Vijaya Ramachandran is a senior fellow at the Center for Global Development. She works on private sector development in Africa and oversees CGD's work program on fragile states. Most recently, Vijaya's research has focused on the analysis of enterprise survey data in Africa, identifying the constraints to doing business from the perspective of the private sector; this work was published as a CGD book entitled Africa's Private Sector: What's Wrong with the Private Sector and What to Do About It. Vijaya served as rapporteur to the Africa Progress Panel in 2008 and continues to serve as a consultant to the Panel. Prior to joining CGD, Vijaya taught at Georgetown University and also worked at the World Bank and in the Executive Office of the Secretary-General of the United Nations. Her work has appeared in several media outlets including the Washington Post, Voice of America, and the Huffington Post. Vijaya earned her PhD in Business Economics from Harvard University in 1991.
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My guest this week is Vijaya Ramachandran, a senior fellow here at the Center for Global Development. Vij directs the Center’s research on fragile states—countries where, often due to recent or ongoing conflict, the basic functions of government are weak or nonexistent. These states present special challenges to aid donors and practitioners, both in planning how to give aid effectively and in delivering it.
Vij explains that learning how to respond to state fragility will hold benefits for development even in more functional states. “”We certainly have a set of countries that are a complete puzzle to policymakers, to development practitioners, to the foreign assistance community,” she explains. “But there are other countries that have weaknesses within them, elements of fragility. They might not be fragile overall, but they may have certain areas that are in need of assistance, or they may at different points in time present as cases that are representative of very weak states.”
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This paper examines how the lack of recognition of Somaliland by the international community—and the consequent ineligibility for foreign financial assistance—has shaped the region's political development. It finds evidence that Somaliland’s ineligibility for foreign aid facilitated the development of accountable political institutions and contributed to the willingness of Somalilanders to engage constructively in the state-building process.
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CGD senior fellow Vijaya Ramachandran testifies before the House Committee on Financial Services about the World Bank’s disclosure policy. Ramachandran urges policymakers to base future capital increases to all of the MDBs on their progress on project evaluation and product innovation.
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Why do so many businesses choose to remain informal? Vijaya Ramachandran and co-authors discover that the answer is more nuanced than often believed. In East Africa, for instance, the difference in productivity between formal and informal firms is often indistinguishable, while in Southern Africa productivity it is more differentiated. Policies to encourage formalization and increase productivity are likely to be more successful in East Africa, whereas an emphasis on job training and vocational skills might be more appropriate in Southern Africa..
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This CGD Brief, based on the book Africa's Private Sector by Vijaya Ramachandran, Alan Gelb, and Manju Kedia Shah, shows how investing in infrastructure and improving access to education can help bring about a broad-based business class in Africa.
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What's keeping private business from flourishing in Africa? On the basis of unique enterprise surveys, Vijaya Ramachandran and her co-authors identify poor roads and unreliable power as major physical challenges; ethnic segmentation and the economic predominance ethnic minorities further constrain the business environment. The author show how investing in infrastructure and improving access to education can help bring about a broad-based business class in Africa.
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The authors of this CGD working paper analyze what the principal bodies of global government—the Bretton Woods institutions and the UN, the G-20 and the OECD—would like if a country’s membership and roles were contingent upon objective criteria that would better balance representation and effectiveness. They find major disparities between the results of their analysis and the state of affairs today, and they point to the need for changes far more fundamental than the incremental tweaks now being considered.
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Director of the Center for Public Leadership at the John F. Kennedy School of Government at Harvard University, editor-at-large at U.S. News & World Report, and a senior political analyst for CNN, David Gergen joined CGD president Nancy Birdsall, and CGD senior fellows who authored essays in our recent book, The White House and the World: A Global Development Agenda for the Next U.S. President, for a lively discussion of the prospects for improved U.S. development policy under President Barack Obama.
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In this paper, witha foreword by senior fellow Vijaya Ramachandran, Benjamin Eifert of UC-Berkeley investigates the effects of regulatory reform by drawing on years of data across 90 countries. He discusses the characteristics of countries that choose to reform and the results of these reforms. The paper it contains valuable insights for policymakers and institutions focused on regulatory reform in weak states.
