Revitalising the Policy for Global Development Per Molander Expert - - PowerPoint PPT Presentation

▶

Jan 22, 2024 113 likes •242 views

Revitalising the Policy for Global Development Per Molander Expert Group for Aid Studies Seminar, 19 th December 2016 Purposes of the study Survey of social-science literature on development: What do we know? Policy conclusions for a

SLIDE 1

Revitalising the Policy for Global Development

Per Molander Expert Group for Aid Studies Seminar, 19th December 2016

SLIDE 2

Purposes of the study

Survey of social-science literature on development:

What do we know?

Policy conclusions for a small, non-aligned country

like Sweden: What should be in focus for development cooperation?

SLIDE 3

Knowledge base: improving, but important weaknesses remain

Improvements

Data supply has improved
New methods in causal analysis

Weaknesses

Data quality
Poverty, illiteracy, poor health services are

underreported

Integrity of basic statistical services and audit

institutions

SLIDE 4

Main themes of the study

Growth
State-building
Inclusive development

SLIDE 5

Growth

Theories of economic growth:

Capital and labour
Technology
Human capital (endogenous growth)
Institutions: constitutional design, quality of

government

Natural conditions
Trade

The Singer-Prebisch hypothesis partly confirmed: de-industrialisation, inequality, volatility

SLIDE 6

State-building

Institutions matter

constitutional design
middle-range: budgetary institutions
micro-level: accounting, transparency

Education and collective goods

individual autonomy, female emancipation
productivity
crime, corruption, conflict

Scope of the state

the Washington Consensus
core functions: public administration, education, health

care

tax revenues

SLIDE 7

Inclusive development

Main justification: market drift towards inequality Dimensions of inequality

land
gender
education

No inherent conflict between equality and growth

equality of opportunity fosters growth
some equalisation of outcomes is necessary

SLIDE 8

Long-term distribution in a market economy is starkly unequal

Left curve Gini coefficient, right curve share of total assets for (from the top) the richest1%, 1-5%, and 5-10%, respectively. Source: Fernholz & Fernholz, J. Econ. Dyn. & Control 44, 251-269 (2014).

SLIDE 9

Stylised facts for policy development

Aid works on average but could be more efficient.
Low-growth traps require a joint effort in several fields.
A strong, well-functioning state is central to

development.

Developing countries are under-taxed.
Education is of key importance:
individual autonomy
political maturity
female emancipation
productivity
crime
reduced corruption.
The international trade system is biased in favour of rich

countries.

SLIDE 10

Swedish bilateral aid: current priorities

5529 2970 2089 1469 972 855 718 670 652 627 621 603 19

Humanitarian aid Sustainable built environment Health Market development Research Conflict, peace and security Environment and climate Agriculture and forestry Other purposes Education Budget support Other Democracy, human rights and gender equality

SLIDE 11

Policy conclusions

Policy for Global Development:

Trade policy: adapt the international trade regime to

the needs of developing countries

International tax cooperation: curb tax evasion

(both physical persons and corporations)

Coordinate the PGD from the Prime Minister’s Office

Bilateral development cooperation:

Concentrate efforts sector-wise and geographically
Upgrade support to the educational sector
Upgrade support to public-administration capacity

building

SLIDE 12