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USAID Modernization Efforts Amid Budget Cut Fever: Connie Veillette

Connie VeilletteIt’s been a busy time for Connie Veillette, director of the Rethinking US Foreign Assistance Initiative here at the Center for Global Development. Last week we hosted a major address by USAID Administrator Rajiv Shah describing the achievements of his first year in office and his ambitious plans for modernizing the agency. No sooner had Shah finished speaking than a group of Republican legislators proposed a budget cutting plan that would zero out USAID’s operating budget. I was eager to learn how Connie—an advocate for effective aid who spent much of her career working for Republicans on Capitol Hill—would assess these developments.

The Data is in, More Money = More Happiness: Justin Wolfers

Justin WolfersYou might not think you’d need a Ph.D. to figure out that people with more money are happier than people with less. Yet that relationship is surprisingly controversial and—not so surprisingly—highly relevant for development policy. This week’s Wonkcast features a young academic whose new work on subjective wellbeing, income and economic development is upending the conventional academic wisdom on happiness. Justin Wolfers, a visiting fellow at Brookings and associate professor at the Wharton School, spoke last week at a Massachusetts Avenue Development Seminar (or MADS), a series of events that CGD hosts in cooperation with The Paul H. Nitze School of Advanced International Studies. (You can sign up for invitations to future MADS here www.cgdev.org/subscribe under ‘other subscriptions’).

Leapfrogging Technology, the Case for Biometrics: Alan Gelb

Alan GelbIn developed countries, official identification systems are a fact of life, providing the foundation for a myriad of transactions including elections, pension payments, and the legal system. Without functional ID systems, citizens of many developing countries miss out on the benefits of official identification. On this week’s Wonkcast, I am joined by CGD senior fellow Alan Gelb who has been researching the potential for new biometric technology, such as computerized finger printing and iris scans, to help poor countries leapfrog the long and complicated process of setting up ID systems.

In our conversation, Alan explains the depth of the problem in the developing world. “In most rich countries there are already identity systems that work more or less well,” he says. “In many poor countries, not only is there no consistent identity system but at least half of the people don’t have records of birth at all. They simply don’t exist.”

The Year Ahead in Global Health at CGD: Amanda Glassman

Amanda GlassmanTo mark the start of the new year, my guest is Amanda Glassman, CGD’s new director of global health. I asked Amanda, who previously worked at the Inter-American Development Bank, the Brookings Institution, and USAID, where she sees opportunities for progress on global health in 2011 and beyond.

Amanda summarizes her priorities for CGD’s global health program with two big questions. First, how can donors deploy their global health aid budgets (more constrained than ever) to have the greatest impact on health in poor countries? Second, how can these same donors help poor countries and poor people use their own resources more effectively?

The 2000s Were the Best Decade Ever? Development Optimist Charles Kenny

Charles KennyMany of us may be glad to be rid of the Naughts, a decade perhaps destined to be remembered for global terrorism, U.S. wars in Iraq and Afghanistan, and a global financial crisis that threatened a second Great Depression but left the rich world instead with a lingering Great Recession. My guest this week argues that the departing decade is unfairly maligned. Charles Kenny recently joined the Center for Global Development as a senior fellow. In a piece published in Foreign Policy magazine, he argues that the 2000s were the best decade in history.

The Global Implications of India's Microcredit Crisis (Event Video)

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 reports of microcredit-linked suicides, the state has urged borrowers to stop repaying, and millions have heeded the call. Bankruptcies of some of the world’s largest microcreditors are now a realistic possibility.

What is the reality of microcredit in India? Is the backlash an engineered campaign to protect a government-run (and World Bank–financed) finance program from private-sector competition? Or has the fast growth in credit ensnared the poor in debt? Some of each?

And what lessons does the crisis hold for actors worldwide, including microfinance institutions and investors ranging from the World Bank to Kiva users? When is microcredit—and investment in it—too much of a good thing?

