A common objection to results-based programs is that they are somehow more vulnerable to corruption. This paper explains why results-based approaches to foreign aid may be less vulnerable to corruption than traditional approaches which track inputs and activities. The paper highlights corruption costs associated with failing to generate benefits and outlines the conditions under which one approach or another might be preferable. It concludes that results-based programs may be less vulnerable to corruption costs associated with failure because they limit the capacity of dishonest agents to divert funds unless those agents first improve efficiency and outputs.
Arvind Subramanian testified before the Senate Banking Subcommittee on National Security and International Trade and Finance at a hearing on the investment climate and improving market access in financial services in India on September 25, 2013.
The spotlight may be on Jim Kim’s new strategy for the World Bank this year, but Luis Alberto Moreno is busy pursuing an overhaul of his own at Washington’s other multilateral development bank (MDB).
With abundant data, sound analysis, and first-hand experience, Lant Pritchett shows that the way to turn underperforming schools around is to allow functional systems to evolve locally out of an environment pressured for success. Schools systems need to be open to variety and experimentation, locally operated, and flexibly financed. The only main cost is ceding control; the reward would be the rebirth of education suited for today’s world.
The Rebirth of Education: Why Schooling in Developing Countries Is Flailing; How the Developed World Is Complicit; and What to Do Next
The poor quality of education worldwide constitutes a learning crisis; donors and development agencies have been complicit in its creation, but they can and should be part of the solution, not by prescribing changes, but by fostering environments where change is possible.
This report offers a strategy for the Global Fund to get more health for the money by focusing more on results, maximizing cost-effectiveness, and systematically measuring performance throughout its operations.
In this paper we explore the Palma and corroborate the findings that the middle does indeed hold over time and through various stages of tax and transfers. Further, we find that the Gini is almost completely “explained” by only two points of the distribution: the same income shares which determine the Palma.
Social capital can help reduce adverse shocks by facilitating access to transfers and remittances.This study examines how various measures of social capital are associated with disaster recovery after the 2008 Sichuan earthquake.
The New Transparency in Development Economics: Lessons from the Millennium Villages Controversy - Working Paper 342
In this paper, Michael Clemens and Gabriel Demombynes discuss how a new transparency is changing the debate about what works.
The Geography of Inequality: Where and by How Much Has Income Distribution Changed since 1990? - Working Paper 341
In this paper, we propose and justify an alternative approach based on four consumption “layers” identified by reference to the global consumption distribution.We consider how each layer of global society has fared since the end of the Cold War.
At the beginning of the new millennium, a key development concern was the impact of agricultural policies in high-income countries on poor farmers in the rest of the world. Over the ensuing decade, the focus swung from the role of price-suppressing farm subsidies to the role biofuel policies play in driving food prices up. While development advocates are right to criticize the trade-distorting costs and environmental risks of current biofuel policies, agricultural subsidies and trade barriers in rich countries remain in place and the distorting impact of those policies will rise again when prices decline.
In this speech delivered at the 2012 Annual Conference of the Norwegian Agency for Development Cooperation, Nancy Birdsall shares her observations about the changing development space and offers three proposals to help the development community tap the potential for informed and empowered citizens push for better local and global politics. Her remarks were prepared after delivering a 2012 speech to the 2012 UN General Assembly, "Global Citizens and the Global Economy," and foreshadowed her 2013 working paper , "Global Markets, Global Citizens, and Global Governance in the 21st Century."
Planning for Large-Scale Wind and Solar Power in South Africa: Identifying Cost-Effective Deployment Strategies Using Spatiotemporal Modeling - Working Paper 340
South Africa and many other countries hope to aggressively expand wind and solar power (WSP) in coming decades. The challenge is to turn laudable aspirations into concrete plans that minimize costs, maximize benefits, and ensure reliability. Success hinges largely on the question of how and where to deploy intermittent WSP technologies. This study develops a 10-year database of expected hourly power generation for onshore wind, solar photovoltaic, and concentrating solar power technologies across South Africa. A simple power system model simulates the economic and environmental performance of different WSP spatial deployment strategies in 2040, while ensuring a minimum level of system reliability.
Estimating Income / Expenditure Differences across Populations: New Fun with Old Engel’s Law - Working Paper 339
How much larger are the consumption possibilities of an urban US household with per capita expenditures of 1,000 US dollars per month than a rural Indonesian household with per capita expenditures of 1,000,000 Indonesian Rupiah per month? Consumers in different markets face widely different consumption possibilities and prices and hence the conversion of incomes or expenditures to truly comparable units of purchasing power is extremely difficult. We propose a simple supplement to existing purchasing power adjusted currency conversions.
Performance-based financing can be used by global-health funding agencies to improve program performance and thus value for money. The Global Fund to Fight AIDS, Tuberculosis and Malaria was one of the first global-health funders to deploy a performance-based financing system. However, its complex, multistep system for calculating and paying on grant ratings has several components that are subjective and discretionary. We aimed to test the association between grant ratings and disbursements, an indication of the extent to which incentives for performance are transmitted to grant recipients.
The International Finance Corporation wants to increase its development impact in fragile states. Currently, the IFC’s fragile-state portfolio mirrors that of overall foreign direct investment stocks in such countries: focused in extractive industries and mobile telephony. That suggests potentially limited value-added from the Corporation’s investments in terms of crowding in private capital. If the IFC is trying to increase its portfolio and development impact in fragile states, it should look for sectoral opportunities that share some of the features of mines and mobile investments but currently attract limited FDI.
The Quality of Agricultural Official Development Assistance (Ag QuODA) measures how well donors giving agricultural aid score on the dimensions of aid quality that evidence and experience suggest lead to effective aid. Improvements in the data quality and availability are making sector-specific assessments like Ag QuODA more feasible, but further improvements are needed to allow a deeper understanding of aid effectiveness.