Number of results to display per page
Search Results
11852. Overkill: Reforming the Legal Basis for the U.S. War on Terror
- Author:
- International Crisis Group
- Publication Date:
- 09-2021
- Content Type:
- Special Report
- Institution:
- International Crisis Group
- Abstract:
- After the 9/11 attacks, the U.S. Congress passed a use of force authorisation that successive presidents have used to expand military action ever further. As part of our series The Legacy of 9/11 and the “War on Terror”, we argue that Washington should enact a new statute that promotes transparency and narrows the war’s scope
- Topic:
- Security, Defense Policy, Counter-terrorism, and War on Terror
- Political Geography:
- North America and United States of America
11853. A Time for Talks: Toward Dialogue between the Gulf Arab States and Ira
- Author:
- International Crisis Group
- Publication Date:
- 08-2021
- Content Type:
- Special Report
- Institution:
- International Crisis Group
- Abstract:
- The Gulf Arab states have perceived threats from Iran since the 1979 revolution. Frictions have lessened of late, offering an important opportunity. Riyadh and Abu Dhabi should keep engaging Tehran with an eye to initiating the broadest possible talks on regional peace and security.
- Topic:
- Security, Diplomacy, Regional Cooperation, and Peace
- Political Geography:
- Gulf Nations
11854. Beyond Business as Usual in Israel-Palestine
- Author:
- International Crisis Group
- Publication Date:
- 08-2021
- Content Type:
- Special Report
- Institution:
- International Crisis Group
- Abstract:
- The latest escalation of the Israeli-Palestinian conflict brought important shifts in the status quo, underscoring the necessity of a political settlement. A peace based on equal respect for both peoples’ rights will take time, however. Steps to lower the temperature are urgent in the interim.
- Topic:
- Territorial Disputes, Conflict, Peace, and Settlements
- Political Geography:
- Middle East, Israel, and Palestine
11855. Iran: The Riddle of Raisi
- Author:
- International Crisis Group
- Publication Date:
- 08-2021
- Content Type:
- Special Report
- Institution:
- International Crisis Group
- Abstract:
- Iran has a new president, consolidating the hardliners’ control over the centres of power. What will he do about the country’s numerous crises? One answer is clear: the 2015 nuclear deal’s fate remains the most pressing issue for Tehran and its foreign interlocutors.
- Topic:
- Security, Governance, Leadership, and Crisis Management
- Political Geography:
- Iran and Middle East
11856. Iraq’s Tishreen Uprising: From Barricades to Ballot Box
- Author:
- International Crisis Group
- Publication Date:
- 07-2021
- Content Type:
- Special Report
- Institution:
- International Crisis Group
- Abstract:
- The huge demonstrations that rocked Iraqi cities two years ago reverberate still, with the main grievances unaddressed. Protests could arise anew at any time, risking another lethal crackdown. The government should hold those who harmed protesters accountable and work to ensure clean elections in October.
- Topic:
- Social Movement, State Violence, Repression, and Police
- Political Geography:
- Iraq and Middle East
11857. The Pandemic Strikes: Responding to Colombia’s Mass Protests
- Author:
- International Crisis Group
- Publication Date:
- 07-2021
- Content Type:
- Special Report
- Institution:
- International Crisis Group
- Abstract:
- In Colombia’s history of protest, the 2021 mobilisations against inequality and police brutality stand out for their breadth and intensity. Unrest has quieted for now but could soon return. The government should urgently reform the security sector while working to narrow the country’s socio-economic chasms.
- Topic:
- Inequality, State Violence, Protests, and Police Brutality
- Political Geography:
- Colombia and South America
11858. Stemming the Insurrection in Mozambique’s Cabo Delgado
- Author:
- International Crisis Group
- Publication Date:
- 06-2021
- Content Type:
- Special Report
- Institution:
- International Crisis Group
- Abstract:
- Deadly conflict in Mozambique’s ruby- and natural gas-rich northernmost coastal province feeds on a mix of colonial-era tensions, inequality and Islamist militancy. To tame the insurrection, Maputo needs to use force, with bespoke assistance from outside partners, and to carefully address underlying grievances.
- Topic:
- Energy Policy, Natural Resources, Inequality, and Insurrection
- Political Geography:
- Africa and Mozambique
11859. Turkey-Greece: From Maritime Brinkmanship to Dialogue
- Author:
- International Crisis Group
- Publication Date:
- 05-2021
- Content Type:
- Special Report
- Institution:
- International Crisis Group
- Abstract:
- In mid-2020, Turkey and Greece put their Mediterranean fleets on high alert, dramatically raising tensions in their long-running dispute over air, water, rock and now seabed gas deposits as well. Talks have been frustrating but remain the best way to contain the risk of conflict.
- Topic:
- Diplomacy, Regional Cooperation, Bilateral Relations, and Conflict
- Political Geography:
- Europe, Turkey, and Greece
11860. The Risks of a Rigged Election in Nicaragua
- Author:
- International Crisis Group
- Publication Date:
- 05-2021
- Content Type:
- Special Report
- Institution:
- International Crisis Group
- Abstract:
- With Nicaraguans heading to the polls in November, the government is already trying to engineer the outcome in its favour. An unfair ballot could spark unrest and a violent crackdown. External actors should push for reforms and dialogue with the opposition while eschewing counterproductive sanctions.
- Topic:
- Elections, Voting, Rigged Elections, and Partisanship
- Political Geography:
- Central America, Nicaragua, and North America
11861. Two Birds, One Budget: Using ODA for Influence and Development in the Indo-Pacific?
- Author:
- Rachael Calleja, Sam Hughes, and Beata Cichocka
- Publication Date:
- 12-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- This paper explores the UK’s proposed “Indo-Pacific tilt” from a development perspective. In light of recent cuts to the UK’s official development assistance (ODA), we ask how the UK can use scarce development resources in the Indo-Pacific more effectively to capitalise on opportunities to support strategic objectives while ensuring that ODA remains squarely focused on development priorities. Our analysis seeks to understand both how the UK is positioned within the Indo-Pacific, which is an already-crowded development landscape, as well as where the UK’s strategic and developmental priorities in the region might meaningfully overlap. We find that while there are some opportunities for the UK to support both development objectives and strategic interests concurrently in the Indo-Pacific—such as in the provision of regional and global public goods—the countries with the greatest strategic value to the UK are not those where additional ODA could contribute most clearly to poverty reduction. We conclude the paper with six policy recommendations. Among others, we propose that the UK should consider partnering with other like-minded providers to maximise its presence in the region.
