VoxDev Development Economics

In this discussion, Penny Goldberg, an economist at Yale known for her insights on trade's role in growth miracles, joins Michele Ruta from the IMF, who focuses on the implications of trade policies for developing countries. They explore why past trade-driven growth may not be replicable, diving into key factors like technology transfer, market access, and the evolution of global value chains. They also assess the impact of geopolitical shifts, rising industrial policies, and climate risks on future development prospects.

David McKenzie, a World Bank economist and senior editor of the VoxDevLit, dives into the intricacies of training entrepreneurs in developing countries. He discusses the diverse needs of different types of businesses, from subsistence microenterprises to high-growth startups. McKenzie reveals that while many skills can be taught, not all training has lasting effects. He emphasizes the importance of realistic outcomes and highlights that innovative delivery methods, including AI, are emerging in entrepreneur training. Finally, he considers the significant role of women in entrepreneurship.

What is the relationship between religion and economic development? Does economic development mean fewer people become religious, or more? What causes people to believe, and does organised religion adapt as societies change, and competition from other religions increases? Sara Lowes of UC San Diego, Eduardo Montero on the University of Chicago, and Benjamin Marx of Boston University are the authors of a new review of religion in emerging and developing regions. They talk to Tim Phillips about how our assumptions about what religion is, and why people believe, are not always accurate – and how an understanding of religiosity can help policymakers understand our motivations and create social policy that is effective.

“ Africa must become a full participant in global knowledge production, not just a passive recipient of solutions from elsewhere.” The journey of Leonard Wantchekon from teenage revolutionary in Benin to professor of economics at Princeton also led him to found the African School of Economics.  In this week's episode, Leonard talks to Tim Phillips about what he learned from imprisonment and torture, how to improve African democracy, the legacy of slavery on trust, and how African economists can contribute to development in the region. 

Devesh Kapur, a professor at Johns Hopkins and co-author of *A Sixth of Humanity*, and Arvind Subramanian, former Chief Economic Advisor to India and senior fellow at the Peterson Institute, dive into India's unique development journey. They explore how India's democratic struggles shaped policy, the impact of state-led planning, and the dual narratives of rapid growth and rising inequality. Their insights reveal the significance of regional analysis in development and caution against moves away from India’s secular foundations, emphasizing the lessons for global growth.

Policymakers and politicians like to talk about creating infrastructure like roads, schools and transport systems: how it grows the economy, provides jobs, and strengthens domestic firms. But that infrastructure needs raw materials, people and constructors to create it. Martina Kirchberger of Trinity College Dublin is an expert on how stuff gets built in developing countries. Are the materials they need expensive? Will a construction boom also create jobs? Are there local firms who can do the work and, if not, who makes projects happen in the global construction sector? She talks to Tim Phillips about investment, partnership, and the surprising cost of cement. 

Everywhere, women’s labour force participation is lower than men’s. There are many reasons to close this gap, but there are just as many reasons why it’s hard to do it. Research is discovering new and important insights into how financial constraints, social norms, the backlash from man and the problems of travelling safely reduce the opportunities to work from home. But which policies can change this? Release 2 of the VoxDev Lit on Female Labour Force Participation sets out this research, and Rachel Heath of the University of Washington tells Tim Phillips what it tells us about how work helps women, and policy helps women to find work. 

When children are victims of bullying or social exclusion at school, it can be devastating for every part of their lives. This is a global problem, but with a global solution: if we can teach kids about empathy, self-control, or the effects of their violent behaviour, it can reduce bullying. How well do these policies work, and can they be scaled up successfully?  JPAL is about to publish a policy insight on this topic, bringing together the research and summarising what we know. Sule Alan of Cornell University tells Tim Phillips about how we can spot bullying and exclusion in the classroom, and the interventions that work.

Adrien Bilal, an Economist at Stanford University specializing in the macroeconomic impacts of climate change, joins the discussion. He highlights the challenges of modeling economic activity's influence on the environment. Topics include the macro costs of carbon pricing, the risks of carbon leakage, and the need for better adaptation research. Bilal also emphasizes the importance of granular data and addressing non-market impacts, such as mortality and instability, in the face of rising climate extremes and shifting migration patterns.

In this enlightening discussion, Natalie Bau, a UCLA professor specializing in the economics of education, and Sara Lowes, a UC San Diego professor focused on political economy, explore the critical relationship between culture and economic development. They reveal how cultural norms can significantly shape policy effectiveness and outcomes. By analyzing case studies from countries like Indonesia and Ghana, they highlight the potential pitfalls of ignoring local beliefs. They also stress the importance of interdisciplinary collaboration to bridge cultural insights with economic strategies.