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Friday Roundup – Inequality, Biofuel Prices, Exchange Rates and Keynes vs Austerity

Three new Policy Research Working papers, a Project Syndicate piece by Ken Rogoff, and an Eduardo Porter column in the New York Times, titled ‘A Keynesian Victory, but Austerity Stands Firm,’ made for an interesting week.

A working paper published this week by Milanovic Branko uses multiple techniques to gauge how close measured inequality is to the maximum inequality that can exist in a given society.  Looking at historical data tracing back several centuries, Branko finds that inequality in colonies was pushed almost to its maximum. Branko also looks beyond inequality as measured by income inequality to inequality in social terms.

Harry de Gorter, Dusan Drabik and Govinda Timilsina have a working paper on the relationship between volatility in crude oil prices, biodiesel and oilseeds (soy beans and canola).  They find that higher crude oil prices increase biodiesel prices if biofuels benefit from a fuel tax exemption, but lower them when a blending mandate is imposed.  When both canola and soybeans are used to produce biodiesel, an increase in the crude oil prices lead to higher canola prices, but the effect on soybean prices is ambiguous.

DECPG Daily : May 24, 2013 - Bond yields are up…German business confidence improves, Italian drops…Peru GDP slows

Financial Markets…Japans’ Topix index gained 0.5% today, bouncing backing slightly from its biggest drop since the 2011 earthquake and nuclear disaster. Yesterday’s plunge, which many investors suggested marked a long-overdue correction, cut the Topix’s 2013 gain to 38% to 48%, and erased $314 billion in stock market valuation.

Aid and Complex Systems cont’d: Timelines, Incubation Periods and Results

Duncan Green's picture

I’m at one of those moments where all conversations seem to link to each other, I see complex systems everywhere, and I’m wondering whether I’m starting to lose my marbles. Happily, lots of other people seem to be suffering from the same condition, and a bunch of us met up earlier this week with Matt Andrews, who was in the UK to promote his fab new book Limits to Institutional Reform in Development (I  rave reviewed it here). The conversation was held under Chatham House rules, so no names, no institutions etc.

Whether you work on complex systems or governance reform or fragile states, the emerging common ground seems to be around what not to do and to a lesser extent, the ‘so whats’. What can outsiders do to contribute to change in complex, unpredictable situations where, whether due to domestic opposition or sheer irrelevance to actual context, imported blueprints and ‘best practice guidelines’ are unlikely to get anywhere?

In his book Matt boils down his considerable experience at the World Bank and Harvard into a proposal for ‘PDIA’ – Problem Driven iterative adaptation, which I described pretty fully in my review. The conversation this week fleshed out that approach and added some interesting new angles.

Grassroots Leaders: Empowering Communities is Resilience Building

Margaret Arnold's picture

 Margaret Arnold/World Bank
Participants at the first Community Practitioners Academy meeting, which was held ahead of the Fourth Global Platform for Disaster Reduction in Generva. - Photos: Margaret Arnold/World Bank

Communities are organized and want to be recognized as partners with expertise and experience in building resilience rather than as clients and beneficiaries of projects. This was the common theme that emerged from the key messages delivered by grassroots leaders at the Fourth Global Platform for Disaster Reduction taking place in Geneva this week, organized by the UN International Strategy for Disaster Reduction (UNISDR). The Global Platform is a biennial forum for information exchange and partnership building across sectors to reduce disaster risk.

Ahead of the Global Platform, 45 community practitioners from 17 countries - Bangladesh, Chile, Ethiopia, Guatemala, Haiti, Honduras, India, Indonesia, Japan, Kenya, Nicaragua, Peru, Philippines, Samoa, Uganda, Venezuela, and the United States - met for a day and a half to share their practices and experiences in responding to disasters and building long-term resilience to climate change, and to strategize their engagement in around the Global Platform. I had the privilege to participate in this first Community Practitioners Academy, which was convened by GROOTS International, Huairou Commission, UNISDR, the World Bank, Global Facility for Disaster Risk and Reduction (GFDRR), Act Alliance, Action Aid, Japan NGO Center for International Cooperation (JANIC), Cordaid, and Oxfam, and was planned in partnership with the community practitioners from their respective networks.

Survey Says: More Focus on Demand for Financial Data

Samuel Lee's picture

While working on the Open Finances and Open Contracting programs something had become very clear: there was a growing and pervasive sense in the open data space that more work could and should be done on the demand side of open financial and contracting data.

Voices of Youth: Encouraging Youth-led Initiatives for Climate Resilience Building of the Urban Poor

Tashmina Rahman's picture

"We have lost everything, without our homes we have nothing and now our houses are gone, broken and destroyed. Apa, what are we going to do? Do we sort out our utensils and belongings or buy food? All we have is our home and now we have nothing. No tin, no home, everything is flooded! “ 

- A flood-affected female resident of a low-income urban settlement (Rashid, 2000: 244)
 
The urban poor in low-income settlements in the cities of Bangladesh are one of the most vulnerable populations to disasters and climate risks. Nearly 35 percent of the country’s urban population lives in highly dense and populated informal settlements that lack protective infrastructure, basic services and resources needed to face the challenges in an era of changing climate. With the frequency and intensity of flooding as well as cold and heat waves increasing over the years, these marginalized communities are yet to be taken into mainstream climate adaptation planning and policy.

Harnessing Innovative entrepreneurship for growth

John Paul's picture


How are emerging market entrepreneurs leveraging technology and changing development paradigms?  Why are the rewards of funding innovative new ventures in emerging economies worth the risks, and what makes these investments succeed?  How can investors, policy makers, and the private sector in general help find and groom transformative high-growth enterprises?

