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Blog post
Do cash transfers make the poor work less?
Analysing the impact of cash transfers in Iran helps to dispel the myth that they encourage the poor to work less. Admittedly, these transfers occurred in the context of rising bread and energy prices, meaning the lessons are particularly important for oil-rich countries that subsidise energy. In December 2010, Iran raised prices for bread and energy products by factors...
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Blog post
Trade liberalisation in developing countries: The importance of roads
Research on Ethiopia shows that trade liberalisation can boost the productivity of firms in developing countries, but only if they have access to good roads. Gains from trade liberalisation are not uniform within countries Many developing countries have liberalised trade in the hope that greater international exposure will improve the performance of local firms. Lower...
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Blog post
Congestion pricing to solve peak-hour traffic jams? Not so fast!
Evidence from Bangalore shows that congestion pricing is not as effective in reducing travel times as one might presume. Peak-hour pricing only marginally improved travel times, whilst also triggering schedule costs for commuters induced to change their travel times. Traffic congestion is a chronic problem in large cities across the world. Millions of urban commuters...
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Blog post
EU-Africa trade relations: Why Africa needs the economic partnership agreements
Africa should ratify the Economic Partnership Agreements (EPAs), make use of their flexibilities, if necessary, and hold the EU’s feet to the fire on the implementation of the EPA’s development component. The Economic Partnership Agreements (EPAs) are trade deals between Europe and regions in Africa, the Caribbean and the Pacific, designed to end preferential treatment...
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Blog post
Can the MSME sector transform the Tanzanian economy?
Although it’s true that the average MSMEs and informal firm is small and doesn’t grow, this doesn’t mean that MSMEs don’t have a key role to play in economic growth and structural transformation. Evidence suggests that a small number of high growth firms can have a growth and productivity impact. Policy needs to accommodate different types of MSMEs and target policy...
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Blog post
Informal taxation in rural Kenya
The informal taxation system in Kenya is widespread and regressive. It responds to changes in permanent income, rather than temporary income, suggesting that permanent income increases are important for public goods provision. A central question in development economics is how to fund public goods such as water resources, roads, and schools. The standard mechanism of doing...
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Blog post
US foreign aid: How is it spent?
Angus Deaton argues that 3-5 million Americans are “as destitute as the world’s poorest people”, and wants us to adjust aid spending accordingly. His argument has flaws: he mixes data and ignores the fact that the US is already spending a lot more domestically than abroad. In late January 2018, Angus Deaton, 2015 Nobel Prize winner for his work on welfare and...
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Blog post
Determinants of global air pollution exposure
The map below is based on 14 years of remotely sensed measurements of airborne particulates. It shows unsurprising patterns in the distribution of air pollution across the globe. There are high levels of pollution in China, India, and sub-Saharan Africa. Agricultural burning in the Amazon is important for central South America. North America and Europe are relatively...
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Blog post
Where are Kampala’s missing houses?
Kampala is facing a dearth of affordable formal housing. Rural-urban migration, limited access to mortgage finance, and a host of other factors are all straining its housing sector. It is imperative for planners to think of innovative and sustainable ways to address this issue. Rapid urbanisation across sub-Saharan Africa has had far-reaching implications for housing....
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Blog post
Understanding how political violence impacts spending patterns
Using spending pattern insights and media reports of violence, we can see how fear can heavily influence consumers. Politically motivated violence has important economic effects. Apart from the direct impact of terrorism on its victims, it deters investment in education and businesses. The fear of violence has driven millions of people away from their homes every year,...
Blog post
Evidence-based tax policy: A policymaker’s perspective
Collaborative research can play an important role in addressing the challenges that tax authorities in Africa face. IGC’s regional tax conference in Lusaka brought together tax authorities from several African countries to share their experiences and insights on using evidence in tax policy design and enforcement. Tax collection agencies across the world are facing...