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  • Author: David M. Malone, Rohinton P. Medhora
  • Publication Date: 11-2013
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Notions of development have varied over time, and so an account of the international organizations concerned with its advancement must be accordingly elastic. The roots of international organizations concerned with development lie in two aspects of global inter-connectedness. The first is the propagation and management of a nascent technology for the global good. Thus were born the International Telegraph Union (ITU, now the International Telecommunication Union) in 1865 and the General Postal Union (GPU, now the Universal Postal Union) in 1874.
  • Topic: Development, Economics, Emerging Markets, International Cooperation, International Organization, Post Colonialism
  • Author: Augustin Kwasi Fosu
  • Publication Date: 01-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The study presents recent global evidence on the transformation of economic growth to poverty reduction in developing countries, with emphasis on the role of income inequality. The focus is on the period since the early/mid-1990s when growth in these countries as a group has been relatively strong, surpassing that of the advanced economies. Both regional and country-specific data are analysed for the US$1.25 andUS$2.50 level poverty headcount ratios using the most recent World Bank data. The study finds that on average income growth has been the major driving force behind both the declines and increases in poverty. The study, however, documents substantial regional and country differences that are masked by this 'average' dominant growth story. While in the majority of countries growth was the major factor behind falling...
  • Topic: Development, Economics, Poverty, Third World
  • Political Geography: United States
  • Author: Peter Warr
  • Publication Date: 01-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Thailand's development strategy has been strongly market-oriented and open to trade and investment flows with the rest of the world. Since the late 1950s, its growth performance has been outstanding. Poverty incidence has declined dramatically, but economic inequality has increased. Economic progress has been reflected in very significant improvement in non-economic indicators of well-being such as life expectancy, infant and maternal morality, and literacy. Nevertheless, the performance of the education system is chronically poor. Environmental problems and institutional failures in resource management are ongoing. Reform is needed in several areas, including political and corporate governance, regulation of industry, and in the education and health systems.
  • Topic: Development, Economics, Education, Emerging Markets, Poverty, Foreign Direct Investment
  • Political Geography: Asia, Southeast Asia
  • Author: Samuel Kobina Annim
  • Publication Date: 01-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper examines the combined effect of interest rates and poverty levels of microfinance clients on loan size. Cross section data on 2,691 clients and non-clients households from Ghana is used to test the hypothesis of loan price inelasticity. Quantile regression and variants of least squares methods that explore endogeneity are employed. We find the expected inverse relationship only for the 20th to 40th quantile range. The semi-elasticity of loan amount responsiveness to a unit change in interest rate is more than proportionate and significant for the poorest group only. Market segmentation based on poverty level is suggested in targeting and sustaining microfinance clients.
  • Topic: Development, Economics, Markets, Poverty, Foreign Aid
  • Political Geography: Africa
  • Author: Sam Jones
  • Publication Date: 01-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The recent financial crisis has rekindled interest in the foreign aid supply behaviour of bilateral donors. Using the latest data covering the period 1960-2009, this paper examines how such behaviour is related to domestic factors. Based on a simple empirical model, a distinction is made between long-run supply trends and short-run dynamics, which motivates use of error correction methods. Panel econometric techniques are employed that are consistent in the presence of parameter heterogeneity and cross-section dependence. Results support the error correction framework, but point to very substantial heterogeneity between countries. There is also good evidence that donor behaviour continues to evolve over time. As such, past trends in aid supplies are unlikely to provide a good guide to those of the future.
  • Topic: Development, Bilateral Relations, Foreign Aid, Financial Crisis
  • Author: Ravi Kanbur, Dennis Rodgers, Jo Beall
  • Publication Date: 01-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper argues for a more systemic engagement with Latin American cities, contending it is necessary to reconsider their unity in order to nuance the 'fractured cities' perspective that has widely come to epitomise the contemporary urban moment in the region. It begins by offering an overview of regional urban development trends, before exploring how the underlying imaginary of the city has critically shifted over the past half century. Focusing in particular on the way that slums and shantytowns have been conceived, it traces how the predominant conception of the Latin American city moved from a notion of unity to a perception of fragmentation, highlighting how this had critically negative ramifications for urban development agendas, and concludes with a call for a renewed vision of Latin American urban life.
  • Topic: Development, Poverty, Urbanization
  • Political Geography: Latin America
  • Author: Konstantin M. Wacker
  • Publication Date: 01-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper first shows that important economic arguments in favor of the Prebisch- Singer hypothesis of falling terms of trade of developing countries have implicitly relied on the role of multinational corporations and foreign direct investment. As of yet, the relationship between the latter and terms of trade has not been empirically investigated. In order to start closing this gap in research, data on 111 developing countries between 1980 and 2008 is analyzed using panel data methods. The empirical results suggest that there is no reason to believe multinationals' activities were responsible for a possible decrease of the developing countries' net barter terms of trade. On the contrary, foreign direct investment seems to play a positive role for developing countries' terms of trade.
  • Topic: Development, Economics, International Trade and Finance, Foreign Direct Investment
  • Author: Danielle Resnick
  • Publication Date: 02-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Electoral coalitions are becoming increasingly popular among opposition parties in Africa because they offer many advantages with respect to reducing party fragmentation and increasing incumbent turnovers. At the same time, however, they are often comprised of parties that are defined predominantly by their leaders' personalities and exhibit little differentiation in terms of their policy orientation. Based on a dataset spanning all opposition coalitions since 2000 in Africa's electoral democracies, this paper demonstrates not only that coalitions rarely defeat incumbents but also that they are only competitive when major opposition parties are involved. More significantly, the paper highlights that in many countries, a sizeable share of total electoral volatility is due to fluctuations in voting for opposition parties that have belonged to coalitions. The paper argues that such volatility reflects the inability of coalition members to build loyal constituency bases over time, which is critical for party development and broader consolidation.
  • Topic: Democratization, Development, Politics
  • Political Geography: Africa
  • Author: Abdelrasaq Na-Allah
  • Publication Date: 02-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Recent developments in policy initiatives as well as some current practical events have combined to put the spotlight on the issue of industrial embeddedness in sub-Saharan Africa. Though extant research documents some stylized facts, as determinants of its manifestations, their relevance to realities in the sub-continent, have until now been overlooked. Yet, it is difficult to ignore the fact that its constituent economies possess some peculiar attributes with potentially significant implications for embeddedness behaviour. Using data for the country of Lesotho, a probit model is estimated to ascertain the veracity of some of the widely acclaimed explanatory factors. We find, as we argue, that among all, the issue of supply potentials appears the most important.
  • Topic: Development, Industrial Policy
  • Political Geography: Africa
  • Author: Steve Onyeiwu
  • Publication Date: 03-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper reviews the innovative capabilities and absorptive capacities of African countries, and investigates whether they have played significant roles in the region's slow and episodic economic growth. Results from cross-country regressions covering 31 Sub-Saharan African countries suggest that growth in Africa is not simply a question of capital accumulation, fertility rates, aid dependency, and stable macroeconomic environment. It is also about strengthening the capacity of African countries to assimilate and effectively use knowledge and technology. Contrary to the views held by many analysts, the growth of African economies does not depend so much on their ability to innovate, but rather on their capacity to absorb and effectively use new technologies. Beyond technological issues, the paper confirms the stylized facts that the size of the government and political stability are important for the growth performance of African countries.
  • Topic: Development, Economics, Science and Technology
  • Political Geography: Africa
  • Author: Philip Abbott, Finn Tarp
  • Publication Date: 03-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Vietnam has been among the most successful East Asian economies, especially in weathering the external shocks of recent globalization crises—the 1997-98 Asian financial crisis and the 2008-09 great recession, financial crisis and collapse of global trade. Its success contradicts its characterization as an example of export-led growth and highlights the role of the state, particularly in maintaining and influencing investment. Examination of economic performance and policy responses shows rising dependence on foreign finance around each crisis, and actions by the government to counteract that dependence and bolster the domestic economy while continuing to restructure the economy toward greater emphasis on the private sector. Growth, employment and poverty alleviation have been maintained at the expense of renewed inflation, larger budget deficits, and currency depreciation. The 'stop-go' nature of present …
  • Topic: Development, Economics, Globalization, International Trade and Finance
  • Political Geography: Asia
  • Author: J.W. Sanders, Ukachukwu Ndukwu
  • Publication Date: 08-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Reasoning about a distributed system that exhibits a combination of probabilistic and temporal behaviour does not seem to be easy with current techniques. The reason is the interaction between probability and abstraction, made worse by remote synchronisation. In this paper the recently proposed language ptsc (for probability, time and shared-variable concurrency) is extended by constructs for interleaving and local block. Both enhance a designer's ability to modularise a design; the latter also permits a design to be compared with its more abstract specification, by concealing appropriately chosen design variables. Laws of the extended language are studied and applied in a case study consisting of a faulty register-transfer-level design.
  • Topic: International Relations, Development, International Organization, United Nations, Political Theory
  • Political Geography: United States
  • Author: Hanneke Van Lavieren, John Burt, David A. Feary, Geórgenes H. Cavalcante, Elise Marquis, Lisa Benedetti, Charles Trick, Björn Kjerfve, Peter F. Sale
  • Publication Date: 12-2011
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Like many other places in the world, the coastal region of the Persian Gulf (also known as the Arabian Gulf, and hereafter referred to as 'the Gulf') faces continuous environmental degradation. The unprecedented rate and scale of development that has occurred poses numerous environmental challenges and may be the greatest threat facing the Gulf's marine communities in the coming decades as urban populations along it's shores continue to grow. Some Gulf countries have already developed more than 40% of their coastline during the last 20 years. Pressure on coastal ecosystems is especially high in the smaller Gulf countries of Bahrain, Kuwait, Qatar and the UAE, where residents either live entirely, or almost entirely within 100 km of the coast. Development has led to loss and severe degradation of important natural habitats, including mangroves, seagrass beds, and coral reefs. Coastal 'mega-projects' including artificial islands, waterfront cities, ports, marinas and man-made waterways have sometimes been poorly conceived from an environmental perspective, leading to severe pressure on natural environments. Because development has taken place so rapidly there has not been enough time to develop adequate regulatory, technical, and monitoring capacity to guide this growth appropriately. Present trends suggest that development will not be accompanied by appropriately sophisticated policies and mechanisms for minimizing and mitigating deleterious impacts on the environment.
