Ideas to Action:

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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

Taxing Kenya’s M-Pesa Picks the Pockets of the Poor

Kenya has instituted a new tax that affects users of M-Pesa -- a widely popular phone-based money transfer service used by more than half of Kenya’s adult population. The new 10 percent excise duty on fees charged for money transfer services applies to mobile phone providers, banks, and other money transfer agencies. Operated by Safaricom, the largest mobile network operator in Kenya, M-Pesa accounts for the largest share of users of money transfer services. Users of M-Pesa products will therefore bear most of the impact of the tax.

Connecting with Central America through Research

Central America experienced almost a decade of economic progress between 2003 and 2008, when GDP per capita growth averaged 3 percent per year. Yet the region’s five countries–Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua–still lag other middle income economies. Their high dependence on their primary commodities and the U.S. economy makes the growth slow and volatile. Even more worrying are high levels of poverty and inequality.  Significant structural changes are urgently needed to secure sustained and inclusive growth.

Don't Do It, Colombia! Presidential Term Limits Are Good for Development, But Endangered

How long should presidents rule? On Tuesday, Colombia’s senate approved a national referendum to amend the constitution—again—to allow the popular president Alvaro Uribe to stand for election next year to yet another term in office.

You should care because this is representative of a big phenomenon that spans the whole developing world. For good reasons, many developing countries built presidential term limits into their constitutions—the contracts that govern how people agree to be ruled by each other.