Back in 2003, the World Bank and DFID launched the Global Partnership on Output-Based Aid (GPOBA). Output-based aid ties payment to service providers to the actual delivery of services in water, education, ICT, etc. The appeal is obvious—this is the kind of mechanism that helps "get the incentives right", thereby transferring risk to the service provider, increasing efficiency, and enhancing targeting of the poor.
"Are markets simply casinos for betting?" Asli recently asked this question on the All About Finance blog. She argues that financial markets do a lot more than that, and I agree. But there are some markets that come very close to being casinos. Surprisingly, in the wake of the financial crisis, the U.S.
Some readers have complained in the past that they have gotten error messages when trying to submit comments to the blog. We've put in a request with our software provider to look into the problem, but in the meantime, please send an email to firstname.lastname@example.org if you encounter a problem. We'll be happy to post the comment for you (and we'd also like to know how frequently the problem is cropping up).
PSD alum Tim Harford links to an article by David Roodman at the Center for Global Development, arguing against the cancellation of Haiti's debt:
A couple weeks ago, a series of debates, spurred by Paul Krugman, centered on the dynamism of the transatlantic economy.
Yesterday I pointed to a discussion by Shanta on the relationship between teacher absenteeism and politics.
Editor's Note: Jishnu Das and Quy-Toan Do are Senior Economists in the World Bank's Development Research Group. They are authors of a working paper U.S. and Them: The Geography of Academic Research.