Economic Development

Democratization and Universal Health Coverage: A comparison of the experiences of Ghana, Kenya, and Senegal

Democratization and Universal Health Coverage: A comparison of the experiences of Ghana, Kenya, and Senegal
Global Health Governance, 6(2): 1-27.

Grépin, Karen and Kim Yi Dionne
09/23/2013

This article identifies conditions under which newly established democracies adopt Universal Health Coverage. Drawing on the literature examining democracy and health, we argue that more democratic regimes – where citizens have positive opinions on democracy and where competitive, free and fair elections put pressure on incumbents – will choose health policies targeting a broader proportion of the population. We compare Ghana to Kenya and Senegal, two other countries which have also undergone democratization, but where there have been important differences in the extent to which these democratic changes have been perceived by regular citizens and have translated into electoral competition. We find that Ghana has adopted the most ambitious health reform strategy by designing and implementing the National Health Insurance Scheme (NHIS). We also find that Ghana experienced greater improvements in skilled attendance at birth, childhood immunizations, and improvements in the proportion of children with diarrhea treated by oral rehydration therapy than the other countries since this policy was adopted. These changes also appear to be associated with important changes in health outcomes: both infant and under-five mortality rates declined rapidly since the introduction of the NHIS in Ghana. These improvements in health and health service delivery have also been observed by citizens with a greater proportion of Ghanaians reporting satisfaction with government handling of health service delivery relative to either Kenya or Senegal. We argue that the democratization process can promote the adoption of particular health policies and that this is an important mechanism through which democracy can improve health.

Banks and Microbanks

Banks and Microbanks
Journal of Financial Services Research

Robert Cull, Asli Demirgüç-Kunt, and Jonathan Morduch
09/16/2013

We combine two datasets to examine whether the presence of banks affects the profitability and outreach of microfinance institutions.We find evidence that competition matters. Greater bank penetration in the overall economy is associated with microbanks pushing toward poorer markets, as reflected in smaller average loans sizes and greater outreach to women. The evidence is particularly strong for microbanks relying on commercial-funding and using traditional bilateral lending contracts (rather than group lending methods favored by microfinance NGOs). We consider plausible alternative explanations for the correlations, including relationships that run through the nature of the regulatory environment and the structure of the banking environment, but we fail to find strong support for these alternative hypotheses.

Parallel paths to enforcement: Private compliance, public regulation, and labor standards in the Brazilian sugar sector

Parallel paths to enforcement: Private compliance, public regulation, and labor standards in the Brazilian sugar sector
Politics & Society

Coslovsky, Salo and Richard Locke
09/16/2013

In recent years, global corporations and national governments have been enacting a growing number of codes of conduct and public regulations to combat dangerous and degrading work conditions in global supply chains. At the receiving end of this activity, local producers must contend with multiple regulatory regimes, but it is unclear how these regimes interact and what results, if any, they produce. This paper examines this dynamic in the sugar sector in Brazil. It finds that although private and public agents rarely communicate, let alone coordinate with one another they nevertheless reinforce each other’s actions. Public regulators use their legal powers to outlaw extreme forms of outsourcing. Private auditors use the trust they command as company insiders to instigate a process of workplace transformation that facilitates compliance. Together, their parallel actions block the low road and guide targeted firms to a higher road in which improved labor standards are not only possible but even desirable.

Enforcing food quality and safety standards in Brazil: The case of COBRACANA

Enforcing food quality and safety standards in Brazil: The case of COBRACANA
The Annals of the American Academy of Political and Social Science 2013, 649 (1), pp.122-138

Coslovsky, Salo
09/16/2013

Globalization of production has been complemented by increasingly stricter product quality and safety regulations. This trend is particularly acute in the food and beverage sectors, which puts enormous strain on producers from developing nations. This paper examines the trajectory of a cooperative of sugarcane, sugar and ethanol producers from Brazil that, once confronted with this challenge, failed to meet the standards but ultimately came around. It credits the coop’s turnaround to three variables: (a) a new cost accounting methodology that monetized some of the differences in product quality and attenuated tensions among the membership; (b) a low-cost but high-powered system of regulatory incentives that subverted rigid hierarchies and empowered middle-managers vis-à-vis top-executives; and (c) the action of external auditors who acted not as police-officers or consultants, but as conduits who reestablished information flows and helped create a business atmosphere conducive to productive change.