- Topic:
- Development, International Cooperation, Infrastructure, and Influence
- Political Geography:
- United Kingdom, Europe, and Indo-Pacific
11862. Strengthening Regional Policy Frameworks to Better Respond to Environmental Migration: Recommendations for the UK Government
- Author:
- Amelia Dal Pra, Mariam Traore Chazalnoel, and Helen Dempster
- Publication Date:
- 12-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The Bay of Bengal, the Sahel, and Small Island Developing States (SIDS) are especially vulnerable to the impacts of slow-onset climate events resulting from climate change. Global temperature warming is leading to a dramatic rise in sea levels, which will lead to coastal erosion and land loss across SIDS and the Bay of Bengal. Such warming will also contribute to increasing desertification and water scarcity issues in the Sahel. This environmental damage is irreversible and may seriously threaten economies as well as the daily lives of communities. Without strong policy interventions to bolster in-situ resiliency and increase climate change adaptation and mitigation, including migration, the regions most vulnerable to climate impacts might experience major human security and security crises. This paper provides an analysis of some of relevant regional frameworks that could be useful in addressing environmental migration across these three regions. It concludes that high-income countries such as the UK should do two things: provide financial and technical support to bolster climate adaptation in regions uniquely vulnerable to slow-onset climate events; and support the establishment and / or implementation of regional migration frameworks and free movement agreements (FMAs) that can potentially offer safe, orderly, and regular migration pathways to those affected by the impacts of slow-onset climate events.
- Topic:
- Climate Change, Environment, Regional Cooperation, and Regionalism
- Political Geography:
- Global Focus
11863. Facilitating Environmental Migration through Humanitarian and Labour Pathways: Recommendations for the UK Government
- Author:
- Helen Dempster, Amelia Dal Pra, and Mariam Traore Chazalnoel
- Publication Date:
- 12-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The impact of climate change, environmental degradation, and disasters on migration and human mobility is receiving more and more attention, by policymakers, academics, and the press alike. While there are gaps in the evidence base, much suggests that the vast majority of people will seek to move internally and regionally, rather than internationally. That being said, there are good reasons as to why high-income countries may want to facilitate so-called international “environmental migration” by adapting their existing legal and policy frameworks. This paper outlines how countries such as the United States of America (US), Canada, New Zealand, Australia, Japan, and various European countries have explored, created, or adapted their legal and policy frameworks to explicitly respond to international environmental migration, and the lessons learned therein. It concludes with a series of policy recommendations for the government of the United Kingdom of Great Britain and Northern Ireland (UK) as to how the UK could adapt their own legal and policy frameworks to better respond to international environmental migration.
- Topic:
- Environment, Migration, Governance, and Partisanship
- Political Geography:
- United Kingdom and Europe
11864. Addressing the “Root Causes” of Irregular Migration from Central America: An Evidence Agenda for USAID
- Author:
- Sarah Rose, Reva Resstack, Helen Dempster, Elisa Cascardi, and Jeremy Weinstein
- Publication Date:
- 12-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- In recent decades, the number of people migrating irregularly from the three Northern Triangle countries of Central America—El Salvador, Guatemala, and Honduras—has been increasing, putting pressure on the Biden-Harris administration to address the root causes of irregular migration and deliver “results.” Evidence suggests that these countries are undergoing a demographic and economic transition, hence emigration pressure will likely remain for the coming decades. Yet there is much an entity like USAID, the United States’ largest development agency, can do to moderate the short-run drivers of irregular migration such as violence, climate shocks, lack of economic opportunity, and inaccessibility of legal migration pathways. In this policy paper, we outline the available evidence within these areas that is directly pertinent to irregular migration and identify key evidence gaps to be filled by future research and evaluation. We conclude by outlining five recommendations for how USAID can ensure its work is evidence-based and contributes to new learning, supporting policymakers in this field for decades to come.
- Topic:
- Development, Immigrants, USAID, Influence, and Migrants
- Political Geography:
- Central America, North America, Honduras, Guatemala, El Salvador, and United States of America
11865. How Can Multilateral Organizations Strengthen Global Data Governance Practices? Roundtable Summary
- Author:
- Michael Pisa and Ugonma Nwankwo
- Publication Date:
- 12-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- This brief is based on a roundtable hosted by CGD as part of the Governing Data for Development project, which explores how governments can use data to support innovation, development, and inclusive growth while protecting citizens and communities against harm. The views expressed here are those of the participants and do not necessarily represent the views of CGD staff. For other briefs in the series, as well as more on the project, visit cgdev.org/governing-data. Cross-border data flows are governed through a patchwork of complex, overlapping arrangements and trade agreements. The absence of a more systematic approach to data governance at the global level may make it harder for low- and middle-income countries to participate in the global digital economy and develop their own frameworks for governing the use of data in a responsible manner. It also leaves them with limited leverage in negotiations with both Big Tech companies and wealthier jurisdictions. This meeting is the third in a series of private roundtables convened by the Center for Global Development aimed at exploring the relationship between data governance and economic development. The first event examined whether current approaches to data protection and privacy are a good fit for resource-constrained countries. The second explored whether evolving digital trade rules support or hinder economic development. This third roundtable explored the role and limitations of multilaterals in promoting better data governance. This document summarizes key takeaways from the meeting, including the remarks of four keynote speakers and themes raised in a discussion among 30 experts, who are listed in the appendix. The roundtable was moderated by Pam Dixon, founder and executive director of the World Privacy Forum, and co-chair of the working group for CGD’s Governing Data for Development project.
- Topic:
- International Cooperation, Governance, Digital Economy, and Multilateralism
- Political Geography:
- Global Focus
11866. Who’s Responsible for Climate Change? New Evidence Based on Country-Level Estimates of Climate Debt
- Author:
- Benedict Clements, Sanjeev Gupta, and Jianhong Liu
- Publication Date:
- 11-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- In this paper, we introduce the concept of climate debt and provide country-level estimates through 2035 under a business-as-usual scenario. These estimates can help inform the debate on climate change by providing a clear view of which countries have (until the present) contributed the most to climate change, as well as the likely path for climate debt by country over the next 15 years. We then discuss the implications for carbon emissions if the G-20 countries and EU were to adopt either of the two policy options proposed in recent months: the first by President Biden for the US and the other by the EU for its member countries. The implications for fiscal policy are that beyond the need to keep public debt at sustainable levels, countries will also need to allocate funds for expected increases in pension and health spending associated with aging populations. As a result, there may be little room for new expenditures (such as green infrastructure or subsidies for clean energy) to reduce the growth of climate debt. Countries could turn to the revenue side, in particular greater taxation of energy with carbon taxes. This would have the advantage of reducing emissions while also helping countries to fund spending on green infrastructure.
