Annual World Bank Conference on Development Economics-Europe 2003: Toward Pro-Poor Policies--Aid, Institutions, and Globalization (Annual World Bank Conference ... Bank Conference on Development Economics)

367 Pages·2004·2.36 MB·English

by  Bertil Tungodden

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h Annual World Bank Conference on
ut The Annual World Bank Conference on Development Economics (ABCDE) provides a
A forum for the world’s leading development thinkers to share new knowledge and
re ideas. In recent years a second conference, ABCDE—Europe, has been held to A Development Economics
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os expand the flow of ideas among scholars, practitioners, and policymakers concerned with n
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bli ABCDE—Europe 2003presents selected papers from the fourth annual ABCDE—Europe o
u meetings, held June 24–26, 2002, in Oslo, Norway. Hosted by the World Bank and r
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the Chr. Michelsen Institute, more than 350 experts from 50 countries met to deliberate
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on the theme “Toward Pro-Poor Policies.” The papers in this volume, from Oslo sessions a
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on aid, institutions, and globalization, provide both a general overview of links between k
ed poverty, inequality, and growth; and insight and opinions on specific topics such as the C
oriz Heavily Indebted Poor Countries Initiative for debt reduction. All consider the role of on
h policies and institutions in development and poverty reduction. f Toward Pro-Poor Policies
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su An overview by Bertil Tungodden, Ivar Kolstad, and Nicholas Stern; papers on aid by e
sclo Nicholas Stern, David Roland-Holst and Finn Tarp, Stephan Klasen, Lisa Chauvet and on Aid, Institutions, and
Di Patrick Guillaumont, and Jean-Pierre Cling, Mireille Razafindrakoto, and François Roubaud; D
c papers on institutions by Mariano Tommasi, Mushtaq Khan, David Dunham, Stanley e Globalization
ubli Engerman and Kenneth Sokoloff, Karla Hoff and Joseph Stiglitz; and papers on globaliza- ve
P tion by Jomo Sundaram, John Dunning, Antonio Spilimbergo, Juan Luis Londoño, and lo
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Miguel Székely, Andrés Solimano, and Oded Stark.
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ISBN 0-8213-5388-8
5TH ANNUAL WORLD BANK CONFERENCE ON
DEVELOPMENT ECONOMICS—EUROPE
Paris, France
“Economic Integration and Social Responsibility”
May 15–16, 2003
Capital, Human, Knowledge, Aid, and Trade Flows
Toward Pro-Poor Policies

Annual World Bank Conference on
Development Economics—Europe
2003
Toward Pro-Poor Policies
Aid, Institutions, and
Globalization
Edited by
Bertil Tungodden,
Nicholas Stern, and Ivar Kolstad
A copublication of the World Bank and Oxford University Press
© 2004 The International Bank for Reconstruction and Development/The World Bank
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Washington, DC 20433
Telephone [phone]
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E-mail [email protected]
All rights reserved.
1 2 3 4 07 06 05 04
A copublication of the World Bank and Oxford University Press.
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Edited by Bertil Tungodden, Nicholas Stern, and Ivar Kolstad
ISBN 0-8213-5388-8
Contents
Acknowledgments vii
Toward Pro-Poor Policies: An Overview 1
Bertil Tungodden, Ivar Kolstad, and Nicholas Stern
Part I. Aid
Scaling Up: The Challenge of Monterrey 13
Nicholas Stern
New Perspectives on Aid Effectiveness 43
David Roland-Holst and Finn Tarp
In Search of the Holy Grail: How to Achieve Pro-Poor Growth? 63
Stephan Klasen
Aid and Growth Revisited: Policy, Economic Vulnerability, 95
and Political Instability
Lisa Chauvet and Patrick Guillaumont
New Poverty Reduction Strategies: Old Wine in New Bottles? 111
Jean-Pierre Cling, Mireille Razafindrakoto, and François Roubaud
Part II. Institutions
Crisis, Political Institutions, and Policy Reform: The Good, 135
the Bad, and the Ugly
Mariano Tommasi
State Failure in Developing Countries and Institutional Reform Strategies 165
Mushtaq H. Khan
States, Reforms, and Institutional Change: The Dynamics of Failure 197
David Dunham
V
VI | CONTENTS
Inequality before and under the Law: Paths of Long-Run 213
Development in the Americas
Stanley L. Engerman and Kenneth L. Sokoloff
The Transition Process in Postcommunist Societies: 231
Toward a Political Economy of Property Rights
Karla Hoff and Joseph E. Stiglitz
Part III. Globalization
Lessons from the 1997–98 East Asian Crises 249
Jomo Kwame Sundaram
Determinants of Foreign Direct Investment: 279
Globalization-Induced Changes and the Role of Policies
John H. Dunning
Income Distribution, Factor Endowments, and Trade Openness 291
Antonio Spilimbergo, Juan Luis Londoño, and Miguel Székely
Globalizing Talent and Human Capital: Implications for 315
Developing Countries
Andrés Solimano
The Economics of the Brain Drain Turned on Its Head 335
Oded Stark
Appendix: Program 347
Acknowledgments
These proceedings are the result of a joint effort by the World Bank and the Chr.
Michelsen Institute. The editors extend their thanks first and foremost to the authors
and referees of this volume. We also thank François Bourguignon, Ingrid Johansen,
F. Desmond McCarthy, Deena Philage, and Boris Pleskovic at the World Bank;
Antonio Spilimbergo at the International Monetary Fund; and Alf Morten Jerve,
Arve Ofstad, and Arne Wiig at the Chr. Michelsen Institute. Finally, we thank the
editorial staff, in particular Alice Faintich and Kim Kelley, for their work on this
volume.
VII