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The World Region

Cycling Backwards to Policy Victory

Willy McCourt's picture

Nick Manning’s two recent blogs (here and here) raise an important issue. On the one hand, people interested in development have big ambitions. We want not just more, but dramatically more people to be educated, healthy and prosperous, to name only three good things. If we are lucky enough to have some influence over governments and development agencies, we might be tempted to work from the top down to get what we want, turning those ambitions into public policies and programs, and rolling them out by the yard like so much cheap office carpet. 
 
But on the other hand, the same human values that make us want those things make many of us sympathize with the bottom-up tradition that takes individual humans or small communities as its starting point. We know how a state planning juggernaut led to the terrible famines in the Soviet Union in the 30s and China in the late 50s.  We know the horrors that followed Year Zero in Cambodia.  Schumacher’s Small is Beautiful and James Scott’s Seeing Like A State are touchstone texts.  Likewise, some of us have an instinctive preference for ‘searchers’ over ‘planners’, ‘positive deviance’ and ‘problem-driven iterative adaptation’.

Better Public Sector Projects Which Don't Matter?

Nick Manning's picture

SDM-IN-042 World Bank In last week’s post, I asked whether Governance and Public Sector Management (GPSM) projects are having much large scale impact. It is tempting to reduce this to the question of why don’t development projects which focus on this work more often (although their track record is perhaps not as limited as some reviews of donor assistance might suggest). From this starting point, recent thinking suggests that donor rigidity and project designs which fix the visible form without improving the underlying public management function are the problem.   
 
The remedy, as set out most prominently in “Problem Driven Iterative Adaptation” and in the World Bank’s own Public Sector Management Approach, suggests that we should focus on the de facto rather than the de jure and adapt the nature of our support as project implementation unrolls. Problem-driven iterative adaptation (PDIA) approaches are referred to in recent reforms of Ministries of Finance in the Caribbean and reform approaches in Mozambique and in Burundi. Bank interventions in Sierra Leone and in Punjab have been cited as examples of this approach in practice.

Growth Without Apology

Shanta Devarajan's picture

 Chhor Sokunthea / World BankFrom time to time, countries experience rapid economic growth without a significant decline in poverty. India’s GDP growth rate accelerated in the 1990s and 2000s, but poverty continued to fall at the same pace as before, about one percentage point a year. Despite 6-7 percent GDP growth, Tanzania and Zambia saw only a mild decline in the poverty rate. In the first decade of the 21st century, Egypt’s GDP grew at 5-7 percent a year, but the proportion of people living on $5 a day—and therefore vulnerable to falling into poverty—stagnated at 85 percent.

In light of this evidence, the World Bank has set as its goals the elimination of extreme poverty and promotion of shared prosperity. While the focus on poverty and distribution as targets is appropriate, the public actions required to achieve these goals are not very different from those required to achieve rapid economic growth. This is not trickle-down economics.  Nor does it negate the need for redistributive transfers. Rather, it is due to the fact that economic growth is typically constrained by policies and institutions that have been captured by the non-poor (sometimes called the rich), who have greater political power. Public actions that relax these constraints, therefore, will both accelerate growth and transfer rents from the rich to the poor.

Some examples illustrate the point.

Nyerere’s Biggest Surprise: An Urban Tanzania

Jacques Morisset's picture

 Scott Wallace / World BankIf Mwalimu Julius Nyerere, the Father of the Nation, visited Dar es Salaam today, there is no doubt he would be surprised at what the city has morphed into since his time. From less than one million people in the early 1990s, Dar es Salaam’s population has grown at an average rate of 5.8 percent annually to reach 4.4 million people today, making it one of the fastest growing cities in the world. It is now estimated that the city will be home to over 10 million inhabitants by 2027.

The urbanization process in Tanzania is a tale of two cities, as illustrated by the recent growth of Dar es Salaam. At first glance, Dar es Salaam looks like a modern city with a panoramic skyline of tall new buildings. But this façade of the modern metropolis quickly gives way to sights of congestion in the city slums, highlighting the realities of poor urban planning and inadequate public services.