- Topic:
- Climate Change, Energy Policy, Environment, Humanitarian Response, and Green Transition
- Political Geography:
- Global Focus
11867. Mapping China’s Participation in Multilateral Development Institutions and Funds
- Author:
- Scott Morris, Rowan Rockafellow, and Sarah Rose
- Publication Date:
- 11-2021
- Content Type:
- Policy Brief
- Institution:
- Center for Global Development
- Abstract:
- China has emerged as a leading participant in multilateral development organizations. In many ways, this is a welcome development. Today’s global challenges, including COVID-19 and climate change, require an international response and have prompted renewed calls for increased multilateral engagement by the major economy countries. This, combined with the recognition of multilateral institutions’ high standards for transparency and environmental safeguards, have led the United States at times to encourage China to step up its multilateral contributions. At the same time, countervailing voices focused on strategic competition increasingly view China’s multilateral participation with skepticism. When the People’s Republic of China joined the World Bank in 1980, it was allocated 12,000 International Bank for Reconstruction and Development (IBRD) shares, becoming the Bank’s sixth largest shareholder with 3.47 percent of the of the voting power. By 2013, decades of rapid economic growth had propelled China to its current position as the IBRD’s third largest shareholder, eclipsing France, Germany, and the United Kingdom with 5.03 percent of IBRD voting power. In many ways, China’s rise in stature at the IBRD mirrors its growth in influence across the multilateral development system. This is certainly true of China’s increasing voting share in the World Bank, IMF, and UN system, all of which tie financial contributions to economic size (see Figure 1). But China’s growing importance in the multilateral system is also the product of distinct policy choices made by the Chinese government. These policy choices go beyond the wealth-based financial contributions that dictate IBRD shareholding to include voluntary financing, borrowing, and commercial contracting. In concert, they make China a unique player in the multilateral system by virtue of to its simultaneous roles as a multilateral organization donor, shareholder, aid recipient, and commercial partner.
- Topic:
- Development, International Cooperation, Multilateralism, and Participation
- Political Geography:
- China and Asia
11868. Mapping China’s Multilateralism: A Data Survey of China’s Participation in Multilateral Development Institutions and Funds
- Author:
- Scott Morris, Rowan Rockafellow, and Sarah Rose
- Publication Date:
- 11-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- A considerable body of recent research attempts to shed light on China’s bilateral aid and finance flows, but there have been fewer efforts focused on China’s participation in multilateral development channels. As a result, China’s role across the landscape of multilateral institutions and funds is poorly understood, even as China has emerged as a leading donor within many of these entities. Part of China’s increased multilateral engagement reflects its economic growth, with shareholding and assessed contributions based largely on economic size. But the government of China’s policy choices are also revealed, in part, through its patterns of voluntary funding, cooperation agreements, and influence through personnel instated in leadership positions. By collating data on China’s financial and non-financial engagement with multilateral development banks and other financial institutions, sector-based vertical funds, and the development entities of the United Nations, among others, this paper seeks to provide a clear picture of China’s role in the multilateral development system and the evolution of that role over the past decade. This assessment brings to light the weight of China’s voting power across the multilateral development banks, the extent to which Chinese firms benefit from procurement opportunities in multilateral institutions, and the degree to which China has achieved a singular position of being a large-scale donor and recipient in the multilateral system.
- Topic:
- Development, International Cooperation, Hegemony, and Multilateralism
- Political Geography:
- China and Asia
11869. Meeting the Global Health Challenge to Reduce Death and Disability from Alcohol, Tobacco, and Sugar-Sweetened Beverage Consumption with Corrective Taxes
- Author:
- Chris Lane and Vinayak Bhardwaj
- Publication Date:
- 11-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Behind the daily trauma of COVID-19 lies a larger and longer-lasting global health challenge resulting from the consumption of tobacco, alcohol, and sugar-sweetened beverages. Using a sample of 25 large advanced and emerging market economies accounting for three-quarters of global GDP, we show that about 60 million productive life years were lost every year in 2000, 2010, and 2019 from death and disability attributable to alcohol, tobacco, and diets high in sugar-sweetened beverages. Using the cost-of-illness framework, the economic value of these lost productive years in 2019 is approximately $2.1 trillion in our country sample (in 2017 purchasing power parity dollars [PPP$]). We show that over a 20-year period, a higher tax effort is associated with larger reductions in economic costs. We also show that total corrective taxes for all the products under investigation fall far short of the indirect costs of consumption in all countries. We conclude that all advanced economies and emerging markets could reap substantial macroeconomic benefits from better health by raising corrective taxes on alcohol and tobacco and by introducing corrective taxes on sugar-sweetened beverages.
- Topic:
- Health, Disability, Tax Systems, Health Crisis, and Addiction
- Political Geography:
- Global Focus
11870. Navigating the Straits: Pull Financing for Climate and Development Outcomes
- Author:
- Ranil Dissanayake
- Publication Date:
- 11-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- An increasing share of official development assistance is being used for climate-related activities. This trend is continuing despite the lack of comprehensive cost-effectiveness evidence to guide spending decisions and continuing concerns that few applications are effective or efficient mechanisms for either climate or development outcomes. This represents both a waste of scarce resources and a missed opportunity. This paper proposes that a well-designed pull financing mechanism, which identifies specific problems for which it will pay a pre-specified price for solutions that can scale up, has the potential to navigate these problems. When they work, a pull instrument can solve problems at scale at low cost by incentivizing private innovators to produce a socially beneficial product that people want to buy and use. However, the design challenges associated with them are not trivial: firstly, the identification and selection of technologies or problems for which the pull financing facility would be a sufficiently large portion of the market to shift incentives for innovators or producers (for technologies that exist but have not been taken up widely yet); and secondly, the ability to design contracts that incentivize socially beneficial innovation that are bought and used. This paper sets out the case for pull financing for climate and development activities, the challenges that need to be addressed to do it well, criteria for judging potential applications of pull financing and an initial indication of some sectors to which pull financing may be applied.
- Topic:
- Climate Change, Development, Environment, and Finance
- Political Geography:
- Global Focus
11871. Translating Results-Based Financing from Theory to Operational Reality: Lessons from the Practical Application of RBF at the European Commission
- Author:
- Rachel Silverman
- Publication Date:
- 10-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- esults-based financing (RBF) is one of several broad approaches to finance official development assistance (ODA) “that attempt[s] to connect at least a portion of payment to the verified achievement of results.” Despite some relatively high-profile programs and pilots—and broad interest and curiosity—RBF approaches have yet to penetrate the routine operations of large institutional grant- and contract-based funders, many of which are governed by complex bureaucracies, restrictive financial regulations, and deeply entrenched, risk-averse corporate cultures. The European Commission (EC) is one large and influential donor that has shown a long-standing interest in RBF approaches but is still in initial phases of implementation. Informed by a research partnership between the Center for Global Development (CGD) and EC Commission Directorate-General for International Partnerships (INTPA), this Policy Paper reflects on the experience and lessons learned in attempting to operationalize RBF at scale within a large funder of ODA, with important implications for the broader international development community. Starting at the macro level, it considers the institutional prerequisites for adoption of RBF within a donor agency—in this case, the European Commission/INTPA. It then zooms into the project-level design and negotiation process, including the choice of implementing partner (in this case a United Nations agency) and political and technical stumbling blocks. It concludes with a discussion of remaining challenges for broader use.
