Wednesday 27 January 2010

The World Economic Forum is in full swing in Davos, Switzerland.


If you think that this is just an obscure meeting of bankers in a swanky ski resort to discuss global banking, think twice! Many important decisions concerning development problems are being made in Davos as the private sector becomes more directly involved in development policy. Treading over what was once the domain of NGOs and international agencies, private companies are now increasingly engaged in providing technical assistance to governments, in devising policies to deal with failed states, in running microfinance initiatives and even in delivering health care and education services to the poorest of the poor.

It is therefore important to understand the way business approaches complex problems in development. Take a look at what have been considered breakthrough ideas for 2010:


plenty of good ideas for dissertation topics...

Monday 25 January 2010

Reconstructing Haiti

Economists weigh in on how to get Haiti back on its feet.

Paul Collier, an economist at Oxford University, is actively involved in planning the reconstruction of Haiti as an advisor to several international agencies. Among other things, Collier suggests light manufacturing and export zones as a potential model for economic development in Haiti.

But perhaps the most controversial part of his plan is who would actually implement it. Collier argues that the Haitian government is in no position to take charge. As a result, the best way forward is to create a temporary development authority with wide powers to govern, under the auspices of the UN or an ad hoc group (US, Canada, EU or Brazil among others), spear-headed by an international figure like Bill Clinton. (or something along these lines...)

Paul Romer, an economist at Stanford University, has recently been advocating the development of charter cities, where people can live and work more freely, in an environment defined by better institutions and rules. To learn more about this revolutionary idea see ( http://www.ted.com/talks/paul_romer.html) and (http://freakonomics.blogs.nytimes.com/2009/09/29/can-charter-cities-change-the-world-a-qa-with-paul-romer/).

Haiti is a clear example of how misgovernance affects development so not surprisingly, the possibility of creating a charter city in Haiti became an appealing idea for some! Paul is now quelling the enthusiasm over this possibility given the level of devastation the country faces.


Michael Clemens, an economist at the Center for Global Development, considers immigration policy in the West to be the best non-interventionist approach to rebuilding Haiti:


These are three great examples of how simple economic ideas can inform policy and yet, more often than not, the ultimate challenge still lies in the political economy of policy implementation. Let's stay tuned because the debate is just starting...

A great suggestion by Stefan for those who are interested in the topic:
http://www.nytimes.com/2010/01/17/opinion/17rebuildhaiti.html

Dambisa Moyo at LSE

Dambisa Moyo is part of a growing group of African scholars and thinkers who want to change the way we think about Africa, its potential and its future. If you can't make it to the talk, here is an entertaining clip of Dambisa being interviewed by Bill Easterly and sharing her views on Bono and Angelina.


Why Aid Is Not Working and How There Is Another Way for Africa

26 January 2010, 6:30pm

The economist Dambisa Moyo argues that millions are poorer because of aid.
Speaker: Dambisa Moyo, economist and author of Dead Aid: Why Aid is Not Working and How There is a Better Way For Africa
Organiser: London School of Economics
Venue: Old Theatre, Old Building, London School of Economics, Houghton Street, London WC2.
Website: http://www.lse.ac.uk/events
Email: events@lse.ac.uk