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The relationship between foreign aid and economic growth has been the subject of much controversy. A recent theme suggesting that aid promotes growth, but only in a good policy environment has ratchet up that debate. In this paper, we assess the importance of policy and aid in generating growth when the aid, policy, and growth relationship is nonlinear. This allows us to examine the varying effects of aid and policy in different data segments, which we do without imposing any particular structure on the underlying relationship. We find that policy is an important determinant of growth. We also find partial corroboration of the view that aid is growth enhancing in a good policy environment, and some evidence of diminishing returns to aid. These findings suggest that nonlinearities if not appropriately addressed fail to capture the detailed underlying dynamics and thereby mask some key features of the aid-policy-growth relationship. [ABSTRACT FROM AUTHOR]

This paper presents an empirical analysis of the factors which promote entrepreneurial activity across a number of transition, developing and developed countries. It produces results which highlight the importance of institutions in promoting entrepreneurial activity. This work is part of an on-going research project on the relationship between the legal system and factors which influence economic development. In particular, it has been shown that legal rules protecting creditors and investors influence the size of financial markets which in turn influence economic development. Our paper thus extends the analysis of the impact of institutions beyond that previously established to demonstrate its influence on another driver of economic development. Copyright © 2005 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

No empirical evidence has yet emerged for the existence of a robust positive relationship between financial openness and economic growth. This paper argues that a key reason for the elusive evidence is the presence of a time-varying relationship between openness and growth: countries tend to gain in the short term, immediately following capital account liberalization, but may not grow faster or even experience temporary growth reversals in the medium to long term. The paper finds substantial empirical evidence for the existence of such an intertemporal tradeoff for 45 industrialized and emerging market economies. The acceleration of growth immediately after liberalization is found to be often driven by an investment boom and a surge in portfolio and debt inflows. By contrast, the quality of domestic institutions, the size of FDI inflows and the sequencing of the liberalization process are found to be important driving forces for growth in the medium to longer term. [ABSTRACT FROM AUTHOR]

This paper focuses on the practical approach to sustainable development in Bhutan and specifically on public views on and experiences with the implementation of this strategy. Bhutan's development goal is ‘gross national happiness’. The strategy it has adopted to achieve this goal is known as the ‘middle path strategy’, which essentially addresses four sources (‘pillars’) of gross national happiness: economic development, ecological preservation, cultural preservation and good governance, without giving greater emphasis to any one pillar over the others. The paper is based on a survey conducted in 10 districts of Bhutan. Standard pre-designed questionnaires were used for interviews with representatives of three main groups in society: the state, civil society and the market. The results of this survey, the first of its kind to be carried out in the country, revealed that there is general agreement with the substance of the development strategy, although not everyone is fully aware of its scope and implications. A remarkable outcome of the survey, and one that contrasts with happiness studies conducted elsewhere in the world, was the high score for happiness in a country whose gross domestic product is so small. However, people do feel uncertain and the chosen development path is still fragile. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [ABSTRACT FROM AUTHOR]

Discusses several issues related to the relationship between finance and development. Link between financial development and economic growth; Role of finance in poverty reduction in developing countries; Stability of the financial system.

This paper reviews the historical evidence on the relationship between globalisation and economic growth. Divergence in the growth of income and industrialisation in the twentieth century is documented but it is also noted that international income inequality appears to have decreased since about 1870 and that long-run trends in the Human Development Index are much less pessimistic about the experience of developing countries. It is argued that trade liberalisation has been good for growth on average but that successful capital liberalisation requires high institutional quality and that the developmental state may have an important role to play in the early stages of development. The recent claim by Robert Lucas that the 21st century will see a massive reduction in income inequality across countries in a globalised world economy is sceptically discussed in the context of empirical evidence that bad institutions are often persistent and that geography is still a major factor in explaining international income differences. [ABSTRACT FROM AUTHOR]

