Poverty and Economic Growth in Russia’s Regions

The extent of poverty reduction has varied enormously during the recovery period across the eighty-three regions of Russia, with some regions continuing to experience increases in poverty even though they have returned to growth. We attempt to understand and analyse the reasons for this regional variation. We focus on two principal causative factors: the changes in economic structure resulting from the liberalisation of the economy, and policy instruments aimed at poverty reduction. We find that many regions which experienced structural change under perestroika (notably those benefiting from the current oil and gas boom) experienced massive growth in GDP but little poverty reduction, because their prevailing production function is capital-intensive and thus they were unable to transmit much or any reduction in poverty through the labour market. Regions where the growth of the early 2000s was diversified, was based more on the service sector, and where the educational system made possible flexibility within the labour market, tended to be more effective at generating poverty reduction

Budget support, conditionality and poverty

This paper examines the effectiveness of budget support aid as an anti-poverty instrument. We argue that a major determinant of this effectiveness is the element of trust – or `social capital´, as it may be seen – which builds up between representatives of the donor and recipient. Thus we model the conditionality processes attending budget support aid, not purely in the conventional way as a non-cooperative two-person game, but rather as a non-cooperative game which may mutate into a collaborative equilibrium if sufficient trust between the negotiating parties builds up. Whether or not this happens is, we argue, fundamental to the effectiveness of conditionality, and of budget support aid. This then requires us to enquire into the determinants of trust, which - we empirically demonstrate - derive from the experience of the negotiating parties with one another, from the incentives they are able to provide to trust one another and from the processes within which their negotiations are conducted. The model is tested against two samples: extensively against a broad sample of all African countries undergoing budget support operations and intensively against a narrow sample of Ethiopia, Uganda, Malawi and Zambia. The statistical analysis suggests that trust has in practice been achieved not only through a positive `social history´ but by the transmission of forward-looking `signals´ or `bona fides´ concerning fundamentals: high pro-poor expenditure, low military expenditure, and low corruption show a positive relationship with growing trust (measured in terms of freedom from programme interruptions). Where these signals are present, budget support aid is in general growing, and slippage on overt conditionality is in general forgiven; but there are exceptions to this trend, as our case-study analysis demonstrates . A proactive stance in defence of a pro-poor strategy is positive for trust, as are certain procedural reforms including the presence of an IMF resident mission and frequent face-to-face meetings between negotiators for donor and recipient. High trust generates stability of aid, and stability of aid, in conjunction with its level and its targeting, significantly influences growth and poverty outcomes

The development of trust and social capital in rural Uganda: An experimental approach

Trust is important for development but can be hard to build. In this paper, we report on experiments designed to understand the determinants of trust in villages in eastern Uganda, and in particular whether trust can be `built´ by offering insurance to people as a protection against the possibility that the trust they offer will not be reciprocated. We find, firstly, that the effects of income and wealth on trust are ambiguous: trust is higher in the richer than the poorer village, but once association and female education are added as explanatory variables, the wealth effect disappears. Secondly, although the offer of insurance is taken up by a majority of players, this is in most cases not an `effective demand´ in the sense of incentivising higher levels of trust. Effective demand for insurance, defined in this way, however responds positively to high levels of risk efficacy, microfinance membership and female education. Insurance offered in this form, therefore, is on its own apparently not a reliable technology for building trust; but its effectiveness as a trust-building instrument appears to increase if certain complementary institutions are in position

Aid, agriculture and poverty in developing countries

We make two contributions to the debate on aid-effectiveness, illustrating that for impact on poverty what matters is not just the level but also the composition and stability of aid. One specific implication of this for aid policy is that aid most effectively reduces poverty if it supports public (and other) expenditures which are supportive of agricultural development – these, our regression analysis confirms, are not only direct expenditure on agriculture, but also education and infrastructure, and military expenditure has a negative impact. Three factors appear to be particularly conducive to the development of stable pro-poor expenditure patterms (and in particular pro-agriculture expenditure patterns). These are expenditure strategies which protect the poor against risk, the development of stable relations between governments and aid donors, and long-term political commitment to pro-poor strategies by government. The argument is pursued partly by panel-data econometric analysis of developing countries as a whole, and partly by case studies of sustained and non-sustained green revolutions in heavily aid-dependent countries in Africa

Pure single photon generation by type-I PDC with backward-wave amplification

We explore a promising method of generating pure heralded single photons. Our approach is based on parametric downconversion in a periodically-poled waveguide. However, unlike conventional downconversion sources, the photon pairs are counter-propagating: one travels with the pump beam in the forward direction while the other is backpropagating towards the laser source. Our calculations reveal that these downconverted two-photon states carry minimal spectral correlations within each photon-pair. This approach offers the possibility to employ a new range of downconversion processes and materials like PPLN (previously considered unsuitable due to their unfavorable phasematching properties) to herald pure single photons over a broad frequency range.Comment: 8 pages, 3 figures, minor text changes and reformattin

The macroeconomics of aid: overview

This Special Issue explores macroeconomic effects of aid from various perspectives through a blend of studies, both conceptual and empirical in nature. The overall aim is to enhance the understanding of the macroeconomic dimensions of aid in the policy and research communities, and to inspire further innovative work in this important area. This opening article provides a scene setting summary of five generations of aid research, with a particular focus on how the JDS has contributed to this literature, and ends with an overview of the papers included in this Issue

Ultratunable quantum frequency conversion in photonic crystal fiber

Quantum frequency conversion of single photons between wavelength bands is a key enabler to realizing widespread quantum networks. We demonstrate the quantum frequency conversion of a heralded 1551 nm photon to any wavelength within an ultrabroad (1226 - 1408 nm) range in a group-velocity-symmetric photonic crystal fiber (PCF), covering over 150 independent frequency bins. The target wavelength is controlled by tuning only a single pump laser wavelength. We find internal, and total, conversion efficiencies of 12(1)% and 1.4(2)%, respectively. For the case of converting 1551 nm to 1300 nm we measure a heralded $g^{(2)}(0) = 0.25(6)$ for converted light from an input with $g^{(2)}(0) = 0.034(8)$. We expect that this PCF can be used for a myriad of quantum networking tasks

Accessing the purity of a single photon by the width of the Hong-Ou-Mandel interference

We demonstrate a method to determine the spectral purity of single photons. The technique is based on the Hong-Ou-Mandel (HOM) interference between a single photon state and a suitably prepared coherent field. We show that the temporal width of the HOM dip is not only related to reciprocal of the spectral width but also to the underlying quantum coherence. Therefore, by measuring the width of both the HOM dip and the spectrum one can directly quantify the degree of spectral purity. The distinct advantage of our proposal is that it obviates the need for perfect mode matching, since it does not rely on the visibility of the interference. Our method is particularly useful for characterizing the purity of heralded single photon states.Comment: Extended version, 16 pages, 9 figure