  • Topic: Development, Environment, Natural Resources
  • Political Geography: Arabia
  • Author: Martin Heger, Alex Julca, Oliver Paddison
  • Publication Date: 03-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper analyses the impact of natural disasters in the Caribbean. The economic impact of natural disasters in the region has been significant, resulting in widespread destruction of the productive economy. This paper presents the main macroeconomic impact of disasters, e.g., a deteriorating fiscal balance, a collapse of growth and a worsening external balance, as a consequence of damage resulting from the event. By making special reference to the small-island developing state nature of many countries in the region, valuable lessons of the impact of such disasters on the capital stock can be learnt, particularly as the interruption of production of goods and services can be particularly devastating in an environment where few large sectors (agriculture, tourism) dominate the economic landscape.
  • Topic: Development, Environment, Markets, Natural Disasters
  • Political Geography: Caribbean
  • Author: Fang Cai
  • Publication Date: 02-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: With the aid of an analytical framework of the Lewis model revised to reflect the experience of China, this paper examines the country's dualistic economic development and its unique characteristics. The paper outlines the major effects of China's growth as achieved during the course of economic reform and the opening-up of the country: the exploitation of the demographic dividend, the realization of comparative advantage, the improvement of total factor productivity, and participation in economic globalization. By predicting the long-term relationship between the labour force demand and supply, the paper reviews the approaching turning point in China's economic development and examines a host of challenges facing the country in sustaining growth.
  • Topic: Development, Economics
  • Political Geography: China, Asia
  • Author: Oleksiy Ivaschenko, Cem Mete
  • Publication Date: 03-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Tajikistan's rural sector has witnessed substantial development since the country began to emerge from civil conflict in 1999. Gross agricultural output increased 64 per cent from 1999 to 2003, and there were significant developments in the agricultural reform agenda. This paper uses the panel component of two surveys conducted in Tajikistan at one-year interval (2003 and 2004) to explore the major determinants of the transition out of/into poverty of rural households. Poverty status is measured in the asset space, thus indicating structural rather than transitory poverty movements. The empirical analysis reveals several interesting findings that are also important from a policy perspective: first, cotton farming seems to have no positive impact on poverty levels, nor on mobility out of poverty. Second, the rate of increase in the share of private farming at the district level had little impact on poverty levels and poverty mobility.
  • Topic: Demographics, Development, Poverty
  • Political Geography: Asia, Tajikistan
  • Author: Peter Sheehan
  • Publication Date: 05-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Industrialization occupies a central place in the rich tapestry of development theory and practice. Although that place has varied over time, many have agreed with Nicholas Kaldor that the kind of economic growth that leads to high real income per capita can only occur through industrialization. This paper argues that it is becoming increasingly difficult for most developing countries to achieve rapid growth through industrialization, and especially through export oriented activities. But the key mechanisms seen as driving the industrial take-off in much of the literature (internal increasing returns, transfer of labour into higher value activities and pecuniary externalities) are alive and well, and are evident in services as well as in industry. Furthermore, China is actively trying to move from a strategy based on industrialization to one based much more on agriculture and services, as the costs of the current pattern of industrialization become prohibitive, and India has demonstrated that rapid growth based primarily on the services sector is possible. Thus more attention needs to be given to strategies based on the expansion of the agricultural and services sectors, and to the ways in which better services in rural areas and higher rural output can combine to achieve rapid growth and improved human welfare in poor countries.
  • Topic: Development
  • Political Geography: China, India, Asia
  • Author: Jeffrey Henderson
  • Publication Date: 05-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The rise of China as an economic and political 'driver' of the global economy is likely to be one of the defining moments of world history. Its dynamism and international expansion are on the verge of creating a 'critical disruption' in the global order that has held sway for over 60 years. As such, China is beginning to reshape the world, presaging a new phase of globalization: a 'global-Asian era'. This new era is likely to be distinct from any of the earlier phases of globalization and China's global footprint, in terms of its business, economic and political actions and their geopolitical implications, is likely to be markedly different from what has gone before. This paper offers a framework by which we can begin to understand the coming global-Asian era (GAE) and some of its consequences, particularly as the latter are surfacing in the developing world. Having discussed the nature and dynamics of the GAE, the paper turns to sketch a series of vectors (trade, aid and energy security) along which the GAE is beginning to impact on developing countries. The paper argues that, at least for these vectors, the Chinese-driven GAE is providing opportunities as well as dangers for national development projects. It concludes by briefly speculating on the viability of the GAE.
  • Topic: Development, Globalization, International Political Economy, International Trade and Finance, Oil
  • Political Geography: China, Asia
  • Author: Haider A. Khan
  • Publication Date: 05-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper analyses both global and regional approaches to solving problems of energy security and ecological imbalance by addressing specifically the problems of China's energy security. China's growing energy dependence has become a major concern for both economic and national security policymakers in that country. The ambitious goal of modernization of the economy along the lines of the other newly industrialized economies (NIEs) of Asia has succeeded only too well, and it is difficult to reorient economic priorities. If examined rigorously, such an economic strategic assumption can be seen to entail the goal of creating further technological capabilities. In particular, China seems to be firmly committed to the creation of a largely self-sustaining innovation system as part of a knowledge-based economy of the future. Such innovation systems, called positive feedback loop innovation systems or POLIS have been created by advanced countries, and NIEs such as South Korea and Taiwan are proceeding to create these as well. But this will add to its energy burden and further dependence on the US as the power which controls the key sea lanes. Only a strategic reorientation to building a self-sustaining POLIS and appropriate regional cooperation institutions can lead to the way out of the current dilemma for China. Fortunately, such a model of POLIS which is distributionally and ecologically sensitive can be built for China and applied strategically to lead towards a sustainable development trajectory.
  • Topic: Development, Energy Policy, Environment, Regional Cooperation
  • Political Geography: United States, China, Taiwan, Asia, South Korea
  • Author: Yanrui Wu
  • Publication Date: 02-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Economic growth in China and India has attracted many headlines recently. As a result, the literature comparing the two Asian giants has expanded substantially. This paper adds to the literature by comparing regional growth, disparity and convergence in the two economies. This is the first of its kind. The paper presents a detailed examination of economic growth in the regions of China and India over the past twenty years. It also provides an assessment of regional disparity in the two countries and investigates whether there is any evidence of regional convergence during the period of rapid economic growth. It attempts to identify the sources of regional disparity and hence draw policy implications for economic development in the two countries in the near future.
  • Topic: Development
  • Political Geography: China, India, Asia
  • Author: Harsha Aturupane, Anil B. Deolalikar, Dileni Gunewardena
  • Publication Date: 05-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Reducing child malnutrition is a key goal of most developing countries. To combat child malnutrition with the right set of interventions, policymakers need to have a better understanding of its economic, social and policy determinants. While there is a large literature that investigates the determinants of child malnutrition, it focuses almost exclusively on mean effects of these determinants. However, socioeconomic background variables and policy interventions may affect child nutrition differently at different points of the conditional nutritional distribution. Using quantile regressions, this paper explores the effect s of variables such as a child's age, sex and birth order; household expenditure per capita; parental schooling; and infrastructure on child weight and height at different points of the conditional distributions of weight and height using data from Sri Lanka's Demographic and Health Survey. Results indicate that OLS estimates can be misleading in predicting the effects of determinants at the lower end of the distributions of weight and height. For example, even though on average Sri Lankan girls are not nutritionally-disadvantaged relative to boys, among children at the highest risk of malnutrition girls are disadvantaged relative to boys. Likewise, although expenditure per capita is associated with strong nutritional improvement on average, it is not a significant determinant of child height or weight at the lower end of the distribution. Similarly, parental education, electricity access, and the availability of piped water have larger effect son child weight and height at the upper quantiles than at the lower quantiles. The policy implication is that general interventions—parental schooling, infrastructure and income growth—are not as effective for children in the lower tail of the conditional weight and height distributions. These children, who are at the highest risk of malnutrition, are likely to need specialized nutritional interventions.
  • Topic: Development, Education, Health
  • Political Geography: Asia, Sri Lanka
  • Author: David Carment, Stewart Prest, Yiagadeesen Samy
  • Publication Date: 04-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper is derived from our ongoing research on fragile states funded by the Canadian International Development Agency (CIDA) to help policymakers and analysts make decisions on where and how to allocate aid, especially in fragile state environments. In order for development assistance to have a measurable and positive impact on fragile states, it is necessary to understand both how and why they become fragile. First, we reconceptualize the meaning of state fragility with equal attention given to the authority, legitimacy and capacity of a state, collectively referred to as ALC. Measures of these ALC components corresponding to six different categories of state performance—economics, governance, security and crime, human development, demographics, and the environment—are collected for all countries for the period 1999-2005. Initial testing of our fragility index shows that fragility is driven by a number of factors, of which the level of development seems to be more important. We complement this analysis by examining state fragility using the ALC framework. Overall, the approach presented has the distinct advantage of identifying country -specific patterns of fragility while at the same time allowing for broad strategically relevant measures of comparative performance that can be of use to policymakers regarding allocation of aid at the sectoral and programming level. Notwithstanding the fact that aid may be allocated for political and strategic reasons, and that fragile states are underfunded, we argue that aid that does flow to fragile states could be better targeted. Specifically, it could strengthen the underlying determinants of fragility by addressing fragile states' distinct and country-specific weaknesses in authority, legitimacy and capacity. Finally, we discuss policy implications of our analysis and directions for future research.
  • Topic: Conflict Prevention, Development, International Political Economy
  • Author: Yuefen Li, Bin Zhang
  • Publication Date: 04-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The segmentation of global manufacturing and services provided China and subsequently India with a golden opportunity to make full use of their absolute advantage—low cost yet educated labour—to integrate into the world economy within a comparatively shorter period of time than some earlier industrialisers. Though international trade functioned as a vent of surplus in view of the narrowness of their domestic markets at the beginning of their economic catch-up, the label of export-led model may not reflect the real picture as imports underwent dramatic increases during their respective growth periods, in particular for China. Foreign direct investment has played a pivotal role in their economic growth and has major presence in international trade and investment in leading sectors of both countries, giving rise to certain special features and weak links for their economic expansion and sustainability of fast economic growth. To maintain more broad-based, fast and balanced growth, it seems that both countries have to redress sectoral imbalances, encourage technology upgrading and cope with future changes in demographic profiles which constituted a trigger to fast economic growth at the time of their respective economic reform.
