Download Annual World Bank Conference on Development Economics by Boris Pleskovic, Nicholas Stern PDF

By Boris Pleskovic, Nicholas Stern

The yearly global financial institution convention on improvement Economics (ABCDE) brings jointly the world's major students and improvement practitioners for a full of life debate on cutting-edge considering in improvement coverage and the consequences for the worldwide financial system. The thirteenth convention handled very important and debatable topics in improvement: globalization and inequality, with Daniel Cohen, Richard N. Cooper, Kevin H. O'Rourke, and Anthony J. Venables; and healthiness and improvement, and Anne Case, Jean O. Lanjouw, Tomas Philipson and Rodrigo R. Soares, and Morten Rostrup. James D. Wolfensohn and Nicholas Stern additionally talk about the convention.

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Tolstoy tells us that every unhappy family is unhappy in its own way. Each country with a corruption problem, too, seems to have its own story to tell. Research is needed to understand how corruption works, who benefits the most, and who suffers the most. This knowledge will allow governments to devise more effective anticorruption policies. Closely related to the problems of corruption and governance is the issue of institutional development. Recent experience in the transition economies has taught us hard lessons about the importance of institutions.

A second measure, though a crude one, is the incremental capital-output ratio (ICOR), which focuses more directly on the effects of investment itself. An earlier generation of development economists tended to view the ICOR as a well-specified function; although it increased with capital accumulation, it was assumed to remain constant for any given level of the capital-output ratio (at least with Harrod-neutral technical progress). But we know that in fact there are large variations in the ICOR, depending on the degree to which the investment climate is conducive to productivity and growth.

A functioning power grid is a key requirement for a vibrant small business sector. In India, because of the poor quality of grid-based electricity, most small and medium-size enterprises that we surveyed have their own power generators. In Uttar Pradesh 98 percent of firms surveyed had their own generators (they had little alternative), while in Maharashtra the share was much smaller, 44 percent. For the economic theorist, it is striking that firms surveyed in Uttar Pradesh—one of the poorest states in India, with very low wage rates—showed higher capital-output ratios on average than those in some of the richest states.

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