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The global financial crisis of 2008-9 has changed the way people around the world think about development. The market-friendly, lightly regulated model of capitalism promoted by the United States is now at risk, and development thinking worldwide is at something of an impasse. Editors Nancy Birdsall and Francis Fukuyama bring together leading scholars to explore the implications of the global financial crisis on existing and future development strategies. In addressing this issue, the contributors contemplate three central questions: What effect has the crisis had on current ideas in development thinking? How has it affected and how will it affect economic policy and political realities in Latin America and Asia, including China and India? Will the financial collapse reinforce shifts in geopolitical power and influence, and in what form? Essays answering these questions identify themes that are essential as economic and political leaders address future challenges of development. To help move beyond this time of global economic turmoil, the contributors--the foremost minds in the field of international development--offer innovative ideas about stabilizing the international economy and promoting global development strategies. Contributors: Nancy Birdsall, Center for Global Development; Michael Clemens, Center for Global Development; Kemal Dervis, Brookings Institution; Larry Diamond, Stanford University; Francis Fukuyama, Stanford University; Peter S. Heller, Johns Hopkins University; Yasheng Huang, Massachusetts Institute of Technology; Justin Yifu Lin, World Bank; Jose Antonio Ocampo, Columbia University; Mitchell A. Orenstein, Johns Hopkins University; Minxin Pei, Claremont McKenna College; Lant Pritchett, Harvard University; Liliana Rojas-Suarez, Center for Global Development; Arvid Subramanian, Johns Hopkins University
This study brings readers up to date on the complicated and controversial subject of debt relief for the poorest countries of the world. What has actually been achieved? Has debt relief provided truly additional resources to fight poverty? How will the design and timing of the "enhanced Highly Indebted Poor Country (HIPC) initiative" affect the development prospects of the world's poorest countries and their people? The study then moves on to address several broader policy questions. Is debt relief a step toward more efficient and equitable government spending, building better institutions, and attracting productive private investment in the poorest countries? Who pays for debt relief? Is there a case for further relief? Most importantly, how can the case for debt relief be sustained in a broader effort to combat poverty in the poorest countries?
The reciprocal opening of markets for goods and financial services provides opportunities for foreign direct investment and its related fresh inflow of long-term capital, and developing countries must have sustained access to these markets in order to grow. Global integration efforts are essential in this process, but they need to be complemented by a certain degree of regional cooperation, which may include the provision of regional public goods and services essential for development that are not provided by markets of single nations. This report brings together the views of experts and policymakers on the benefits and limitations of regionalism. In dealing with the multiple issues of regionalism, the authors offer fresh insights and discuss ways in which Regional Development Banks (RDBs) may serve as catalysts for collective action. The authors also propose ways in which RDBs should modify current practices.
The global financial crisis of 2008-9 has changed the way people around the world think about development. The market-friendly, lightly regulated model of capitalism promoted by the United States is now at risk, and development thinking worldwide is at something of an impasse. Editors Nancy Birdsall and Francis Fukuyama bring together leading scholars to explore the implications of the global financial crisis on existing and future development strategies. In addressing this issue, the contributors contemplate three central questions: What effect has the crisis had on current ideas in development thinking? How has it affected and how will it affect economic policy and political realities in Latin America and Asia, including China and India? Will the financial collapse reinforce shifts in geopolitical power and influence, and in what form? Essays answering these questions identify themes that are essential as economic and political leaders address future challenges of development. To help move beyond this time of global economic turmoil, the contributors--the foremost minds in the field of international development--offer innovative ideas about stabilizing the international economy and promoting global development strategies. Contributors: Nancy Birdsall, Center for Global Development; Michael Clemens, Center for Global Development; Kemal Dervis, Brookings Institution; Larry Diamond, Stanford University; Francis Fukuyama, Stanford University; Peter S. Heller, Johns Hopkins University; Yasheng Huang, Massachusetts Institute of Technology; Justin Yifu Lin, World Bank; Jose Antonio Ocampo, Columbia University; Mitchell A. Orenstein, Johns Hopkins University; Minxin Pei, Claremont McKenna College; Lant Pritchett, Harvard University; Liliana Rojas-Suarez, Center for Global Development; Arvid Subramanian, Johns Hopkins University
The World Bank is assailed by critics on the left, right and center on the grounds it is not effective, not accountable, not democratic or legitimate, and most threatening of all, not relevant in a global economy where private capital, production, and ideas dominate. Yet the world needs a strong World Bank working with other international institutions to manage development and the related global challenges of the 21st century. Are the Bank's shortcomings exaggerated or potentially fatal? If potentially fatal, can this critical institution be rescued? Rescuing the World Bank explores the answers to these questions. The first part of the book, The Hardest Job in the World: Five Crucial Tasks for the New President of the World Bank, is a report by a Center for Global Development (CGD) Working Group delivered to Paul Wolfowitz on his first day in the office in June 2005. The second part comprises selected essays, many first presented at a CGD Symposium in the fall of 2005. The Working Group members and essay authors represent a rich array of experience and views. CGD president Nancy Birdsall was co-chair of the Working Group and selected and edited the essays. Her view that the Bank is a crucial global institution but potentially at risk is widely --but not universally --shared by the Working Group members and the essay authors. The provocative volume will be widely read and discussed by those who are actively grappling with how to strengthen the World Bank, by its many stakeholders, and by readers with a broad interest in development seeking a better understanding of this vital and complex institution as it struggles to adapt to the demands of the 21st century.