  • Topic: Development, International Trade and Finance
  • Political Geography: China, India, Asia
  • Author: Gary S. Fields, María Laura Sánchez Puerta
  • Publication Date: 01-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: In recent years, the economy of Argentina has experienced both rapid economic growth and severe economic decline. In this paper, we use a series of one -year long panels to study who gained the most in pesos when the economy grew and who lost the most in pesos when the economy contracted. To answer these questions, we test two hypotheses both unconditionally and conditionally. The 'divergence of earnings' hypothesis holds that in any given year, the highest earning individuals are those who experienced the largest earnings gains or the smallest earnings losses in pesos. The 'symmetry of gains and losses' hypothesis holds that those groups that gained the most in pesos when the economy grew are those that lost the most in pesos when the economy contracted. Both hypotheses are decisively rejected in the data.
  • Topic: Development, Economics
  • Political Geography: Argentina, South America
  • Author: Lino Briguglio, Gordon Cordina, Stephanie Vella, Nadia Farrugia
  • Publication Date: 05-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: In this paper, economic vulnerability is defined as the exposure of an economy to exogenous shocks, arising out of economic openness, while economic resilience is defined as the policy-induced ability of an economy to withstand or recover from the effects of such shocks. The paper briefly reviews the work already carried out on economic vulnerability and extends the research towards the development of a conceptual and methodological framework for the definition and measurement of economic resilience. Towards this end, the paper proposes an index of economic resilience gauging the adequacy of policy in four broad areas, namely macroeconomic stability, microeconomic market efficiency, good governance and social development.
  • Topic: Development, Economics
  • Author: Thomas Gries, Wim Naudé
  • Publication Date: 06-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: A stylized fact of economic development is the structural transformation of countries from traditional, mainly agricultural societies to modern economies dominated by manufacturing and services. In this paper we provide an endogenous growth model to illuminate the role of entrepreneurial start-up firms in structural economic transformation. We follow the Lewis-model's distinction between a traditional and modern sector, and underpin this with micro-foundations. We specify mature and start- up entrepreneurs and make a distinction between survivalist self-employment activities in the traditional sector, and opportunity-driven entrepreneurship in the modern sector. The model shows how opportunity-driven entrepreneurship can drive structural transformation through innovation, provision of intermediate inputs and services (which permits greater specialization in manufacturing), and by increasing employment and productivity in both the modern and traditional sectors.
  • Topic: Development, Economics
  • Author: Wim Naudé
  • Publication Date: 03-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: What is the role of entrepreneurship in economic development? At a minimum the answer should be able to explain the role of entrepreneurs in the structural transformation of countries from low income, primary-sector based societies into high-income service and technology based societies. More broadly though, it should also be able to explain the role of entrepreneurs in the opposite pole of stagnating development (including conflict) and in high innovation-driven growth. Although economic development lacks a 'general theory' of entrepreneurship, which could encompass a variety of development experiences, much progress has been made in extending the understanding of entrepreneurship in the process of development. This paper surveys the progress with the purpose of distilling the outlines for a more general theory of entrepreneurship in economic development. Entrepreneurship in developing countries remains a relatively under-researched phenomenon, so by surveying the current state of research, and by discussing the role of entrepreneurship in dual economy models of structural transformation and growth, a secondary objective of this paper is to identify avenues for further research. Finally, the policy implications from the economic literature suggest that a case for government support exists, and that this should focus on the quantity, the quality, and the allocation of entrepreneurial ability. Many routinely adopted policies for entrepreneurship, such as provision of credit and education, are shown to have more subtle effects, not all of which are conducive to growth-enhancing entrepreneurship.
  • Topic: Development, Economics
  • Author: Tejashree Sayanak, Sajal Lahiri
  • Publication Date: 06-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: We develop a theoretical model of foreign aid to analyse a method of disbursement of aid which induces the recipient government to follow a more pro-poor policy than it otherwise would do. In our two-period model, aid is given in the second period and the volume of it depends on the level of wellbeing of the target group in the first period. We find that this way of designing aid does increase the welfare of the poor. We also consider the situations where the donor and the recipient governments act simultaneously as well as sequentially, and find that by moving first in a sequential game, the donor country can, under certain conditions, increase the welfare of the poor and its own compared to the case of simultaneous moves.
  • Topic: Development, Humanitarian Aid, International Cooperation
  • Author: Sumei Tang, E. A. Selvanathan, S. Selvanathan
  • Publication Date: 02-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: In this paper, we investigate the causal link between foreign direct investment (FDI), domestic investment and economic growth in China for the period 1988-2003. Towards this purpose, a multivariate VAR system with error correction model (ECM) and the innovation accounting (variance decomposition and impulse response function analysis) techniques are used. The results show that while there is a bi-directional causality between domestic investment and economic growth, there is only a single-directional causality from FDI to domestic investment and to economic growth. Rather than crowding out domestic investment, FDI is found to be complementary with domestic investment. Thus, FDI has not only assisted in overcoming shortage of capital, it has also stimulated economic growth through complementing domestic investment in China.
  • Topic: Development, Economics, International Trade and Finance
  • Political Geography: China
  • Author: Dominique van der Mensbrugghe, Maurizio Bussolo, Rafael E. De Hoyos, Denis Medvedev
  • Publication Date: 03-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Over the past 20 years, aggregate measures of global inequality have changed little even if significant structural changes have been observed. High growth rates of China and India lifted millions out of poverty, while the stagnation in many African countries caused them to fall behind. Using the World Bank's LINKAGE global general equilibrium model and the newly developed Global Income Distribution Dynamics (GIDD) tool, this paper assesses the distribution and poverty effects of a scenario where these trends continue in the future. Even by anticipating a deceleration, growth in China and India is a key force behind the expected convergence of per capita incomes at the global level. Millions of Chinese and Indian consumers will enter into a rapidly emerging global middle class—a group of people who can afford, and demand access to, the standards of living previously reserved mainly for the residents of developed countries. Notwithstanding these positive developments, fast growth is often characterized by high urbanization and growing demand for skills, both of which result in a widening of income distribution within countries. These opposing distributional effects highlight the importance of analysing global disparities by taking into account—as the GIDD does—income dynamics between and within countries.
  • Topic: Development, Economics, Poverty
  • Political Geography: Africa, China, India, Asia
  • Author: Alok Bhargava
  • Publication Date: 01-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper estimated models for GDP growth rates, poverty levels, and inequality measures for the period 1990–2000 using data on 54 developing countries at five-yearly intervals. Issues of globalization were investigated by analysing the differential effects of the countries' exports and imports and by postulating trans-logarithmic models that allow for non-linear effects of literacy levels and measures of openness. The main findings were that literacy rates affected growth rates in a quadratic manner and countries with higher literacy were more likely to benefit from globalization. Second, the model for growth rates showed non-linear and differential effects of the export/GDP and import/GDP ratios. Third, the models indicated that population health indicators such as life expectancy were important predictors of GDP growth rates. Fourth, models for poverty measures showed that poverty was not directly affected by globalization indicators. Finally, the model for Gini coefficients indicated significant effects of 'medium' and 'high' skilled labour work force, with higher proportions of high-skilled labour implying greater inequality.
  • Topic: Development, Education, International Trade and Finance, Poverty
  • Author: Anis Chowdhury
  • Publication Date: 04-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Most small island economies or 'microstates' have distinctly different characteristics from larger developing economies. They are more open and vulnerable to external and environmental shocks, resulting in high output volatility. Most of them also suffer from locational disadvantages. Although a few small island economies have succeeded in generating sustained rapid growth and reducing poverty, most have dismal growth performance, resulting in high unemployment and poverty. Although macroeconomic policies play an important role in growth and poverty reduction, there has been very little work on the issue for small island economies or microstates. Most work follows the conventional framework and finds no or very little effectiveness of macroeconomic policies in stabilization. They also concentrate on short-run macroeconomic management with a focus almost entirely on either price stability or external balance. The presumption is that price stability and external balance are prerequisite for sustained rapid growth. This paper aims to provide a critical survey of the extant literature on macroeconomic policies for small island economies in light of the available evidence on their growth performance. Given the high output volatility and its impact on poverty, this paper will argue for a balance between price and output stabilization goals of macroeconomic policy mix. Drawing on the highly successful experience of Singapore, it will also outline a framework for growth promoting, pro-poor macroeconomic policies for small island economies/microstates.
  • Topic: Development, Economics, Government
  • Political Geography: Asia, Australia/Pacific, Caribbean, Singapore
  • Author: Julie Subervie, Patrick Guillaumont, Catherine Korachais
  • Publication Date: 05-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The reduction of child mortality is one of the most universally accepted Millennium Goals. However, there is a significant debate on the means of reaching it and its realism with regard to the situation in most of the least developed countries. The recommendations made for the achievement of this goal are mainly medical ones. However, without underestimating the importance of these measures, in particular vaccinations, it seems increasingly obvious that the rate of reduction of child mortality is mainly determined by the evolution of macroeconomic environment. The influence of per capita income level on mortality is frequently underlined.
  • Topic: Development, Health, Third World
  • Author: Thomas Gries, Margarete Redlin
  • Publication Date: 07-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Concerns about the duration of China's growth and hence the question of a permanent significant contribution of China to world economic growth relate, amongst other things, to the problem of reducing regional disparity in China. While China's high average growth is driven by a small number of rapidly developing provinces, the majority of provinces have experienced more moderate development. To obtain broad continous growth it is important to identify the determinants of provincial growth. Therefore, we introduce a stylized model of regional development which is characterized by two pillars: (i) International integration indicated by FDI and/or trade lead to imitation of international technologies, technology spill overs and temporary dynamic scale economies, and (ii) domestic factors indicated by human and real capital available through interregional factor mobility. Using panel data analysis and GMM estimates our empirical analysis supports the predictions from our theoretical model of regional development. Positive and significant coefficients for FDI and trade support the importance of international integration and technology imitation. A negative and significant lagged GDP per capita indicates a catching up, non steady state process across China's provinces. Highly significant human and real capital identifies the importance of these domestic growth restricting factors. However, other potentially important factors like labor or government expenditures are (surprisingly) insignificant or even negative. Further, in contrast to implications from NEG models indicators for urbanization and agglomeration do not contribute significantly.
