Journal Issue: World Bank Research Observer, Volume 30, Issue 2
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2
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Evidence on Policies to Increase the Development Impacts of International Migration
(Oxford University Press on behalf of the World Bank, 2015-08) Yang, Dean; McKenzie, David
International migration offers individuals and their families the potential to experience immediate and large gains in their incomes and offers a number of other positive benefits to the sending communities and countries. However, there are also concerns about the potential costs of migration, including concerns about trafficking and human rights, a desire for remittances to be used more effectively, and concerns about a loss of externalities from skilled workers. As a result, there is increasing interest in policies that can enhance the development benefits of international migration and mitigate these potential costs. We provide a critical review of recent research on the effectiveness of these policies at three stages of the migration process: pre-departure, during migration, and directed towards possible return. The existing evidence base suggests some areas of policy success: bilateral migration agreements for countries whose workers have few other migration options, developing new savings and remittance products that allow migrants more control over how their money is used, and efforts to provide financial education to migrants and their families. Suggestive evidence, together with theory, offers support for a number of other policies, such as lowering the cost of remittances, reducing passport costs, offering dual citizenship, and removing exit barriers to migration. Research offers reasons to be cautious about some policies, including policies enforcing strong rights for migrants, such as high minimum wages. Nevertheless, we find the evidence base to be weak for many policies, with no reliable research on the impact of most return migration programs or whether countries should attempt to induce communal remitting through matching funds.
Can You Help Someone Become Financially Capable?
(Oxford University Press on behalf of the World Bank, 2015-08) Miller, Margaret; Reichelstein, Julia; Salas, Christian; Zia, Bilal
This paper presents a systematic and comprehensive meta-analysis of the literature on financial education interventions that focuses on financial education studies designed to strengthen the financial knowledge and behaviors of consumers. The analysis identifies 188 papers and articles that present impact results of interventions designed to increase consumers' financial knowledge (financial literacy) or skills, attitudes, and behaviors (financial capability). These papers are diverse across a number of dimensions, including objectives of the program intervention, expected outcomes, intensity and duration of the intervention, delivery channel used, and type of population targeted. However, there are a few key outcome indicators where a subset of papers are comparable, including those that address savings behavior, defaults on loans, and financial skills such as record keeping. The results from the meta-analysis indicate that financial literacy and capability interventions can have a positive impact in some areas (e.g., increasing savings) but not in others (e.g., reducing loan defaults).
Child Development in a Changing World
(Oxford University Press on behalf of the World Bank, 2015-08) Boyden, Jo; Dercon, Stefan; Singh, Abhijeet
This review explores current understandings of child development and the consequences for children of risk exposure in low- and middle-income countries by integrating empirical evidence from development economics with insights from allied social science disciplines. It provides a holistic perspective that highlights the synergies between children's developmental domains, drawing particular attention to dimensions such as self-efficacy, self-esteem and aspirations, which have had only limited treatment in the economics literature to date, especially in developing countries. It concludes that there is strong evidence of dynamic relationships between risk factors in early childhood and later outcomes across multiple developmental domains, emphasizing the heightened effect of shocks to the care environment and the cumulative effect of multiple shocks. It also concludes that risk is distributed unevenly, with children who are both in poverty and disadvantaged socially according to, for example, their ethnicity bearing the greatest burden; within a household, gender, birth order and other factors mean that some suffer disproportionately from shortfalls and incomplete protection. However, this review finds that low endowments in early childhood can be at least partially compensated for through improved environments and investments in later childhood, emphasizing the resilience of some children. The review goes on to explore the impact on children of dramatic socio-economic changes that have occurred in recent years with rapid growth across most developing countries. It highlights four key forces for change—fall in absolute poverty, increased access to services, changing household incentives for investing in children, and changing social and cultural values—and stresses the ambiguous effects on the welfare of children and their long-term prospects. In so doing, the review aims to consolidate emerging evidence on how risks and opportunities for child development may have changed in these dynamic contexts.
Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries
(Oxford University Press on behalf of the World Bank, 2015-08) Quatraro, Francesco; Vivarelli, Marco
The aim of this paper is to provide an updated survey of the “state of the art” in entrepreneurial studies with a particular focus on developing countries (DCs). In particular, the concept of “entrepreneurship” is critically discussed, followed by a discussion of the institutional, macroeconomic, and microeconomic conditions that affect the entry of new firms and the post-entry performance of newborn firms. The reviewed literature bears some policy implications for the support of the creation new firms, such as the targeting of policy measures to prospective entrepreneurs who possess high education levels, long previous job experience, and innovative skills. Specifically, for DCs, tailored subsidies and support should be coupled with framework and infrastructural policies that are able to improve the business environment such that new ventures can start and grow.
Diet Quality, Child Health, and Food Policies in Developing Countries
(Oxford University Press on behalf of the World Bank, 2015-08) Bhargava, Alok
Although the importance of diet quality for improving child health is widely recognized, the roles of environmental factors and the absorption of nutrients for children's physical growth and morbidity have not been adequately integrated into a policy framework. Moreover, nutrient intakes gradually affect child health, so it is helpful to use alternative tools to evaluate short-term interventions versus long-term food policies. This article emphasizes the role of diet quality reflected in the intake of nutrients such as protein, calcium, and iron for children's physical growth. Vitamins A and C are important for reducing morbidity. Children's growth and morbidity affect their cognitive development, which is critical for the future supply of skilled labor and economic growth. Evidence on these issues from countries such as Bangladesh, India, Kenya, the Philippines, and Tanzania is summarized. The supply of nutritious foods is appraised from the viewpoint of improving diet quality. Finally, the roles of educational campaigns and indirect taxes on unhealthy processed foods consumed by the affluent in developing countries are discussed.