THE OPERATIONAL DIMENSIONS OF RESULTS‐BASED FINANCING

As part of a growing focus on the effectiveness of development assistance from the World Bank and other agencies, new efforts are being made to relate development finance more closely to outcomes achieved rather than to inputs used, through the results‐based financing approach. We provide a framework for analyzing the operational dimensions of results‐based financing, including the conditions that suit this approach, and how best to define, measure, and report results. We review some of the early World Bank experience with this approach. Noting that this approach is as yet not fully tested, we suggest evaluative issues for future research while highlighting strengths and challenges in the range of techniques adopted so far. Copyright © 2014 John Wiley & Sons, Ltd.     

Economic Explanations for Opposition to Immigration: Distinguishing between Prevalence and Conditional Impact

What explains variation in individuals’ opposition to immigration? While scholars have consistently shown cultural concerns to be strong predictors of opposition, findings regarding the labor‐market competition hypothesis are highly contested. To help understand these divergent results, we distinguish between the prevalence and conditional impact of determinants of immigration attitudes. Leveraging a targeted sampling strategy of high‐technology counties, we conduct a study of Americans’ attitudes toward H‐1B visas. The plurality of these visas are occupied by Indian immigrants, who are skilled but ethnically distinct, enabling us to measure a specific skill set (high technology) that is threatened by a particular type of immigrant (H‐1B visa holders). Unlike recent aggregate studies, our targeted approach reveals that the conditional impact of the relationship in the high‐technology sector between economic threat and immigration attitudes is sizable. However, labor‐market competition is not a prevalent source of threat and therefore is generally not detected in aggregate analyses.     

Down and Out: Laboring under Global Capitalism

The text and photographs in this photo essay are excerpted with permission from Down and Out: Labouring under Global Capitalism (Oxford and New York: Oxford University Press, 2000), by Jan Breman and Arvind N. Das (text) and Ravi Agarwal (photographs).     

Do Term Limits Restrain State Fiscal Policy? Approaches for Causal Inference in Assessing the Effects of Legislative Institutions

Scholars of state politics are often interested in the causal effects of legislative institutions on policy outcomes. For example, during the 1990s a number of states adopted term limits for state legislators. Advocates of term limits argued that this institutional reform would alter state policy in a number of ways, including limiting state expenditures. We highlight a number of research design issues that complicate attempts to estimate the effect of institutions on state outcomes by addressing the question of term limits and spending. In particular, we focus on (1) treatment effect heterogeneity and (2) the suitability of nonterm‐limit states as good counterfactuals for term‐limit states. We compare two different identification strategies to deal with these issues: differences‐in‐differences (DID) estimation and conditioning on prior outcomes with an emphasis on synthetic case control. Using more rigorous methods of causal inference, we find little evidence that term limits affect state spending. Our analysis and results are informative for researchers seeking to assess the causal effects of state‐level institutions.     

Minimum Wage Competition between Local Governments in China

The theory of fiscal and regulatory competition between jurisdictions is more advanced than its empirical testing. This is particularly true of labour regulation in general, and minimum wage regulation in particular, and especially so for developing countries. This paper utilises the spatial lag methodology to study city-level strategic interactions in setting and enforcing minimum wage standards during 2004–2012 in China. We manually collect a panel data set of city-level minimum wage standards from China’s government websites. This analysis finds strong evidence of spatial interdependence in minimum wage standards and enforcement among main cities in China. If other cities decrease minimum wage standards by 1 RMB, the host city will decrease its standard by about 0.7–3.2 RMB. If the violation rate in other cities increases by 1 per cent, the host city will respond by an increase of roughly 0.4–1.0 percentage points. The results are robust to using three estimation methods, Maximum Likelihood, IV/GMM, and a dynamic panel data model. Our findings of strategic interactions suggest the need for policy coordination in labour regulation in China.     

The dynamics of welfare gains and losses: An African case study

This article uses panel survey data for Côte d'Ivoire to investigate the determinants of welfare gains and losses of households over time. A first‐difference model is estimated which takes account of initial conditions. For urban areas, it was found that human capital is not only a key explanatory factor for levels of welfare, but also the most important endowment to explain welfare changes over time. In rural areas, physical capital, especially land and farm equipment, mattered most. Household size and composition and socioeconomic characteristics of the household also affected welfare changes. Policy implications are discussed.     

World Turned Upside Down? Rise of the global South and the contemporary global financial turbulence

By focusing on the consequences of the dismantling of regulations over the financial sector, the current debate on the causes of the global economic meltdown obscures the cyclical occurrence of speculation in capitalism, as the accumulation of more capital than can be profitably invested in the production and sale of commodities results in financial expansion. Historically financial expansion has signalled the end of one world-scale system of accumulation and the transition to a new system as capital flows from declining powers to rising powers. However, the contemporary period is distinguished by capital flows from rising powers to declining ones. An analysis of the current crisis suggests a reversal of this anomaly as it reduces the ability of China and other East Asian states to support the US dollar. At the same time ‘emerging market economies’ have begun to forge new relationships that could provide the framework for a new system of partnership between states and enterprises to reconstruct a new cycle of accumulation if two hurdles are overcome: 1) absorption of labour that is being displaced because of the high organic composition of capital and 2) dampening of the growing inequalities in income which has not only restricted the growth of markets but is also fuelling increasing social conflict.     

Adventure in Malaya: Henri Fauconnier and French Orientalism

For the most part of the nineteenth century, the relation between romance and imperialism was symbiotic: imperial expansion provided new sites and material for literary romances. Nevertheless, as the rationalizing processes that eradicated adventure at home began reaching remote corners of the world, imperialism suddenly became the enemy of romance. This study attempts to reassess Henri Fauconnier's Malaisie (1930), a novel that was canonized at the time of its publication for its literary mission to re-evaluate colonial realities. To a certain extent Fauconnier's narrative does articulate a model of romance that exposed the absurdity and vanity of political engagement and the superiority of spiritual to imperial vocations. However, while Malaisie may have represented the Other space as testing ground for self-illumination and spiritual re-awakening my reading exposes the complexities and ambiguities that characterize literary geographies of adventure.