This paper criticises the World Bank as overly optimistic with respect to its ability to fine-tune development aid and to focus it on countries with ‘good’ policies rather than on countries with ‘poor’ policies in order to raise its effectiveness. It is shown that recipient regions showed very different patterns of aid inflows and economic growth in the past and that aid flows yielded the highest correlation to growth when their magnitudes shrank. It is furthermore argued that categorising countries by quality of domestic policies is not only questionable at a given point of time especially in countries with failing governmental institutions and open borders as in many African countries. It suffers also from incentive problems so that countries receiving more aid can become victims of changes in their domestic policies which are more permissive and etatist to the disadvantage of private agents. The paper instead pleads for a shift to aid policies decoupled from country-specifics and more oriented to fundamental ‘beyond border’ problems of the well-being of the poor. An international endowment fund under supranational law should finance research and implementation of research findings related to common international goods as it was suggested by Sachs concerning aids and tropical disease research. [ABSTRACT FROM AUTHOR]

The intention of this paper is to examine the political and administrative limits on the effective implementation of privatization in developing countries and so to present a challenge to the view that slow progress is primarily attributable to economic constraints. After examining these economic aspects, the paper provides an explanatory framework which incorporates those political and administrative processes central to an understanding of what happens to state economic policies in practice. The significance of these processes is demonstrated by drawing on research material from India, Pakistan, Thailand, and Sri Lanka. The conclusion drawn is that responses to pressures for economic reform will be determined, not so much by economic criteria as by the political and bureaucratic resources available to decision makers. Since policy processes in developing countries show considerable variety it is likely that there will be substantial variations in the practical achievement of privatization objectives. [ABSTRACT FROM AUTHOR]

Although Indigenous people in the poorest developing countries of the world confront the most severe hardships, nevertheless even in the most developed countries such as Australia, Indigenous standards of living in terms of economic, educational and basic human standards are far inferior to other groups within society. It has been argued that Indigenous affairs in Australia is divided into 'two ideological tribes' both vigorously opposed with respect to the preferred manner in which the substantial disadvantage of Indigenous Australians can be overcome. Although more complex categorisations of ideological positions are possible, both maintain considerable influence within the field of Indigenous policy formulation in Australia and in the Northern Territory in particular, where nearly 30 per cent of the total population is Indigenous. The main purpose of this paper is to examine the central arguments advanced by these two sides of the debate and the implications for public policy decision making and Indigenous people, within the context of the Northern Territory of Australia. [ABSTRACT FROM AUTHOR]

Effective relations between states and business have been increasingly identified as an important institution for sustaining economic development. This paper constructs quantitative indices measuring the quality of state-business relations (SBRs) across Indian states in the 1985-2008 period. It represents the first effort to systematically characterise SBRs across sub-national units within a country without resorting to subjective surveys. We discuss the possible sensitivity of the indices to minor and major definitional changes and examine the evolution of SBRs across Indian states and at the national level through the study of cross-sectional and secular trends in these indices. The results suggest that SBRs have improved over time in all states barring Bihar. Rankings of states in terms of the SBR index show varying time trends-stable and high ranks for states like Andhra Pradesh, Karnataka, and Tamil Nadu, stable and low ranks for states like Uttar Pradesh and West Bengal, rapidly improving ranks for states like Haryana, Punjab and Rajasthan and swift deterioration in ranks for states like Bihar and Madhya Pradesh. Copyright © 2011 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Today rapidly growing economies depend more on the creation, acquisition, distribution, and use of knowledge. As such, strategies for enhancing research and innovation capabilities have come to occupy a more important position in many developing nations, including China. Already the leading production center, and often seen as China's economic locomotive, Shanghai is striving aggressively to retain its national preeminence and has launched concerted efforts to increase local innovative output. The primary purpose of this paper is to understand how state-led efforts have fared in promoting technology innovation. By situating the city in the national and global context, the paper shows that Shanghai has gained a substantial lead in developing an innovation environment with extensive global linkages and leading research institutions. Recent efforts in building up the research and innovation capacity of the enterprise sector have begun to show progress. Although firms are enthusiastic about its future as an innovation center, Shanghai continues to face challenges of inadequate protection of intellectual property, lack of venture capital investment, and the tightening supply of highly qualified knowledge workers. [ABSTRACT FROM AUTHOR]

