Assorted on India
14 years ago
Economics, global development,current affairs, globalization, culture and more rants on the dismal science, and the society. "As usual, it's like being a kid in a candy store. I'm awed by the volume of high-quality daily links in general. Thanks!" - Chris Blattman
...it is to me sadder still how atrociously written this letter is. These people devote their lives to writing on social issues, and teaching freshmen (including mine) how to think and write clearly. Yet it’s awful.
"People often excuse bad writing by saying that they know what they mean, and simply have difficulty expressing it. That is nonsense. If you cannot state a preposition clearly and unambiguously, you do not understand it.I took that lesson to heart. I learned that trying to write something clearly and unambiguously was the best way to find errors and omissions in my reasoning and clarify my own thought.
It was in a letter to Gary Becker in May 1955, when I was in Britain, referring to a draft of his thesis that he had sent to me: Nine times out of ten, I wrote after criticizing his exposition, sloppy writing reflects (and advertises) sloppy thinking.
-Preparation of micro-simulation model (MEGC) for analysis of impacts of exogenous shocks and policy measures on poverty and income distribution (World Bank financing)
-Macro-sectoral forecasts model, as tool for analysis of growth-oriented sectors.
Mali’s MTEF had the top “A” rating in its 2004 HIPC tracking exercise (question 7). However, a more recent assessment finds inadequate integration among the many tools developed to support reforms, including the MTEF, the sector MTEFs, the macroeconomic framework, the new budget nomenclatures, and the multi-year investment program. Timetables of the different exercises aren’t properly synchronized. Sector MTEFs are prepared mainly to satisfy donors, and are separate from the program budget process.
Mali is vulnerable to external or natural exogenous shocks. Without the fiscal space to respond rapidly to ad hoc demands, there is a risk that macroeconomic stability and the development program will be undermined. The Government considers that in the mediumterm, a zero basic balance is the most appropriate budget target for responding to emergent needs. In 2008 the deficit in the basic balance should be 1.9 percent of GDP, compared with 1.1 percent in 2007, reflecting the budgetary impact of the terms of trade. The aim is to reduce the deficit to 1 percent of GDP in 2009 and achieve balance in 2010. In order to respect the programming of expenditure to reduce poverty, measures have been implemented to correct the downward trend in the tax to GDP ratio observed since 2005....
Improving the quality of public spending remains a top priority. In coordination with our external partners, measures have been included in the Government Action Program for Improving and Modernizing Public Finance (PAGAM-GFP) to respond, among other things, to the conclusions of the Public Expenditure and Financial Accountability (PEFA) exercise. An action plan incorporating PEFA measures has been prepared for 2008. Efforts are under way to pursue implementation of the PAGAM-GFP/PEFA action plan, in particular by completing the connection of authorizing officers (ministries, institutions, regions) to the computerized expenditure system; improving the execution rate of programs by devolving parts of the Procurement Office to the regions; reviewing the Procurement Code; shifting gradually all donors from projects to budget support; and putting in place an economic and financial analysis unit to help strengthen the capacities of the Finance Committee of the National Assembly.
- Ministry review of budget-programmes
- Preparation of macro-fiscal framework as part of the Medium Term Budget Framework (MTBF)
- Preparation of Budget Circular (including ceilings and donors disbursement projections)
- Preparation by sector ministries of draft annual budget estimates, including the detailed budget-programmes, on the basis of sector expenditure ceilings in line with the CBMTMEF review of ministries’ budget requests, including the budget-programmes
- Budget negotiations and finalisation of draft Budget d’Etat
- Adoption of draft Budget by Council of Ministers
- Government submits the draft Budget d’Etat to the National Assembly
- Examination and adoption of the Loi de Finances by the National Assembly
Only recently, however, have economists turned their attention to vengeance and tried to measure it in the real world. In a working paper published last month on the Web site of the National Bureau of Economic Research (www.nber.org), Naci H. Mocan, an economist at Louisiana State University, gathered information on 89,000 people in 53 countries to draw a map of vengefulness. What he found was that among the most vengeful are women, older people, the poor and residents of high-crime areas.