  • Topic: Development
  • Political Geography: China, Asia
  • Author: Mark McGillivray, Wim Naudé, Stephanié Rossouw
  • Publication Date: 05-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: A small but growing literature has been concerned about the economic (and environmental) vulnerability on the level of countries. Less attention is paid to the economic vulnerability of different regions within countries. By focusing on the vulnerability of subnational regions, our paper contributes to the small literature on the 'vulnerability of place'. We see the vulnerability of place as being due to vulnerability in various domains, such as economic vulnerability, vulnerability of environment, and governance, demographic and health fragilities. We use a subnational dataset on 354 magisterial districts from South Africa, recognize the potential relevance of measuring vulnerability on a subnational level, and construct a local vulnerability index (LVI) for the various districts. We condition this index on district per capita income and term this a vulnerability intervention index (VII) interpreting this as an indicator of where higher income per capita, often seen in the literature as a measure of resilience, will in itself be unlikely to reduce vulnerability.
  • Topic: Security, Demographics, Development, Economics
  • Political Geography: Africa, South Africa
  • Author: Raghav Gaiha, Katsushi Imai
  • Publication Date: 04-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper measures the vulnerability of households in rural India, based upon the ICRISAT panel survey. We employ both ex ante and ex post measures of vulnerability. The latter are decomposed into aggregate and idiosyncratic risks and poverty components. Our decomposition shows that idiosyncratic risks account for the largest share, followed by poverty and aggregate risks. Despite some degree of risk-sharing, the landless or small farmers are vulnerable to idiosyncratic risks, forcing them to reduce consumption. Income-augmenting policies therefore must be combined with those that not only reduce aggregate and idiosyncratic risks but also build resilience against them.
  • Topic: Demographics, Development, Economics, Poverty
  • Political Geography: India, Asia
  • Author: Terry Cannon
  • Publication Date: 04-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The concepts vulnerability, resilience and community are widely used and abused in the literature on natural hazards and disaster risk reduction. This paper seeks to bring greater rigour in their use. In particular, vulnerability must be understood as a set of socioeconomic conditions that are identifiable in relation to particular hazard risks, and therefore perform a predictive role that can assist in risk reduction. Resilience is often confused as a concept, sometimes seen as the inverse of vulnerability, and by others as an independent quality. These confusions may be especially relevant in the context of §policy for disaster risk reduction at the scale of community. Here there is often an idealized notion of community as undifferentiated and unproblematic.
  • Topic: Development, Disaster Relief, Political Economy
  • Author: Mark McGillivray, Mina Baliamoune-Lutz
  • Publication Date: 04-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The international donor community has grave concerns about the prospects for poverty reduction in what it terms fragile states. A state is classified as fragile if its country policy and institutional assessment (CPIA) score falls below a particular threshold. Recognizing that all states are fragile to varying degrees, this paper questions the method used by the international community to deem a country fragile. This paper develops a framework that uses fuzzy-set theory to deem a country as fragile. Fuzzy sets allow for gradual transition from one state to another while also allowing one to incorporate rules and goals, and hence are more appropriate for measuring outcomes that are ambiguous. Such ambiguity is an inherent characteristic of cross-country fragility classifications. The paper applies its framework to 76 low-income countries, for which the CPIA data are publicly available. The fragile state group that this framework provides is compared to that which the international donor community has constructed.
  • Topic: Development, International Political Economy
  • Author: Paul Winters, Angeli Kirk, Benjamim Davis, Calogero Carletto
  • Publication Date: 02-2008
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: As developing countries continue on the path of economic liberalization, there is a compelling need to ensure that the benefits of globalization reach poor rural communities. Increased commercialization of agriculture and diversification into nontraditional exports (NTXs) is one strategy that has often been advocated as a way for developing countries to use their comparative advantage in lower labor costs and to achieve growth in the agricultural sector. Given the predominantly rural nature of most developing countries and the preponderance of poor people in these areas, high-value agricultural production is considered the ideal mechanism to extend the benefits of globalization directly to the rural poor:1 Allowing poor farmers to shift into the export sector and take advantage of internationally demand driven prices that are higher relative to traditional crops may reduce inequality while fostering overall economic growth (Nissanke and Thorbecke 2007).
  • Topic: Agriculture, Development, Globalization, International Trade and Finance, Poverty
  • Political Geography: Global Focus
  • Author: Renwei Zhao, Shi Li
  • Publication Date: 01-2007
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper investigates some major changes in the wealth distribution in China using the data from two national household surveys conducted in 1995 and 2002. The surveys collected rich information on household wealth and its components, enabling a detailed analysis of changes in wealth distribution among Chinese households. Our analysis indicates that the wealth distribution in China as a whole became much more unequal in 2002 than it was in 1995. The housing reform, in which public apartments were sold to urban households at extremely low prices, has accelerated the accumulation of wealth among urban households on the one hand, and widened the wealth gap between urban and rural areas on the other.
  • Topic: Demographics, Development, Economics
  • Political Geography: China, Asia
  • Author: Gilbert Burnham, Brinnon Garrett, Hugh Waters
  • Publication Date: 01-2007
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Although baseline data for post-conflict situations are frequently unavailable, there is a clear deterioration in the health conditions of populations during and following conflict. Excess mortality and morbidity, displaced populations, and vulnerability to communicable diseases during and following conflict all call for immediate relief and restoration of basic services. As much as possible, short-term relief and assistance programmes should be implemented in a manner compatible with longer term health system rehabilitation.
  • Topic: Conflict Resolution, Development, Health, War
  • Author: Guanghua Wan
  • Publication Date: 01-2007
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper depicts the trend of regional inequality in rural China for the period 1985- 2002. The total inequality is decomposed into the so-called within- and between components when China is divided into three regional belts (east, central and west). A regression-based accounting framework is then used to explore root sources of the rising inequality. Policy implications are discussed.
  • Topic: Demographics, Development, Economics
  • Political Geography: China, Asia
  • Author: Basudeb Guha-Khasnobis, S. Vivek
  • Publication Date: 01-2007
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: In April 2001 the People's Union for Civil Liberties (PUCL) approached the Supreme Court of India arguing that the government has a duty to provide greater relief in the context of mass hunger. The litigation has now become the best known precedent on the right to food internationally. This paper reviews the litigation with a view to understand various strategies used by the litigants to create and enforce far-reaching entitlements in a near legal vacuum on the right to food. This is followed by a discussion on the lessons from this case for a rights-based approach to development at large.
  • Topic: Development, Human Rights, Politics
  • Political Geography: India, Asia
  • Author: Ruslan Yemtsov
  • Publication Date: 01-2007
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: All countries in transition experienced increases in inequality. They have also undertaken massive privatization of key asset housing, often on give-away terms. Are these two phenomena related? Has transfer of ownership rights to residents slowed down the inequality increases or it pushed it up? Surprisingly little is known in this area. This paper attempts to provide empirical evidence to start answering these questions. It shows how housing privatization affected the distribution of personal wealth and inequality in current consumption based on recent representative household surveys from three transition countries: Poland, Russia and Serbia. Survey data are compared with figures derived from national accounts and housing statistics. Contrary to common belief and some earlier evidence of strong equalizing effect of housing distribution in Eastern Europe and the former Soviet Union, the paper finds that the contribution of housing to the overall inequality levels is not strong, and is not universally progressive. There is also a significant variation across countries. In Russia and Serbia progressive. There is also a significant variation across countries. In Russia and Serbia features of privatization programmes resulted in better off households capturing more valuable housing assets on extremely beneficial terms, while in Poland privatization and housing reform led to more equitable outcomes. When owner occupied housing rents and durables are properly accounted for, the effects of housing ownership on inequality in current consumption are mildly progressive in Russia and Poland and regressive in Serbia. The paper argues that the information collected by regular household surveys provides only a starting point to study housing wealth distribution, and there are a number of gaps which should be addressed through improved data collection.
  • Topic: Civil Society, Development, Economics, Poverty
  • Political Geography: Russia, Poland, Serbia
  • Author: Vicar Valencia, William E. Griffiths, D.S. Prasada Rao, Duangkamon Chotikapanich
  • Publication Date: 01-2007
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper examines the nature and extent of global and regional income distribution and inequality using the most recent country level data on income distribution drawn from World Bank and UNU-WIDER studies for the period 1993–2000. The methodology used is a recently developed technique to fit flexible income distributions to limited aggregated data. Empirical results show a very high degree of global inequality, but with some evidence of inequality decreasing between the two years.
  • Topic: International Relations, Development, Economics, Globalization
  • Author: Erik Thorbecke
  • Publication Date: 12-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The evolution of the development doctrine over the last six decades is analysed in some detail in this paper. The development doctrine is defined as the body of knowledge consisting of four interrelated components: (1) the prevailing development objectives; (2) the conceptual state of the art relating to development theories, models, techniques and applications; (3) the underlying data system; and (4) the resulting development strategy. The main contributions and changes in these four components are traced through, decade by decade, starting with the 1950s.
  • Topic: International Relations, Development, Politics, Third World
  • Author: Guanghua Wan, Yin Zhang
  • Publication Date: 12-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper proposes a framework for incorporating longitudinal distributional changes into poverty decomposition. It is shown that changes in the Sen-Shorrocks-Thon index over time can be decomposed into two components—one component reflects the progressivity of income growth among the original poor, the other measures the extent of downward mobility experienced by the incumbent poor. The decomposition is applied to appraising poverty trends in China between 1988 and 1996. The results indicate that the proposed decomposition can complement the widely-used growthdistribution decomposition in providing insights into poverty dynamics.