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In this video, Johns Hopkins University senior adjunct professor Peter Heller and Center for Global Development senior fellow Vijaya Ramachandran give a lecture on the importance of infrastructure in developing countries.
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The White House and the World: A Global Development Agenda for the Next U.S. President shows how modest changes in U.S. policies could greatly improve the lives of poor people in developing countries, thus fostering greater stability, security, and prosperity globally and at home. Center for Global Development experts offer fresh perspectives and practical advice on trade policy, migration, foreign aid, climate change and more. In an introductory essay, CGD President Nancy Birdsall explains why and how the next U.S. president must lead in the creation of a better, safer world.
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This paper examines how the lack of recognition of Somaliland by the international community—and the consequent ineligibility for foreign financial assistance—has shaped the region's political development. It finds evidence that Somaliland’s ineligibility for foreign aid facilitated the development of accountable political institutions and contributed to the willingness of Somalilanders to engage constructively in the state-building process.
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What's keeping private business from flourishing in Africa? On the basis of unique enterprise surveys, Vijaya Ramachandran and her co-authors identify poor roads and unreliable power as major physical challenges; ethnic segmentation and the economic predominance ethnic minorities further constrain the business environment. The author show how investing in infrastructure and improving access to education can help bring about a broad-based business class in Africa.
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Director of the Center for Public Leadership at the John F. Kennedy School of Government at Harvard University, editor-at-large at U.S. News & World Report, and a senior political analyst for CNN, David Gergen joined CGD president Nancy Birdsall, and CGD senior fellows who authored essays in our recent book, The White House and the World: A Global Development Agenda for the Next U.S. President, for a lively discussion of the prospects for improved U.S. development policy under President Barack Obama.
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The authors of this CGD working paper analyze what the principal bodies of global government—the Bretton Woods institutions and the UN, the G-20 and the OECD—would like if a country’s membership and roles were contingent upon objective criteria that would better balance representation and effectiveness. They find major disparities between the results of their analysis and the state of affairs today, and they point to the need for changes far more fundamental than the incremental tweaks now being considered.
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This CGD Brief, based on the book Africa's Private Sector by Vijaya Ramachandran, Alan Gelb, and Manju Kedia Shah, shows how investing in infrastructure and improving access to education can help bring about a broad-based business class in Africa.
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This paper ties together the macroeconomic and microeconomic evidence on the competitiveness of African manufacturing sectors. The conceptual framework is based on the newer theories that see the evolution of comparative advantage as influenced by the business climate—a key public good—and by external economies between clusters of firms entering in related sectors. Macroeconomic data from purchasing power parity (PPP), though imprecisely measured, estimates confirms that Africa is high-cost relative to its levels of income and productivity. This finding is compared with firm-level evidence from surveys undertaken for Investment Climate Assessments in 2000-2004.
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Africa receives only a tiny fraction of global investments in emerging markets. But the problem is not that fund managers are scared away by a seemingly steady stream of bad news out of Africa, nor is a general marketing of Africa to global investors the solution. Instead the authors of this new CGD working paper find that the small size of African markets and low levels of liquidity are a binding deterrent for foreign institutional investors. Drawing on firm surveys to explore why African firms remain small, the authors offer practical recommendations for increasing portfolio investment in Africa. Learn more
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Why do so many businesses choose to remain informal? Vijaya Ramachandran and co-authors discover that the answer is more nuanced than often believed. In East Africa, for instance, the difference in productivity between formal and informal firms is often indistinguishable, while in Southern Africa productivity it is more differentiated. Policies to encourage formalization and increase productivity are likely to be more successful in East Africa, whereas an emphasis on job training and vocational skills might be more appropriate in Southern Africa..
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International corporations interested in joining the fight against global poverty can choose from a wide range of options, according to a new CGD report released last week. The report, Joining the Fight Against Global Poverty: A Menu for Corporate Engagement, suggests six approaches for corporations to consider. Based on interviews with senior executives at 15 firms with global reach, it includes stories about what has worked (and what hasn't) and describes some of the advantages that companies have found in working for development.
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Peace-Building without External Assistance: Lessons from Somaliland - Working Paper 198
- Jan 11, 2010
This paper examines how the lack of recognition of Somaliland by the international community—and the consequent ineligibility for foreign financial assistance—has shaped the region's political development. It finds evidence that Somaliland’s ineligibility for foreign aid facilitated the development of accountable political institutions and contributed to the willingness of Somalilanders to engage constructively in the state-building process.
