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  • Author: Alex Ergo, Ingo Puhl
  • Publication Date: 03-2011
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Development assistance is meant to improve the lives of poor people in developing countries, but the effectiveness of aid in meeting this goal is uncertain. Demonstrating failure—or success—is difficult because traditional donor financing mechanisms track inputs, not results. This is compounded by poor coordination between actors and a lack of transparency, accountability, and country ownership. Development assistance that is ineffective or has unknown outcomes wastes resources, erodes the constituency for aid, and most importantly fails to improve the lives of poor people as much as it could. TrAid+ is a new mechanism that aims to address these problems by creating a market for certified development outputs—outputs for which both the delivery and the quality have been verified. By ensuring that these outputs, such as safe deliveries or gas connections, meet certain standards, trAid+ acts as a third-party stamp of approval that donors, tax payers, recipient-country governments, service providers, and beneficiaries can trust to know that their aid is being used effectively and is contributing to the development objectives of the recipient country. And trAid+ makes all information accessible online, making it easier for funders to link with projects that are working and projects that are working to link with anyone interested in purchasing certified development outputs. TrAid+ can be tailored to any sector where outputs can be clearly defined and measured, whether health, education, infrastructure, or agriculture. This paper describes the trAid+ concept in detail and proposes practical steps to establish the trAid+ platform.
  • Topic: Development, Humanitarian Aid, Poverty, Foreign Aid
  • Author: Francis Fukuyama, Nancy Birdsall
  • Publication Date: 03-2011
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: A clear shift in the development agenda is underway. Traditionally, an agenda generated in the developed world was implemented in—and, indeed, often imposed on—the developing world. The United States, Europe, and Japan will continue to be significant sources of economic resources and ideas, but the emerging markets will become significant players. Countries such as Brazil, China, India, and South Africa will be both donors and recipients of resources for development and of best practices for how to use them. In fact, development has never been something that the rich bestowed on the poor but rather something the poor achieved for themselves. It appears that the Western powers are finally waking up to this truth in light of a financial crisis that, for them, is by no means over.
  • Topic: Development, Economics, Emerging Markets, Poverty, Foreign Aid
  • Political Geography: United States, Japan, China, Europe, India, South Africa, Brazil
  • Author: Amanda Glassman, Lisa Carty, J. Stephen Morrison, Margaret Reeves
  • Publication Date: 06-2011
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: On June 13, the GAVI Alliance convenes its first pledging conference in London with the aim of securing $3.7 billion to immunize an additional 250 million children by 2015. Founded in 2000, GAVI is an innovative partnership that combines donors, partner governments, UNICEF, WHO, civil society, and the private sector. It is designed to accelerate the financing and delivery of selected vaccines and related health services to the world's most disadvantaged populations. As GAVI enters its second decade of operations, it has established itself as a quiet success. And as it strives to sustain and expand its model of operations, it simultaneously strives to make itself better known and understood; better led, managed, and resourced; better assured of essential high-level political and financial support; and better served by well-functioning relations with its many essential partners.
  • Topic: Development, Economics, Health, Foreign Aid
  • Author: Royce Bernstein Murray, Sarah Petrin Williamson
  • Publication Date: 06-2011
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: After a natural catastrophe in a developing country, international migration can play a critical role in recovery. But the United States has no systematic means to leverage the power and cost-effectiveness of international migration in its post-disaster assistance portfolios. Victims of natural disasters do not qualify as refugees under U.S. or international law, and migration policy toward those fleeing disasters is set in a way that is haphazard and tightly constrained. This paper comprehensively explores the legal means by which this could change, allowing the government more flexibility to take advantage of migration policy as one inexpensive tool among many tools for post-disaster assistance. It explores both the potential for administrative actions under current law and the potential for small changes to current law. For concreteness, it focuses on the case of the 2010 earthquake in Haiti, but its policy lessons apply to future disasters that are sadly certain to arrive. The paper neither discusses nor recommends "opening the gates" to all disaster victims, just as current U.S. refugee law does not open the gates to all victims of persecution, but rather seeks to identify those most in need of protection and provide a legal channel for entry and integration into American life.
  • Topic: Humanitarian Aid, Migration, Natural Disasters, Foreign Aid
  • Political Geography: United States
  • Author: Benjamin Leo
  • Publication Date: 06-2011
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: In recent years, a number of private foundations and organizations have launched ambitious initiatives to support promising entrepreneurs in developing countries, on both a for-profit and not-for-profit basis. Many of these programs have focused exclusively on building business capacity. While these tailored programs play an important role in supporting small- and medium-sized enterprise (SME) development, their overall effectiveness remains hamstrung in part by continuing constraints on entrepreneurs' access to expansion and operating capital. Simultaneously, the U.S. government, other bilateral donors, and international financial institutions (IFIs) have launched a series of initiatives that provide both financial and technical assistance to SMEs in developing countries. Surprisingly, collaboration or formalized partnerships between private foundations and donor agencies has been somewhat limited-particularly on a strategic or globalized basis. This paper is targeted for these private foundations, especially those focused on women entrepreneurship. First, it provides a brief literature review of the rationale for and against SME initiatives. Second, it presents an overview of existing targeted USG and IFI programs. Lastly, it offers several new, incremental options for private foundations to establish focused partnerships with donor agencies in support of their ongoing organizational goals.
