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While multinational corporations (MNCs) make up only 1.9% of firms operating in Uganda, they are overrepresented among tax holiday beneficiaries. New estimates reveal that Uganda’s revenue losses due to these tax expenditures peaked at USD 42 million in 2020.A new dataset allows for the first...
– A closer look
Terrorist violence has a profound influence on social attitudes, including trust in governmental institutions and attitudes towards migration and civil freedoms. Acts of terrorism cause citizens to experience a complex range of negative emotions, including anxiety, anger, sorrow, and a sense of...
– Combining tax data and Google Street View images
The issue of tax non-compliance among businesses is pervasive in many developing economies, including Uganda. But to what extent do businesses comply with their tax obligations in the capital city, Kampala? Can the local environment and geographic information help predict the risk of tax non...
Despite the rapid expansion of social protection across the Global South in recent decades, the ILO (2021: 19) estimates that more than half of the global population still have no access to any form of protection against poverty vulnerability and social exclusion. Globally, the share of aid that...
The 1980s are sometimes referred to as the ‘lost decade’ for development. Many countries in the Global South experienced weak or no improvement in poverty indicators. Our projections are equally dire for the current decade and prospects for the SDGs unless action is taken. We project a decade of...
– Differences based on gender
A recent study examines how inequality is perceived among young adults in Mozambique and how perceptions of inequality correlate with different demographic characteristics, including gender. It focuses on how young Mozambicans view the disparities between rich and poor people and why. Additionally...
Zambia is putting in place fiscal measures to improve the efficient collection of domestic revenue to finance social and public infrastructure. This analysis shows how much more revenue can be accumulated if tax evasion was at the bare minimum. Tax gap describes the share of the potential tax...
Along with several other African countries, Zambia has introduced a withholding system for value-added tax (VAT) to improve revenue collection and compliance. Even though VAT withholding policies are applied in several countries in Africa and similar industry-specific policies in Europe, empirical...
Several sub-Saharan African (SSA) countries have achieved substantial economic growth in the past 30 years. Likewise, access to education has considerably expanded, as reflected in rising enrolment rates for both men and women. Female labour force participation (FLFP) rates, however, are stagnant in...
Governments in low- and middle-income countries face a trade-off between raising tax revenue to strengthen social protection and creating incentives to enter formal employment. In developed countries so called in-work transfers (i.e., social benefits paid upon condition of being employed) have been...
The volume, Social Mobility in Developing Countries: Concepts, Methods, and Determinants, brings together leading scholars from a range of social science disciplines working on a variety of issues related to social mobility. Three motivations guide this joint effort: identifying important knowledge...
– Are moderate increases more sustainable?
Domestic revenue mobilization (DRM) — the generation of government revenue from domestic tax and non-tax resources — plays a crucial role in building an enduring financing architecture for sustainable development. This brief summarizes the dynamics of DRM trends across the past four decades...
The volume, Social Mobility in Developing Countries: Concepts, Methods and Determinants, brings together leading scholars from several disciplines to advance research practice on social mobility. Three sets of motivations guide this joint effort: identifying important knowledge gaps; bringing...
– Evidence from risk-based tax examinations
Risk-based approaches are becoming commonplace for tax authorities as a tool for enforcement. Improvements in technology, technological adoption and in some cases machine learning, hold great promise for finding the taxpayers who are most likely to avoid taxes, thus improving the detection of non...
– Dinâmica da transição ensino-emprego dos finalistas do ETP em Moçambique
O Ensino Técnico-Profissional (ETP) é frequentemente visto como uma solução milagrosa que resolve questões que vão desde o desemprego juvenil até à mudança estrutural relacionada com o mercado de trabalho. Isto é particularmente verdade para os países em desenvolvimento com um ensino básico...
– The dynamics of school-to-work transition of TVET graduates in Mozambique
Technical and Vocational Education and Training (TVET) is often seen as a silver bullet resolving issues ranging from youth unemployment to labour market-related structural change. This is particularly true for developing countries with deficient basic education and high numbers of youth seeking to...
Recent analysis of inequality trends — which relies on the World Income Inequality Database (WIID) Companion, a pair of rich new datasets — assesses the extent to which inequality trends depend on certain views about inequality, including whether absolute or relative income changes matter more and...
– Does it make a difference?
How could countries in the Global South develop their tax systems further and improve compliance? This analysis shows how two tax administration interventions impacted the number of small business taxpayers and presumptive tax revenues in Uganda. One-stop-shops — where citizens could register for...
What was the impact on earnings of the economic crisis caused by the first wave of the COVID-19 pandemic in Ecuador? To what extent did social assistance programmes compensate household income losses? ECUAMOD, the tax-benefit microsimulation model for Ecuador, helps to assess the distributional...
Even though poverty and inequality have been of overriding concern in South Africa’s development policies and programmes since its democratization in 1994, measures of poverty, inequality, and related phenomena in the country do not show a clear improvement. In some important respects, they show...
The two primary features of a job are its wage and how long it lasts. Today, there is an extensive literature on wages in the developing world thanks to the expansion of national household survey data. However, far less work has been conducted on job duration in these countries, primarily due to the...
– Natural gas as a key
Plastics are universal and integrated into different sectors of the economy. Industrial policy requires countries to look at moving up the value chain and producing progressively more sophisticated products to contribute to improved economic development. The input materials that are used for...
