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59081. 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

59082. 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

59083. 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

59084. 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

59085. 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

59086. 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

59087. 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

59088. 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

59089. 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

59090. 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

59091. 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

59092. The Rise or Fall of World Inequality: A Spurious Controversy?

Author:
Bart Capéau and André Decoster
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In the age of globalization, the question whether inequality in the world rose or fell down, is a hot topic. Leading scholars in the field of economic inequality measurement developed methods to estimate empirically the distribution of welfare (income) amongst world citizens. Despite their similar methodologies, they do not seem to agree about the conclusion. In the present paper we pinpoint what drives the two extreme positions apart. Sala-i-Martin (2002a, b), who claims that there can be no doubt that world inequality went down between the late 1970s and the late 1990s, has in fact calculated population weighted inequality between countries. Milanovic (2002a, b, c) does not deny this, but illustrates the empirical importance of divergent tendencies at the sub-national level (especially urban versus rural regions) for assessing true world inequality and comes to the reverse conclusion. Nevertheless, there seems to be unanimity, especially amongst the contributions quoted here, about the inequality measure(s) to be used for assessing world income distributions. We show that at least for international inequality, there is empirical evidence for rank reversals among the class of generalized entropy measures and expect the same to be true of world inequality. However, the normative debate about which inequality measure to use for assessing true world inequality has not yet begun.
Topic:
Development, Poverty, and Third World

59093. Spatial Decomposition of Inequality

Author:
Guanghua Wan and Anthony Shorrocks
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper reviews the theory and application of decomposition techniques in the context of spatial inequality. It establishes some new theoretical results with potentially wide applicability, and examines empirical evidence drawn from a large number of countries.
Topic:
Development, Globalization, and Poverty

59094. Chechnya Weekly:Observers Note Tenth Anniversary Of Chechen Intervention

Author:
Andrei Smirnov and Lawrence Uzzell
Publication Date:
12-2004
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
December 11 marked the tenth anniversary of the Russian military intervention that began the first of the two modern Russo-Chechen wars. Russian, Western and Chechen media alike featured commentaries on the start of then President Boris Yeltsin's campaign to “restore constitutional order” in the breakaway republic and what has happened over the intervening decade.
Topic:
Security and Ethnic Conflict
Political Geography:
Russia, Europe, and Asia

59095. Chechnya Weekly: Turkish Demonstrators Denounce Putin

Author:
Emil Pain and Lawrence Uzzell
Publication Date:
12-2004
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
Two thousand demonstrators marched in Istanbul, Turkey to protest President Vladimir Putin's visit to Ankara, Newsru.com reported on December 7. The demonstrators carried placards reading “Murderer Putin!” and “Get Out of Turkey!” A group of protesters from among Turkey's large community with roots in the Caucasus laid wreaths at the Russian consulate in Istanbul.
Topic:
Security and Ethnic Conflict
Political Geography:
Russia, Europe, Turkey, Caucasus, Asia, and Istanbul

59096. Chechnya Weekly: Alksnis Wants Soldiers' Mothers Investigated

Author:
Lawrence Uzzell
Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
Viktor Alksnis, one of the Russian parliament's most strident ultra-nationalists, harshly assailed the Union of Committees of Soldiers' Mothers last week for its recent offer to help promote peace negotiations in Chechnya. Alksnis, a member of the pro-Kremlin Rodina (Motherland) party, called on the federal procuracy to investigate that human-rights movement's sources of funding. The clear implication was that the soldiers' mothers are in league with western forces deliberately seeking to destroy the Russian military.
Topic:
Security and Ethnic Conflict
Political Geography:
Russia, Europe, and Asia

59097. Chechnya Weekly: Appointed Governors: Disastrous For The Caucasus?

Author:
Lawrence Uzzell
Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
The federal government has no visible long-term strategy for handling the crisis in the North Caucasus, one of Russia's leading specialists in the region told correspondent Dmitry Taratorin of Novye izvestia in an interview published on October 15. “The federal center's policy for the Caucasus can be stated exhaustively in the phrase 'we have power, so we don't need wisdom,'” said Sergei Arutiunov, director of the section for the study of the peoples of the Caucasus in Russian Academy of Science's Institute of Ethnology and Anthropology.
Topic:
Security and Ethnic Conflict
Political Geography:
Russia, Europe, and Asia

59098. Chechnya Weekly: Beslan Terrorists Executed Schoolboys…

Author:
Lawrence Uzzell and Zaindi Choltaev
Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
Further confirmation that the Beslan terrorists killed schoolboys, not just grown men, in cold blood came in an October 4 article in Novaya gazeta by Kseniya Leonova, who interviewed 14-year-old ex-hostage Andrei Kuznetsov and his mother. Andrei is convinced that his short height saved his life; he said that the terrorists forced his taller schoolmates along with the adult male hostages to carry boxes of weapons up from the basement—”and then they shot many of them.”
Topic:
Security and Ethnic Conflict
Political Geography:
Russia, Europe, and Asia

59099. Chechnya Weekly: Officials Statements On Beslan: A Study In Obfuscation

Author:
Lawrence Uzzell
Publication Date:
09-2004
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
One of the most striking features of the Beslan atrocity and its aftermath has been the unwillingness of Russia's top leadership to state clearly and candidly what it knows, or even what it thinks it knows. Though officials have repeatedly made with an air of great certitude statements that later turned out to be untrue—or could be seen to be manifestly untrue even while those officials were making them—most often these statements have come from mid-echelon officials, not from the very top. Vladimir Putin's public stance has shown a combination of fanaticism and evasiveness. Hence the importance of the detailed oral report to Putin by Prosecutor General Vladimir Ustinov, broadcast in full by the state-controlled electronic media on September 8.
Topic:
Security and Ethnic Conflict
Political Geography:
Russia, Europe, and Asia

59100. Chechnya Weekly: Officials Statements On Beslan: A Study In Obfuscation

Author:
Lawrence Uzzell
Publication Date:
09-2004
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
One of the most striking features of the Beslan atrocity and its aftermath has been the unwillingness of Russia's top leadership to state clearly and candidly what it knows, or even what it thinks it knows. Though officials have repeatedly made with an air of great certitude statements that later turned out to be untrue—or could be seen to be manifestly untrue even while those officials were making them—most often these statements have come from mid-echelon officials, not from the very top. Vladimir Putin's public stance has shown a combination of fanaticism and evasiveness. Hence the importance of the detailed oral report to Putin by Prosecutor General Vladimir Ustinov, broadcast in full by the state-controlled electronic media on September 8.
Topic:
Security and Ethnic Conflict
Political Geography:
Russia, Europe, and Asia