Who Gets the Debt If Sudan Splits? Ben Leo

A 2011 referendum in Southern Sudan will determine the sub-nation’s independence – and it’s just one month away. Ahead of the South’s possible secession, Sudanese leaders are scrambling to find solutions to a host of questions, a critical one being: What should be done with Sudan’s crushing $35 billion external debt burden? I’m joined on this Wonkcast by Ben Leo, a research fellow here at the Center for Global Development, who has just published a CGD working paper which outlines potential scenarios for post-referendum debt division between the Khartoum government in the north and an independent Southern Sudan. On the Wonkcast, Ben explains how debt complicates the landscape for splitting Sudan and outlines a range of possible approaches to a viable solution.

Unpacking India’s Microfinance Meltdown: David Roodman

David RoodmanA 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 book Due Diligence: A Guide to Microfinance (which he has shared step by step on his Open Book Blog). David recently traveled to Andhra Pradesh, the epicenter of the crisis. On the Wonkcast, he leads me through the story of the explosive growth of Indian microcredit-- and its sudden fall from grace.

U.S. Development Policy in the Next Congress: Sarah Jane Staats

Sarah Jane StaatsWhat does the new makeup of Congress mean for global development looking forward? My guest this week is Sarah Jane Staats, director of policy outreach here at the Center for Global Development. Sarah Jane is responsible for engaging the development policy community—especially senior staff in the U.S. Congress, the administration and policy experts in leading development advocacy NGOs—in the Center’s research and other programs.

In this Wonkcast, Sarah Jane starts by explaining that, “the first big takeaway with the elections is that they were really not about foreign policy.” Because domestic issues drove the rhetoric of the candidates this election cycle, even the foreign policy positions of some freshman Congressmen are still unknown. Thirty nine of the sixty new House Republicans align themselves with the Tea Party, a group with no clear foreign policy agenda, much less a unified view about whether and how to engage developing countries.

Five CGD Experts on the Seoul G-20 Summit

G-20 SeoulG-20 leaders gathering in Seoul this week face a full plate of issues, most prominently the effort to stave off beggar-thy-neighbors currency devaluations. This week on the Global Prosperity Wonkcast, we've distilled highlights from a private briefing I organized where five CGD experts shared their views on key issues facing the G-20, and their implications for poor people not represented at the table. Snippets below—listen to the full 30-minute Wonkcast for the rest of the story or scroll to the bottom of this page for full event video. If you'd like a bit of historical background on the G-20 and how it came into its current role, listen to my introductory remarks (they're about 6 minutes long) that give some context for the rest of the discussion.

Non-Communicable Diseases a Huge Problem in Developing World (Interview with Rachel Nugent)

Rachel NugentHeart disease, high blood pressure, diabetes and cancers are usually considered diseases of the rich world, the result of too much food and too little exercise. But these serious diseases are already a huge problem in the developing world, accounting for about half of the burden of disease. Yet new research from the Center for Global Development has found that barely 3% of foreign aid and philanthropic spending for developing world health addresses these often overlooked diseases.

My guest this week is the lead author of that research, Rachel Nugent, CGD deputy director of global health. In a forthcoming working paper co-authored with Andrea Feigl – Scarce Donor Funding for Non-Communicable Diseases: Will it Contribute to a Health Crisis? – Rachel examines the impact of non-communicable diseases in the developing world and assesses the response of international donors. In the Wonkcast, we discuss her findings and recommendations for addressing this challenge.

U.S. Development Strategy in Pakistan After the Floods: Molly Kinder

Molly KinderAs if Pakistan needed more troubles, this summer’s catastrophic flooding stretched the capacity of that country’s civilian government to the breaking point. How can the United States act to shore up a key ally and put a strategically critical country back on the path towards development and stability? My guest this week is Molly Kinder, a senior policy analyst here at the Center for Global Development. Together with CGD president Nancy Birdsall, she spearheads the Center’s initiative that looks specifically at U.S. development policy in Pakistan and recommends how it might be more effective. Wren Elhai, who oversees the production of the Wonkcast and helps me by drafting these posts, also contributes to our Pakistan initiative, as a writer and analyst.