– Blueprint, experiences, and outcomes
East Asia’s successful experience in accelerating the process of industrial development with SEZs paved way for the use of SEZs as policy instruments in Africa. In southern Africa, Zambia and South Africa instituted SEZs in legal and institutional frameworks in the 2000s as mechanisms for catalysing...
– Promises and pitfalls of tradable services in Africa
There is growing recognition around the world that tradable services can play a valuable role in economic development. Africa is no exception, with the need for multiple routes to growth, particularly vis-à-vis the COVID-19 pandemic. Tradable services — business activities that can be exported or...
– The distribution of household wealth in South Africa
South Africa is, by most contemporary measures, the most unequal country in the world. Yet, relatively little attention has been given to country’s wealth inequality. It is crucial to accurately measure the concentration of wealth inequality over time, identify the root causes of the current...
Monetary policy affects the real economy through various channels, including the interest rate, exchange rate, credit, and asset price channels. The credit channel has recently received considerable attention. Small firms are more sensitive to changes in interest rates. Small firms which are...
Regional integration in Africa has potential for increasing regional trade and contribute towards industrialization and economic development. Agro-processing trade offers numerous opportunities for southern Africa countries and is a potential area of business to reduce poverty in the region. However...
It is important to understand how working conditions faced by workers in Vietnamese SMEs affect levels of compensation. This is salient given the scope of SMEs in Vietnam — they contribute to approximately 45% of the country’s GDP and 60% of its employment. There are no clearly defined financial or...
– SMEs and access to credit
During the last three decades Vietnam has undergone a considerable economic transformation. However, little research has considered the role that financial reform has played in the development of small and medium size enterprises (SMEs). A focus on the financing of SMEs is of particular importance...
Much work has been done on inequality in South Africa, but to date the literature that assesses the dynamic response of income or wealth distribution to economic policy actions is almost non-existent. This information gap is caused by data shortcomings that make it difficult to provide accurate...
– What kind of firms employ young people in South Africa?
According to South Africa’s National Development Plan Vision 2030, serious action needs to be taken to reduce poverty and encourage economic growth. One of the main challenges involves reducing the unemployment rates in South Africa, particularly among youth. In South Africa, young and large firms...
– The impact on equality in South Africa
The impact of medical deductions and medical credits on income inequality is a subject of discussion in South Africa, as well as in many other countries, raising critical questions about the fairness of the medical tax system and the impact on affordability for the poor. An in-depth analysis of...
The transformation of Asia’s education and health systems over the last 50 years has been breathtaking and unprecedented in human history. There are some central features of this transformation that clearly stand out. Over the last 50 years, all Asian countries have been able to expand citizen...
– Transnational growth corridors as a solution
Comprehensive harmonization is crucial to eliminate inefficiencies that hamper free movement of goods and services in the Southern African Development Community (SADC) region. Territorial collaboration between metropolitan clusters and rural areas connected by transport corridors is a potential key...
– What are the challenges?
Diversifying the agricultural production in sub-Saharan Africa is important for the combat against poverty and climate change. In Malawi there are plans for legalizing the cultivation of industrial hemp, which would at best bring possibilities for Malawi and South Africa to complement each other in...
Special economic zones (SEZ) in Africa are generally regarded as underperforming relative to their peers in the rest of the world. To explain this underperformance and to support success in the future it is important to analyse the key features and what is lacking in the design of African special...
– Can foreign direct investment help South Africa increase the complexity of its exports?
Since the end of apartheid, South Africa’s economic challenges have disrupted efforts to establish a society of inclusive growth and prosperity. Understanding how South Africa can break the pattern of sluggish growth, high unemployment, inequality and poverty is a pressing policy issue. The overall...
– A pathway to effective tax collection in South Africa
Many governments, particularly those in developing countries, have set an objective to improve tax revenue mobilization to offer more and better public services to their citizens. To develop effective revenue-raising strategies it is necessary to determine whether there is a tax revenue gap and gain...
– A snapshot of Mozambique in 2015–2018
After decades of war and conflict, Mozambique and its economy experienced a strong recovery from the 1990s into the 2000s. However, between 2015 and 2018 multiple crises unfolded in Mozambique — the economic crisis and the scandal of hidden debt, severe weather shocks, and increasing violence in the...
Given the weight of micro, small, and medium size enterprises (MSMEs) in total employment in Vietnam, and because the long-awaited development process is occurring through productivity gains, there is value in understanding the mechanisms that foster or limit their expansion. In particular there has...
Over the last 50 years, Asia has emerged as the most important laboratory for understanding the roots of state effectiveness and the consequences of different modes of state action for delivering enhanced wellbeing. While in the mid-twentieth century social science researchers were focused on...
– The framing of social protection policies in Tanzania
Until 2010s, social protection was not high on the political agenda in Tanzania. Yet in 2012, the government approved the implementation of a nationwide conditional cash transfer programme. What led the government to commit to a policy area that was otherwise of low priority? The development of the...
– Example from Malawi
Social assistance programmes have proliferated across Africa alongside redemocratization — the return of multi-party systems with regular, competitive elections. Competitive elections in Africa can provide an incentive to welfare policy reform because they push presidential candidates and political...
The Rwandan government introduced the Vision 2020 Umurenge Programme (VUP) with donor support in 2008. The VUP comprises public works, unconditional direct support for those unable to work, and a financial services component that promotes financial literacy and provides credit. This new elite...
