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521. Human Well-being: Concepts and Conceptualizations

Author:
Des Gasper
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Economic measures of income have ignored large areas of human well-being and are poor measures of well-being in the areas to which they attend. Despite increased recognition of those distortions, 'GNP per capita continues to be regarded as the quintessential indicator of a country's living standard' (Partha Dasgupta). Well-being seems to have intuitive plausibility as a concept, but in practice we encounter a bewilderingly diverse family of concepts and approaches, partly reflecting different contexts, purposes, and foci of attention. Is there a unifying framework that yet respects the complexity and diversity of well-being? This paper presents an imperfect comparative and integrative framework that builds on the contributions by Sen and others. We move toward the framework gradually, since well-being concepts are in fact complex entitities which reflect pictures of personhood and of science. Insight grows through surveying a wide range of relevant experience and views, before risking blinkering one's vision in a framework. The paper then uses the framework to examine conceptualizations of human well-being, by Dasgupta, Sen, Nussbaum, Doyal and Gough, and Alkire.
Topic:
Demographics, Development, Human Welfare, and Poverty

522. The Characteristics of Macroeconomic Shocks in the CFA Franc Zone

Author:
David Fielding, Kevin Lee, and Kalvinder Shields
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In this paper we fit a VECM in output and prices to data from ten countries of the CFA Franc Zone. This model allows for various cross-country interactions in both the short run and the long run. The VECM parameters are used to estimate persistence profiles of different kinds, in order to identify the degree of homogeneity in the way in which the countries respond to macroeconomic shocks. In this way we can shed light on questions about the likely size of the costs incurred from these countries' membership of a monetary union.
Topic:
Economics, International Organization, International Political Economy, and International Trade and Finance
Political Geography:
Africa

523. Gender-related Indicators of Well-being

Author:
Stephan Klasen
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper discusses the rationale as well as the challenges involved when constructing gender-related indicators of well-being. It argues that such indicators are critically important but that their construction involves a number of conceptual and measurement problems. Among the conceptual issues considered are the space in which gender inequality in well-being is to be measured, whether the indicators should track wellbeing of males and females separately or adjust overall measures of well-being by the gender inequality in well-being, whether gender equality in every indicator is necessarily the goal, how to assess gender inequality that is apparently desired by males and females, and what role indicators of agency or empowerment should play in genderrelated indicators of well-being. Among the most important measurement issues addressed are; the role of the household in allocating resources, the question of stocks versus flows, as well as significant data gaps when it comes to gender inequalities. Where appropriate, remedies to the conceptual and measurement issues are proposed. The paper also briefly reviews UNDP's gender-related indices to illustrate some of the challenges involved.
Topic:
Development, Gender Issues, Human Welfare, and Poverty

524. Monetary Policy in the Franc Zone: Estimating Interest Rate Rules for the BCEAO

Author:
Anja Shortland and David Stasavage
Publication Date:
02-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper examines to what extent the central bank for the West African Economic and Monetary Union (BCEAO) has used interest rate policy in response to domestic economic developments. We show that while in the long run the BCEAO matches changes in French (Eurozone) interest rates one for one, in the short run it retains freedom to react to domestic economic variables, such as inflation, the output gap, its foreign exchange position and government borrowing.
Topic:
Economics, International Organization, International Political Economy, and International Trade and Finance
Political Geography:
Africa, France, and West Africa

525. Poverty and Growth in the WAEMU after the 1994 Devaluation

Author:
Jean-Paul Azam
Publication Date:
02-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper brings out that poverty increased massively in the wake of the 1994 devaluation of the CFA franc, despite a significant recovery of economic growth. Although this increase affected all the social groups, it fell mostly on the urban poor. An analytical model is presented, which explains this puzzle by the stratification of the labour market, assuming that the formal sector workers are at the same time the investors in the informal sector. Then, capital intensity in the latter increases as the former anticipate the cut in formal sector wages that the long-awaited devaluation brings about. Ex post, they run down their assets for consumption-smoothing purposes, thus de-capitalizing the informal sector firms, with a negative impact on incomes in the (urban) informal sector.
Topic:
Economics, International Organization, International Political Economy, and International Trade and Finance
Political Geography:
Africa