Evaluating the Millennium Villages: Michael Clemens and Gabriel Demombynes

An aquaculture project in Bar Sauri, Kenya.In development, it's good to try new, innovative ideas-- but even better to know whether or not they work. My guests this week are Michael Clemens, senior fellow at the Center for Global Development, and Gabriel Demombynes, a senior economist at the World Bank, based in Nairobi, Kenya. They have written a new paper in which they argue that one very high profile development program, the Millennium Villages Project, isn’t being evaluated in a way that would provide clear evidence of its impacts. They propose a better way to evaluate the project.

Good Aid? Bad Aid? QuODA Tracks How Donors Stack Up

QUODADonors, academics, and development advocates have long recognized that not all aid is created equal. Often, the impacts of aid are blunted because it’s spent in the wrong places or isn’t coordinated with recipient government programs. How can we know which donors give aid well, and which donors need to improve? My guests on this week’s Wonkcast are Nancy Birdsall, president of the Center for Global Development, and Homi Kharas, deputy director of the Brookings Institution’s Global Economy and Development program. They are the co-creators of the Quality of Official Development Assistance (QuODA) assessment, a new tool that tracks and compares donor programs against four dimensions of aid quality.

Tempered Optimism on New U.S. Development Policy: Connie Veillette

After months of study, work, negotiation and anticipation, the Obama administration has announced its development policy. What’s new here and what are the chances of implementation? To find out, I chatted with Connie Veillette, who has recently joined the Center for Global Development as director of our Rethinking U.S. Foreign Assistance program. Connie comes to us from Capitol Hill, where she spent many years with the Congressional Research Service and worked most recently as a senior professional staff member on the Senate Foreign Relations Committee minority staff, specializing in U.S. foreign assistance and USAID.

What’s Not to Like About the Millennium Development Goals?

MDGsLeaders from around the world meet in New York City next week to review progress towards the Millennium Development Goals, a list of development targets set in 2000, after a decade of UN conferences and summits, for achievement by 2015. Ahead of the MDG Summit, I spoke with Michael Clemens and Todd Moss, senior fellows at the Center for Global Development and outspoken critics of the design and implementation of the MDGs. On the Global Prosperity Wonkcast, we discuss where Todd and Michael think that the MDG effort went wrong, and how it could be better going forward.

Can Oil Money Be Spent Well? Alan Gelb on Resource Revenues and Development.

Alan GelbMany developing countries have found that large deposits of oil or other natural resources are more a curse than a blessing. My guest on this week's Wonkcast is Alan Gelb, a senior fellow at the Center for Global Development. Together with co-author Sina Grassman, Alan has written a paper that explores the options facing developing countries with abundant natural resources and draws on historical evidence to recommend best practices for dodging the 'resource curse.'

We begin with a discussion of that curse. Alan explains the various problems that accompany oil revenues. Most obviously, that money is easy to misdirect and can often end up fueling corruption. But even for honest and well-intentioned leaders, oil money still presents special headaches. The extreme volatility of oil prices, which can vary by hundreds of percent from one year to the next, make it exceedingly difficult to plan national budgets. The trick is to stock away money in boom oil years to smooth spending in bust years—not easy even when small surpluses are involved. "Clearly you've got to save," Alan explains. But to flatten the boom-bust revenue cycle, "the typical producer may have to save an equivalent of its whole GDP."

HIV/AIDS Donors and Africa’s Health Workforce: Nandini Oomman

Nandini OommanMy guest this week is Nandini Oomman, director of the Center for Global Development’s HIV/AIDS Monitor. Her team has just released a new report, Zeroing In: AIDS Donors and Africa’s Health Workforce, which looks at how AIDS programs could be better designed to strengthen the capacity of nurses and doctors in developing countries. On the Wonkcast, Nandini and I discuss the report, and also explore the overall lessons learned from the HIV/AIDS Monitor, which is wrapping up its work this year after four years of operation.

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