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Working Papers

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Economic Analysis and Policy

This paper examines the experience of a set of countries that performed relatively well in coping with the COVID-19 crisis. The goal is to garner insights and lessons that can help countries that may experience initial or second-round outbreaks of the pandemic in the future. The paper finds healthcare, social protection, and overall governance systems as the three main determinants of COVID-19 strategies and their success. Though unique country-specific factors played an important role in confronting the pandemic in some countries, their role was generally mediated through one or the other of the above three main determinants. The findings of the paper suggest that establishing universal…

Sustainable Development

How has the focus of the UN General Assembly changed over time and how well is the global agenda expressed in these documents? This paper presents a proof-of-concept classifier to examine the evolution of the global agenda expressed and observed in words of the UN General Assembly resolutions. Using natural language processing to identify four categories of resolutions — Sustainable Development, Justice and Law, Human Rights, and Peace and Security — the analysis of 3,765 UN GA resolutions from 2007 to 2019 reveals the changing areas of focus of the Member States and, as a result, of the UN Secretariat. Sustainable Development is slowly gaining importance in the language in UN…

Economic Analysis and Policy

The COVID-19 pandemic is entailing huge costs worldwide. To help developing countries formulate policy responses to minimize negative impacts of the COVID-19, possible size and duration of the shocks on most vulnerable countries, i.e., least developed countries (LDCs) and Small Island Developing States (SIDS), and their resilience to overcome the shocks need to be assessed. This paper quantitatively examines possible paths of LDCs and SIDS recovering from the impacts of the COVID-19 crisis, using an autoregressive model of income growth and a panel regression model of external demand for LDCs and SIDS. Evidence from the experience of the 2007-08 global financial crisis suggests that the…

Economic Analysis and Policy

This paper investigates the role of trade costs in exporter dynamics in Africa. In comparison to exporters from other regions, African exporting firms are fewer, smaller and relatively less diversified in terms of products and destinations. African countries also display the highest rates of entry, exit and turnover of exporting firms, exporting products and export destinations. This suggests that Africa’s exporting activity is volatile and subject to a lot of experimentation, with exporters having difficulties in maintaining trade relationships. The analysis also confirms that trade costs are a crucial factor in explaining exporter performance in Africa vis-à-vis other regions, but also…

Supreme audit institutions (SAIs) have started to audit the implementation of the Sustainable Development Goals (SDGs). While there is no one single audit model or approach to audit SDG implementation, audits should incorporate a few core methodological features related to the principles of the 2030 Agenda. Four methodological and practical challenges associated with conducting performance audits of SDG implementation, as they differ from traditional audits, are discussed in this paper: 1) problem definition, including the level of investigation in the SDG hierarchy of goals and targets and the audit scope; 2) conceptual challenges inherent in going from the level of individual entities…

As the 2030 Agenda for Sustainable Development enters its fifth year of implementation, it is opportune to ask how governance is understood and implemented around the world. In fact, one can go further to probe the extent to which governments are cognizant of the principles undergirding effective governance. This paper examines the ways in which governance has been operationalized by countries, major groups and other stakeholders since the first round of Voluntary National Reviews at the High-level Political Forum (HLPF) of 2016. It does this based on the qualitative overview of the Synthesis reports of Voluntary National Reviews (2016–2019), and the quantitative analysis of three SDG…

Economic Analysis and Policy

The potential of data for supporting development is bounded only by the amount and variety of data that can be collected and analyzed, which is to say it is almost infinite. However, if data’s vast benefits are disproportionately captured by few in the society, leaving no one behind – an overarching principle of the Sustainable Development Goals – would be difficult to attain, even when everyone benefits from the use of data. This paper discusses key data properties and dynamics in data economy that create the tendencies for monopolies to emerge, reinforcing unbalanced power between corporates and other actors and generating negative distributional implications. If mismanaged,…

This paper briefly takes stock of two decades of e-participation initiatives based on a limited review of the academic literature. The purpose of the paper is to complement the results of the e-government Survey 2020. As such, the emphasis is on aspects that the e-government survey (based on analysis of e-government portals and on quantitative indicators) does not capture directly. Among those are the challenges faced by e-participation initiatives and key areas of attention for governments. The paper maps the field of e-participation and related activities, as well as its relationships with other governance concepts. Areas of recent development in terms of e-participation applications…

Economic Analysis and Policy

This paper revisits the earlier assessments of the Palma Proposition and the ‘Palma Ratio’. The former is a proposition that currently changes in income or consumption inequality are (almost) exclusively due to changes in the share of the richest 10 per cent and poorest 40 per cent because the ‘middle’ group between the richest and poorest always capture approximately 50 per cent of gross national income (GNI). The latter is a measure of income or consumption concentration based on the above-mentioned proposition and calculated as the GNI capture of the richest 10 per cent divided by that of the poorest 40 per cent. In this paper we do the following: note the use already being made of…

Economic Analysis and Policy

China has departed from the East Asian model of development by letting inequality to rise to a high level, which is contributing to China’s current problems of macroeconomic imbalance, declining efficiency of capital, and rising social tensions. If inequality persists, China may get caught in the “inequality-trap,” which may then lead it to the “middle income trap (MIT).” Fortunately, China still has the levers to pull to reduce inequality and avoid MIT. Measures along both the “wage route” and the “redistributive route” can be adopted for this purpose. In addition, China may pursue the “cooperative route” to more equitable distribution.

Economic Analysis and Policy

We introduce two separate datasets (The Global Consumption Dataset (GCD) and The Global Income Dataset (GID)) containing an unprecedented portrait of consumption and income of persons over time, within and across countries, around the world. The benchmark version of the dataset presents estimates in PPP units of monthly real consumption and income for every decile of the population (a ‘consumption/income profile’) for 133 countries and more than half a century (1960-2012). We describe the construction of the datasets and demonstrate some possible uses by presenting preliminary results concerning the consumption distribution, poverty and inequality for the world and specific country…

Economic Analysis and Policy

Analyses of redistributive policies often focus on income flows to examine the nexus between redistribution and economic growth. With strengthening signs of growing economic inequality in many countries, an increasing number of economists investigated the existence and nature of a hypothetical trade-off between economic growth and equity. As signs of unsustainable development are strengthening more generally, this paper proposes to look at the broader nexus between redistribution, equity and sustainable development, emphasizing its social and environmental dimensions. It does so by first proposing an analytical framework defining the role of redistributive policies in shaping the private…