– Experience over the last fifty years
Asia has achieved remarkable economic growth and seen hundreds of millions of citizens rise out of poverty since the mid-1960s. Constructing and analysing the factors behind continent’s poverty and inequality over the last fifty years helps gain important insights for further reducing global poverty...
One common characteristic of the fast-growing countries with good labour market outcomes — Korea, China, Vietnam — was at the beginning of their growth spurt their initially equal household income level, which was the result of renewed distribution of income. The most salient examples of more equal...
– Reducing the impact of global oil prices
Analysis of World Bank data ranging from 1990–2017 indicates that increases in global oil prices would have negative effects on the economic growth of SADC, especially Mozambique, Tanzania, Zambia, and Mauritius. Given the high reliance of Southern African countries on crude oil imports, barrel...
The success of an economy’s manufacturing sector is often critical to economic growth and development. As a major contributor to exports, site of innovation, adopter of international best practices, and engine of job creation, an internationally competitive manufacturing sector often drives output...
Service exports are the fastest growing portion of world trade and now account for nearly a quarter of global exports. Tradable services contribute to economic growth and development by bolstering industrial capabilities, facilitating productivity growth and investment, and contributing directly to...
The design and implementation of industrial policy should be closely linked to spatial considerations. Firm output and productivity are often location-specific, with factors such as the availability of physical infrastructure, proximity to sources for raw materials, and the potential for adopting...
– Poverty and inequality in Ghana
Ghana has recently implemented a policy to support public secondary education. A microsimulation analysis helps reveal the impacts of the reform on poverty and inequality and identifies options to finance it without burdening poor households. A recent policy implemented to support public secondary...
New research provides the first direct evidence of tax-motivated transfer mispricing in a developing country. Using highly detailed firm-level customs data from the tax authority, the analysis calculates the difference between legitimate estimates of market prices (known as the arm’s-length price)...
The study uses a comparative analysis of foreign-owned firms operating in South Africa to show that firms with a parent registered in a tax haven tend to report 80% less in profits than similar firms without a parent in a tax haven. This is highly suggestive, but not conclusive, evidence of profit...
– Are they persistently high-growth firms?
The analysis of firm growth has been a topic of consistent economic interest as a growing body of literature has lent support to the possibility that the majority of growth and new employment creation is the result of a small sub-sector of high-growth firms (HGFs). While this has been demonstrated...
– Can South African firms compete with Chinese imports?
China’s growing edge in export manufacturing has caused concern for low-income and middle-income countries seeking to develop robust manufacturing sectors. China’s recent transition from an exporter of lower-tech goods, such as garments, to more advanced products, such as components for high-tech...
– Impacts on economic development
Over the past 20 years, researchers have been looking at the economic lifecycle of individuals around the world using National Transfer Accounts (NTA) data. The focus of this research has been on understanding how societies produce, consume, share, and save resources across generations, how these...
– Socioeconomic class and poverty in South Africa
South Africa is often cited as the most unequal economy in the world. Its experience of having to overcome both colonialism and apartheid makes it unique from the vantage of studies on socioeconomic class, economic mobility, and poverty — with household characteristics like race, gender, and...
– The case of value-added tax in South Africa
In a democratic system, taxation is a critical part of the social contract between the state and its citizens. The tax system can be used to help address the unacceptably high levels of poverty, inequality, and unemployment in South Africa. An increase in VAT from 14% to 15% caused a modest rise in...
The World Bank reports that the world loses US$160 trillion in human capital wealth due to gender wage inequality every year. Inequality is not just an issue of fairness. It is also undesirable because it hampers poverty reduction strategies and leads to suboptimal allocation of resources. In South...
Regional integration is making steady progress in Southern Africa, leading to the development of regional value chains (RVCs) that could strengthen the competitiveness of the region. Importantly, the development of RVCs also creates pressure for further integration. While integration brings major...
– Addressing the lack of data and observing the structure of the economy
With the recent democratic elections, Myanmar has entered a new development phase. To support this process there is amongst others a need for sound economic policies that have an economy-wide perspective. To enable such policies, appropriate analytical methods and the relevant underlying data, must...
Social protection systems in Africa are still in their infancy. As countries develop their systems, it is crucial to look at how existing tax-benefit programmes affect poverty and inequality and how countries can learn from each other’s systems.Microsimulation models can be used to study existing...
– Are non-farm jobs the driver or a brake?
The increasing proportion of non-agricultural work in rural India has commonly been associated with widening income inequality. However, our simulations from the village of Palanpur in the north suggest that without this diversification inequality might well have increased even more. From the mid...
– The case of Malawi, Mozambique, and Zambia
Much discussion of climate change in the developing world focuses on if, when, and to what extent developing countries should be subject to any global attempts to curb greenhouse gas emissions. Little work has been done on the likely economic impacts resulting from the interplay of climate change...
– Correcting the data on top incomes in China
China has experienced fast economic growth over the last forty years. The number of Chinese billionaires has grown exceptionally fast and their wealth has increased enormously. At the same time, official statistics report decreasing inequality over the most recent decade. However, correcting data...
– A tax-benefit microsimulation
In an attempt to reduce poverty and vulnerability in a sustainable and cost-effective way, in 2003 the Zambian Government introduced a social cash transfer (SCT) scheme. However, a recent review of Zambia’s social assistance system revealed that this scheme provided insufficient coverage to many...