“There was a question of whether or not we can quantify vengeful feelings in a scientific fashion,” Mr. Mocan said. “It’s the first analysis of the issue looking at actual data.”
It turns out that personal attributes — age, income, gender — as well as the characteristics of one’s culture and country contribute to a person’s desire for revenge, Mr. Mocan said. “A feeling such as vengeance,” he said, “which can be considered primal, is nonetheless influenced by the economic and social circumstances of the person and the country he or she lives in.”
For economists, Mr. Mocan’s work, while still preliminary, opens up a new area for exploration. “I think this is really important research,” said Daniel Houser, a professor at George Mason University specializing in experimental economics and emotion. “I’m not aware of any work in economics that tries to capture individual differences in vengeful feelings.”
In the last couple of decades a lot of work has shown how important trust and reciprocity are in developing efficient markets, Mr. Houser explained, and what helps to create trust is punishment. Yet punishment can also spiral out of control, and people can get stuck in a retaliatory cycle, just as in a nasty divorce or a longstanding family feud.
“How do you calibrate the proper level of punishment to promote effective market relations?” Mr. Houser asked. It may turn out, he said, that “how much you want to punish is connected to the likelihood of creating a more formal market economy.”
Mr. Mocan collected data compiled by a United Nations Interregional Crime and Justice Research Institute survey from the 1990s and 2000. People were asked what would be an appropriate sentence for a 20-year-old man found guilty of stealing a color television if it was his second offense. The punishments ranged from alternatives to prison through two to six months in jail, all the way to a life sentence. Mr. Mocan tried to take account of the different values of a television in different countries, the effectiveness of the legal system and the going rate, if you will, for other crimes.
In China, Romania and Botswana, for example, nearly 40 percent of participants preferred a prison sentence of four or more years. In South Africa the rate is 25 percent; 18 to 20 percent in Egypt, Ukraine and Paraguay; 16 percent in Canada and Indonesia; 12 percent in the United States and the Philippines; about 4 percent in Norway and Slovenia; and 1 percent in Belgium and Spain.
Within a given country, people who have been victims of the same kind of crime (here, a burglary) tend to be more vengeful, but not if they have been victims of a different crime, like mugging.
Most of Mr. Mocan’s findings confirm what researchers in different disciplines have already found: that vengeful feelings are stronger in countries with low levels of income and education, a weak rule of law and those who recently experienced a war or are ethnically or linguistically fragmented. Anthropologists tend to believe that vengeful feelings were useful in binding a family or group together in early human society. They were protective devices before states were established and did the job of punishing wrongdoers.
“The results make good intuitive sense, confirming what we already suspected,” said Tyler Cowen, the author of “Discover Your Inner Economist: Use Incentives to Fall in Love, Survive Your Next Meeting and Motivate Your Dentist.”
Cross-national evidence identifies a nuanced role for economic development in reducing terrorist activity. Chapters by Blomberg and Hess support policy maker conclusions that poverty drives terrorism, finding that higher incomes impede terrorist activity. Krueger and Laitin, on the other hand, find little economic foundation for terrorist origins. Why the different conclusions? Krueger and Laitin investigate the overall effects of income across all countries. In “From (No) Guns to Butter,” Blomberg and Hess argue that the effects may differ between richer and poorer countries. Looking at these two groups of countries separately, they find that higher incomes significantly reduce the threat of terrorism in poorer countries, while the opposite holds in richer countries. Pooling all countries, the two effects would cancel out. The aggregate result may then mask the important role of economic development to offset terrorist threats to poorer countries. Because of methodological and data challenges, however, we must recognize that the issue is not yet resolved.
In contrast to the lack of conclusive evidence on whether the poverty of nations is a determinant of terrorism, the evidence is more uniform that individual poverty does not make people more likely to support or participate in terrorist activity. In a survey of 6,000 Muslims from 14 countries, the poorest respondents were the least sympathetic to terrorism (Fair and Haqqani 2006). Krueger and Laitin, Laitin and Shapiro, and Llussá and Tavares, in this volume, review evidence showing that individual terrorists are neither poor nor uneducated.