Beyond Stuff: Capacity as a Relational Concept

Richard Mallett's picture
What are we talking about when we talk about capacity? The answer should be straightforward, given that ideas of “capacity” and “capacity building” frame the way many of us think about – and do – development. But so often the response is fuzzy and unclear (kind of like “resilience”). This post tries to clarify things a little.

From “filling deficitsto “working politically”

When most people talk about capacity, they actually mean either “stuff” – resources and equipment – or hard skills in some technical discipline. This is the obvious starting point: without proper medical facilities or trained staff, how can a local health clinic do its job? Which is probably why so many capacity building programs try to fill deficits by giving stuff and providing technical training. But often the real problems confronting service providers have nothing to do with what's available in a tangible or technical sense – this might be a symptom, but it's not the root of the problem. So what do we then do in terms of thinking about capacity?

 

The End of the Population Pyramid

Wolfgang Fengler's picture

This is a surfer’s dream: catching a great wave, far from the shore, and riding it for long beautiful moments as it stretches further and further gathering momentum until the very end, when it breaks right at the beach. This is how my generation, born in the 1970s (when the Beach Boys released their iconic Surf’s Up album), should feel, as we are riding on a “global demographic wave” which keeps extending further and further.
 

Nine Reasons why Corruption is a Destroyer of Human Prosperity

Augusto Lopez-Claros's picture

Anti-Corruption billboard In an earlier blog post, we commented on the sources of corruption, the factors that have turned it into a powerful obstacle to sustainable economic development. We noted that the presence of dysfunctional and onerous regulations and poorly formulated policies, often created incentives for individuals and businesses to short-circuit them through the paying of bribes. We now turn to the consequences of corruption, to better understand why it is a destroyer of human prosperity.

Is Inequality the Convenient Villain or a Misguided Obsession?

Jean-Pierre Chauffour's picture

Inequality is back in the news. In his 2014 State of the Union address, U. S. President Obama lamented that, “after four years of economic growth, corporate profits and stock prices have rarely been higher, and those at the top have never done better.  But average wages have barely budged.  Inequality has deepened.  Upward mobility has stalled.”   At the global scale, Oxfam is making the same point, noting in a recent report that the richest 85 people in the world own the same amount of wealth as the 3.5 billion bottom half of the Earth's population. Perhaps more surprising, the rich and powerful CEOs jetting to Davos earlier this year seemed to finally get it: capitalism cannot survive if income and wealth become concentrated in too few hands. Fighting inequality would therefore not only be the morally correct thing to do, it would also be smart economics.  And this is what a recent Staff Discussion Note from the IMF suggests: “inequality can undermine progress in health and education, cause investment-reducing political and economic instability, and undercut the social consensus required in the face of shocks, and thus tends to reduce the pace and durability of growth.”

What the 2004 WDR Got Wrong

Shanta Devarajan's picture

The three points made in my previous post—that services particularly fail poor people, money is not the solution, and “the solution” is not the solution—can be explained by failures of accountability in the service delivery chain.  This was the cornerstone of the 2004 World Development Report, Making Services Work for Poor People.  In a private market—when I buy a sandwich, for example—there is a direct or “short route” of accountability between the client (me) and the sandwich provider.  I pay him directly; I know whether I got a sandwich or not; and If I don’t like the sandwich, I can go elsewhere—and the provider knows that. 
 

Three Changes to the Conversation on Service Delivery

Shanta Devarajan's picture

IN054S13 World Bank Back in 2003, when we were writing the 2004 World Development Report, Making Services Work for Poor People, we had no idea that it would spawn so much research, innovation, debate and changes in the delivery of basic services.  Last week, we had a fascinating conference, in collaboration with the Overseas Development Institute, to review this work, and chart the agenda for the coming decade.   Being a blogger, I wanted to speak about what WDR2004 got wrong, but some of my teammates suggested I should start by describing what we got right.  So here are three ways WDR2004 changed the conversation about service delivery (what we got wrong will be the next post).
 

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