Information and communication technologies for the poor:

This brief is based on Information and Communication Technologies for Development and Poverty Reduction: The Potential of Telecommunications, ed. Maximo Torero and Joachim von Braun (Johns Hopkins University Press and IFPRI, 2006) "The variety of views about ICTs reveals that their role in development is unclear, especially without convincing evidence of their impact—and little research has been conducted on the direct and indirect links between ICTs and poverty reduction. A new book, Information and Communication Technologies for Development and Poverty Reduction: The Potential of Telecommunications, published by the Johns Hopkins University Press for IFPRI, addresses several pressing questions surrounding ICTs. How do ICTs affect economic development in low-income countries? How do they affect poor people in these countries and in rural areas in particular? What policies and programs facilitate their potential to enhance development and the inclusion of poor constituents? The book presents researchers' findings related to five critical questions. (1) What link exists between ICT growth and economic growth? (2) Do weak institutions block effective use of ICTs? (3) Have ICTs been adapted to low-income countries, and have they had an impact on SMEs? (4) Does household access to ICTs remain constrained? (5) Can ICTs play a role in providing pro-poor public goods and services?" from TextICT, Information technology, Poverty reduction, Development, Telecommunications, Economic development Developing countries, rural areas, Institutions,

Agricultural input market reforms

The objective of this paper is to derive lessons from selected literature concerning the impact and the conditions of successful agricultural input market reform. The agricultural inputs of interest in this review are: fertilizers, seeds, agricultural equipment, pesticides, and livestock services and health inputs. The paper examines the rationale for market reform, its impact on growth, productivity, and income of farmers, and the conditions for success. Six main conclusions emerge from this review. First, market structures are the result of evolutionary processes that accompany the adoption and the diffusion of modern technology in agriculture. Second, the development of markets and private sector cannot occur unless an adequate infrastructure is in place. Third, markets cannot work unless a favorable institutional environment is created. Fourth, the success of reforms is heavily influenced by the sequencing of various policy measures. Fifth, the participation of the private sector is dependent on the credibility of government policies in support of market reforms. Finally, the scanty evidence on the impact of market reforms on small farmers suggests that these groups are often penalized.Markets Economic policy ,

End of the line: Railroads in Chile

Between 1860 and 1950, railroads in Chile were synonym of modernization, integration, and economic development. By the 1970s railroads were bankrupt and socially discredited, surviving out of government subsidies. By 2000, passenger services had disappeared but private sector freight operations were revitalized after swift reforms. We review the Chilean reforms and experience, focusing on regulation, public sector involvement and political interference, market entry, vertical integration, and externalities. Perhaps uniquely, two different forms of private sector participation in freight operations emerge after reforms: a vertically integrated, privatized railroad and a state-owned, open-access, concession system.Railways, divestiture, regulation, industrial organization

"The Role of the Government in Facilitating TFP Growth during Japan's Rapid Growth Era"

Japan experienced high growth of TFP following World War II. This paper studies the sources of this technological growth and documents the role played by different government policies in achieving such growth. We find that in nonagricultural sectors, TFP growth occurred at first through the import of foreign technologies via licensing, and subsequently through the innovation of its own technologies. In agriculture, TFP grew mostly through the development of its own technologies. The Japanese government played a part in the growth of TFP by directing the adoption of foreign technologies, promoting coordination of R&D activities, and setting up channels for the domestic diffusion of available technologies.

The case for industrial policy : a critical survey

What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization? To address these questions, the authors provide a critical survey of the analytical literature on industrial policy. They also review some recent industry successes and argue that only a limited role was played by public interventions. Moreover, the recent ascendance of international industrial networks, which dominate the sectors in which less developed countries have in the past had considerable success, implies a further limitation on the potential role of industrial policies as traditionally understood. Overall, there appears to be little empirical support for an activist government policy even though market failures exist that can, in principle, justify the use of industrial policy.Economic Theory&Research,ICT Policy and Strategies,Water and Industry,Industrial Management,Markets and Market Access

Promoting environmentally sustainable enterprises: some policy options

Governments around the world are taking an increasing interest in promoting environmentally-sustainable economic activity. They have developed a variety of policy approaches in an effort to address environmental issues that range from localised pollution incidents to global climate change. This chapter examines the kinds of intervention tools that are being used to improve the environmental performance of SMEs, and to guide entrepreneurial energies towards more environmentally-benign goals. The chapter aims to: (1) outline the main options available to policy-makers; (2) compare specific intervention tools, noting their strengths and limitations; and (3) discuss the case for adopting more holistic approaches to address the pervasive, complex and often deeply-rooted challenges of sustainable development. Key lessons are that policy makers need to select appropriate combinations of tools based on careful reviews of the evidence, and that well-integrated, context-sensitive policies are likely to prove the most effective

Innovation policy; Europe or the member states?

Innovation seldom has purely domestic causes and consequences, but how can a European innovation policy complement or substitute national policies? Taking the subsidiarity principle as a starting point, this report discusses the economic rationale of a European innovation policy. Explorative empirical analysis suggests that public R&D and public funding of private R&D are subject to economies of scale and external effects. This is an argument in favour of a European innovation policy but amongst other things, the heterogeneity in social economic objectives on public R&D spending between Member States pleas for national government involvement. In addition, there are scale economies in the protection of intellectual property and in the development of standards. We conclude that a European innovation policy could have, or already has, substantial benefits over purely national policy in these areas. With respect to innovation policies targeted at SMEs, we do not find economies of scale or external effects. It seems to be efficient that these policies are mainly conducted at the national level.

Platform Rules: Multi-Sided Platforms as Regulators

This paper provides a basic conceptual framework for interpreting non-price instruments used by multi-sided platforms (MSPs) by analogizing MSPs as "private regulators" who regulate access to and interactions around the platform. We present evidence on Facebook, TopCoder, Roppongi Hills and Harvard Business School to document the "regulatory" role played by MSPs. We find MSPs use nuanced combinations of legal, technological, informational and other instruments (including price-setting) to implement desired outcomes. Non-price instruments were very much at the core of MSP strategies.Platforms, regulation, network effects, distributed innovation

Output-based Aid for Sustainable Sanitation

A review of the experience to date in applying output-based and other results-oriented financing aid formats to the delivery of sanitation services and goods in developing countries. The paper looks at the theoretical underpinnings which justify output-based subsidies in sanitation, reviews a selection of output-based aid projects and then proposes some new approaches which could help to make financing in sanitation more effective and accountable