The second question of concern to this volume’s contributors is whether weak governance and closed political systems foment terrorism. Results in Krueger and Laitin and Blomberg and Hess, though using substantially different approaches, coincide in finding that terrorism is more likely to originate in countries that exhibit closed political systems. Their findings lend strong support to policy maker assertions that good governance and political responsiveness to citizens are fundamental deterrents of terrorism.
Krueger and Laitin and Blomberg and Hess also agree that the economic characteristics of countries affect whether they will be the target of terrorist activity. This leads to a provocative dichotomy. The origins of terrorism seem to be in countries that suffer from political oppression; the targets are countries that enjoy economic success....
The conclusion that terrorists are driven not by personal poverty, but by the political and economic climate of the countries from which they come raises new questions. Why should the social environment be more important than individual income? Why are terrorist organizations more common in countries with difficult political climates? In their chapter, Laitin and Shapiro provide reason to believe that the answer lies in the challenges of constructing a terrorist organization. Even though terrorism is not a purely ideological phenomenon, terrorist organizations depend on ideologically motivated, educated recruits. Unlike, for example, trench warfare, terrorism requires individual initiative and the exercise of judgment. Close monitoring by terrorist leaders of their “employees” is not possible. Ideological commitment helps solve part of this contracting problem. So also does an emphasis on recruiting well-educated individuals, who are most likely to come from more prosperous families.
Laitin and Shapiro emphasize that terrorism is not simply the direct outcome of irrational behavior. Terrorism is a complex strategy to achieve economic and political goals, having roots in distinct cultural and religious differences and using ideological commitment to sharpen its organization. Their conclusion is not surprising and could extend to the role of cultural and religious factors in social conflict throughout history. The One Hundred Years War is just one example of prolonged conflict in the West in which religious motivations were intertwined with other serious economic and political differences.
Their argument explains why terrorists themselves are rarely poor and why terrorist organizations are most likely to emerge in politically closed countries. On the one hand, terrorist organization is difficult and requires individuals with substantial human capital, which is more prevalent in families rich enough to educate their children well. On the other hand, to persuade such well-educated, relatively prosperous individuals to join a terrorist organization in democratic countries is difficult: the ideological payoffs are fewer and peaceful alternatives to terrorist methods are more abundant and effective. This also explains the paradox that individual poverty is less associated with terrorist activities than national poverty. National incomes and the political responsiveness of national governments are closely related: political environments that are repressive enough to facilitate terrorist recruitment are less likely to attract substantial investment and entrepreneurial activity.
Summary: The rapid rise in food prices has been a burden on the poor in developing countries, who spend roughly half of their household incomes on food. This paper examines the factors behind the rapid increase in internationally traded food prices since 2002 and estimates the contribution of various factors such as the increased production of biofuels from food grains and oilseeds, the weak dollar, and the increase in food production costs due to higher energy prices. It concludes that the most important factor was the large increase in biofuels production in the U.S. and the EU. Without these increases, global wheat and maize stocks would not have declined appreciably, oilseed prices would not have tripled, and price increases due to other factors, such as droughts, would have been more moderate. Recent export bans and speculative activities would probably not have occurred because they were largely responses to rising prices. While it is difficult to compare the results of this study with those of other studies due to differences in methodologies, time periods and prices considered, many other studies have also recognized biofuels production as a major driver of food prices. The contribution of biofuels to the rise in food prices raises an important policy issue, since much of the increase was due to EU and U.S. government policies that provided incentives to biofuels production, and biofuels policies which subsidize production need to be reconsidered in light of their impact on food prices.
Commodity Price Surge Impact
Impact on African Economies
Factors Behind Oil Price Surge
Jeddah Meeting on Oil
Policy Response to Price Surge
Haiti Interview
Norway’s Sovereign Fund
Mexico: Achieving Full Potential
Switzerland’s Monetary Policy
Mauritius: New Growth Miracle?
