Who Benefits from Higher Education in Low- and Middle-Income Countries?

In this article, we investigate how higher education contributes to the employment and earnings of individuals in labour markets, and whether social origins play a role in the financial benefits from higher education. We focus on these questions in nine low- and middle-income countries: Armenia, Bolivia, Colombia, Georgia, Ghana, Kenya, Laos, Macedonia, and Vietnam. We use the recent Skills Towards Employability and Productivity (STEP) surveys of urban labour force participants to examine individuals’ educational attainment, labour market participation, and earnings. Using logistic regressions, we find that individuals from disadvantaged origins are less likely to obtain a higher education degree. We find that in most of these countries, individuals who have earned a higher education degree are significantly more likely to be in the labour force and find employment, and enjoy sizable earnings premia. The findings are fairly robust with regard to the samples of individuals examined, and the methods used to measure earnings premia. Finally, we find little evidence that the earnings premia from higher education vary by social origins or the likelihood of an individual completing a degree. These results suggest that the benefits from higher education are comparable for individuals from disadvantaged and advantaged social origins.     

Morton's Fork: “Democracy” Versus Neopatrimonialism in Developing Countries

It is argued that conditions for social justice in developing countries are deficient under both state capitalism (“democracy”) and neopatrimonialism. Development assistance is similarly constrained, but it also has shortcomings in relation to “democracy” promotion. Political economy analyses can provide authentic insights into how poor people negotiate for public goods, but such interactions seem unlikely to yield sustainable social justice for most citizens. The assessment calls for a reconfiguration of power relations and a more egalitarian distribution of public goods within and between countries, which is what most people are predisposed to want and are entitled to expect and enjoy.     

What Drives Japanese INGOs to Operate in Latin American Countries?

International nongovernmental organizations (INGOs) provide essential aid and public services to less-developed countries. Although most literature focuses on Western INGOs, Asian INGOs have also become globally active. Little is known about what motivates INGOs to provide services in other regions, such as Latin America. In this study, we seek to identify the criteria Japanese INGOs use to select Latin American recipient countries. We propose that Japanese INGO operational location decisions are a function of Japanese foreign policy agenda, Japan-recipient country business relations, and recipient country’s need and liberalization. Using data from Japanese INGOs working in Latin America and 24 Latin American countries on contextual, macroeconomic, and demographic indicators, we find that the significant factors driving INGO decisions to operate in Latin American countries are need and the presence of Japanese businesses in the recipient country. Results have practical implications for foreign aid targeting and economic development.     

What Has Driven the Great Fertility Decline in Developing Countries since 1960?

Several developing countries are currently experiencing a significant fertility decline, however, academic economists have paid little attention to this transition. This paper seeks to explain the fertility transition by infant mortality, urbanisation, income, culture and educational attainment of females and males using annual data for 92 developing countries over the period 1960–2014. External instruments are used to deal with endogeneity. The results suggest that increasing per capita income, improved female education and increasing secularisation have been important determinants for declining fertility in the developing world.     

Sanitation and Religion in South Asia: What Accounts for Differences across Countries?

Exposure to open defecation has serious consequences for child mortality, health, and human capital development. South Asia has the highest rates of open defecation worldwide, and although the incidence declines as household income rises, differences across South Asian countries are not explained by differences in per capita income. The rate of open defecation in sub-national regions of Bangladesh, India and Nepal is highly correlated with the fraction of the population that identifies as Hindu, in part because certain rituals of purity and pollution discourage having latrines in close proximity to one’s home. Almost all open defecation occurs in rural areas, and this paper estimates how much the rate could be reduced if rural households in regions that have a higher fraction of Hindus, where open defecation is still common, altered their behaviour to reflect that of non-Hindu households in regions that are predominantly non-Hindu, where the rate of open defecation is much lower. Using nonparametric reweighting methods, this paper projects that rural open defecation in Bangladesh, India, and Nepal could be reduced to rates of between 6 and 8 per cent, compared to the prevailing level of 65 per cent.     

