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
Development refers to improvements in the conditions of people’s lives, such as health, education, and income. It occurs at different rates in different countries. The U.S. underwent its own version of development since the time it became an independent nation in 1776.Learn more about Rich World, Poor World: A Guide to Global Development
In this new CGD working paper John Nellis takes stock of fifteen years of privatization in developing and post-communist countries. He finds that a surprisingly large amount of assets remain in state hands. And while technical assessments of the impact of privatization are often positive, public opinion tends to be highly critical. The paper ends with suggestions for creating incentives for privatization that better serve public needs.
The Commitment to Development Index (CDI), which ranks 21 countries across six policy areas, is widely seen as the most comprehensive and substantive measure of rich country policies towards development. In response to requests from other would-be index builders, CDI architect David Roodman describes the work of the interdisciplinary team that builds and runs the Index. Among the lessons: to work well, policy indexes must combine humility with a clear sense of purpose.
Back to the Future for African Infrastructure? Why State-Ownership Is No More Promising the Second Time Around - Working Paper 84
African state-owned enterprises, particularly those in infrastructure, have a long history of poor performance. But moves in the 1990s to rely instead on private-sector participation and ownership have yet to deliver the hoped-for improvements. Is the solution to return to a strategy of improving state firms under public management? In this new CGD working paper, John Nellis argues that that Africa's SOEs are no more promising now than before and that private firms still have not been given a real chance.
The G-8 has endorsed sweeping efforts to combat bribery and corrupt payments by international investors. Are these efforts effective? A new working paper by Theodore H. Moran says no. In How Multinational Investors Evade Developed Country Laws, Moran presents evidence that multinational corporations evade anti-corruption laws by making payments to relatives and cronies of developing country rulers. The findings will be discussed at a CGD event on Thursday, Feb. 16.