  • Topic: Development, Poverty
  • Political Geography: China, Asia
  • Author: Guanghua Wan, Yin Zhang
  • Publication Date: 12-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Applying the Shapley decomposition to unit-record household survey data, this paper investigates the trends and causes of poverty in China in the 1990s. The changes in poverty trends are attributed to two proximate causes; income growth and shifts in relative income distribution. The Foster-Greer-Thorbecke measures are computed and decomposed, with different datasets and alternative assumptions about poverty lines and equivalence. Among the robust results are: (i) both income growth and favourable distributional changes can explain China's remarkable achievement in combating poverty in rural areas in the first half of the 1990s; (2) in the second half of the 1990s, both rural and urban China suffered from rapidly rising inequality and stagnant income growth, leading to a slow-down in poverty reduction, even reversal of poverty trend.
  • Topic: Development, Economics, Poverty
  • Political Geography: China, Asia
  • Author: Frances Stewart
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The design of policies towards countries where major conflicts have ended is becoming a major issue in the development agenda partly because of the numbers of countries where such policy is relevant and partly because their situation tends to be among the most desperate. This paper is concerned with one major requirement in reconstruction policies that is often overlooked: that is to design policies which will reduce the horizontal inequalities which are often a major source of conflict. If they do not, there will be a danger of renewed mobilization around them and a further outbreak of violence. The paper reviews the range of policies which would contribute to reducing horizontal inequalities. It also considers some political issues surrounding such policies, including potential political risks which can arise in adopting these types of policy.
  • Topic: Conflict Resolution, International Relations, Development, Peace Studies
  • Author: Sirkku K. Hellsten
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Since existing injustices and the quest for justice are seen to be the main causes for violent clashes, it is often claimed that the restoration of justice must be the most important goal of post-conflict reconstruction. However, the current policy approaches, social movements and theoretical models for conflict resolution tend to look at justice from merely technical point of view, as a rapid fix to overcome war and violence. This relates the notion of 'peace' to 'security' and replaces the concept of 'justice' with the concepts of 'law and order'. Restoration of justice, however, does not merely mean requirement of impartiality. This paper presents an ethical analysis on the relationship between the rule of law, social justice, the principle of impartiality and social cohesion in a post-conflict society by examining the problems of the social contract approach through communitarian and feminist critiques. The aim of the paper is to map out the ethical dilemmas involved in peace negations based on 'constructing' or 'restoring' justice in a society, and to guide a way towards more a comprehensive framework of ethics of justice for post-conflict reconstruction.
  • Topic: Conflict Resolution, Development, Peace Studies, Politics
  • Author: Peter Burnell
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Recent attention has focused on the difficulties of establishing 'coherence' between humanitarian relief aid in complex emergencies and the objective of ending violent conflict. This paper introduces a parallel problem: absence of total synergy between making peace and building democracy. A widely held assumption in the international community is that in post-conflict situations peace-building and democratization are virtually synonymous; creating the conditions for the one does so for both, the two processes will be reciprocal and mutually supportive. This suggests the policy issues will be simple. But the reality could be very different. Choices have to be addressed between requisites for peace and conditions for democracy; over the different implications for peace of competing designs for democracy; and over the kind of 'democracy' and its relation to other essential developments like state-building Institutional crafting is important; but matters concerning civil society and political culture must be addressed too. Governance and welfare considerations will bear on both peace and democracy but not necessarily in identical ways. There are temporal choices to address as well; the order of passage from peace to stable democracy may be as significant as the rites of passage. The belief that the well-known theory of a democratic peace in international relations has its complement in a democratic domestic peace looks plausible, but 'getting there' after conflict will be challenging. Issues of strategy and policy are most problematic where peace, prosperity and democracy have all been deficient—a situation common to many societies.
  • Topic: Conflict Prevention, Democratization, Development, Peace Studies
  • Author: Fang Cai, Meiyan Wang
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper describes and decomposes wage differences between female and male workers. The results indicate that females receive low wages because of unequal pay within sectors, and that the wage gap caused by the difference in sectoral attainment is small. The results also reveal that a lion's share of the wage differential between females and males is attributable to discrimination rather than to the human capital difference between the genders. Eliminating discriminations against females with a focus on intra-sectoral inequality is crucial for reducing female/male wage differentials.
  • Topic: International Relations, Development, Political Economy
  • Political Geography: China, Asia
  • Author: Christian Rogg
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper considers asset holdings in rural Ethiopia. It shows that households own mostly non-financial assets and that the composition of asset portfolios varies significantly with the household's overall wealth and its exposure to uncertainty. As regards the distribution of assets, inequality is lowest for land holdings and much higher for all other assets. More generally, asset inequality is higher than consumption inequality but, somewhat surprisingly, lower than income inequality. Less surprising is the finding that asset holdings are positively correlated with income and consumption. An analysis of how asset holdings vary with key demographic variables shows that assets increase with the size of the household and the education of the household head. Finally, the paper concludes by exploring the role that assets play in marriage markets in rural Ethiopia.
  • Topic: International Relations, Development, Political Economy
  • Political Geography: Africa, Ethiopia
  • Author: Frikkie Booysen, Ronelle Burger, Servaas van der Berg, Michael von Maltitz
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The study uses an asset index of consumer durables to track changes in household wealth in Ghana during the recent period of strong growth. Using the Ghana Living Standards Survey of 1998 that contains both wealth data and consumer durable data, the authors demonstrate that the asset index approximate marketable wealth adequately. Although asset index estimates of wealth cannot match the precision of wealth surveys, this approach can provide useful information on marketable wealth in countries where more appropriate sources are not available. The asset index analysis with the three demographic and health surveys for 1993, 1998 and 2003 suggests that the solid economic growth seen over this period has been accompanied by a strong rise in the average asset index scores.
  • Topic: International Relations, Development, Political Economy
  • Political Geography: Africa, Ghana
  • Author: Juliano Assunção
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Land and wealth are closely related in rural Brazil, a country characterized by high levels of inequality in terms of income or landholdings. After presenting a historical retrospective of land concentration and land reform in Brazil, this study evaluates the impact of the land reform programme undertaken in the 1990s on land ownership and land distribution. It is shown that the programme increased landownership among poor rural families and those with less educated household heads, reducing the fraction of the other families with landholding. Also, the land reform programme increased land inequality among landowners.
  • Topic: International Relations, Development, Political Economy
  • Political Geography: Brazil, South America
  • Author: Ying Chu Ng
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Gender earnings differentials in urban China by region and their changes during the first decade of economic reform are examined. It is found that the female–male earnings ratio increased during the early stage of reform. The male earnings premium, overall, showed an increasing trend in the later stage of reform. Decomposition of the gender earnings differential reveals that a relatively lower percentage of the differential could be explained by gender differences in productive characteristics in the fast growing regions and in regions with a rapid pace of reform. The cross-sectional results highlight the possible existence of gender discrimination, particularly in the later stages of economic reform and development. Both market competition and the effects of wage decentralization play a role in shaping the gender earnings differentials. Gender earnings differentials varied by region and over time, generally in tandem with the pace of economic reform and development. The decomposition of the overtime changes in the earnings gap indicated that improvement in females' productive characteristics during the reform period constantly enhanced the earnings of females relative to those of males. The overtime changes in the returns to females' characteristics, however, work to counter any narrowing of the gender earnings gap.
  • Topic: International Relations, Development, Gender Issues
  • Political Geography: China, Asia
  • Author: Shi Li, Ximing Yue, Terry Sicular, Björn Gustafsson
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Using new household survey data for 1995 and 2002, we investigate the size of China's urban-rural income gap, the gap's contribution to overall inequality in China, and the factors underlying the gap. Our analysis improves on past estimates by using a fuller measure of income, adjusting for spatial price differences and including migrants. Our methods include inequality decomposition by population subgroup and the Oaxaca-Blinder decomposition. Several key findings emerge. First, the adjustments substantially reduce China's urban-rural income gap and its contribution to inequality. Nevertheless, the gap remains large and has increased somewhat over time. Second, after controlling for household characteristics, location of residence remains the most important factor underlying the urban-rural income gap. The only household characteristic that contributes substantially to the gap is education. Differences in the endowments of, and returns to, other household characteristics such as family size and composition, landholdings, and communist party membership are relatively unimportant.
  • Topic: International Relations, Development, Human Rights
  • Political Geography: China, Asia
  • Author: George Cheriyan
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Over the past decade, a series of events in India have brought the question of food security into sharp focus. Vast famine-affected areas versus surplus production and stocks of grains, the impact of globalization and World Trade Organization laws on agriculture and farmers, the media's spotlight on starvation deaths and, finally, the Supreme Court of India's strong reaction to the plight of the hungry—all make a case for recognizing the right to food.
  • Topic: International Relations, Development, Human Rights
  • Political Geography: India, Asia
  • Author: Nira Ramachandran
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The food security scenario in South Asia has witnessed rapid progress over the last few decades, yet nutrition outcomes, especially those related to women and children, have failed to keep pace. This paper contends that the role of women in providing food and nutrition security at the household and individual level needs to be examined, if the paradox of persisting malnutrition amid macro level food sufficiency is to be resolved. Food security, in its broader connotation, results from the availability of adequate food, effective consumption, and desirable nutrition outcomes. As such, it is intricately linked with a woman's multiple roles expressed in her productive, reproductive, and caring functions. However, even focussed efforts aimed at resolving the problems faced by women in performing one or other of their roles, may fail to produce expected results, if the issues underlying each function and their inter-linkages are not fully understood. The paper thus attempts to review various aspects of the relationship between women and food security in South Asia, highlight the issues that require urgent focus and indicate emerging concerns in the region.
  • Topic: International Relations, Development, Human Rights
  • Political Geography: South Asia
  • Author: Ramesh Chand
  • Publication Date: 10-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Agriculture contributes substantially to output and employment in South Asian countries. Therefore, any change, like trade liberalization, that impacts on the agriculture sector has widespread ramifications in terms of employment, nutrition, livelihood and food security. Implementation of various provisions of the WTO Agreement on Agriculture causes serious concern with regard to the performance of the agriculture sector and food security, and these countries have become quite sensitive to consequences of future WTO agreements. The cautious approach towards the WTO is mainly caused by the increased dependence on food imports and deterioration in self-reliance in agriculture in the post-WTO period because of a much higher growth in food import as compared to exports. Decline in international prices and trade distortions are the underlying causes for an adverse impact on agriculture during the post-WTO period. South Asian countries should address these two issues in future negotiations.