Weekly Wire: the Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

NDI Tech
Mobile Phones and Violent Conflict - Is there a Connection?

“Over the past several years, a significant body of research has examined how communication technologies are transforming social, political, and economic dynamics in societies around the world.  Much of this work has observed the positive effects of these technologies on improving civic engagement, increasing transparency, supporting free and fair elections, fostering economic development, and preventing violent conflict.  We at NDI have developed numerous programs using communication technologies to improve democracy and good governance across borders and issue areas.  

A new report, “Technology and Collective Action: The Effect of Cell Phone Coverage on Political Violence in Africa,” sheds light on the less beneficial aspects of communications technologies.”  READ MORE
 

Prospects Daily: Japan affirms its monetary easing plans, US housing market continues recover, Russia industrial production slows

Financial Markets…The yen weakened to a three-year low against the euro on Wednesday, slumping to as low as 133.30 per euro in early trading, as the Bank of Japan affirmed its plan to expand the monetary base and upgraded its assessment of the economy. Weakening yen pushed the benchmark Nikkei stock index to the highest closing level since December 2007.

Citizens Against Corruption: What Works? Findings from 200 Projects in 53 Countries

Duncan Green's picture

I attended a panel + booklaunch on the theme of ‘Citizens Against Corruption’ at the ODI last week. After all the recent agonizing and self-doubt of the results debate (‘really, do we know anything about the impact of our work? How can we be sure?’), it was refreshing to be carried away on a wave of conviction and passion. The author of the book, Pierre Landell-Mills is in no doubt – citizen action can have a massive impact in countering corruption and improving the lives of poor people, almost irrespective of the political context.

The book captures the experience of the Partnership for Transparency Fund, set up by Pierre in 2000. It summarizes experiences from 200 case studies in 53 countries. This has included everything from using boy scouts to stop the ‘disappearance’ of textbooks in the Philippines to introducing a new code of ethics for Mongolia’s judiciary. The PTF’s model of change is really interesting. In terms of the project itself:

  • Entirely demand led: it waits for civil society organizations (CSOs) to come up with proposals, and funds about one in five
  • $25k + an expert: the typical project consists of a small grant, and a volunteer expert, usually a retiree from aid agencies or governments, North and South. According to Pierre ‘the clue to PTF’s success has been marrying high quality expertise with the energy and guts of young activists’. (I’ve now added ‘Grey Wonks’ to my ‘Grey Panthers’ rant on why the aid world is so bad at making the most of older people).
  • The PTF is tapping into a zeitgeist of shifting global norms on corruption, epitomised by the UN Convention Against Corruption (2003). The idea that ‘they work for us’ seems to be gaining ground.
  • The PTF prefers cooperation to conflict – better to work with champions within the state (and there nearly always are some, if you can find them), than just to lob rocks from the sidelines (although some rock-lobbing may also be required).
  • It also prefers action and avoids funding ‘awareness-raising’, ‘capacity building’ and other ‘conference-building measures.’

So what works? On the basis of the case studies (chapters on India, Mongolia, Uganda and the Philippines), and his vast experience of governance and corruption work, Pierre sets out a ‘stylized programme’ for the kinds of CSO-led initiatives that deliver the goods:

GPE launches open data project to better measure education progress and make it transparent

Yann Doignon's picture

New data webpages for 29 countries with thousands of education data points
Only few insiders know that the Global Partnership for Education (GPE) is gathering vast amounts of data and education indicators from dozens of GPE developing-country partners. There are thousands of precious data points representing all aspects of a country’s education sector – unfortunately often buried in lengthy documents.

Internet and Citizen Participation: Moroccan Youths Reinvent Their Democracy

Liviane Urquiza's picture

This week, I had the opportunity to discuss the rise of citizen participation in Morocco with Tarik Nesh-Nash. If the name means nothing to you, it’s time to discover the man behind it!

Tarik Nesh-NashTarik is 34 years old. He’s a computer engineer and is acutely aware of politics in his country. Youth, skills, and an understanding of the issues: Combine ingredients, mix well, and finish off with a generous dash of inventiveness. What you have is a young social innovator ready to revolutionize the role of citizens in his country.

Early 2011. The first buds of the Arab spring are about to bloom. The Moroccan people take to the streets to denounce social injustice, unemployment, and corruption and call for a genuine constitutional monarchy. In March, King Mohamed VI announces the launch of constitutional reforms. Several days later, Tarik launches Reforme.ma, a participatory platform he co-founded with another young computer engineer, Mehdi Slaoui Andaloussi. The platform will enable thousands of Moroccans to contribute to drafting the new constitution.

China: The Morphing Dragon

Otaviano Canuto's picture

The Chinese economy has changed dramatically over the last three decades. While its per-capita income was only a third of that of Sub-Saharan Africa in 1978, it has now reached an upper-middle income status, lifting more than half a billion people out of poverty. The numbers are dramatic: per capita income has doubled for more than a billion people in just 12 years. What was once a primarily rural, agricultural economy has been transformed into an increasingly urban and diversified economic structure, with decentralization and market-based relations rising relative to the traditional government driven command-based economy.

Starting a Historic Trip with the United Nations

Jim Yong Kim's picture

KINSHASA, Democratic Republic of Congo — For too long the people of the Great Lakes region of Africa have suffered from conflict and insecurity. We need to bring peace, security, and development to the region with great urgency to build on an 11-country peace framework arrangement. I am joining with U.N. Secretary-General Ban Ki-moon on a historic trip to the region — the first ever taken together to Africa by the heads of our organizations. Watch the video of my crossing the Congo River, from Brazzaville to Kinshasa, at the very beginning of the trip. 


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