The Hollow Ring of Donor Commitment: Country Concentration and the Decoupling of Aid‐Effectiveness Norms from Donor Practice

The fragmentation of a donor's foreign aid across too many recipient countries is widely believed to be detrimental to aid effectiveness. This article explores the origins of a new norm – recipient concentration – and assesses the extent to which it can be expected to improve aid effectiveness. It also examines 23 donors' actual record of country concentration, and finds that, though there are some potential explanations for donors' behaviour, their collective failure to implement country concentration has very little consequence in theory or in practice.     

DONOR PREFERENCES AND RECIPIENT FISCAL BEHAVIOR: A SIMULTANEOUS ANALYSIS OF FOREIGN AID

We theoretically develop and empirically estimate a preference model determining foreign aid donor behavior. Aid access and levels are separately determined by endogenous budgetary allocations, the international economic environment, the distribution of income between countries, basic human needs, the small country effect, and regional bias. We find fungibility of aid in recipient budgets is due to donor and recipient preferences. Despite the importance of other economic influences, we find a significant pro-poor country bias in aid allocations, although little aggregate influence of basic human needs or regional bias. The small country effect is significant for two (of six) donors. (JEL F35, O19, H 77)     

DOES NATION BUILDING SPUR ECONOMIC GROWTH?

Nation building, the allocation of economic aid conditional on military assistance in conflict and post‐conflict environments, has cost the world trillions of dollars over the last half century. Yet few attempts have been made to quantify the potential economic growth effects for the recipient country from the provision of this aid. Using a 45‐year panel dataset, we construct a measure of nation building using a three‐way interaction term between military assistance, economic aid, and conflict regime. Considering that slow growing and problem‐prone countries may be less likely to receive aid, we instrument for economic aid by estimating donor‐to‐donee aid flows in a first‐stage procedure. Using this approach, we find that spending on nation building has positive growth effects during conflict periods, but that these effects disappear after conflict. (JEL F3, F4, O5)     

What’s India’s Beef with Meat? Hindu Orthopraxis and Food Transition in India Since the 1980s

Does development affect food practices? The nutrition transition model correlates positively meat consumption levels with gross domestic product per capita, except in India. In this article, I analyze food diets in this country since the 1980s by mapping out households’ practices in animal product consumption depending on their social positions. Applying multiple factor analysis on the Consumer Expenditures data of the National Sample Survey Office, I produce a relational model of food diet segmentation to overcome the dead ends of the nutrition transition model. Two structural dimensions are highlighted. The first one differentiates beef and nonbeef meat diets and relates to the symbolic capital of caste and religion. The second one opposes diets including animal products and without, depending on the amount of economic capital. The concept of temporal homology is introduced to show that the social structure remains stable over time. This denotes the importance of sociocultural norms in food practices rather than their weakening due to “modernization” and shows how these norms are key to understand food transitions beyond linear expectations drawn from economic development.     

Do Aid Donors Specialize and Coordinate within Recipient Countries? The case of Malawi

Acknowledging that aid proliferation and a lack of coordination impair aid effectiveness, donors have repeatedly promised to specialize and better coordinate their aid activities, notably in the Paris Declaration of 2005. We exploit data on the exact location of aid projects in Malawi to assess whether the country's bilateral and multilateral donors have acted accordingly at the district and sector level. We do not find compelling evidence for increased aid specialization after the Paris Declaration, and the regional division of labour among donors may even have deteriorated. Our within‐country evidence thus broadly corroborates what previous studies have found at the national level of recipient countries.     

Casino gambling and bankruptcy in new United States casino jurisdictions

Using quarterly data on personal consumer bankruptcy for 1989:Q4 through 1998:Q1, this study examines the impact that the introduction of casino gambling has on per capita personal bankruptcy filings. Eight jurisdictions that have recently adopted gambling are compared with a set of matching control jurisdictions, communities without casinos that are economically and demographically similar to the eight communities. The results reveal that casino gambling is associated with an increase in personal bankruptcy in seven of the eight communities. In five of the seven the increase is statistically significant. However, an increase is not universal and in one community, Harrison County, Mississippi (Biloxi), bankruptcy per capita significantly decreased. It is speculated that this decrease is due to the features of both the community and the casino industry in Biloxi. Finally, the most significant changes in bankruptcy occur among Chapter 13, as opposed to Chapter 7, filings. This suggests that a growing portion of insolvents are creating repayment plans for their debts. Policy implications of the findings are discussed.     

