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Africa’s Hidden Underemployment Sink

Ellen McCullough's picture

Labor productivity in Sub-Saharan Africa has been garnering attention recently. Development economists focus on labor productivity because it tends to be strongly associated with overall well-being measures, especially for the poor, who are reliably endowed with time, but often little else in the way of productive assets.
 
Cross-sector gaps in labor productivity are key indicators of structural change, which is the economy-wide process by which labor shifts from low-productivity industries such as agriculture, to those that are higher-productivity, such as industry and services. This process underpins development and is premised on large cross-sector gaps in productivity. Economists expect these gaps to be quite large in the poorest countries, and to get smaller as labor shifts out of agriculture. Recent evidence suggests these forces are indeed at work in Sub-Saharan Africa.
 

Examining Migration Governance in India

Irudaya Rajan's picture
The World Bank classifies India as one of the top emigrating countries in the world with a stock of 13.88 million Indians worldwide as of 2013. India also figures in three of the top five emigration corridors in the South Asia region, that is, India–United States, India–Saudi Arabia, India–United Arab Emirates where the stock of migrants are estimated to be beyond 2 million.

The things we do: Mobilize your potential through self-talk

Roxanne Bauer's picture

People often talk to themselves.  This was once thought to be a hallmark of the self-absorbed.  Social science research, however, suggests it may be a powerful way in which we can motivate and cheer ourselves on.

thinkingHave you ever spoken to yourself?  Have you spoken to yourself in third person? Most of us have done so, but we may not have considered why we do it.

In 2013, Malala Yousafzai appeared on the Daily Show and Jon Stewart asked her when she realized the Taliban had made her a target. She begins her answer in first person but switches to third person part-way through, saying “When in 2012 I was with my father and someone came and she told us ‘have you seen on google if you search your name that the Taliban have threatened you?’ I could not believe it. I said ‘No, it’s not true.’ Even after when we saw it, I was not worried about myself that much. I was worried about my father because we thought the Taliban are not that cruel that they would kill a child because I was 14 at that time. But then later on, I started thinking about that. I used to think a Talib would come and kill me. But then I said, ‘If he comes, what would you do, Malala?’ Then I would reply to myself that, ‘Malala, just take a shoe and hit him.’ But then I said, ‘If you hit a Talib with a shoe then there would be no difference between you and the Talib.’ ”

Ethan Kross, a psychologist at the University of Michigan, studies self-talk, the introspective conversations we have with ourselves about ourselves, and believes that speaking to or about ourselves in the third person may be one way in which we help ourselves cope.

Promoting gender equality—lessons from India

Ejaz Ghani's picture
A central driver of economic growth is the increased role of women. This comes in many forms: increased female labor force participation, reduced discrimination and wage differentials that encourage greater effort, and improved advancement practices that promote talented women into leadership and managerial roles. Indeed, empowering half of the potential workforce will have significant economic benefits that goes beyond promoting just gender equality. 
 

And the gold medal for PPP goes to…Galeão International Airport’s record-setting deal

Isabel Marques de Sá's picture
When the Olympic Games comes to Rio in 2016, new medal-worthy sports will include kitesurfing, golf, and rugby sevens. If the Olympic Committee ever considers including our “sport” – the practice of public-private partnerships (PPPs) – the top medal would surely go to the home-grown Galeão International Airport PPP, which set the 2014 record as the largest PPP deal that closed globally. For this gateway to Rio – which is in the midst of preparing to accommodate more than 10,000 athletes and tens of thousands more visitors for the 2016 Olympics – even the concessions merit global rankings.
 
Image: Wikimedia Commons

Standing by for liftoff
The concession of Galeao International Airport (official name: Rio de Janeiro/Galeão–Antonio Carlos Jobim International Airport) got off the ground in the second round of airport concessions. The first round dates back to early 2012, when the government issued tenders for three major airports: Guarulhos (São Paulo), Viracopos (Campinas) and Brasília.  

In mid-2012, following the successful outcome of these three projects, the Brazilian National Development Bank (BNDES) approached IFC to assist with a second round of airport concessions, including Confins airport (Belo Horizonte) and Galeão (Rio de Janeiro).  IFC teamed up with the Estruturadora Brasileira de Projetos (EBP), a project preparation company owned by some of the biggest Brazilian commercial banks and BNDES. Together, IFC and EBP were responsible for the financial, technical/economic/engineering, and environmental studies. 

