Testimony before the Senate Foreign Relations Committee
CGD working paper 32, "The Anarchy of Numbers: Aid, Development, and Cross-country Empirics" submits seven aid-growth studies to robustness testing and finds that most are fragile. The data used in the paper are in Excel (data set) and Stata formats (4-year and 5-year aggregates). Full results are available in Excel format. All are included in the zip file.
Towards a New Consensus for Addressing the Global Challenge of the Lack of Education - Working Paper 43
This paper is part of the Copenhagen Consensus process, which aims to assess and evaluate the opportunities available to address the ten largest challenges facing the world. One of these ten challenges is the “lack of education.” This paper provides an analytical framework to evaluate the various options that can be used to address this issue.
The Commitment to Development Index of the Center for Global Development rates 21 rich countries on the “development-friendliness” of their policies. It is revised and updated annually. In the 2004 edition, the component on foreign assistance combines quantitative and qualitative measures of official aid, and of fiscal policies that support private charitable giving.
Is Africa’s Skepticism of Foreign Capital Justified? Evidence from East African Firm Survey Data - Working Paper 41
The world has increasingly recognized that private capital has a vital role to play in economic development. African countries have moved to liberalize the investment environment, yet have not received much FDI. At least part of this poor performance is because of lingering skepticism toward foreign investment, owing to historical, ideological, and political reasons. Results from our three-country sample suugest that many of the common objections to foreign investment are exaggerated or false. Africa, by not attracting more FDI, is therefore failing to fully benefit from the potential of foreign capital to contribute to economic development and integration with the global economy.
A Report of the Commission for Weak States and US National Security
Terrorists training at bases in Afghanistan and Somalia. Transnational crime networks putting down roots in Myanmar/Burma and Central Asia. Poverty, disease, and humanitarian emergencies overwhelming governments in Haiti and Central Africa. A common thread runs through these disparate crises that form the fundamental foreign policy and security challenges of our time. These crises originate in, spread to, and disproportionately affect developing countries where governments lack the capacity, and sometimes the will, to respond.
These weak and failed states matter to American security, American values, and the prospects for global economic growth upon which the American economy depends.
Trade Policy and Global Poverty by William Cline examines how changes in trade policies in the United States and other industrial countries could help reduce poverty in developing countries. Cline first reviews the extent of global poverty and its relationship to trade and growth. He then examines the key components of these relationships to identify lines of trade policy action that could help reduce global poverty.
This brief examines the potential positive synergies between globalization, development, and labor standards. It argues that certain core labor standards can be applied globally without undermining comparative advantage, and that doing so would be good for development. The issues are also examined in terms of the recently concluded Central American Free Trade Agreement (CAFTA), whose fate in the U.S. Congress is currently uncertain because of a combination of protectionist interests on both sides of the aisle and Democratic concerns that the labor provisions are not strong enough.
On May 6, the Millennium Challenge Corporation announced the selection of 16 countries eligible to apply for funding under the Millennium Challenge Account. This note examines the seven cases in which the Board used its discretion to either include countries that did not meet the indicators test, or exclude countries that passed the tests. Although several of the discretionary cases appear justified, several are more questionable, particularly the exclusion of Guyana and the inclusion of Georgia.
The Trouble with the MDGs: Confronting Expectations of Aid and Development Success - Working Paper 40
*REVISED Version September 2004
The Millennium Development Goals (MDGs) are unlikely to be met by 2015, even if huge increases in development assistance materialize. The rates of progress required by many of the goals are at the edges of or beyond historical precedent. Many countries making extraordinarily rapid progress on MDG indicators, due in large part to aid, will nonetheless not reach the MDGs. Unrealistic targets thus may turn successes into perceptions of failure, serving to undermine future constituencies for aid (in donors) and reform (in recipients). This would be unfortunate given the vital role of aid and reform in the development process and the need for long-term, sustained aid commitments.
In this MCA Monitor analysis, Steve Radelet uses the MCC’s recently-released data to predict which countries are most likely to qualify for funding from the Millennium Challenge Account during the first year. The MCC Board is expected to meet in early May to officially announce the countries that will qualify.
This paper focuses on key ways in which donors can improve the quality of foreign assistance and make it more effective in achieving the Millennium Development Goals (MDGs).
"Pro-poor growth" is the new mantra of the development community. This exploratory essay, commissioned by the Indonesia Project at Australian National University (ANU), places this new interest in pro-poor growth in regional perspective and then attempts to draw historical and policy lessons for Indonesia.
This work quantifies how long it has taken countries rich and poor to make the transition towards high enrollments and gender parity. It finds that many countries that have not raised enrollments fast enough to meet the Millennium Development Goals have in fact raised enrollments extraordinarily rapidly by historical standards and deserve celebration rather than condemnation. The very few poor countries that have raised enrollment figures at the rates envisioned by the goals have done so in many cases by accepting dramatic declines in schooling quality, failing large numbers of students, or other practices that cast doubt on the sustainability or exportability of their techniques.
This note examines how countries are selected to receive funding under the Millennium Challenge Account. The authors argue that while the Millennium Challenge Corporation’s proposed selection process is a reasonable starting point, there are several simple steps that could be taken to improve the system.
U.S. Foreign Assistance After September 11th: Testimony for the House Committee on International Relations
U.S. Foreign Assistance After September 11th Testimony for the House Committee on International Relations, February 26, 2004
Boom Towns and Ghost Countries: Geography, Agglomeration, and Population Mobility - Working Paper 36
Ghost towns dot the West of the United States. These cities boomed for a period and then, for various reasons, fell into a process of decline and have shrunk to a small fraction of their former population. Are there ghost countries—countries that, if there were population mobility, would only have a very small fraction of their current population? This paper carries out four empirical illustrations of the potential magnitude of the "ghost country" problem by showing that the "desired population" of any given geographic region varies substantially.
The history of foreign development assistance is one of movement away from addressing immediate needs to a focus on the underlying causes of poverty. A recent manifestation is the move towards "sustainability," which stresses community mobilization, education, and cost-recovery. This stands in contrast to the traditional economic analysis of development projects, with its focus on providing public goods and correcting externalities.