- Topic:
- Development, International Cooperation, Regional Cooperation, and Finance
- Political Geography:
- Europe
11872. How Do Humanitarian Donors Make Decisions, and What Is the Scope for Change?
- Author:
- Rose Worden and Patrick Saez
- Publication Date:
- 10-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- n this policy paper we review donor responses to a survey and interviews to probe the effects of the broader political and economic context in which donors operate, and identify internal constraints on humanitarian funding, planning, and making allocative decisions. We identify and highlight perceived and real constraints with which donors contend when making decisions on how to allocate limited resources. The way humanitarian donors fund is key to system-wide efficiency, effectiveness, and reforms in the humanitarian system. Donors face competing priorities when engaging in humanitarian response. They care about retaining control, must rely on limited information sources to inform decisions, and balance their approaches with other foreign policy objectives. Institutional legacies, trust, and visibility for their efforts also matter to donors. These factors have shaped how donors have approach their current commitments to Grand Bargain reforms as donors prepare to engage with the newest iteration of reform—the Grand Bargain 2.0.
- Topic:
- Humanitarian Aid, Reform, Institutions, and Donors
- Political Geography:
- Global Focus
11873. Are Development Finance Institutions Good Value for Money?
- Author:
- Paddy Carter
- Publication Date:
- 10-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Finance institutions take money from foreign aid budgets to invest in private enterprises. How much should they be given? We can make some progress on that question by looking at the return on investment in the form of higher real incomes for workers and customers, and comparing that to a cash transfer benchmark. There is considerable uncertainty, but what evidence we have suggests returns on investment are in a range that compares well to that benchmark. There is also a diversification argument that because we don’t know which of the things that aid can finance will ultimately prove most important for poverty eradication, aid allocation should hedge its bets. A low single digit percentage of aid allocated to increase the quantity and quality of private investment in low- and middle-income countries seems reasonable.
- Topic:
- Development, Foreign Aid, Finance, Investment, and Institutions
- Political Geography:
- Global Focus
11874. Valuing Climate Liabilities: Calculating the Cost of Countries’ Historical Damage from Carbon Emissions to Inform Future Climate Finance Commitments
- Author:
- Lee Robinson and Ian Mitchell
- Publication Date:
- 10-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- A central commitment of action on climate is the promise of “developed countries” to jointly mobilize $100 billion of climate finance per year by 2020 (and through to 2025), formalised at the UN climate change conference in 2010 (COP16). Five years later, the Paris Agreement reaffirmed this commitment and promised a new goal after 2025 “from a floor of USD 100 billion per year.” We propose an approach for calculating financial climate liabilities for each country based on their historical CO2 emissions, using the idea of an externality: a social cost that has not been borne by the agent whose actions produced it. The paper follows earlier work on calculating carbon debts (e.g., Kunnas, 2014) which we update with recent and authoritative research on carbon pricing methods. We also adjust for awareness, calculating the accruing of liabilities only from the time that countries knew that their emissions were harmful. We present several scenarios adjusting this and other assumptions. The main scenario produces a clearly quantified liability for each country and a total carbon liability to the world of $34 trillion, or $4,500 per capita. If this liability was used to set climate finance goals, it would suggest OECD countries would need to contribute $190 billion a year to 2100. The analysis also highlights that other industrialised countries, notably China and Russia, have also built-up substantial liabilities and should therefore also contribute to future climate finance goals.
- Topic:
- Climate Change, Energy Policy, Environment, Carbon Emissions, and Green Transition
- Political Geography:
- Global Focus
11875. Some Unpleasant ODA Arithmetic
- Author:
- Ranil Dissanayake and Atousa Tahmasebi
- Publication Date:
- 10-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Official development assistance is supposed to be designed to prioritise the economic development and welfare of developing countries. The OECD’s Development Assistance Committee is a club of wealthy donor countries which collaborate to set rules and norms to this effect. However, digging into the official data submitted by donors to the OECD reveals some unpleasant truths. We use data on every funding line reported by donors to the OECD between 2006 and 2019 to investigate the pattern and distribution of commitments and disbursements of ODA to developing countries, and discover that ODA is targeted poorly within the group of eligible developing countries; that this group of eligible countries is gradually expanding to include more relatively wealthy places; that aggregate ODA flows are organized and structured sub-optimally; and that ODA responds more to arbitrary income classifications than it should. We suggest informational and incentive reforms in response. These findings also suggest limits to what realistic reform of ODA can achieve, and, consequently, the importance of non-aid development policy for outcomes in developing countries.
- Topic:
- Development, International Cooperation, Foreign Aid, and Welfare
- Political Geography:
- Global Focus
11876. Effective Humanitarian Governance
- Author:
- Patrick Saez, Jeremy Konyndyk, and Rose Worden
- Publication Date:
- 10-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- This paper argues that humanitarian system reform should extend to governance. Governing institutions—such as member state boards of multilateral organizations, and NGO boards of directors—have tremendous influence over the strategic direction of individual institutions and the sector writ large. But governing bodies of humanitarian organizations and system-wide governance are exclusive, organizing power and influence around a few governments, organizations, and individuals. There are few entry points for aid agencies’ downstream clients, or for host governments with the willingness and capacity to take the lead in disaster response. Moving toward a sector where mission effectiveness is measured through partnerships rather than agency capabilities, and outcomes rather than fundraising totals, will depend on governance bodies that promote and monitor those priorities. This will require more direct representation of the views of communities affected by crises in governing bodies, in the relationships between donors and their partners, and in supporting national and local humanitarian governance in countries that have demonstrated their ability to lead the response to disasters impartially. Multistakeholder platforms at the global and country level should be established to align behind common needs assessments and policy directions, and to mobilize and align resources accordingly. Finally, assessing collective effectiveness should become an independent function systematically deployed alongside humanitarian operations, directly informing governing structures, donors, and the public.
- Topic:
- Governance, Institutions, NGOs, and Humanitarian Crisis
- Political Geography:
- Global Focus
11877. A Pacific Skills Visa: Improving Opportunities for Skilled Migration Throughout the Pacific Region
- Publication Date:
- 10-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The demand for skills exceeds supply, both within the Pacific Islands and the high-income countries of the Pacific Rim. Enhancing skilled migration therefore has the potential to generate large economic gains. The Global Skill Partnership is a migration model that can support such mutually beneficial mobility by moving training into the country of origin. In this paper, we outline its regional application to the Pacific. To assess the potential economic gains from such a Pacific Skills Partnership, we present new data on earnings and the cost of training in the Pacific Islands for three qualifications—accountants, computer science graduates, and chefs—and explore how such training could be financed through loan schemes. Graduates could be provided with internationally accredited qualifications and a new Pacific Skills Visa, facilitating their access to work opportunities abroad, particularly in the regions’ high-income countries. This Pacific Skills Partnership could bring large economic benefits to countries of origin, destination, and the migrants themselves.
