Journal Issue: World Bank Research Observer, Volume 35, Issue 1
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Illicit Financial Flows
(Published by Oxford University Press on behalf of the World Bank, 2020-02) Collin, Matthew
There is a growing consensus that the presence of illegal and harmful cross-border financial flows is one of the factors impeding economic and human development. In recent years, a new conceptual framework for describing these “illicit” financial flows (IFFs) has emerged that combines issues ranging from cross-border money laundering to tax evasion. This article summarizes and clarifies recent empirical work in this area. Three types of studies are considered and critiqued: (i) methods of measuring IFFs, (ii) constructed risk indicators, and (iii) forensic studies that aim to uncover instances where illicit flows have occurred. The article discusses the limitations of all three approaches and proposes ways in which the research agenda on IFFs could be reasonably advanced, given the hidden nature of the subject.
Supporting Policy Reform from the Outside
(Published by Oxford University Press on behalf of the World Bank, 2020-02) Smets, Lodewijk
Sound economic and social policies are important if countries wish to prosper and achieve sustainable development. It is far from guaranteed, however, that policymakers select and implement good policies, which provides a rationale for external policy support. Indeed, many organizations are engaged in supporting policy reform processes in recipient countries. This study investigates the limits and opportunities of supporting policy reform by focusing on four dimensions of support: conditional financing, policy dialogue, technical evidence and political institutions. Four findings follow from a review of the literature. First, without commitment on the recipient side, conditional financing is unlikely to induce policy reform. Second, when external actors acquire a seat at the policy dialogue table, it is important to detect (and influence) the beliefs policymakers hold. Third, outside parties should bring sound evidence to the table about the costs, benefits, and effectiveness of their policy proposals. Finally, supporting changes in political institutions without considering general equilibrium effects can be counterproductive. The study concludes with a discussion and some avenues for future research in this field.
Preventing More 'Missing Girls'
(Published by Oxford University Press on behalf of the World Bank, 2020-02) Kumar, Sneha; Sinha, Nistha
In parts of Asia, the South Caucasus, and the Balkans, son preference is strong enough to trigger significant levels of sex selection, resulting in the excess mortality of girls and skewing child sex ratios in favor of boys. Every year, an estimated 1.8 million girls go “missing” because of the widespread use of sex selective practices in these regions. The pervasive use of such practices is reflective of the striking inequities girls face immediately, and it also has possible negative implications for efforts to improve women's status in the long term. Recognizing this as a public policy concern, governments have employed direct measures such as banning the use of prenatal sex selection technology, and providing financial incentives to families that have girls. This study reviews cross-country experiences to take stock of the direct interventions used and finds no conclusive evidence that they are effective in reducing the higher mortality risk for girls. In fact, bans on the use of sex selection technology may inadvertently worsen the status of the very individuals they intend to protect, and financial incentives to families with girls offer only short-term benefits at most. Instead, what seems to work are policies that indirectly raise the value of daughters. The study also underscores the paucity of causal studies in this literature.