i ECONOMIC DEVELOPMENT WHAT EVERYONE NEEDS TO KNOW® ii iii ECONOMIC DEVELOPMENT WHAT EVERYONE NEEDS TO KNOW® Second Edition MARCELO M GIUGALE iv Oxford University Press is a department of the University of Oxford It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide Oxford is a registered trademark of Oxford University Press in the UK and certain other countries “What Everyone Needs to Know” is a registered trademark of Oxford University Press Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY 10016, United States of America © Oxford University Press 2014, 2017 First Edition published in 2014 Second Edition published in 2017 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by license, or under terms agreed with the appropriate reproduction rights organization Inquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this work in any other form and you must impose this same condition on any acquirer CIP data is on file at the Library of Congress ISBN 978–0–19–068842–4 (pbk.); 978–0–19–068841–7 (hbk.) 1 3 5 7 9 8 6 4 2 Paperback printed by WebCom, Inc., Canada Hardback printed by Bridgeport National Bindery, Inc., United States of America v In Memory of Alicia Tamburelli … Gracias por todo, Vieja! vi vii CONTENTS PREFACE: WHOM IS THIS BOOK FOR? ACKNOWLEDGMENTS xi xv Overview: What Is Economic Development and What Does This Book Say about It? 1 Governments: One Day, They Will Work for You Why obvious reforms never happen? How is the relationship between the state and the citizen changing? 11 Why should governments intervene in markets? 14 Has government decentralization worked? 17 Do we really care about graft? 20 Why can’t we stop conflict? 24 Are natural resources a curse? 26 What are the signs a country is managing its riches well? 29 Economic Policy: The Basics You’ve Got to Get Right 33 Why governments struggle to prop up the world’s economy? 33 What is structural reform? 36 vii viii Contents What is the G20 and why does it matter for development? 39 How governments regulate the financial sector? 41 Do the Fed’s decisions matter to the developing world? 44 What Europe’s woes mean for the world’s poor? 46 How you prepare for the next global crisis? 48 Was the commodity bonanza wasted? 51 Will globalization end? 52 Why does growth happen in some places and not in others? 55 Why is it so difficult to agree on tax reform? 59 What is the global tax war? 62 Social Policy: Old War, New Weapons 66 Why did Piketty’s work pique our sudden interest in inequality? 66 How many people live in extreme poverty? 69 How can we help the new poor? 72 Can we end poverty? 75 Is there a way to measure human opportunity? 77 Why are statistics so important in ending poverty? 80 Do we know the real impact of government interventions? 83 Can cheap oil hurt the poor? 86 Inclusion: Those Who Are Always Left Behind 89 Will we ever reach gender parity? 89 Has globalization helped or hurt women? 92 Impact evaluation: A woman’s best friend? 94 How did average housewives become the greatest generation of Argentine women? 97 Why the poor complain so little? 100 Why is early childhood development so difficult? 103 What we know about informal workers? 106 ix Contents ix Sectors: What Ministers Will Worry about—or Should 110 Can governments create industries? 110 Does foreign investment help you join global value chains? 113 Can you innovate your way out of the middle-income trap? 116 From Miami to Mumbai: What makes cities competitive? 119 How will technology shape the world of tomorrow’s leaders? 123 How will tomorrow’s infrastructure be built? 126 How green should economic growth be? 129 Is it time to end fuel subsidies? 133 Can emerging economies have universal health coverage? 135 How you measure the economic impact of Ebola? 138 Is there new power in entertainment education? 141 How you deal with rising food prices? 143 What are “commodity super-cycles,” and why they matter? 146 How oil-rich governments respond to falling oil prices? 149 Should foreign aid be abandoned? 153 What’s the future of foreign aid? 157 Africa: The Last Frontier 161 Is Africa’s emergence for real? 161 Can Africa be defragmented? 