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February 2013

Voices of Youth: Towards a Green South Asia from Pakistan

Kanza Azeemi's picture

At the 9th South Asia Economics Students' Meet on Green Growth, participants shared their vision about South Asian cities of the future. These are their innovative ideas.

South Asia, home to 1.3 billion people, houses some of the world's largest cities: Delhi, Dhaka, Kolkata, Karachi and Mumbai. As urbanization increases, the region will experience a hike in demand, consumption and production. Today, in Bhutan, 34% of the population still lives without electricity. With urbanization and development, carbon emissions from electricity generation and usage are bound to rise. Historically, it can be seen that the more developed a country, the greater its carbon emissions; USA's and Canada's drastic emission rates corroborate this. Although South Asia currently contributes much less to the carbon footprint than the more developed nations of the world, it is imperative to plan development so as to reduce its impact on environment.

How to increase investment in the Middle East and North Africa

The importance of investment promotion: FDI in Middle East and North Africa countries like Morocco could help create jobs for its citizens.

In light of recent political and social unrest in the region, foreign investors are taking a “wait-and-see” attitude to projects in the Middle East and North Africa. For the region’s investment promoters, this demands better, more proactive performance than in the past. Fortunately, although much remains to be done, the investment agencies of the 19 MENA governments are, as a group, off to a good start, according to a World Bank Group report released today.

Global Investment Promotion Best Practices 2012: Seizing the Potential for Better Investment Facilitation in the MENA Region reports on the ability of investment-promoting institutions (IPIs) in 189 countries to handle investor inquiries and provide investors with quality business information through their Web sites. It shows that the MENA region was the only one in the world to achieve significant improvement since the last edition of GIPB in 2009, with the IPIs of Morocco and Yemen among the world's three most improved.

To Give or Not to Give: Getting into Your Head

Johanna Martinsson's picture

In a previous blog post, I wrote about a small airfare tax that’s been implemented in a number of countries to help fight three of the world’s deadliest diseases. The idea behind the initiative (UNITAID) is to raise funds by applying a small levy on domestic and international flights; a levy so small that most people do not even take notice. It’s interesting what the success of this method says about us and human behavior. Let’s say, had a traveler been given the option to donate $1 before purchasing the air ticket, the outcome of UNITAID would probably have been very different. While studies show that there’s a strong connection between giving and the level of happiness, most people opt out. Why?

David Brooks of The New York Times points out that “we spend trillions of dollars putting policies and practices into place, but most of these efforts are based on the crudest possible psychological guesswork.” Understanding behavioral sciences is important. As he points out, sometimes “behavioral research leads us to completely change how we think about an issue,” and result in new policy approaches. He’s referring to one well-known example, which has to do with default settings: “Roughly 98 percent of people take part in organ donor programs in European countries where you have to check a box to opt out. Only 10 percent or 20 percent take part in neighboring countries where you have to check a box to opt in.” There’s something magical about the check box!

Controversy Continues to Hound Groundhog Day Celebrations

Dan Hoornweg's picture

Punxsutawney Phil, Groundhog's DayPunxsutawney, Pennsylvania: Saturday around 7:00 am, Punxsutawney Phil (PA, USA) emerged from his burrow, did not see his shadow and predicted an early end to winter. A few minutes later and a few hundred miles north, Wiarton Willie (ON, Canada) surfaced, didn’t see his (or is it her) shadow and also predicted an early spring.

Once again, like last year, immediately after the groundhogs issued their prognostications, the Houston and Calgary based ‘Committee for Climate Certainty’ rebutted the groundhogs’ findings, claiming the science was uncertain. The Committee released several years of hacked emails between Wiarton Willie and Punxsutawney Phil – “What are we going to do about those climate doubter’s concerns? We are likely to have a repeat of last year.” Willie is purported to have written Phil in an email. “Let’s stick to the date, fudge the timing, and hope no one notices,” Phil is reported to have responded.

Is Tanzania Raising Enough Tax Revenue?

Isis Gaddis's picture

Let's think together: Every Sunday the World Bank in Tanzania in collaboration with The Citizen wants to stimulate your thinking by sharing data from recent official surveys in Tanzania and ask you a few questions.

The overall tax burden in a country is largely determined by the role that citizens expect the State to play in the economy.  People are paying more taxes in France than in the US, not because the French are richer but because they expect more public services from their government.  For this reason, no single 'optimal' tax burden can be applied uniformly.Tanzania’s tax revenues by the central government were equivalent to 15.7 per cent of GDP in 2011/12.  This was higher than Uganda (12 per cent) but lower than Zambia (16.5 per cent) and Kenya (19.5 per cent).

Apps against domestic violence: 21st-century solutions to an old problem

Hasan Tuluy's picture

También disponible en español

There is a statistic that both astonishes and troubles me: the leading cause of injury to women is not traffic accidents, crime or serious disease. It is domestic violence.

One in four women will fall victim to this type of violence in her lifetime. In other words, a quarter of the female population, a shocking figure that reminds us that these are not anonymous women, but rather acquaintances, colleagues, neighbors, people we run into on the subway every day. 

Microenterprises in Mexico: Motives for starting operations, expectations, size and financing

Pablo Peña's picture

Standard microeconomic theory establishes profit maximization as the ultimate goal of all enterprises. The entrepreneur’s motive for starting a business is not considered as a variable that could affect that goal. However, enterprises are not all the same. Across different countries, many entrepreneurs report non-pecuniary benefits as the primary reason for starting their business—and Mexico is not an exception. Those benefits include “flexibility” and “independence.” For other entrepreneurs, starting a business was a second option, only pursued after being laid off. These motives are especially common for microenterprises, which represent the large majority of businesses in Mexico.

In this study we shed light on how the motives for starting a business help explain differences in expectations and performance of firms. Different expectations mean different appetites for financing. A significant number of microenterprises’ owners in Mexico claim they do not need external financing. Moreover, most microentrepreneurs do not perceive the lack of financing as an obstacle for their businesses. Many of these businesses have little desire to grow or innovate, if any.

Are John Henry Effects as Apocryphal as their Eponym?

David McKenzie's picture

Many people are aware of the concept of a “placebo effect” in medicine and of the idea of a Hawthorne effect – in both cases the concern is that merely being treated can cause the treatment group in an intervention to change their behavior, regardless of what the treatment actually is.