Recent Research
Senior Fellow
Microfinance, foreign aid, Commitment to Development Index, debt and debt relief
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Education: B.A. in theoretical mathematics, Harvard College, magna cum laude, Phi Beta Kappa, 1990.
David Roodman is a senior fellow at the Center for Global Development focusing on microfinance, debt relief, and climate change. His book Due Diligence asks bottom-line questions about what we know about the benefits of microfinance, and what that implies for how it should be supported. He wrote the book through a pathbreaking Microfinance Open Book Blog, where he shared questions, discoveries, and draft chapters.
Roodman has been architect and manager of the Commitment to Development Index since the project's inception in 2002. The Index ranks the world's richest countries based on their dedication to policies that benefit the 5 billion people living in poorer nations; it is widely recognized as the most comprehensive measure of rich-country policies towards the developing world.
Roodman has written several papers questioning the capacity of common cross-country statistical techniques to shed light on what causes economic development. He co-authored a 2004 American Economic Review paper that challenged findings of World Bank research that aid works in a good policy environment. His non-technical Guide for the Perplexed builds on analysis of methodological problems and fragility in other studies. Among econometricians Roodman is best known for his computer program xtabond2, which implements the Arellano-Bond and Blundell-Bond generalized method of moments estimators. xtabond2 is one of the most downloaded add-ons ever for the commercial statistics program Stata. In 2011, Roodman ranked in the top 10 on the RePEc list of top young economists in the world.
Roodman previously worked at the Worldwatch Institute, where he wrote three monographs on environmental issues, and one on debt, Still Waiting for the Jubilee: Pragmatic Solutions for the Third World Debt Crisis. He authored the book The Natural Wealth of Nations: Harnessing the Market for the Environment, which Foreign Affairs called "required reading for legislators around the world.” The Japanese edition garnered him a selection as one of "The Outstanding Young Persons" of 2003 by the Osaka Junior Chamber, which led to an audience with the Emperor and Empress.
Roodman spent academic year 1998–99 on a Fulbright in Vietnam. He has never taken a course in economics or statistics.
New
Popular
Working Papers Books Other CGD Pubs Events Selected Works
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Microfinance has been whiplashed by the hype cycle. Where it once was seen as a powerful treatment for poverty, recent headlines have favored phrases such as “borrower revolt,” “doesn’t work after all,” and “suicide.” What to make of this cacophony? David Roodman seeks the...
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David Roodman he offers practical recommendations to those involved
in providing microfinance services, including donors, social investors,
and microfinance leaders.
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My guest on this week’s Wonkcast is David Roodman, senior fellow and author of the long-awaited book, Due Diligence: An Impertinent Inquiry into Microfinance. After more than three years of unprecedented investigation into the movement, David was able to cut through the hype and come to...
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Readers of David Roodman's Microfinance Open Book Blog will immediately recognize his thorough, straightforward, and trenchant analysis of whether microfinance is the boon many think it is.
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How well did the 22 rich countries that belong to the OECD Development Committee (OECD-DAC) perform in terms of supporting development in 2011? In this week’s Wonkcast, my guest David Roodman, architect of the Commitment to Development Index (CDI), explains some surprising results of the newly...
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The Commitment to Development Index ranks 22 of the world’s richest countries on their dedication to policies that benefit the 5.5 billion people living in poorer nations. Moving beyond standard comparisons of foreign aid volumes, the CDI quantifies a range of rich-country policies that affect...
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Mohammed Yunus has been forced by a Bangladesh court to step down as the head of the Grameen Bank, leaving the world to wonder what will become of the institution that helped inspire the microfinance revolution. On this week’s Wonkcast, we consider the rise and uncertain future of...
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The largest crisis in the history of microfinance is now unfolding in India. After five years of growth so fast it has been described as “indescribable,” and after a lucrative initial public offering (IPO) by the leading firm, the government of the state of Andhra Pradesh has cracked down. Amid...
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A crisis is unfolding in India's microcredit sector that-- beyond its immediate effects on borrowers and lenders-- will greatly affect the future of financial services for the poor. I'm joined by David Roodman, senior fellow here at the Center for Global Development and author of the forthcoming...
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In this two-minute 2006 video clip, CGD’s David Roodman explains the purpose and approach of the Commitment to Development Index, which ranks how well rich countries support development across seven different policy areas. Moises Naim, then editor-in-chief of Foreign Policy Magazine; and...
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Readers of David Roodman's Microfinance Open Book Blog will immediately recognize his thorough, straightforward, and trenchant analysis of whether microfinance is the boon many think it is.