  • Topic: International Relations, Development, Human Rights
  • Political Geography: South Asia
  • Author: Manju Balana, Pradeep Bhargava
  • Publication Date: 10-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Basic human rights recognize the intrinsic value of freedom, only not for the value of freedom itself, but also for its instrumental role enabling an individual to choose a bundle of commodities and wellbeing. The role of food, a basic necessity of life, in fostering freedom is important, to say the least. South Asian countries have witnessed a substantial increase in food production but nutritional emergency prevails in large regions indicating both failure in food distribution and the lack of capacity to acquire food. Acquiring food is intrinsically related to the availability of work, and people's capacity to undertake work.
  • Topic: International Relations, Development, Human Rights
  • Political Geography: South Asia
  • Author: Andrei Rachinsky, Sergei Guriev
  • Publication Date: 10-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This study discusses the evolution of personal wealth in transition economies. While data availability is still a problem, the available indirect evidence suggests privatization has resulted in an increase in personal wealth but also in personal wealth inequality, especially in the countries that lagged behind in building effective institutions. Another source of wealth inequality is the high income inequality due to wage decompression coupled with the low saving rates among the poor. We pay a special attention to one of the most noticeable implications of this rise in personal wealth and wealth inequality— the emergence of so called 'oligarchs'. Using the comprehensive dataset of Muscovites' incomes we show that surveys that do not take into account the first- and second-tier rich (billionaires and millionaires) may drastically underestimate inequality.
  • Topic: International Relations, Development, International Political Economy
  • Political Geography: Eastern Europe, Soviet Union
  • Author: D. Jayaraj, S. Subramanian
  • Publication Date: 10-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper reviews the principal source of India's wealth distribution statistics, which is constituted by the five decennial Reserve Bank of India National Sample Survey Organization Surveys on Debt and Investment of 1961-62, 1971-72, 1981-82, 1991-92, and 2002-03. The data available are described, critically appraised, and analyzed to present some salient findings in terms of the levels of debt, the levels of asset-holdings across the states of the Indian Union and over time, wealth composition, and aspects of vertical and horizontal inequality in the distribution of wealth. The centrality of land and real estate in the wealth status of India is underlined, and some broad aspects of redistributive anti-poverty policy are spelt out.
  • Topic: International Relations, Development, International Political Economy
  • Political Geography: India, Asia
  • Author: Cheryl R. Doss, Carmen Diana Deere
  • Publication Date: 10-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Only recently has it been recognized that women may not share in the wealth of men, even within the same household or family. Moreover, there is growing evidence that the gender distribution of wealth matters. This paper first reviews the available evidence for developing countries on the gender asset gap and finds that it is significant. It then considers the constraints on women's asset ownership with particular attention to the role of legal marital and inheritance regimes. The paper then turns to a more detailed examination of women's land ownership in Latin America and Africa. The final section considers the impact of women's land ownership on household income and welfare.
  • Topic: International Relations, Development, International Political Economy, Third World
  • Political Geography: Africa, Latin America
  • Author: Seymour Spilerman, Florencia Torche
  • Publication Date: 10-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper provides a descriptive analysis of wealth ownership and wealth inequality in Latin American countries, using diverse published sources and primary data analysis for 16 nations. We produce estimates of the distribution of home ownership, land, and financial assets, and find very high wealth concentration in all these types of assets, with the partial exception home ownership. The relevance of informal assets and the historical patterns of wealth accumulation and concentration since colonial times are discussed. Mechanisms of intergenerational wealth transmission are analyzed for the Chilean case.
  • Topic: International Relations, Development, International Political Economy
  • Political Geography: South America, Latin America
  • Author: Alemayehu Geda
  • Publication Date: 10-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Since 1992 Ethiopia has been engaged in liberalizing its financial sector. The hallmark of the strategy is gradualism. The approach is not without problems especially from Bretton Woods Institutions that saw the reform as a sluggish process. This study examines this liberalization program by analyzing the performance of the sector before and after the reform. The study notes that given the nascent development of the financial sector in the country, the relatively good shape in which the existing financial institutions find themselves, and given that supervision and regulation capacity of the regulating agency is weak, the government's strategy of gradualism and its over all reform direction is encouraging. However, we argue for charting out clearly defined time frame for liberalization and exploring the possibility of engaging with foreign banks to acquire new technology that enhance the efficiency of the financial sector in general and the banking sector in particular.
  • Topic: International Relations, Development, International Political Economy
  • Political Geography: Africa, Ethiopia
  • Author: Esther Wiegers, John Curry, Alessandra Garbero, Shannon Stokes, John Hourihan
  • Publication Date: 10-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: HIV/AIDS has a severe impact on food security, affecting all of its dimensions: availability, stability, access, utilization. FAO recognizes that HIV/AIDS is a determining factor for, as well as a consequence of, food insecurity. Although the relationships among gender, food security and rural livelihoods have been acknowledged in the growing literature on HIV/AIDS impacts, relatively few studies provide adequate focus and empirical evidence on the gender aspects of these interrelationships among vulnerable rural households. Such gender aspects of these relationships have been explored in detail by FAO in Namibia, Uganda and Zambia This paper presents the main findings of the four baseline studies and discusses the methodologies used to identify vulnerable households and document changes in resource availability, household labour force, livelihood strategies, coping strategies and food security status. These findings offer useful insights for policy formulation purposes and for the development of mitigation strategies that respond to the food security challenges of the epidemic.
  • Topic: Development, Gender Issues
  • Political Geography: Uganda, Africa, Zambia, Namibia
  • Author: Jean-Marc Coicaud
  • Publication Date: 09-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The role of international organizations grows with the acceleration of globalization and the increasing importance of global governance. However, thus far, only limited and rather narrow research has been generated on the subject. It is a state of affairs that reflects on international studies, as well as on the power realities of the world. By assessing international organizations through the career prospects that they offer to skilled professionals, this paper is an attempt to remedy this situation. As such it unveils some of the internal dynamics of international organizations and explores their external consequences in terms of the relations between international organizations, the people employed by these, and the power play (economic, social, political and even cultural) at the national and international level.
  • Topic: Development, Globalization, International Cooperation, United Nations
  • Author: Mehmet Arda
  • Publication Date: 09-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The importance of supermarkets in the world food economy has increased radically since the early 1990s. They are now major sellers and buyers of food items not only in developed but also in developing countries. Urbanization and the liberalization of the services sector have been important facilitators of this process.
  • Topic: Development, Economics, Human Welfare
  • Political Geography: Latin America, Central America
  • Author: Xavier Giné, Stefan Klonner
  • Publication Date: 09-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: We study the diffusion of a capital intensive technology among a fishing community in south India and analyze the dynamics of income inequality during this process. We find that lack of asset wealth is an important predictor of delayed technology adoption. During the diffusion process, inequality follows Kuznets' well-known inverted U-shaped curve. The empirical results imply that redistributive policies favouring the poor result in accelerated economic growth and a shorter duration of sharpened inequality.
  • Topic: Development, Poverty, Science and Technology
  • Political Geography: India, Asia
  • Author: Salvatore Capasso
  • Publication Date: 09-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Since the 1990s economists have devoted considerable attention to the study of the relationship between financial markets development and economic growth. In particular, the emergence of stock markets with economic development is an intriguing and interesting aspect of such a relationship, and yet relatively unexplored. This paper examines the most recent findings in the theoretical and empirical literature trying to determine the rationale behind the development of stock markets along the path of growth and the nature of the interrelationship between real and financial variables.
  • Topic: Development, Economics, Emerging Markets, Markets
  • Author: André Mach, Thomas David
  • Publication Date: 09-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This research paper discusses the role of institutions in the rapid growth and successful international integration of Switzerland during the late nineteenth and early twentieth century. In analysing the emergence and consolidation of the institutions whose existence was crucial, the paper looks both at the political institutions that managed conflicts and promoted cooperation between private and public actors and the economic institutions that, on the one hand, compensated the groups that fell behind in the developmental process (e.g., agricultural subsidies, high tolerance for domestic cartels, tariffs for some industries, institutions for labour representation) and, on the other hand, enhanced productivity. In addition, the absence of some institutions such as a patent law and an independent central bank was also crucial in the Swiss case, even though these two institutions are regarded as pre-requisites of development by today's economic orthodoxy. The paper concludes by drawing lessons for today's developing countries.
  • Topic: International Relations, Development, Economics
  • Political Geography: Europe, Switzerland
  • Author: Mina Baliamoune-Lutz
  • Publication Date: 09-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Using a vector error-correction model, I explore the short-run dynamics and long-run linkages between financial reform and the mobilization of domestic saving in Morocco. In the short run, financial depth (volume of intermediation) is shown to have a positive influence on private saving, while increases in real interest rates have a negative impact. The effectiveness of financial intermediation does not seem to have a direct effect on saving but has a significant influence on the volume of intermediation. In the long run, savings have a stable relationship with financial reform but the influence of interest rates remains negative, implying that the income effect dominates in the long run as well.
  • Topic: Development, Economics
  • Political Geography: Africa, Morocco
  • Author: Johan Prinsloo, John Muellbauer, Janine Aron
  • Publication Date: 09-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Official balance sheet estimates for the household sector are not currently available in South Africa, yet, with the country's well developed financial sector and deep capital markets, asset market channels are likely to be important determinants of aggregate consumer spending and saving, consumer demand for credit and their broad money holdings. The current paper aims to produce comprehensive estimates of household balance sheets for South Africa. The paper draws, where feasible, on best practice from the Office of National Statistics of the UK and assesses the quality of the data sources and suggests areas where additional surveys or improvements in data collection procedures would be helpful to further improve the quality of the balance sheet estimates. Furthermore, quarterly balance sheet measures to 2003 are provided, and linked to quarterly measures. The main balance sheet categories are liquid assets, household debt and various categories of illiquid financial and tangible assets, including pension wealth, directly held shares and bonds, and housing. Revised debt estimates and new estimates of tangible assets for households and unincorporated businesses are provided. The paper describes the trends of the estimates of the household sector's balance sheets and of total net wealth. The paucity of data for developing and emerging market countries is illustrated by means of a survey, and lessons are drawn from the South African research for the compilation of household sector balance sheets.