The Macroeconomics of Doubling Aid to Africa and the Centrality of the Supply Side

The proposed doubling of aid to Africa by 2010 is a less simple proposition, from a recipient point of view, than is commonly supposed. This article argues that it is difficult to manage large and rapidly increasing aid inflows in ways which do not disadvantage producers of tradeable goods, and the private sector generally. This difficulty can be averted if conscious efforts are made to offset it and to stimulate positive responses from the supply side. Whether such responses prevail over the shorter‐term management difficulties depends on the efficacy of state actions — and of aid — to bolster the supply side. The outcome is likely to be mixed, depending on country circumstances.     

DOES THE SAMARITAN'S DILEMMA MATTER? EVIDENCE FROM U.S. AGRICULTURE

The Samaritan's dilemma posits a downside to charity: recipients may rely on free aid instead of their own efforts. Anecdotally, the expectation of free assistance is thought to be important for decisions about insurance and risky behavior in numerous settings, but reliable empirical evidence is scarce. We estimate whether the Samaritan's dilemma exists in U.S. agriculture, where both private crop insurance and frequent federal disaster assistance are present. We find that bailout expectations are qualitatively and quantitatively important for the insurance decision. Furthermore, aid expectations reduce both expenditure on farm inputs and subsequent crop revenue. (JEL D72, H84, Q18)     

SCHOOL QUALITY AND RETURNS TO EDUCATION OF U.S. IMMIGRANTS

Using the U.S. labor market as a common point of reference, this article investigates the influence of source country school quality on the returns to education of immigrants. Based on 1980 and 1990 census data, we first estimate country-of-origin specific returns to education. Results reveal that immigrants from Japan and northern Europe receive high returns and immigrants from Central America receive low returns. Next we examine the relationship between school quality measures and these returns. Holding per capita GDP and other factors constant, immigrants from countries with lower pupil-teacher ratios and greater expenditures per pupil earn higher returns to education.)     

Social Heterogeneity and Volunteering in U.S. Cities

In this research we explore the relationship between social heterogeneity and volunteering across U.S. metropolitan areas testing a theory that race heterogeneity, racial segregation, and income inequality are negatively associated with the rate of volunteering. Theorizing that social heterogeneity will have different effects for religious and secular volunteering rates, we analyze them separately. We use nonlinear multilevel models to analyze nearly 200,000 individuals across 248 cities, controlling for nonprofits per capita, religious congregations per capita, proportion of the population with college degrees, and the family poverty rate. While much of the intercity variation in volunteering is due to the composition of the population living in each city, we find general support for the predicted negative effect of social heterogeneity on volunteering. However, the effects vary by volunteering type. Race heterogeneity is negatively related only to secular volunteering, racial segregation is negatively related to both general volunteering and secular volunteering, and income inequality is negatively related to all types of volunteering.     

Monitoring Partnership‐based Aid Relationships: A Note

Based on the premise that moves towards partnership‐based aid relationships require that the monitoring and evaluation of such relationships should be jointly conducted or sponsored, this note draws attention to an experiment conducted in Tanzania for monitoring by an independent group, drawn from the recipient country and from outside. It seeks to identify the key ingredients of successful use of such a model and urges its wider adoption.     

An alternative test of Kuznets’ hypothesis

This paper uses a novel approach for testing Kuznets’ hypothesis. Following Kuznets’ original insights, we test for an inverted U relationship between employment outside agriculture and income inequality, instead of the traditional focus on GDP per capita and income inequality. Our results, obtained using panel and country by country regressions, do not support Kuznets’ hypothesis.     

Transnational Corporate Investment and Food the Third World: A Cross-National Analysis1

Abstract World-system theory, dependency theory, and other critical perspectives indicate that activities of transnational corporations (TNCs) promote hunger in the Third World. However, cross-national research on effects of dependence has largely ignored this fundamental manifestation of underdevelopment. This study examines the impact of transnational corporate investment on food consumption in 60 countries. Per capita consumption of calories and protein from 1970 to 1985 is regressed on 1967 transnational corporate investment penetration (investment stocks), 1967 consumption, and appropriate controls. The results strongly support perspectives critical of TNCs. Transnational corporate penetration has a substantial detrimental effect on food consumption which grows with the length of the lag between penetration and the dependent variables. This finding is confirmed by robust regression analysis. Over the 1967–1985 period, countries with minimal transnational corporate penetration are estimated to have gained approximately 700 more calories and 20 more grams of protein consumption per person per day than countries with maximal transnational corporate penetration.     

Threshold Effects in the U.S. Budget Deficit

We contribute to the debate on whether the U.S. large federal budget deficits are sustainable in the long run. We model the U.S. government deficit per capita as a threshold autoregressive process. We find evidence that the U.S. budget deficit is sustainable in the long run and that economic policy makers will only intervene to reduce per capita deficit when it reaches a certain threshold. (JEL C32 , E62 )     

The European Union's migration management aid: Developing democracies or supporting authoritarianism?

