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June 2012

U.S. health reform – The cartoon version

Owen Smith's picture

Health Care Reform, by Jonathan GruberIn a landmark decision, the U.S. Supreme Court today upheld the main provisions of President Obama’s Affordable Care Act, including the individual mandate (i.e., everyone must buy health insurance). It represents a major step towards universal coverage for health care in the U.S., something that many countries around the world are striving to achieve.

For those interested in gaining a better understanding of this complex legislation, you can do no better than to start with a graphic novel about the law written by Jonathan Gruber, a professor at MIT and one of the main architects of the Affordable Care Act (and, for that matter, of the Massachusetts health reform that it closely resembles). It’s a great introduction to the policy issues surrounding market failure in health insurance, without having to wade through a dry textbook or World Bank report.

The wisdom of children...and prophets

Andrew Steer's picture

UN Photo/Maria Elisa Franco

We’re changing planes in Panama on our way to the Rio+20 Earth Summit.  As we taxi out to take off the pilot tells us that we’ll need to wait for 15 minutes while we burn off 300 pounds of fuel, since the plane may be too heavy to take off.

My 11 year-old daughter, who is sitting next to me, says “Isn’t this very silly? It’s wasteful and bad for the climate. Why do they do it?” 

We’ve brought Charlotte, together with her 10 year old brother, Ben, on this trip so they can see how country leaders struggle with the big issues, and also because they ask the right questions, and help keep us grounded. I explained to her that the fuel on international flights is totally untaxed by international agreement, and that subsidies on fossil fuels amount to over $400 billion each year, including over $70 billion in rich countries. And that governments spend more than 20 times more paying people to consume more fossil fuels than they spend on research to develop renewable energy.

“That’s stupid”, says Ben, who is not as polite as his sister. It’s like telling your kids not to smoke, and then paying them each time you see them smoking.

They’re right, of course. And one of the rare bright spots in Rio was the airtime given to fossil subsidies by civil society and the private sector. The B20 (the business shadow of the G20) Working Group on Green Growth, of which I am a member, urged G20 leaders to publish subsidy levels each year, and set a time-bound schedule for their elimination. Not so easy for political leaders to grasp this nettle, of course, having seen several countries, most recently Nigeria, find their efforts to raise energy prices hit with violent opposition. I discussed with Charlotte how smart politicians, such as in Indonesia and Iran, have found ways to use a share of the revenues saved to provide cash compensation to the poor. “Makes sense”, she said.

From one billion cars to one billion bicycles

Sintana Vergara's picture

Bike path in New York City

In 1993, when I was 10 years old, my family took a trip to Beijing, where the large boulevards provided us with an image that seemed reversed: bicycles everywhere, punctuated by the occasional car. The young and old rode nearly identical two-wheeled machines to get where they needed to, and the internal combustion engines were sidelined, weaving their way through an army of peddlers. At that time, writes Kristof in 1988, 76% of road space in China’s capital was taken up by bicycles – and one in every two people owned a bicycle (that’s 5.6 million bikes for 10 million people).

Fast forward 20 years: Beijing’s traffic patterns are impressive for a very different reason. Cars now clog the streets, slowing down rush hour traffic to 9 miles per hour, and bicycles have all but disappeared. Chinese consumers have overwhelmingly embraced the car - from 1990 to 2000, their number increased from 1.1 to 6 million (a 445% leap). The hunger for cars is growing; China is now home to over 78 million cars, of which 6.5 million are in Beijing alone.

Weekly Wire: The Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

International IDEA
Do Accountability Mechanisms in Safety Nets Improve Access to Social Services? The case of Brazil’s Bolsa Família

"This paper was part of International IDEA’s work on “Democracy and Development” in 2011. It was selected as a contribution to stimulate debate on and increase knowledge about the impact of democratic accountability on services. A summary of the papers selected and an analysis on some general trends are provided in “Democratic Accountability in Service Delivery: A Synthesis of Case Studies”

The study analyses a semi-governmental mechanism for accountability called social control councils. Through this mechanism beneficiaries are supposed to provide feedback on health and education services. However as beneficiaries have been heavily underrepresented in these councils and membership tends to be skewed towards the local government, they have not been able to function as intended." READ MORE

Mashable
How the Arab World Uses Facebook and Twitter

“Social media has been often touted for the role it played in the popular uprisings that have spread across the Arab world since December 2010. Despite the buzz, you may be surprised that only 0.26% of the Egyptian population, 0.1% of the Tunisian population and 0.04% of the Syrian population are active on Twitter.