From an international perspective, growth in average wages has been very impressive in urban China during recent decades. Average wages were about ten times as high in 2013 as in 1988. But how has wage inequality evolved during this period? Wage inequality increased rapidly in urban China during...
– New gas finds, investments, and their implications in Mozambique
Large flows of foreign investments have not been translated into a boom for the Mozambican economy. On the contrary, they have foreshadowed a sustained period of deep economic difficulty for the country. What is the story behind this phenomenon and what are its implications? Mozambique has been...
– Will local content do the trick?
Extractives and interlinked industries are expecting a boom in Mozambique. This could be good news for the country’s economy, in theory. But can extractives really work as a driver to diversify the Mozambican economy? It is unlikely that the extractives sector can any time soon be used to finance...
As with many other developed and emerging economies, in recent decades Mexico has experienced a long-term decline in the labour income share. The decline is observed in both the share of wages in value added and in more comprehensive measures that include the labour income of the self-employed. What...
– Lessons from international experience
Mozambique has seen a significant expansion of interest and investment in its extractive industries. New gas finds in the past ten years have led to expectations that these industries will contribute very significantly to the country’s future economic development and its long-term structural change...
Climate change is one of the most complex and urgent of global issues due to its potential impacts and the policies and measures needed to address those impacts. Both are potential game changers for the Earth’s biosphere, ways of life, and economic development into the twenty-first century and...
– How inflated expectations of oil revenues led to a deterioration in macroeconomic management
Prior to the discovery of oil, Ghana was one of the stars of the ‘Africa rising’ story, with an established track record of macroeconomic stability and fiscal discipline. When oil was discovered, there were great hopes that Ghana would avoid the ‘resource curse’. Initial signs were promising — the...
Driven by rapid growth in mining and related infrastructure investment, exports of machinery and equipment from South Africa to other Southern African Development Community (SADC) countries more than quadrupled from 2003 to 2013. Growth has, however, since slowed due to a more subdued commodity...
– Success and failure in the extractive sector
A central difficulty for extractive activity is that benefits accrue at the national level but disruptions are highly localized. Companies recognise that these imbalances need to be addressed and adopt active programmes to improve local benefits. These programmes have had mixed past success, partly...
Research Brief
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Transport and logistical efficiencies are critical factors in the competitiveness of regional value producers. The relatively high cost of regional transport in Southern Africa has impacted suppliers’ cost-competitiveness. Reducing the cost of bringing products into main markets is one way of...
Research Brief
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– The importance of mitigating emissions
More intense climate changes are expected in South Africa if GHG emissions are not constrained. Increased GHG emissions are likely to result in increases in average annual surface temperatures and higher evaporation rates. Average precipitation levels across South Africa are uncertain, with both...
Research Brief
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The demand for irrigation is likely to increase in South Africa as a result of increased temperatures and evaporation rates. Rain-fed agricultural crops are likely to experience a decline in average annual yields. This is particularly the case for maize and wheat, which are staple foods. Soybean and...
Research Brief
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– The animal-feed-to-poultry value chain
15-20% of local demand for poultry in South Africa is met by imports Evidence from Zambia suggests that capital investments in the value chain can increase local production Increased demand due to growing urban populations poses critical challenges for local industrialization in southern Africa...
Research Brief
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Climate change risks for run-off and irrigation demand vary significantly across South Africa, with some regions expected to experience increased drying and others flooding Smaller impacts on water resources by 2050 are expected if global emissions are mitigated Even under strong mitigation policies...
Research Brief
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Supermarkets are potential partners in regional industrial development and should be considered in future policy making While the growth of supermarkets in the region has improved competitive pricing and accessibility to a broader range of products and services, it has also imposed challenges...
Research Brief
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While South Africa’s democratic transition precipitated a period of growth, this growth was not inclusive and both poverty and inequality remain high A significant trend in the South African labour market has been the rising share of workers in the public sector High levels of demand for skilled...
Research Brief
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What types of businesses benefit or suffer due to geographic clustering? Data available from Cambodia on competition and spillovers—at both village- and commune-level—is useful to answer a number of questions about the effects of clustering and the possible benefits or drawbacks of encouraging the...
Research Brief
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The clustering of industries in specific areas has improved industrial productivity in a number of countries. Since the mid-1990s in Tunisia, concerted policies have been introduced which focus on improving the efficiency of the labour force, and the productivity of firms by creating clusters of...
Research Brief
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– Determining the impact of rising food prices
Evidence obtained from detailed household surveys in Mozambique during the 2008-09 food price shock reveals just how pronounced the impact of food price inflation can be on children’s overall nutrition status. Moderate and severe underweight prevalence in children in Mozambique is significantly...
Research Brief
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Burkina Faso is a landlocked country in West Africa, poor in natural resources, and with low levels of human development. Its economy remains agricultural and focused on food crops and cotton production. Over the last twenty years it has experienced average annual growth of around 2%. However...
Research Brief
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– How much are we willing to allow top earners to squeeze the poor?
The majority of income inequality occurs at the tails of the income distribution The Gini coefficient does not provide a representative measure of income inequality When the top 10% of income earners expand their share of national income it often appears to be to the detriment of the poorest 40%...
Research Brief
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– Income inequality in former British African colonies
The presence of European colonial powers in Africa has left a long-lasting legacy that has severely impacted their development trajectories. But what are the lingering effects of colonization on economic performance, in particular with regard to inequality? While clear information on many economic...