This paper empirically investigates the responsiveness of fiscal policy to business cycles and the effectiveness of fiscal policy in reducing economic fluctuations. From regressions on the responsiveness of fiscal policy to business cycles, we find that the government's current expenditures and subsidies & transfers move counter-cyclically, whereas taxes and capital expenditures move pro-cyclically. Using economic fluctuations in neighbouring countries as an instrumental variable, we show that ordinary least squares (OLS) estimates understate the responsiveness of fiscal policy to economic fluctuations. We also find that fiscal policy responds asymmetrically over economic fluctuations. In investigating the effectiveness of fiscal policy in reducing economic fluctuations, we mitigate omitted variable bias by adding four important factors - military expenditures, oil production, economic fluctuations in neighbouring countries and fiscal policy responsiveness to business cycles. The results of effectiveness regressions are consistent with the responsiveness regressions, highlighting the importance of current expenditures, especially subsidies and transfers, in responding to business cycles and stabilising the economy. [ABSTRACT FROM AUTHOR]

This paper investigates the possible effects of the US reform of the international settlement rate system on telecommunications investment in Africa. We estimate a telecommunications investment equation using a panel data of 51 African countries during the 1991–2003 period and find that settlement payments have significantly positive effects on telecommunications investment in African countries. A 10 percent increase in settlement payment, on average, increases the telecommunications investment expenditure to GDP ratio by 3.4 percent over a three-year period. Using previously calculated revenue loss from the US reform, our estimates suggest that African countries stand to lose between 4.4 to 11 percentage points of their telecommunications investment in the medium run and with it, possible decreases in income growth rate. However, we argue that African countries can counter the effects of this revenue loss by increasing the efficiency of telecommunications investment through appropriate market restructuring, including the promotion of competition and privatization. [ABSTRACT FROM AUTHOR]

The article presents a list of books and papers about economic development and aid. The books and papers include "Development Planning," by Albert Waterston, C.J. Martin, August T. Schumacher and Fritz A. Steuber, "Unsolved Problems of International Development," published in "International Development," "Patterns of Economic Growth," "Developing Countries," published in "Realites," "What Do We Know About Planning," published in "International Development Review," and "Development Finance: Planning and Control," by Ursula K. Hicks.

Many of the problems of privatization in developing countries result from the lack of information about the situation of the economy and from the lack of determination on their path of privatization. This paper addresses the lack of information by presenting a theory of incomplete privatization contracts. It then turns to the lack of determination, dealing with particular problems of partially privatized firms and, finally, postulating an elaborate system of price regulation of privatized monopolies, which typically is missing in developing countries. [ABSTRACT FROM AUTHOR]

There is a substantial theoretical literature now on the factors determining the incidence of corruption, suggesting some policies to fight it, but we do not have a great deal of empirical evidence on the effectiveness of these policies. This paper is a brief overview, drawing upon some of the salient features of the literature and with several examples from the Indian case where corruption has become a major issue of public debate, to make remarks that may be more generally relevant for policies in developing countries. [ABSTRACT FROM AUTHOR]

We propose that the limited financial development of emerging markets is a significant factor behind the large share of dollar-denominated external debt present in these markets. We show that when financial constraints affect borrowing and lending between domestic agents, agents undervalue insuring against an exchange rate depreciation. Since more of this insurance is present when external debt is denominated in domestic currency rather than in dollars, this result implies that domestic agents choose excessive dollar debt. We also show that limited financial development reduces the incentives for foreign lenders to enter emerging markets. The retarded entry reinforces the underinsurance problem. [ABSTRACT FROM AUTHOR]

This paper analyses the effects of EU integration on intra- EU trade volumes with a special focus on the evolution of trade within and between the core and the periphery countries. In the early phases of EU integration, there have been sizable trade creation and diversion effects with respect to EFTA countries. Both the creation and the diversion effects of EU membership have declined as the EU and EFTA have integrated. In all phases of EU integration, both core-periphery and intraperiphery growth of trade have experienced stronger positive effects than intracore trade. Hence, the EU enlargements did not cause any kind of intra- EU 'peripherality'. [ABSTRACT FROM AUTHOR]

Institutional quality has been increasingly identified as crucial for economic development. In line with previous work which has explored the determinants of good institutions, this paper examines the impact of economic and social inequalities between ethnic groups on government quality. I hypothesize that greater inequalities between groups will tend to undermine institutions both because they tend to legitimize corruption in the eyes of disadvantaged groups and because of the efforts of better-off groups to maintain their privileges. Based on a panel of 29 developing countries, I find that socio-economic ethnic group inequalities reduce government quality, something which suggests the convenience of policies that can level the playing field in ethnically heterogeneous societies. [ABSTRACT FROM AUTHOR]