  • Topic: Development, Emerging Markets, Third World
  • Political Geography: Africa, United Kingdom, South Africa
  • Author: Zhicheng Liang
  • Publication Date: 09-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Financial development can exert a significant influence on the distribution of income. In this paper, using Chinese provincial data over the period of 1991-2000 and applying the generalized method of moment (GMM) techniques, we investigate the relationship between finance and inequality in rural China by testing alternative existing theories concerning the finance-inequality nexus. A negative and linear relationship between finance and inequality is found in our estimations. The empirical results show that financial development significantly reduces income inequality in post-reform rural China.
  • Topic: Demographics, Development, Economics
  • Political Geography: China, Asia
  • Author: Xiaobo Zhang
  • Publication Date: 09-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: China's current fiscal system is largely decentralized while its governance structure is rather centralized with strong top-down mandates and a homogenous governance structure. Due to large differences in initial economic structures and revenue bases, the implicit tax rate and fiscal burdens to support the functioning of local government vary significantly across jurisdictions. Regions initially endowed with a broader nonfarm tax base do not need to rely heavily on preexisting or new firms to finance public goods provision, thereby creating a healthy investment environment for the nonfarm sector to grow. In contrast, regions with agriculture as the major economic activity have little resources left for public investment after paying the expenses of bureaucracy. Consequently, differences in economic structures and fiscal burdens may translate into a widening regional gap.
  • Topic: Development, Economics, Politics
  • Political Geography: China, Asia
  • Author: Guanghua Wan, Yin Zhang
  • Publication Date: 08-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper analyzes the evolution of poverty in China from the late 1980s to the late 1990s, employing a version of Shapley decomposition tailored to unit-record household survey data. The changes in poverty trends are attributed to two proximate causes— income growth and shifts in income distribution. Different datasets, poverty lines, poverty measures, and equivalence scales are used to examine the robustness of the results. Potential biases arising from ignoring differential regional prices and inflation are also investigated. Notwithstanding some ambiguities in the results, it is consistently found that rural poverty increased in the second half of the 1990s and adverse distributional changes are the main cause.
  • Topic: Demographics, Development, Poverty
  • Political Geography: China, Asia
  • Author: Guanghua Wan, Zhao Chen, Ming Lu
  • Publication Date: 08-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper argues that the conventional approach of data averaging is problematic for exploring the growth—inequality nexus. It introduces the polynomial inverse lag (PIL) framework so that the impacts of inequality on investment, education, and ultimately on growth can be measured at precisely defined time lags. Combining PIL with simultaneous systems of equations, we analyze the growth—inequality relationship in postreform China, finding that this relationship is nonlinear and is negative irrespective of time horizons.
  • Topic: Civil Society, Development, Education
  • Political Geography: China, Asia
  • Author: Patrick Honohan
  • Publication Date: 08-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Systematic information on household financial asset holdings in developing countries is very sparse; we review some available data and current policy debates. Although financial asset holdings by households are highly concentrated, deeper financial systems are correlated with improved income distribution. For low-income countries, the relevant question for poor households is not how much financial assets they have, but whether they have any access to financial products at all. Building on and synthesizing disparate data collection efforts by others, we produce new estimates of access percentages for over 150 countries. Across countries, access is negatively correlated with poverty rates, but the correlation is not a robust one, thus the supposed anti-poverty potential of financial access remains econometrically elusive. Despite policy focus on the value of credit instruments, it is deposit products that tend to be the first to be used as prosperity increases, before more sophisticated savings products and borrowing.
  • Topic: Civil Society, Development, Economics, Poverty
  • Author: Zhicheng Liang
  • Publication Date: 08-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Deepening financial development and rapid economic growth in China have been accompanied by widening income disparity between the coastal and inland regions. In this paper, by employing panel dataset for 29 Chinese provinces over the period of 1990-2001 and applying the generalized method of moment (GMM) techniques, we examine the impacts of financial development on China's growth performance. Our empirical results show that financial development significantly promotes economic growth in coastal regions but not in the inland regions; the weak finance-growth nexus in inland provinces may aggravate China's regional disparities.
  • Topic: Conflict Resolution, Development, Economics
  • Political Geography: China, Asia
  • Author: Geoffrey J.D. Hewings, Dong Guo, Patricio Aroca
  • Publication Date: 08-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The purpose of this paper is to examine the convergence process in China by taking into account the spatial interaction between factors. The paper shows that there has been a dramatic increase in the spatial dependence of China's per capita GDP in the last 20 years. The consequence of space plays an important role, which is reflected in the influence of a neighbour's condition on the mobility of a province's income distribution from one category to another. The dynamics of the process showed evidence that China's distribution has gone from one of convergence to stratification, and from stratification to polarization.
  • Topic: Demographics, Development, Economics
  • Political Geography: China, Asia
  • Author: Machiko Nissanke, Ernest Aryeetey
  • Publication Date: 08-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The paper examines the source of financial market fragmentation in sub-Saharan Africa in the framework of institutional economics. Based on fieldwork data from Ghana, Malawi, Nigeria, and Tanzania, it analyses financial risk management, the transaction costs for loan screening and monitoring, and contract enforcement. It shows how, faced with various institutional constraints, the range of clientele selected by formal and informal lenders becomes both narrow and at the extreme market-ends. It evaluates the prevailing state of managing risks for market structure, and binding institutional constraints for market transformation and deepening in sub-Saharan Africa.
  • Topic: Development, Economics, Markets
  • Political Geography: Africa, Tanzania, Nigeria, Ghana, Malawi
  • Author: Mingming Zhou, Iftekhar Hasan
  • Publication Date: 08-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper documents the financial and institutional developments of China during the past two decades, when China was successfully transformed from a rigid centralplanning economy to a dynamic market economy following its unique path. We empirically examine the relationship between financial development and economic growth in China by employing a panel sample covering 31 Chinese provinces during the important transition period 1986-2002. Our evidence suggests that the development of financial markets, institutions, and instruments have been robustly associated with economic growth in China.
  • Topic: Development, Economics, International Trade and Finance
  • Political Geography: China, Asia
  • Author: Nelson H. Barbosa-Filho, José A.P. de Souza, Leondardo Burlamaqui
  • Publication Date: 08-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper seeks to explain the dynamics of Brazilian industrial catch-up in the last 60 years by discussing its background institutional conditions as well as its main macroeconomic features. After a brief introduction, the second section describes how after the institutional innovations introduced during the Vargas' and Kubitschek's administrations, a Brazilian version of the Developmental State was created, releasing the growth potential of the economy during the 1950s. The third section analyses the inflationary crisis and institutional inertia of the mid-1960s, and its solution through the introduction of a new of wave of institutional innovations and conflict management devices, which lead to the Brazilian growth miracle, until the debt crisis of early 1980s signaled its end. The fourth section analyses why the financial crisis, coupled with ineffective institutional changes and unsuccessful macroeconomic stabilization plans lead growth to a halt. It also includes an analysis of the pro-market reforms from the early 1990s onwards. The fifth section concludes the paper offering a brief sketch on how the analytical narrative fits the conceptual framework within which it was performed.
  • Topic: Conflict Resolution, Development, Economics
  • Political Geography: Brazil, South America
  • Author: Bernarda Zamora, Sonia Bhalotra
  • Publication Date: 07-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper uses two large repeated cross-sections, one for the early 1990s, and one for the late 1990s, to describe growth in school enrolment and completion rates for boys and girls in India, and to explore the extent to which enrolment and completion rates have grown over time. It decomposes this growth into a component due to changes in the characteristics that determine schooling, and another associated with changes in the responsiveness of schooling to given characteristics. Our results caution against the common practice of using current data to make future projections on the assumption that the model parameters are stable. The analysis nevertheless performs illustrative simulations relevant to the question of whether India will be able to achieve the Millennium Development Goal of realising universal primary education by the year 2015. The simulations suggest that India will achieve universal attendance, but that primary school completion rates will not exhibit much progress.
  • Topic: Civil Society, Development, Education
  • Political Geography: India, Asia
  • Author: M. Sajjad Hassan
  • Publication Date: 07-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The northeast region of India remains fraught with severe violence, poor growth and acute frustration among its youth. Success of policies to resolve the region's crisis has proved less than encouraging. What could be the way out of the violence–poor growth trap? This paper argues that a key determinant of the instability in the region is the absence of the effective role of the state: to provide security and opportunities for social and economic wellbeing equitably to all sections of society; and to uphold the rule of law. For reconstruction to work the state must act to provide key political goods to all its citizens, and restore its legitimate authority by implementing policies and enforcing laws cleanly and transparently. Political leaders can contribute to this endeavour by organizing politics inclusively.
  • Topic: Conflict Resolution, Development, Government
  • Political Geography: India, Asia
  • Author: Eric S. Reinert
  • Publication Date: 07-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper argues for an 'ancient' institutional school, predating Thorstein Veblen's 'old' institutionalism. In this view, going back as far as the thirteenth century, institutions tended to be seen as specific to a mode of production. Here both institutions and development itself are context-specific and activity-specific. Much clearer than today the arrows of causality of economic development go from the mode of production to the institutional setting, not vice versa. In order to understand development, institutions can also usefully be divided into Hayekian institutions that facilitate equilibrium and Schumpeterian institutions that enable the dynamics of development and structural change.
  • Topic: Development, Economics, Education
  • Author: Tianbiao Zhu
  • Publication Date: 07-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Conventional explanations of Taiwan and China's economic success point to the shift from an import-substituting industrialization (ISI) strategy to an export-oriented industrialization (EOI) strategy. This paper argues that the development strategies in Taiwan and China have always been a combination of ISI and EOI strategies during their entire miracle-creating period; far from the shift from ISI to EOI strategies, export promotion was used in both cases to sustain ISI, which has always been the central focus of development. Behind this strategy there is a set of institutions in both Taiwan and China, which has played a key role in supporting ISI, in particular, the government, the bank sector, public enterprises, and their relationship.
