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Factors determining rural-urban market linkages in India
Bihar is enjoying increased rural-urban connectivity thanks to infrastructure improvements, fueling demand for goods, services and jobs. The factors influencing market linkages include sourcing inputs, catering to rural consumers, and access to public services. Jhanjharpur, India We were wandering down the main market of Jhanjharpur, a small town in North Bihar in India,...
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Forced devaluation of rupee: a recipe for disaster
There is broad agreement that the rupee is overvalued, with estimates of overvaluation ranging from 20-40 per cent. There are, however, two opposing views on how to deal with the problem: One, devaluation and two, administrative measures, i.e., export subsidies and regulatory duties on imports. The argument of the anti-devaluation group is that devaluation has never...
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Transport and job accessibility: Towards a competitive and inclusive Accra
A working age individual can only reach up to 32% of formal jobs by tro-tro within 60 minutes. Poor connectivity harms labour and firm outcomes. There is a need for investment in public transit, land-use reforms and low-income urban housing policies. Cities in sub-Saharan Africa (SSA) are urbanising at an unprecedented pace. As a result, they have often expanded...
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Mobile money: Leaving no one behind in the digital age
Kenya and Tanzania provide evidence on how technology holds promise for an inclusive, empowered and poverty-free future. Government support and improved financial literacy are found to be key drivers of financial inclusion in the developing world. Mobile money, one of the most popular innovations for development, is considered by many as a promising tool to open the door...
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Mobile money: Progress thus far, miles to go
2017 marks ten years since the launch of M-PESA in Kenya, undoubtedly the most successful mobile money product to date. Over the last decade, there have been many developments in the sector, and mobile money has emerged as a predominantly African innovation. A recent conference on Mobile Money and Financial Development, organised by the LSE’s Department of Management and...
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Blog post
The Fragility Commission’s final evidence session: The power of resilience
Countries facing fragility and conflict lack resilience to shocks, which feed off each other in a negative cycle. Identifying policies to build resilience, and recover and learn from shocks, can prevent future crises stemming from instability. In its fifth and final evidence session, held at the London School of Economics (LSE) on 28 September, the LSE-Oxford Commission...
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Risky business: Takeaways from the Fragility Commission’s 4th evidence session
In fragile environments, experts agree that strengthening the private sector is the key to economic and social progress. However, this is undermined by limited risk appetite and weak state capacity when investing and operating in fragile environments. LSE-Oxford Commission on State Fragility, Growth and Development In its fourth evidence session, held at the the London...
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The macroeconomic benefits of increasing tax enforcement in Pakistan
In Pakistan, increased tax enforcement may be a more effective way to raise revenues than increased tax rates, given the large share of informal employment. This could in turn increase GDP due to increased government investment capacity. Goods and taxes Like most developing countries, Pakistan has a comprehensive set of statutory taxes that firms are required to pay on a...
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Attracting quality foreign direct investment in developing countries
Foreign direct investment (FDI) in developing countries has a bad reputation. In some discussions, it is presented as tantamount to postcolonial exploitation of raw materials and cheap labour. However, recent data shows that FDI in developing countries increasingly flows to medium and high-skilled manufacturing sectors, involving elevated income levels (Figure 1). What’s...
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The need to prioritise export linkages in Uganda’s new growth strategy
Establishing a unit that focuses on tackling information constraints between firms, as well as a supplier database registry of domestic firms, can support export linkages in Uganda. Linking domestic tax data to such a firm registry would further enhance access to information, thereby improving export linkages and domestic firm competitiveness, in the pursuit of economic...
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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...