Mayors in Seven European Countries: Part II – Performance and Analysis

In their search for innovative policy solutions to complex social problematics, local governance practitioners will look to synergising specific policy guidance from government departments with conceptual scientific research outputs. UK academics are also now expected to emphasise the relevance of their research and to increase its utilisation by practitioners. Away from utilitarian pressures, academics from applied discipline, such as Public Administration and Local Government Studies are increasingly drawn to the benefits of co-produced research. Despite the pressure for more co-research there are few opportunities for practitioners and academics to nurture relationships that would support close collaboration. This paper looks at the opportunity for closer collaboration when practitioners undertake research degrees, in order to enhance their cognitive skills and develop greater scientific knowledge of particular policy domains. If this route to closer collaboration is to succeed, it will require academics to think differently about their relationship with practitioner-students.     

Does Child Undernutrition Persist Despite Poverty Reduction in Developing Countries? Quantile Regression Results

The eradication of child undernutrition and extreme poverty are important objectives for most societies. Countries with higher national incomes usually improve in both dimensions, but not always at the same rate. Using quantile regression, we show that poverty rates tend to decline with increased income at a roughly constant elasticity. In contrast, while the prevalence of child wasting declines at that same elasticity where it is most widespread, the elasticity becomes smaller as wasting becomes less prevalent. This finding suggests a greater need for increasingly targeted interventions to achieve a given reduction in undernutrition as its prevalence declines.     

Developing Countries in Need: Which Characteristics Appeal Most to People when Donating Money?

Abstract

A discrete choice experiment was conducted to discover the relative importance of five characteristics of developing countries considered by people when choosing countries to donate money to. The experiment was administered via an online survey involving almost 700 university student participants (potential donors). The most important recipient country characteristic for participants on average is hunger and malnutrition, followed by child mortality, quality of infrastructure, income per capita, and, least importantly, ties to the donor’s home country. A cluster analysis of participants’ individual ‘part worth utilities’ representing the relative importance of the country characteristics reveals they are not strongly correlated with participants’ demographic characteristics.     

Tax Collection in Developing Countries – New Evidence on Semi-Autonomous Revenue Agencies (SARAs)

Abstract

Over the last two decades, semi-autonomous revenue agencies (SARAs) have become a key element of public administration reform. They are supposed to improve revenue mobilisation and stabilise state–taxpayer relations. But do SARAs really outperform conventional tax administrations? This article argues that they do. Presenting the results of a panel analysis of local tax collection in Peru between 1998 and 2011, it shows that municipalities with SARAs collect more revenue than those with conventional tax administrations. The results also indicate that local revenue is more stable in municipalities with SARAs, which is good for budget policy and planning.     

Is Communism to Blame for Political Disenchantment in Post-Communist Countries? Cohort Analysis of Adults' Political Attitudes

In this article, we apply a new, original technique of cohort analysis to test empirically whether political disenchantment in the post-communist countries of Central and Eastern Europe can be linked to the previous political culture. On the basis of International Social Survey Programme 1996 and 2006 data we find a surprisingly similar and unique cohort effect in all analysed post-communist countries, reflecting persistent generational differences in perceived political competence (interest and understanding of political processes). However, the communist legacy does not seem to be important for explaining low self-efficacy or distrust in political authorities and their responsiveness to citizens' demands.     

Between Slow and Comprehensive Reformers: Comparing Government’s Funding Policies of Universities in Three European Countries

This article analyzes implications of political–administrative systems for public reforms in funding of higher education. A national comparison of government funding policies of universities in France, Norway, and England since the 1980s serves as the basis for analysis. The author challenges the common classification of political–administrative regimes where frequently early and comprehensive reformers become the benchmark of what characterizes a reform. The author shows how specific path-dependent mechanisms can be added to explain processes of change in countries associated with opportunities to prevent change (France), but also for countries that have been linked to comprehensive reform (England) as well as incremental reform (Norway).     

Lustration,Transitional Justice,and Social Trust in Post-Communist Countries. Repairing or Wresting the Ties that Bind?

Interpersonal trust in post-communist societies is particularly low, and is often cited as an impediment to democratic consolidation. One way in which countries in Central and Eastern Europe and the former Soviet Union have tried to build trust is through transitional justice measures, particularly lustration or vetting policies. There is a direct relationship postulated between lustration, transitional justice, and social trust building. This paper tests this assumption by examining the impact of both targeted lustration and broader transitional justice programmes on social trust. The study finds there is a divergent impact of lustration on trust, both building particularised trust in social institutions and undermining generalised interpersonal trust.     

Globalisation and Developing Countries – a Shrinking Tax Base?