Research Brief
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The Egyptian food system has been affected by both global food markets and domestic factors. During the recent global food price crisis, an estimated 30–40 percent of the price fluctuations in the global food market were transmitted to Egypt’s food market. Domestically, government subsidies for...
Research Brief
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The recent food price crisis and the responses of the policy makers in developing countries provide an unprecedented opportunity to analyse the policy processes in these countries. Policy responses differed depending on the nature and magnitude of the roles of various actors, political institutions...
Research Brief
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– IMF financing versus debt-restructuring
In the twentieth and early twenty-first centuries, debt crises have plagued low-, middle-, and high-income countries at various times. Indebted countries have generally addressed balance of payments crises either by (a) obtaining International Monetary Fund (IMF) emergency financing; or (b)...
Research Brief
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Global food price hikes during 2007-08 resulted in a sharp rise in staple food prices in Bangladesh, which in turn led to a significant rise in the number of households falling below the poverty line. On the political front, Bangladesh was run by an unelected and undemocratic ‘civil’ caretaker...
Research Brief
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The global food crisis in 2007–08 raised concerns everywhere, including in China. However, despite China’s highly-integrated domestic and international markets for many agricultural commodities, the effect of the crisis in China was only moderate. The government’s responses and countermeasures to...
Research Brief
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The impact of the 2007–08 food price crisis in Brazil was relatively subdued compared with what took place in many other developing countries. Because the crisis potentially undermined both social inclusion and price stability, both important priorities in Brazil, the absence of any great reaction...
Research Brief
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Aid projects that specifically target women tend be better at increasing gender equality than those that mainstream gender. The gender gap can be narrowed through public works that focus on providing decent employment for women as well as training and micro-finance for female entrepreneurs. The lack...
Research Brief
Economic growth has had a negative effect on unemployment and poverty reduction in Africa. The transition from low- to middle income requires within sector increases in productivity and a shift of labour resources from low productivity agriculture to high productivity manufacturing. Structural...
Research Brief
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Social insurance has not succeeded in reducing fiscal deficits and expanding coverage to more beneficiaries in Latin America Social assistance has had a greater impact on poverty and inequality than social insurance In lower-middle-income countries, social assistance programmes have not expanded as...
Research Brief
During the 1990s, inequality in Ecuador increased because of a natural disaster and deep economic and financial crisis, as well as the impact of liberalization of the trade and financial sectors on labour markets Falling income equality in Ecuador during the 2000s partly coincides with the rise to...
Research Brief
– An Empirical Analysis
Left-of-centre governments emphasized fiscally-prudent but more equitable macroeconomic, tax, social expenditure and labour policies A drop in the premium paid to skilled workers following a rapid expansion of secondary education decreased wage inequality Addressing continued inequality In recent...
Research Brief
Integration of Latin America into the international economy over the past quarter century has led to faster export growth, but not to faster GDP or productivity growth Contrary to mainstream analysis, under the current market reforms countries have underperformed as compared to the prior period of...
Research Brief
After tax reforms in the 1980s and 1990s, income inequality increased in many Latin American countries The tax reforms of the 2000s have been more equalizing in terms of income inequality: Argentina, Honduras and Nicaragua have seen the most redistribution of income Taxation remains unequalizing in...
Research Brief
Fragile and conflict-affected states, like Sierra Leone, can maintain a strong public financial management structure if they are able to find foreign support for administrative capacity and sufficient domestic political and executive support. PFM legal framework, budget planning and scrutiny, still...
Research Brief
Civic education programmes can have meaningful and relatively long-lasting effects in terms of increasing political information, feelings of empowerment, and mobilizing individuals to engage in political participation. Civic education programmes are much less likely to affect more ‘deep-seated’...
Research Brief
In addition to large class sizes, peer effects, such as overage-for-grade and late-starting pupils, are challenges for the successful development of education sectors in East Africa; there is a comparative lack of research on the impact of peer effects. Household surveys provide good data with which...
Research Brief
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The five Paris principles of effective aid were only nominally successfully implemented in the state-building process of South Sudan. While the importance of the first principle, ownership, was highlighted in development plans in Southern Sudan, capacity limitations restricted the role of the local...
Research Brief
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The National Solidarity Programme (NSP) serves as a success story that has improved many Afghan lives and laid the groundwork for potential longer-term development. The NSP had a positive effect on access to drinking water and electricity, acceptance of democratic processes, perceptions of economic...
Research Brief
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Each dollar of aid per year provides 0.17 people with access to water or sanitation. This amounts to a cost of US$5.88 per person. Due to economies of scale, countries with large populations benefit more from aid to the water and sanitation sectors. Institutional reforms that facilitate the...
Research Brief
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Only three out of 36 World Bank investments in Malawi, Mali, Niger and Rwanda appropriately address women’s unpaid care work. Despite the lack of World Bank investments specifically targeting unpaid care work, Bank investments do appear to be increasingly integrating gender dimensions into project...
Research Brief
– Exploring the Fatal Flaw
Aid to Haiti has not been effective due to failure of the country’s political and economic elites to participate and assist in the development process. US foreign policy has in some cases reinforced the tendency for elites to personally profit from aid initiatives. Haiti has received more than US$20...
Research Brief
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In Mali aid has had a positive impact on some areas of democratic consolidation such as strengthening the economy and civil society, election support and conflict resolution. Three significant structural problems were not addressed properly by donors; weak institutions of accountability, regional...
Research Brief
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– A Trade-Off Between Governance and Democracy?