One of the beauties of “Encounters at the End of the World” is that all the furry and floating animals are no more wondrous than the bipeds tramping through and around McMurdo: the linguist turned philosopher, the banker turned bus driver and the female adventurer who, for drama and odd entertainment, likes to have herself zipped up in a carryall bag. (She’s her own baggage.) Mr. Herzog opens his mind, heart and eyes to all these wayfarers who — despite the persistent strain of melancholy that touches each and every person who appears on camera — seem eerily at peace at the bottom of the world. One reason may be that, like Mr. Herzog, more than a few evince a deep-felt pessimism about both the present and the future.
If this were a nature documentary like any other, the casual talk about global warming and other calamities might cast shadows across this bright expanse. But there’s something about Mr. Herzog — including the accidental if now well-practiced comedy that colors even his most dramatic pronouncements — that inevitably keeps his pictures from growing too dark. One reason is beauty, which in his hands has a way of keeping the worst at bay; it is, after all, hard to fully despair in the face of so much of the natural world’s splendors. Another reason, I think, has to do with Mr. Herzog’s seemingly unshakable faith in human beings, who for all their misdeeds at times reach a state of exaltedness. They soar — just like that jellyfish.
Statisticians, sexy career of the next decade- Hal Varian
dozens of albinos have been murdered and their bodies dismembered as some witch doctors claim that the use of albino body parts can help people to become rich
Even when developed to the ultimate stage of perfection, governmental accounting cannot become a guaranty of good government. At best, it can never be more than a valuable tool for promotion of sound financial management. It does not offer a panacea for all the ills that beset representative government; nor will it fully overcome the influence of disinterested, uninformed citizens. It cannot be substituted for honesty and moral integrity on the part of public officials; it cannot eliminate the demands of selfish interests, whether in the form of individual citizens, corporations, or the pressure groups which always abound to influence government at al levels-(Mikesell, 1956: 10).
The resulting Measuring Impact Framework is designed to help companies understand their contribution to society and use this understanding to inform their operational and long-term investment decisions and have better-informed conversations with stakeholders.
A longtime prosecutor who drew rave reviews from his supervisors was passed over for an important counterterrorism slot because his wife was active in Democratic politics, and a much-less-experienced lawyer with Republican leanings got the job, the report said.
Another prosecutor was rejected for a job in part because she was thought to be a lesbian. And a Republican lawyer got high marks at his job interview because he was found to be sufficiently conservative on the core issues of “god, guns + gays.”
The report, prepared by the Justice Department’s inspector general and its internal ethics office, centered on the misconduct of a small circle of aides to Mr. Gonzales, including Monica Goodling, a former top adviser to the attorney general, and Kyle Sampson, his former chief of staff. It also found that White House officials were actively involved in some hiring decisions.
Which raises the question: why do we need external rules to do this? Why can’t the electorate do it? Younger voters should see that big borrowing is merely deferred taxation, and punish governments for imposing it. And older voters who care about their children and grandchildren should also punish governments.
So why don’t they? One possibility is that our electoral system is just too clumsy to permit them to express their discontent; we are only ever offered a choice of job-lots of policies, not individual ones.
Another possibility is that, for all our drooling and drivelling, we as a nation don’t actually care about our children.
Whichever it is, let’s be clear. If we need fiscal rules, it is only because of moral and/or political failings. But are technocratic constraints really an adequate substitute for adequate political structures or more sophisticated moral sensibilities?
The total economic losses amount to about 2.7% of the projected 2008 GDP, with the effects of the cyclone concentrated on a region important for agriculture and fishing in Myanmar.
Recovery needs, which are estimated at just over a total of US$1 billion over the next 3 years, include the most urgent priorities of significant food, agriculture, housing, basic services and support to communities for restoring their livelihoods and rebuilding assets
“Learning is not to be found on a printout,” David McCullough, the Pulitzer Prize-winning biographer, said in a commencement address at Boston College in May. “It’s not on call at the touch of the finger. Learning is acquired mainly from books, and most readily from great books.”
A 56-year-old man from the Midwestern US state of Wisconsin has been arrested after shooting his lawn mower in his garden because it would not start....
