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Begin New Search Topic Development Content Type Working Paper Publishing Institution The Brookings Institution

31. Financial Globalization and Economic Policies

Author:
Eswar Prasad, Kenneth Rogoff, M. Ayhan Kose, and Shang-Jin Wei
Publication Date:
04-2009
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
We review the large literature on various economic policies that could help developing economies effectively manage the process of financial globalization. Our central findings indicate that policies promoting financial sector development, institutional quality and trade openness appear to help developing countries derive the benefits of globalization. Similarly, sound macroeconomic policies are an important prerequisite for ensuring that financial integration is beneficial. However, our analysis also suggests that the relationship between financial integration and economic policies is a complex one and that there are unavoidable tensions inherent in evaluating the risks and benefits associated with financial globalization. In light of these tensions, structural and macroeconomic policies often need to be tailored to take into account country specific circumstances to improve the risk-benefit tradeoffs of financial integration. Ultimately, it is essential to see financial integration not just as an isolated policy goal but as part of a broader package of reforms and supportive macroeconomic policies.
Topic:
Development, Economics, Globalization, and International Trade and Finance
Political Geography:
Global Focus

32. The Diversification Challenge in Africa's Resource-Rich Economies

Author:
John Page
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
For a growing number of countries in Africa the current commodity boom is a huge opportunity. But if the economic history of resource-rich, poor countries-especially in Africa-is any guide, rather than bringing prosperity, the resource boom may drive them into what Paul Collier (2007) in his influential book The Bottom Billion terms the "Natural Resources Trap." In Africa, countries dependent on oil, gas, and mining have tended to have weaker long-run growth, higher rates of poverty, and higher inequality than Non mineral-dependent economies at similar levels of income.
Topic:
Development, Economics, Political Economy, and Poverty
Political Geography:
Africa

33. Can the West Save Africa?

Author:
William Easterly
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The last few years have seen unprecedented attention to an attempt by Western governments to rapidly develop Africa. British Prime Minister Tony Blair called at the World Economic Forum in Davos in January 2005 for "a big, big push forward" in Africa to end poverty, financed by an increase in foreign aid. Tony Blair commissioned a Report on Africa, which released its findings in March 2005, likewise calling for a "big push." Gordon Brown and Tony Blair put the cause of ending poverty in Africa at the top of the agenda of the G-8 Summit in Gleneagles, Scotland in July 2005. In the 2005 summit at Gleneagles, Scotland, the G-8 agreed to double foreign aid to Africa, from $25 billion a year to $50 billion to finance the big push, as well as to forgive the African aid loans contracted during previous attempts at a "big push." Two years later, Germany again made Africa an important item on the agenda of the G-8 summit it hosted in Heiligendamm in June 2007. There, the G-8 again reiterated the promises made in 2005. Japan pledged to double its own aid to Africa in May 2008 over the next five years. Most recently, the G8 Summit in Japan in July 2008 agreed: "We are firmly committed to working to fulfill our commitments on Official Development Assistance made at Gleneagles, and reaffirmed at Heiligendamm, including increasing...ODA to Africa by US$ 25 billion a year by 2010."
Topic:
Development and Emerging Markets
Political Geography:
Africa, Japan, United Kingdom, and Germany

34. Expecting the Unexpected: Macroeconomic Volatility and Climate Policy

Author:
Warwick J. McKibbin, Adele Morris, and Peter J. Wilcoxen
Publication Date:
11-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
To estimate the emissions reductions and costs of a climate policy, analysts usually compare a policy scenario with a baseline scenario of future economic conditions without the policy. Both scenarios require assumptions about the future course of numerous factors such as population growth, technical change, and non-climate policies like taxes. The results are only reliable to the extent that the future turns out to be reasonably close to the assumptions that went into the model.
Topic:
Climate Change, Development, Economics, and Energy Policy

35. The Experience with Regional Economic Cooperation Organizations: Lessons for Central Asia

Author:
Johannes F. Linn and Oksana Pidufala
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Since the collapse of the Soviet Union, Central Asia has witnessed repeated efforts to strengthen regional integration through cooperation with the establishment of a number of regional organizations with Central Asian participation. In this paper, we review the experience with regional cooperation initiatives and organizations in Central Asia and the rest of the world. Using a typology of regional organizations that we have developed for this paper, we review the functions and performance of selected regional organizations and compile evidence more generally on the experience with regional cooperation around the globe. Based on this we draw some lessons to help Central Asian countries, their partners and their regional organizations respond effectively to the opportunities and challenges of regional cooperation and integration. Central Asian countries need to realize that effective cooperation is not easy. It takes time and requires a flexible, constructive approach of all major partners. It also requires effective leadership by key countries, institutions and individuals and a careful selectivity for membership and for the mandate of the organization. Where multiple regional organizations overlap in membership and mandate, it is essential to address the risk of costly duplication. The paper concludes with an assessment of the specific implications for the Central Asia Regional Economic Cooperation Program.
Topic:
Development and Regional Cooperation
Political Geography:
Central Asia, Asia, and Soviet Union

