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  • Author: Diego Sánchez-Ancochea
  • Publication Date: 05-2020
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: This paper studies the determinants of income inequality in Latin America over the long run, comparing them with explanations of why the whole region is unequal. I first show how land inequality can account for differences between Latin America and other parts of the world but how it does not explain within-region differences. Using qualitative comparative analysis, I then consider how political institution and actors interact with the economic structure (i.e., type of export specialization) and with the ethnic composition of the population. The paper has several findings. A low indigenous/afrodescendant population is a necessary condition for relatively low inequality. I identify two sufficient-condition paths, both of which include the role of democracy, political equality, and a small indigenous and afrodescendant population. The first path also includes a favorable export specialization, while the second one includes the presence of leftist presidents instead. The paper calls for more explicit comparisons between our analytical models for the whole region and our explanations of between-country differences. Hopefully, the paper can also trigger more research on how the interactions between ethnicity, politics, and the export structure shape inequality in Latin America.
  • Topic: Civil Society, Development, Political Economy, Poverty, Race, Social Movement, Democracy, Inequality, Ethnicity
  • Political Geography: Latin America
  • Author: Tijan L. Bah, Catia Batista
  • Publication Date: 06-2020
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: Irregular migration to Europe by sea, though risky, remains one of the most popular migration options for many sub-Saharan Africans. This study examines the determinants of irregular migration from West Africa to Europe. We implemented an incentivized lab-in-thefield experiment in rural Gambia, the country with the region’s highest rate of irregular migration to Europe. Male youths aged 15 to 25 were given hypothetical scenarios regarding the probability of dying en route to Europe and of gaining legal residence status after successful arrival. According to the data we collected, potential migrants overestimate both the risk of dying en route to Europe and the probability of obtaining legal residency status. In this context, our experimental results show that providing potential migrants with official numbers on the probability of getting a legal residence permit decreases their likelihood of migration by 2.88 percentage points (pp), while information on the death risk of migrating increases their likelihood of migration by 2.29 pp—although the official numbers should be regarded as a lower bound to actual mortality. Follow-up data collected one year after the experiment show that the migration decisions reported in the lab experiment correlate well with actual migration decisions and intentions. Overall, our study indicates that the migration decisions of potential migrants are likely to respond to relevant information.
  • Topic: Development, Globalization, Migration, Internet, Economic growth, Borders, Violence
  • Political Geography: Africa, Gambia
  • Publication Date: 08-2020
  • Content Type: Working Paper
  • Institution: Center for Economic and Social Development (CESD)
  • Abstract: Azerbaijan became the country among the post-soviet countries, that allocated the largest share of GDP, in order to eliminate the economic challenges caused due to the outbreak of COVID-19. Providing favorable economic conditions in the post-pandemic period is as crucial as supporting the economy during the period of the pandemic. It is an undeniable fact that the impact of the pandemic on the economy might be fully assessed only over time. Experience demonstrates that early evaluation may lead to even greater recession and instability. This paper aims to demonstrate the challenges faced by Azerbaijan in the framework of the fight against a pandemic. Since the economy of a country was affected, a detailed analysis may provide a better understanding of the outcome, enlightening the areas which need more support and development.
  • Topic: Development, Economy, COVID-19, Health Crisis
  • Political Geography: Eurasia, Caucasus, Azerbaijan
  • Author: Kelesego Mmolainyane
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Botswana Institute for Development Policy Analysis
  • Abstract: In her quest to further graduate to the high-income status, Botswana seeks to invest more in infrastructure development for both productive and social use. An efficient and effective infrastructure provision is fundamental to excellent public service delivery and access. Sadly, Botswana, like many other world economies, has a challenge of having an infrastructure financing gap. One of the innovative ways to fill this gap is through public private partnerships (PPPs) with the capital market that has excess liquidity. Infrastructure PPPs are complex and capital intensive projects that require project finance experts to advise parties involved regarding returns and risks associated with each project. Various project-financing models can be designed to suit project specifications and they cannot be over-generalised for all PPP projects. Nevertheless, given the tight fiscal space, Botswana now, more than ever, should consider issuing PPP bonds and applying user changes model to finance economic PPP infrastructure for sustainable and inclusive economic growth.
  • Topic: Development, Economics, Infrastructure, Finance, Public Sector, Economic Development , Private Sector
  • Political Geography: Africa, Botswana
  • Author: Johanne Motsatsi, Goitseone Khanie
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Botswana Institute for Development Policy Analysis
  • Abstract: The paper examines the key determinants of industrial growth in Botswana, using manufacturing sector value added as the proxy for industrial growth. It employs the Autoregressive Distributed Lag (ARDL) cointegration approach using annual time series data for the period 1983 to 2015. Empirical results show that industrial growth is driven by financial sector development, human capital development, trade openness and foreign direct investment. Specifically, domestic credit to the private sector as a percentage of GDP and secondary school enrolment ratio are found to be significantly related to manufacturing value added as a percentage of GDP both in the long run and short run. While the relationship is limited to long run for total trade to GDP, it only exits in the short run for FDI net inflows. The study therefore recommends that policy makers should design and ensure proper implementation of financial sector development strategies that can help ease access to credit for manufacturing enterprises in the country. There is also a need for a holistic approach in the design and implementation of innovation and human resource development policies in order to provide a conducive environment for skills acquisition, innovation and technological advancements in the manufacturing sector. Trade policies and export promotion strategies should heighten productivity and value addition in the manufacturing sector, so as to make local firms internationally competitive. Finally, with regards to FDI, the Government of Botswana should create an environment that could entice multinationals to invest in the local manufacturing industry. This, however, should be coupled with protectionist policies to avoid crowding out local manufacturers and exposing them to foreign competition.
