Sustainable Development Practice Group, The World Bank
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Fields of Specialization
Development Economics, Environmental Economics, Natural Resource Economics, Agricultural Economics, Water Economics, Game Theory
Externally Hosted Work
Last updated August 30, 2023
Richard Damania is the Chief Economist of the Sustainable Development Practice Group. He has held several positions in the World Bank including as Senior Economic Advisor in the Water Practice, Lead Economist in the Africa Region’s Sustainable Development Department, in the South Asia and Latin America and Caribbean Regions of the World Bank. His work has spanned across multiple sectors and has helped the World Bank become an acknowledged thought-leader on matters relating to environment, water and the economy. Prior to joining the World Bank he held positions in academia and has published extensively with over 100 papers in scientific journals.
Publication Search Results
Now showing 1 - 4 of 4
Infrastructure in Conflict-Prone and Fragile Environments: Evidence from the Democratic Republic of Congo(World Bank, Washington, DC, 2015-05) Ali, Rubaba ; Barra, A. Federico ; Berg, Claudia N. ; Damania, Richard ; Nash, John D. ; Russ, Jason ; Russ, JasonIn conflict-prone situations, access to markets is necessary to restore economic growth and generate the preconditions for peace and reconstruction. Hence, the rehabilitation of damaged transport infrastructure has emerged as an overarching investment priority among donors and governments. This paper brings together two distinct strands of literature on the effects of conflict on welfare and on the economic impact of transport infrastructure. The theoretical model explores how transport infrastructure affects conflict incidence and welfare when selection into rebel groups is endogenous. The implications of the model are tested with data from the Democratic Republic of Congo. The analysis addresses the problems of the endogeneity of transport costs and conflict using a novel set of instrumental variables. For transport costs, a new instrument is developed, the natural-historical path, which measures the most efficient travel route to a market, taking into account topography, land cover, and historical caravan routes. Recognizing the imprecision in measuring the geographic impacts of conflict, the analysis develops a spatial kernel density function to proxy for the incidence of conflict. To account for its endogeneity, it is instrumented with ethnic fractionalization and distance to the eastern border. A variety of indicators of well-being are used: a wealth index, a poverty index, and local gross domestic product. The results suggest that, in most situations, reducing transport costs has the expected beneficial impacts on all the measures of welfare. However, when there is intense conflict, improvements in infrastructure may not have the anticipated benefits. The results suggest the need for more nuanced strategies that take into account varying circumstances and consider actions that jointly target governance with construction activities.
Publication(World Bank, Washington, DC, 2015-05) Damania, Richard ; Wheeler, DavidRoad construction has often been viewed as the precursor to deforestation, especially in tropical forests. Traditional responses to such threats have been reactive, with attempts to mitigate impacts through physical measures, or the establishment of protected areas. These approaches often have not been entirely successful, especially in areas where economic potential is significant. This paper seeks to mitigate such conflicts by proposing a proactive approach to development planning and environmental policy. It develops a high-resolution spatial model of road improvement impacts that includes ecological risks and the economics of forest clearing. The approach is implemented by estimating the potential impact of road upgrading on forest clearing and biodiversity in eight Congo Basin countries. The paper demonstrates how the detailed analysis can identify areas of high ecological priority as well as areas at high risk of forest loss. The paper contributes to several aspects of the literature. First, it provides the most recent and reliable estimates of the drivers of deforestation in the Congo Basin, with the latest high-resolution satellite data on forest cover changes. Second, it presents novel estimates of biodiversity threats by creating an index that combines and synthesizes several measures of biodiversity loss and impacts. It then develops an empirical framework for estimating the ecological impacts of road improvement. Finally, the paper illustrates how the empirical framework can be used to preempt impacts and avoid potential ecological damage.
Economic Boom or Ecologic Doom?: Using Spatial Analysis to Reconcile Road Development with Forest Conservation(Washington, DC: World Bank, 2016-05-20) Barra, Alvaro Federico ; Burnouf, Mathilde ; Damania, Richard ; Russ, JasonThe natural endowment of the Democrat Republic of Congo, in the form of land, minerals, and forests, is unparalleled. The right mix of policies has the potential to unleash incentives that could transform the economy. However, transport infrastructure in the DRC is amongst the sparsest and most dilapidated in the world, and this lack of infrastructure is likely a significant constraint to growth. This work considerably advances the information that is available to infrastructure planners, and provides methodologies that could be used to make more informed decisions to identify trade-offs between economic growth and environmental endangerment. The approach draws from the state-of the art across a variety of disciplines – spatial (GIS) analysis, spatial econometrics, economic theory, and conservation biology – to create an approach that can guide the location and level of investments by estimating benefits and environmental costs at a highly disaggregated spatial scale. The analysis proceeds in four related phases that combine economic assessments with geospatial analysis. First transport costs are estimated using GIS techniques. A variety of econometric procedures are then used to determine the economic effects of changing transport costs. Second, highly disaggregated spatial data is used to estimate the effects of roads on forest cover, and the resulting biodiversity that would be at risk from local deforestation. Next the two spatial estimates are combined to simulate the effects of different policies. Finally this provides a series of maps that identify regions where there are large trade-offs between economic and ecological goals. Overall the results suggests that the siting of infrastructure needs to consider impacts at the very outset of the planning process. This report presents both new data and new techniques that can be used to identify areas of opportunity, risk, and potential for REDD+ financing. Such upstream planning has been rendered both feasible and cost effective with the availability of geo-referenced information on forest cover and economic data. This report provides the data and easily comprehensible maps for such an exercise.
Transport, Economic Growth, and Deforestation in the Democratic Republic of Congo: A Spatial Analysis(World Bank, Washington, DC, 2016-01-13) Damania, Richard ; Barra, Alvaro Federico ; Burnouf, Mathilde ; Russ, Jason DanielThe purpose of this study is to demonstrate several techniques which can be used to evaluate pathways to sustainable growth in the Democratic Republic of Congo (DRC) via infrastructure improvement. Decades of conflict and neglect have left the DRC’s transport infrastructure amongst the sparsest and most dilapidated in the world.