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  • Author: Matt Collin, Theodore Talbot
  • Publication Date: 06-2017
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Child marriage is associated with bad outcomes for women and girls. Although many countries have raised the legal age of marriage to deter this practice, the incidence of early marriage remains stubbornly high. We develop a simple model to explain how enforcing minimum age-of-marriage laws creates differences in the share of women getting married at the legal cut-off. We formally test for these discontinuities using multiple rounds of the Demographic and Health Surveys (DHS) in over 60 countries by applying statistical tests derived from the regression discontinuity literature. By this measure, most countries are not enforcing the laws on their books and enforcement is not getting better over time. Separately, we demonstrate that various measures of age-of-marriage discontinuities are systematically related to with existing, widely-accepted measures of rule-of-law and government effectiveness. A key contribution is therefore a simple, tractable way to monitor legal enforcement using survey data. We conclude by arguing that better laws must be accompanied by better enforcement and monitoring in to delay marriage and protect the rights of women and girls.
  • Topic: Development, Gender Issues
  • Political Geography: Global Focus
  • Author: Owen Barder
  • Publication Date: 05-2015
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Governments, donors, and public sector agencies are seeking productive ways to 'crowd in' private sector involvement and capital to tackle international development challenges. The financial instruments that are used to create incentives for private sector involvement are typically those that lower an investment's risk (such as credit guarantees) or those that lower the costs of various inputs (such as concessional loans, which subsidise borrowing).
  • Topic: Development, Government
  • Publication Date: 05-2015
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Governments, donors, and public sector agencies are seeking productive ways to ‘crowd in’ private sector involvement and capital to tackle international development challenges. The financial instruments that are used to create incentives for private sector involvement are typically those that lower an investment’s risk (such as credit guarantees) or those that lower the costs of various inputs (such as concessional loans, which subsidise borrowing).
  • Topic: Development, Economics, International Trade and Finance
  • Author: Peter Edward, Andy Sumner
  • Publication Date: 09-2015
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: This paper considers the effectiveness and efficiency of global growth, as a route to poverty reduction, since 1990 and then demonstrates the redistributive challenges implicit in various poverty lines and scenarios: the significance being that this historical data can inform understanding and appreciation of what it would involve to end global poverty in the future. We find that a very modest redistribution of global growth could have ended poverty already at the lowest poverty lines. However, higher, but arguably more reasonable, poverty lines present radically different challenges to the current workings of national economic systems and to global (normative) obligations.
  • Topic: Development, Economics, Humanitarian Aid, Poverty
  • Author: Devesh Kapur, Arjun Raychaudhuri
  • Publication Date: 01-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Since their inception, through 2012, the institutions comprising the World Bank group have been involved in lending nearly a trillion dollars. In this paper, we focus on the IBRD, which is the core of the World Bank. The IBRD has the potential to continue to grow and be an important player in official financial flows, supporting critical long-term development projects with large social returns, in sectors ranging from infrastructure, social sectors, or environment.
  • Topic: Development, Economics, Environment, Foreign Aid, Infrastructure, World Bank
  • Political Geography: Europe
  • Author: Nancy Birdsall, Christian J. Meyer
  • Publication Date: 01-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: We argue that survey-based median household consumption expenditure (or income) per capita be incorporated into standard development indicators, as a simple, robust, and durable indicator of typical individual material well-being in a country. Using household survey data available for low- and middle-income countries from the World Bank's PovcalNet tool, we show that as a measure of income-related well-being, it is far superior to the commonly used GDP per capita as well as survey-based measures at the mean. We also argue that survey-based median measures are "distributionaware", i.e. when used as the denominator of various widely available indicators such as mean consumption expenditure per capita they provide a "good-enough" indicator of consumption (or income) inequality. Finally, as a post-2015 indicator of progress at the country-level in promoting shared development and reducing inequality, we propose that the rate of increase in median consumption per capita after taxes and transfers exceed the rate of increase in average consumption in the same period.
  • Topic: Development, Diplomacy, Poverty, World Bank
  • Political Geography: United Nations
  • Author: Vijaya Ramachandran, Alan Gelb, Christian J. Meyer
  • Publication Date: 02-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: We consider economic development of Sub-Saharan Africa from the perspective of slow convergence of productivity, both across sectors and across firms within sectors. Why have "productivity enclaves", islands of high productivity in a sea of smaller low-productivity firms, not diffused more rapidly? We summarize and analyze three sets of factors: First, the poor business climate, which constrains the allocation of production factors between sectors and firms. Second, the complex political economy of business-government relations in Africa's small economies. Third, the distribution of firm capabilities. The roots of these factors lie in Africa's geography and its distinctive history, including the legacy of its colonial period on state formation and market structure.