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To Formalize or Not to Formalize? Comparisons of Microenterprise Data from Southern and East Africa - Working Paper 175
- Jul 20, 2009
Why do so many businesses choose to remain informal? Vijaya Ramachandran and co-authors discover that the answer is more nuanced than often believed. In East Africa, for instance, the difference in productivity between formal and informal firms is often indistinguishable, while in Southern Africa productivity it is more differentiated. Policies to encourage formalization and increase productivity are likely to be more successful in East Africa, whereas an emphasis on job training and vocational skills might be more appropriate in Southern Africa..
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Africa's Private Sector: What's Wrong with the Business Environment and What to Do About It
- Mar 23, 2009
What's keeping private business from flourishing in Africa? On the basis of unique enterprise surveys, Vijaya Ramachandran and her co-authors identify poor roads and unreliable power as major physical challenges; ethnic segmentation and the economic predominance ethnic minorities further constrain the business environment. The author show how investing in infrastructure and improving access to education can help bring about a broad-based business class in Africa.
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A Fresh Look at Global Governance: Exploring Objective Criteria for Representation - Working Paper 160
- Feb 6, 2009
The authors of this CGD working paper analyze what the principal bodies of global government—the Bretton Woods institutions and the UN, the G-20 and the OECD—would like if a country’s membership and roles were contingent upon objective criteria that would better balance representation and effectiveness. They find major disparities between the results of their analysis and the state of affairs today, and they point to the need for changes far more fundamental than the incremental tweaks now being considered.
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The White House and the World: A Global Development Agenda for the Next U.S. President
- Aug 22, 2008
The White House and the World: A Global Development Agenda for the Next U.S. President shows how modest changes in U.S. policies could greatly improve the lives of poor people in developing countries, thus fostering greater stability, security, and prosperity globally and at home. Center for Global Development experts offer fresh perspectives and practical advice on trade policy, migration, foreign aid, climate change and more. In an introductory essay, CGD President Nancy Birdsall explains why and how the next U.S. president must lead in the creation of a better, safer world.
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Power and Roads for Africa: What the United States Can Do (White House and the World Policy Brief)
- Aug 22, 2008
Why should the United States care about economic growth in Africa? Because it is the right thing to do and the smart thing to do. Helping to spur economic growth in Africa promotes our values, enhances our security, and helps create economic and political opportunities for the people of the continent. Public interest in Africa is higher than ever—witness consumer movements such as Product Red—and bipartisan political
support recently renewed funding for the President’s Emergency Plan for AIDS Relief (PEPFAR). Several new opportunities now exist for U.S. firms to compete and benefit from a win-win partnership with the region.
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Power and Roads for Africa
- Mar 31, 2008
CGD senior fellow Vijaya Ramachandran argues in this essay that the next U.S. president can play a valuable role in helping Africa to overcome two crucial barriers to poverty reduction: lack of power and lack of roads. Ramachandran urges the next president to create a $1 billion Clean Energy Fund for Africa to facilitate the transfer of U.S. infrastructure technology, including renewable energy; and to encourage the World Bank and the African Development Bank to focus on cross-country regional infrastructure projects, also with a strong emphasis on clean technology. The essay is included in a forthcoming CGD volume: The White House and the World: A Global Development Agenda for the Next U.S. President.
Learn More
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L'etat c'est moi: Do State and Individual Donors Behave the Same?
- Oct 7, 2009
Until recently, most aid from rich to poor countries was transmitted through official bilateral and multilateral channels. However, the rapid growth in private development aid from foundations, charities, and philanthropic individuals raises a host of questions regarding the allocation of aid and its selectivity across recipient countries. Using data from private micro-lending institutions GlobalGiving and Kiva, authors Raj M. Desai and Homi Kharas analyze the lending preferences of private individuals in comparison to those of official aid agencies. Join us for a discussion of how private individuals donate to microcredit and grassroots projects, and how these aids flows are complementary to the goals of official development assistance.
