03. Journals
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These are journal articles published in World Bank journals as well as externally by World Bank authors.
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Publication
Introduction to the Special Issue “Political economic perspectives of the Israeli-Palestinian Conflict”
(Taylor and Francis, 2020-10-06) Miaari, Sami H. ; Calì, MassimilianoThe Israeli-Palestinian conflict is the world’s most protracted contemporary conflict and one which has gained international prominence throughout the years. As a result of the Six Days War in 1967, the West Bank and the Gaza Strip fell under Israeli control. The conflict has evolved through ebbs and flows of violence including two Palestinian uprising against Israeli control (the First and Second Intifada). These have led to tens of thousands of Palestinian and thousands of Israeli victims. There is a growing theoretical and empirical literature analyzing the Israeli-Palestinian conflict. In this review, we discuss a selected number of studies that are most closely related to the topics covered by the articles in this special issue. -
Publication
The Political Economy of Multidimensional Child Poverty Measurement: A Comparative Analysis of Mexico and Uganda
(Taylor and Francis, 2020-03-11) Cuesta, Jose ; Biggeri, Mario ; Hernandez-Licona, Gonzalo ; Aparicio, Ricardo ; Guillen-Fernandez, YedithAs part of the 2030 Agenda, much effort has been exerted in comparing multidimensional child poverty measures both technically and conceptually. Yet, few countries have adopted and used any of these measures in policymaking. This paper explores the reasons for this absence from a political economy perspective. It develops an innovative political economy framework for poverty measurement and a hypothesis whereby a country will only produce and use reliable and sustainable multidimensional child poverty (MDCP) measures if and only if three conditions coalesce: consensus, capacity and polity. We explore this framework with two relevant case studies, Mexico and Uganda. Both countries satisfy the capacity condition required to measure MDCP but only Mexico satisfies the other two conditions. Our proposed political economy framework is normatively relevant because it identifies the conditions that need to change across multiple contexts before the effective adoption and use of an MDCP measure becomes more likely. -
Publication
Preferential Resource Spending under an Employment Guarantee: The Political Economy of MGNREGS in Andhra Pradesh
(Published by Oxford University Press on behalf of the World Bank, 2018-10) Sheahan, Megan ; Liu, Yanyan ; Barrett, Christopher B. ; Narayanan, SudhaAre ostensibly demand-driven public works programs with high levels of safeguards nonetheless susceptible to politi al influence?We investigate this conjecture using expenditure data at the local level from India’s National Rural Employment Guarantee Scheme. Focusing on one state where accountability and transparency mechanisms have been employed and implementation efforts have been widely applauded, we find no evidence of partisan-influenced spending before the 2009 election and find that the political leaning of a mandal played only a small part in fund distribution after the 2009 election. Most variation in public works expenditures is explained by the observed needs of potential beneficiaries, as the scheme intended. -
Publication
When Winners Feel Like Losers: Evidence from an Energy Subsidy Reform
(Published by Oxford University Press on behalf of the World Bank, 2017-06-01) Calvo-Gonzalez, Oscar ; Cunha, Barbara ; Trezzi, RiccardoIn 2011 the Government of El Salvador implemented a reform to the liquefied gas (LPG) subsidy that increased the welfare of households in all but the top two deciles of the income distribution. However, the reform turned out to be rather unpopular, including among winners. This paper relies on ad hoc household surveys conducted before the implementation and in the following two-and-a-half years to test which factors help explain the puzzle. The analysis uses probit regressions to show that misinformation (a negativity bias by which people with limited information inferred negative consequences), mistrust of the government's ability to implement the policy, and political priors explain most of the (un)satisfaction before implementation. Perceptions improved gradually—and significantly so—over time when the subsidy reception induced households to update their initial priors, although political biases remained significant throughout the entire period. The results suggest several implications with respect to policy reforms in cases where agents have limited information. -
Publication
Reforming Fossil Fuel Subsidies: Drivers, Barriers and the State of Progress
(Taylor and Francis, 2016-06-24) Rentschler, Jun ; Bazilian, MorganThis article outlines the current state of affairs in fossil fuel subsidy reform, and highlights its contribution at the nexus of climate policy, fiscal stability and sustainable development. It discusses common definitions, provides quantitative estimates, and presents the evidence for key arguments in favour of subsidy reform. The main drivers and barriers for reform are also discussed, including the role of (low) oil prices and political economy challenges. Commitments to subsidy reform by the international community are reviewed, as well as the progress at the country level. Although fossil fuel subsidy reform indeed plays a critical role in climate policy, experience shows that the rationale for such reforms is determined in a complex environment of political economy challenges, macro-economic, fiscal and social factors, as well as external drivers such as energy prices. The article synthesizes the key principles for designing effective reforms and emphasizes that subsidy reforms cannot only yield fiscal relief, but should also contribute to long-term sustainable development objectives. Areas for future research are also identified. -
Publication
Revisiting the 'Cash versus Food' Debate: New Evidence for an Old Puzzle?