  • Topic: Development, Economics, Industrial Policy, Markets
  • Political Geography: Africa
  • Author: Jonah Busch, Kalifi Ferretti-Gallon
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: We have constructed a comprehensive database of 117 spatially explicit econometric studies of deforestation published in peer-reviewed academic journals from 1996-2013. We present a metaanalysis of what drives deforestation and what stops it, based on the signs and significance of 5909 coefficients in 554 multivariate analyses. We find that forests are more likely to be cleared where economic returns to agriculture and pasture are higher, either due to more favorable climatological and topographic conditions, or due to lower costs of clearing forest and transporting products to market. Timber activity, land tenure security, and community demographics do not show a consistent association with either higher or lower deforestation. Population is consistently associated with greater deforestation, and poverty is consistently associated with lower deforestation, but in both cases endogeneity makes a causal link difficult to infer. Promising approaches for stopping deforestation include reducing the intrusion of road networks into remote forested areas; targeting protected areas to regions where forests face higher threat; tying rural income support to the maintenance of forest resources through payments for ecosystem services; and insulating the forest frontier from the price effects of demand for agricultural commodities.
  • Topic: Development, Economics, Environment, Industrial Policy
  • Political Geography: United Nations
  • Author: William Savedoff, Victoria Fan
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Almost every country exhibits two important health financing trends: health spending per person rises and the share of out-of-pocket spending on health services declines. We describe these trends as a "health financing transition" to provide a conceptual framework for understanding health markets and public policy. Using data over 1995-2009 from 126 countries, we examine the various explanations for changes in health spending and its composition with regressions in levels and first differences. We estimate that the income elasticity of health spending is about 0.7, consistent with recent comparable studies. Our analysis also shows a significant trend in health spending - rising about 1 percent annually - which is associated with a combination of changing technology and medical practices, cost pressures and institutions that finance and manage healthcare. The out-of-pocket share of total health spending is not related to income, but is influenced by a country's capacity to raise general revenues. These results support the existence of a health financing transition and characterize how public policy influences these trends.
  • Topic: Development, Economics, Health, Governance
  • Political Geography: United States
  • Author: Amanda Glassman, Justin Sandefur
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Across multiple African countries, discrepancies between administrative data and independent household surveys suggest official statistics systematically exaggerate development progress. We provide evidence for two distinct explanations of these discrepancies. First, governments misreport to foreign donors, as in the case of a results-based aid program rewarding reported vaccination rates. Second, national governments are themselves misled by frontline service providers, as in the case of primary education, where official enrollment numbers diverged from survey estimates after funding shifted from user fees to per pupil government grants. Both syndromes highlight the need for incentive compatibility between data systems and funding rules.
  • Topic: Development, Foreign Aid, Foreign Direct Investment, Governance, Developing World
  • Political Geography: Africa
  • Author: Andy Sumner, Sergio Tezanos Vázquez
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Many existing classifications of developing countries are dominated by income per capita (such as the World Bank's low, middle, and high income thresholds), thus neglecting the multidimensionality of the concept of 'development'. Even those deemed to be the main 'alternatives' to the income-based classification have income per capita heavily weighted within a composite indicator. This paper provides an alternative perspective: clusters of developing countries. We take 4 'frames' on the meaning of development: economic development, human development, better governance, and environmental sustainability. We then use a cluster procedure in order to build groups of countries that are to some extent internally 'homogeneous', but noticeably dissimilar to other groups. The advantage of this procedure is that it allows us identify the key development characteristics of each cluster of countries and where each country fits best. We then use this taxonomy to analyze how the developing world has changed since the late 1990s in terms of clusters of countries and the country groupings themselves.
  • Topic: Development, Economics, Governance, Reform
  • Author: Gabriel Demombynes, Justin Sandefur
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: The lack of reliable development statistics for many poor countries has led the U.N. to call for a “data revolution” (United Nations, 2013). One fairly narrow but widespread interpretation of this revolution is for international aid donors to fund a coordinated wave of household surveys across the developing world, tracking progress on a new round of post-2015 Sustainable Development Goals. We use data from the International Household Survey Network (IHSN) to show (i) the supply of household surveys has accelerated dramatically over the past 30 years and that (ii) demand for survey data appears to be higher in democracies and more aid-dependent countries. We also show that given existing international survey programs, the cost to international aid donors of filling remaining survey gaps is manageable--on the order of $300 million per year. We argue that any aid-financed expansion of household surveys should be complemented with (a) increased access to data through open data protocols, and (b) simultaneous support for the broader statistical system, including routine administrative data systems.
  • Topic: Development, Human Welfare, Infrastructure
  • Political Geography: Asia, United Nations
  • Author: Dean Karlan, Pia Raffler, Greg Fischer, Margaret McConnell
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: In a field experiment in Uganda, we find that demand after a free distribution of three health products is lower than after a sale distribution. This contrasts with work on insecticide-treated bed nets, highlighting the importance of product characteristics in determining pricing policy. We put forward a model to illustrate the potential tension between two important factors, learning and anchoring, and then test this model with three products selected specifically for their variation in the scope for learning. We find the rank order of shifts in demand matches with the theoretical prediction, although the differences are not statistically significant.