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The World Bank's Good Governance and Anticorruption Agenda: From Rhetoric to Reality
- Jun 24, 2009
Good governance and anticorruption are central to the theories and practices of global development today. They are often considered to be the keys to holding inefficient governments accountable for their actions. In this discussion, Professor Catherine Weaver looks at the history of the Bank's governance and anticorruption agenda, the gap between rhetoric and reality, and the political and bureaucratic obstacles, both internal and external, that must be addressed in order for reforms to be implemented.
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Managing Global Insecurity: International Cooperation and Transnational Threats
- Jun 10, 2009
Among the many foreign policy issues confronted by the Obama
administration are these: major transnational threats that pose new
challenges to U.S. foreign policy; and a shifting balance of power that
create many new seats at the table. Just as cooperation with the
rising powers has been a key plank in handling the financial crisis,
forging effective cooperative relationships between the major and
rising powers to prevent transnational threats--among them biological
insecurity, nuclear proliferation, climate change, terrorism and
failed states--will be central to protecting U.S. national and global
security in the coming era.
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Africa’s Private Sector: What’s Wrong with the Business Environment and What to Do About It
- Mar 26, 2009
Why is the private sector yet to take off in much of sub-Saharan Africa? In Africa's Private Sector, Vijaya Ramachandran and her co-authors identify the biggest obstacles: inadequate infrastructure (especially unreliable electricity and crumbling roads) and burdensome regulations. The authors suggest investing in infrastructure and reforming regulations to lower the cost of doing business, and increasing the access to education for would-be entrepreneurs to help foster the emergence of a broader-based business class that crosses ethnic divides. Join us for a discussion of how foreign donors can help African businesses by supporting better roads and renewable energy systems.
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CGD Special Discussion with David Gergen on Obama's Global Development Policy
- Jan 16, 2009
Join Nancy Birdsall, David Gergen, and CGD senior fellows who are authors of essays in our newest book, The White House and the World: A Global Development Agenda for the Next U.S. President , for a lively discussion of the prospects for improved U.S. development policy under President Barack Obama.
As you know, David Gergen has been an influential participant in American public life for 30 years. A best-selling author and advisor to presidents Reagan, Nixon, Ford and Clinton, David is currently director of the Center for Public Leadership at the John F. Kennedy School of Government at Harvard University, editor-at-large at U.S. News & World Report, and a senior political analyst for CNN.
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How Much Do Demographic Factors Influence Infrastructure Demand in Developing Countries?
- Dec 15, 2008
Countries have tough choices to make over investing in different types of infrastructure. Do schools come first? What about irrigation and other agricultural needs so that populations can be fed? And they can't ignore the importance of roads, bridges, and other transportation in facilitating trade and markets for economic growth. Then there's energy, communication, and more. There will always be competing and urgent needs for both public and private infrastructure, and the age and growth rate of the population helps determine the priorities of those needs. This lecture examines how demographic variables affect the need for different infrastructure types, including urban, spatially connective, and regional infrastructure, and how well countries use demographic knowledge to influence their infrastructure investments. Sobering conclusions about the likelihood of meeting those needs are presented.
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From Poverty to Power: A Conversation with Oxfam GB’s Duncan Green
- Nov 19, 2008
In his new book From Poverty to Power, Oxfam GB's Duncan Green argues that there is now an added urgency beyond the moral case for tackling poverty and inequality: the need to build a secure, fair, and sustainable world before climate change makes it impossible. Leaders, organizations, and individuals need to act together, while there is still time. In what promises to be a lively, thoughtful discussion, Green will offer his unique insights into the human and economic costs of inequality and poverty, while also proposing realistic solutions to break the cycle of poverty and inequality and to give poor people power over their own destinies.
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Development Effects of Electricity: Evidence from the Geologic Placement of Hydropower Plants in Brazil
- Oct 21, 2008
We exploit quasi-random variation in hydro-power generation and transmission in Brazil in order to isolate of the causal effects of electricity grid expansion on changes in population density and GDP. Since hydro-power generation requires intercepting water at high velocity, there is a random component to households’ access to electricity in a country that relies heavily on hydro-power, as that access depends on the household’s proximity to rivers with a gradient suitable for hydro-electricity generation. This allows isolation of the causal component of the relationship between electrification and development outcomes. The most plausible interpretation of our findings is that local access to electricity does not cause increases in population density, but does cause increases in GDP per capita by raising worker productivity.
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