Ideas to Action:

Independent research for global prosperity

Publications

Expert

Topic

 

June 1, 2005

The Hardest Job in the World: Five Crucial Tasks for the New President of the World Bank

This report was prepared by a Working Group convened by the Center for Global Development to identify key priorities the Paul Wolfowitz at the start of his tenure at the World Bank on June 1, 2005. It argues that Wolfowitz's biggest challenge will not be managing the Bank, with its 10,000 staff, but leading its shareholders, the nations of the world. The report offers five bold but practical recommendations for restoring the legitimacy and increasing the effectiveness of the world's largest development institution.

Nancy Birdsall and Devesh Kapur, co-chairs
May 24, 2005

Ten Myths of the International Finance Facility - Working Paper 60

The British proposal to create an International Finance Facility in order to 'frontload' $50 billion in aid per year until 2015 has generated a lot of attention and will likely be a major topic at the G8 meeting this July. But the IFF has also been shrouded in confusion and misconceptions. This paper explains the IFF proposal and highlights some of the common misunderstandings surrounding it, including the mechanics of the scheme itself, the potential for a U.S. role, and the expectations of aid which underlie the IFF’s premise. The UK deserves plaudits for elevating global poverty on the international agenda and for seeking ways to better harness the power of private capital markets for development. But the IFF, as currently conceived, is an idea that merits more scrutiny and a healthy dose of skepticism.

May 20, 2005

Financial Regulations in Developing Countries: Can they Effectively Limit the Impact of Capital Account Volatility? - Working Paper 59

After more than a decade of financial sector liberalization, both of domestic markets and of international financial transactions (capital account liberalization), policymakers in many developing countries remain concerned about the effects that large and highly volatile capital flows have on their financial systems. However, in spite of the tremendous costs associated with the resolution of crises and signs of discontent among the population with the outcome of some reforms, to date there is no significant evidence indicating a reversal of the reform process. While one could advance a number of hypotheses explaining this "commitment to reforms," developing countries’ decisions and actions seem to indicate that policymakers perceive capital inflows as a necessary component to achieve growth and development.

May 17, 2005

Reflections on "Our Common Interest," The Report of the Commission on Africa

CGD President Nancy Birdsall testified before the U.S. Senate Foreign Relations Committee on Tuesday, May 17, 2005 on the Commission for Africa report initiated by Tony Blair. She suggested the U.S. should prepare a package of Africa-related initiatives for the UK-hosted G-8 Summit in July covering areas such as peace and security, advance market commitments for vaccines; debt relief, trade, and aid delivery. Sen. Lugar praised the proposal for an advance market commitment for vaccines. "This is an extraordinary idea and I thank you for bringing it to our attention," he said.

May 9, 2005

Does Foreign Direct Investment Promote Development?

Does Foreign Direct Investment Promote Development? gathers together the cutting edge of new research on FDI and host country economic performance and presents the most sophisticated critiques of current and past inquiries.

Theodore H. Moran , Edward M. Graham and Magnus Blomström
April 28, 2005

Adjusting to the MFA Phase-Out: Policy Priorities

In this brief we focus on potential disruptions in poor countries and the policy priorities for coping with them. In particular, we recommend that the United States, which is the only rich country that does not grant tariff-free access for imports from all least-developed countries, provide this access as quickly as possible. In addition, to take advantage of any resulting opportunities, beneficiary countries must adopt domestic reforms to encourage greater productivity.

Debapriya Bhattacharya and Kimberly Ann Elliott
April 26, 2005

Addressing the Challenge of HIV/AIDS: Macroeconomic, Fiscal and Institutional Issues - Working Paper 58

After decades of neglect the HIV/AIDS epidemic has rightly become one of the highest priorities on the global agenda. Funding pledges from the donors have doubled resource commitments between 2002 and 2004 to over $6 billion. That surge in funding belies the volatile nature of contributions to HIV/AIDS initiatives at the country level. The paper analyzes the impacts of abrupt HIV/AIDS funding on macroeconomic stability, fiscal health and the development of health institutions.

