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1. Does an effective government lower COVID19’s health impact? Evidence from Viet Nam

Author:
Duc Anh Dang and Ngoc Anh Tran
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Government effectiveness has played an important role in tackling the crisis caused by the coronavirus (COVID-19) pandemic. This paper discusses the different aspects of government effectiveness in explaining the variation in the COVID-19 confirmed cases and death levels in Viet Nam. We use the Provincial Governance and Public Administration Performance Index in 2019 to measure the quality of government effectiveness at the local level. The findings show the importance of health system capacity in the battle against COVID-19. We find that increased government transparency is significantly associated with lower confirmed rates. For the impact of the level of participation, we find that provinces that have higher quality of village head elections or where people have more opportunities to participate tend to have lower infected cases, especially where people participate in the formal and informal association and have voted in the National Assembly election.
Topic:
Government, Health, Pandemic, and COVID-19
Political Geography:
Vietnam and Southeast Asia

2. Does the adoption of peer-to-government mobile payments improve tax revenue mobilization in developing countries?

Author:
Abdoul-Akim Wandaogo, Fayçal Sawadogo, and Jesse Lastunen
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Developing countries need to raise sufficient tax revenue to finance development. Revenue mobilization is often hampered by limited tax compliance, weak institutions, and technical problems with tax collection. One solution to these challenges is person-to-government (P2G) mobile phone payments, adopted in a number of developing countries since the early 2000s. This study assesses the causal effect of P2G adoption on tax revenue using propensity score matching. According to the matching estimates, countries that adopt P2G services experience a 1.2–1.3 percentage point boost in direct tax revenue as a share of GDP. P2G adoption increases revenue from both corporate and personal income taxes, with larger effects on the latter. The results remain robust to matching quality tests and alternative estimation methods, including function control, two-stage least squares, and system generalized method of moments. The average treatment effects are largest among lower-middle-income countries and countries characterized by limited tax compliance and corruption control, and by low levels of urbanization and domestic credit to the private sector. The findings suggest that developing countries, particularly those with poor institutions and low levels of financial inclusion, should promote the adoption and use of mobile money services for tax transactions.
Topic:
Development, Government, Finance, Economy, and Tax Systems
Political Geography:
Global Focus

3. Trust as state capacity: The political economy of compliance

Author:
Timothy Besley and Sacha Dray
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper explores the link between trust in government, policy-making, and compliance. It focuses on a specific channel whereby citizens who are convinced that a policy is worthwhile are more motivated to comply with it. This in turn reduces the government’s cost of implementing a policy and may also increase the set of feasible policies. Thus, state capacity is greater when citizens trust their government. The paper discusses alternative approaches to modelling the origins of trust, especially the link to the design of political institutions. We then provide empirical evidence consistent with the model’s findings that compliance is increasing in trust using the Integrated Values Survey and voluntary compliance during COVID-19 in the UK. We also show that countries with high levels of citizen trust in government were more likely to implement policies requiring voluntary compliance during the COVID-19 pandemic. The paper suggests that trust in government can play a role in building and expanding state capacities.
Topic:
Government, Political Economy, Capacity, Compliance, and Trust
Political Geography:
Global Focus

4. The impact of the COVID-19 pandemic on the poor: Insights from the Hrishipara diaries

Author:
Risto Rönkkö, Stuart Rutherford, and Kunal Sen
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In this paper, we examine the economic impact of the COVID-19 pandemic on the livelihoods of the poor. We use an unusually rich data set from a ‘financial diaries’ study known as the Hrishipara Daily Diaries Project. The data set tracks the economic and financial transactions of 60 individuals and their families in a semi-rural setting in Bangladesh on a real-time basis from October 2019 to September 2020. We document individual diarists’ behavioural responses to COVID-19, which reveal the varied experiences of the poor during the pandemic. We find that the pandemic and associated government lockdowns had significant negative effects on the livelihoods of the poor in our study, with financial inflows and outflows, incomes, and household expenditures below pre-pandemic levels during the pandemic period. To cope with the pandemic, households drew down on their cash reserves at home, as well as cutting down on non-food expenditures to protect their spending on food.
Topic:
Economics, Government, Finance, Pandemic, and COVID-19
Political Geography:
Bangladesh and South Asia

