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On the occasion of the opening of the UN Summit, CGD presented a lunch seminar entitled "Ghost of 0.7%: Origins and Relevance of the International Aid Target." This seminar featured CGD Research Fellows Michael Clemens and Todd Moss.
ABSTRACT: The international goal for rich countries to devote 0.7% of their national income to development assistance has become a cause célèbre for aid activists and has been accepted in many official quarters as the legitimate target for aid budgets. The origins of the target, however, raise serious questions about its relevance. First, the 0.7% target was calculated using a series of assumptions that are no longer true, and justified by a model that is no longer considered credible. When we use essentially the same method used to arrive at 0.7% in the early 1960s and apply today’s conditions, it yields an aid goal of just 0.01% of rich-country GDP for the poorest countries and negative aid flows to the developing world as a whole. We do not claim in any way that this is the ‘right’ amount of aid, but only that this exercise lays bare the folly of the initial method and the subsequent unreflective commitment to the 0.7% aid goal. Second, we document the fact that, despite frequent misinterpretation of UN documents, no government ever agreed in a UN forum to actually reach 0.7%—though many pledged to move toward it. Third, we argue that aid as a fraction of rich country income does not constitute a meaningful metric for the adequacy of aid flows. It would be far better to estimate aid needs by starting on the recipient side with a meaningful model of how aid affects development. Although aid certainly has positive impacts in many circumstances, our quantitative understanding of this relationship is too poor to accurately conduct such a tally. The 0.7% target began life as a lobbying tool, and stretching it to become a functional target for real aid budgets across all donors is to exalt it beyond reason. That no longer makes any sense, if it ever did.
Indian agriculture remains vulnerable to the vagaries of weather, and the looming threat of climate change may expose this vulnerability further. Using district-level data on temperature, rainfall and crop production, Siddharth Hari’s paper first documents a long-term trend of rising temperatures, declining average precipitation and increase in extreme precipitation events. One key finding is that the impact of temperature and rainfall are felt only in the extreme: when temperatures are much higher, rainfall is significantly lower, and the number of “dry days” greater is than normal. He also finds that these impacts are significantly more adverse in unirrigated areas (and hence rainfed crops) compared to irrigated areas. Can policy makers react to the challenges of climate change and find ways to get “more crop for every drop?"
Estimating intergenerational mobility in developing countries is difficult because matched parent-child income records are rarely available and education is measured very coarsely. In particular, there are no established methods for comparing educational mobility for subsamples of the population when the education distribution is changing over time.
In their recent paper, Sam Asher and coauthors present new methods and new administrative data to overcome this gap, and study intergenerational mobility across groups and across space in India. They find that the intergenerational mobility for the population as a whole has remained constant since liberalization, but cross-group changes have been substantial. Rising mobility among historically marginalized "Scheduled Castes" is almost exactly offset by declining intergenerational mobility among Muslims, a comparably sized group that has few constitutional protections. These findings contest the conventional wisdom that marginalized groups in India have been catching up on average. The paper also explores heterogeneity across space, generating the first high-resolution geographic measures of intergenerational mobility across India, with results across 5600 rural subdistricts and 2300 cities and towns.
AidEx is a two day event, which encompasses a conference, exhibition, meeting areas, awards and workshops. Its fundamental aim is to engage the sector at every level and provide a forum for aid & development professionals to meet, source, supply and learn. AidEx was created to help the international aid and development community engage the private sector in a neutral setting, drive innovation and support the ever-growing need for emergency aid and development programmes.