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LTD Editors's blog

​Friday Roundup: Tackling Inequality, Ushahidi on crisis data, Technology and Africa, Gates on Sachs, and ABCDE sign up

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Ana Revenga, soon to be the head of the Bank's Poverty Global Practice, blogs on the importance of starting early when tackling inequality and also links to a new user-friendly inequality dashboard.

From his days as an MIT professor, to his stint as World Bank Chief Economist, #2 at the IMF, and head of Israel's central bank, Stan Fischer is a towering figure in economics circles. He's just been appointed by Fed Chairwoman Janet Yellen to be her deputy. Read Dylan Matthew's profile of Stan here.

Urbanization as opportunity

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Urbanization deserves urgent attention from policy makers, academics, entrepreneurs, and social reformers of all stripes. Nothing else will create as many opportunities for social and economic progress. The urbanization project began roughly 1,000 years after the transition from the Pleistocene to the milder and more stable Holocene interglacial. In 2010, the urban population in developing countries stood at 2.5 billion. The most important citywide projects -- successes like New York and Shenzhen -- show even more clearly how influential human intention can be. The developing world can accommodate the urban population growth and declining urban density in many ways. One is to have a threefold increase in the average population of its existing cities and a six fold increase in their average built-out area. Another, which will leave the built-out area of existing cities unchanged, will be to develop 625 new cities of 10 million people -- 500 new cities to accommodate the net increase in the urban population and another 125 to accommodate the 1.25 billion people who will have to leave existing cities as average density falls by half.

The effect of aid on growth: Evidence from a quasi-experiment

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The literature on aid and growth has not found a convincing instrumental variable to identify the causal effects of aid. A new World Bank policy research working paper exploits an instrumental variable based on the fact that since 1987, eligibility for aid from the International Development Association (IDA) has been based partly on whether or not a country is below a certain threshold of per capita income. The paper finds evidence that other donors tend to reinforce rather than compensate for reductions in IDA aid following threshold crossings. Overall, aid as a share of gross national income (GNI) drops about 59 percent on average after countries cross the threshold. Focusing on the 35 countries that have crossed the income threshold from below between 1987 and 2010, a positive, statistically significant, and economically sizable effect of aid on growth is found. A one percentage point increase in the aid to GNI ratio from the sample mean raises annual real per capita growth in gross domestic product by approximately 0.35 percentage points. The analysis shows that the main channel through which aid promotes growth is by increasing physical investment.

Friday Roundup: Data on Maternal Mortality, Best and Worst Places to be a Mother, Rewarding Careers, and Mom Magnet

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The World Health Organization, the United Nations, and the World Bank jointly released data and a report on new maternal mortality estimates (1990-2013). Using illustrative charts, the Bank's Development Data Group demographer Emi Suzuki blogs about how the data shows meaningful progress in reducing maternal mortality.

Doing Business methodology updates

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The World Bank Group’s Doing Business project provides objective measures of business regulations and their implementation across economies worldwide and selected cities at the subnational and regional level. The first Doing Business report, published in 2003, covered five indicator sets and 133 economies. The most recent report published in late 2013 covered 11 indicator sets and 189 economies.

As with most key international indicator sets, Doing Business has come a long way since its inception in 2002/2003 and continues to be a work in progress. The report team works to improve the methodology each year and to enhance their data collection, analysis and output. 

Friday Roundup: ​Sources of Humanitarian Aid, Stolen Girls, First Thousand Days, South Sudan, and New Kaushik Basu Paper

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An April briefing paper from 'Global Humanitarian Assistance' analyzes where humanitarian aid comes from and finds that private donors contributed US$4.1 billion in 2012, representing 24% of the total international response. Over a quarter of all international humanitarian assistance came from private donors between 2008 and 2012. The role of these private donors clearly goes beyond purely financial donations. There is an acknowledged rise for example in corporate partnerships, where expertise, human resources and goods are a given.

Changing Mindsets, Empowering People

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The following post is a part of a series that discusses 'mind and culture,' the theme of the World Bank’s upcoming World Development Report 2015.

When it comes to development, one size doesn’t fit all. It is about mindsets that can be transformed to see and do things differently. Taking a cue from this, The Hunger Project believes in empowering people to end their own hunger versus providing them with service delivery.  The Let’s Talk team caught up with John Coonrod, Executive Vice President, The Hunger Project, to know more about building self-reliant communities.

Friday roundup: Malaria, Piketty and Ravallion, Oxfam Challenges IFIs on Inequality, and Global Flows in the Digital Age

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'Our goal: Defeat malaria forever' is the title of a Path blog to commemorate World Malaria Day. Written by Dr. Carlos C. (Kent) Campbell and Bindiya Patel to commemorate World Malaria Day, it stresses that malaria control alone won't be enough to stop the disease.

Meanwhile, the economics world continues to be rocked by Piketty. His powerpoint on Capital in the 21st Century, presented recently at an IMF event where Martin Ravallion played the role of discussant, can be downloaded here. Ravallion provided his own take on historic inequality trends and explained why he thinks there is still hope that extreme poverty in the developing world will continue to fall, thanks in no small part to growth and other factors.

Growth, Inequality, and Social Welfare: Cross-Country Evidence

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Social welfare functions that assign weights to individuals based on their income levels can be used to document the relative importance of growth and inequality changes for changes in social welfare. This method is applied in a new working paper by David Dollar, Tatjana Kleineberg, and Aart Kraay. They find that, in a large panel of industrial and developing countries over the past 40 years, most of the cross-country and over-time variation in changes in social welfare is due to changes in average incomes. In contrast, the changes in inequality observed during this period are on average much smaller than changes in average incomes, are uncorrelated with changes in average incomes, and have contributed relatively little to changes in social welfare.

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