526. The Impact of Monetary Union on Macroeconomic Integration: Evidence from West Africa

Author:
David Fielding and Kalvinder Shields
Publication Date:
02-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In this paper we use data from 17 African nations in order to investigate the hypothesis that monetary union – represented in this case by the CFA Franc Zone – augments the extent of macroeconomic integration. The paper covers a number of dimensions of integration including the volume of bilateral trade, real exchange rate volatility and the magnitude of cross-country business cycle correlation.
Topic:
Economics, International Organization, International Political Economy, and International Trade and Finance
Political Geography:
Africa

527. Monetary Policy in the CFA Zone: Country-level Credit Policy

Author:
Anja Shortland and David Stasavage
Publication Date:
02-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper examines whether the BCEAO has made use of the various policy instruments at its disposal for steering credit in the individual CFA zone member countries to complement interest rate policy at the zone level. We estimate whether private sector credit has responded systematically to different monetary policy variables using iterated 3-stage least squares regressions for Burkina Faso, Côte d'Ivoire, Mali, Senegal and Togo. If we constrain the coefficient estimates there is some support for the hypothesis that the BCEAO has contracted private sector credit in response to a higher inflation differential with France. However, there seems to be no policy rule to restrict private sector credit in response to increasing government borrowing from the central bank or increased foreign borrowing. If the coefficient estimates are unconstrained, there does not appear to be any systematic policy to control credit expansion at the domestic level.
Topic:
Economics, International Organization, International Political Economy, and International Trade and Finance
Political Geography:
Africa and France

528. The Costs and Benefits Analysis of CFA Membership: The Choice of an Exchange Rate Regime for the CFA Countries Zone

Author:
Mireille Linjouom
Publication Date:
02-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The paper determines an analytical framework defining the choice of an optimal exchange rate regime for a typical CFA country. The policymakers behave strategically to decide to adopt alternative exchange rate regime by minimizing their loss function under specific constraints like economic characteristics and political consideration. One concludes a CFA economy with less inflationary propensity and greater external shocks volatility will tend to select a flexible exchange rate regime. Moreover, the model suggests that a CFA country with a more unstable political system and a higher propensity to apply inflationary policies will prefer a flexible arrangement than a fixed one.
Topic:
Economics, International Organization, International Political Economy, and International Trade and Finance
Political Geography:
Africa

529. Diffusion of Digital Mobile Telephony: Are Developing Countries Different?

Author:
Petri Rouvinen
Publication Date:
02-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Factors determining the diffusion of digital mobile telephony across 200 developed and developing countries in the 1990s are studied with the aid of a Gompertz model. The market size and network effects are found to play more important roles in the developing countries; there is also more need for complementing innovations in, for example, financial and payment systems. Even though the developing countries have disadvantages, being late entrants in digital mobile telephony is to their advantage and promotes cross-country convergence. Overall digital technologies are best seen as equalizers, and thus the divide is rather socio-economic or analog than digital.
Topic:
Demographics, Development, Globalization, and Science and Technology

530. An Aggregate View of Macroeconomic Shocks in Sub-Saharan Africa: A Comparative Study Using Innovation Accounting

Author:
Simeon Coleman
Publication Date:
02-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper investigates the impacts and responses of macroeconomic shocks in some domestic economies in Sub-Saharan Africa over the period 1961-99; more specifically, it seeks to answer the question of whether there are any systematic differences in the responses of the CFA franc zones and the non-CFA franc zone countries to macroeconomic shocks. Based on the Blanchard-Quah methodology, we identify shocks to the changes in real exchange rate and output using a structural VAR (SVAR) model for these small open economies. Our finding that the real exchange rate innovations in the CFA franc zones are largely independent of domestic variables suggests that external influence is more important in the CFA zones. There is also some evidence that money demand shocks are more significant in the non-CFA franc zone countries.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
Africa

