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Development Policy

The Invisible Hand of Development Policy (and why a Development Bank Should Invest in Social Inclusion)

Arjan de Haan's picture

The word “social” tends to be associated with the softer side in the world of economics and development policy. The “social” is generally less well measured, and in the current world of effectiveness thus less actionable. However the “social” does frequently pop up on the dashboard of policy makers and development practitioners, often when things go wrong, when social unrest erupts, and when economic policies do not have the intended consequences. No wonder, hence, that after the Arab Spring and after the global financial crisis with the loss of legitimacy of previous arrangements, social inclusion or cohesion has come to the forefront of the debate.

The reason the “social” is less well defined and measured internationally (although the Indices of Social Development is starting to change this) is similar to the reason it’s difficult to measure what glue or cement does or is in isolation from the pieces it connects. Sociologist are primarily interested in how people relate to each other and to larger societal structures such as public institutions, clubs, elections, etc., and how norms, trust and values alongside interests are of critical importance in guiding individuals’ behaviour. For non-economists, it is heartening to see how Akerlof and Kranton’s Identity Economics is trying to insert identity, norms, and social categories into (economists’) ways of understanding people’s decisions – one hopes that this will lead to a blossoming of inter-disciplinary research that is critical to understand most of not all development challenges.

Longreads: The Way Out of the Food Crisis, Extreme Heat and Global Warming, London 2012 Bridges Divide, Combating Ebola

Donna Barne's picture

Find a good longread on development? Tweet it to @worldbank with the hashtag #longreads.

 

Food crisis warnings are getting louder, with many urging action to head off a repeat of 2007-08’s soaring prices and shortages. The Hindu lists driving forces behind food crises and “corrective steps” in “The Looming Global Crisis and the Way Out.” The story suggests a food crisis is no longer a “freakish phenomenon” in the same way extreme weather is no longer disconnected from global warming. Hot, very hot, and extremely hot summer weather has become more common since 1951, according to research by the National Aeronautics and Space Administration. NASA includes a visualization of temperature changes through the decades in “Research Links Extreme Summer Heat Events to Global Warming.” The just-wrapped London Olympics that dominated the Twittersphere for two weeks wasn’t a mere sporting event, argues The Guardian in “Briefly But Gloriously, London 2012 Bridged the Divide.” The Games at times demonstrated the power to “transcend negative stereotypes and transform perceptions” of developing countries. With concern over an Ebola Virus outbreak easing in Uganda, Development Policy Blog interviews epidemiologist Dr. Kamalini Lokuge, a veteran of responses of Ebola outbreaks, before her trip to the stricken area.

Sadness interfering with work: depression and labor supply in developing countries

Jed Friedman's picture

If economists view mental health as one component of human capital, as we typically view physical health, then it’s a natural step to the corollary view that good mental health leads to productivity enhancing behaviors such as increased labor supply, greater effort, enhanced concentration, and so on. Given its productive role perhaps mental health, often neglected in the policy realm, deserves more attention. Unfortunately there are precious few studies till date that actually establish such a link between psychological health and productivity.

Trying to See Like a Citizen

Shanthi Kalathil's picture

"The most effective citizens are the most versatile: the ones who can cross boundaries. They move between the local, the national and the global, employ a range of techniques, act as allies and adversaries of the state, and deploy their skill of protest and partnership at key moments and in different institutional entry points."
 
This quote and other interesting nuggets come via a new report on citizen engagement from the Development Research Centre on Citizenship, Participation and Accountability (Citizenship DRC) at the UK's Institute of Development Studies (IDS).  Thought-provoking and based on a decade of research spanning 150 case studies in nearly 30 countries, the new report contains a wealth of organized thought on both the changing role of citizens in development and the shifting sands of citizen-oriented development policy. In fact, I found myself highlighting so many different portions, I'm just going to split this post in two.

Is Modern Macro Useful for Development Economics (and Economists)?

Jamus Lim's picture

One of the interesting byproducts of the global financial crisis has been the induced crisis in the economics profession. More precisely, there has been a minor intellectual crisis in macroeconomic thought, with an erosion of what had been previously believed to have been a new synthesis in macroeconomics.