Monday’s announcement of the 2017 Nobel Prize for economics, to Richard Thaler, for his groundbreaking work incorporating psychology into economic theory, was a victory not only for the University of Chicago Professor and co-author of Nudge: Improving Decisions about Health, Wealth, and Happiness, but for behaviorally-informed policy worldwide.
The World Region
The 2018 World Development Report (WDR), Learning to Realize Education’s Promise, launched this week. While it draws on research and collective experience—both from within and outside the World Bank—it also draws on the personal experience of the team members, including the two of us. What inspires the focus on learning for all is that we both have seen the possibilities of widely shared learning, but we’ve also seen what happens when those possibilities aren’t fulfilled.
Equality of opportunity is a popular policy objective around the world. It is deeply embodied in the American Dream and has resonated with politicians ranging from Margaret Thatcher to Nelson Mandela. It is also connected to the World Bank’s goal of shared prosperity; individuals with low opportunities should have a chance of growing and prospering in life.
Who doesn’t enjoy an afternoon at the movies? Yet sometimes a cinema screening can be more than just fun. An experiment in Uganda demonstrates how an inspiring, relatable figure in a movie can actually help students to pass their math exams.
We all benefit from role models, whether it’s in school, work, or our personal life. A role model shows us how we can be more or achieve more. In Madagascar, a role model (in this case, an “educated person with high income, who grew up in the local school district”) sharing her life story at a school significantly increased students’ test performance. (Notably, the effect only materialized when the role model had come from a poor background, not when she came from a well-off background.) In Uganda, women who work in male-dominated sectors – and subsequently make much more money – point to the importance of role models in showing them they can succeed.
Researchers in development often hope that their research can ultimately influence policy. But getting from research results to policymaker persuasion is an ongoing struggle. Yesterday I heard insights on this point from Dasmine Kennedy of Jamaica’s Ministry of Education as well as Albert Motivans from Equal Measures 2030. (I also gave my two cents.)
There are many views about how a country develops. Some view institutions as the key determinant, while others emphasize the fundamental importance of human capital. Still others highlight the importance of infrastructure, while the World Bank and other international organizations have argued for improving the overall business environment in which firms operate. Finally, a recent strand of literature has emphasized the importance of agglomeration economies as a source of long-term growth. What, however, are the relative explanatory power of these alternative, though not necessarily-mutually exclusive, views? And are their effects specific to the context such as the level of development, the sector in which a firm operates, firm size and age? Answering these questions is important because governments only have limited resources to deal with key challenges. If there are bottlenecks to a country’s development, it is important to diagnose these to provide a sounder basis for policy.
Cities now drive as much as 80% of global GDP. They also consume close to two-thirds of the world’s energy and produce over 70% of global greenhouse gas emissions. And given the sheer scale of urban growth worldwide, these numbers are only expected to increase. Not surprisingly, cities are rapidly becoming the epicenters of economic growth, spurring innovation, fortifying institutions and nurturing the social fabric of dynamic communities.
Metals and mineral prices increased 8 percent, led by a 15 percent jump in nickel prices. All metal prices posted strong increases. Precious metals prices gained 4 percent led by a 5 percent increase in silver.
Countries around the world have experimented with “school report cards”: providing parents with information about the quality of their school so that they can demand higher quality service for their children. The results have been mixed. Andrabi, Das, and Khwaja bring a significant contribution to that literature in last month’s American Economic Review with their article using data from Pakistan, “Report Cards: The Impact of Providing School and Child Test Scores on Educational Markets.”
Energy commodity prices increased 3 percent in July, led by a 3 percent gain in oil and 8 percent surge in coal, the World Bank’s Pink Sheet noted.
Agriculture prices rose 1 percent, led by 2 percent gains in oils & meals and beverages. Most other groups registered small increases, including raw materials (up nearly 1 percent). Fertilizer prices declined 1 percent.
Metals and mineral prices increased 5 percent, led by an 18 percent jump in iron ore prices. All base metal price recorded strong increases. Precious metals prices fell 2 percent led by a 5 percent decline in silver.
The pink sheet is a monthly report that monitors commodity price movements.
Most commodity price indexes rose in July.