It is time to take a fresh look at the PSWs and to ask some basic questions about their role and instruments. The aim of this essay is to raise issues that need to be addressed as we think about how PSWs should evolve and adapt to meet the formidable challenges ahead. These questions and the answers gained through careful research can help chart the right course and set the right expectations for MDB PSWs, DFIs, and impact investors generally.
This paper covers qualitative case studies from Iran, Nigeria, and India to illustrate a series of lessons for governments implementing subsidy reform policies. From these three country experiences, we find that fostering public support to implement lasting reform may depend on four measures: (1) forming a public engagement plan and a comprehensive reform policy that are then clearly communicated to the public in advance of price increases; (2) phasing in price adjustments over a period of time to ease absorption; (3) providing a targeted compensatory cash transfer to alleviate financial impacts on low- to middle-income households; and (4) capitalizing on favorable global macroeconomic conditions.
CGD Board Chair Lawrence H. Summers delivered this keynote speech at an event hosted at the Center for Global Development on November 8, 2017. A video of the speech is also available.
With aid budgets shrinking and even low-income countries increasingly faced with cofinancing requirements, this is the right time for global health funders such as the Global Fund and their donors to formally introduce Health Technology Assessment (HTA), both at the central operations level and at the national or regional level in recipient countries. In this CGD Note, we explain why introducing HTA is a good idea. Specifically, we outline six benefits that the application of HTA could bring to the Global Fund, the countries it supports, and the broader global health community.
Under managing director Christine Lagarde, the International Monetary Fund (IMF) has become a champion for gender equality. This note examines how much the IMF’s dialogue with its member countries has changed as a result of the labeling of gender as a "macrocritical" issue. In short, there has been increased attention to the issue as reflected in word counts and discussion of women’s labor force participation, but there is still a long way to go.
Todd Moss testified before the Senate Foreign Relations Senate Foreign Relations Subcommittee on Multilateral International Development, Multilateral Institutions, and International Economic, Energy, and Environmental Policy at a hearing titled “Energy and International Development” on November 1, 2017. During his appearance before the Committee, Todd detailed how US efforts to expand meaningful—modern—energy access in sub-Saharan Africa serve US interests and offered recommendations for strengthening Power Africa.
An Index of Regulatory Practices for Financial Inclusion in Latin America: Enablers, Promoters, and Preventers - Working Paper 468
This paper constructs an index of regulatory quality for improving financial inclusion for the purpose of assessing and comparing the quality of rules and regulations in a sample of eight Latin American countries.
How much innovation will be needed to meet the United Nations’ Sustainable Development Goals? Our results suggest that (i) best performers are considerably outperforming the average performance at a given income level, suggesting considerable progress could be achieved through policy change but that (ii) the targets set in the SDGs are unlikely to be met by 2030 without very rapid, ubiquitous technological progress alongside economic growth.
The debate about whether it is more important to have good individual statistics or be a team player that contributes to overall victory is hugely important in development today.
In 1995, India’s Self-Employed Women’s Association (SEWA) organized women waste pickers in Ahmedabad into a cooperative to improve their working conditions and livelihoods. Over time, this informal arrangement evolved into Gitanjali—a women-owned and -run social enterprise. With support from key partners, Gitanjali has generated social value, providing its members with safe and dignified work while increasing their earnings. While Gitanjali faces challenges in becoming a fully self-sufficient social enterprise, its experience offers insights for other initiatives seeking to provide opportunities for women to transition from informal to formal work.
We analyzed a large-scale municipal water disinfection program in Mexico in 1991 that rapidly increased access to chlorinated water. Our results suggest that childhood diarrheal disease mortality in Mexico would have declined by 86 percent if all municipalities had good quality infrastructure—a decline consistent with historical experience.
Can Africa Be a Manufacturing Destination? Labor Costs in Comparative Perspective - Working Paper 466
Our central question is whether African countries can break into global manufacturing in a substantial way. Our results suggest that for any given level of GDP, labor is more costly for firms that are located in Sub-Saharan Africa. However, we also find that there are a few countries in Africa that, on a labor cost basis, may be potential candidates for manufacturing—Ethiopia in particular stands out.
This analysis examines the relationship between legal reform and social norms surrounding homosexuality. First, about a fifth of the variation in individual preferences can be explained at a country level. Second, using a difference-in-differences strategy, legalizing homosexuality improves how individuals view the tone of their communities. Third, we provide further evidence supporting a legal origins argument by examining former colonies. We conclude that adopting legal reform can improve societal attitudes.
Different Strokes for Different Folks: Experimental Evidence on the Effectiveness of Input and Output Incentive Contracts for Health Care Providers with Different Levels of Skills - Working Paper 464
A central issue in designing performance incentive contracts is whether to reward the production of outputs versus use of inputs: the former rewards efficiency and innovation in production, while the latter imposes less risk on agents.
Within a decade, Europe will require hundreds of thousands more nurses than it is likely to train. To meet the growing need, nurses will move in large numbers to Western Europe from other countries, including those in Eastern Europe. But Eastern Europe currently lacks nurses already relative to Western Europe, while Eastern European youths crave opportunities in skilled employment. How can nurses trained in Eastern Europe move to Western Europe in a way that benefits both regions?
The world urgently needs innovation to shape how international migration happens. Today people who are forcibly displaced are seen and treated largely as a burden, not as a resource that can bring shared benefits. A new type of private-public partnership can offer new opportunity for some of those who are forcibly displaced. It can be called a Global Skill Partnership, and this note illustrates how it might work for Syrians displaced into Turkey.
What’s In, What’s Out: Designing Benefits for Universal Health Coverage argues that the creation of an explicit health benefits plan—a defined list of services that are and are not available—is an essential element in creating a sustainable system of universal health coverage. With contributions from leading health economists and policy experts, the book considers the many dimensions of governance, institutions, methods, political economy, and ethics that are needed to decide what’s in and what’s out in a way that is fair, evidence-based, and sustainable over time.