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The Commitment to Development Index ranks 22 of the world’s richest countries on their dedication to policies that benefit the 5.5 billion people living in poorer nations. Moving beyond standard comparisons of foreign aid volumes, the CDI quantifies a range of rich-country policies that affect...
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CGD fellow David Roodman and Jonathan Morduch a landmark evaluation of the impact of microcredit on poor households in Bangladesh. They replicate the study's statistical analysis and put an end to the controversy surrounding it by showing that it fails to rule out reverse causation. A positive...
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David Roodman he offers practical recommendations to those involved
in providing microfinance services, including donors, social investors,
and microfinance leaders.
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This working paper by CGD research fellow David Roodman provides an original synthesis and exposition of the literature on a particular class of econometric techniques called "dynamic panel estimators," and presents the first implementation of some of these techniques in Stata, a statistical...
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The Burnside and Dollar (2000) finding that aid raises growth in a good policy environment has had an important influence on policy and academic debates. We conduct a data gathering exercise that updates their data from 1970-93 to 1970-97, as well as filling in missing data for the original period...
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*REVISED Version May 2008In development economics, statistical analysis usually begins with data from many observational units--households, companies, or countries--over just a few time periods. Two analysis techniques are becoming popular for studying causal relationships among variables in this...
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David Roodman, creator of the Commitment to Development Index (CDI), has devised a measure of foreign aid flows that takes into account the interest payments that developing countries make to rich country creditors. The Net Aid Transfers data set, which is a component of the CDI, is now available...
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Microfinance is a widely celebrated strategy for helping poor people in the developing world. Leading microfinance institutions, including the Nobel Peace Prize-winning Grameen Bank, reach millions of clients. CGD research fellow David Roodman and Uzma Qureshi analyze why some microfinance...
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In this working paper, CGD research fellow David Roodman describes the methodology of the foreign aid component of the 2011 edition of the Commitment to Development Index. The CDI ranks 22 of the world’s richest countries
on their dedication to policies that benefit the 5.5 billion people living...
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A Note on the Theme of Too Many Instruments - Working Paper 125
- Aug 13, 2007
*REVISED Version May 2008In development economics, statistical analysis usually begins with data from many observational units--households, companies, or countries--over just a few time periods. Two analysis techniques are becoming popular for studying causal relationships among variables in this...
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Microfinance as Business - Working Paper 101 (Revised November 2006)
- Oct 13, 2006
Microfinance is a widely celebrated strategy for helping poor people in the developing world. Leading microfinance institutions, including the Nobel Peace Prize-winning Grameen Bank, reach millions of clients. CGD research fellow David Roodman and Uzma Qureshi analyze why some microfinance...
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Competitive Proliferation of Aid Projects: A Model - Working Paper 89
- Jun 26, 2006
When aid projects proliferate, donors often seek better oversight through smaller projects. While this may improve administration, it burdens recipient governments with reporting requirements and donor visits. CGD research fellow David Roodman suggests in a new working paper that big projects are...
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Aid Project Proliferation and Absorptive Capacity -Working Paper 75
- Jan 11, 2006
At a time when the international dialogue surrounding development is focused on increasing the quantity of aid, this paper focuses on how each dollar of foreign assistance can be more effective in reducing poverty. Using a sophisticated mathematical modeling process, the author explores the...
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An Index of Donor Performance - Working Paper 67 (Revised October 2011)
- Sep 1, 2005
In this working paper, CGD research fellow David Roodman describes the methodology of the foreign aid component of the 2011 edition of the Commitment to Development Index. The CDI ranks 22 of the world’s richest countries
on their dedication to policies that benefit the 5.5 billion people living...
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An Index of Donor Performance - Working Paper 42
- Jun 22, 2004
The Commitment to Development Index of the Center for Global Development rates 21 rich countries on the “development-friendliness” of their policies. It is revised and updated annually. In the 2004 edition, the component on foreign assistance combines quantitative and qualitative measures of...
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New Data, New Doubts: Revisiting "Aid, Policies, and Growth" - Working Paper 26
- Feb 27, 2003
The Burnside and Dollar (2000) finding that aid raises growth in a good policy environment has had an important influence on policy and academic debates. We conduct a data gathering exercise that updates their data from 1970-93 to 1970-97, as well as filling in missing data for the original period...
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Commitment to Development Index 2011
- Nov 1, 2011
The Commitment to Development Index ranks 22 of the world’s richest countries on their dedication to policies that benefit the 5.5 billion people living in poorer nations. Moving beyond standard comparisons of foreign aid volumes, the CDI quantifies a range of rich-country policies that affect...
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Commitment to Development Index 2010
- Nov 4, 2010
The Commitment to Development Index (CDI) ranks 22 of the world’s richest countries on their dedication to policies that benefit the five billion people living in poorer nations. Moving beyond standard comparisons of foreign aid volumes, the CDI quantifies a range of rich country policies that...