  • Topic: Development, Humanitarian Aid, Foreign Aid
  • Political Geography: United States
  • Author: Alan Gelb, Caroline Decker
  • Publication Date: 06-2011
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Cash transfers are often a good way for developing countries to address economic and social problems. They are less expensive than directly providing goods and services and allow recipients the flexibility to spend on what they need the most, but for many developing countries, the technical requirements for large-scale programs have been prohibitive. Now, however, biometric technologies have improved and become ubiquitous enough to allow the confident identification and low cost needed to implement successful cash-transfer programs in developing countries. This paper surveys the arguments for and against cash-transfer programs in resource-rich states, discusses some of the new biometric identification technologies, and reaches preliminary conclusions about their potentially very large benefits for developing countries. The barriers to cash-transfers are no longer technical, but political.
  • Topic: Development, Economics, Science and Technology, Foreign Aid
  • Author: Charles Kenny, Ursula Casabonne
  • Publication Date: 05-2011
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Casabonne and Kenny argue that two major factors underlie improved global health outcomes: first, the discovery of cheap technologies that can dramatically improve outcomes; second, the adoption of these technologies, thanks to the spread of knowledge. Other factors have played a role. Increased income not only allows for improved nutrition, but also helps to improve access to more complex preventative technologies. Institutional development is a second key to the spread of such complex technologies. Nonetheless, evidence of dramatic health improvements even in environments of weak institutions and stagnant incomes suggests that the role of these factors may be secondary.
  • Topic: Development, Health, Poverty, Foreign Aid
  • Author: Nancy Birdsall, Benjamin Leo
  • Publication Date: 04-2011
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: The global community faces a number of critical challenges ranging from climate change to crossborder health risks to natural-resource scarcities. Many of these so-called global commons problems carry grave risks to economic growth in the developing world and to the livelihoods and welfare of their people. Climate change is the classic example. Despite the risks involved, donor governments have funded programs addressing global challenges such as climate change at far lower levels than traditional programs of country-based development assistance. The prospects for dealing with such global challenges will depend at least in part on new collective financing mechanisms.
  • Topic: Climate Change, Development, Health, Humanitarian Aid, Foreign Aid
  • Author: John Gorlorwulu
  • Publication Date: 07-2011
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Countries emerging from protracted and devastating conflicts are often seen as needing significant external intervention in their financial markets to rebuild their private sector and promote quick and effective economic recovery. Despite enormous challenges, the provision of credit or the implementation of various lending schemes often dominate efforts to promote domestic private-sector recovery in the immediate aftermath of conflict. This approach raises a number of questions: First, how effective are loan programs in the development of domestic enterprises in the immediate aftermath of conflicts? Second, can loan programs work without significant improvements in the business climate? How sensitive is the design of lending programs to the success of domestic enterprise development projects following devastating conflicts? This paper explores the experience of the Liberian Enterprise Development Finance Company, which was established in 2007 to provide medium-and long-term credit to small and medium domestic enterprises. In addition to shedding light on the challenges such an enterprise faces in a post conflict environment, the paper explores whether the strategies employed are effective and if there are opportunities for effecting remedial changes that could improve the outcomes of such a program in post-conflict environments generally.
  • Topic: Conflict Resolution, Civil War, Development, Foreign Aid, Foreign Direct Investment
  • Political Geography: Africa, Liberia
  • Author: Amanda Glassman, William Savedoff
  • Publication Date: 07-2011
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Global health aid is exceedingly complex. It encompasses more than one hundred bilateral agencies, global funds, and independent initiatives that interact with an equally complex and diverse set of institutions involved in financing and providing health care in developing countries. Numerous efforts have been made to better coordinate these activities in the interest of making them more effective. The Health Systems Funding Platform (the Platform) is one of the most recent of these initiatives. Established in 2009, the Platform has advanced farthest in two countries, Ethiopia and Nepal, and is currently expanding to several others. This paper briefly assesses the Platform and argues that the way the initiative is proceeding differs little from prior initiatives, such as sector- wide approaches and budget support. However, the initiative does represent an opportunity to make global health aid more effective if it were to deepen its commitment to improving information for policy, link funding explicitly to well-chosen independently verified indicators, and establish an evaluation strategy to learn from its experience.
  • Topic: Development, Health, International Cooperation, International Organization, Foreign Aid
  • Political Geography: Nepal, Ethiopia