Police officers said Mr Walendowski had told them: "It's my lawn mower and my yard, so I can shoot it if I want."
For or against bombardment, Israel never thinks in terms of beyond tomorrow. It acts like a person who puts buckets in a house with a leaky roof instead of thoroughly fixing the roof. So we bombard Iran, and even if it is successful and we do not have to pay a heavy price for it - a dubious scenario - what happens then? What will happen when Egypt wants a bomb? Will we bomb again? And Saudi Arabia, Jordan, Syria and Iraq? And perhaps Hezbollah has some "dirty bomb" or other? And will we "allow" Turkey to go nuclear? Will we bombard and bombard, and live forever by bombardment?
Iran’s leaders would do well to rethink their gamble and suspend their nuclear program. Bar this, the best they could hope for is that Israel’s conventional air assault will destroy their nuclear facilities. To be sure, this would mean thousands of Iranian casualties and international humiliation. But the alternative is an Iran turned into a nuclear wasteland. Some Iranians may believe that this is a worthwhile gamble if the prospect is Israel’s demise. But most Iranians probably don’t.
People of Berlin – and people of the world – the scale of our challenge is great. The road ahead will be long. But I come before you to say that we are heirs to a struggle for freedom. We are a people of improbable hope. With an eye toward the future, with resolve in our hearts, let us remember this history, and answer our destiny, and remake the world once again.
China is the world’s fastest growing economy and is also the second largest. However, the official estimates of the Chinese National Bureau of Statistics exaggerate GDP growth and need adjustment to conform to international norms as set out in the 1993 System of National Accounts (SNA). This paper presents and discusses the necessary adjustments. The two major contributions are new volume indices for the industrial sector and for "non-material" services. Finally, in order to measure the level of Chinese GDP in internationally comparable terms, the authors use a measure of purchasing power parity (PPP) instead of the exchange rate.
A FEW years ago, a self-described “militant liberal” named Val Curtis decided that it was time to save millions of children from death and disease. So Dr. Curtis, an anthropologist then living in the African nation of Burkina Faso, contacted some of the largest multinational corporations and asked them, in effect, to teach her how to manipulate consumer habits worldwide.
Dr. Curtis, now the director of the Hygiene Center at the London School of Hygiene & Tropical Medicine, had spent years trying to persuade people in the developing world to wash their hands habitually with soap. Diseases and disorders caused by dirty hands — like diarrhea — kill a child somewhere in the world about every 15 seconds, and about half those deaths could be prevented with the regular use of soap, studies indicate.
But getting people into a soap habit, it turns out, is surprisingly hard.
To overcome this hurdle, Dr. Curtis called on three top consumer goods companies to find out how to sell hand-washing the same way they sell Speed Stick deodorant and Pringles potato chips. ....
he companies that Dr. Curtis turned to — Procter & Gamble, Colgate-Palmolive and Unilever — had invested hundreds of millions of dollars finding the subtle cues in consumers’ lives that corporations could use to introduce new routines.
If you look hard enough, you’ll find that many of the products we use every day — chewing gums, skin moisturizers, disinfecting wipes, air fresheners, water purifiers, health snacks, antiperspirants, colognes, teeth whiteners, fabric softeners, vitamins — are results of manufactured habits. A century ago, few people regularly brushed their teeth multiple times a day. Today, because of canny advertising and public health campaigns, many Americans habitually give their pearly whites a cavity-preventing scrub twice a day, often with Colgate, Crest or one of the other brands advertising that no morning is complete without a minty-fresh mouth.
A few decades ago, many people didn’t drink water outside of a meal. Then beverage companies started bottling the production of far-off springs, and now office workers unthinkingly sip bottled water all day long. Chewing gum, once bought primarily by adolescent boys, is now featured in commercials as a breath freshener and teeth cleanser for use after a meal. Skin moisturizers — which are effective even if applied at high noon — are advertised as part of morning beauty rituals, slipped in between hair brushing and putting on makeup.
