- Following on my book review of Grit, Lee Crawfurd uses surveys from 10 developing countries to examine the correlations between grit and income, years of education, and learning outcomes - and finds grit has a statistically significant correlation with schooling in each country (but explains very little of its variation), and has no significant correlations with either income earned or learning achieved.
- A summary of the evidence on the effects of naturalization/becoming a citizen on labor market outcomes via IZA World of Labor
- Tim Harford on experiments on incentivizing workers, including new work by John List and co-authors on incentivizing pilots “If you want people to do a good job, tell them what success looks like to you — and that you’ve noticed when they’ve achieved it.”
- The p-hacker app by Felix Schönbrodt – train your expert p-hacking skills.
- How development can go horribly wrong on a small island – Australia’s Earshot podcast on the Secret History of Nauru (look for episode 6/12/2016) – including phosphate mining, offshore banking, and even an investment in one of the worst WestEnd musicals
- Bruce Wydick on how development economists need to do more diagnosis before trying to measure impact
- Papers and keynote presentations from the ABCDE conference this week are now up online
- NEUDC will take place at MIT Sloan Nov 5-6, with submissions due August 15. So get busy working on those papers this summer.
Afghanistan’s Bamyan province is best known for its ancient statues of Buddha, destroyed 15 years ago by the Taliban government. Today, its relative security and freezing winters are aiding the growth of a fledgling skiing industry. Mukhtar Yadgar explains how a radio station is helping local people discuss its potential for growth.
A five minute drive from the site where the ancient Buddhas of Bamyan once stood, a radio mast sprouts from the ground. It belongs to Radio Bamyan, a local radio station in one of Afghanistan’s most mountainous regions. It’s summer now and wisps of brown dust rise up with the heat, yet in the winter months, Radio Bamyan’s roof is covered with snow.
Bamyan’s frosty winter weather, steep slopes and relative security have popularised skiing in the province. However, there are no ski-lifts, no chalets and certainly no après-ski. In the absence of sporting infrastructure, it was recently announced that two skiers from Bamyan will be representing Afghanistan at the 2018 Pyeongchang Winter Olympics in South Korea.
Bamyan is also the venue for the annual Afghan Ski Challenge – which counts ‘no weapons allowed’ amongst its rules. Yet despite these successes suggesting a potential new ski-tourism destination, most of the local population, a relatively poor community, has had little opportunity to discuss what the growth of the skiing industry would mean for them.
Daw Aung San Suu Kyi, state counselor of Myanmar and Nobel Peace Prize winner, told representatives from governments rich and poor at a meeting this week in Myanmar that reducing poverty and ensuring that everyone benefits from economic growth calls for a deep focus on addressing the challenges of fragility and conflict, climate change, gender equality, job creation, and good governance.
Suu Kyi was speaking at the opening session of a meeting of the International Development Association (IDA), the World Bank’s fund for the poorest, where donors, borrower representatives and World Bank Group leadership are brainstorming ways to achieve these goals. She said that Myanmar’s real riches are its people, and they need to be nurtured in the right way.
This week, more than fifty donor governments and representatives of borrowing member countries are gathering in Nay Pyi Taw to discuss how the World Bank’s International Development Association (IDA) can continue to help the world’s poorest countries.
IDA financing helps the world’s 77 poorest countries address big development issues. With IDA’s help, hundreds of millions of people have escaped poverty. This has been done through the creation of jobs, access to clean water, schools, roads, nutrition, electricity and more. During the past five years, IDA funding helped immunize 205 million children globally, provided access to better water sources for 50 million and access to health services for 413 million people.
Global Commission on Internet Governance
Internet governance is one of the most pressing global public policy issues of our time. Some estimates put the economic contribution of the Internet as high as $4.2 trillion* in 2016.1 The Internet of Things (IoT) could result in upwards of $11.1 trillion in economic growth and efficiency gains by 2025.2 And, the Internet is more than simply a system of wealth generation; it also acts as a platform for innovation, free expression, culture and access to ideas. Yet across multiple levels, the Internet’s basic functionality and the rights of users are under strain.