5. How do governments respond to food price volatility?

Author:
Per Pinstrup-Andersen
Publication Date:
01-2015
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
Large food price fluctuations—caused primarily by extreme weather events, market disruptions, investor behaviour and government policy—began in the world market in 2007 and presented serious challenges for governments, private traders, farmers and consumers. A collaborative project between Cornell University, University of Copenhagen, and UNU-WIDER on the political economy of food price policy studied how selected governments responded to increasing food price volatility, and explains why they responded as they did. The degree to which world market price volatility was transmitted to national and local markets varied greatly among the 16 countries included in the project. This was due to trade policies, differences between import and export parity prices, and several other factors. The low degree to which international prices were reflected in domestic prices in some cases, and the large impact of national factors—such as local weather events, poorly functioning domestic markets, and limited dependence on foreign trade—meant that the behavioural response by governments to the international food crisis tended to be similar to the responses to earlier food price fluctuations caused by national factors. Path dependence was widespread.
Topic:
Government, Markets, Food, and Volatility
Political Geography:
Global Focus

6. China's Economic Growth: Trajectories and Evolving Institutions

Author:
Jun Zhang
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper investigates the institutional reason underlying the change in the trajectory of economic growth in post-reform China, and argues that the trajectory of growth was much more normal during the period of 1978-89 than in the post-1989 era. In the former period, growth was largely induced by equality-generating institutional change in agriculture and the emergence of non-state industrial sector. In the latter period, growth was triggered by the acceleration of capital investments under authoritarian decentralized hierarchy within self-contained regions. Such a growth trajectory accelerates capital deepening, deteriorating total factor productivity and leads to rising regional imbalance. This paper further argues that the change in the trajectory of growth is the outcome of changes in political and inter-governmental fiscal institutions following the 1989 political crisis.
Topic:
Economics, Government, Industrial Policy, and Political Economy
Political Geography:
China and Asia

7. Fragile States

Author:
Mark McGillivray, Wim Naudé, and Amelia U. Santos-Paulino
Publication Date:
03-2008
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
Many of the world's poorest countries can be described as “fragile states” wherein governments cannot or will not provide an environment for households to reduce, mitigate or cope with poverty and other risks to well-being. Many of these states are in conflict or just emerging from conflict. The UNU-WIDER project “Fragility and Development” explored state fragility and its relationship to household vulnerability, noting that there is a lack of research on the economic dimensions of conflict, aid and development in fragile states. This research brief provides a summary of the various contributions made by this project, including case studies on Iraq, Kosovo, Palestine and Somalia. It also addresses a number of pertinent questions. When are states fragile? What are the costs that fragile states impose on their people and the international community? Should the sovereignty of fragile states be reconsidered? And how can aid flows to fragile states be made more effective?
Topic:
Government, Politics, Post Colonialism, and Political Theory
Political Geography:
Iraq, Palestine, Kosovo, and Somalia

8. Governance through Civil Society Engagement in Asia

Author:
Vesselin Popovski, G Shabbir Cheema, Cameron Lowry, and Mark Notaras
Publication Date:
07-2008
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
Scholars and development practitioners recognize the centrality of governance capacity to achieve sustainable peace and development objectives, including the eradication of extreme poverty, access to services and livelihoods, promotion of economic growth, environmental protection and gender equality among others. With these in view, developing countries are emphasizing the need to improve governance systems and processes to promote people-centered sustainability. The United Nations, development banks, bilateral donors and private sector foundations have been supporting these efforts through governance assistance programs.
Topic:
Civil Society, Government, and Political Theory
Political Geography:
Asia

9. Growth Oriented Macroeconomic Policies for Small Islands Economies: Lessons from Singapore

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, and Government
Political Geography:
Asia, Australia/Pacific, Caribbean, and Singapore

10. Innovation Capacity and Economic Development: China and India

Author:
Peilei Fan
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Both China and India, the emerging giants in Asia, have achieved significant economic development in recent years. China has enjoyed a high annual GDP growth rate of 10 per cent and India has achieved an annual GDP growth rate of 6 per cent since 1981. Decomposing China and India's GDP growth from 1981 to 2004 into the three factors' contribution reveals that technology has contributed significantly to both countries' GDP growth, especially in the 1990s. R outputs (high-tech exports, service exports, and certified patents from USPTO) and inputs (R expenditure and human resources) further indicate that both countries have been very committed to R and their output is quite efficient.
Topic:
Government
Political Geography:
China, India, and Asia