Technology in Nepal’s classrooms: Using impact evaluation as a learning device

Quentin Wodon's picture


Impact evaluations are key to how we think about development. Pilot programs suggesting statistically significant impacts are hailed as breakthroughs and as candidates for scaling up. Programs without such clear impact tend to be looked down upon and may be terminated. This may not be warranted.  A primary function of impact evaluations should be to improve existing programs, especially in fields where evidence of positive impacts remains scarce. The experience of OLE Nepal, which is part of the OLE network and aims to improve learning and teaching through technology, is instructive in this regard.

How do creditor rights matter for debt finance?

Mahesh Uttamchandani's picture



In the history of famous feuds, there are the Hatfields and the McCoys, the Montagues and the Capulets and, sometimes it seems, lawyers and economists. 
 
As a lawyer, I often find myself in heated debates with my economist friends and colleagues. Where they use data, we use words; where they have faith in rational actors, we know that humans are, sadly, often deeply irrational; and where they want to connect different data points to illustrate a trend, we want to highlight the infinite nuance between those data points that insists against a simple narrative.
 
Yet, despite our seemingly fundamental differences, we do seem to be coming together around the notion that law does matter for finance.  Specifically, that certain kinds of laws (those around creditor rights and insolvency) matter for certain kinds of finance (debt).

In a new paper, published by the European Bank for Reconstruction and Development, my colleague Antonia Menezes and I partnered with two Oxford University scholars, John Armour and Kristin van Zwieten, to show how financial infrastructure laws influence debt finance.

In the interest of full disclosure, I will tell you that all four of us are lawyers. However, John and Kristin are leading academics at the intersection of economics and law in Oxford’s Law and Finance program, and both have advanced degrees in economics.  They can talk the talk and walk the walk!

Clean energy, not coal, is the solution to poverty

Rachel Kyte's picture

 Dana Smillie / World Bank

It is the development conundrum of our era. Extremely poor people cannot lift themselves out of poverty without access to reliable energy. More than a billion people live without power today, denying them opportunities as wide-ranging as running a business, providing light for their children to study, or even cooking meals with ease.

Ending poverty requires confronting climate change, which affects every nation and every person. The populations least able to adapt – those that are the most poor and vulnerable – will be hardest hit, rolling back decades of development work.

How do we achieve the dual goals of expanding energy production for those without power and drastically reducing emissions from sources such as coal that produce carbon dioxide, the primary contributor to climate change?

There is no single answer and we cannot ask poor communities to forego access to energy because the developed world has already put so much carbon pollution in the air.

An array of policies and programs backed with new technology and new thinking can — if combined with political will and financial support — help poor populations get the energy they need while accelerating a worldwide transition to zero net carbon emissions.

Fukuyama’s history of the state, book 2: Political Order and Political Decay

Duncan Green's picture

Last week, I reviewed Volume 1 (from pre-history up to the French Revolution), but before reviewing Political Order and Political Decay, the second volume of Francis Fukuyama’s monumental history of the state, it’s probably worth asking, why bother?

Political Order and Political DecayBecause whether providing/denying services, freedoms or functioning markets, the state is the most important institution underpinning development, and yet people in the foreign policy and development world operate with hazy and simplistic understandings of where states came from and how they evolve. Another example of historical amnesia, alas.

That blindness was epitomised by the 2003 invasion of Iraq, where the US government "seemed to think that democracy and a market economy were default conditions to which the country would automatically revert once Saddam Hussein’s dictatorship was removed." Oops.

According to Fukuyama, that is a particular problem because "If there is a single theme that underlies many of the chapters of this book, it is that there is a political deficit around the world, not of states, but of modern states that are capable, impersonal, well organized and autonomous."

The second volume picks up from the late 18th Century (French and American Revolutions) and brings us up to the present day. It feels both dryer in style and more fragmented than Volume One, hopping between discussions of the spread of democracy, geographical determinism, political Islam, the role of the Middle Classes and the experiences of various continents and countries in the developing world, before returning to Fukuyama’s two overriding interests – will China’s rise continue, and will anything arrest the US’ ‘political decay’? So instead of trying to identify a single thread, here are some highlights/insights:
 

Quote of the Week: Justin Farrell

Sina Odugbemi's picture

Justin Farrell, author of The Battle for Yellowstone"Environmental conflict is not ultimately about scientific true and false, but about moral right and wrong. It is not about the facts themselves, but what makes the facts meaningful. There are important moral and spiritual bases of conflict that observers and participants in the conflict have ignored, muted or simply misunderstood."

- Justin Farrell, Assistant Professor of Sociology at Yale University and the author of The Battle for Yellowstone
 


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