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The Arc of the Jubilee
- Oct 26, 2010
The Jubilee 2000 movement, which called for the cancellation of the foreign debts of the poorest nations, became one of the most successful international, nongovernmental movements in history. David Roodman provides thumbnail assessments of Jubilee 2000 from several perspectives, deemphasizing...
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Introduction to Microfinance for Development, Georgetown University (Syllabus)
- Dec 7, 2009
This course explores the role of microfinance in economic development. It will discuss how poor people in poor countries use financial services such as credit and savings; the history and practice of delivering such services; what is known about their contribution to development; and how stories...
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Commitment to Development Index 2009
- Oct 22, 2009
The 2009 Commitment to Development Index ranks 22 of the world's richest countries on their dedication to policies that benefit the five billion people living in poorer nations. Moving beyond simple comparisons of foreign aid, the CDI ranks countries on seven themes: quantity and quality of foreign...
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The 2008 Commitment to Development Index: Components and Results
- Dec 4, 2008
This CGD brief summarizes the results of the 2008 Commitment to Development Index (CDI), which ranks 22 of the world's richest countries on their dedication to policies that benefit the five billion people living in poorer nations. The Netherlands comes in first on the 2008 CDI on the strength of...
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Net Aid Transfers data set (1960-2009) - Updated January 28, 2011
- Jan 25, 2008
David Roodman, creator of the Commitment to Development Index (CDI), has devised a measure of foreign aid flows that takes into account the interest payments that developing countries make to rich country creditors. The Net Aid Transfers data set, which is a component of the CDI, is now available...
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The Commitment to Development Index 2007 Report
- Oct 25, 2007
Each year since 2003, the Commitment to Development Index (CDI) has ranked 21 rich countries on their dedication (or not!) to policies that benefit the five billion people living in poor countries. The CDI moves beyond simple comparisons of aid funding and in so doing embodies the mission of CGD,...
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The 2007 Commitment to Development Index: Components and Results
- Oct 10, 2007
This CGD brief summarizes the results of the 2007 Commitment to Development Index (CDI), which ranks 21 of the world's richest countries on their dedication to policies that benefit the five billion people living in poorer nations. The Netherlands comes in first on the 2007 CDI on the strength of...
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Rich Country Tariffs and Subsidies: Let's Do the Numbers
- Dec 13, 2005
The ninth negotiating round, named the "Doha" Round for the city in Qatar where it was launched, has proven to be unique, because many developing countries are flexing their political muscle as never before. As a result, the Doha Round seems destined to fail unless rich countries cut the trade...
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2005 Commitment to Development Index
- Aug 29, 2005
The Commitment to Development Index (CDI) of the Center for Global Development ranks 21 of the world’s richest countries by evaluating their stance on seven domains of government policy to determine how those policies affect developing countries. This brief summarizes the components and results...
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Anarchy of Numbers data set
- Jul 1, 2004
CGD working paper 32, "The Anarchy of Numbers: Aid, Development, and Cross-country Empirics" submits seven aid-growth studies to robustness testing and finds that most are fragile. The data used in the paper are in Excel (data set) and Stata formats (4-year and 5-year aggregates). Full results...
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Aid, Policies, and Growth data set
- Feb 27, 2003
CGD working paper 26, "New Data, New Doubts: Revisiting "Aid, Policies, and Growth" by CGD non-resident fellow William Easterly, research fellow David Roodman, and Ross Levine (also published as "Aid, Policies, and Growth: Comment" in the American Economic Review, June 2004), concludes that the...
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Debate: Moving Financial Inclusion Beyond Microfinance
- Jan 30, 2012
Debate: Moving Financial Inclusion Beyond Microfinance
Hosted by The United States Agency for International Development and the Financial Inclusion Forum of D.C.
January 30, 2012
9:00am - 11:00am
Presenter(s):
David Roodman
Center for Global Development
Milford Bateman
University...
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Due Diligence: An Impertinent Inquiry into Microfinance
- Jan 5, 2012
The Center for Global Development and Consultative Group to Assist the Poor present
Due Diligence: An Impertinent Inquiry into Microfinance
Featuring the Author
David Roodman
Senior Fellow
Center for Global Development
Introductory Remarks by
Nancy...
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The Global Implications of India's Microcredit Crisis
- Dec 9, 2010
On Thursday, December 9, 2010 The Center for Global Development was pleased to host The Global Implications of India’s Microcredit Crisis. The event featured presentations by David Roodman, Senior Fellow at the Center for Global Development; Stephen Rasmussen, Technology Program...
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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...
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