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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: 

Democratising development drop by drop

Jose Luis Irigoyen's picture

Can a new set of brains bring a new set of solutions to water problems? Water is at the heart of some of the world's most pressing development challenges. For example:

  1. human development: diarrhea kills more children than AIDS, malaria and TB combined.
  2. energy security: hydropower is the only renewable energy source currently deployed at scale
  3. food security: agriculture will face increasingly powerful demands to allocate water to urban, industrial and environmental services.
  4. urban development: droughts and floods will grow more intense and frequent in cities.

Video interview with Joe Stiglitz on Financial and Real Crises in the World Economy

Merrell Tuck-Primdahl's picture

According to Nobel-winning economist Joseph Stiglitz, creating jobs amidst today’s low-demand, high-debt environment is a tall order. It will require viable structural employment policies, unemployment insurance for laid off people, and -- in the case of the US – facing up to the inevitable shift out of the manufacturing sector into services.  Stiglitz, who delivered a DEC Lecture at the World Bank on September 26 on ‘The State of the Global Economy: An Agenda for Job Creation’, warned that far more is broken than the banking and financial systems in high income countries. He argues that a lack of aggregate demand is a huge problem that can only be fixed through smart public as well as private investment in education, infrastructure, and innovative technologies to protect the environment. He also described the current phenomenon whereby productivity in manufacturing is exceeding the rate of growth in demand in the sector, which means jobs on factory floors are being shed. In other words, technical change can induce large distributive consequences and lead to long term unemployment. Listen to my interview with him about what can be done to cure our current ills.

Aid for Trade in a World of Shifting Tectonic Plates

John Wilson's picture

Last week, President Zoellick gave a speech at George Washington University in which he outlined his vision of how the aid agenda should adapt to what he described as “shifting tectonic plates,” which has seen the world change dramatically since 1944 when the Bretton Woods system was established. This shift has created a world in which developing countries are now the drivers of the world economy while the developed world is facing severe economic headwinds.

In Zoellick’s vision of a “world beyond aid,” international assistance would be “integrated with—and connected to—global growth strategies, fundamentally driven by investment and entrepreneurship. The goal would not be charity, but mutual interest in building more poles of growth.”

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