In Mozambique donors have shifted focus from project aid to budget support in an effort to reform the public sector and ‘justice, legality and public order’. While budget support has increased state capacity and helped Mozambique’s donor community find common ground, it has had a negative impact on...
Research Brief
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Favouritism of government controlled councils is most distinct through interference in local politics rather than through funding mechanisms. The motivation of central government intervention in land deals is two-fold - their actions can be explicitly motivated by politics and self-interest or they...
Research Brief
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While the majority of interventions against HIV/AIDS, tuberculosis, and malaria had positive short-term effects, these were frequently not translated into long-term sustainable results. Cash transfers may have the potential of reducing HIV transmissions but the effect is so far insignificant...
Research Brief
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Sub-Saharan Africa receives 48 per cent more family planning aid than other regions. Countries with high fertility rates and large populations tend to receive more family planning aid The USA’s Mexico City Policy (MCP) reduces total foreign aid to family planning by 3-6 per cent per year globally...
Research Brief
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Microfinance evaluations reveal a positive impact on per capita income, non-land asset value and poverty incidence. Across countries and methodologies, microfinance is most likely to have a short-term positive effect; regionally, the most positive impacts are seen in Africa. Women tend to benefit...
Research Brief
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Democracy assistance and donor support have been key in fostering a new type of civil society, dominated by NGOs, the legal community and churches. The bulk of donor funding to Zambia is channelled to the executive through budget support, this has the potential to increase the concentration of power...
Research Brief
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– The Impact of Development Aid and Democracy Assistance
Development aid was effective in promoting democratic transitions during the 1990s in African countries beset by economic crisis domestic discontent, and a high dependency on aid. Development aid also influenced democratic transition indirectly through conditionalities that required unpopular...
Research Brief
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Foreign aid is a significant element of Uganda’s long-run fiscal system. Aid is associated with increased tax collection effort and public spending in Uganda. Development assistance is also associated with reduced domestic borrowing in Uganda. Aid is not sufficient to balance Uganda’s budget. Budget...
Research Brief
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– The Comparative Case of the Nordic Development Agencies
The three Nordic development agencies Danida (Denmark) Sida (Sweden), and the Ministry for Foreign Affairs of Finland (FMFA) all recognise gender mainstreaming as an important part of the policy-making process. Gender equality is a well-funded objective in all three agencies, but Danida and FMFA...
Research Brief
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The programme did lead participating households to use improved seeds. Food consumption scores did not improve after the programme. However during the programme participating households moved to more sustainable strategies to cope with food shortages. Fertilizer use improved by 20 per cent amongst...
Research Brief
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Strong economic growth has not turned into poverty reduction in Mozambique due to stagnation in job creation. While the country sees great growth potential from natural resources, this industry is unlikely to generate many jobs as it is not labour-intensive. A fundamental challenge to job growth in...
Research Brief
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Initial high human development index scores and per capita income have a strongmimpact on the outcomes of aid to the health and education sectors. An increase in the share of the government budget allocated to education and health improves overall human development. Aid appears to be effective in...
Research Brief
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Official development assistance to women’s equality organizations and institutions is effective in increasing women’s political empowerment. In contrast, aid targeting reproductive health and family planning does not appear to impact women’s political participation. Autocracy has a negative infl...
Research Brief
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Corporate actors are now playing an important role in international development and contributing new ideas to development aid. Corporate–donor partnerships represent unique opportunities to combine the experience of donors with the innovative business knowhow of corporate actors. The United Kingdom...
Research Brief
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Forest degradation remains a leading environmental problem, given the scale of forest loss and the crucial role of forests to both climate change mitigation and adaptation. Initiatives from the climate change policy arena, especially REDD+, are opening new ways for a broader mainstreaming of forest...
Research Brief
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Development of green cities is one way to help address problems associated with climate change. Curitiba, Brazil, combines integrated sustainable urban planning and strong leadership, resulting in a reduced environmental impact since it began these policies in 1966. Tianjin City, China, emphasizes...
Research Brief
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A secure environment is an important component of successful economic development initiatives. Policing reforms in African states have been disappointing; the image of state policy and police–community relations remain poor. States that have enacted successful police reforms have had four important...
Research Brief
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Japan’s post-war liberalizing reforms were a success. This was partly due to the fact that US occupation preserved the strength of national institutions and made effective use of their capacity. Improvement in the scope of the state and the strength of Afghan institutions has been weak, despite the...
Research Brief
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Kosovo and East Timor share many similar characteristics, and yet they have had divergent results in post-conflict state building. East Timor has enjoyed far greater development success since its independence, whereas Kosovo is now the poorest and most economically depressed country in Europe. Many...
Research Brief
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There are over 900 million working people who earn less than US$2 a day, while 200 million people are unemployed. Unemployment is a bigger problem in high-income countries, in low-income countries unemployment is rarer as work is essential for survival for the poor. One of the most pressing goals of...
Research Brief
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Many World Bank investments include women’s concerns only superficially. Lack of attention to gender roles negatively impacts women’s rights. The Bank’s continued promotion of user fees in sexual and reproductive health projects prevents poor women from accessing care. The Bank’s inconsistent...
Research Brief
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A number of small, isolated countries are not experiencing the rapid economic growth of larger, more connected economies due to weak governance and isolation. Small, isolated economies require more aid to alleviate poverty than rapidly developing, converging economies. Potential investors are...