531. Conceptual and Measurement Issues in Poverty Analysis

Author:
Erik Thorbecke
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The objective of this paper is to review a number of issues related to poverty, while taking stock of the ongoing research. Most of the remaining unresolved issues in poverty analysis are related directly or indirectly to the dynamics of poverty. Before the development community can become more successful in designing and implementing poverty-alleviation strategies, within the context of growth, we need to understand better the conditions under which some households remain permanently (chronically) poor and how others move in and out of poverty. In what follows we review the state of the art under a number of interrelated headings: (1) Chronic vs. transient poverty; (2) Poverty and vulnerability; (3) The determination of the poverty line across time and countries; (4) The quantitative vs. qualitative approach to poverty measurement; and (5) Growth, inequality and poverty.
Topic:
Development, Economics, Human Welfare, and Poverty

532. An Inquiry into Cities and Their Role in Subnational Economic Growth in South Africa

Author:
W.F. Krugell and W.A. Naudé
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
South Africa is characterized by significant inequality in spatial economic activity. Whether future growth and development on a subnational level in South Africa will be such as to reduce this inequality may depend on the economic growth and development of South Africa's largest cities. Our local economic growth empirics show some indications of conditional convergence in output between poorer towns as well as overall between all cities and towns. Between 1990 and 2000 some limited sigma convergence was found but this was driven by declines in the standard deviation of per capita income amongst the poorest quintile of towns. An estimate of conditional beta convergence of 1.2 percent over the period 1990-2000 confirms that overall convergence has been taking place. From an estimation of the determinants of economic growth on a local level, using a dataset on 353 local areas in South Africa between 1990-2000 we found the most significant determinants to be stocks of human capital and distance from harbours and markets. The effect of human capital on economic growth was strongly associated with the presence of large cities, as one would predict from endogenous growth theory.
Topic:
Demographics, Development, and Economics
Political Geography:
Africa and South Africa

533. Return International Migration and Geographical Inequality: The Case of Egypt

Author:
Barry McCormick and Jackline Wahba
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper explores entrepreneurship amongst return migrants, how their business locations and characteristics differ from other businesses, and the implications for rural urban inequality. First, we examine, amongst returnees, the determinants of investment in a project/enterprise. Second, we study the impact of return migration on the characteristics and nature of non-farm small enterprises using a sample of return migrants and non-migrant owners of enterprises. Our data indicate that although the share of return migrants originating in urban areas is almost equal to those from rural areas, and that migrants tend to return to their origin region, urban areas benefit more than rural areas from international savings. The empirical evidence suggests that overseas savings, and the duration of stay overseas, have positive separate effects on the probability of investing in a project/enterprise amongst returnees. Furthermore, returnees from urban-origin are more likely than rural ones to invest in a non-farm enterprise. The findings also indicate that there is a regional bias in the location of firms and jobs created by returnees compared to non-migrants, in favour of the capital city. Thus, overall, the results support a positive impact of return migration on enterprise investment in urban areas driven by the preference of returnees to invest in urban areas.
Topic:
Demographics, Economics, and Migration
Political Geography:
Middle East and Egypt

534. Love Thy Neighbour? Evidence from Ethnic Discrimination in Information Sharing within Villages

Author:
Mattia Romani
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
There is increasing evidence to suggest that a fundamental source of information for farmers on how to access and use new agricultural technologies comes from interacting with neighbours. Economic research on adoption of innovations in a rural context has only partially addressed the issue of how the social structure of a village can affect adoption and the final impact on productivity of farmers. This paper investigates the role of proximity interpreted not only in geographical terms but also along the line of ethnic similarities among neighbours (what we define as 'social proximity'). We use a panel dataset collected in Côte d'Ivoire to define the probability of accessing the knowledge network. The main results indicate that farmers from ethnic minorities are less likely to access, and benefit less from, extension services. But they seem to try to re-equalize their condition by putting more effort than dominant ethnic group neighbours in sharing information among themselves.
Topic:
Agriculture, Demographics, Economics, and Human Welfare
Political Geography:
Africa

