The persistently high food inflation witnessed in India over the past few years has been a cause for concern. This column seeks to identify the major drivers of food inflation in India, and to evaluate the extent to which food inflation has had an impact on non-food and overall inflation.
The 5th IGC-ISI India Development Policy Conference will be held in the Qutab Hotel, New Delhi, from 17 - 18 July 2014. More details to follow!
Much of the developing world has begun to rapidly urbanise. This has led to the creation of developing cities and the emergence of mega-cities around the world. The benefits of this dense clustering of individuals have been well documented in many more developed cities. In that fact, it has been observed that productivity in these urban clusters is significantly higher in rural areas and that they do often become primary engines of economic growth. As a result, the potential effects of productive cities on economic growth in developing countries are very large.
The IGC Firm Capabilities Research Programme pulls economists with a common interest in firm capabilities together to focus on three core questions: (i) what are the key proximate determinants of firm productivity? (ii) Where does the productive capacity of firms originate? (iii) What are the barriers that prevent resources from moving from unproductive firms and sectors to areas of higher productivity?
In a sizable number of developing countries, the public sector fails to provide many, if not most, critical public goods necessary for economic development. The presence of a well-functioning state is key to encouraging economic growth. Part of this concerns having a public sector that has the capacity to raise revenues and spend them effectively; and that policymakers are incentivized to act in favour of their citizen. This paper discusses recent developments in the literature on state effectiveness.
Achieving reliable, widespread access to electricity will be transformative for many developing countries. It has significant effects on how households apportion their time and which methods and inputs are applied by productive enterprises. However, much of the world’s population remains without this reliable access or the benefits generated from it. This paper outlines many of the questions behind why this remains the case.
India was recently ranked 174th out of 178 countries, on air pollution. A key contributing factor is diesel vehicles. This column shows that diesel subsidies benefit the rich more than the poor, and emphasises the need to change current regulation to enforce fuel improvement measures. Although such policies seem expensive, the positive effects on sickness, health expenditures and productivity would outweigh the costs.
The International Growth Centre (IGC) invites researchers to submit proposals for high-calibre research projects relevant to growth policies in developing countries. The deadline for submission is 11:59pm, 31 May 2014, GMT time.
This is a comprehensive IGC call for proposals which encompasses its two central programmes: the Research and Country Programmes.
This project seeks to develop a dataset on the extent and location of de facto urbanisation – settlements with characteristics commonly thought of as urban - in India. Based on Census data, about one-third of India is often thought of as urban. However, census classification as urban requires at least 75% of the adult male workforce to be in non-farm employment and has a relatively high bar (in international comparison) for population density.
The Indian national government has embraced the development of corridors between major Indian cities as a key development strategy: for example, work on the Delhi-Mumbai Industrial Corridor is already underway while a second corridor between Mumbai, Bangalore and Chennai is being planned. This follows earlier policies like the development of the Golden Quadrilateral and the North-South and East-West corridors that emphasised connecting the four major Indian metros.