Ideas to Action:

Independent research for global prosperity

Publications

 

March 30, 2010

A Doing Business Facility: A Proposal for Enhancing Business Climate Reform Assistance

Africa remains extremely difficult for entrepreneurs. Donors are increasingly targeting assistance to address the investment-climate constraints that hinder private-sector growth. This report lays out the case for promoting investment climate reforms more strategically, various options for implementing a system to do so, and possible institutional homes for the proposed facility.

The Supporting Business Climate Reforms Working Group
March 5, 2007

African Development: Making Sense of the Issues and Actors

Bill Easterly calls Moss's new introduction to Africa "compulsively readable and accessible" and "a masterpiece of clear thinking." Each chapter is organized around three fundamental questions: Where are we now? How did we get to this point? What are the current debates?

February 20, 2007

Why Doesn't Africa Get More Equity Investment? Frontier Stock Markets, Firm Size and Asset Allocations of Global Emerging Market Funds - Working Paper 112

Africa receives only a tiny fraction of global investments in emerging markets. But the problem is not that fund managers are scared away by a seemingly steady stream of bad news out of Africa, nor is a general marketing of Africa to global investors the solution. Instead the authors of this new CGD working paper find that the small size of African markets and low levels of liquidity are a binding deterrent for foreign institutional investors. Drawing on firm surveys to explore why African firms remain small, the authors offer practical recommendations for increasing portfolio investment in Africa. Learn more

Todd Moss , Vijaya Ramachandran and Scott Standley
January 25, 2007

U.S. Aid to Africa After the Midterm Elections? A "Surprise Party" Update

U.S. aid to Africa soared during President Bush's first term, to more than twice the level of any previous administration. But the newly divided government--Democratic Congress, Republican White House--could mean a cut in aid. In this CGD Note senior fellow Todd Moss uses just-released data from the first term of the Bush administration to explore patterns in U.S. official development assistance. He finds that aid to Africa is higher when the same party controls both the White House and Congress and that an all-Republican government gives more aid than an all-Democratic one.

Read Moss' 2003 Surprise Party working paper

December 6, 2006

Freetown to Hollywood: The Kimberley Process Takes on Africa's 'Blood Diamonds'

Diamonds, long seen as symbols of love and prosperity, are now blamed for war and corruption in some of the poorest places on earth. But do all diamonds fuel conflict and strife? In this CGD Note program associate Kaysie Brown and senior fellow Todd Moss consider the strengths and limitations of industry efforts to break the deadly link between diamonds and conflict, most notably through the Kimberley Process, which certifies that a diamond has been obtained legitimately. They find that the Kimberley Process, which has helped turn conflict diamonds into development diamonds, is a good thing but it could be even better. They also offer consumers tips on how to buy conflict-free diamonds.

Kaysie Brown and Todd Moss
November 6, 2006

China's Export-Import Bank and Africa: New Lending, New Challenges

China's bid for a leading role in Africa gained sudden visibility on the weekend with an unprecedented gathering of leaders from 48 African countries in Beijing. Chinese president Hu Jintao pledged to double aid and to offer $5 billion in loans by 2009. China's newly high-profile overtures towards Africa have raised eyebrows—and a fair bit of anxiety—among Africa’s traditional development partners. Will Chinese lending lead to a new African debt crisis? In a new CGD Note, senior fellow Todd Moss and research assistant Sarah Rose examine the growing clout of a little-known instrument of China's Africa policy, the Export-Import Bank of China, and offer some advice for the West. Learn more

September 22, 2006

Fixing International Financial Institutions: How Africa Can Lead the Way

In this CGD Note, CGD vice president Dennis de Tray and senior fellow Todd Moss argue that international financial institutions should transform their boards of resident executive directors into non-resident, non-executive bodies. Doing so would force the governing bodies to focus on their core responsibilities, increase accountability and reduce costs of all kinds. They urge the African Development Bank to go first. Learn more

Dennis de Tray and Todd Moss
September 7, 2006

Building Africa's Development Bank: Six Recommendations for the AfDB and its Shareholders

Donald Kaberuka, the new president of the African Development Bank, leads an institution whose financial standing has been restored from the near collapse of 1995, but whose operational credibility remains a work-in-progress. This CGD working group report offers external, independent advice to Kaberuka and the Bank's board of directors on broad principles to guide the Bank’s renewal. The report contains six bold yet achievable recommendations for management and shareholders as they address the urgent task of reforming Africa's development bank. Prominent among the recommendations is a strong focus on infrastructure.

