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Temporary Work Visas as US-Haiti Development Cooperation: A Preliminary Impact Evaluation

1/23/17

We report a small-sample, preliminary evaluation of the economic impact of temporary overseas work by Haitian agricultural workers. We find that the effects of matching new seasonal agricultural jobs in the US with Haitian workers differs markedly from the effects of more traditional forms of assistance to Haiti, in three ways: The economic benefits are shared roughly equally between Haiti and the United States; these benefits are very large, including raising the value of Haitian workers’ labor by a multiple of fifteen; and the portion of the benefits accruing to Haiti is uncommonly well-targeted for the direct benefit of poor Haitian households.

Shared Harvest: Temporary Work Visas as US-Haiti Development Cooperation

1/23/17

We estimate the economic effects of short-term work by a small sample of farmers from Haiti in the United States, where no US workers are available. We then compare these to the effects of more traditional assistance. We find that these work opportunities benefit Haitian families much more directly, and to a dramatically greater extent, than more traditional forms of assistance—raising workers’ current earnings on average by multiple of 15.

Expanding Women’s Role in Developing Technology: Increasing Productivity, Improving Lives

1/19/17

Just as the evidence suggests that a more gender-inclusive political system may lead to better policies for women and girls and integrating women into corporate boards may mean reaching new consumers, there is a case to be made for increasing women’s presence in developing technology and innovation. Incorporating more women into technology sectors is likely to 1) increase productivity, 2) offers women a source of high-quality jobs, and 3) may have knock-on benefits for female consumers of technology, whose needs are more likely to be taken into account.

The Dangers of Deal Making for Development

1/17/17

Private sector development has long been viewed as essential for economic growth in developing countries, and the US role in promoting it has focused mostly on how developing country governments could best set a policy environment that made it possible. But let’s consider the risks of concentrating too heavily on the private sector. What could go wrong with an agenda that is centered on “deal making for development”?

Implementing Ownership at USAID and MCC: A US Agency-Level Perspective (Brief)

1/12/17

This brief considers how the United States Agency for International Development (USAID) and the Millennium Challenge Corporation (MCC) conceptualize ownership and apply the concept in practice. We focus on three pillars: ownership of priorities (the willingness and ability of donors to align their efforts with country priorities); ownership of implementation (the degree to which donors involve local partners in the design, implementation, monitoring, and evaluation of programs); and ownership of resources (the degree to which a partner country contributes its own finances to the objectives receiving donor support).

Beyond Brexit: Four Steps to Make Britain a Global Leader on Trade for Development

1/12/17

This paper looks at how the UK can, after Brexit, develop a world-leading trade for development policy. It uses a systematic assessment of how rich country trade policies affect developing countries to identify the leading approaches used elsewhere. It then identifies and describes four key steps: i) eliminating or lowering tariffs; ii) improving preferential access for the very poorest countries; iii) cutting red tape at the border; and iv) enhancing the effectiveness of its aid for trade. These steps would enable the UK to improve substantially on the approach taken by the EU and other countries, benefit UK consumers and businesses, and set a new standard in trade policy for development.

Author's ancestral home in the village of Jakhan.

Of Sun Gods and Solar Energy

1/6/17

My family’s ancestral home in the village of Jakhan in India’s western state of Rajasthan exemplifies the challenges and opportunities of facilitating energy access in India. Though Rajasthan is perhaps the most densely populated desert on the planet, near Jakhan the population is spread more thinly, and electrification has been slow in coming. The dreams of people such as my grandparents, who wished to see central electricity access arrive at their doorstep, were unfortunately not met in time. My grandfather filed an application to have a grid connection reach his home in the 1970s. The connection came three decades after his passing. Today, over 300 million people still lack access to reliable centralized electricity in this nation of 1.2 billion people.

Commitment to Development Index 2016

1/5/17

The Commitment to Development Index ranks 27 of the richest countries on their dedication to policies that benefit poorer nations. Finland takes first in 2016. The UK moves down three places to 9th while the United States moves up one to 20th. Switzerland takes last of 27.

Analytic Foundations: Measuring the Redistributive Impact of Taxes and Transfers - Working Paper 446

1/3/17
Ali Enami , Nora Lustig and Rodrigo Aranda

This paper provides a theoretical foundation for analyzing the redistributive effect of taxes and transfers for the case in which the ranking of individuals by pre-fiscal income remains unchanged. We show that in a world with more than a single fiscal instrument, the simple rule that progressive taxes or transfers are always equalizing not necessarily holds, and offer alternative rules that survive a theoretical scrutiny. In particular, we show that the sign of the marginal contribution unambiguously predicts whether a tax or a transfer is equalizing or not.