Considering sustainability a matter of intergenerational welfare equity, this paper examines whether an optimal development path can also be sustainable. It argues that the general 'zero-net-aggregate-investment' condition for an optimal development path to be sustainable in the sense of the maximin criterion of intergenerational justice is too demanding to be practical, especially in the context of developing countries. It further argues that while the maximin criterion of sustainability may be appealing to the rich advanced industrial countries, for the poor developing countries it implies equalization of poverty across generations, and as such is too costly a moral obligation to be acceptable. The paper suggests that a compromise development policy that follows the optimal growth approach but adopts certain measures to mitigate both the intergenerational and intragenerational welfare inequalities may be more appropriate for these countries. Some of the principal elements of such a policy are highlighted. [ABSTRACT FROM AUTHOR]

The aid effectiveness literature (AEL) consists of empirical macroeconomic estimates of the effects of development aid. By the end of 2004, it comprised 97 econometric studies of three families of related effects. Each family has been analyzed in a separate meta-analysis. The AEL is an ideal subject for meta-analysis as it uses only a few formally similar models to estimate the same underlying effects. It is also an area with strong beliefs, often generated by altruism. When this whole literature is examined, a clear pattern emerges. After 40 years of development aid, the preponderance of the evidence indicates that aid has not been effective. We show that the distribution of results is significantly asymmetric reflecting the reluctance of the research community to publish negative results. The Dutch disease effect on exchange rates provides a plausible explanation for the observed aid ineffectiveness. [ABSTRACT FROM AUTHOR]

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The article discusses the working of the World Trade Organization (WTO) Committee and Regional Trade Agreements for economic growth. It mentions that growing numbers of agreements across regional groupings, as well as across developed and developing countries. It also mentions the implement of partnership agreements for goods and services.

This paper explores how the optimal mode of public finance depends on the level of economic development. The theoretical analysis suggests that in the presence of capital market imperfection and liquidity shocks, the detrimental effect of inflation on growth is stronger (weaker) at lower (higher) levels of economic development. Consequently, income taxation (seigniorage) is a relatively less distortionary way of financing public expenditure for low-income (high-income) countries. We provide empirical support for our model’s predictions using a panel of 21 Organization for Economic Cooperation and Development countries and 40 developing countries observed over the period 1972–1999. ( JEL E44, E6, H6, O42) [ABSTRACT FROM AUTHOR]

The escalation of political conflicts in many developing countries and their impact on economic development have been topical issues in recent development literature. The overwhelming emphasis on‘ethnic conflicts’ in the literature has, however, precluded analysts from looking at political conflicts beyond their ethnic dimension, in the wider context of the development process. In particular, because of the preoccupation with ethnic roots as the prime source of these conflicts, reverse causation, running from economic policy to political conflict, has been virtually ignored in the debate. The purpose of this paper is to fill this gap through an in-depth case study of the‘twin political conflict’ in Sri Lanka– the Tamil separatist war in the North and the Sinhala youth uprising in the South– with emphasis on its economic roots. The findings suggest that fundamental contradictions in the national development policy in the restrictive trade regime of Sri Lanka were at the heart of the country's twin political conflict. [ABSTRACT FROM AUTHOR]

This paper deals with some aspects of practical experience in the implementation of regional planning in developing countries in sub-Saharan Africa, particularly Kenya and Malawi. It is also specially concerned with the role in pursuing regional planning policies of physical planners. After some discussion of general experience with physical planning's role in regional planning in Africa the experience of Kenya is discussed in some detail, a country with more commitment than most in elaborating such policies but still limited success in implementation. The main emphasis is on the analysis of the experience of Malawi, a poor and very crowded country whose development in several ways parallels that of Kenya, while in other respects being very different, especially with its even more limited resource base in any economic activities other than agriculture. The limited effectiveness of physical planning is discussed in some detail, both within particular projects, and generally in rural areas, with particular reference to the administrative machinery within which it operates. Malawi's experience underlines the need, if physical planning policies are to be successfully implemented, for them to be consistent with regional planning activities of other Government agencies, as welt as other macro-economic policies including those for agricultural pricing and other policies affecting the relative success of the estate and smallholder sectors. [ABSTRACT FROM AUTHOR]