Research Brief
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Afghanistan has received vast amounts of development aid, but results may not be sufficiently robust. There is a limited menu of acceptable options for institutional arrangements, leading to a high dependence on external resources, technical expertise, and institutional models. There is not a...
Research Brief
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Three-quarters of the world’s poor (however defined) live in countries classified as middle-income. Donors need not assume their only option is to abandon countries once they cross the arbitrary threshold in per capita income. The thresholds themselves currently used to classify countries as low...
Research Brief
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Transitional justice processes often fail to adequately deal with gender issues. Attempting to deal with gender-based violence during periods of transitional justice is often seen as destabilizing and a threat to future stability. Women’s rights are still often seen as yielding rights that have to...
Research Brief
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Development practice continues to operate on the assumptions of an outdated theory of modernization. Developing countries often sustain legitimacy by imitating other successful modern institutions without actually developing the functionality of the institutions they are copying. Aid...
Research Brief
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The natural resource sector in Liberia has failed to produce links to other important sectors of the economy, and in particular has failed to create jobs for the large majority of the population. Creating new and productive jobs is key to national reconciliation. The aid community needs to...
Research Brief
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Current development practice focuses too much on the form institutions take, at the expense of worrying about function. A focus on strict rules that aim to curb corruption and inefficiency can diminish the amount of experimentation and adaptation that is possible. The desire to have a way of visibly...
Research Brief
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– The Role of Land
Land-based services will become increasingly important as global public goods in the context of changing climate, particularly in terms of mitigation and adaptation. Carbon sequestration, irrigation, infrastructure and local environmental services will all need significant investment in order to...
Research Brief
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– Global Issues, Bilateral Delivery
Levels of environmental aid for global issues are increasing. Environmental aid is increasingly allocated through bilateral aid agencies rather than through the multilateral channels created for this purpose. A consistent demand of developing countries has been that any requirement to pursue...
Research Brief
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Over the period 2007–50 climate change is predicted to cause Vietnam’s annual GDP growth rate to fall between 0.02 and 0.10 percentage points. While small relative to GDP, absolute loss levels due to climate change are significant at between US$6-15$ billion (in present value terms using a discount...
Research Brief
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All climate scenarios considered result in reduced national welfare, if no reforms are enacted. If no policy changes are implemented, the present value of climate change costs up to 2050 are between US2 and US7 billion, for the scenarios considered in Mozambique. Climate change damages, while being...
Research Brief
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– What Works and What Could Work?
Current international agricultural development and food security systems are ill-prepared to address the global agriculture, food and nutrition problems. Structural reforms are necessary to deliver the essential international public goods for improved food security; better co-ordination in the...
Research Brief
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The three goals of promoting development, adaptation to climate change, and climate change mitigation are in reality inseparable policy areas and as such there is a compelling case for addressing them simultaneously. Climate finance aimed at helping developing countries to make adaptations to deal...
Research Brief
In the WIDER Working Paper ‘Decentralized Service Delivery in Nairobi and Mombasa: Policies, politics and inter-governmental relations’ Winnie V. Mitullah assesses the major obstacles to providing critical services, such as solid waste management and water, in Nairobi and Mombasa. She argues that...
Research Brief
In the WIDER Working Paper ‘Aid and Investment in Statistics for Africa’ Jeffery I. Round discusses how the effectiveness of aid aimed at improving statistical capacity in Africa can be assessed. He begins by describing the reasons behind the increasing demand for data, and the institutions involved...
Research Brief
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Development aid aimed at increasing productivity in the fisheries sector has at times had a negative effect by encouraging or facilitating overfishing. A percentage increase in capacity enhancing or bad subsidies in sub-Sahara Africa, all else being equal, will increase catch loss per square...
Research Brief
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Review shows that global agricultural production must be increased by about 70 per cent by 2050 in order to provide sufficient nourishment for the world’s growing population. Focusing on tropical climates to 2050, climate change is likely to reduce the rate of agricultural productivity growth. The...
Research Brief
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The goal of economic growth combined with environmental protection in developing countries requires not just financial and technological resources, but also the local capacity to design and implement successful policies. Aid programmes for capacity-building related to climate change are most...
Research Brief
It is widely recognized that entrepreneurship is of critical importance to industrial development. Despite this importance we know little about the skills of business owners and managers in developing countries. In the WIDER Working Paper ‘The Role of Training in Fostering Cluster-Based Micro and...
Research Brief
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– Findings and Lessons for the Future
Under-nutrition is the single biggest cause of the global burden of disease, and many of those affected are children. Early childhood under-nutrition has severe consequences; it accounts for more than 35 per cent of deaths and another 35 per cent of the disease burden in children under five years...
Research Brief
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The most successful projects and programmes are those that give local partners real ownership over the development process. Aid to health is not always allocated to the areas where it is most needed. Aid fragmentation creates extra costs for recipient countries and reduces the effectiveness of...
Research Brief
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Lessons of what works in foreign aid to education are often known but not implemented. Developing the technical capacity of those involved in education is a crucial part of improving educational quality. Many of the problems related to capacity development in the education sector are the result of...
Research Brief
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– Ways to Attain MDG4 and MDG5
Progress towards the achievement of MDG4 and MDG5 has been impressive with both maternal and child mortality being reduced by over 40 per cent since 1990. However, achieving the goal of a reduction of two-thirds by 2015 will not be easy. The Paris Declaration principles of ownership, alignment, and...
