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Chart: Pakistan Leads South Asia in Mobile Money

Tariq Khokhar's picture

In 2014, an average of 3% of people in South Asia used a mobile phone to send or receive money. While there are still gaps between how often men and women use these services, Pakistan leads the region with 9% of men and 2% of women moving money on their mobiles. You can find more data on financial inclusion in the Global Findex Database
 

Rural Nepal women empowered to maintain roads

Farhad Ahmed's picture
Bishnu Ghale, an RMG member from Khanigaon, works on the Nuwakot – Malabhanjyang road.

When the earthquake hit on the Saturday of 25th April last year, 35-year-old Bishnu Ghale was working in the fields near her house in Khanigaon VDC of Nuwakot district. The quake destroyed her house, but she was thankful her husband and three children were alive. She was thankful for a steady job, which meant she could quickly muster up the supplies to build a shelter and provide food for her family.

A month before the earthquake, Bishnu started working as a Road Maintenance Group worker, one of a group of 12 men and women who manage a 24 km stretch of rural road from Nuwakot to Malabhanjyang. She looked after the routine maintenance of the road, cleaned the drains, filled pits, cleared minor blockades and planted trees. Working 6 days a week, this earned her up to 11,000 Rupees a month, enough to keep her family going through the difficult months ahead.

Risk in Vienna City Hall

Joaquin Toro's picture
 
The Vienna City Hall (Rathaus) is one of the landmarks of the Austrian Capital. Visitors are amazed by its Gothic architecture and magnificent interiors - which are famous for hosting lavish events and balls. However, perhaps in direct contrast to these types of events, the Wappensaal of the Rathaus hosted the first ever Understanding Risk Austria event.

Where in the 18th century these halls hosted the Viennese bourgeoisie, in January these halls now received disaster risk management professionals, decision makers, policy makers, technical institutions, and representatives from the private sector, NGOs and academic institutions from around Austria to discuss disaster risk management issues in the country.

This demonstration of support for GFDRR and the Understanding Risk brand was an important step in further integrating the rich experience of DRM that Austria offers the global UR community.
 

Quote of the week: Angus Deaton

Sina Odugbemi's picture

Angus Deaton at a press conference at the Royal Swedish Academy of Sciences"Statistics are far from politics-free; indeed, politics is encoded in their genes. This is ultimately a good thing."

- Angus Deaton, a British-American economist. In 2015, he was awarded the Nobel Memorial Prize in Economic Sciences for his analysis of consumption, poverty, and welfare. The Nobel Prize website writes, "To design economic policy that promotes welfare and reduces poverty, we must first understand individual consumption choices. More than anyone else, Angus Deaton has enhanced this understanding. By linking detailed individual choices and aggregate outcomes, his research has helped transform the fields of microeconomics, macroeconomics, and development economics."

Tools of the Trade: The Regression Kink Design

David McKenzie's picture

Regression Discontinuity designs have become a popular addition to the impact evaluation toolkit, and offer a visually appealing way of demonstrating the impact of a program around a cutoff. An extension of this approach which is growing in usage is the regression kink design(RKD). I’ve never estimated one of these, and am not an expert, but thought it might be useful to try to provide an introduction to this approach along with some links that people can then follow-up on if they want to implement it.

How corruption hurts innovation in smaller firms

Caroline Paunov's picture
Firms invest in innovations if they expect future benefits from these investments. Patents and quality certificates are means for firms to claim such exclusive gains. However, in order to obtain quality certificates and patents for innovations firms have to apply to the accredited national institutions. If national officials ask for bribes in exchange of dealing favorably with applications, then the costs of engaging in innovation rise and possibly stop firms from innovating. 
 

Washington’s Metro — the costs of carelessness

Brian Levy's picture

This is the second post in a three-part series from Brian Levy on the manner in which the media, activists and politicians talk about the role of government. This post reveals how multiple layers of government and inattention to quality controls leads to deterioration in performance.

June 22, 2009 WMATA Collision
June 22, 2009 accident on Metro's Red Line
For those who are so disposed, finding instances of government dysfunction can be like shooting fish in a barrel. But the resulting back-and-forth cycle of blame, defensiveness and recrimination can be a dangerous distraction from the crucial task of  getting public agencies that play a central role in our daily lives to work better. Take the example of Washington’s Metro.