Around the world, public-private partnerships have become increasingly popular to deliver large-scale transportation infrastructure projects such as roads, bridges, railways, subways, seaports and airports. The aim of this article is to provide a framework to understand the global geography of projects built through this market-driven procurement model, which have been predominantly concentrated in a small number of developed countries and emerging markets. As is shown, within many countries, a governance and regulatory environment has been established that supports public-private partnerships over other alternative procurement approaches. Nevertheless, the production of public-private partnerships worldwide has been dominated by a relatively small number of highly globalized construction contractors, engineering firms, financiers, accountancies and consultants from developed countries, who have focused their activities in a narrow set of regions. The article concludes by reflecting on the implications of the high level of industry concentration, and emerging trends showing greater involvement from firms from developing countries. Resumé À travers le monde, les partenariats public-privé sont de plus en plus utilisés pour les projets d'infrastructure de transports de grande envergure, tels que routes, ponts, voies ferrées, métros, ports et aéroports. Cet article définit un cadre permettant de comprendre la géographie planétaire des projets bâtis selon ce modèle orienté par le marché, projets concentrés dans un petit nombre de pays développés et émergents. Les régimes de gouvernance et la réglementation mis en place dans de nombreux pays favorisent les partenariats public-privé au détriment d'autres approches de réalisation de projets. Néanmoins, la production de ces partenariats dans le monde a été dominée par un nombre relativement réduit d'entreprises de bâtiment et d'ingénierie, de bailleurs de fonds, de cabinets de comptabilité et de conseils, acteurs installés dans des pays développés et dont les activités internationalisées s'exercent sur un ensemble restreint de régions. La conclusion aborde les conséquences d'une forte concentration industrielle et l'apparition d'une implication croissante des entreprises des pays en développement. [ABSTRACT FROM AUTHOR]

Aspects related to the links between international migration, foreign aid and the welfare state are highlighted in this paper. Migration is modeled as a costly movement from an aid-recipient developing country with low income and no welfare state, towards a rich donor, developed country with a well-developed welfare state. Within this model, it is found, among other things, that the best response of the developed donor country is to increase aid as the co-financing rate by the recipient country increases. When the immigration cost decreases, e.g. as a result of greater economic integration between the two countries, it is beneficial for the donor country to increase aid and the recipient country to increase the co-financing rate. [ABSTRACT FROM AUTHOR]

In an effort to enhance the impact of development aid, recipients are called on to provide democratically sustained ‘ownership’ for development policies, and donors to align their interventions with these ownership-dictated strategies of their partners. This article illustrates the weaknesses of such an approach. From a political-economy perspective, severe tensions exist between concepts of democratic ownership, on the one hand, and the experimental and iterative organisation of a society's encompassing interests in democratic settings, on the other. These tensions are even more pronounced in emerging democracies, making democratic ownership as a prerequisite for aid effectiveness an illusion, and provoking the re-emergence of traditional donor-recipient problems. [ABSTRACT FROM AUTHOR]

Reserves and sovereign wealth funds (SWFs) assets should be jointly considered for the assessment of global imbalances, hence their denomination as sovereign external assets (SEAs): both are public capital outflows from developing to developed countries, both hinder adjustment in current account surplus and deficit countries and, therefore, both contribute to sustain global imbalances. They represented 135 per cent and 50 per cent of net and gross US financing needs, respectively, in 2007. Reserves contribute 80 per cent and SWFs 20 per cent. They will go on providing resilience to the global imbalances, and the relative importance of SWFs is set to increase if commodity prices stay high. [ABSTRACT FROM AUTHOR]

This article presents tests of whether the kinds of “national” policy variables used to explain cross-country variation in the growth of aggregate GDP per capita can also successfully explain per capita growth in the agricultural and nonagricultural sectors of developing countries. There are four main results of interest. First, relative to nonagriculture, convergence is much slower in agriculture and the burden of population growth is generally much higher. Second, while orthodox economic policies share positive associations with economic growth in the nonagricultural sectors of developing countries, such policies fail to robustly predict variation in agricultural growth. Third, size of government indicators often yield an “unexpected” positive association with agricultural growth. And finally, although there is some evidence that fewer price controls are associated with faster agricultural growth, these associations are statistically quite weak and quantitatively quite small. [ABSTRACT FROM AUTHOR]

The article reflects on the economic policy toward agriculture by Theodore W. Schultz in response to the responsiveness of the farmers to economic signals. Schultz contended that the output growth in traditional agriculture so with the new sources of permanent income flows could be realized through the application of science and technology. On the other hand, he strongly opposed the argument that the farmers in developing countries were guided by tradition or culture. He also abolished the contention that the farmers did not respond to economic incentives. These arguments can be seen in his book Transforming Traditional Agriculture. However, the critics questions the efficiency of his approach to understand the problems of developing countries.