36. Post-Tsunami Aid Effectiveness in Aceh: Proliferation and Coordination in Reconstruction

Author:
Harry Masyrafah and Jock MJA McKeon
Publication Date:
11-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
On December 26, 2004, an earthquake measuring 9.0 on the Richter scale struck off the northeast coast of Nanggroe Aceh Darussalam (Aceh) on the island of Sumatra, Indonesia. In the subsequent tsunami that followed, over 150,000 people lost their lives, while an estimated 700,000 people were displaced. The scale of the damage to the local economy, infrastructure and administration was unprecedented. The magnitude of these events triggered a huge outpouring of compassion and generosity from around the world. The influx of aid and assistance into the province of Aceh in the weeks and months that followed was unprecedented and surpassed all expectations. This paper seeks to provide some insight into the effects of such an influx whilst also exploring some of the coordination mechanisms put in place to manage what was the largest reconstruction program in the developing world at the time.
Topic:
Development, Government, Human Welfare, Humanitarian Aid, and International Cooperation
Political Geography:
Indonesia

37. Making Poverty History? How Activists, Philanthropists, and the Public Are Changing Global Development

Author:
Lael Brainard and Vinca LaFleur
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The international development community as we have known it for sixty years is undergoing an extreme makeover. If its roots go back to the Marshall Plan and the founding of the Bretton Woods institutions, its modern incarnation has branched both up and out— dramatically altering the landscape of humanity's efforts to alleviate poverty.
Topic:
International Relations, Development, and Poverty
Political Geography:
United States

38. Reform of Quota and Voting Shares in the International Monetary Fund: "Nothing" Is Temporarily Preferable to an Inadequate "Something"

Author:
Ralph C. Bryant
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
A prosperous, stable world economy is in the self interest of every nation—large or small, rich or poor. The International Monetary Fund (IMF) is a worldwide intergovernmental institution that can facilitate that prosperity and stability. Because every nation has a stake, each should participate in the IMF's governance and operations. The value to each nation of an effective IMF increases as the world economy and financial system become more integrated.
Topic:
Development, Economics, International Organization, and International Political Economy

39. Free Distribution Or Cost-Sharing? Evidence From A Randomized Malaria Prevention Experiment

Author:
Jessica Cohen
Publication Date:
12-2007
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
It is widely believed that cost-sharing—charging a subsidized, positive price—for a health product is necessary to avoid wasting resources on those who will not use or do not need the product. We explore this argument in the context of a field experiment in Kenya, in which we randomized the price at which pregnant women could buy long lasting anti-malarial insecticide-treated nets (ITNs) at prenatal clinics. We find no evidence that cost-sharing reduces wastage on those that will not use the product: women who received free ITNs are not less likely to use them than those who paid subsidized positive prices. We also find no evidence that cost-sharing induces selection of women who need the net more: those who pay higher prices appear no sicker than the prenatal clients in the control group in terms of measured anemia (an important indicator of malaria). Cost-sharing does, however, considerably dampen demand. We find that uptake drops by 75 percent when the price of ITNs increases from 0 to $0.75, the price at which ITNs are currently sold to pregnant women in Kenya. We combine our estimates in a cost-effectiveness analysis of ITN prices on infant mortality that incorporates both private and social returns to ITN usage. Overall, given the large positive externality associated with widespread usage of insecticide-treated nets, our results suggest that free distribution to pregnant women is both more effective and more cost-effective than cost-sharing.
Topic:
Development, Globalization, Health, and World Health Organization
Political Geography:
Kenya

40. Utility Payments as Alternative Credit Data: A Reality Check

Author:
Sara Burr and Virginia Carlson
Publication Date:
03-2007
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Access to credit is one of the cornerstones of wealth-building in the United States. Yet, between 35 million and 54 million persons are not participating in the credit market. Many individuals outside the credit mainstream are unable to access credit, or credit at competitive rates, because of the lack of traditional information, such as mortgage and credit card payments, available on their credit files. However, there is evidence that the inclusion of alternative data on credit-like payments, such as utility payments, in credit reporting can help bridge this information gap. The first step toward filling this gap requires utility companies to systematically report these data to the major credit bureaus.
Topic:
Civil Society, Demographics, Development, and Economics
Political Geography:
United States