April 26, 2005

Connecting the Poor to Economic Growth: Eight Key Questions

It has long been understood that economic growth is the essential foundation for poverty reduction. The key to income growth is the expansion of jobs that pay sustainable remunerative wages, and the two keys areas of production in this vein have almost always been agriculture and labor-intensive manufactured exports. Rising average incomes, both personal and national, are a necessary ingredient for improved livelihoods, but they do not guarantee broad-based poverty reduction. Economic history shows that countries, and communities within countries, with similar growth rates can have very different degrees of success in connecting growth to the poor and translating it into sustained poverty reduction.

Sarah Lucas and Peter Timmer
April 7, 2005

Making Markets for Vaccines - Ideas to Action (Brief)

New medicines are usually financed by a mixture of public funding by governments, philanthropic giving, and investment by private firms. Private investment is especially important in paying for and managing the later stages of clinical trials, regulatory approval, and investment in manufacturing capacity. But for diseases that mainly affect people in developing countries, the prospective sales market is tiny—and not sufficient to justify commercially the large scale investment that is needed to develop new products.

An advance market commitment to accelerate the development of vaccines for diseases concentrated in developing countries, donors could make a binding commitment to pay for a desired vaccine if and when it is developed. This advance market commitment would mean firms could invest in finding a vaccine with the confidence that if they succeed there would be a market for the product.

April 7, 2005

Making Markets for Vaccines: Ideas to Action

Making Markets for Vaccines: Ideas to Action presents the proposal from theory to practice, by showing how a commitment can be consistent with ordinary legal and budgetary principles. A draft contract term sheet is included, highlighting the key elements of a credible guarantee.

Advance Market Commitment Working Group
April 5, 2005

Autonomous Recovery and International Intervention in Comparative Perspective - Working Paper 57

There is growing recognition that significant threats to collective security emerge not only from competition among great powers, but also from the disorder, violence, and oppression wrought by governments (or occurring in the absence of effective governance) across the developing world. Scholars have responded by proposing new models of intervention—including neo-trusteeship and shared sovereignty—that respond to these failures of governance. But these calls for intervention rest on two underlying assumptions that have escaped serious consideration: the idea the countries cannot recover from conflict on their own and the argument that intervention is the best strategy for state-building. In this article, I define and describe a process of autonomous recovery in which states achieve a lasting peace, a systematic reduction in violence, and post-war political and economic development in the absence of international intervention.

Jeremy Weinstein
April 1, 2005

Gold for Debt: What's New and What Next?

This new CGD Note by Center for Global Development President Nancy Birdsall and Institute for International Economics Senior Fellow John Williamson argues that sale of a portion of IMF gold makes sense as a way to create a more transparent institution and use a global resource for debt relief for the world’s poorest countries.

John Williamson
April 1, 2005

Big Sugar and the Political Economy of US Agricultural Policy

Sugar is a prototypical case of a policy that favors the few at the expense of the many. Thanks to a government policy that supports prices by sharply restricting imports, a small number of American sugar cane and beet growers are enriched at the expense of US consumers and of more efficient foreign growers, most of whom are in poorer developing countries.

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.

Cover of Overcoming Stagnation in Aid-Dependent Countries
March 31, 2005

Overcoming Stagnation in Aid-Dependent Countries

In this book, Nicolas van de Walle identifies 26 countries that are extremely poor and grew little if at all in the 1990s. His sample excludes North Korea and countries where civil war explains some of their failure to grow (Afghanistan, Sierra Leone, Sudan, Tajikistan and others). The 26 countries have limited infrastructure and human capital and the small size of their markets deter private savings and investment. Aid was meant to help overcome these problems, and these countries received a lot. Yet they have failed to grow. What is wrong? Is foreign aid a solution or part of the problem? What changes might make aid more effective? Given these countries require the financial and technical resources of the West, why haven’t aid programs made a difference?

Pages