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  • 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, Political Economy
  • Political Geography: China, Asia
  • 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, Government
  • Political Geography: Asia, Australia/Pacific, Caribbean, Singapore
  • 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, Asia
  • Author: Mark McGillivray, Wim Naudé, 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, Political Theory
  • Political Geography: Iraq, Palestine, Kosovo, Somalia
  • Author: Vesselin Popovski, G Shabbir Cheema, Cameron Lowry, 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, Political Theory
  • Political Geography: Asia
  • Author: Carolyn Bull
  • Publication Date: 01-2007
  • Content Type: Policy Brief
  • Institution: United Nations University
  • Abstract: For international actors seeking to consolidate peace and democracy in disrupted states, the importance of establishing the rule of law is well-recognised. Yet this goal has proven frustratingly elusive. In the hostile intervention environment of the post-conflict disrupted state, international actors in the UN system and elsewhere have struggled to build legitimate state structures to redress disputes peacefully. They have found it even more challenging to instil principles of governance that promote accountability to the law, protect against abuse and generate trust in the state. This brief examines the difficulties faced by UN peace operations in attempting to build the rule of law, with reference to UN transitional administrations in Cambodia, Kosovo and East Timor.
  • Topic: Conflict Resolution, Development, Government, International Law, International Organization
  • Political Geography: Kosovo, Cambodia
  • Author: M. Sajjad Hassan
  • Publication Date: 07-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The northeast region of India remains fraught with severe violence, poor growth and acute frustration among its youth. Success of policies to resolve the region's crisis has proved less than encouraging. What could be the way out of the violence–poor growth trap? This paper argues that a key determinant of the instability in the region is the absence of the effective role of the state: to provide security and opportunities for social and economic wellbeing equitably to all sections of society; and to uphold the rule of law. For reconstruction to work the state must act to provide key political goods to all its citizens, and restore its legitimate authority by implementing policies and enforcing laws cleanly and transparently. Political leaders can contribute to this endeavour by organizing politics inclusively.
  • Topic: Conflict Resolution, Development, Government
  • Political Geography: India, Asia
  • Author: William Lazonick
  • Publication Date: 07-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: The notion that good corporate governance means maximizing shareholder value derives from the neoclassical theory of the market economy. I explain why this perspective is highly problematic for understanding the operation and performance of the business corporation and hence the institutions that, for the sake of economic development, should govern it. The main problem is that the market-economy perspective cannot comprehend the process of innovation, including the role of the business corporation. I construct a theory of the innovating firm that, when embedded in comparative-historical analysis, provides a basis for analyzing the relation between corporate governance institutions and economic development.
  • Topic: Development, Economics, Government, Markets
  • Author: Qi Zhang, Mingxing Liu, Yiu Por Chen
  • Publication Date: 06-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Using China as a test case, this paper empirically investigates how the development of financial intermediation affects rural-urban income disparity (RUID). Using 20-year province level panel data, we find that the level of financial development is positively correlated with RUID. Examining two subperiods, 1978-88 and 1989-98, we test several competing hypotheses that may affect RUID. We find that the increase of RUID may be explained by fiscal policy during the first period and financial intermediates during the second period. In addition, we show that the direction of the Kuznets effect on RUID is sensitive to changes in government development policies. The rural development policies during the first period may have enhanced the rural development and reduced RUID. However, the financial intermediary policy during the second period focused on urban development and increased both urban growth and intra-urban inequalities, thus leading to an increase in RUID. Finally, we show that RUID is insensitive to the provincial industrial structure (the share of primary industry in GDP). These results are consistent with the traditional urban-bias hypothesis and are robust to the inclusion of controls for endogeneity issues. This study adds to the economic inequality literature by clarifying the effects of government policies on the underlying dynamics on convergent and divergent effects on rural-urban inequality.
  • Topic: Development, Economics, Government
  • Political Geography: China, Asia
  • Author: Hyun H. Son, Nanak Kakwani
  • Publication Date: 05-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper suggests how the targeting efficiency of government programmes may be better assessed. Using the 'pro-poor policy' (PPP) index developed by authors, the study investigates the pro-poorness of not only government programmes geared to the poorest segment of the population, but also basic service delivery in education, health and infrastructure. This paper also shows that the targeting efficiency for a particular socioeconomic group should be judged on the basis of a 'total-group PPP index', to capture the impact of operating a programme within the group. Using micro-unit data from household surveys, the paper presents a comparative analysis for Thailand, Russia, Vietnam and 15 African countries.
  • Topic: International Relations, Economics, Government, Poverty
  • Political Geography: Africa, Russia, Vietnam, Thailand