(Published by Oxford University Press on behalf of the World Bank, 2016-02) Ugo, GentiliniThe longstanding “cash versus food” debate has received renewed attention in both research and practice. This paper reviews key issues shaping the debate and presents new evidence from randomized and quasi-experimental evaluations that deliberately compare cash and in-kind food transfers in ten developing counties. Findings show that relative effectiveness cannot be generalized: although some differences emerge in terms of food consumption and dietary diversity, average impacts tend to depend on context, specific objectives, their measurement, and program design. Costs for cash transfers and vouchers tend to be significantly lower relative to in-kind food. Yet the consistency and robustness of methods for efficiency analyses varies greatly. -
Publication
Handshake, No. 9 (April 2013)
(International Finance Corporation, Washington, DC, 2013-04) International Finance CorporationThis issue includes the following headings: investment - postwar promises; infrastructure - rebuilding seaports; services - telecoms triumph; economics - the cost of conflict; and interview - Francis Cooper, Claude Kayitenkore, and Melanne Verveer. -
Publication
Growth Strategies and Dynamics: Insights from Country Experiences
(World Bank, Washington, DC, 2008) El-Erian, Mohamed A. ; Spence, MichaelThe paper examines the challenges that developing countries face in accelerating and sustaining growth. The cases of China and India are examined to illustrate a more general phenomenon which might be called model uncertainty. As a developing economy grows, its market and regulatory institutions change and their capabilities increase. As a result, growth strategies and policies and the role of government shift. Further, as the models of economies in these transitional states are incomplete and because models used to predict policy impacts in advanced economies may not provided accurate predictions in the developing economy case, growth strategies and policies need to be responsive and to evolve as the economy matures. This has lead governments in countries that have sustained high growth to be somewhat pragmatic, to treat the policy directions that emerge from the advanced economy model with circumspection, to be somewhat experimental in seeking to accelerate export diversification, to be sensitive to risks, and as a result to proceed gradually in areas such as the timing and sequencing of opening up on the current and capital accounts. The last is an area in which existing theory provides relatively little specific guidance, but in which there are relatively high risks that decline over time as the market matures. -
Publication
How Endowments, Accumulations, and Choice Determine the Geography of Agricultural Productivity in Ecuador
(Oxford University Press on behalf of the World Bank, 2006-09-01) Larson, Donald F. ; Leon, MauricioSpatial disparity in incomes and productivity is apparent across and within countries. Most studies of the determinants of such differences focus on cross-country comparisons or location choice among firms. Less studied are the large differences in agricultural productivity within countries related to concentrations of rural poverty. For policy, understanding the determinants of this geography of agricultural productivity is important, because strategies to reduce poverty often feature components designed to boost regional agricultural incomes. Census and endowment data for Ecuador are used to estimate a model of endogenous technology choice to explain large regional differences in agricultural output and factor productivity. A composite-error estimation technique is used to separate systemic determinants from idiosyncratic differences. Simulations are employed to explore policy avenues. The findings suggest a differentiation between the types of policies that promote growth in agriculture generally and those that are more likely to assist the rural poor. -
Publication
Microenterprise Dynamics in Developing Countries : How Similar are They to Those in the Industrialized World? Evidence from Mexico
(Oxford University Press on behalf of the World Bank, 2006-09-01) Fajnzylber, Pablo ; Maloney, William ; Montes Rojas, GabrielA rich panel data set from Mexico is used to study the patterns of entry, exit, and growth of microenterprises and to compare these with the findings of the mainstream theoretical and empirical work on firm dynamics. The Mexican self-employment sector is much larger than its counterpart in the United States, which is reflected in higher unconditional rates of entry into the sector. The evidence for Mexico points to the significant presence of well-performing salaried workers among the likely entrants into self-employment, as opposed to the higher incidence of poorer wageworkers among the entrants into the U.S. self-employment sector. Despite these differences, however, the patterns of entry, survival, and growth with respect to age, education, and many other covariates are very similar in Mexico and the United States. These strong similarities suggest that mainstream models of worker decisions and firm behavior are useful guides for policymaking for the developing-country microenterprise sector. Furthermore, they suggest that, as a first approximation, the developing-country microenterprise should probably be viewed as they are in the advanced countries as offering potentially desirable job opportunities to low-productivity workers.