Programmed to Fail? Development Projects and the Politics of Participation

The Eastern India Rainfed Farming Project is in many respects a model development project. A joint venture of the governments of India and the UK, the EIRFP has been successful in improving farm-based livelihoods in Jharkhand, Orissa and West Bengal. But the Project might yet be considered a failure. It has not persuaded the poorest villagers in Jharkhand (our study area) to join or manage the self-help groups that are called for by the Project's Logical Framework. We show why this has been the case, and why such an outcome was entirely predictable. Development projects cannot be expected to change local systems of politics or stratification. But this does not mean that the EIRFP is a failure. It means that a development project will be destined to 'fail' when it is judged against unrealistic assumptions about the possibilities and merits of 'participation'.     

Does Education Improve Health? Evidence from Indonesia

I examine the effects of education on health in Indonesia using an exogenous variation in education induced by an extension of Indonesia’s school term length in 1978–1979, a natural experiment that fits a regression discontinuity design. I find the longer school year increases educational attainment and wages, but I do not find evidence that education improves health. I explore some mechanisms through which education may affect health, but education does not seem to promote healthy lifestyles, increase the use of modern healthcare services, or improve access to health insurance; if anything, education improves only cognitive capacity.     

Does the Heterogeneity of Project Implementers Affect the Programme Participation of Beneficiaries?: Evidence from Rural Cambodia

This study employs the dataset collected for the assessment of a post-harvest technology project in rural Cambodia and focuses on the heterogeneous preferences of project implementers, frequently overlooked in the literature on programme evaluation studies. We focus on the ‘implementer effect’ on the programme participation of the treated farmers. We demonstrate that the heterogeneous programme participation of ordinary farmers could be induced due to heterogeneity in the characteristics of the project staff. In particular, we indicate that the baseline altruism of the project staff, measured by the dictator game, consistently increases the participation rate and the number of participations in the training sessions of beneficiaries. This type of heterogeneity in project staffs’ preferences across treatment sites could be a source of treatment heterogeneity for programmes conducted at a certain cluster level. While few studies have focused on the heterogeneity of programme implementers, our empirical results indicate that the preference of implementers could be a source of treatment heterogeneity and imply the importance of implementation of an actual project.     

Do Risky Microfinance Borrowers Really Invest in Risky Projects? Experimental Evidence from Bolivia

Abstract

This paper reports the results of an experiment testing a fundamental assumption in Stiglitz and Weiss’ (1981) model of credit rationing: that defaulting borrowers are associated with investment in risky projects. Through an artefactual field experiment with 200 Bolivian microfinance borrowers, we observe that subjects from real-world delinquent borrowing groups do not prefer risky projects to safer ones significantly more than subjects from repaying groups. Instead, our results support more recent behavioural theories of credit market failure. Implications are that defaulting microfinance borrowers may be those who take too little investment risk rather than those who take too much.     

Does Access to Formal Finance Matter for Welfare and Inequality? Micro Level Evidence from Nigeria

Using a treatment effects model, decomposition techniques and representative household data from Nigeria, we study the welfare and inequality implications of access to formal finance. While improving household welfare, formal access to finance increases inter-household inequalities, despite ameliorating the inequality enhancing effect of urban residence and enhancing the inequality ameliorating effect of greater educational attainment. The positive effect of access to formal finance on inequality is smaller than the effect of unobserved household characteristics, indicating that welfare and equality enhancing strategies should follow a holistic approach as opposed to one focusing on one isolated policy variable at a time.     

Can Information about Local Government Performance Induce Civic Participation? Evidence from the Philippines

The question of whether people are motivated to engage in civic activities once informed of their local government's performance is relevant to many developing countries that adopted decentralisation. Applying propensity score matching technique on a unique household-level dataset from the Philippines, it is found that the knowledge of an index of local government performance has positive and statistically significant effects on the likelihood of membership in local organisations and participation in local projects. Thus, the results support policies for greater transparency in local governance to deepen citizenship.     

Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India

To appreciate overall impacts of fragmentation, underlying channels, and potential heterogeneity by holding size, we distinguish average fragment size and mean inter-fragment distance as two aspects of this phenomenon. Estimating a cost function with associated input demand equations on a large nationally representative Indian survey, robust to endogeneity, suggests that fragmentation’s main impact is to reduce mean plot size below the threshold for mechanisation. Higher inter-fragment distances increase costs for larger holdings, but by a much smaller magnitude. Implications as to when programmes to consolidate holdings may make sense and ways to ensure their sustainability are discussed.     