- Topic:
- Economics, Migration, Labor Issues, and Migrant Workers
- Political Geography:
- Asia-Pacific
11878. Convergence, Development, and Energy-Intensive Infrastructure: Getting Africa to High-Income Status
- Author:
- Vijaya Ramachandran
- Publication Date:
- 10-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The structural changes in an economy that accompany its growth to high-income status have been predictable in Europe, the United States, and Asia, characterized by declining employment in agriculture and rising levels of urbanization driven by jobs in the modern industrial sector. As agricultural productivity rises, the share of people employed in agriculture declines, and both urbanization and employment in manufacturing increase. Food prices fall relative to wages, causing the share of income spent on food to decline to very low levels. Asian countries have followed a similar path, although at a much faster pace. Africa, however, is different. Despite a high share of the population in urban areas, most African countries have yet to see significant increases in agricultural productivity that might drive industrial growth and jobs. In most African countries, the rising share of urban population has not been matched by increases in agricultural productivity, falling food prices, or the emergence of a viable industrial sector. Available evidence shows that agricultural yields in Africa are low and food is costly, while the share of employment in agriculture remains high. For the process of structural transformation to get underway, African countries must manufacture of fertilizer, develop better methods of water control, improve transportation, and invest in cold storage. Each of these interventions requires significant amounts of energy, including energy from fossil fuels. And they are not replaceable—countries have managed structural transformation in different ways but, to date, none have leapfrogged the process.
- Topic:
- Agriculture, Development, Energy Policy, and Infrastructure
- Political Geography:
- Africa
11879. Strengthening the Global Care Economy: A Roadmap for the Biden-Harris Administration
- Author:
- Megan O'Donnell, Mayra Buvinic, and Shelby Bourgault
- Publication Date:
- 10-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- In calling for large-scale investment in the United States’ care economy, the Biden-Harris administration has taken an unprecedented step in recognizing and addressing the constraints that American families, and particularly women, face in juggling paid and unpaid work within their own country. The administration now has an opportunity to translate its positioning of care as essential infrastructure within the US context into a complementary foreign and international development policy agenda. This can be done through (1) supporting existing global partnerships aimed at enabling families’ access to quality, affordable care services, and (2) complementing existing efforts through a US government-led initiative dedicated to strengthening the global care economy.
- Topic:
- Economics, International Cooperation, Hegemony, and Discrimination
- Political Geography:
- North America and United States of America
11880. Rethinking Humanitarian Reform: What Will it Take to Truly Change the System?
- Author:
- Patrick Saez, Jeremy Konyndyk, and Rose Worden
- Publication Date:
- 09-2021
- Content Type:
- Policy Brief
- Institution:
- Center for Global Development
- Abstract:
- This brief summarizes three years of research under the project, “Rethinking Humanitarian Reform,” led by Jeremy Konyndyk, Patrick Saez, and Rose Worden, and funded by the aid departments of the United Kingdom and Australia. The project aimed to understand the incentives behind the humanitarian system and shift them to better prioritize the needs of affected populations.
- Topic:
- Development, Humanitarian Aid, Reform, and Institutionalism
- Political Geography:
- United Kingdom, Europe, Australia, and Global Focus
11881. The Commitment to Development Index 2021
- Author:
- Ian Mitchell, Lee Robinson, Beata Cichocka, and Euan Ritchie
- Publication Date:
- 09-2021
- Content Type:
- Policy Brief
- Institution:
- Center for Global Development
- Abstract:
- The Commitment to Development Index (CDI) ranks 40 of the world’s most powerful countries on policies that affect more than five billion people living in poorer nations. Because development is about more than foreign aid, the CDI covers eight distinct policy areas: Development Finance Investment Migration Trade Health Environment Security Technology
- Topic:
- Security, Development, Environment, Health, Migration, Science and Technology, Finance, Investment, and Trade
- Political Geography:
- Global Focus
11882. Operationalizing Climate Adaptation at the US International Development Finance Corporation: The Case for an Agriculture-Led Agenda in Low-Income Countries
- Author:
- Clemence Landers, Jocilyn Estes, and Scott Morris
- Publication Date:
- 09-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The US International Development Finance Corporation (DFC) could be well placed to lead among development finance institutions (DFIs) on agriculture adaptation to climate change. With its mandate to support private investment in developing country markets, overcoming barriers to investment in agricultural adaptation—where agricultural growth is an estimated two to four times more effective at reducing poverty than growth originating from other sectors—is exactly the type of activity DFC is intended to pursue. Yet, DFC is paradoxically prone to the same investment incentives and disincentives as private investors with an investment portfolio that tends to favor lower risk, higher deal size (and lower overhead) transactions. So, while global estimates for adaptation investments financing needs total close to $140-$300 billion by 2030, a fraction of the global mitigation needs measured in the trillions of dollars, the barriers to project level investment in agriculture adaptation and resilience raises the risk that DFC will continue to favor larger and lower risk mitigation investments in more established markets. This paper reviews DFC’s agriculture portfolio, and based on this review, proposes elements of an agriculture strategy that can overcome barriers to adaptation and resilience investments in the most climate vulnerable markets.
- Topic:
- Agriculture, Climate Change, Environment, and Finance
- Political Geography:
- Global Focus
11883. How Effectively Is the Asian Development Bank Responding to COVID-19? An Early Assessment
- Author:
- Azusa Sato, Rakan Aboneaaj, and Scott Morris
- Publication Date:
- 08-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- In 2020, the Asian Development Bank (ADB) joined efforts by other multilateral development banks (MDBs) to rapidly scale up support to developing countries to address COVID-19. Beyond headline numbers, there has been less focus on how ADB’s support was distributed by country income group, sector, modality, and product. Using an updated dataset on commitments and disbursements between 2018 and end of December 2020, we compare “pre-crisis” and “crisis period” trends. We overlay ADB data on other publicly available datasets reflecting population size, mobility levels, and government fiscal stimulus to evaluate the responsiveness and size of ADB support vis-à-vis other MDBs. Our findings show ADB’s response was most significant in the countries that most needed support—low income economies with sharp GDP declines and limited fiscal response capacity. The health and public sector management sectors had significant surges in commitments, and impacted the modality used. While there was a rise in grant and concessional financing in 2020, non- concessional loans and sovereign operations still dominated during the crisis period. We suggest further work on how these changes impact development outcomes, with a view to recalibrating the bank’s strategies in some sectors and products in the medium term.
- Topic:
- Development, Finance, Pandemic, COVID-19, and Banking
- Political Geography:
- Asia
11884. The Case for Transparency in Power Project Contracts: A Proposal for the Creation of Global Disclosure Standards and PPA Watch
- Author:
- Mohamed Rali Badissy, Charles Kenny, and Todd Moss
- Publication Date:
- 08-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- he purpose of a nation’s power sector is to deliver reliable electricity at the lowest cost and for the greatest benefit. At the heart of any private electricity generation project is a Power Purchase Agreement (PPA), a contract that contains key provisions such as price, payment stipulations, and obligations by the offtaker utility and/or host-government. Despite their significant effects on service quality and public finances, these contracts are often negotiated and signed in secret, with even the most basic terms shielded from the citizenry. This opacity has created risks and, in a growing number of cases, contributed to costly and damaging outcomes, such as overpayment, overcapacity, large debts, and grid instability. Drawing on examples from enhanced transparency in public budgets, sovereign debt, and extractive industries, we propose that governments agree to publish PPAs with any public sector obligation and that funders of private generation projects also agree to minimum disclosure standards. The objective is to create incentives for better practice, improve governance of the power sector, reduce transaction costs, and ultimately, to deliver cheaper and more reliable power for people and businesses. Transparency of PPAs would support the efforts of government policymakers and planners, investors, and development finance institutions to accelerate energy market development and to reap the benefits of open competition. Greater disclosure would also provide crucial information for citizens to hold their own governments accountable for the contracts they sign on behalf of the public.
