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From the ABCDE Conference:
ABCDE: Combine our knowledge and best practices
It is only natural that we sharpen our focus on development. The epicenter of economic activity is shifting from industrialised countries to the large developing countries and, more than ever, their future growth prospects are closely intertwined. Over the past decade, a group of emerging and developing countries has achieved remarkable advances in terms of growth and development. They have lifted millions of people out of extreme poverty, becoming a vital development source of trade, investment and aid. If current trends continue, we anticipate that developing countries will account for nearly 60% of global GDP by 2030. Read more
ABCDE: Focusing on inequality or poverty reduction is not enough
Day two of the 2011 ABCDE conference has just finished and so far, the conference has given me a lot to think about. There seems a growing consensus that high levels of inequality are not conducive to sustained growth and development. At the Development Centre we go beyond this, arguing that societies that are growing rapidly and undergoing significant structural changes could see their growth trajectories compromised unless they put in place policies to help manage the process. What is less clear is what policies should be employed, and in what order. Given the extensive changes that many countries are experiencing, focusing on inequality or poverty reduction is not enough. Rapid economic growth may be instrumental to reducing poverty, but if large parts of the population get absorbed into the informal sector for example, then these “non-poor” will remain very vulnerable over time. Read more
ABCDE: Working Your Way Out of Fragility and Violence: How Jobs Matter
Globally there are about 30-40 conflict-affected and fragile states – all feature little formal employment, high poverty and, importantly, booming populations. Today, the Annual Bank Conference on Development Economics (ABCDE) discussed the challenge of why job creation matters in situations of fragility and how it can be done. It matters for two reasons. First, jobs are likely to create stability because they make violence less attractive and increase interdependencies. Second, employment gives people a sense of self-worth and the means to start shaping their future. Both are critical to reducing conflict and fragility. The challenge is to generate jobs fast enough in these complex and volatile settings. Evidence and experts suggest that focus need to be on increasing agriculture productivity and public works schemes as starting points. Read more
ABCDE: For effective development, listen, learn and measure more than GDP
Hal Varian, Google’s chief economist, famously remarked recently that being a statistician would be the sexiest profession of the 21st century. After hearing discussions at this week’s Annual Bank Conference on Development Economics, I think he may be on to something. The conference has confirmed my view that good data is an essential ingredient for development. I’m not just talking about how data has illuminated many of the excellent conference papers and debates. I’m also talking about how data helps governments design and measure better policies for better lives. After focusing on growth for a long time, we now know that we need to look at a much more nuanced picture of societal progress – it takes more than income to make lives better. What about better health? What about a cleaner environment? These issues are important to people, and we need to start measuring them better and more prominently. In this context, I am looking forward to seeing the outcomes of the OECD’s new Better Life Initiative, which allows individuals to build a personal index using their own better life indicators. Read more
Bugs, drugs and death
Would you eat animal excrement if the flavour was right? Mayu Yamamoto of the International Medical Center of Japan thinks you might, and won the 2007 Ig Nobel for chemistry for developing a way to extract vanilla fragrance from cow dung. The Japanese team were looking for ways to tackle a major environmental problem in the country. Livestock produce 50 million tons of excrement each year, and almost all farms are located close to residential areas in Japan, increasing the dangers of pollution – bacteria like E. coli are one of the most widely used indicators of faecal contamination of water. The case in Germany is only the latest in a long list of deadly outbreaks. However, although it is a particularly nasty variant, there are no signs that E. o104 (the present strain of E. coli) is the mutant superbug epidemiologists have nightmares about. It is though a warning about drug resistance. Read more
OECD: From economic NATO to epistemic influence
This post is from Professor Aynsley Kellow of the University of Tasmania School of Government, who with his colleague Professor Peter Carroll of the Business Faculty, has just published The OECD: A Study in Organisational Adaptation in which they present a critical examination of the trajectory of the OECD, from its origins in the Organisation for European Economic Cooperation (OEEC) to the present day.Peter and I both had the experience of looking for a definitive book on the OECD to tell us about its structure and operations. We found no such work. Shorter treatments told us little. A chapter on environmental policy in the European Union and the OECD devoted about twenty pages to the EU and around four to the OECD. The OECD was a neglected topic. It is no longer quite as neglected, with a book by Richard Woodward published recently. Our book coincides with the OECD’s 50th Anniversary, though that was not our intention: we would have gladly finished it sooner!
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Does peacebuilding bring peace?How much do you think it would cost to achieve the Millennium Development Goals? Among other things, that would mean cutting extreme poverty by half in 2015 compared with 1990, achieving universal primary education, and cutting the under-5 mortality rate by two-thirds and maternal mortality by three-quarters.
In 2002, the World Bank came up with a figure of an extra $40-$60 billion a year in foreign aid. Let’s assume that prices have doubled since then, and it would now cost $120 billion.
That’s a gigantic sum of money, but it’s peanuts compared to a figure in the 2011 Yearbook of the Stockholm International Peace Research Institute (SIPRI): military expenditure in 2010 increased by 1.3% in real terms to reach $1630 billion. The top three arms dealers each had sales of around $33 billion. Read more
Goodbye conflict, welcome development?
What can be done to say “goodbye conflict, welcome development” as the slogan of the g7+ group of fragile countries hopes? The second global meeting of the International Dialogue on Peacebuilding and Statebuilding being held in Monrovia, Liberia on 15-16 June gives conflict-affected states a common voice in their discussions with international partners, and for the first time, these states themselves will make commitments on the concrete steps they’ll take to change things. Two outcomes are targeted. First, a new agreement on peacebuilding and statebuilding priorities is required. Second, a commitment on how to realise these is needed. Security, justice, and jobs are priorities for conflict-affected communities. Without security and the assurance that people can go about their daily lives in safety, the rest is meaningless. Read more
Want a better life? Put your mind to it.
Everybody thinks on occasion about how life might be improved. But working towards that better life means solving a certain number of knotty problems. What do you think should be tackled first? Complex answers to this simple poll are much appreciated- just put them in the comments section. Now, put your minds to it!
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