Does democratic local governance facilitate local economic development? Evidence from Bangladesh

ABSTRACT

This paper tests whether the improvement of democratic local governance (DLG) positively impacts local economic development (LED). Based on a nationally representative citizen perception survey of 3,024 households across 56 Union Parishads (UPs) in Bangladesh, the results suggest that, although the UP governance program (UPGP) has improved the administrative governance of UPs, functional governance involving citizens remains weak. Thus, due to partial improvement of DLG, UPGP does not appear to have a significant impact on the overall local economic development and service delivery of UPs. A significant gap can be seen to exist between the claims of UPs and the perceptions of citizens around UPs’ governance performance, which may result from the poor awareness building structures of the UPGP. However, our results suggest that providing training to UP officials can partially offset the shortfalls of DLG in its pursuit of LED.     

Does transformational leadership stimulate user orientation? Evidence from a field experiment

While doing good for specific citizens and users is often considered a powerful motivator among public service employees, little research has rigorously evaluated how public managers can promote individualized prosocial motivation. We follow recent studies on the behavioural implications of ‘user orientation’ to explore how public managers can use a specific leadership strategy—transformational leadership—to reinforce employees' individualized prosocial motivation. Combining a field experiment with 80 childcare centre managers and survey reports from their 590 preschool teachers, we assess the effect of a transformational leadership training programme on user orientation. The results show a positive effect on user orientation three months after the training programme but no persistent effect 15 months after the intervention. This implies that, at least in the short term, public managers can use transformational leadership behaviours to stimulate user orientation.     

Does Oil Hinder Social Spending? Evidence from Dictatorships, 1972–2008

This paper examines the effects of natural resource abundance on social spending in dictatorships. Natural resources, particularly oil, provide authoritarian leaders with economic rents without widescale labor force participation. I argue that dependence on natural resource production thus reduces dictators’ incentive to invest in human capital, which is reflected in lower levels of social spending. Using a panel dataset of authoritarian regimes between 1972 and 2008, I find that oil abundance leads to significantly lower levels of social spending by authoritarian governments. The negative effects are especially prominent concerning expenditures for public education and health: when an authoritarian country earns ten more dollars per capita from oil production, per capita spending on education and health decreases by approximately 1%. Extended analysis shows that the negative impact of oil on social spending is peculiar to authoritarian regimes; no impact of oil wealth on social expenditures is found among democracies.     

Does Health Insurance Reduce Child Labour and Education Gaps? Evidence from Rwanda

A common practice of poor households to informally deal with risk is to allocate children’s time away from school towards income-generating activities or household production. Focussing on Rwanda, this study investigates whether the provision of formal health insurance helps to prevent this undesired risk coping strategy. We find that children of households enrolled in health insurance work significantly less compared to those of not enrolled families, and also have better educational achievements. The results suggest that policy interventions which reduce household risk exposure may have additional benefits in terms of lower child labour supply and higher schooling levels.     

How Does Globalisation Affect Regional Inequality within A Developing Country? Evidence from China

Developing countries are increasingly concerned about effects of globalisation on regional inequality. This paper develops an empirical method for decomposing the contributions of two major driving forces of globalisation, foreign trade and foreign direct investment (FDI), on regional inequality and applies it to China. Even after controlling for many other factors, globalisation is still found to be an important factor contributing to the widening regional inequality. The paper ends by investigating the role of factor market segmentations in aggravating the distributional effect of changing regional comparative advantages in the process of globalisation.     

Does the ICDS Improve Children’s Diets? Some Evidence from Rural Bihar

Although there are several studies documenting the impact of the Integrated Child Development Scheme (ICDS) – the largest preschool intervention – in India, few have documented to what extent it improves the quantity and quality of food consumed by young children. This paper attempts to provide causal estimates of the impact of the ICDS on calories, protein, iron, and Vitamin A intakes of children. Using matching techniques to define an appropriate counterfactual, and a primary survey in four villages in rural Bihar, our results suggest that: (a) for older children three to six years who benefit from cooked meals, the ICDS did result in higher intakes of calories, protein, and iron, and no substantive evidence that as a consequence there was substitution away from food at home. However, there was no impact on vitamin A intake; (b) for younger children whose mothers are given take-home rations, there is no evidence the ICDS improved intakes of calories or any other nutrients. Thus, even though the monetary value of the transfer was the same across both age groups, there is evidence to suggest the mode of transfer does seem to matter to ICDS effectiveness, consistent with other literature.     

