World Institute for Development Economics Research

About: World Institute for Development Economics Research is a facility organization based out in Helsinki, Finland. It is known for research contribution in the topics: Poverty & Population. The organization has 110 authors who have published 525 publications receiving 17316 citations.

Adapting to climate change: an integrated biophysical and economic assessment for Mozambique

Abstract: Mozambique, like many African countries, is already highly susceptible to climate variability and extreme weather events. Climate change threatens to heighten this vulnerability. In order to evaluate potential impacts and adaptation options for Mozambique, we develop an integrated modeling framework that translates atmospheric changes from general circulation model projections into biophysical outcomes via detailed hydrologic, crop, hydropower and infrastructure models. These sector models simulate a historical baseline and four extreme climate change scenarios. Sector results are then passed down to a dynamic computable general equilibrium model, which is used to estimate economy-wide impacts on national welfare, as well as the total cost of damages caused by climate change. Potential damages without changes in policy are significant; our discounted estimates range from US$ 2.3 to US $7.4 billion during 2003–2050. Our analysis identifies improved road design and agricultural sector investments as key ‘no-regret’ adaptation measures, alongside intensified efforts to develop a more flexible and resilient society. Our findings also support the need for cooperative river basin management and the regional coordination of adaptation strategies.

Social Assistance in Developing Countries Database

Abstract: The Social Assistance in Developing Countries Database aims to: - provide a summary of the evidence available on the effectiveness of social assistance interventions in developing countries; - focus on programmes seeking to combine the reduction and mitigation of poverty, with strengthening and facilitating household investments capable of preventing poverty and securing development in the longer term - select programmes for inclusion in the database on the basis of the availability of information on design features, evaluation, size, scope, or significance; - provide summary information on each programme in a way that can be easily referenced by DFID staff and others with only a basic level of technical expertise. Version 5 updates information on existing programmes and incorporates information on the following programmes: -Conditional cash transfers pilots in Kenya, Zambia, and Malawi -Integrated poverty reduction programmes in Panama, and the Dominican Republic -Conditional cash transfer programmes in Paraguay -CHARS in Bangladesh combining climate change adaptation, asset protection and accumulation, and transfers -Basic Income Grant Pilot in Namibia which, although not strictly a social assistance programme, will be of interest to users of the Database

Corruption and the efficiency of capital investment in developing countries

Abstract: This paper considers the effect of corruption on the effciency of capital investment. Using firm-level level data from the World Bank enterprise surveys, covering 90 developing and transition economies, we consider whether the cost of informal bribe payments distorts the efficient allocation of capital by reducing the marginal return per unit investment. Using country estimates of fractionalization and legal origin as instruments, and controlling for censoring, we find that bribery decreases investment efficiency, as measured using both absolute and relative metrics of investment returns. The negative effect is strongest for domestic small and medium-sized enterprises while there is no significant effect on foreign and large domestic firms. We conclude that reducing the level and incidence of bribery by public officials would facilitate a more efficient allocation of capital. This in turn would support economic growth and development, particularly for small and medium-sized enterprises.

Inequality and Welfare Evaluation of Heterogeneous Income Distributions

Abstract: This paper establishes the principles that should govern the welfare and inequality analysis of heterogeneous income distributions. Two basic criteria – the ‘equity preference’ condition and the ‘compensation principle’ – are shown to be fundamentally incompatible. The paper favours the latter, thereby vindicating the traditional method of dealing with heterogeneous samples. However, inequality and welfare comparisons will usually be well defined only if equivalent incomes are obtained using constant scale factors; and researchers will need to distinguish clearly between inequality of nominal incomes and inequality of living standards. Furthermore, household observations must always be weighted according to family size.

The political economy of Zimbabwe's descent into conflict

Abstract: The last two years have seen intensifying political violence in Zimbabwe. Could Zimbabwe slide further into political and economic turmoil? Or are there sufficient checks and balances in the social system to halt decline? The paper argues that the failed economic stabilization of the 1990s led to increased support for the opposition movement, especially among the middle-class and trade unionists who were hit by high inflation. The veterans of the liberation war and peasants—who are the power base of the ruling party both ideologically and as voters—also became increasingly disgruntled as they had received very little after independence while the leadership had enriched itself. The government was able buy the loyalty of the war veterans and to use them to intimidate the opposition, although it does not have full control over their actions. The paper concludes that democratic forces within civil society can play an important role in conflict prevention and resolution by building bridges between the different dissatisfied groups. Copyright © 2003 John Wiley & Sons, Ltd.