The AfDB Working Group
August 21, 2006

The Investment Climate Facility for Africa: Does it Deserve U.S. Support?

The Investment Climate Facility (ICF) for Africa was launched in June to help Africa tackle problems that hinder domestic and foreign investment. It aims to raise $550 million for promotion of property rights and financial markets, anti-corruption efforts, and reform of regulations, taxation, and customs. In this CGD Note, senior fellow Todd Moss lists the strengths of the proposal and asks tough questions, including: What exactly will the money be spent on? Why no independent evaluation? He concludes that the U.S. should support the facility--if convincing answers are forthcoming. Learn more

May 26, 2006

Will Debt Relief Make a Difference? Impact and Expectations of the Multilateral Debt Relief Initiative - Working Paper 88

The Multilateral Debt Relief Initiative (MDRI), the latest phase of debt reduction for poor countries from the World Bank, the IMF, and the African Development Bank, will come close to full debt reduction for at least 19 and perhaps as many as 40 countries. Debt relief proponents see it as a momentous leap in the battle against global poverty. CGD research fellow Todd Moss argues that actual gains in poverty reduction will be modest and slow.

learn More

January 10, 2006

An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa- Working Paper 74

Does foreign aid help develop public institutions and state capacity in developing countries? In this Working Paper, the authors suggest that despite recent calls for increased aid to poor countries by the international community, there may be an "aid-institutions paradox." While donor intentions may be sincere, the authors conclude that it is possible that aid could undermine long-term institutional development, particularly in sub-Saharan Africa.

Todd Moss , Gunilla Pettersson and Nicolas van de Walle
July 20, 2005

Costs and Causes of Zimbabwe's Crisis

Zimbabwe has experienced a precipitous collapse in its economy over the past five years. The government blames its economic problems on external forces and drought. We assess these claims, but find that the economic crisis has cost the government far more in key budget resources than has the donor pullout. We show that low rainfall cannot account for the shock either. This leaves economic misrule as the only plausible cause of Zimbabwe’s economic regression, the decline in welfare, and unnecessary deaths of its children.

April 1, 2005

Resolving Nigeria’s Debt Through a Discounted Buyback

Nigeria has $33 billion in external debt. The government has been trying unsuccessfully for years to cut a deal with creditors to reduce its external obligations but to date has only managed to gain non-concessional restructuring. The major creditors also have good reasons for wanting to seek a resolution, yet agreement has been elusive. Fortunately, there is a brief window of opportunity in 2005 to find a compromise that can meet the needs of both sides. This note briefly outlines a proposal for striking such a deal through a discounted debt buyback.

March 1, 2005

Double Standards on IDA and Debt: The Case for Reclassifying Nigeria

Although nearly all poor countries are classified by the World Bank as IDA-only, Nigeria stands out as a notable exception. Indeed, Africa’s most populous country is the poorest country in the world that is not classified as IDA-only. Under the World Bank’s own criteria, however, Nigeria has a strong case for reclassification. IDA-only status would have two potential benefits for Nigeria. First, it would expand Nigeria’s access to IDA resources and make the country eligible for grants. Second, it would strengthen Nigeria’s case for debt reduction. With a renewed economic reform effort getting under way and the emerging use of debt reduction as a tool for assisting economic and political transitions, the UK, the US, and other official creditors should support such a move as part of a broader strategy for encouraging progress in one of Africa’s most important countries.

Todd Moss and Scott Standley
June 10, 2004

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.

Todd J. Moss , Vijaya Ramachandran and Manju Kedia Shah

Pages