Children in developing countries get lots of schooling, but they are not necessarily learning. To address this, countries need new forms of feedback, experimentation, and financing that conventional aid is ill-suited to provide. This paper reviews experiences with an unconventional aid modality—paying for results—as it could apply to learning. The paper explains how such a program could be implemented and accelerate institutional changes needed to improve student learning.
Energy is critical to human welfare, yet energy consumption in developing countries is extremely low relative to modern living standards. Conventional aid programs have invested in energy production with some success but also with many notable failures. This paper discusses how a distinctive approach to development aid—disbursing funds against improved outcomes—could make aid more effective in the energy sector. In particular, it explores the use of Cash on Delivery Aid (COD Aid) to resolve perennial difficulties encountered by conventional aid programs in energy sector development.
The “just right” approach for the mobility of low-skill labor looks to avoid either “too hard”—expecting countries to make legally binding commitments to a global protocol—or “too soft”—no global mechanisms for reducing restrictions on labor mobility. We propose a “bundled” organization that works with existing bilateral labor agreements and partners as part of an organization capable of analysis and advocacy.
Nigeria Will Become Polio-Free: Challenges, Successes, and Lessons Learned for the Quest to Eradicate Polio
Despite no reported cases of polio in two years in Nigeria, on August 11, 2016, the WHO announced two new wild polio cases had been discovered in Northern Nigeria. While undoubtedly a setback, Nigeria has mobilized its immunization forces and will look to take heed of four key lessons learned during almost three decades of anti-polio efforts: 1) establishing and sustaining trust is critical to the success of eradication campaigns; 2) frequent, independent monitoring and evaluation are key to tracking the progress of an intervention and making modifications; 3) holding all actors accountable is essential to pushing an intervention forward; and 4) contextualized health initiatives are key in fighting polio and other diseases. These lessons will reinforce a cohesive, multilateral strategy that builds on past successes to secure a polio-free Nigeria.
In the face of growing U.S. indifference to multilateral development institutions, China is stepping up. The circumstances around the creation of the Asian Infrastructure Investment Bank (AIIB) have usefully brought to light a longer trend that will ultimately lead to a diminution of U.S. leadership in the multilateral development system.
Policymakers in most OECD countries face the challenge that they must ﬁght people smuggling while retaining control of migration ﬂows. An innovative policy of selling visas combined with enforced sanctions on employers and employees for illegal working can control migration ﬂows and put smugglers out of business.
This paper considers new UK policy opportunities for global development that arise from Brexit. We look for the “triple win”: what policy opportunities, enabled or enhanced by Brexit, are good for the world, good for the UK, and also good for the UK process of negotiating out of the EU? In doing so, we find four clear winners and four runners-up.
In spite of the attention received by the short-term crisis, Brazil faces a more serious problem, namely a long-term lack of growth or even perspectives of growth. If Brazil reforms its economic institutions and puts an end to state capitalism and economic nationalism, its labor productivity will grow again at high rates.
Disaster aid is often too little, too late. Pressure on aid budgets is prompting donors to find ways to handle more crises with less funding. But the current model of discretionary, ex-post disaster aid is increasingly insufficient for these growing needs, and does little to create incentives for governments in affected countries and donors to invest in risk reduction and resilience. This framing paper sets out how the global community can do better.
Global health action has been remarkably successful at saving lives and preventing illness in many of the world’s poorest countries. This is a key reason that funding for global health initiatives has increased in the last twenty years. Nevertheless, financial support is periodically jeopardized when scandals erupt over allegations of corruption, sometimes halting health programs altogether.
How Does OPIC Balance Risks, Additionality, and Development? Proposals for Greater Transparency and Stoplight Filters
As the U.S. government’s development finance institution, the Overseas Private Investment Corporation (OPIC) provides investors with financing, political risk insurance, and support for private equity investment funds when commercial funding cannot be obtained elsewhere. Its mandate is to mobilize private capital to help address critical development challenges and to advance U.S. foreign policy and national security priorities. However, balancing risks, financial needs, and development benefits comes with tradeoffs.
The Millennium Challenge Corporation (MCC) was established to provide large-scale grant funding to poor, well-governed countries to support their efforts to reduce poverty and generate economic growth. However, the statutory definition of which countries are “poor” for the purposes of MCC candidacy is inadequate. Based solely on GNI per capita with a rigid graduation threshold, it does not portray a clear picture of broad-based well-being in a country. Using a new, comprehensive country-level dataset of median consumption/income, the authors explore the merits and limitations of such a measure and suggest how it might be applied as an additional determinant of MCC candidacy.
The Overseas Private Investment Corporation (OPIC) is the US government's development finance institution. Balancing risks, financial needs, and development benefits is riven with numerous tensions, statutory restrictions, and tradeoffs. This raises an important policy question - how well does OPIC’s actual portfolio balance these competing goals? Since much data about the OPIC portfolio is unavailable in an accessible format, we built the OPIC Scraped Portfolio database to address this question.
The debate over genetically modified organisms (GMOs) has been raging for twenty years and there is still more heat than light around the topic. While some developing countries have embraced the technology, much of Africa has followed the European Union’s precautionary approach. While not a panacea, GMOs could be part of a new green revolution in Africa if governments address the policy and institutional weaknesses that prevented Africa from participating in the first one, and if GM technology continues to develop.
There is no question that the “mega-regional” trade deals in the Pacific and across the Atlantic are big. If completed and implemented, they will cover a large portion of global trade and investment. This paper examines the TPP text to identify provisions that are more or less development-friendly, especially for Vietnam, which is the poorest signatory to the deal by far. It concludes with with recommendations for US and EU policymakers that would mitigate potential negative effects for developing countries and for the multilateral trading system, including rules of origin that minimize trade diversion.
The Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership, if completed and implemented, will cover a large portion of global trade and investment, but they will exclude the majority of developing countries.
Corruption is an obstacle to social and economic progress in developing countries yet we still know very little about the effectiveness of anti-corruption efforts and their impact on development impact. This essay looks at 25 years of efforts by foreign aid agencies to combat corruption and proposes a new strategy which could leverage existing approaches by directly incorporating information on development results.