165 Can Africans become shareholders in their own wealth? 168 How have the world’s newest nations fared? 171 Can Africa compete with China? 174 Can Africa follow China’s industrialization path? 177 Can services drive Africa’s development? 180 Can Africa feed Africa? 183 How does one fix Africa’s statistics? 186 Did debt forgiveness work in Africa? 190 216 216 Bibliography World Bank 2012c World Development Report 2013: Jobs Washington, DC: World Bank World Bank 2012d More and Better and Jobs in South Asia Washington, DC: World Bank World Bank 2012e Inclusive Green Growth—The Pathway to Sustainable Development Washington, DC: World Bank World Bank 2013 Africa Can Help Feed Africa: Removing Barriers to Regional Trade in Food Staples Washington, DC: World Bank World Bank 2014 The Economic Impact of the 2014 Ebola Epidemic: Short and Medium Term Estimates for West Africa Report No 91219 Washington, DC: World Bank Yunus, Muhammad, and Alan Jolis 1999 Banker to the Poor: Micro- Lending and the Battle against World Poverty New York: Public Affairs 217 INDEX accountability, 21–22, 164 democracy and, 23 foreign aid and, 155, 156 in infrastructure projects, 128 institutions and, 23 public, 21, 23 Acompáñame (Come Along with Me) (soap opera), 141 activism, 3, 16 actors, 10 Africa, 5–6 See also specific countries and organizations agriculture in, 163, 174, 183–86 censuses in, 189 China competing with, 174–76 China presence in, 129, 161 commodities in, 161, 168 debt forgiveness in, 190–93 defragmenting, 165–68 dividend transfers and, 168, 170–71 emergence of, 161–65 extreme poverty levels in, 70–71 food needs and production, 183–86 industrialization, 177–80 informal workers in, 108 services and development of, 180–83 statistics in, 186–90 trade in, 175 trade integration, 177–78 transfer systems in, 156 African Development Bank, 191, 197n1 agglomeration, 56, 122 agriculture in Africa, 163, 174, 183–86 commercialization of, 58 aid dependency, 157 Akerlof, George, 14, 15 Alaska Permanent Fund, 29 Algeria, 150 Angola, 151 The Archers (soap opera), 141 Argentina, 144 women in, 97–100 auditing government accounts, 31–32 auditor general, 32 aversion behavior, 140 Azerbaijan, 150 bailouts, 18 band-pass filter, 148 Bangladesh, 46, 95 Bank of England, 34 banks central, 33–35, 43, 46, 145 stress-testing, 49 218 218 Index Basel III, 43 behavioral economics, 102–3 benefit incidence analysis, 81 bilateral tax treaties, 64 Bill and Melinda Gates Foundation, 159, 197n1 biometric identification, 156 Bitcoins, 118 Bollywood, 142 brain plasticity of, 104 understanding operation of, 124 Brazil, 111, 136, 145, 162 agriculture in, 58 Brexit, 5, 46, 53 British Petroleum, 128 budget deficits, 9 Bureau of Consumer Protection, 15 Burundi, 184 business cycle, 38 Cameroon, 185 Canada, 136 capital human, 73–74, 144 tax on, 68 women and flow of, 93 capital expenditures, 35 Capital in the Twenty-First Century (Piketty), 66 carbon dioxide, 130, 134 carbon footprint, 132 cellular telephony, 82–83 censuses, 189 central banks, 33–35, 43, 46 food inflation and, 145 CFA franc, 47 Charter of Basic Rights for Traders, 185 Charter of Traders Rights, 182 childcare, 8 China, 39, 40, 118 Africa competing with, 174–76 Africa presence of, 129, 161 extreme poverty levels in, 70 industrialization, 177–80 infrastructure projects in, 127 LICs and, 46 outsourcing by, 163–64 super-cycle driven by, 148 trade integration, 177–78 cities competitiveness of, 119–23 environmental sustainability of, 122 expensive, 122 leadership of, 121 clusters, 113 cognitive skills, 4 COMESA See Common Market for Eastern and Southern Africa commercial integration, 52–53 commercialized agriculture, 58 commodities Africa and, 161, 168 people and revenue from, 28 super-cycles in, 146–49 commodity bonanza, 51–52 local industry development and, 147 commodity rents, 26 transfer to citizens, 29 commodity wealth, 26 signs of managing well, 29–32 Common Market for Eastern and Southern Africa (COMESA), 182, 186 communication technology, 161 comparative advantage, 112–13 Competitive Cities (World Bank), 120 comptroller general, 32 concession agreements, 28 conflicts, stopping, 24–26 