The Impact of Taxes and Social Spending on Inequality and Poverty in El Salvador - Working Paper 447

1/3/17
Margarita Beneke , Nora Lustig and José Andrés Oliva

We conducted a fiscal impact study to estimate the effect of taxes, social spending, and subsidies on inequality and poverty in El Salvador, using the methodology of the Commitment to Equity project. Taxes are progressive, but given their volume, their impact is limited. Direct transfers are concentrated on poor households, but their budget is small so their effect is limited; a significant portion of the subsidies goes to households in the upper income deciles, so although their budget is greater, their impact is low. The component that has the greatest effect on inequality is spending on education and health. Therefore, the impact of fiscal policy is limited and low when compared with other countries with a similar level of per capita income. There is room for improvement using current resources.

Why Increasing Female Migration from Gender-Unequal Countries Is a Win for Everyone

12/20/16

Available evidence points to a superior payoff to female migration from gender-unequal countries to more gender-equal countries for the migrant, the sending country, and recipient country alike. This suggests that a policy by relatively gender-equal countries to provide entry preference to female economic migrants from gender-unequal countries would combine development impact and economic self-interest.

The Impact of Anti-Money Laundering Regulation on Payment Flows: Evidence from SWIFT Data - Working Paper 445

12/20/16

Regulatory pressure on international banks to fight money laundering (ML) and terrorist financing (TF) increased substantially in the past decade. We find countries that have been added to a high-risk greylist face up to a 10% decline in the number of cross border payments received from other jurisdictions, but no change in the number sent. We also find that a greylisted country is more likely to see a decline in payments from other countries with weak AML/CFT institutions. We find limited evidence that these effects manifest in cross border trade or other flows. Given that countries that are placed on these lists tend to be poorer on average, these impacts are likely to be more strongly felt in developing countries.

An Agenda for Harmful Cultural Practices and Girls' Empowerment

12/12/16

Harmful cultural practices and norms—even the seemingly non-violent ones that consign girls to bear the brunt of household labor—have consequences for nutrition, health, educational achievement, sexual abuse, and child marriage. Accordingly, it is critical to develop a research agenda that places girls aged 0 to 10 at the center of policy to address harmful practices. Both as an issue of gender-based violence and as an impediment to girls reaching their potential, we need greater commitments to country-level data, informed and enforced legislative action, and innovative methods to challenging and shifting socially shared definitions of girlhood.

The Use and Utility of US Government Approaches to Country Ownership: New Insights from Partner Countries

12/12/16

Over the last decade, the US government has repeatedly expressed its commitment to incorporating “country ownership” into the way it designs and delivers foreign assistance.  This paper draws upon perception-based data from government officials and donor staff in 126 developing countries to explore how development policymakers and practitioners evaluate US government efforts that promote (or hinder) country ownership and the extent to which these efforts are perceived as useful.  While the US government does pursue some approaches considered favorable for country ownership, practices that put countries more firmly in the driver’s seat are underutilized compared to their perceived utility.

MCC Country Eligibility Predictions for FY2017

12/6/16

The last board meeting of the Millennium Challenge Corporation (MCC) under the Obama administration will take place on December 13, 2016. On the docket? Selecting which countries will be eligible for MCC assistance for fiscal year (FY) 2017. For the fourteenth year running, CGD’s Rethinking US Development Policy Initiative discusses the overarching issues that will impact the decisions and offers its predictions of which countries will be selected.

Internationally Comparable Mathematics Scores for Fourteen African Countries - Working Paper 444

12/2/16

Internationally comparable test scores play a central role in both research and policy debates on education. However, the main international testing regimes, such as PISA, TIMSS, or PIRLS, include very few low-income countries. For instance, most countries in Southern and Eastern Africa have opted instead for a regional assessment known as SACMEQ. This paper exploits an overlap between the SACMEQ and TIMSS tests—in both country coverage, and questions asked—to assess the feasibility of constructing global learning metrics by equating regional and international scales. I find that learning levels in this sample of African countries are consistently (a) low in absolute terms; (b) significantly lower than predicted by African per capita GDP levels; and (c) converging slowly, if at all, to the rest of the world during the 2000s. Creating test scores which are truly internationally comparable would be a global public good, requiring more concerted effort at the design stage.

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