Many empirical studies based on plant-level data have found that firms that enter the export markets are more productive than non-exporters and that this difference in productivity is achieved before firms become involved in exporting. These findings have challenged the traditional view that openness to trade increases productivity and economic growth. This article reconsiders the literature on trade, growth, and trade policies and argues that a careful examination of these new findings is consistent with the idea that exporting increases productivity and economic growth. [ABSTRACT FROM AUTHOR]

Payments for Ecosystem Services (PES) initiatives, which provide financial incentives for management practices thought to increase the production of environmental benefits, have expanded across the global South since the late 1990s. These initiatives have thus far been conceptualized rather narrowly; by their early proponents as a novel economic instrument for more 'rational', effective and efficient environmental policy or by their critics as an exogenously imposed conduit of hegemonic neoliberalism. This introductory article to the special issue that follows advocates for and demonstrates a more grounded and historically situated approach for understanding the conformation and outcomes of PES in actual practice. It proposes a framework for examining individual PES initiatives as shaped by dynamic interactions between imposed structure and the development pathways and situated agency of actors in the territories in which they are implemented. It finds that certain ubiquitous components of this approach — the valuation of nature, the creation of institutions and the negotiations that inevitably surround the distribution of benefits — provide potential openings for articulation and engagement that can allow these initiatives to be contested, adapted, hybridized or more fully co‐opted and captured. This framework opens a pathway for more inclusive, nuanced and grounded research on PES and on market‐based environment and development policies more broadly. [ABSTRACT FROM AUTHOR]

Abstract: In recent years, though total factor productivity (TFP) convergence phenomenon has gained tremendous importance yet further deliberations for identification of catalytic factors that can help developing countries to achieve their steady developmental paths, are under way. Against this backdrop, present study investigates the principal determinants of TFP convergence by employing data of 91 developing countries over the period 1960–2015 and with USA being the frontier country. In concordance with the existing literature, main focus remains on technology diffusion for the catch‐up process and is measured by means of trade openness (TO) and foreign direct investment (FDI) with introduction of their interaction terms. However, TFP is computed by incorporating the Growth Accounting Model while empirical results are drawn from the 2‐step GMM estimation technique. It is surfaced that though high degree of openness benefits TFP growth and convergence but FDI has a dominating role. Therefore, governments can play a competent role via unflagging efforts in ensuring that the right kind of policies are enacted, promoting trading activities and FDI flows. [ABSTRACT FROM AUTHOR]

International aid architecture has created a space for development experts to operationalise development policies in various capacity. A growing body of literature highlights the agency of this group through an ethnographic lens for deepening the understanding of development practice. However, this article reveals that there is a gap in the existing literature as the roles of national development experts ( NDEs) remain rather unexplored in development. This article aims to bridge this gap by introducing the NDEs as an unexplored actor in development and setting an agenda for further research. Drawing on a Bangladesh case this article argues that not only will the accounts of NDEs deepen the existing scholarship but also without their reflections we will only have partial development ethnographies. [ABSTRACT FROM AUTHOR]

The accountability movement in public policy hails a new programme for US foreign assistance - the Millennium Challenge Account established in 2004 with the aim of 'picking winners' for grants among developing countries based on their demonstrated quality of governance. This article uses the MCA's own rating system to dispute its claim to know in advance which countries are best positioned to meet major development goals. High governance scores alone bear little or no relationship to growth in national income or decline in poverty. Attempting to measure public-policy performance limits the range of choice available to policy-makers, and may inadvertently limit true performance. [ABSTRACT FROM AUTHOR]

The article discusses on the measure used to gauge poverty in the U.S., Europe and other developing countries. It discusses that the present official measure of poverty in the U.S. is flawed and both, the poverty threshold and measurement of available resources should be improved. It reports that European countries provided with sufficient social aid but they face a technical problem of relative poverty threshold. Also mentioned are the levels of economic development in developing and underdeveloped countries.

