IGC Tanzania is seeking to develop its country work in Tanzania. Interested researchers are invited to consult our Call for Proposals.
Policy
The IGC will publish policy briefs that draw together the experience of different countries confronting similar development issues, such as managing oil revenues, macroeconomic stability and taxation. The first briefs are expected in late 2010.
In a study funded by IGC, Nick Bloom, Benn Eifert, Aprajit Mahajan, David McKenzie and John Roberts have examined the impact of the quality of management on firm productivity in India: improved management raised productivity by about 15% and profits by around 24%. This work shows that modern management practices are a type of technology that diffuses slowly between firms: lower barriers to the flow of information would speed this up. The authors also found that constraints regarding CEO ability and behaviour are also relevant in the longer term.
In Tanzania, Christopher Adam, Panteleo Kessy, Johnson Nyella and Stephen A. O’Connell have estimated a new money demand model which supported the development of inflation-targeting by the Bank of Tanzania. Other main central banks in the region are now requesting similar work, which therefore has the scope to shape any East African common currency.
Tony Atkinson and Maria Ana Lugo have explained why strong GDP growth has not led to a dramatic drop in headcount poverty in Tanzania. They argue that this is due, inter alia, to the way in which the proceeds of growth have been distributed as well as due to measurement issues. The apparent dissonance between GDP growth and changes in poverty is of interest in other countries as well. Explaining why these data can appear inconsistent sharpens the focus on the role of growth as a foundation for poverty reduction, as well as the importance of spreading the fruits of growth widely.
A mapping of industry in Ethiopia by John Sutton has shifted perceptions of industrial growth in the government and is shaping industrial sector policy. The work shows that large firms have not grown from small ones, but are mainly built from trading firms and by FDI. The findings will be published as a book (forthcoming), in support of a policy to attract more FDI.
Peter Blair Henry has contributed to shaping the macroeconomic framework for Ghana’s 2010 budget, and Tony Venables has contributed to the shaping of legislation on oil revenue management in Ghana. This legislation has passed through the cabinet and is awaiting parliamentary approval.