  • Topic: Development, Health
  • Political Geography: Uganda, Africa
  • Author: Andy Sumner, Peter Edward
  • Publication Date: 09-2013
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: The interplay of between-and within-country inequality, the relative contribution of each to overall global inequality, and the implications this has for who benefits from recent global growth (and by how much), has become a significant avenue for economic research. However, drawing conclusions from the commonly used aggregate inequality indices such as the Gini and Theil makes it difficult to take a nuanced view of how global growth interacts with changing national and international inequality.
  • Topic: Cold War, Development, Economics, Globalization
  • Author: Lant Pritchett, Marla Spivack
  • Publication Date: 08-2013
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: How much larger are the consumption possibilities of an urban US household with per capita expenditures of 1,000 US dollars per month than a rural Indonesian household with per capita expenditures of 1,000,000 Indonesian Rupiah per month? Consumers in different markets face widely different consumption possibilities and prices and hence the conversion of incomes or expenditures to truly comparable units of purchasing power is extremely difficult. We propose a simple supplement to existing purchasing power adjusted currency conversions.
  • Topic: Development, Economics, Political Economy, Political Theory, Social Stratification, Socialism/Marxism
  • Political Geography: United States, Southeast Asia
  • Author: Charles Kenny, William Savedoff
  • Publication Date: 10-2013
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: A common objection to results-based programs is that they are somehow more vulnerable to corruption. This paper explains why results-based approaches to foreign aid may be less vulnerable to corruption than the traditional approaches which monitor and track the purchase and delivery of inputs and activities. The paper begins by classifying different corruption costs and specifically distinguishes the problem of diverted funds from the costs associated with failing to generate benefits. It then characterizes the key differences between traditional input-tracking programs and results-based approaches in terms of how they are supposed to work, the implicit risks that preoccupy designers, how they function in practice, and what this means both for the scale of corruption and the realization of benefits. It then considers the conditions under which one approach or another might be more appropriate. The paper concludes that input-tracking approaches are vulnerable to corruption because they have high failure costs and a weak track record for controlling diverted funds. By contrast, results-based approaches are less prone to failure costs and limit the capacity of dishonest agents to divert funds unless those agents first improve efficiency and outputs.
  • Topic: Corruption, Development, Foreign Aid, Governance
  • Author: Michael Clemens, Gabriel Demombynes
  • Publication Date: 09-2013
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: The Millennium Villages Project is a high profile, multi-country development project that has aimed to serve as a model for ending rural poverty in sub-Saharan Africa. The project became the subject of controversy when the methodological basis of early claims of success was questioned. The lively ensuing debate offers lessons on three recent mini-revolutions that have swept the field of development economics: the rising standards of evidence for measuring impact, the “open data” movement, and the growing role of the blogosphere in research debates.
  • Topic: Development, Economics, Poverty, Foreign Aid
  • Political Geography: Africa
  • Author: Amanda Glassman, Denizhan Duran, Rachel Silverman, Victoria Fan
  • Publication Date: 10-2013
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: More than ever, global health funding agencies must get better value for money from their investment portfolios; to do so, each agency must know the interventions it supports and the sub-populations targeted by those interventions in each country.
  • Topic: Foreign Policy, Development, Economics, Health, Humanitarian Aid, Health Care Policy
  • Political Geography: India, Philippines, Ethiopia, Nigeria
  • Author: Benjamin Leo
  • Publication Date: 12-2013
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: The United States government has made repeated declarations over the last decade to align its assistance programs behind developing countries' priorities. By utilizing public attitude surveys for 42 African and Latin American countries, this paper examines how well the US has implemented this guiding principle. Building upon the Quality of Official Development Assistance Assessment (QuODA) approach, I identify what people cite most frequently as the 'most pressing problems' facing their nations and then measure the percentage of US assistance commitments that are directed towards addressing them. By focusing on public surveys over time, this analysis attempts to provide a more nuanced and targeted examination of whether US portfolios are addressing what people care the most about. As reference points, I compare US alignment trends with the two regional multilateral development banks (MDBs) – the African Development Bank and the Inter-American Development Bank. Overall, this analysis suggests that US assistance may be only modestly aligned with what people in Sub-Saharan Africa and Latin America cite as their nation's most pressing problems. By comparison, the African Development Bank – which is majority-led by regional member nations – performs significantly better than the United States. Like the United States, however, the Inter-American Development Bank demonstrates a low relative level of support for people's top concerns.
  • Topic: Security, Crime, Development, Economics, Foreign Aid
  • Political Geography: Africa, United States, America, Latin America
  • Author: Dean Karlan, Jonathan Zinman, Aishwarya Lakshmi Ratan
  • Publication Date: 11-2013
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: The poor can and do save, but often use formal or informal instruments that have high risk, high cost, and limited functionality. This could lead to undersaving compared to a world without market or behavioral frictions. Undersaving can have important welfare consequences: variable consumption, low resilience to shocks, and foregone profitable investments.
  • Topic: Development, Economics, Globalization, International Trade and Finance, Markets, Poverty, Financial Crisis