As one of the Bank's team which organized the Tiger Event on June 9 and the author of the blog to which you link, let me give my perspective on this reasonable question. I regard biodiversity protection (e.g. of tigers) as an integral part of development and is part of our obligation to support countries which have signed the Convention on Biological Diversity. The continued survival of wild tigers is a good indicator of sound forest management, rural development strategies, infrastructure development, and governance. The conservation of biodiversity (and other global public goods is a major part of the sustainability agenda) and this is clearly recognized in the MDGs. Biodiversity conservation can also produce significant co-benefits to communities living in and around natural habitats. All the biodiversity work we support is done with a view to social condition and social impact and as such is an integral part of poverty alleviation and economic growth. Details of our large portfolio of biodiversity projects can be found on www.worldbank.org/biodiversity.
"... The mobster arranged for Kennedy to spend an afternoon with "three gorgeous prostitutes." Unbeknownst to Kennedy, the suite was outfitted with a two-way mirror that ..."
"... At the Comodoro-the hotel where Senator Kennedy had his afternoon orgy-an exhibition was sometimes held for special guests. Attorney Frank Ragano remembered being taken there by Martin ..."
These findings indicate that IMF economic programs are associated with significantly worsened tuberculosis control in post-communist Central and Eastern European and former Soviet Union countries, independent of other political, health, and economic changes in these countries. Further research is needed to discover exactly which aspects of the IMF programs were associated with the adverse effects on tuberculosis control reported here and to see whether IMF loans have similar effects on tuberculosis control in other countries or on other non–tuberculosis-related health outcomes. For now, these results challenge the proposition that the forms of economic development promoted by the IMF necessarily improve public health. In particular, they put the onus on the IMF to critically evaluate the direct and indirect effects of its economic programs on public health.
The United Nations Office on Drugs and Crime was arriving at the same conclusion. Later that year, they issued a report linking the drug trade to the insurgency and made a controversial statement: “Opium cultivation in Afghanistan is no longer associated with poverty — quite the opposite.” The office convincingly demonstrated that poor farmers were abandoning the crop and that poppy growth was largely confined to some of the wealthiest parts of Afghanistan. The report recommended that eradication efforts be pursued “more honestly and more vigorously,” along with stronger anticorruption measures. Earlier this year, the U.N. published an even more detailed paper titled “Is Poverty Driving the Afghan Opium Boom?” It rejected the idea that farmers would starve without the poppy, concluding that “poverty does not appear to have been the main driving factor in the expansion of opium poppy cultivation in recent years.”
The U.N. reports shattered the myth that poppies are grown by destitute farmers who have no other source of income. They demonstrated that approximately 80 percent of the land under poppy cultivation in the south had been planted with it only in the last two years. It was not a matter of “tradition,” and these farmers did not need an alternative livelihood. They had abandoned their previous livelihoods — mainly vegetables, cotton and wheat (which was in severely short supply) — to take advantage of the security vacuum to grow a more profitable crop: opium....
That is where we are today. The solution remains a simple one: execute the policy developed in 2007. It requires the following steps:
1. Inform President Karzai that he must stop protecting drug lords and narco-farmers or he will lose U.S. support. Karzai should issue a new decree of zero tolerance for poppy cultivation during the coming growing season. He should order farmers to plant wheat, and guarantee today’s high wheat prices. Karzai must simultaneously authorize aggressive force-protected manual and aerial eradication of poppies in Helmand and Kandahar Provinces for those farmers who do not plant legal crops.
2. Order the Pentagon to support this strategy. Position allied and Afghan troops in places that create security pockets so that Afghan counternarcotics police can arrest powerful drug lords. Enable force-protected eradication with the Afghan-set goal of eradicating 50,000 hectares as the benchmark.
3. Increase the number of D.E.A. agents in Kabul and assist the Afghan attorney general in prosecuting key traffickers and corrupt government officials from all ethnic groups, including southern Pashtuns.
4. Get new development projects quickly to the provinces that become poppy-free or stay poppy free. The north should see significant rewards for its successful anticultivation efforts. Do not, however, provide cash to farmers for eradication.
5. Ask the allies either to help in this effort or stand down and let us do the job.