The WSJ reports on the troubles that seasonal rains have brought to northern India. The federal government had previously bought up large quantities of local wheat and rice, and now has no place to store it, so seasonal rains are washing the rice away or causing it to rot. One New Delhi-based think tank says that the solution is simply to bring in the private sector:
More high quality blogging over at Bill Easterly's Aid Watch. Guest blogger Alanna Shaikh asks what the limits of impact evaluation are:
If we limit all of our development projects to those that have easy metrics for success, we lose a lot of programs, many of which support important things like rule of law. Of course, if they don’t have useful metrics, how do we know those programs are supporting the important goals?
In a recent op-ed in the NYT, professors George Loewenstein and Peter Ubel take a swipe at behavioral economics:
David Roodman of the Center for Global Development has written an excellent blog on the woes at Grameen Bank, asking whether Grameen has been fueling a microfinance bubble. Many households in Bangladesh are overindulging in microfinance loans:
Writing in the blog last year, Sarah Iqbal pondered whether the financial crisis was the result of too much testosterone on Wall Street, wondering if things would have been different if women were in charge:
Peer pressure leads to male herding behavior in financially pressurized situations resulting in high risk bets. Women’s propensity for risk-taking, however, seems immune to this type of pressure.
A couple weeks ago, a series of debates, spurred by Paul Krugman, centered on the dynamism of the transatlantic economy.
Yesterday I attended an excellent presentation by John Fingleton, Chief Executive of the UK office of Fair Trading. He discussed his recent paper: “Government in markets – why competition matters – a guide for policy makers".
Rebecca Wilder compares the growth challenges facing Brazil and India. In short, both countries need to increase their savings rates in order to boost overall investment and, in turn, worker productivity.
Editor's Note: Katia D'Hulster is a senior financial sector specialist in the Financial Systems Department of the World Bank. She is the author of a recently-released policy note on the benefits of a non-risk-based capital measure, the leverage ratio, as an additional prudential tool to complement minimum capital adequacy requirements.