- Topic:
- Economics, Energy Policy, Transparency, Electricity, and Purchasing Power
- Political Geography:
- Global Focus
11885. A Review of Multilateral Development Banks’ Investments in Childcare
- Author:
- Megan O'Donnell, Kelsey Ross, and Shelby Bourgault
- Publication Date:
- 08-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The COVID-19 pandemic has led to an unprecedented increase in unpaid care work all over the world, causing women to leave the workforce, reversing decades of progress on gender equality, and resulting in increased focus and empathy around the global childcare crisis. Recognizing a gap in the evidence regarding multilateral development banks’ current (and historical) investments in childcare solutions, in this paper we seek to establish a baseline, exploring the extent to which MDBs have invested in childcare over time, across geographies, and through various sectors and activities. Using project data from eight multilateral development banks’ project databases, we compiled all projects with a childcare component from 2000 to June 2021. Our analysis explores best practices across institutions, identifies gaps and areas for improvement, and makes recommendations for how MDBs can increase and improve investments in childcare.
- Topic:
- Development, Multilateralism, Banks, Pandemic, COVID-19, and Childcare
- Political Geography:
- Global Focus
11886. Enabling US Government Participation in Pull Mechanisms for Social Impact Innovation: A Survey of Federal Authorities, Budgetary Barriers, and Potential Solutions
- Author:
- Steven Kosiak and Rachel Silverman
- Publication Date:
- 08-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- United States government support for scientific and technological research and development (R&D)—across sectors including but not limited to energy, agriculture, and health—has the potential to save lives, reduce global poverty, and help address the most pressing global challenges. Traditionally, the US government has funded most R&D via grants and contracts (“push” funding), directly subsidizing and defraying the up-front R&D costs. An alternative approach—“pull” funding—would use the promise of future sales and/or other revenue to indirectly justify up-front expenditures in R&D, thereby “pulling” innovations to market. Despite several theoretical and practical advantages of “pull” funding, US government use of this approach has thus far been limited, in part due to regulatory and legal barriers. Yet across the entirety of the US government, there are nonetheless creative and interesting approaches to support innovation which include pull elements. To help the US government make broader use of pull approaches, this policy paper surveys the ways in which US government authorities, budgetary rules, and procurement approaches either facilitate or constrain use of pull mechanisms to support R&D. It specifically focused on the budgetary “scoring” issues that can affect, and sometimes hinder, the use of such mechanisms. It concludes with a discussion of potential legislative changes and workarounds to budgetary scoring challenges that might facilitate expanded use of these mechanisms.
- Topic:
- Governance, Budget, Innovation, and Research and Development
- Political Geography:
- North America and United States of America
11887. Do Evolving Digital Trade Rules Create an Uneven Playing Field? Understanding Global Perspectives
- Author:
- Michael Pisa and Ugonma Nwankwo
- Publication Date:
- 08-2021
- Content Type:
- Policy Brief
- Institution:
- Center for Global Development
- Abstract:
- This brief is based on a roundtable hosted by CGD as part of the Governing Data for Development project, which explores how governments can use data to support innovation, development, and inclusive growth while protecting citizens and communities against harm.
- Topic:
- Development, Economics, International Trade and Finance, and Digital Economy
- Political Geography:
- Global Focus
11888. Are Current Models of Data Protection Fit for Purpose? Understanding the Consequences for Economic Development
- Author:
- Michael Pisa and Ugonma Nwankwo
- Publication Date:
- 08-2021
- Content Type:
- Policy Brief
- Institution:
- Center for Global Development
- Abstract:
- This brief is based on a roundtable hosted by CGD as part of the Governing Data for Development project, which explores how governments can use data to support innovation, development, and inclusive growth while protecting citizens and communities against harm.
- Topic:
- Development, Economics, Privacy, and Models
- Political Geography:
- Global Focus
11889. Binding Constraints on Digital Financial Inclusion in Indonesia: An Analysis Using the Decision Tree Approach
- Author:
- Firman Witoelar, Teguh Yudo Wicaksono, and Carlos Mangunsong
- Publication Date:
- 07-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Despite the concerted efforts of the Indonesian government to increase financial inclusion and the e-commerce–led growth of digital payment services, a large proportion of the country’s population remains financially excluded. Much of the growth and innovation has mainly benefited those already financially included. To understand this outcome, we use the decision tree approach developed by Claessens and Rojas-Suárez (2020), focusing on one of the products with the largest potential to increase financial inclusion in the country: e-money. Our analysis finds that a crucial binding constraint on the expansion of e-money services is a regulatory framework that creates an unlevel playing field between banks and nonbank providers of digital financial services. Regulatory restrictions applied to nonbanks on cashout services, agent recruitment, and know-your-customer processes are at the core of the problem. In addition, a perception of low benefits from the usage of formal financial services results in a lack of the critical mass of customers necessary to ensure the profitability of agents, particularly in remote and rural areas, and thus the expansion of e-money services. We also find other constraints that are not binding at the national level but are binding for some specific groups. The low provision of digital infrastructure in rural areas outside Java is one of them. In addition, constraints such as low trust in providers, though not binding, should be addressed in order to maximize the gains that could be obtained from relaxing the binding constraints.
- Topic:
- Development, Finance, Digitalization, and Digital Finance
- Political Geography:
- Indonesia and Oceania
11890. Exploring How the US International Development Finance Corporation Can Support Health Sector Investments: Is the Glass Half Full or Half Empty?
- Author:
- Julia Kaufman, Janeen Madan Keller, and Rachel Silverman
- Publication Date:
- 07-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Health sector investments present an opportunity for the US International Development Finance Corporation (DFC), under the Biden-Harris administration, to demonstrate meaningful global leadership and refocus on its development mandate, driving broader health benefits and contributing to global economic recovery. DFC’s early days have been defined by a mixed record, notably in the health sector. Still, in the context of the pandemic’s health and economic impacts, the agency is well positioned to help strengthen pandemic preparedness and expand equitable access to health products and innovation in low- and middle-income countries. Through investments to build private sector manufacturing and delivery capacity, DFC can help stem and reverse these losses and insure against future health crises. This policy paper explores how DFC can strategically invest in health while balancing sometimes competing policy imperatives related to health equity, commercial viability, and foreign policy interests. We first provide an overview of the development finance landscape in the health sector and select DFC health-focused investments to date. We then suggest three high-impact engagement opportunities in the health sector for DFC to consider, including building regional manufacturing hubs for health supplies; providing R&D incentives for biotechnology; and supporting robust supply chains for health-adjacent services and delivery models. Lastly, we outline key principles to guide future DFC health sector investments, such as compatibility with long-term universal health coverage goals, a learning agenda for development effectiveness, and health-specific considerations for additionality and co-financing.
