Photo: Dominic Chavez / International Finance Corporation
In the early 1990s, Colombia’s road infrastructure was a maze of poorly maintained roads and bad highways. Difficult geography—the Pacific coast jungle and the Andes branching out into three chains—made it harder to improve road conditions and connect isolated communities. Conflict, corruption, and short-term political priorities contributed to the problems plaguing Colombia’s road system. But just as influential were the problems with the nation’s existing concession contracts that had wrong incentives, created opportunities for renegotiating signed contracts, and assigned unproportioned demand risk to the Government of Colombia.
Of the 173 economies surveyed by Women, Business and the Law, about 100 economies restrict non-pregnant and non-nursing women from pursuing the same economic activities as men. These countries include quite a handful of economies of the former Soviet Union, which, despite their largely gender neutral legal framework, impose legal restrictions on women’s work, such as prohibitions on working in certain industries and/or working at night.
- Duncan Green summarizes Stefan Dercon’s view of 10 top thinkers in development. E.g. on Acemoglu and Robinson “their policy advice is just ‘buy yourself a better history/don’t start from here’. Not very useful for aid”. Alice Evans responds to the lack of women on Stefan’s list with five big problems in development and female scholars to learn from on these.
- How did Chinese consumption respond to changes in the minimum wage? Dautovic and co-authors on VoxEU report that “For the period 2002-2009, we identify more than 13,874 changes in the local minimum wage across China's 2,183 counties and 285 cities…many counties experienced substantial nominal increases in their minimum wage above 20%...we show that low-income households spend their entire additional income from a higher minimum wage…for poorer households, 40% of the additional minimum wage income is spend on health care and educational expenditure”
- Looking to try out machine learning for poverty prediction? The World Bank has launched a competition (with prize money) to see how well you can predict poverty.
- development impact links
Urbanization in Rwanda has contributed to poverty reduction in Rwanda, but its potential could be realized more fully with better connectivity in terms of roads and transport, according to our findings in a new report, Reshaping Urbanization in Rwanda: Economic and Spatial Trends and Proposals.
This reduction in Multi-Dimensional Poverty (MDP) was fairly consistent across the country, though graphically it is clear that areas around the capital, Kigali, and lying closer to or on Rwanda’s borders with other countries have experienced the strongest amount of improvement (Figure 1), with some areas bordering Uganda and most areas bordering the Democratic Republic of the Congo (DRC) along Lake Kivu showing the most visible signs of improvement.
Exponential progress in how we collect, process and use data is fundamentally changing our societies and economies. But the new digital economy depends fundamentally on a very physical enabler. Amazon and Alibaba would not exist without efficient ways to deliver products worldwide, be it by road or ship or drone. The job you applied for through Skype may require travel to London or Dubai, where you’ll expect to get around easily.
In fact, as the backbone of globalization, digitization is increasing the need to move people and goods around the planet. Mounting pressure on transportation as economies grow is leading to unsustainable environmental and safety trends. Transport needs are increasingly being met at the cost of future generations.
Can the digital revolution, which depends so much on efficient global and local mobility, also help us rethink transportation itself? To be a part of the solution to issues such as climate change, poverty, health, public safety, and the empowerment of women, the answer must be yes. Transport must go beyond being an enabler of the digital economy to itself harnessing the power of technology.
- Transforming Transportation
- sustainable transport
- sustainable mobility
- Sustainable Communities
- Urban Development
- Public Sector and Governance
- Private Sector Development
- Law and Regulation
- Labor and Social Protection
- Information and Communication Technologies
- Global Economy
- Climate Change
The term “connectivity” is familiar to most of us, even if we don’t think about it much. When we bemoan the shortcomings of the mobile network in our neighborhood or thank the barista for the free and unexpectedly fast WIFI at our favorite coffee bar, we’re acknowledging the place connectivity has in our lives.
But connectivity also plays a larger, global role—one that links communities, economies, and countries through transport, trade, communications, energy, and water networks. In this broader form, it’s known as global infrastructure connectivity, and it boasts a special super power: the ability to catalyze infrastructure development.
A major factor hindering infrastructure implementation and delivery is the absence of good governance, according to the 130 delegates from 27 countries who came together for the first Regional Roundtable on Infrastructure Governance in Cape Town in November.
There’s no denying infrastructure is crucial to Africa’s growth prospects. Nor can one ignore the ever-growing need for infrastructure on the continent—in Sub-Saharan Africa, only 35% of the population has access to electricity, and 23% still lack access to safe water and sanitation. Despite an estimated shortfall of nearly $100 billion in infrastructure investment in Africa, lack of financing is not the biggest problem.
The landmark Roundtable brought together representatives from African governments, the global private sector, multilateral and international organizations, civil society organizations and other development partners, for a discussion on the challenges and practical solutions to the governance impeding successful infrastructure delivery in Africa.
Artisanal mining has a terrible reputation. A widespread perception is that this low-tech and labor-intensive way to extract natural resources “may cause severe environmental and health risks, conﬂict and generally few economic beneﬁts.” Yet an estimated 40.5 million (+/- 25%) people around the world are directly working in these mines. What persuades them to do so?
Our Top Ten blog posts by readership in 2017. This post was originally posted on April 24, 2017.
My Exfam colleague Kate Raworth’s book Doughnut Economics is launched today, and I think it’s going to be big. Not sure just how big, or whether I agree with George Monbiot’s superbly OTT plug comparing it to Keynes’s General Theory. It’s really hard to tell, as a non-economist, just how paradigm-changing it will be, but I loved it, and I want everyone to read it.
Down to business – what does it say? The subtitle, ‘Seven Ways to Think Like a 21st Century Economist’, sets out the intention: the book identifies 7 major flaws in traditional economic thinking, and a chapter on each on how to fix them. The starting point is drawings – working with Kate was fun, because whereas I think almost entirely in words, she has a highly visual imagination – she was always messing around with mind maps and doodles. And she’s onto something, because it’s the diagrams that act as visual frames, shaping the way we understand the world and absorb/reject new ideas and fresh evidence. Think of the way every economist you know starts drawing supply and demand curves at the slightest encouragement.Her main target is GDP (the standard measure of national economic output), and its assumptions – an open systems approach to economics that ignores planetary boundaries as it promotes economic growth. Her breakthrough moment while at Oxfam was coming up with ‘the doughnut’ – two concentric rings representing the planetary ceiling and minimum standards for all human beings. The ‘safe and just space’ between the two rings is where our species needs to be if it wants to make poverty history without destroying the planet.
When Kate came up with the doughnut in a highly influential 2012 paper for Oxfam, my non-visual mind failed to grasp its full value. After all, wasn’t this just a restatement of the idea of sustainable development? But it went viral, especially at the UN, because it allowed activists and policy makers to visualize both the threats and how they were trying to overcome them.
Global banks had rapidly expanded their lending activities abroad before the global financial crisis, during the 1990s and early 2000s. Between 1991 and 2007, the volume of syndicated loan issuances a year by nonfinancial corporations increased more than seven times in high-income countries and more than eight times in developing ones (figure 1). However, the global financial crisis (GFC) hit global banks in the developed world especially hard, which reacted by reducing their cross-border lending activities worldwide.
Figure 1. Issuance Activity in Syndicated Loan Markets, 1991–2014
Source: SDC Platinum.