Research Brief
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– Crucial for the Spread of Social Protection Programmes
Evaluations of social protection programmes have been much more comprehensive in Latin America than in sub-Saharan Africa. Monitoring and evaluation protocols are crucial to facilitate improvements in government effectiveness. Anti-poverty transfer schemes seem to be subjected to more evaluation...
Research Brief
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An increase of education aid by one per cent increases the rate of primary education enrolment by 0.06 percentage points. The most robust effect on primary enrolment is obtained by aid to the category ‘education facilities and training’. High levels of education aid in the last decades concentrating...
Research Brief
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Most studies show that education aid has a modest but positive effect on enrolment levels. Less is known about the effect of aid on the quality of education. The effectiveness of education aid is to a large degree dependent on the stability of the institutions in the recipient country. Institutional...
Research Brief
China is the world’s largest developing country and its huge population requires a similarly large agricultural sector to sustain it. A major challenge for China faces is working out how increasing demands for food can be met at the same time as reducing greenhouse gas (GHG) emissions. Despite the...
Research Brief
It is a widely accept projection that many low income countries (LICs) will remain low income for some time to come. Consequently, when assessing the policy options available to LICs it is important to take a long-term view. In the WIDER Working Paper ‘Aid, Fiscal Policy, Climate Change, and Growth’...
Research Brief
Even the most optimistic analyses accept that many low-income countries (LICs) will remain low income for some time to come. Consequently, when assessing the policy options available to LICs it is important to take a long term view. In the WIDER Working Paper ‘Aid, Fiscal Policy, Climate Change, and...
Research Brief
The civil service is the backbone of the state, and can either support or undermine a country’s entire system of governance. Donor’s recognize this important fact and have often tried to promote civil service reform in the countries they are providing aid to. However these attempts have all too...
Research Brief
– Budget Support, Aid on Delivery or Project Aid?
One persistent concern raised during discussions of whether aid effectively promotes the goals of donors is fungibility, that is; the possibility that aid is used in ways not intended by donors when disbursing the funds. It could be used to lower taxes, to fund projects in a different sector, or...
Research Brief
EU aid is complicated both by its close relationship to the EU’s foreign policy in general, and by the question of what Europe should do as a community and what should be done by individual member states. In the WIDER Working Paper ‘EU Aid: What Works and Why?’ Poul Nielson aims to simplify the...
Research Brief
– The Role of Politics
In the WIDER Working Paper ‘Vertical Decentralization and Urban Service Delivery in South Africa: Does Politics Matter?’ Robert Cameron looks at the ways in which politics affects decentralization and service delivery in South Africa. To do this he looks at Cape Town, which is controlled by the...
Research Brief
Foreign aid has been slow to react to the challenge of urbanization, but must do so if it is to be an effective force going forward. In the WIDER Working Paper ‘Improving Donor Support for Urban Poverty Reduction: A focus on South Asia’ Nicola Banks argues that if a donor’s urban poverty reduction...
Research Brief
In the WIDER Working Paper 'Aid and the Fiscal and Monetary Responses to Dutch Disease' Alan Roe looks at the ways in which aid-induced, and mineral export-induced Dutch Disease (DD) are similar, and the ways in which they differ. He argues that many countries will experience both kinds of DD...
Research Brief
Various studies have shown that there is a positive correlation between urban population levels and gross national income. As such the growth of the urban population in sub-Saharan Africa may have a positive impact on the region’s economic development. However, this growth also presents a challenge...
Research Brief
A common theme in the literature on aid effectiveness is that the character of the relationship between donors and recipients is a crucial determinant of how effective the provided aid is. One important dimension of this relationship is the extent to which donors in a certain country coordinate...
Research Brief
In the WIDER Working Paper 'Ghana: The Limits of External Democracy Assistance' E. Gyimah-Boadi and Theo Yakah look at how donor assistance has helped support elections, parliament, political parties, civil society, and the media in Ghana. They argue that while donor assistance has had a positive...
Research Brief
A key pledge of the Paris Deceleration of 2005 was that aid flows would be made more predictable. This is a key goal as aid shortfalls can cause a government to disproportionately cut their investments, while sudden spikes in aid can lead to a dramatic boost in government consumption. The majority...
Research Brief
The question of whether aid is effective in promoting economic growth is a complex and controversial one. While there is a general consensus around the idea that aid can have positive effects at the micro and meso levels, recent studies, such as Rajan and Subramanian in 2008, argue that at the macro...
Research Brief
The question of whether aid is effective in promoting growth is a controversial one. Views range from those who are highly skeptical that aid has any effect on growth at all, to those who believe that aid can play a significant role in promoting economic development. In the WIDER Working Paper 'The...
Research Brief
Australia has a plan to double its Overseas Development Assistance (ODA) by 2015. To attain this goal identifying new channels through which aid can be delivered, and used, as effectively as possible is crucial. One example of this is an aid-delivery mechanism, based on a partnership with churches...
Research Brief
In 2008 Doucouliagos and Paldam published a paper, hereafter known as DP08, based on a meta-analytic approach to the aid-growth question. Working with a database including 68 studies on the relationship between foreign aid and economic growth they arrived at a pessimistic result. This is in line...
Research Brief
In the wake of the financial crisis of 2008 and 2009 interest in the supply side of the donor equation has been rekindled. During a period where the economies of many major donors are unstable, and in some cases, shrinking, it is important to understand the effect this will have on their supply of...
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