VoxDev Development Economics

In this engaging discussion, economists Robin Burgess from LSE and Rohini Pande from Yale dive into the concept of a unified global carbon market. They explore how integrating compliance and voluntary markets can enhance credibility and efficiency in carbon trading. The duo highlights successful models like the EU ETS and discusses the need for standardized regulations to build trust. They also examine how this unified system can shift funds to low-income countries, accelerate clean energy adoption, and unlock significant investments for sustainable growth.

Many papers in economics have shown the scale of the damage that slavery did to Africa, but can we also make the argument that the slave trade helped cause Europe’s economic development? Ellora Derenoncourt of Princeton is the author of a recently published paper which uses new methods and new data to investigate this question.  She talks to Tim Phillips about what historical records can and cannot tell us about that link, and what this data tells us about the growth of European port cities.

Seema Jayachandran, a Princeton economist focused on development economics and gender, teams up with Alessandra Voena from Stanford, who specializes in family economics. They delve into the complexities of women’s power at home, discussing how economic growth alone isn’t enough to enhance women's influence without legal reforms. Insights include the challenges of measuring household power, the impact of cash transfers on women, and effective strategies like boosting earnings and rights. They also explore the risks of backlash when empowering women and highlight the need for better data on household dynamics.

Manisha Shah, an economist and professor at UC Berkeley specializing in intimate partner violence (IPV), discusses the complexities of measuring and preventing IPV. She reveals that about one in three women experience IPV globally, with heightened prevalence in certain regions. Shah highlights the economic costs of IPV, estimated at 1-2% of GDP, and analyzes how poverty and social norms contribute to its persistence. She also emphasizes the importance of engaging men in prevention strategies and the need for cost-effective interventions like counseling.

The modern state, and the way in which is governs, is clearly very important. It provides social programs, education, disaster relief or, on the other side, it can cause violence and repression. We tend to assume that there is one model of a successful state, and the emergence of government has followed a single path with, as Francis Fukuyama wrote, “Getting to Denmark” as its end point. But is that the story that the historical record tells? And are successful states today, even in high-income countries, all governed in a way that matches our assumptions? Leander Heldring of Northwestern University is the author of a chapter on the forthcoming Handbook of Political Economy that examines the historical data and the types of government that have succeeded and failed. He tells Tim Phillips what he has discovered about what types of bureaucracy have succeeded in history, what forms of government that citizens in different times and places have chosen, and whether there is one true evolutionary path to a successful state.

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.