This article reviews the arguments for promoting private investment in infrastructure as a basis for poverty reduction in developing countries. It describes the experience leading to the development of international ‘facilities’ intended to address impediments to private investment. It then explores three ‘levels’ of literature: that of the facilities themselves, of donor organisations, and of academic authors. At each, it investigates the rationale and causal pathways leading from support for private investment to pro-poor outcomes. It finds there is a possible but not necessary association between private investment, economic growth and poverty reduction, but the causal chain is poorly understood. It proposes the development of such a causal framework. [ABSTRACT FROM AUTHOR]

In spite of vast global improvements in living standards, health, and well-being, the persistence of absolute poverty and its attendant maladies remains an unsettling fact of life for billions around the world and constitutes the primary cause for the failure of developing states to improve the health of their peoples. While economic development in developing countries is necessary to provide for underlying determinants of health – most prominently, poverty reduction and the building of comprehensive primary health systems – inequalities in power within the international economic order and the spread of neoliberal development policy limit the ability of developing states to develop economically and realize public goods for health. With neoliberal development policies impacting entire societies, the collective right to development, as compared with an individual rights-based approach to development, offers a framework by which to restructure this system to realize social determinants of health. The right to development, working through a vector of rights, can address social determinants of health, obligating states and the international community to support public health systems while reducing inequities in health through poverty-reducing economic growth. At an international level, where the ability of states to develop economically and to realize public goods through public health systems is constrained by international financial institutions, the implementation of the right to development enables a restructuring of international institutions and foreign-aid programs, allowing states to enter development debates with a right to cooperation from other states, not simply a cry for charity. [ABSTRACT FROM AUTHOR]

Economic development has long been a central pillar of American foreign policy, but often coexists uneasily with the more self-interested tenets of U.S. diplomacy. Richard Nixon's development strategy for Latin America is an excellent example of this problem. Upon taking office, Nixon and his advisers elaborated a plan to accelerate Latin American economic development and thereby head off the threat of social unrest and revolution in the Western Hemisphere. The plan came to naught, however, as it was compromised by the administration's economic unilateralism, insistence on maximizing American power and diplomatic leverage, and unwillingness to tailor U.S. policies to Latin American realities. In the end, the administration was unable to implement a successful development policy or reconcile development with other U.S. objectives. By the mid-1970s, the White House had therefore turned away from development as a means of protecting U.S. interests in Latin America, and fully embraced more repressive expedients. [ABSTRACT FROM AUTHOR]

We seek to address formally the question raised by Gardner (2003) in his Elmhirst lecture as to the direction of causality between agricultural value added per worker and Gross Domestic Product (GDP) per capita. Using the Granger causality test in the panel data analyzed by Gardner for 85 countries, we find overwhelming evidence that supports the conclusion that agricultural value added is the causal variable in developing countries, while the direction of causality in developed countries is unclear. We also examine further the use of the Granger causality test in integrated data and provide evidence that the performance of the test can be increased in small samples through the use of the bootstrap. [ABSTRACT FROM AUTHOR]

In its preparatory activities for the World Summit on Sustainable Development, UNIDO requested national experts in 18 developing and transition economies to report on sustainable development planning efforts during the 1990s in terms of (1) generation of statistical information about the economic, social and environmental impacts of the manufacturing sector, (2) involvement of the manufacturing sector in the preparation of sustainable development strategies and (3) enactment of new policies and programmes. The experts found little information about the impacts of industry on environmental quality in the more explicit environmental frameworks, such as national environmental action plans, and next to nothing in these documents on the positive impacts of industry. Furthermore, the experts found little change in institutional arrangements regarding generation of information, involvement of industry and new policies and programmes, with a few notable exceptions in terms of new information generation and integrated policy innovation. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [ABSTRACT FROM AUTHOR]

With the increasing globalization of the world economy, there has been a growing interest in the potential contributions of good governance to accelerating the rate of economic and social development in the developing countries, and enhance their smooth integration into the emerging global economy. Simultaneously, developed economies are experiencing an increasing proportion in the contribution of knowledge, information, and telecommunication sectors to their overall gross domestic product. This is placing increased focus on the role and contribution of national information infrastructure to economic productivity, and in extension, to the economic and social development of nations. In this article, the authors explore the link between information and communication technologies (ICTs), governance, and social economic development in the developing countries. They empirically conclude that contributions of ICTs to social–economic development are influenced by sociopolitical governance—leading to national development through more prudent and egalitarian application and use of the ICTs' portfolio. The contingent role of governance on ICTs and national development paves the path towards recognizing the importance of sociopolitical moderators. [ABSTRACT FROM AUTHOR]