How Responsive are Chinese Exports to Exchange Rate Changes? Evidence from Firm-level Data

This article examines the impact of exchange rate changes on Chinese firms’ decisions on export market entry and export share. Using a large dataset for Chinese firms in 2000–2006, we find that changes in exchange rate levels play a significant role on both export extensive and intensive margins of Chinese firms. Compared to studies using macro data, our firm-level analysis allows us to control for firm and industry heterogeneity. Firm size and location matter. We do not find a difference between foreign and domestic firms in responding to exchange rate changes. Industry heterogeneity is also found to be important.     

Does Observance of Religious Holidays Affect Agricultural Productivity and Household Welfare? Evidence from Rural Ethiopia

This study examines whether traditional customs affect household's welfare by taking the case of the work prohibition related with religion in rural Ethiopia. Although the anecdotal evidence suggests that work prohibition by the Ethiopian Orthodox Church, to observe the religious holidays, is one of the reasons for the high poverty incidence in Ethiopia, the estimation results do not show that there is a significant effect of the number of religious holidays observed on agricultural productivity and household welfare. Observance of religious holidays affects crop choice and income source.     

Does Livestock Ownership Affect Animal Source Foods Consumption and Child Nutritional Status? Evidence from Rural Uganda

Abstract

In many developing countries consumption of animal source foods (ASF) among the poor is still at a level where increasing its share in total caloric intake may have many positive nutritional benefits. This paper explores whether ownership of different livestock species increases consumption of ASF and helps improving child nutritional status, finding some evidence that both food consumption patterns and nutritional outcomes may be affected by livestock ownership in rural Uganda. Our results are suggestive that promoting (small) livestock ownership has the potential for affecting human nutrition in rural Uganda, but further research is needed to more precisely estimate the direction and size of these effects.     

Does Market Access Mitigate the Impact of Seasonality on Child Growth? Panel Data Evidence from Northern Ethiopia

Seasonality in agricultural production continues to shape intra-annual food availability in low-income countries. Using high-frequency panel data from northern Ethiopia, this study attempts to quantify seasonal fluctuations in children’s weights. Consistent with earlier studies, we document considerable seasonality in children’s age and height adjusted weights. While children located closer to local food markets are better nourished compared to their counterparts residing farther away, their weights are also subject to considerable seasonality. Further analysis shows that children located closer to food markets consume more diverse diets than those located farther away but the content of the diet varies across seasons. This leads us to conclude that households located near these food markets are not able to insulate their children from seasonal weight fluctuations. We discuss some policy options with potential to address this threat to child wellbeing.     

Does Military Intervention Reduce Violence? Evidence from Federally Administered Tribal Area of Pakistan (2001–2011)

After the incident of 11 September 2001, military intervention in the Federally Administered Tribal Area (FATA) of Pakistan provides an exogenous shock to different types of violence. To evaluate the deterrence effect of the intervention on monthly tribal violence, I apply a difference-in-differences identification strategy which exploits within-districts variation in the outcome variable (violence) over time. The regression results show that military presence significantly deters tribal violence, that is, it decreases violent incidents by one to five per month. The deterrence effect varies within the given range due to different number of control districts and periods of analysis. These findings are statistically consistent with robustness and falsification tests.     

Do Social Protection Transfers Reduce Poverty and Vulnerability to Poverty in Pakistan? Household Level Evidence from Punjab

Empirical studies in different developing countries have investigated the impact of social protection (SP) on ex-post poverty; however, few studies analysed the impact of SP on ex-ante vulnerability to poverty (VtP). This paper contributes to the literature by evaluating the impact of SP on vulnerability to poverty (VtP) and poverty rates among households in the Punjab province of Pakistan. A hierarchical modelling approach is used to analyse the Multiple Indicator Cluster Survey (MICS-2011) data of about 90,000 households. Matching methods and simultaneous endogenous switching regression are used to control for potential selection bias and estimate average treatment effects. Our results show that SP has a positive impact in reducing household poverty and VtP, but this impact is mainly driven by a short-term flood relief cash transfer programme, pension of government employees and households’ regular purchase from utility store network.