connectivity, 22 continentalization, 178 219 Index 219 contracts for infrastructure construction, 126 publishing, 30 results, 31 contractual security, 27 coordination, industrial policy and, 112 corruption, 4 government-created industries and, 111 measuring, 22 “Corruption Perception Index” (Transparency International), 22 Côte d’Ivoire, 144, 164, 175 credit informal sector and, 108 micro, 107 credit default swaps, 41 credit-rating agencies, 84 cross-border trade, 3 crowdsourcing, 181 culture middle-income trap and, 117 political involvement and, 102 currencies appreciation of, 48 black markets for foreign, 152 devaluation of, 150 customs agencies, 185 customs unions, 165 cyclical downturns, 36 Deaton, Angus, 153, 154 debt, 155 decentralization and, 20 defaults on sovereign, 48 forgiveness for, 190–93 private investment and, 127 public, 31, 127 decentralization, 155, 164, 178 debt levels and, 20 fiscal, 128 of government, 17–20 public services and, 18–19 technology and, 19 defragmentation, 165–68 deindustrialization, premature, 180 democracy, 3, 142, 155 accountability and, 23 information needs and, 189–90 infrastructure projects and, 128 voice of poor and, 100–101 Democratic Republic of Congo, 162 demographic dividend, 163 Department for International Development (United Kingdom), 197n1 Detroit, 121 devaluation, 150 developing countries commodity income uses, 149 direct cash transfers in, 11 Federal Reserve decisions and, 44–45 universal health coverage in, 135–37 devolution, 178 Dihel, Nora, 181, 182 Dinh, Hinh, 179–80 direct cash transfers, 11, 12, 77, 156, 168, 169 direct dividend transfers, 168, 170, 171 Discovery Health, 137 dividends demographic, 163 direct transfer of, 168, 170, 171 from oil, 168, 171 Doha round, 144 Dutch Disease, 51 early childhood development, 103–6 early interventions, 79 20 220 Index East Timor, 173 Eastern African Community, 182 Ebola, 138–40 Ebola Impact Index, 139 economic activity, concentration of, 56 economic communities, regional, 162 economic development commodity bonanza and, 147 defining, 1 service sector and, 180–83 economic growth, 36 green, 129–32 poverty and, 5 economic management, 5 economic policy, impacts and outcomes of, 83–84 economic shocks, 148 economics, behavioral, 102–3 economies emerging, 135–37, 150 health of, 37 measuring size of, 187 restarting, 173 shifts in, 2 world, 33–36 economies of scale, 56, 58 Ecuador, 151 education access to, 79 brain operation and, 124 economic crises and, 73–74 entertainment, 141–43 graduate, 93 means-testing subsidies for, 12 parental involvement in, 101 preschool, 105 tertiary, 12 efficiency, value chains driving, 115 EITI See Extractive Industries Transparency Initiative emerging economies oil-dependent, 150 universal health coverage in, 135–37 energy impact of unlimited, 123–24 subsidies for, 3 Enron, 15 entertainment education, 141–43 environmental protection, 131 environmental sustainability of cities, 122 economic growth and, 129–32 equity gender, 94–95 intergenerational, 132 social policy enhancing, 79 in tax codes, 60 Ethiopia, 112 EU-Apple dispute, 62 Euro LIC borrowing strategies and, 47 new poor and, 75 Europe, economic troubles of, 46–48 European Central Bank, 46 European Union, 39 former Soviet countries joining, 173 exchange rates, 197n2 food inflation and, 145 manipulation of, 55 exports food, 185 growth strategies with, 53 oil, subsidies and, 133 women and, 94 extractive industries contractual security in, 27 infrastructure and, 128–29 rents generated by, 26 Extractive Industries Transparency Initiative (EITI), 13 21 Index 221 extreme poverty in Africa, 70–71 in China, 70 number of people in, 69–72 United Nations fighting, 71 Farole, Thomas, 114 federal consistency, 61 Federal Reserve, developing world and decisions of, 44–45 Ferreira, Francisco, 138 fertilizers, 184 financial globalization, 93 financial liberalization, 38 financial sector regulation, 41–43 Financial Stability Board, 40 financial volatility, 45 fiscal decentralization, 128 fiscal sustainability, 127 Food and Drug Administration, 15 food exports, 185 food inflation, 143–46 food insecurity, 184 food-deficit countries, 166 