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Foreign direct investment, financial flows, private-sector development, humanitarian assistance, Africa
Vijaya Ramachandran is a senior fellow at the Center for Global Development. She works on the impact of the business environment on the productivity of firms in developing countries, and is the coauthor of an essay titled "Development as Diffusion: Manufacturing Productivity and Africa's Missing Middle,” published in the Oxford Handbook on Economics and Africa. Vijaya is also studying the unintended consequences of rich countries’ anti-money laundering policies on financial inclusion in poor countries. She has published her research in journals such as World Development, Development Policy Review, Governance, Prism, and AIDS and is the author of a CGD book, Africa’s Private Sector: What’s Wrong with the Business Environment and What to Do About It. Prior to joining CGD, Vijaya worked at the World Bank and in the Executive Office of the Secretary-General of the United Nations. She also served on the faculties of Georgetown University and Duke University. Her work has appeared in several media outlets including the Economist, Financial Times, Guardian, Washington Post, New York Times, National Public Radio, and Vox.
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.
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.
A hearty congratulations to Esther Duflo, winner of this year’s John Bates Clark Medal! Since 1947 the American Economic Association has awarded the medal to “that American economist under the age of forty who is judged to have made the most significant contribution to economic thought and knowledge.” In our profession, the Clark Medal ranks second only to the Nobel Prize, and about 40 percent of medal winners have gone on to win a Nobel. Esther, a 37-year-old native of France, richly deserves this platinum honor.
UN Secretary-General Ban Ki-moon has been getting negative press about the relief efforts after the earthquakes in Haiti and Chile. Perhaps worst is a scathing report from Refugees International accusing the UN of ineffectual leadership, missing coordination, and weak communication while an estimated 1.2 million Haitians remain displaced. Though much of the report consists of standard blandishments (the authors spent just 10 days in-country), there is indeed evidence of serious negligence. To give just one example: the organization initially planned on allowing itself two and a half months—well into the rainy season—to distribute plastic sheeting to protect the displaced. It took a personal intervention from a senior official to get this activity moved up.