Economic development without pre-requisites: How Bolivian firms met food safety standards and dominated the global brazil-nut market

Economic development without pre-requisites: How Bolivian firms met food safety standards and dominated the global brazil-nut market
World Development

Coslovsky, Salo
09/16/2013

Brazilian firms used to dominate the brazil nut (BN) market to such an extent that the product still carries the country’s name. Presently, 77% of all BNs are processed and exported by Bolivia, a country with far fewer resources than its neighbor. This paper analyzes the impact of EU regulations on the global BN market. It finds that Bolivian producers prevailed because they joined forces to revamp their manufacturing practices and meet EU sanitary standards despite continued mutual mistrust. In contrast, Brazilian producers have been unable to work cooperatively and lost access to the European market entirely.

Flying under the radar? The state and the enforcement of labor laws in Brazil

Flying under the radar? The state and the enforcement of labor laws in Brazil
Oxford Development Studies

Coslovsky, Salo
09/16/2013

In recent years, developing countries have deregulated, privatized and liberalized their economies. Surprisingly, they have also retained or even strengthened their labor regulations. These contrasting policy orientations create a novel challenge without obvious solutions. To understand how developing country states can ensure reasonable levels of labor standards without compromising the ability of domestic firms to compete, this paper examines how labor inspectors and prosecutors intervened in four troublesome industries in Brazil. It finds that regulatory enforcement agents use their discretion and legal powers to realign incentives, reshape interests, and redistribute the risks, costs and benefits of compliance across a tailor-made assemblage of public, private and non-profit agents adjacent to the violations. By fulfilling this role, these agents become the foot-soldiers of a post-neoliberal or neo-developmental state.

Moroccan Migrants as Unlikely Captains of Industry: Remittances, Financial Intermediation, and La Banque Centrale Populaire

Moroccan Migrants as Unlikely Captains of Industry: Remittances, Financial Intermediation, and La Banque Centrale Populaire
In S. Eckstein, ed. Immigrant Impact in their Homelands. Durham: Duke University Press.

Iskander, N.
09/06/2013

The impact that remittances – the monies that migrants send home – have on the development on migrant-sending economies is a matter of considerable debate. This essay presents the case of Morocco and its state-controlled bank, La Banque Centrale Populaire (BCP), to argue that the major determinant of remittance impact on development is the quality and breadth of financial intermediation to which migrants have access. By providing a set of financial tools that allowed migrants to deposit, save, and invest with the institution, the BCP, since 1969, simultaneously made remittances funds available the migrants for their personal expenditures and to the Moroccan government for large-scale industrial investment. However, to create financial services for migrants with an appeal broad enough to bring significant amounts of remittance liquidity into the banking sector, BCP had to engage migrants in an open and collaborative process of product design. Ultimately, this paper argues, migrants’ involvement in the design of financial products enabled them to use the banking system to redirect remittances resources to rural and semi-rural areas most migrants were from, and to amend the industrial development priorities of the Moroccan government.

The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence

The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence
Journal of Development Studies

David Roodman and Jonathan Morduch
06/03/2013

We replicate and reanalyse the most influential study of microcredit impacts (Pitt and Khandker, 1998). That study was celebrated for showing that microcredit reduces poverty, a much hoped-for possibility (though one not confirmed by recent randomized controlled trials). We show that the original results on poverty reduction disappear after dropping outliers, or when using a robust linear estimator. Using a new program for estimation of mixed process maximum likelihood models, we show how assumptions critical for the original analysis, such as error normality, are contradicted by the data. We conclude that questions about impact cannot be answered in these data.

Migration and development, global South / Mexico-Morocco

Migration and development, global South / Mexico-Morocco
I. Ness, ed. The Encyclopedia of Global Human Migration. Wiley Blackwell

Iskander, N.
02/04/2013

In recent years, the relationship between migration and development has received renewed attention, and analysts, policy-makers, and development experts have returned to the question of how to use emigration to foster economic growth in countries and communities of origin. The main thrust of this inquiry has focused on how to use remittances – the monies that migrants send back home – to support economic activity (de la Garza & Orozco 2002; Orozco 2002; Munzele Maimbo & Ratha 2005; Ratha 2005). However, among countries with high emigration rates, a handful of governments have expanded their emphasis past remittances to create policies that link emigration and development in a more comprehensive way (Castles & Delgado Wise 2008). Morocco and Mexico feature prominently among them. Both countries have policies to link emigration with local and national economic transformation that reach beyond a narrow focus on remittances, and that, more importantly, are creative, participatory, and dynamic (Iskander 2010). At their outset, however, the policies were as single-minded in their focus on remittances as any of the more mercenary examples of today.

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