Every day we are reminded that the challenges faced in eradicating poverty are multifaceted and include complex economic, social, political, and cultural dimensions. For this reason, we work with a number of partners and experiment with many technologies to try and leverage the right community with the right skills and tools to address a given challenge.
I’ve been meaning to read for the last month this new paper by Orazio Attanasio and co-authors, which is the latest in the still small number of studies to carry out a randomized experiment to measure the impact of microfinance. David Roodman was quick to give his thoughts on it in this post, but I thought I’d also summarize it briefly for you and offer my thoughts.
Tunisia demonstrated one year ago that citizens' voice matters. Accountability is a must. Government legitimacy is key. Starting from Tunisia, a wave of revolutions now commonly referred to as the "Arab Spring" spread to the entire Middle East and North Africa (MENA) region. Citizens demanded voice, accountability and opportunity for all, not only for a selected few and mostly privileged. The World Bank has taken significant steps to support this rapid and positive change.
· A New paper has innovative way of getting data on H1B migrants – they obtained administrative data through a Freedom of Information Act request – and use this for most comprehensive look yet at how high-skilled migrants coming through H1B compare to natives.
Originally posted on Matthew Kahn's personal blog: http://greeneconomics.blogspot.com/
At the World Bank yesterday, I learned about this impressive project. While there are a lot of papers to choose from at this website, the "big picture" is sketched below in the report's Executive Summary.
The following is a direct quote:
"This report considers migration in the context of environmental change over the next 50 years.
The scope of this report is international: it examines global migration trends, but also internal migration trends particularly within low-income countries, which are often more important in this context.
My research in Azolla-Anabaena (AA) began in 1980, when I joined the Institute of Chemical and Environmental Sciences at Escuela Superior Politécnica del Litoral (ESPOL) in Guayaquil, Ecuador. After many years of research and testing with various partners, the World Bank’s Development Marketplace funded “Converting Rice Fields into Green Fertilizer Factories” in 2008. I would like to share with you the successes of this project, which has the potential to change the paradigm of rice production in Ecuador.
Rice in Ecuador is an essential and primary food for most of the population. The country harvests more than 300,000 hectares involving more than 140,000 families. Therefore it is important that rice is produced cost-effectively and in an environmentally sustainable manner. The production costs of rice depend on the type of seed, fertilizer and phyto-sanitary package used to control weed and insects, costs of labor, land preparation, rental equipment for seeding and harvest, and irrigation. The majority of fertilizers are chemical-based, involving heavy imports and causing environmental problems. More than 40% of the fertilizer applied is released into the environment, as plants cannot utilize 100%. In addition, purchases of imported chemical fertilizers for agriculture account for about 30% of current production costs.
How should the relative importance of banks and stock markets change as countries develop? Is there an optimal financial structure—in other words, should the mixture of financial institutions and markets change to reflect the evolving needs of economies as they develop?
Previous research has found that both the operation of banks and the functioning of securities markets influence economic development (Demirguc-Kunt and Maksimovic, 1998; Levine and Zervos, 1998), suggesting that banks provide different services to the economy from those provided by securities markets. Indeed, banks generally have a comparative advantage in financing shorter term, lower risk, well collateralized investments, while arms length markets are relatively better suited in designing custom financing for more novel, longer run and higher risk projects.
However, economic theory also emphasizes the importance of financial structure, i.e., the mixture of financial institutions and markets operating in an economy. For example, Allen and Gale’s (2000) theory of financial structure and their comparative analyses of Germany, Japan, the United Kingdom, and the United States suggest that (1) banks and markets provide different financial services; (2) economies at different stages of economic development require different mixtures of these financial services to operate effectively; and (3) if an economy’s actual mixture of banks and markets differs from the “optimal” structure, the financial system will not provide the appropriate blend of financial services, with adverse effects on economic activity.
These are some of the views and reports relevant to our readers that caught our attention this week.
“Ethical business practices are a critical aspect of sustainability, yet progress towards eliminating bribery and corruption appears to be elusive in the face of persistent headlines such as the recent forced resignation of Avon CEO Andrea Jung, the IKEA incident in Russia and the conviction of former French president Jacques Chirac.
Corruption continues to have a dire effect on the global economy. In fact, The World Bank and the World Economic Forum estimate that corruption costs more than 5% of global GDP ($2.6tn) annually, and estimate that more than $1tn is paid in bribes annually. These organisations suggest that corruption adds 10% to the total cost of doing business globally, and a staggering 25% to the cost of procurement contracts in developing countries.” READ MORE