- Topic:
- Development, Health, Finance, and Investment
- Political Geography:
- North America and United States of America
11891. Why Europe Should Build Legal Migration Pathways with Nigeria
- Publication Date:
- 07-2021
- Content Type:
- Policy Brief
- Institution:
- Center for Global Development
- Abstract:
- The youth population within Nigeria is rapidly increasing, but despite their high levels of education and skills, many are struggling to find meaningful work opportunities at home. At the same time, Europe’s working-age population is declining, resulting in employers in these countries facing large and persistent skill shortages within a range of mid-skill professions. Despite the large benefits that facilitating migration between Nigeria and Europe could bring, and despite the overtures of both European governments and the European Union, few mutually beneficial migration partnerships exist. Over the last year, CGD has been working with the World Bank to understand how our Global Skill Partnership migration model could be implemented between Nigeria and Europe. The full results of this work have now been published in a new report, Expanding Legal Migration Pathways from Nigeria to Europe: From Brain Drain to Brain Gain. The report explores both why Nigeria and Europe should implement migration partnerships and develops a framework as to how they can do so. This framework is then applied to three sectors and partner countries: a healthcare partnership between Nigeria and the United Kingdom (UK), a construction partnership between Nigeria and Germany, and an ICT partnership with various European states. This brief focuses on the first part of this equation, the why: understanding the opportunity that lies before us to better link the labor markets of Nigeria and Europe and the innovation that could do just that.
- Topic:
- Migration, Immigration, Border Control, and Immigration Policy
- Political Geography:
- Africa, Europe, and Nigeria
11892. Expanding Legal Migration Pathways from Nigeria to Europe: From Brain Drain to Brain Gain
- Author:
- Samik Adhikari, Michael Clemens, Helen Dempster, and Nkechi Linda Ekeator
- Publication Date:
- 07-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The youth population within Nigeria is rapidly increasing, but despite their high levels of education and skills, many are struggling to find meaningful work opportunities at home. At the same time, Europe’s working-age population is declining, resulting in employers in these countries facing large and persistent skill shortages within a range of mid-skill professions. Despite the large benefits that facilitating migration between Nigeria and Europe could bring, and despite the overtures of both European governments and the European Union, few mutually beneficial migration partnerships exist. This report, a joint production between the World Bank and the Center for Global Development (CGD), outlines how the Global Skill Partnership model could be used to meet needs on both sides. It explores the growing youth unemployment rate in Nigeria, the increasing emigration pressure, and the structures that have been set up to manage this movement. It also explores the large skill shortages persistent within Europe, its migration management relationship with Africa, and the potential positive impacts of opening new legal migration pathways. It creates a framework with which to explore potential sectors and partner countries for the implementation of the Global Skill Partnership model, providing practical steps that governments can follow. And finally, it applies this framework to three sectors and partner countries: a health care partnership between Nigeria and the UK, a construction partnership between Nigeria and Germany, and an information and communications technology (ICT) partnership with various European states.
- Topic:
- International Cooperation, Labor Issues, Intellectual History, Immigration Policy, and Migrants
- Political Geography:
- Africa, Europe, and Nigeria
11893. Identifying Binding Constraints on Digital Payment Services in Ethiopia: An Application of a Decision Tree Framework
- Author:
- Getnet Alemu, Tadele Ferde, and Alejandro Fiorito
- Publication Date:
- 07-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- While several comparable countries in sub-Saharan Africa have seen a significant increase in financial inclusion, mainly driven by digital financial services, Ethiopia still performs poorly. Even digital payment and transfer services, which lower-income and less literate segments of the population could benefit from, are rarely used. Given the low development level of Ethiopia, numerous supply and demand factors could explain this disappointing outcome. We use a decision tree framework to isolate and analyze potential constraints to find which are binding—that is, which constraints limit the expansion of digital payment services in Ethiopia. Our analysis indicates that supply-side problems are pervasive, and we find that competition problems in the essential digital infrastructure market and in the financial sector are responsible for the inadequate provision of digital payment services in Ethiopia. However, the root cause of inadequate competition, and therefore of low financial inclusion through digital payment services, is institutional deficiencies. The two key institutional deficiencies are the lack of capacity of regulatory and supervisory institutions, and the unwillingness of the central government to enable and promote competition. The dominance of public enterprises, Ethio Telecom and the Commercial Bank of Ethiopia, has kept the prices of digital payment services high, particularly for low-income populations, as fees charged for undertaking low-value transactions are very high and the cost of digital infrastructure (mobile phones and plans) is also substantial. Unless these institutional binding constraints are removed, digital payment services in Ethiopia, and digital financial services more generally, will hit a very short ceiling that limits their enormous potential to improve livelihoods in the country.
- Topic:
- Development, Finance, Digital Economy, and Digitalization
- Political Geography:
- Africa and Ethiopia
11894. Financing the Humanitarian Public Good: Towards a More Effective Humanitarian Financing Model
- Author:
- Emmanuel Saez, Jeremy Konyndyk, and Rose Worden
- Publication Date:
- 07-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The international humanitarian system provides a global public service but is financed on a voluntary basis. The way official donor funding is mobilised and allocated is unpredictable and haphazard, reducing efficiency and effectiveness. Donors should overcome the collective action problem that is inhibiting change and reach a critical mass of finance delivered through collective mechanisms. This paper outlines the case for - and obstacles against – change. It suggests three ways to make some progress: a multi-year common replenishment model for protracted and predictable crises; rebalancing country-level pooled mechanisms; and aligning core funding to agencies with agreed core functions.
- Topic:
- Humanitarian Intervention, Humanitarian Crisis, Donors, and Public Goods
- Political Geography:
- Global Focus
11895. A Decision Tree for Digital Payment Services: The Case of Mexico
- Author:
- Ivonne Acevedo and Miguel Szekely
- Publication Date:
- 07-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- This paper explores the reasons why digital payment services in Mexico are used to a much lower extent than would be expected considering the country’s level of development and the authorities’ efforts to expand these types of services during the past two decades. The paper applies the analytical framework proposed by Claessens and Rojas-Suarez (2020), which consists of identifying the binding constraints preventing an increase in the usage of digital payment services, among a set of alternative explanations. The methodology starts by evaluating the price and usage of digital payment services to discover whether constraints may be on the supply side, the demand side, or both. The main findings suggest that the crucial binding constraints on the expansion of digital payment services in Mexico are mainly on the supply side of the decision tree. Indeed, we identify the regulatory framework seems to be a binding constraint, since it creates an unlevel playing field among the providers of digital payment services. Current regulation could also be a constraint on increasing the provision of digital financial infrastructure, particularly for expanding cash-in and cash-out access points in rural areas. Thus, relaxing the regulatory constraint could enable the expansion of digital payment services. In addition, there is evidence suggesting that a coordination failure, reflected in a strong preference for transacting in cash, might be a binding constraint in the country. Perceived low or nonexistent benefits from using digital payment services could be the source of the coordination failure, since it prevents the formation of a critical mass of users, which in turn discourages suppliers from offering these services.