  • Topic: Development, Economics, Economic growth, Manufacturing, Economic Development , Industrialization
  • Political Geography: Africa, Botswana
  • Author: Marumo Omotoye
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Botswana Institute for Development Policy Analysis
  • Abstract: The construction industry (CI) is considered one of the most corrupt both internationally and regionally. Therefore, this study examined the views and attitudes of professionals in Botswana’s CI towards the role whistleblowing (or protected disclosure) can play in curbing corruption in the sector. A convergent mixed methods approach was adopted. Semi-structured interviews were conducted with key stakeholders from the construction industry. Furthermore, a self-administered survey was utilised to collect quantitative data from 117 construction firms. Data revealed that there was little awareness of whistleblowing legislation. Fear of retaliation or punishment and job loss, and a lack of education on whistleblowing were identified as some of the most substantial barriers to effective whistleblowing in the industry. From a public policy perspective, it is recommended that an emphasis be placed on improving levels of education and awareness on whistleblowing in the construction sector. In addition, there should be consideration to amend the Whistleblowing Act 2016 to include construction industry regulators, the Public Procurement and Asset Disposal Board, and private media amongst the list of institutions authorised to receive reports of impropriety in order to extend the scope of legal protection to whistleblowers in the sector. Recommendations for further research are provided.
  • Topic: Corruption, Development, Economics, Public Sector, Manufacturing, Economic Development , Private Sector, Industry, Whistle Blowing
  • Political Geography: Africa, Botswana
  • Author: Mark H. Moore
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: This is one of a series of working papers from “RISE"—the large-scale education systems research programme supported by the UK’s Department for International Development (DFID), Australia’s Department of Foreign Affairs and Trade (DFAT), and the Bill and Melinda Gates Foundation.
  • Topic: Development, Education, Governance, Developing World
  • Political Geography: Global Focus
  • Author: Michael Woolcock
  • Publication Date: 06-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: Many development agencies and governments now seek to engage directly with local communities, whether as a means to the realization of more familiar goals (infrastructure, healthcare, education) or as an end in itself (promoting greater inclusion, participation, well-being). These same agencies and governments, however, are also under increasing pressure to formally demonstrate that their actions ‘work’ and achieve their goals within relatively short timeframes – expectations which are, for the most part, necessary and desirable. But adequately assessing ‘community-driven’ approaches to development requires the deployment of theory and methods that accommodate their distinctive characteristics: building bridges is a qualitatively different task to building the rule of law and empowering minorities. Moreover, the ‘lessons’ inferred from average treatment effects derived from even the most rigorous assessments of community-driven interventions are likely to translate poorly to different contexts and scales of operation. Some guidance for anticipating and managing these conundrums are provided.
  • Topic: Development, Government, Infrastructure, International Development
  • Political Geography: Global Focus, United States of America
  • Author: Eduardo Fernández-Arias, Ricardo Hausmann, Ugo Panizza
  • Publication Date: 04-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: The conventional paradigm about development banks is that these institutions exist to target well-identified market failures. However, market failures are not directly observable and can only be ascertained with a suitable learning process. Hence, the question is how do the policymakers know what activities should be promoted, how do they learn about the obstacles to the creation of new activities? Rather than assuming that the government has arrived at the right list of market failures and uses development banks to close some well-identified market gaps, we suggest that development banks can be in charge of identifying these market failures through their loan-screening and lending activities to guide their operations and provide critical inputs for the design of productive development policies. In fact, they can also identify government failures that stand in the way of development and call for needed public inputs. This intelligence role of development banks is similar to the role that modern theories of financial intermediation assign to banks as institutions with a comparative advantage in producing and processing information. However, while private banks focus on information on private returns, development banks would potentially produce and organize information about social returns.
  • Topic: Development, Industrial Policy, Markets, Banks
  • Political Geography: Global Focus, Global Markets
  • Author: Michael Woolcock
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: A defining task of development is enhancing a state’s capability for policy implementation. In most low- income countries, alas, such capabilities seem to be stagnant or declining, in no small part because dominant reform strategies are ill-suited to addressing complex non-technical aspects. This has been recognized for at least six decades – indeed, it was a centerpiece of Albert Hirschman’s understanding of the development process – yet this critique, and the significance of its implications, remain on the margins of scholarship and policy. Why? I consider three options, concluding that, paradoxically, followers of Hirschman’s approach inadequately appreciated that gaining more operational traction for their approach was itself a type of problem requiring their ideas to embark on ‘a long voyage of discovery’, a task best accomplished, in this instance, by building – and tapping into the distinctive insights of – a diverse community of development practitioners.
  • Topic: Development, Political Economy, Developing World, International Development
  • Political Geography: North America, United States of America