There are two prices in Banda Aceh—the price charged to locals, and that reserved for foreigners. Or as some around here put it the “blue-eyed price” and the “brown-eyed price."
I had heard before coming out that Banda is something of a bubble economy these days from all the local and international organizations and NGOs falling over each other in a rush to spend the big bucks. I didn’t realize then to what extent that’s true, and how much it’s distorting the local economy and perceptions of the people as to the budget limitations some organizations, including IFC, have.
In the Wall Street Journal Mary Anastasia O’Grady, one of the reports' editors, uses the contrasts between Estonia and Chile to claim that:
Tokyo had Godzilla; New York had King Kong. But will Beijing ever be taken seriously as a great world city before it is destroyed by a giant monster?
Imagethief's post is a lot of fun, and we discover that, among others:
Friedman will be at the AEI-Brookings Joint Center on Jan. 9 to discuss 'The Moral Consequences of Economic Growth.' On the menu: the positive connections between growth and morality and recommend policies that could enhance the moral benefits created by rising standards of living. (via GovernanceFocus)
The core problem in foreign aid is to strike a balance between legitimate oversight of how tax dollars are spent and counterproductive overregulation.
This could be the biggest group of major league influencers ever gathered to blog in one online place.
Raghuram Rajan writes on Aid and Growth: The Policy Challenge in Finance and Development. He remains sceptical:
Unfortunately, I'm not sure that even if each micro-intervention works well by itself, they will all work well together. Interventions could affect each other and get in each other's way or vie for the same resources. They could also have adverse spillover effects on the rest of the economy.