The relationship between the process of creating wealth and
distributing it has been a subject of great analytical and policy
interest to development economists for many years. Is there an
inevitable conflict, or tradeoff, between wealth creation and
wealth distribution? Can both growth and social equity increase
simultaneously? What role can public policy play to affect
growth-equity outcomes?
Foreign aid has no shortage of critics. Some argue that it undermines development and inherently does more harm than good; others insist that aid must be seriously reformed to work properly. Cash on Delivery (COD) Aid proposes serious reform to make aid work well by forcing accountability, aligning the objectives of funders and recipients, and sharing information about what works. Public and private aid can improve lives in poor countries, but the willingness of taxpayers and private funders to finance aid programs depends more than ever on showing results. COD Aid is a funding mechanism that hinges on results. At its core is a contract between funders and recipients that stipulates a fixed payment for each unit of confirmed progress toward an agreed-upon goal. Once the contract is struck, the funder takes a hands-off approach, allowing the recipient the freedom and responsibility to achieve the goal on its own. Payment is made only after progress toward the goal is independently verified by a third party. At all steps, a COD Aid program is remarkably transparent: the contract, the amount of progress made, and the payment are disseminated publicly to highlight the credibility of the arrangement and improve accountability to the public. COD Aid is a new approach to foreign aid, but one that complements other aid programs and would ultimately encourage funders and recipients to use existing resources more efficiently. "Cash On Delivery Aid: A New Approach to Foreign Aid" explains the approach in detail and investigates its application in one sector: education. More specifically, the authors show how foreign aid agencies could use COD Aid to help developing countries achieve universal primary school education. The example illustrates how to deal with potential challenges of the approach --challenges that are no greater than those of traditional aid --and includes model term sheets for contracts that could be used for any COD Aid agreement.
The last few years have seen a steep decline in the perceived legitimacy of U.S. policies and values in the world. How will the next American president regain the country's power and influence so that it is capable of tackling the global challenges of the 21st century? The White House and the World explores areas where changes in U.S. policies can conceivably improve the lives of the poor in developing countries, thereby not only protecting our own national security but also restoring America's credibility in the world.In selected essays, Center for Global Development fellows explore a range of topics such as trade policy, migration, foreign aid, and climate change and offer practical recommendations for effective change to the next president. The authors and topics include Michael Clemens on migration, Dennis de Tray on corruption, Kimberly Elliott on trade, Ruth Levine on health, Theodore Moran on private investment, Mead Over on HIV/AIDS, Stewart Patrick on fragile states, Steve Radelet on foreign assistance, Vijaya Ramachandran on development in Africa, and David Wheeler on climate change.
Failed states are at greatest risk for collapse and pose an urgent threat to international security. Yet, ironically, new U.S. foreign assistance programs such as the Millennium Challenge Account (MCA) routinely bypass these poorly performing countries, while providing increased aid to so-called good performers. This volume provides a lucid account of failed states that are ineligible for this new assistance, thus residing "on the other side of the MCA." The first part analyzes U.S. policy toward the Democratic Republic of the Congo, Nigeria, Indonesia, Yemen, Myanmar, and Central America in order to examine the fundamental causes of poor performance. The second part examines the role of specific U.S. policy instruments in building state capacity to prevent deterioration and collapse. Uncovering one of the most recognizable, yet poorly understood, trends in the developing world, Short of the Goal sets an important agenda for increased American engagement with failed states to promote both development and security in the developing world.
Does rapid population growth diminish countries' economic development prospects? Do policies aimed at reducing high fertility help families escape poverty? These questions have been at the heart of policy debates since the time of Malthus, and have been particularly heated during the last half-century of explosive Third World population growth. In this carefully constructed collection of recent studies and analyses, the authors offer a nuanced, yet clear and positive answer to these questions--a refreshing step forward from the ambiguous conclusions of much of the literature of the 1970s and 1980s.
Does rapid population growth diminish countries' economic development prospects? Do policies aimed at reducing high fertility help families escape poverty? These questions have been at the heart of policy debates since the time of Malthus, and have been particularly heated during the last half-century of explosive Third World population growth. In this carefully constructed collection of recent studies and analyses, the authors offer a nuanced, yet clear and positive answer to these questions---a refreshing step forward from the ambiguous conclusions of much of the literature of the 1970s and 1980s.
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