- Topic:
- Economics, Finance, Services, and Digitalization
- Political Geography:
- North America and Mexico
11896. Searching for the Binding Constraint to Digital Financial Inclusion in Pakistan: A Decision Tree Approach
- Author:
- Imran Khan and Karrar Hussain Jaffar
- Publication Date:
- 07-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Over the last decade, Pakistan has seen improvements in the coverage of its networks of bank branches, ATMs, and mobile money agents. However, the country is lagging behind comparator countries when it comes to the financial inclusion of its population; according to the latest estimates, barely 20 percent are currently included. By using the Claessens and Rojas-Suarez (2020) decision tree methodology, this paper assesses the potential demandand supply-side constraints limiting the usage of digital payment services to identify which constraints are binding. Our main finding is that Pakistan’s institutional weaknesses constitute the most important binding constraint. These weaknesses have incentivized the creation of a sizable informal economy that has resulted in a preference for cash over the use of formal financial channels for the majority of the population. Reflecting institutional deficiencies, the imposition of a withholding tax on financial transactions undertaken by individuals who did not file tax returns has further encouraged a move toward cash and away from digital finance. On the demand side, Pakistan lags behind comparable countries on various indicators such as technical literacy, awareness about the functionality of products, and social inclusion of women. Nevertheless, we find that these constraints are severe only for specific subpopulations. Consistent with our conclusion that institutional weaknesses, the binding constraint, have created deep incentives to remain informal, a considerable proportion of mobile phone–owning financially excluded individuals continue to choose to be financially excluded in spite of having high levels of technical literacy, functional awareness, and trust.
- Topic:
- Finance, Innovation, Banking, and Digitalization
- Political Geography:
- Pakistan and Asia
11897. Improving Performance in the Multilateral Humanitarian System: New Models of Donorship
- Author:
- Patrick Saez, Lewis Sida, Rachel Silverman, and Rose Worden
- Publication Date:
- 06-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- The humanitarian system has undergone three series of reforms over the past couple of decades, with mixed results. Multilateral agencies play a central role in the system. Faced with the prospect of growing humanitarian needs as a result of conflict, climate change and pandemics, the elusive quest to improve their performance continues. Yet while donors agree on the benefits of a strong multilateral system to respond to humanitarian crises, they diverge when it comes to measuring performance and providing financial incentives. A political economy defined by co-dependence and information asymmetry complicates the picture. Donors should unbundle their funding of different multilateral functions and measure their performance accordingly. Commonly agreed core functions and capacities should be supported by a greater proportion of core rather than earmarked funding. Performance of these core functions should be measured using multi-donor assessments and functional reviews. Independent measurement of outcomes should be linked to pooled mechanisms that would channel a significantly greater proportion of funding earmarked to specific crises.
- Topic:
- Finance, Multilateral Relations, Multilateralism, and Donors
- Political Geography:
- Global Focus
11898. A Path to Resiliency: Mitigating the Impacts of COVID-19 on Essential Medicines Supply Chains
- Author:
- Anthony McDonnell, Elizabeth Pisani, and Somya Singhvi
- Publication Date:
- 06-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- COVID-19 has put a spotlight on health product supply chains, highlighting the challenges in multiple steps in the global supply chain. This paper seeks to understand the impact of COVID-19 on the supply chain of a subset of essential medicines. It identifies the main categories of blockages in the global supply chain created by COVID-19, then uses data on trade flows, wholesalers, and pharma companies, and from surveys, to track the impact. There was significant short-term disruption to manufacturing caused by COVID-19. Surveys, pharmacy, and export data indicate that COVID-related disruptions impacted the supply of essential medicines, but this varied greatly by markets and product. The paper highlights that (1) data-driven approaches should be considered to make supply chains more robust, (2) solutions must account for the political and institutional landscape, (3) price surges benefit the wealthiest, and (4) local solutions are often needed to manage global shocks. More research is needed, particularly into how to obtain granular data to track supply shocks in real time? How do we increase surge capacity? Is it possible to improve procurement practices through pooled procurement, where applicable? And can pharmaceutical production be diversified, with products produced regionally to limit the risk of disruption?
- Topic:
- Pandemic, Resilience, COVID-19, and Medicine
- Political Geography:
- Global Focus
11899. Ethical Recruitment of Health Workers: Using Bilateral Cooperation to Fulfill the World Health Organization’s Global Code of Practice
- Author:
- Michael Clemens and Helen Dempster
- Publication Date:
- 05-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- In a bid to better manage the increasing migration of health workers, in 2010 the World Health Organization (WHO) adopted its Global Code of Practice on the International Recruitment of Health Personnel. The Code has been misinterpreted by many as banning all recruitment from the 57 countries it deemed to have a “critical shortage” of health workers. But that is neither what the WHO intended, nor what the Code says. Recruitment from these countries was always allowed, even encouraged, as long as it was conducted under a mutually beneficial government-to-government agreement. In this policy paper, we outline how the WHO defined a “critical shortage” of health workers, both for the original Code and for its newly published Health Workforce Support and Safeguards List. The paper then goes onto explore how countries of migrant destination and origin can (and should) design ethical and sustainable health worker migration partnerships that fulfil the requirements of the Code.
- Topic:
- International Cooperation, Health Care Policy, Ethics, and Labor Market
- Political Geography:
- Global Focus
11900. The Quality of Official Development Assistance
- Author:
- Ian Mitchell, Rachael Calleja, and Sam Hughes
- Publication Date:
- 05-2021
- Content Type:
- Policy Brief
- Institution:
- Center for Global Development
- Abstract:
- The Quality of Official Development Assistance (QuODA) measures and compares providers of official development assistance (ODA) on quantitative indicators that matter most to development effectiveness and quality. It aims to encourage improvements to the quality of ODA by highlighting and assessing providers’ performance. QuODA considers the agency-level measures and characteristics in areas that evidence suggest matters to development and where providers have made commitments. It is a dashboard of key indicators rather than a full assessment of how effective ODA has been, which depends on a wider set of actors and factors. This is the fifth edition of QuODA; it has been substantially revised since the last iteration. The indicators are based on the evidence of what matters to ODA impact and the principles agreed by 161 counties following a series of international meetings leading up to Busan in 2011 and taken forward by the Global Partnership for Effective Development Cooperation.
- Topic:
- Development, International Cooperation, Humanitarian Intervention, and Development Assistance
- Political Geography:
- Global Focus