Damania, Richard

Sustainable Development Practice Group, The World Bank
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Development Economics, Environmental Economics, Natural Resource Economics, Agricultural Economics, Water Economics, Game Theory
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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.
Citations 31 Scopus

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Now showing 1 - 5 of 5
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    Highways to Success or Byways to Waste: Estimating the Economic Benefits of Roads in Africa
    (Washington, DC: World Bank; and Agence Française de Développement, 2015-10) Ali, Rubaba ; Barra, A. Federico ; Berg, Claudia ; Damania, Richard ; Nash, John ; Russ, Jason
    Roads are the arteries through which the world’s economies pulse. Roads connect sellers to markets, workers to jobs, students to education, and the sick to hospitals. Yet in much of the developing world—and particularly in Africa—adequate roads are lacking. Accordingly, investment in transportation remains a key strategy for development agencies. Roughly $6.8 billion per year is spent in Sub-Saharan Africa on paving roads, and the World Bank invests more on roads than on education, health, and social services combined. Despite the large sums spent on transportation, there have been no assessments to determine whether these significant investments help or hinder outcomes, and the methodologies for evaluating which road projects to fund or not to fund have been disjointed and unreliable. Highways to Success or Byways to Waste: Estimating the Economic Benefits of Roads in Africa hopes to establish a new methodology for prioritizing funding that can be applied to diverse scenarios, regions, and projects. This book demonstrates how modern econometrics and geospatial techniques can be combined to analyze the latest available geo-referenced datasets at the smallest possible scale to answer some of the most important questions in development. Aimed at researchers from across the spectrum of international development, this book seeks to be a reference guide for all who seek new tools and insights into the many issues, both technical and nontechnical, of this important field.
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    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, Jason
    In 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.
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    Transport Infrastructure and Welfare: An Application to Nigeria
    (World Bank, Washington, DC, 2015-05) Ali, Rubaba ; Barra, Alvaro Federico ; Berg, Claudia N. ; Damania, Richard ; Nash, John ; Russ, Jason
    Transport infrastructure is deemed to be central to development and consumes a large fraction of the development assistance envelope. Yet there is debate about the economic impact of road projects. This paper proposes an approach to assess the differential development impacts of alternative road construction and prioritize various proposals, using Nigeria as a case study. Recognizing that there is no perfect measure of economic well-being, a variety of outcome metrics are used, including crop revenue, livestock revenue, non-agricultural income, the probability of being multi-dimensionally poor, and local gross domestic product for Nigeria. Although the measure of transport is the most accurate possible, it is still endogenous because of the nonrandom placement of road infrastructure. This endogeneity is addressed using a seemingly novel instrumental variable termed the natural path: the time it would take to walk along the most logical route connecting two points without taking into account other, bias-causing economic benefits. Further, the analysis considers the potential endogeneity from nonrandom placement of households and markets through carefully chosen control variables. It finds that reducing transportation costs in Nigeria will increase crop revenue, non-agricultural income, the wealth index, and local gross domestic product. Livestock sales increase as well, although this finding is less robust. The probability of being multi-dimensionally poor will decrease. The results also cast light on income diversification and structural changes that may arise. These findings are robust to relaxing the exclusion restriction. The paper also demonstrates how to prioritize alternative road programs by comparing the expected development impacts of alternative New Partnership for Africas Development projects.
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    Agricultural Technology Choice and Transport
    (World Bank, Washington, DC, 2015-05) Ali, Rubaba ; Barra, A. Federico ; Berg, Claudia N. ; Damania, Richard ; Nash, John D. ; Russ, Jason
    This paper addresses an old and recurring theme in development economics: the slow adoption of new technologies by farmers in many developing countries. The paper explores a somewhat novel link to explain this puzzle -- the link between market access and the incentives to adopt a new technology when there are non-convexities. The paper develops a theoretical model to guide the empirical analysis, which uses spatially disaggregated agricultural production data from Spatial Production Allocation Model and Living Standards Measurement Study survey data for Nigeria. The model is used to estimate the impact of transport costs on crop production, the adoption of modern technologies, and the differential impact on returns of modern versus traditional farmers. To overcome the limitation of data availability on travel costs for much of Africa, road survey data are combined with geographic information road network data to generate the most thorough and accurate road network available. With these data and the Highway Development Management Model, minimum travel costs from each location to the market are computed. Consistent with the theory, analysis finds that transportation costs are critical in determining technology choices, with a greater responsiveness among farmers who adopt modern technologies, and at times a perverse (negative) response to lower transport costs among those who employ more traditional techniques. In sum, the paper presents compelling evidence that the constraints to the adoption of modern technologies and access to markets are interconnected, and so should be targeted jointly.
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    Evaluating Transport Infrastructure Projects in Low Data Environments: An Application to Nigeria
    (Taylor and Francis, 2018) Russ, Jason ; Berg, Claudia ; Damania, Richard ; Barra, A. Federico ; Ali, Rubaba ; Nash, John
    Transport infrastructure consumes a large fraction of the development assistance envelope. Yet procedures for evaluating transport infrastructure projects are typically ad hoc. This paper proposes an approach to assess the differential impacts of alternative investment proposals in data constrained environments where conducting reliable impact analyses is difficult. We first demonstrate a technique for estimating the cost of transporting products to markets. We then estimate the impact of improving the road network on economic activity. Finally, we perform simulations to demonstrate a methodology for prioritizing alternative investments. The analysis demonstrates a pragmatic, though rigorous, approach for assessing transport infrastructure benefits.