45,479 research outputs found

    Cross-country typologies and development strategies to end hunger in Africa

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    The key motivation behind this study is to explore the many patterns of interactions between economic and non-economic factors in sub-Saharan Africa (hereafter referred to as Africa) in order to map out a typology of different types of country situations and thus, corresponding future options to develop strategies to end hunger and poverty in the region. The study builds on the earlier work of Irma Adelman and Cynthia Morris who argued that economic development is a dynamic, multi-faceted, nonlinear, and malleable process, a process explained by the many complex interactions between social, economic, political and institutional changes. As in Adelman and Morris, we use factor analysis to reduce a large number of variables into a manageable set of key factors. Next, using the newly developed classification and regression tree technique (CART), we link the outcome variables, such as per capital GDP and the prevalence of child malnutrition, with this smaller set of factors. This overcomes the limitations of Adelman and Morris. work that mixed the outcome and explanatory variables in their analysis. The analysis helps identify the most important factors for each outcome indicator, which provides guidance for defining the development of a typology and exploring future strategy options associated with each country type.

    Pegging To The Dollar And The Euro

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    The newly-launched euro is bound to attract some "trackers"- that is, countries that attempt to maintain exchange rate stability against the euro. In this paper, we ask whether the existence of trackers should be a matter of concern for the European Union. To gain some insight, we review the historical experience of the US with respect to dollar trackers. We identify and analyse the countries most likely to track the euro. Although the aggregate size of potential euro-trackers is small relative to the euro zone, we argue that this does not justify an attitude of benign neglect. Rather, we make recommendations for EU policy towards euro-trackers, arguing in favour of some limited and conditional support for stable bilateral exchange rates.

    Federal Aid to the States: Historical Cause of Government Growth and Bureaucracy

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    In recent years, members of Congress have inserted thousands of pork-barrel spending projects into bills to reward interests in their home states. But such parochial pork is only a small part of a broader problem of rising federal spending on traditionally state and local activities. Federal spending on aid to the states increased from 286billioninfiscal2000toanestimated286 billion in fiscal 2000 to an estimated 449 billion in fiscal 2007 and is the third-largest item in the federal budget after Social Security and national defense. The number of different aid programs for the states soared from 463 in 1990, to 653 in 2000, to 814 by 2006. The theory behind aid to the states is that federal policymakers can design and operate programs in the national interest to efficiently solve local problems. In practice, most federal politicians are not inclined to pursue broad, national goals; they are consumed by the competitive scramble to secure subsidies for their states. At the same time, federal aid stimulates overspending by the states, requires large bureaucracies to administer, and comes with a web of complex regulations that limit state flexibility. At all levels of the aid system, the focus is on spending and regulations, not on delivering quality services. And by involving all levels of government in just about every policy area, the aid system creates a lack of accountability. When every government is responsible for an activity, no government is responsible, as was evident in the aftermath of Hurricane Katrina. The failings of federal aid have long been recognized, but reforms and cuts have not been pursued for years. Aid has spawned a web of interlocking interests that block reform, including elected officials at three levels of government, armies of government employees, and thousands of trade associations representing the recipients of aid. Yet the system desperately needs to be scaled back, not least because the rising costs of federal programs for the elderly are putting a squeeze on the federal budget. To help spur reform, this study examines the historical growth of the aid system and describes its failings. Congress should reconsider the need for aid and begin terminating activities that could be better performed by state and local governments and the private sector
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