In this CGD Essay, visiting fellow Nancy Lee provides the full details and policy recommendations for a strategy of regional investment integration in the Americas. The essay, excerpted from her chapter in the forthcoming White House and the World: A Global Development Agenda for the Next U.S. President, builds on a previously published CGD Note by specifying the scope of the proposed agreement, outlining its expected gains, and identifying the initial steps the United States could take to encourage a fresh agreement to be reached.
Unlike East Asia and Europe, Latin America lacks a shared integration strategy and continues to struggle with a burdensome investment climate. In this new CGD Note, visiting fellow Nancy Lee suggests a fresh approach to regional integration in the form of a proposed regional investment agreement. The idea is a collective effort to set common standards for reducing specific barriers to domestic and foreign investment. Beyond its benefits for growth, such an agreement could boost the incomes of the poor by helping small businesses trapped in the informal sector move into the more productive formal sector.
CGD senior fellow Vijaya Ramachandran argues in this essay that the next U.S. president can play a valuable role in helping Africa to overcome two crucial barriers to poverty reduction: lack of power and lack of roads. Ramachandran urges the next president to create a $1 billion Clean Energy Fund for Africa to facilitate the transfer of U.S. infrastructure technology, including renewable energy; and to encourage the World Bank and the African Development Bank to focus on cross-country regional infrastructure projects, also with a strong emphasis on clean technology. The essay is included in a forthcoming CGD volume: The White House and the World: A Global Development Agenda for the Next U.S. President.
With President Bush's trip to Africa making headlines this week, CGD senior fellow Steve Radelet and research assistant Sami Bazzi offer a close look at the latest U.S. foreign assistance numbers. Bottom line: although America's aid has more than doubled since 2000, the new money went mostly to Iraq, Afghanistan and a small number of debt relief operations; and almost all was allocated through bilateral rather than multilateral channels. Assistance to Africa more than quadrupled from $1.5 billion in 1996 to $6.6 billion in 2006 and has been enormously important in funding humanitarian relief and HIV/AIDS programs. But even with the increases, U.S. assistance to Africa still averages less than $9 per African per year. And U.S. assistance for Africa has become less selective: since 2000 the shares going to the poorest countries and to the best-governed countries have fallen.
Liberian President Ellen Johnson Sirleaf, who will host President Bush on Thursday in the final stop of his five-country Africa tour, has news that may surprise some people: despite the problems in some African countries, things are clearly improving in much of the continent. In a new CGD essay co-authored with senior fellow Steve Radelet, Sirleaf describes how a growing number of African countries are embracing democracy and good governance, strengthening macroeconomic policies, and benefiting from debt relief. These countries are in the midst of an economic and development rebound, with economic growth averaging 5 percent for a decade, poverty rates beginning to fall, and social indicators beginning to improve. The essay concludes with recommendations on how this progress can be sustained and consolidated.
Over the past two decades tens of thousands of children were forcibly recruited or abducted by the Lord's Resistance Army in Uganda. What happens to these former child soldiers when they return to civilian life? This new working paper by CGD post-doctoral fellow Chris Blattman shows that the popular perception of former child soldiers as social misfits and possible threats to society is generally contrary to the facts. His research shows that the experience of forced recruitment generally leads to greater political participation, more than doubling the likelihood that a young person will become a community leader.
In an increasingly globalized world, inequality is an issue of rising concern, especially in Latin America, home to many of the world's most unequal societies. This new book, co-published by the Center for Global Development and the Inter-American Dialogue, describes the links between recent growth trends, changing patterns of inequality, and rising cynicism and frustration with the political leadership across the region. The authors, Nancy Birdsall, Augusto de la Torre, and Rachel Menezes, present a dozen economic policy tools to make life fairer for the great majority of people--without sacrificing economic growth.