535. Crime, Isolation, and Law Enforcement

Author:
Marcel Fafchamps and Christine Moser
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper investigates the relationship between criminal activity and geographical isolation. Using data from Madagascar, we show that, after we control for population composition and risk factors, crime increases with distance from urban centers and, with few exceptions, decreases with population density. In Madagascar, crime and insecurity are associated with isolation, not urbanization. This relationship is not driven by placement of law enforcement personnel which is shown to track crime, but fails to reduce feelings of insecurity in the population. Other risk factors have effects similar to those discussed in the literature on developed countries. We find a positive association between crime and the presence of law enforcement personnel, probably due to reporting bias. Law enforcement personnel helps solve crime but appears unable to prevent it.
Topic:
Crime, Demographics, and Government
Political Geography:
Africa and Madagascar

536. Urban-Rural Inequality in Living Standards in Africa

Author:
David E. Sahn and David C. Stifel
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In this paper we examine the relative importance of rural versus urban areas in terms of monetary poverty and seven other related living standards indicators. We present the levels of urban-rural differences for several African countries for which we have data and find that living standards in rural areas lag far behind those in urban areas. Then we examine the relative and absolute rates of change for urban and rural areas and find no overall evidence of declining differences in the gaps between urban and rural living standards. Finally, we conduct urban-rural decompositions of inequality, examining the within versus between (urban and rural) group inequality for asset inequality, education inequality, and health (height) inequality.
Topic:
Demographics, Development, and Human Welfare
Political Geography:
Africa

537. Economic Growth, Income Distribution and Poverty: Time-series and Cross-country Evidence from the CFA-zone Countries of sub-Saharan Africa

Author:
Michael Bleaney and Akira Nishiyama
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The causes of the slow growth of CFA countries are investigated. There is little difference in this respect between the CFA and other sub-Saharan African countries. Since 1970, GDP growth in the CFA countries has shown no significant trend but one or two medium-term fluctuations (positive in 1979-83 and negative in 1989-93). Internationally, the income share of the poorest 20 per cent of the population of any country has improved most in poor countries, and there is no evidence that this does not apply to CFA countries also.
Topic:
Economics, Human Welfare, International Political Economy, and International Trade and Finance
Political Geography:
Africa

538. How Does Monetary Policy Affect the Poor? Evidence from the West African Economic and Monetary Union

Author:
David Fielding
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The West African Economic and Monetary Union (UEMOA) has a history of monetary stability and low inflation. Nevertheless, there is substantial variation in relative prices within some UEMOA countries, in particular in the price of food relative to other elements of the retail price index (IHPC). Using monthly time-series data for cities within the region, we analyze the impact of changes in monetary policy instruments on the relative prices of components of the IHPC. We are then able to explore how the burden of monetary policy innovations is likely to be shared between the rich and poor.
Topic:
Economics, Human Welfare, International Political Economy, and International Trade and Finance
Political Geography:
Africa

539. Inequality and Welfare Evaluation of Heterogeneous Income Distributions

Author:
Anthony Shorrocks
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper establishes the principles which should govern the welfare and inequality analysis of heterogeneous income distributions. Two basic criteria—the 'equity preference' condition and the 'compensation principle'—are shown to be fundamentally incompatible. The paper favours the latter, thereby vindicating the traditional method of dealing with heterogeneous samples. However, inequality and welfare comparisons will usually be well defined only if equivalent incomes are obtained using constant scale factors; and researchers will need to distinguish clearly between inequality of nominal incomes and inequality of living standards. Furthermore, household observations must always be weighted according to family size.
Topic:
Demographics, Economics, Human Welfare, and Poverty

540. A Development-focused Allocation of the Special Drawing Rights

Author:
Ernest Aryeetey
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Efforts to realize the issue of development-focused Special Drawing Rights (SDR) by the International Monetary Fund (IMF) have been on-going for many years. Recently, however, the campaign first gained a new momentum immediately after the Asian financial crises with the new liquidity problems of developing nations following the collapse of private capital markets. Currently the search for financing options towards the achievement of the Millennium Development Goals drives the interest in development-focused SDRs. Extending the uses to which SDR can be put is derived from the growing demands on the international financial system to respond to the development finance needs of poor nations. Apart from the need to provide emergency funds in times of crises and the whole area of crisis prevention, increasingly the facilitation of development in poor countries and assistance to make the best policy decisions is considered crucial.
Topic:
Development, Economics, International Political Economy, and International Trade and Finance
Political Geography:
Asia