The Lopsided Geography of Wikipedia
Think about how often, in the course of a week, you visit Wikipedia. Maybe you’re searching for basic information about a topic, or getting sucked into a wiki-hole where you meant to study up on the “Brexit” but somehow find yourself, several related pages later, reading about the carbonic maceration process for making wine (to take just one example that has totally never happened to me). Now imagine you can’t access Wikipedia. Or you can, but not in your native language. Or there are plenty of entries in your language, but few on the subjects that are part of your daily life. Or those entries exist, but they’re not written by locals like yourself. You certainly have other ways of getting information. But Wikipedia is one of the most ambitious information clearinghouses in human history. How would these challenges shape your understanding of the world? And how would that understanding differ from the worldview of those who don’t face such challenges?
It does not happen often that one of the finest actors of our time tweets about a World Bank supported project and invites all his fans to have a look at the impressive pictures taken from space. In fact, I can’t remember having seen that before.
But this is what Oscar winner and climate activist Leonardo DiCaprio did a few months ago when the Noor Concentrated Solar Plant (CSP) in Morocco—the largest CSP plant in the world - was opened. Once finalized, in two years, it will provide clean energy to 1.1 million households. I visited the plant two weeks ago and it is truly an impressive site. The indirect benefits of the project might even be larger: it has advanced an important and innovative technology, it has driven down costs of CSP, and it holds important lessons for how public and private sectors can work together in the future.
I am proud that the World Bank, jointly with the African Development Bank and a number of foreign investors, supported this cutting-edge solar energy project. But it was made possible thanks to the Climate Investment Funds (CIF), which put in US$435 million to “de-risk” the investment, playing an essential role to kickstart the deal.
The World Economic Forum describes this transformation as the “Fourth Industrial Revolution,” because the speed and extent of disruption is unprecedented.
A key trend of this revolution is the emergence of technology-enabled, peer-to-peer and business-to-peer platforms that facilitate commerce. These platforms – most commonly referred to as the “sharing economy” or the “collaborative consumption economy” – have grown exponentially in recent years, disrupting existing industry structures and value chains in developed and emerging markets.
Notably, growing internet and mobile penetration catalyzed the growth of disruptive firms and innovations, such as Uber and Airbnb, in a number of middle- and low-income countries. However, as highlighted by the 2016 World Development Report, for this digital revolution to be inclusive, and for it produce dividends for the poor, its “analog complements” – such as the institutions that are accountable to citizens and the regulations that enable workers to access and leverage this new economy – should also be in place.
The global proliferation of these collaborative platforms poses new challenges for regulators trying to keep pace with rapidly evolving business models. This issue was at the heart of discussions between former Head of Public Policy at Facebook, Uber and DJI, Corey Owens, and Professor of Law at Howard University and former regulator at the Federal Trade Commission, Andy Gavil, at the 2016 Business Environment Forum that took place in Washington from May 17 to 19.
Max Lawson is back again (he seems to have more time to write now he’s Oxfam International’s policy guy on inequality) to discuss tax morality and a bizarre encounter with a Buddhist accountant.
A few years ago I went on a hiking holiday with a number of people I didn’t know, and ended up befriending a tax accountant. He was a very nice man, who had been going through a bit of a mid-life crisis, his children had grown up and left home, his wife was not very interested in him, and he had developed an interest in Buddhist philosophy. Anyhow, after a few days, he revealed to me that over the last five years he had started defrauding a firm he had been working for, to the tune of several million pounds a year. He was not taking the money for himself, but was abusing their trust in him, by not telling them about the latest tax avoidance schemes, meaning that they were systematically overpaying tax to the government.
I was reminded of this surprising suburban Robin Hood figure by the rash of stunning leaks on tax prompted by the whistle-blowers of the last couple of years, starting with the Luxleaks, then Swissleaks, and then the mother of all leaks, the Panama Papers. All have involved incredibly brave accountants or bankers risking a huge amount to get this information into the public domain. The two former employees of PricewaterhouseCoopers who leaked information on tax breaks for major corporates such as Apple, Ikea and Pepsi in the Luxleaks case are facing years in prison. The Swiss Leaks whistleblower has been sentenced to six years in prison in Switzerland in absentia. Finally, the Panama Papers whistle blower has wisely remained anonymous but I imagine is being hunted by a range of private security firms.
I can only guess at the panic in the boardrooms of the investment banks and particularly at the big four accounting firms – Deloittes, PwC, KPMG and Ernst & Young, who between them have almost complete oversight over the business of aggressive tax planning by the major corporations. But no amount of security software can fully protect any firm from increasing numbers of employees no longer feeling morally comfortable with what they are doing, as ultimately the secrecy of the system is dependent on those that run it being able to look in the bathroom mirror in the morning and feel OK about their lives.