The European Union and its member states have invested billions of euros in migration management programs that purport to promote “good migration governance” around the world. But what is the impact of migration management aid on governance outside of the EU? In this article, we theorise the impact of migration management aid on governance in recipient countries by analysing the key policy areas of intervention. To do so, we focus on the effects of the European Union Emergency Trust Fund for Africa and draw on data collected from policy and government documents, in addition to secondary literature, to understand how migration management aid negatively impacts institutions of governance in recipient countries. While migration management aid may build the capacity of states to monitor borders and prevent irregular migration, we argue that this fails to account for negative externalities including human rights abuses and increased surveillance for migrants and citizens alike.     

Agricultural Exports,Food Production,and Food Security in Latin America1

Abstract This study assesses the impact of agricultural, export-oriented policies on food consumption through a time-series, cross-sectional regression model. The results of this study lead to three basic conclusions. First, there is a significant negative relationship between agricultural export promotion and food consumption. Economic growth and increasing agricultural exports earnings do not necessarily increase food security. Second, protein consumption per capita constitutes a more sensitive indicator of changes in food consumption and a proxy for the distributional dimension of the food consumption problem. Third, alternative policies should incorporate agricultural export into a broader agroindustrial development strategy aimed at achieving food security both by increasing income and by food production.     

Inverse J Effect of Economic Growth on Fertility: A Model of Gender Wages and Maternal Time Substitution

This paper presented a model where economic growth, via growth in female wages relative to male wages, encouraged households to raise paid female labor supply and have more children by substituting child care for maternal time. A threshold logarithm per capita output, above which fertility decline reverses, was predicted to depend on subsidized child care, maternity pay, and the value placed on children and maternal time spent rearing children. The predictions explained recent evidence and identified cross country differences in gender wages, family policy and willingness to substitute maternal time in childrearing as important factors in an inverse J-shaped effect of economic growth on fertility. The analysis was robust to the introduction of education and cost sharing among children in child rearing. Economies of scale in child rearing reduced the threshold logarithm of per capita output. Demand for child quality continued to rise with wages despite fertility decline reversal.     

Minority Composition,Inequality and the Growth of Municipal Police Forces, 1960–71

Abstract

Recent studies, in finding that community variables such as percentage Black and income inequality have significant effects on police size and expenditures, call into question the findings of earlier research. However, these recent studies are themselves subject to serious methodological limitations and leave open the question of whether it is class or racial conflict which affects the deployment of police resources. In this study we estimate several simultaneous equation models of police size per capita in 1971 for 88 non-Southern cities. Bach of these models holds constant the effects of per capita police size in 1960. Racial composition and racial inequality are found to be the only significant predictors of the growth in the number of police per capita.     

Funding Civil Society? Bilateral Government Support for Development NGOs

Research on the determinants of foreign aid tends to focus on the relationship between donor country priorities and recipient state characteristics, but donors also make decisions about which organizations and programs within countries will receive assistance. Although NGOs increasingly have been recipients of foreign aid, few data are available to investigate which organizations within a given country receive that funding. Donors may prioritize structural characteristics of NGOs or their local ties—or they may seek a combination that blends concern about efficiency and accountability with an interest in developing national civil society. We use original data from Cambodia to explore whether aid is likely to go to managerial organizations (professionalized NGOs and NGOs that utilize modern management tools) or to organizations that are embedded in the domestic context. We argue that managerialism provides legitimacy for NGOs by signaling capacity and accountability to donors, increasing the likelihood of government funding. We argue that local embeddedness also confers legitimacy by aligning community ties and networks to rights-based development, increasing the likelihood of government funding. We find general support for the managerialism argument, but donor agencies do not prioritize direct funding for “indigenous” NGOs—not even among those with high levels of managerialism.     

Effects of Macroeconomic Uncertainty on Investment and Economic Growth: Evidence from Pakistan

The relationship between macroeconomic uncertainty, investment and economic growth is an empirical issue in developing countries. This paper investigates the effects of macroeconomic uncertainty on investment and economic growth in Pakistan for the period 1975–2008 by using the accelerator model of investment and endogenous growth model. The conditional variances, directly estimated through the Generalized Autoregressive Conditional Heteroscedasticity (GARCH) model is utilized for erecting the uncertainty variables related to fiscal policy, openness and foreign capital inflows. The results clearly indicate that the macroeconomic uncertainty have significant negative effects on investment and per capita income of Pakistan. We conclude that a reduction in macroeconomic uncertainty through appropriate fiscal and monetary policy, stability in capital inflows and improved trade performance could result in high investment and sustainable economic growth in the country.