Economic reform, on an ongoing basis, is vital if economies are to achieve, and maintain, rapid and sustained economic growth. Yet governments face challenges when introducing economic reforms. Policymakers must judge what reforms are needed; when to introduce them; and how rapidly to pursue their reform programme. Failed reforms can discredit the reform process as a whole, and so make it more difficult, and more costly, to retry in the future. The reform process in emerging market economies provides many lessons that are widely applicable. Perseverance is critical: reforms must be followed through if they are to be successful. Reforms also need to be wide-ranging, encompassing not just monetary, fiscal and trade policy but reform of the financial sector and of public institutions. Reforms in many countries need to include the protection of property and individual rights; improved tax administration and greater efficiency of public spending; and commercial codes. Reforms can be most easily implemented at times of global expansion. Fiscal consolidation, for example, is more easily accomplished in a more favourable environment partly because it helps deliver future growth and partly because it gives governments scope for counter-cyclical policy during future downturns. [ABSTRACT FROM AUTHOR]

This article analyzes the role of foreign direct investment (FDI) and trade in promoting economic growth across selected developing countries and examines the interaction among FDI, trade, and economic growth. Data from 66 developing countries are examined. Results of the study suggest that FDI, trade, human capital, and domestic investment are important sources of economic growth for developing countries. It is discovered that there is a strong positive interaction between FDI and trade in advancing economic growth. Results also show that FDI stimulates domestic investment. The contribution of FDI to economic growth is enhanced by its positive interaction with human capital and sound macroeconomic policies and institutional stability. With the results, there is an implication that lowering the inflation rate, tax burden, and government consumption would advance economic growth in developing countries.

The growth in the share of resources devoted to food marketed through supermarkets and their accompanying marketing channels has grown at an unprecedented rate in developing countries during the 1990s. This article shows that differences in the relative capital intensity of the modern marketing channels, in contrast to the traditional channels, can explain part of this expansion as the process of economic growth gives rise to capital deepening in the economy even when the food share of total expenditures declines. In this case, the lack of complete markets and policy distortions can further exacerbate the effects of supermarkets on the traditional marketing system and the small farmers that it supports. The article proceeds by describing the conceptual framework of a Ramsey growth model to fit on data of the Moroccan economy. The empirical results show how capital deepening in transition growth can encourage the expansion of the supermarket system without the need to appeal to economies of scale or imperfect competition. The article concludes by noting how economic policy and other market imperfections can affect this process.

Presents an annotated list of books related to the economic developments of Asian countries as of May 2004. "China: New Engine of World Growth" edited by Ross Garnaut and Ligang Song; "Sustaining Competitiveness in the New Global Economy: The Experience of Singapore," edited by Ramkishen Rajan; "Democracy, Governance and Economic Performance: Theory and Evidence," by Feng Yi; "Poverty, Growth and Institutions in Developing Asia," edited by Ernesto M. Pernia and Anil B. Deolalikar.

The article examines the macroeconomic policy implications of the new types of economic crises in East Asia, Brazil, Russia and other countries and develops an underlying framework for motivating and evaluating policy reforms to prevent and mitigate the crises. An overview of the recent trends in economic growth and macroeconomics policy are presented by documenting the impressive achievements of many developing countries and the improvements in the macroeconomic policy regime. The increasing frequency and severity of economic crises and some of their long-lived consequences for economic and social development are examined in detail. The financial crises of the 1990s, which differ in important respects from the crises of the 1980s, most importantly in that their roots are in the voluntary decisions of the private sector rather than the fiscal profligacy of the developing country governments are analyzed.

The article examines the problem of short-run instability in developing countries' export earnings, which is frequently alleged to adversely affect economic growth. Most of the countries in the sample experienced diversification of their export structures. The central element in the case for diversification is that the widening the range of exports will produce offsetting changes in earnings. The results indicate that there were increases in instability across the sample. The article shows that the central element in the case of diversification, is not supported by the empirical evidence.