Of all the countries in North Africa and the Middle East, Twitter is most popular in Kuwait, where 8.6% of the population is active users, defined as those who tweet at least once per month. Facebook’s more popular throughout the region. In its most popular country, the U.A.E., some 36.18% of the population is on Facebook.” READ MORE

Realizing India’s Potential

Kalpana Kochhar's picture

Yesterday, I discussed India’s incredible economic transformation over the last two decades and some of the challenges that the country is currently facing. So, what can India do to reduce the impact of global uncertainty and improve growth performance and boost investor confidence?

India’s firepower to respond to a crisis with traditional monetary and fiscal stimulus is much weaker now than prior to the 2008 crisis. Fiscal space for additional spending is severely constrained in light of continued high deficits. Room for monetary policy easing is modest in light of continued high inflation, and still low real interest rates. Moreover, when investor confidence is at a low ebb as it is in India, easing monetary policy would be tantamount to “pushing on a string.”

Bilan d’une semaine à Rio : du pain sur la planche pour lundi prochain

Rachel Kyte's picture

Nous nous sommes rendus à Rio+20, la Conférence des Nations Unies sur le développement durable, avec la ferme intention d’en repartir munis d’un plan concret, un plan également adressé aux ministres des finances, du développement et de l’environnement qui nous indiquerait les changements à opérer « dès le lundi matin prochain » en vue d’atteindre notre objectif d’un développement durable pour tous.

 

Ce plan, nous l’avons.

Keeping India’s Promise Alive

Kalpana Kochhar's picture

India has been a beacon to the world on how a thriving and vibrant democracy can transform itself into an economic powerhouse. The metamorphosis that took place in the Indian economy after the reforms of the early 1990s is nothing short of spectacular. The Indian economy was transformed into a dynamo of innovation and diversification. This fundamental transformation unlocked two decades of explosive growth in which poverty rates fell by nearly 20 percent, exports as a share of GDP increased nearly five-fold, and standards of living increased by a factor of almost four. This trajectory received but a glancing blow from the 2008 global financial crisis—this resilience was a testimonial to the benefits of the economic reforms of the previous 15 years.

Challenges to India’s Growth

But now, India’s economy once again faces formidable challenges and the fear is that it is considerably less well placed to deal with these challenges than at any time over the past two decades. The global economy is facing a new phase of the crisis characterized by an extreme bout of uncertainty, risk aversion and volatility, this time originating in the Euro Area. Some skeptics have recently questioned: Will India weather this storm as well as it did in 2008-09 and will the story of “Incredible India” remain credible?

Measuring Gender Equality: Why It Matters

Khrystyna Kushnir's picture

“If you believe that talent isn’t determined by gender, race or sexual orientation, but is instead a roll of the genetic dice, then the most productive society will be the perfectly fair one. A society that is blind to gender, race and sexual orientation will choose the best person for the job — not just the best white, straight man,” writes Chrystia Freeland of Reuters.  In other words, fairness is not only a good thing in itself, it also increases productivity.Gender equality can mean a better economy Credit: isafmedia, Flickr Creative Commons

U.S. economists Chang-Tai Hsieh, Erik Hurst, Charles Jones, and Peter Klenow argue that up to 20 percent of the aggregate wage growth in the last 50 years in the U.S. could be explained by expanded opportunities in the labor market for women and African Americans.  The authors of the newly released draft paper "The Allocation of Talent and U.S. Economic Growth” report that in 1960, 94 percent of doctors were white men, as were 96 percent of lawyers and 86 percent of managers. By 2008, these numbers had fallen to 63, 61, and 57 percent, respectively.

UNHCR launches update on a year of crises

Bryce Quillin's picture

The UN High Commission for Refugees (UNHCR) launched its 2011 Global Trends report on refugees, stateless persons and internally displaced persons shortly in advance of World Refugee Day on July 20. Bearing the subtitle of a "year of crises", the report documents that conflicts in Africa contributed to the emergence of over 800,000 refugees last year. This is the highest number in over ten years.


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