Ideas to Action:

Independent research for global prosperity

Publications

 

Resolving Nigeria's Debt Through a Discounted Buyback

4/1/05

Nigeria has $33 billion in external debt. The government has been trying unsuccessfully for years to cut a deal with creditors to reduce its external obligations but to date has only managed to gain non-concessional restructuring. The major creditors also have good reasons for wanting to seek a resolution, yet agreement has been elusive. Fortunately, there is a brief window of opportunity in 2005 to find a compromise that can meet the needs of both sides. This note briefly outlines a proposal for striking such a deal through a discounted debt buyback.

Gold for Debt: What's New and What Next?

4/1/05
John Williamson

This new CGD Note by Center for Global Development President Nancy Birdsall and Institute for International Economics Senior Fellow John Williamson argues that sale of a portion of IMF gold makes sense as a way to create a more transparent institution and use a global resource for debt relief for the world’s poorest countries.

Big Sugar and the Political Economy of US Agricultural Policy

4/1/05
Kimberly A. Elliott

Sugar is a prototypical case of a policy that favors the few at the expense of the many. Thanks to a government policy that supports prices by sharply restricting imports, a small number of American sugar cane and beet growers are enriched at the expense of US consumers and of more efficient foreign growers, most of whom are in poorer developing countries.

Overcoming Stagnation in Aid-Dependent Countries

3/31/05

In this book, Nicolas van de Walle identifies 26 countries that are extremely poor and grew little if at all in the 1990s. His sample excludes North Korea and countries where civil war explains some of their failure to grow (Afghanistan, Sierra Leone, Sudan, Tajikistan and others). The 26 countries have limited infrastructure and human capital and the small size of their markets deter private savings and investment. Aid was meant to help overcome these problems, and these countries received a lot. Yet they have failed to grow. What is wrong? Is foreign aid a solution or part of the problem? What changes might make aid more effective? Given these countries require the financial and technical resources of the West, why haven’t aid programs made a difference?

Overcoming Stagnation in Aid-Dependent Countries - Brief

3/23/05

Traditional economic theory predicts that capital mobility and international trade will push the world's national economies to one income level. As poorer nations race ahead, richer ones should slow down. Eventually, theory says, national economies would reach equilibrium. The reality of the last few decades, however, defies this notion; most of the poorest economies continue to lag far behind. For 50 years, foreign aid has been the main way the international community has promoted economic development. Yet it has not proven to be a silver bullet.

No Child Left Behind-Anywhere

3/3/05

"No Child Left Behind" could move from a national program to a global mission if several current policies and initiatives converge: the Education for All Fast Track Initiative, the U.S. Millennium Challenge Account, and the renewed declarations of the Bush administration, supported by U.S. public opinion.

Double Standards on IDA and Debt: The Case for Reclassifying Nigeria

3/1/05
Todd Moss and Scott Standley

Although nearly all poor countries are classified by the World Bank as IDA-only, Nigeria stands out as a notable exception. Indeed, Africa’s most populous country is the poorest country in the world that is not classified as IDA-only. Under the World Bank’s own criteria, however, Nigeria has a strong case for reclassification. IDA-only status would have two potential benefits for Nigeria. First, it would expand Nigeria’s access to IDA resources and make the country eligible for grants. Second, it would strengthen Nigeria’s case for debt reduction. With a renewed economic reform effort getting under way and the emerging use of debt reduction as a tool for assisting economic and political transitions, the UK, the US, and other official creditors should support such a move as part of a broader strategy for encouraging progress in one of Africa’s most important countries.

A Better Globalization: Legitimacy, Governance, and Reform

3/1/05
Kemal Dervis and Ceren Özer

A Better Globalization: Legitimacy, Governance, and Reform by Kemal Dervis is a reformist manifesto that argues that gradual institutional change can produce beneficial results if it is driven by an ambitious long-term vision and by a determination to continually widen the limits of the possible.

On the Road to Universal Primary Education

2/28/05

Education is an end in itself, a human right, and a vital part of the capacity of individuals to lead lives they value. It gives people in developing countries the skills they need to improve their own lives and to help transform their societies. Women and men with better education earn more throughout their lives and participate more fully in the civic and political lives of their communities and countries. Particularly for women, education confers the skills and behaviors that lead to healthier lives. Education that reaches women, the poor, and marginalized ethnic groups not only benefits them directly; it contributes to a more equitable and just society.

Business Environment and Comparative Advantage in Africa: Evidence from the Investment Climate Data - Working Paper 56

2/18/05

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.

Primary Health Care in Practice: Is It Effective? - Working Paper 55

2/9/05
Maureen Lewis, Gunnar Eskeland, and Ximena Traa-Valerezo

Primary health care is accepted as the model for delivering basic health care to low income populations in developing countries. Using El Salvador as a case study, the paper draws on three data sets and a qualitative survey to assess health care access and utilization across public and private sector options (including NGOs).

From Pushing Reforms to Pulling Reforms: The Role of Challenge Programs in Foreign Aid Policy - Working Paper Number 53

2/5/05

This paper considers what role pull instruments or challenge programs (such as the World Bank's Poverty Reduction Support Credits or the United States' Millennium Challenge Account) could play within the overall framework of foreign aid, asking how they could be designed to function as effective and efficient incentive instruments and how they could best complement other aid modalities.

A Better Globalization: Legitimacy, Governance, and Reform (Brief)

2/1/05
Kemal Dervis and Ceren Özer

This brief summarizes five key recommendations from the CGD book A Better Globalization: Legitimacy, Governance, and Reform by Kemal Dervis. It presses for reform on a broad front with a renewed, more legitimate, and more effective United Nations as the overarching framework for global governance based on global consent.

Behavioral Foundations of Democracy and Development - Working Paper Number 52

12/28/04

Since 1974 the world has experienced a “third wave” of democratization. Ensuring that these new democracies consolidate is critical to both global prosperity and peace. Unfortunately, the academic literature that might help policy-makers shape appropriate foreign assistance programs remains underdeveloped, in that it lacks strong behavioral foundations, or explanations of why people act the way they do. This paper argues that the process of democratic consolidation requires a transition from clientelistic to contractual exchange relationships. Without that transition, efforts to promote democratic consolidation are unlikely to succeed.

Toward a New Social Contract in Latin America

12/28/04

his policy brief proposes a new job-based social contract, geared to the aspirations of the region’s vast majority of near-poor “middle” households, whose participation is key to achieving growth and strengthening democracy.

Food Security and Economic Growth: An Asian Perspective - Working Paper Number 51

12/13/04

Paradoxically, in most successfully developing countries, especially those in the rice-based economies of Asia, the public provision of food security quickly slips from its essential role as an economic stimulus into a political response to the pressures of rapid structural transformation, thereby becoming a drag on economic efficiency. The long-run relationship between food security and economic growth thus tends to switch from positive to negative over the course of development. Because of inevitable inertia in the design and implementation of public policy, this switch presents a serious challenge to the design of an appropriate food policy.

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