This paper evaluates the impact of globalisation on tax bases of countries at varying stages of development. We see globalisation as a process that induces countries to embrace greater trade and financial integration. This in turn should shift their tax revenue from ‘easy to collect’ taxes (tariffs and seigniorage) towards ‘hard to collect’ taxes (value added and income taxes). We find that trade and financial openness have a positive association with the ‘hard to collect’ taxes, and a negative association with the easy to collect taxes.     

Retrenched,but Still Desired? Perceptions Regarding the Social Legitimacy of the Welfare State in Russia Compared with EU Countries

Abstract

This article explores how the retrenchment of the Russian welfare state has affected Russians’ attitudes towards it. Using European Social Survey data, we find that the retrenchment has not eroded Russians’ strong preference for a comprehensive system, despite their dissatisfaction with its outcomes. Further, we find that in Russia, some of the individual socioeconomic characteristics have a different effect on people's attitudes to social welfare compared to equivalent groups in EU countries. Overall, as in the EU, attitudes are multidimensional: a positive stance towards some aspects of the welfare state coexists with a critical approach towards others.     

How Vulnerable are Arab Countries to Global Food Price Shocks?

Abstract

We estimate pass-through effects of international food price movements into domestic food prices for 18 countries in the Middle East and North Africa, using threshold regressions. International price movements transmit to various degrees into domestic prices. Transmission is mostly asymmetric, pushing domestic price levels up as increases in international food prices are typically passed through, but declines are rarely transmitted. This situation is indicative of policy and market distortions, notably the presence of food subsidies in the context of fiscal constraints. Hence, both international prices and their volatility matter for domestic inflation, yet domestic factors also play a role.     

Are Tax Havens Good Neighbours? FDI Spillovers and Developing Countries

Abstract

This paper investigates the impact of tax havens on non-tax haven countries in terms of foreign direct investment (FDI). We analyze the importance of agglomeration effects by including FDI inflow levels in tax havens and capture geographic spillovers by measuring proximity to the nearest tax haven. Our analysis yields several interesting findings. First, using panel data for 142 countries, we find evidence of positive spillovers from tax havens to nearby developing countries, but not to nearby developed countries. Second, restricting our panel to developing countries, we find the positive effect of tax haven FDI on developing countries to be robust. Third, we find that geographic distance matters for financial flows: developing countries which are the closest to a nearby tax haven benefit the most in terms of FDI inflows. This result is robust to accounting for spatial interdependence of FDI.     

Political economy,poverty, and polycentrism in the Global Environment Facility’s Least Developed Countries Fund (LDCF) for Climate Change Adaptation

Climate change adaptation refers to altering infrastructure, institutions or ecosystems to respond to the impacts of climate change. Least developed countries often lack the requisite capacity to implement adaptation projects. The Global Environment Facility’s Least Developed Countries Fund (LDCF) is a scheme where industrialised countries have disbursed $934.5 million in voluntary contributions to support 213 adaptation projects across 51 least developed countries. But how effective are its efforts—and what sort of challenges have arisen as it implements projects? To provide some answers, this article documents the presence of four “political economy” attributes of adaptation projects—processes we have termed enclosure, exclusion, encroachment and entrenchment—cutting across economic, political, ecological and social dimensions. Based on extensive field research, we find the four processes at work simultaneously in our case studies of five LDCF projects being implemented in Bangladesh, Bhutan, Cambodia, the Maldives and Vanuatu. The article concludes with a discussion of the broader implications of the political economy of adaptation for analysts, program managers and climate researchers at large. In sum, the politics of adaptation must be taken into account so that projects can maximise their efficacy and avoid marginalising those most vulnerable to the impacts of climate change.     

What Factors Determine the Allocation of Aid by Arab Countries and Multilateral Agencies?

This article provides a statistical analysis of the determinants of Arab aid allocation using Heckman's two-step estimator. It is found that poorer, Arab, Islamic and Sub-Saharan African countries are more likely to receive some positive amount of Arab aid (gate-keeping stage). The same is true for countries not maintaining diplomatic relations with Israel as well as those with voting patterns in the United Nations General Assembly similar to Saudi Arabia. Arab and more populous countries also receive a higher share of the total aid allocated (level stage). The same is true for Islamic countries in the case of bilateral aid and countries with voting similarity in the case of multilateral aid. Donor interest, in particular Arab solidarity, plays a clear role at both stages, whereas recipient need as measured by a country's level of income only affects the gate-keeping stage, not the level stage.