food-surplus countries, 166 foreign aid accountability and, 155, 156 criticisms of, 157 effectiveness of, 153–56 future of, 157–60 poverty and, 154 relevance of, 159 foreign currencies, black market for, 152 foreign investment direct, 114 global value chains and, 113–16 fossil fuels, 133–34 fracking, 51, 86, 118, 131, 149 France, 136 free media, 22–23 free-trade agreements, 167 Friedman, Milton, 15 fuel subsidies, 68, 133–35 G 20, 36, 39–41 Gambia, 47 gasoline, 8 subsidies for, 68, 133 GDP See gross domestic product gender discrimination, 3 gender equity, 94–95 gender inequity, 4 gender parity, 89–92, 94 genetics, 125 geography of growth, 55–59 poverty and, 57–58 Ghana, 23, 129, 166, 187 Ghosh, Swati, 45 Gini coefficient, 66 global climate, 130 global financial crises, preparing for, 48–51 global financial meltdown of 2008, 10, 33, 39, 48 commercial integration and, 53 extreme poverty levels and, 70 global financial volatility, 45 Global Fund for Children’s Vaccines, 197n1 Global Partnership on Financial Inclusion, 40 global tax war, 62–65 global value chains, 166 foreign investment and joining, 113–16 globalization, 2, 5, 36, 187 financial, 93 threats to, 52–55 women and, 92–94 good government, encouraging, 21–23 governments auditing accounts of, 31–32 222 Index governments (Cont.) capital expenditure cutbacks by, 35 contracts published by, 30 decentralization of, 17–20 encouraging good, 21–23 financial sector regulation by, 41–43 industry creation and, 110–13 innovation encouraged by, 118 intervention impact, 83–86 local, 17–18 market interventions by, 14–16 migration assistance from, 57–58 oil price responses of, 149–53 world economy propped up by, 33–36 graduate education, 93 graft, 20–23, 185 The Great Divide (Stiglitz), 66 great recession, 33 Greece, 45 green growth, 131, 132 Greenpeace, 91 gross domestic product (GDP), 8 growth economic, 5, 36, 129–32 geography of, 55–59 green, 131, 132 Guinea, 129, 138, 139, 140 H1N1, 140 health coverage, 135–37 hedging, 49 helicopter money, 33, 34 Hollywood, 142 hot money, 43 household surveys, 188 human capital, 73–74 food price spikes and, 144 human opportunity measuring, 77–80 personal circumstances and, 79, 81–82 Human Opportunity Index, 68, 76, 78, 79, 82 hydropower, 130, 162 hyperinflation, 173 IMF See International Monetary Fund impact analysis, reform and, 84–85 impact evaluations, women and, 94–97 import tariffs, 54 imports controls on, 9 industrial policy and, 53 substitute, 53, 110 income inequality, 34, 66–69 India, 39, 141 biometric identification in, 156 poverty in, 55 tax reform in, 59 Indonesia, 39, 75, 134 industrial policy, 110–13 industrial revolution, 147 industrial surveys, 188 industrialization, 177–80 inequality income, 34, 66–69 opportunity, 67–68 inflation, 5, 98 food, 143–46 informal workers, 106–9 information access to, 16 activism and, 3, 16 change driven by, 11 democracy and needs for, 189–90 industrial policy and, 112 on poverty, 156 poverty and, 101–2 infrastructure, 9, 27 building future, 126–29 extractive industries and, 128–29 23 Index 223 social policy and, 127 spending on, as stimulus, 34, 35 innovation governments encouraging, 118 middle-income trap and, 116–19 in United States, 119 institutions accountability and, 23 conflicts and, 24 multilateral, 80, 155–57 interest rates, 33, 34 intergenerational equity, 132 International Energy Agency, 134 International Labor Organization, 40 International Monetary Fund (IMF), 37, 40, 191, 197n1 Iran, 134 Japan, 43 Jobs, Steve, 118 Kazakhstan, 150, 172 Kenya, 141, 166, 185 labor force, women in, 90, 92 labor market surveys, 188 labor unions, 9 Latin America, informal workers in, 107 Leaders’ Summit, 39–40 leadership of cities, 121 technology and, 123–26 transformative, 10 learning, 124, 142 lending, moderating, 42 liberalization financial, 38 trade, 38 Liberia, 138, 139, 140 LICs See low income countries life expectancy, 153 impact of increased, 125 light manufacturing, 176, 179 liquidity trap, 43 local governments, 17–18 low income countries (LICs) China and, 46 Euro and borrowing strategies of, 47 Europe economy and, 46–48 Luxemburg-leaks, 62 macroeconomic buffers, 87 