New Firm Registration

Leora Klapper's picture

As reports of sluggish global job creation continue, some look to new firms as a source of net job creation (Haltiwanger, 2011). But the lead article of this month’s Economics Letters, citing panel data from 93 countries, shows that most countries experienced a sharp drop in new firm registration during the financial crisis. As discussed in an earlier blog, relatively larger contractions are seen in countries with more developed financial markets and where entrepreneurs depend more on banks for start-up capital.

Mapping for Results

Soren Gigler's picture

Improving the Impact of Development Assistance Starts With Geography


Where are World Bank projects located and are they making a tangible difference in the lives of developing country communities?

An expanded version of the Mapping for Results (M4R) platform was launched during the 2011 World Bank-IMF Annual Meetings to better enable donors, governments and citizens in answering these pressing questions.

Figure 1: World Bank financed activities in Nepal with poverty map.

Overlaying indicators on poverty, education and health with geographic locations of World Bank financed projects, the M4R platform helps policy makers and civil society groups visualize the distribution of projects, identify beneficiaries and monitor results on development outcomes. Building upon the initial foundation laid in October 2010, the new M4R platform expands the number of countries mapped from 79 to 144, including more than 30,000 locations related to active World Bank-financed projects.

Let’s Talk Development one year on + an invite to readers

Justin Yifu Lin's picture

What kinds of countercyclical policies make the most sense during financial crises? Can going ‘beyond Keynesianism’ by investing in infrastructure restart worldwide demand and help avoid a double dip recession? How can you sort good industrial policy from bad? Is it more important to focus on pragmatic development lessons from other emerging market countries, or should researchers spend most of their time on randomized control trials and experimental approaches to evaluation? These and many other questions were explored during the first year of ‘Let’s Talk Development,’ which we launched on September 28, 2010.

We went live with this blog on that day because it was when World Bank Group President Robert B. Zoellick delivered a speech on ‘Democratizing Development Economics’ at Georgetown University. This blog aimed to attract commentary and insights on breakthrough solutions to development challenges as well as to transmit some of the newest thinking taking hold in the field of development economics. 

Seasonal Hunger: A Forgotten Reality

Shahid Khandker's picture

Harvesting crops. Bangladesh. Photo: Thomas Sennett / World BankThe seasonality of poverty and food deprivation is a common feature of rural livelihood in Bangladesh, but it is more marked in the northwest region of Rangpur.  The recently launched policy interventions in the region provide a test case of what works and what does not in combating seasonal hunger.

Key messages
The analysis of Bangladesh’s experience with seasonal hunger vis-à-vis year-round poverty shows a clear distinction between what is observed and what is excluded from placement and evaluation of poverty-mitigation policies, based on official poverty statistics. The key recommendations from this analysis are as follows: