scholarly journals Nonmarket Institutions for Credit and Risk Sharing in Low-Income Countries

1995 ◽  
Vol 9 (3) ◽  
pp. 115-127 ◽  
Author(s):  
Timothy Besley
Keyword(s):  
Low Income ◽  
Risk Sharing ◽  
Design Theory ◽  
Imperfect Information ◽  
Information Economics ◽  
Low Income Countries ◽  
Special Focus ◽  
Poor Countries ◽  
Limited Enforcement ◽  
Nonmarket Institutions

The design credit and risk institutions in low-income countries provides one of the most exciting testing grounds for theories of contracting with imperfect information and limited enforcement. This paper reviews some of the recent literature, with a special focus on nonmarket institutions that cope with risk and provide credit. This literature attempts to bring together insights from economic theory, especially information economics, contract theory, and mechanism design theory. However, it is also applied, being motivated by the circumstance of the poor countries that their authors have visited and studied.

scholarly journals Symposium on Consumption Smoothing in Developing Countries

1995 ◽  
Vol 9 (3) ◽  
pp. 81-82 ◽  
Author(s):  
Anne Case
Keyword(s):  
Low Income ◽  
Risk Sharing ◽  
Information Economics ◽  
Theoretical Work ◽  
Consumption Smoothing ◽  
Low Income Countries ◽  
Data Sets ◽  
Household Level ◽  
Level Data ◽  
The Face

This symposium explores how households in low-income countries, even without access to formal credit and insurance markets, find ways to smooth consumption in the face of large shocks to their income. This general area of risk sharing and consumption smoothing has received a great deal of attention from development economists in the last five years. The papers highlight the extent to which theoretical work in mechanism design, contract theory, and information economics has informed recent work in development economics. These papers also underscore the ways large, detailed household level data sets have recently been applied in developing country research.

scholarly journals Somalia

2020 ◽  
Vol 20 (86) ◽  
Author(s):  
Keyword(s):  
Low Income ◽  
Net Present Value ◽  
Debt Relief ◽  
Debt Management ◽  
Policy Framework ◽  
Low Income Countries ◽  
Debt Sustainability ◽  
Poor Countries ◽  
Heavily Indebted Poor Countries ◽  
Hipc Initiative

This paper presents an assessment of Somalia’s eligibility for assistance under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. The macroeconomic framework reflects the policy framework underlying the proposed three-year Fund-supported program. The debt relief analysis (DRA) remains largely unchanged, but some of the underlying debt data has been updated to reflect new information from creditors. In addition, this paper presents an assessment of debt management capacity in Somalia and a full Debt Sustainability Analysis under the Debt Sustainability Framework for Low-Income Countries. The DRA reveals that, after traditional debt relief mechanisms are applied, Somalia’s debt burden expressed as the net present value of debt-to-exports ratio is 344.2 percent at the end of December 2018—significantly above the HIPC Initiative threshold. Despite the challenging environment, progress on reform and policy implementation has been good and sustained reforms have translated into economic results. In addition to the coordinated support from the World Bank and the IMF, reforms have been supported by other development partners.

A New Development Opportunity Confronts Old Paradigms

2011 ◽  
pp. 171-198
Author(s):  
Peter A. Kwaku Kyem
Keyword(s):  
Development Strategy ◽  
Low Income ◽  
Low Income Countries ◽  
Development Discourse ◽  
Poor Countries ◽  
Technological Gap ◽  
Local Actors ◽  
Information And Communication ◽  
Developed Nations ◽  
Ict For Development

There is a considerable debate about how the technological gap between rich and poor countries of the world can be bridged or eliminated. Technological optimists argue that Information and Communication Technology (ICT) can bring accelerated development to poor countries. Others question the viability of relying on ICT for development in low income countries. The ensuing debate has masked the digital divide problem and prevented a true discussion of how ICT can be deployed for the benefit of low income countries. On the otherhand, confronted with the persistent failures of one-size-fits-all economic development models, low income countries can no longer treat modernization as the pivot towards which all ICT-related development efforts must gravitate. There is a need to drop the singular vision of development which is premised on the experiences of Western developed nations and rather restore local actors and their cultures into the actual roles they play in development processes that occur within localities. Accordingly, this chapter reviews the perspectives that currently shape the ICT for development discourse and offers the multiplicity theory to bridge the gap in development theory and promote a development strategy which incorporates activities of both local and global actors in the development of localities.

Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries

Policy Papers ◽  
2008 ◽  
Vol 2008 (3) ◽  
Author(s):  
Keyword(s):  
Low Income ◽  
Debt Relief ◽  
Low Income Countries ◽  
Bank Debt ◽  
Debt Sustainability ◽  
Poor Countries ◽  
Guidance Note ◽  
Heavily Indebted Poor Countries ◽  
Alternative Scenarios ◽  
Sustainability Framework

The objective of the joint Fund-Bank debt sustainability framework for low-income countries is to support LICs in their efforts to achieve their development goals without creating future debt problems. Countries that have received debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI) need to be kept on a sustainable track. Under the framework, country DSAs are prepared jointly by Bank and Fund staff, with close collaboration between the two staffs on the design of the macroeconomic baseline, alternative scenarios, the debt distress rating, and the drafting of the write-up.

scholarly journals Technological Spillover, Growth Convergence And Technical Progress: Does technology flow from rich to poor economies?

2020 ◽  
Vol 8 (4) ◽  
pp. 132-145
Author(s):  
Oladele O Aluko ◽  
B. Sabiu Sani
Keyword(s):  
Economic Growth ◽  
Technical Progress ◽  
Low Income ◽  
Generalized Method Of Moments ◽  
Low Income Countries ◽  
Dynamic Panel Model ◽  
Poor Countries ◽  
Growth Convergence ◽  
Using Data ◽  
The One

This study examines Technology spillover from rich to poor countries, the study used a model that, at the aggregate level, is similar to the one sector neoclassical growth model. The model was estimated using data on technical progress, Average Product Per-Worker, Capital Stock and Technology Intensive Goods in 25 countries which consist of rich and poor countries over the last decade. A dynamic panel model is formulated and estimated Using Generalized method of moments by Arelano and Bond; and the implications of the estimates were evaluated for aggregate total factor productivity and economic growth. The results reveal that, on average, technology have contributed more to economic growth in high income economies and on the contrary technology have made little or no contribution in low income countries. Consequently, there is substantial variation across technologies and economies

scholarly journals Aid to education and sustainable development

2019 ◽  
Vol 9 (2) ◽  
pp. 816-837
Author(s):  
Keith Lewin
Keyword(s):  
Sustainable Development ◽  
Low Income ◽  
Comparative Education ◽  
Development Aid ◽  
Low Income Countries ◽  
The Sustainable Development ◽  
Poor Countries ◽  
Accelerate Development ◽  
Development Goals ◽  
National Investment

The Sustainable Development Goals commit all countries to make rights to education realities for all children. Most of those out of school, and in school but not learning, are in Low Income Countries. Poor countries allocate 3%-4% of GDP to education. 6% is needed to finance universal primary and secondary school. Aid can help. However, aid to education in poor countries has stagnated since 2010 at USD 12 Billion annually. Aid can accelerate development that is self-sustaining through investment in human capitals and the promotion of public goods. Over the last three decades national investment has helped some countries transform their education systems. In other countries progress has been disappointing. The challenge for old and new donors to education is how should future aid be provided to promote sustainable development aid and how can Comparative Education help?

