VoxDev Development Economics

In this insightful discussion, Karen Macours, a Professor at the Paris School of Economics and co-chair of J-PAL's Health Sector, dives into the global sanitation crisis. She highlights the urgent need to end open defecation and the health risks tied to inadequate sanitation. Karen explores the effectiveness of different sanitation policies, emphasizing community-led initiatives and the surprising benefits of subsidies over loans. She also tackles the complexities of measuring health improvements linked to better sanitation, calling for innovative strategies to ensure lasting change.

Achyuta Adhvaryu, a professor at UC San Diego, focuses on improving the lives of low-income workers, particularly women. He discusses the critical issues of harsh working conditions in developing countries and reviews the effectiveness of workplace interventions. Adhvaryu emphasizes the link between improved worker well-being and enhanced productivity for businesses, the role of unions, and the impact of training in emotional regulation. He advocates for further research to foster collaboration between policymakers and firms to prioritize employee welfare.

A large proportion of economic activity takes place in the informal sector in every country, particularly in LMICs. Informality, and the lack of rights and protection that goes with it, affects the families who live in slums, the people who take off-the-books jobs, and the firms that choose to skirt regulations. It also affects the governments who want to increase the size of the formal sector – and the revenue they can collect from it. Gabriel Ulyssea of UCL and Mariaflavia Harari of the University of Pennsylvania are two of the editors of new VoxDevLit that examines what we know about the size of the informal sector and how it operates. They talk to Tim Phillips about the grey areas between formal and informal, and the limitations of policies that try to increase the size of the formal economy. Read the VoxDevLit here: https://voxdev.org/voxdevlit/informality

In 1981, 44% of the world’s population were living in extreme poverty. By 2019, that number had fallen to 9%. This seems like a good news story, but how did it happen? Tom Vogl of UC San Diego is one of the authors of a paper called simply, “How Poverty Fell”. In it, they use surveys to track the progress out of poverty of individuals and generations, to discover whether this progress has been driven by individuals and families becoming less poor over their lives or by successive generations who are less likely to be born into poverty. Has the progress been driven by women in the workplace, by government support, or by the move out of agriculture? And, significantly, do those who move out of poverty stay in that position or, is it, as Tom tells Tim Phillips, “Like climbing a slippery slope”? Read the full show notes here: https://voxdev.org/topic/methods-measurement/how-has-global-poverty-fallen Read the paper: https://econweb.ucsd.edu/~pniehaus/papers/how_poverty_fell.pdf

In the latest episode of the collaboration between Yale’s Economic Growth Center and VoxDev, host Catherine Cheney is asking one of the most complex questions in global development: how can the clean energy transition move forward quickly and equitably, particularly for low- and middle-income countries still grappling with poverty? There is a balance between emissions reductions and economic growth. While wealthy nations historically contributed the most to climate change, LMICs are now under pressure to take costly action to avoid it. Catherine is joined by Max Bearak of the New York Times, Jessica Seddon of Yale Jackson School and the Dietz Family Initiative on Environment and Global Affairs, and Anant Sudarshan of the University of Warwick and the Energy Policy Institute at the University of Chicago. Read the full show notes here: https://voxdev.org/topic/energy-environment/climate-capital-and-conscience-who-will-pay-global-energy-transition

Shameran Abed, Executive Director of BRAC International, shares insights on BRAC’s graduation approach, designed to lift ultra-poor households out of poverty. He explores how the model, first pioneered in Bangladesh, uniquely tailors support through community involvement. The conversation delves into the transformative power of comprehensive aid, sustainable livelihood strategies, and the importance of continuous impact evaluation. Abed emphasizes scaling these innovative programs to meet global needs, especially for marginalized groups.

Ludvig Wier, author of a pivotal International Growth Centre report and a key figure in the Danish Ministry of Foreign Affairs, delves into the complex world of corporate profit shifting. He reveals how multinational corporations exploit low-tax jurisdictions, severely impacting tax revenues in developing countries. Wier discusses AI's potential to aid overwhelmed tax offices and highlights global initiatives aimed at diminishing the allure of tax havens. The conversation uncovers the vast disparities in tax compliance and the urgent need for equitable tax solutions.

Vocational training is often seen as a silver bullet for unemployment and poverty, but does the evidence support that view? Why do so many training programs fail to lead to real job opportunities, and are we asking too much of these programs – or maybe the wrong questions entirely? In the latest episode of the collaboration between Yale’s Economic Growth Center and VoxDev, host Catherine Cheney is joined by Oriana Bandiera, professor of Economics at the London School of Economics, Stefano Caria, professor of economics at the University of Warwick, and Munshi Sulaiman, Director of Research at the BRAC Institute of Governance and Development and a professor in the Master of Development Studies program at BRAC University, to ask what it takes to make job skills programs work.

A fundamental part of women’s economic empowerment is helping women who want to work outside the home to find and keep a job. A major part of that decision is ensuring that they can travel to work without fear of stigma, harassment or violence on public transport. In Pakistan, a study set out to discover whether an offer of safe commuter transport would tempt women who are currently not looking for a job. Kate Vyborny of the World Bank spoke to Tim Phillips from Lahore, where the study took place, about the challenges women face in commuting to work and about how safe transport can change career opportunities for millions of women. Photo credit: ADB Read the full show notes here: https://voxdev.org/topic/infrastructure/how-safe-transport-could-unlock-womens-labour-force-participation-pakistan

Pushpam Kumar, an expert from the UN Environment Programme, discusses how rising debt in low-income countries threatens crucial river basins like the Congo and Amazon. He highlights the alarming debt-to-natural capital ratio and its implications for livelihoods and biodiversity. The conversation emphasizes the urgent need for integrated economic-environmental policies and rethinking measurements of economic health beyond GDP. Kumar also explores debt-for-nature swaps as a potential solution for alleviating debt while fostering conservation.