Each year, as part of my teaching at Johns Hopkins School of Advanced International Studies, I select a ‘live’ example of the challenge of public management. This year, Washington’s Metro seemed to be a good case to choose — barely a week has gone by without one or another crisis of Metro management making it into the headlines.

The Metro case demonstrates vividly the costs of carelessness in our discourse about government. (In a complementary blog post, I drill more deeply into how this ‘Great Gatsby’ government discourse works. ) But it also points to a possible way forward — how a combination of public entrepreneurship and active citizenship potentially can be leveraged to foster a sustainable turnaround of performance. (For additional detail on the recent Metro experience, here is a link to an article published in the Washingtonian, a few days after I taught the case at SAIS.)

In the beginning, Metro looked like a success story. It opened its doors to passengers in 1976; its 117 miles of track, over 215 million trips per year (and up-front $9.3 billion capital investment) made it the second largest system in the United States. Washingtonians came to expect a streamlined, comfortable, reliable, and aesthetically pleasing commute. In 1987 and again in 1997, the Washington Metropolitan Area Transit Authority won ‘Outstanding Achievement’ awards from the American Public Transportation Association.

But beneath this success something else was incubating.  By 2001, the key management tasks had become routine operational ones – but Metro’s long-time (1996-2006) general manager, Richard White, was not one to sweat the details. “He was a frequent visitor on Capitol Hill…He drove to work….He was part of the regional dialogue about highways and land use and everything else….[he] didn’t spend much time mingling with the rank and file”. The system began to decay. In 2006, the Metro board terminated his contract, three years early.

Weekly links February 5: the future of the World Bank, education reforms, nutrition evidence, and more…

David McKenzie's picture
  • The latest Journal of Economic Perspectives has two papers on the role of the World Bank: Clemens and Kremer on its role in facilitating international agreements to reduce poverty; and Ravallion on the role as a knowledge bank. Clemens and Kremer have a nice list of policy areas where developing countries have dramatically changed policies following World Bank involvement and conclude that “While it is impossible to quantify the Bank’s policy influence in a precise way, our judgment is that Bank donors are getting a tremendous amount of policy influence with their limited funding. This influence comes both through deals that link Bank finance to policy reform and through the Bank’s soft power. For this reason, allocating more resources to the Bank would be desirable.”
  • The JEP also has a nice summary by Larry Katz of Roland Fryer’s work.
  • The wonkblog on how much evidence there is (or is not) behind nutrition guidelines, and how evidence interacts with public policy demands – and of the difficulties of using RCTs in this context but also the dangers of veering towards nutritional nihilism
  • Finally, if you wonder why your emails don’t get replied to, here is PhD comics

Why does efficiency-seeking FDI matter?

Cecile Fruman's picture
Today we face an interesting paradox. The number of people in the world living in extreme poverty has decreased dramatically in the past three decades. In 1981 half of the population in the developing world lived in extreme poverty. By 2010, despite a 60 percent increase in the developing world’s population, that figure dropped to 21 percent.

While extreme poverty has diminished, however, the gap between the richest and poorest countries has increased dramatically. In 1776, when Adam Smith wrote The Wealth of Nations, the richest country in the world was approximately four times wealthier than the poorest. Today, the world’s richest country is more than 400 times richer than the poorest.

What separates them?

One answer is knowledge, diversification and the composition of exports, all areas in which foreign direct investment (FDI) has an important role to play. 

FDI matters, but not all FDI is created equal
 
While FDI is important for economic growth, not all FDI is the same. One way to differentiate is by an investor’s motivations using a framework established by British economist John Dunning:
  • Natural resource-seeking investment: Motivated by investor interest in accessing and exploiting natural resources.
  • Market-seeking investment: Motivated by investor interest in serving domestic or regional markets.
  • Strategic asset-seeking investment: Motivated by investor interest in acquiring strategic assets (brands, human capital, distribution networks, etc.) that will enable a firm to compete in a given market. Takes place through mergers and acquisitions.
  • Efficiency-seeking investment: FDI that comes into a country seeking to benefit from factors that enable it to compete in international markets.

This last category – efficiency-seeking FDI – is particularly important for countries looking to integrate into the global economy and move up the value chain.
 


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