Europe's Crisis of Legitimacy

2020 ◽  
Author(s):  
Vivien A. Schmidt
Keyword(s):  
Low Income ◽  
Best Practice ◽  
Critical Mass ◽  
Large Body ◽  
Developed Countries ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
Infrastructure Development ◽  
Poor Countries ◽  
Sub Saharan

Expectations are high regarding the potential benefits of public–private partnerships (PPPs) for infrastructure development in poor countries. The development community, led by the G20, the United Nations, and others, expects PPPs to help with “transformational” megaprojects as well as efforts to achieve the Sustainable Development Goals (SDGs). But PPPs have been widely used only since the 1990s. The discussion of PPPs is still dominated by best-practice guidance, academic studies that focus on developed countries, or ideological criticism. Meanwhile, practitioners have quietly accumulated a large body of empirical evidence on PPP performance. The purpose of this book is to summarize and consolidate what this critical mass of evidence-based research says about PPPs in low-income countries (LICs) and thereby develop a more realistic perspective on the practical value of these mechanisms. The focus of the book is on Sub-Saharan Africa (SSA), home to most of the world’s poorest countries, although insights from other regions and more affluent developing countries are also included. Case studies of many of the best-known PPPs in Africa are used to illustrate these findings. This book demonstrates that PPPs have not met expectations in poor countries, and are only sustainable if many of the original defining characteristics of PPPs are changed. PPPs do have a small but meaningful role to play, but only if expectations remain modest and projects are subject to transparent evaluation and competition. Experiments with PPP mechanisms underway in some countries suggest ways in which PPPs may be evolving to better realize benefits in poor countries.

scholarly journals On the determinants of trade openness in low- and lower–middle-income countries in Africa: how important is economic growth?

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
Dennis Boahene Osei ◽  
Yakubu Awudu Sare ◽  
Muazu Ibrahim
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Low Income Countries ◽  
Special Focus ◽  
Middle Income ◽  
Middle Income Countries ◽  
Real Gdp Per Capita ◽  
The Impact

AbstractThe existing literature highlights the determinants of trade openness with disregard to the income classifications of countries in examining whether the determinants differ given their income levels. This study, therefore, re-examines the drivers of trade openness in Africa relying on panel data with special focus on the role of economic growth. More specifically, we perform a comparative analysis of the factors influencing trade openness for low-income and lower–middle-income countries using the system generalized method of moments. Our findings suggest that, while economic growth robustly enhances openness in low-income countries, in the case of lower–middle-income countries, the impact is not robust and largely negative suggesting that higher growth is associated with less openness. We also find that, economic growth–openness nexus for the lower-income countries exhibits non-linearities and inverted U-shaped relationship in particular. Thus, while increases in real GDP per capita enhance openness, beyond an estimated threshold point, any increases in economic growth dampen openness. We discuss key implications for policy.

scholarly journals The Urban Mortality Transition and Poor-Country Urbanization

2019 ◽  
Vol 11 (1) ◽  
pp. 223-275 ◽  
Author(s):  
Remi Jedwab ◽  
Dietrich Vollrath
Keyword(s):  
Population Growth ◽  
Low Income ◽  
Urban Areas ◽  
Poor Country ◽  
Natural Increase ◽  
Low Income Countries ◽  
Poor Countries ◽  
Locational Choice ◽  
Amenity Effect ◽  
Urbanization Rate

Today, the world’s fastest-growing cities lie in low-income countries, unlike the historical norm. Also, unlike the “killer cities” of history, cities in low-income countries grow not just through in-migration but also through their own natural increase. First, we use novel historical data to document that many poor countries urbanized at the same time as the postwar urban mortality transition. Second, we develop a framework incorporating location choice with heterogeneity in demographics and congestion costs across locations to account for this. In the framework, people prefer to live in low-mortality locations, and the aggregate rate of population growth and the locational choice of individuals interact. Third, we calibrate this to data from a sample of poor countries and find that informal urban areas (e.g., slums) can absorb additional population more easily than other locations. We show that between 1950 and 2005 the urban mortality transition could have doubled the urbanization rate as well as the size of informal urban areas in this sample. Of these effects, one-third could be attributed to the amenity effect of lower urban mortality rates, while the remainder is due to higher population growth disproportionately pushing people into informal urban areas. Fourth, simulations suggest that family planning programs, as well as industrialization or urban infrastructure and institutions may be effective in slowing poor-country urbanization. (JEL I12, J11, N30, O15, O18, R11, R23)

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