  • Topic: Development, Industrial Policy
  • Political Geography: China, Israel, Taiwan, East Asia, Asia
  • Author: Patrick Karl O'Brien
  • Publication Date: 07-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: New institutional economics lacks a theory of state formation which could help us to deal with the mega question of why some states became more efficient than others at establishing and and sustaining institutions. Some kind of middle range theory could be formulated based upon historical case studies. This paper considers the case of Britain and as its title suggests degrades the myth of the United Kingdom as the paradigmn example of liberalism and laisser faire. In making its precocious transition to and industrial market economy the kingom's history is best represented as a case of successful mercantilism.
  • Topic: Development, Economics, Sovereignty
  • Political Geography: Britain, United Kingdom, Europe
  • Author: Jonathan Di John
  • Publication Date: 07-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Taxation provides one of the principal lenses in measuring state capacity, state formation and power relations in a society. This paper critically examines three main approaches (economic, administrative and political economy) to understanding taxation. It also examines differences in tax composition across middle-income developing regions and finds that Latin American economies tax upper income groups much less than in East Asia and Eastern Europe, and explores the political economy and policy implications of these differences. The paper also examines issues of tax reform in low income/post-war economies and explores the problem that capital flight poses for less developed countries.
  • Topic: Development, International Trade and Finance, Political Economy, Third World
  • Political Geography: Eastern Europe, East Asia, Latin America
  • Author: Julius Kiiza
  • Publication Date: 07-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper examines the relationship between institution building and economic performance in Mauritius, Botswana and Uganda. The rationale for comparing these cases is simple. While the three have been super-economic stars in their own right, they have achieved substantially different outcomes. Mauritius has achieved Asia-type rapid growth, backed by the structural transformation of the economy from colonial commodity production (sugar) to postcolonial higher value-added industrial and information outcomes. Botswana has delivered rapid and sustained growth with no structural economic transformation. Uganda has attained rapid growth for a shorter postcolonial period (since 1992) and with no structural transformation. This paper contends that these cross-national differences largely arise from the presence of developmental nationalism plus Weberian bureaucracies in Mauritius and Botswana, and their absence in Uganda.
  • Topic: Development, Economics, Nationalism
  • Political Geography: Uganda, Africa, Mauritius, Botswana
  • Author: Eric Rauchway
  • Publication Date: 07-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: During its development into a continental empire, the US, like other countries relied on the investment of capital and labour from abroad; unlike other countries, the US had a peculiar political institution, federalism, which channeled these resources and also determined the course of protest against these resources. The paper argues that federalism played a key role in determining the course of US economic development and reaction to this early instance of globalization, a role with possible lessons for other countries today.
  • Topic: Development, Globalization, Politics
  • Political Geography: United States
  • Author: William Lazonick
  • Publication Date: 07-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The notion that good corporate governance means maximizing shareholder value derives from the neoclassical theory of the market economy. I explain why this perspective is highly problematic for understanding the operation and performance of the business corporation and hence the institutions that, for the sake of economic development, should govern it. The main problem is that the market-economy perspective cannot comprehend the process of innovation, including the role of the business corporation. I construct a theory of the innovating firm that, when embedded in comparative-historical analysis, provides a basis for analyzing the relation between corporate governance institutions and economic development.
  • Topic: Development, Economics, Government, Markets
  • Author: Regina Laub, Yianna Lambrou
  • Publication Date: 06-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper explores the linkages between gender, local knowledge systems and agrobiodiversity for food security by using the case study of LinKS, a regional FAO project in Mozambique, Swaziland, Zimbabwe and Tanzania over a period of eight years and now concluded. The project aimed to raise awareness on how rural men and women use and manage agrobiodiversity, and to promote the importance of local knowledge for food security and sustainable agrobiodiversity at local, institutional and policy levels by working with a diverse range of stakeholders to strengthen their ability to recognize and value farmers' knowledge and to use gender-sensitive and participatory approaches in their work. This was done through three key activities: capacity building, research and communication. The results of the LinKS study show clearly that men and women farmers hold very specific local knowledge about the plants and animals they manage. Local knowledge, gender and agrobiodiversity are closely interrelated. If one of these elements is threatened, the risk of losing agrobiodiversity increases, having negative effects on food security. Increased productivity, economic growth and agricultural productivity are important elements in poverty reduction. The diverse and complex agroecological environment of Sub-Saharan Africa requires that future efforts be based on more localized solutions while maintaining a global outlook. Food security will have to build much more on local knowledge and agrobiodiversity with a clear understanding of gender implications while keeping in mind the continuously changing global socioeconomic and political conditions.
  • Topic: Agriculture, Development, Gender Issues
  • Political Geography: Africa, Mozambique, Tanzania, Zimbabwe, Swaziland
  • Author: Vasco Molini
  • Publication Date: 06-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Analysing the performance of ten developing countries, Hoddinot and Yohannes (2002) find a strong association between two measures of food security (calorie intake and mostly dietary diversity) and the increase in expenditures per capita. Using various indicators of food security, we describe the changes in food balances in Vietnam and find evidence of a substitution of poor micronutrients items (rice and cereals) with rich ones like fruit, vegetables fish and meat. Poor households, while increasing the amount of calories consumed, still lack vitamins, iron, calcium, etc. A preliminary assessment of the food security variation showed that improvements were, as expected, more concentrated among the richer Vietnamese households than the poor ones, although there was some improvement among poorer strata as well. We also focus on the calorie/expenditure elasticity and compare results for the years 1993 and 1998. Our findings confirm that this link is strong, and show that calorie income elasticity changed in the expected direction. We conclude that in general food security improved in Vietnam during 1990s although considerable differences still remain among expenditure deciles and among regions due to the accentuated spatial difference.
  • Topic: Security, Development, Human Welfare
  • Political Geography: Asia, Vietnam
  • Author: Qi Zhang, Mingxing Liu, Yiu Por Chen
  • Publication Date: 06-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Using China as a test case, this paper empirically investigates how the development of financial intermediation affects rural-urban income disparity (RUID). Using 20-year province level panel data, we find that the level of financial development is positively correlated with RUID. Examining two subperiods, 1978-88 and 1989-98, we test several competing hypotheses that may affect RUID. We find that the increase of RUID may be explained by fiscal policy during the first period and financial intermediates during the second period. In addition, we show that the direction of the Kuznets effect on RUID is sensitive to changes in government development policies. The rural development policies during the first period may have enhanced the rural development and reduced RUID. However, the financial intermediary policy during the second period focused on urban development and increased both urban growth and intra-urban inequalities, thus leading to an increase in RUID. Finally, we show that RUID is insensitive to the provincial industrial structure (the share of primary industry in GDP). These results are consistent with the traditional urban-bias hypothesis and are robust to the inclusion of controls for endogeneity issues. This study adds to the economic inequality literature by clarifying the effects of government policies on the underlying dynamics on convergent and divergent effects on rural-urban inequality.
  • Topic: Development, Economics, Government
  • Political Geography: China, Asia
  • Author: Kuan Xu, Lars Osberg
  • Publication Date: 06-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Before effective anti-poverty policy can be designed and implemented, the extent, trend and distribution of poverty must be identified. In this sense, poverty measurement is a crucial intermediate step in public policymaking and development planning. This paper asks whether the estimated proportion of the world's population with income below US$1 (adjusted according to purchasing power parity) per day is a good measure of trends in global poverty. We argue that the answer depends on two important issues in the measurement of poverty—the definition of the poverty line, and how best to summarize the level of poverty In this paper, we survey the literature on poverty measurement, demonstrate the importance of considering poverty incidence, depth and inequality jointly, present a simple but powerful graphical representation of the Sen and SST indices of poverty intensity (the poverty box) which is the FGT index of order 1 and extend our empirical work to China using the commonly accepted international poverty line definition of one half median equivalent income.
  • Topic: International Relations, Development, Poverty
  • Political Geography: China, Asia
  • Author: Guanghua Wan
  • Publication Date: 06-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The purpose of this paper is to develop two poverty decomposition frameworks and to illustrate their applicability. A given level of poverty is broadly decomposed into an overall inequality component and an overall endowment component in terms of income or consumption determinants or input factors. These components are further decomposed into finer components associated with individual inputs. Also, a change in poverty is decomposed into components attributable to the growth and redistributions of factor inputs. An empirical illustration using Chinese data highlights the importance of factor redistributions in determining poverty levels and poverty changes in rural China.
  • Topic: Development, Economics, Poverty
  • Political Geography: China, Asia
  • Author: Elaine Zuckerman, Marcia E. Greenberg
  • Publication Date: 06-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Based on analysing World Bank and other donor post-conflict reconstruction (PCR) loans and grants from rights-based, macroeconomic and microeconomic perspectives, we conclude that few PCR projects identify or address gender discrimination issues. Bank PCR investments hardly reflect Bank research recognizing that gender inequality increases the likelihood of conflict and gender equality is central to development and peace. Our conceptual framework examining women's programmes, gender mainstreaming, and gender roles in transforming violent into peaceful societies, leads to recommending that PCR projects systematically address gender issues and promote gender equality to make peace work.
  • Topic: Development, Gender Issues, Humanitarian Aid, International Trade and Finance
  • Author: Terutomo Ozawa
  • Publication Date: 06-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The notion of 'shared growth' was introduced by the World Bank in recognition of East Asia's rapid growth accompanied by poverty reduction. It emphasizes the criticality of pro-poor policies and institutional setups in the fast-developing East Asian economies. The efforts of these individual countries are, however, a necessary but not sufficient condition (explanation). There is a more essential, underlying region-wide mechanism that simultaneously promotes regionalized growth and specifically favours Asia's working mass of unskilled labour. Such an efficacious mechanism is posited in the 'flying-geese paradigm of comparative advantage recycling in labour-intensive goods'. The paper argues that a number of favourable factors have fortuitously coalesced to engender a considerably favourable condition for Asia's rapid catch-up growth in which unskilled labour (the poor) can participate as their countries' most vital input in labour-driven development.
  • Topic: Development, Economics, Poverty
  • Political Geography: East Asia, Asia