macroprudential regulation, 42 Madagascar, 46 Madoff, Bernie, 15 magnetic anomaly detectors (MADs), 162 Malawi, 95 Malaysia, 134 markets black, 152 firms locating near, 56 government interventions in, 14–16 manipulation of, 14–15 single, 167 surveys of, 188 transportation to, 184–85 Mass Flourishing (Phelps), 117 means-testing education subsidies and, 12 health coverage and, 137 media, competition in, 142 Mexico, 39, 141, 156, 168 new poor in, 75 tax reform in, 59 Miami Beach, 120 microcredit, 107 middle-income trap, 116–19 migrant workers, remittances by, 47 migration, government assistance for, 57–58 24 224 Index military dictators, 98 Millennium Development Goals, 158 Morocco, 134 mortgage backed securities, 41 mortgages, 14, 34 Mozambique, 46, 103 multilateral institutions, 80 foreign aid through, 157 governance and, 155–56 multinational companies, 113 mystery shopping, 181 Namibia, 172–73 national accounts, 187 national brands, 110–11 nationalism, 5, 46 natural disasters, 2 natural resources, 26–29 China and, 178–79 intergenerational equity and, 132 selling, 129 signs of managing well, 29–32 new industrial policy, 111–13 new nations, 171–74 new poor, 72–75 NGOs See nongovernmental organizations Nguyen, Nga, 156, 169 Nigeria, 151, 153, 184 film industry, 175–76 fuel prices in, 134 poverty line in, 2 Nollywood, 142, 175–76 noncognitive skills, 4, 81, 119 nongovernmental organizations (NGOs), 22, 84, 159 nontariff barriers, 166 nutrition, 104 occupational segregation, 90, 92 ODA See Official Development Assistance OECD See Organization for Economic Cooperation and Development Official Development Assistance (ODA), 157 oil cheap, 86–88 commodity super-cycles and, 148 dividends from, 168, 171 environmental costs, 130 responses to falling prices for, 149–53 subsidies and, 133 super-cycle in prices of, 150 Open Market Committee, 44 opportunity, inequality in, 67–68 Organization for Economic Cooperation and Development (OECD), 22, 40, 62, 63 outsourcing, 163–64 Oxford Handbook of Africa and Economics (Thomas), 192 Panama Papers, 62 Panzer, John, 138 PARIS21 See Partnership in Statistics for Development in the 21st Century partial adjustment, 151 Partnership in Statistics for Development in the21st Century (PARIS21), 189 people commodity revenue and, 28 in extreme poverty, 69–72 manipulation of, 15 state relationship to, 2–3, 11–14, 77 permanent income rule, 52 Peru, 128 Phelps, Edmund, 117–18 philanthropy, new poor and, 74 phishing, 14–16 25 Index 225 Phishing for Phools: The Economics of Manipulation & Deception (Akerlof and Shiller), 14 Piketty, Thomas, 66–69 policy reforms, 158 political economy, 10, 167 political stability, 27–28 health coverage and, 135 political transitions, 77 politics, informal sector and, 108–9 populism, 2 poverty, 6 cheap oil and, 86–88 defining, 1–2, 75 early childhood development and, 103 economic growth and, 5 ending, 75–77 extreme, number of people in, 69–72 foreign aid and, 154 geography and, 57–58 growth distribution and, 55 in India, 55 informal workers and, 106 information and, 101–2 new poor, 72–75 old statistics on, 188 political freedom and, 100–101 political involvement and, 100–103 statistics importance to, 80–83 poverty-reducing expenditures, 192 PPP dollars, 200n11 premature deindustrialization, 180 preschool education, 105 price controls, 146 price distortions, 152 price projection, 30 privatization, 80, 126 productivity, 38 of farmers, 145 of informal workers, 108 professional services, 175 Program for International Student Assessment, 22–23 progressivity, 60, 64 public accountability, 21 institutions role in, 23 public debt, 31 private investment and, 127 public expenditures, finding impact of, 3 public goods, 28, 170 public investment projects, evaluation of, 31 public schooling, 3 public services, 3 in Argentina, 99 decentralization and, 18–19 direct dividend transfers and, 170 direct transfer delivery of, 12 free, 68 public-private partnerships, 127 purchasing power parity, 197n2, 200n11 quantitative easing, 34 Rachel, Lukasz, 34 randomized control trials, 82, 101 recessions, inequality and recovery from, 67 reform basics of, 37–38 cost of, 38 impact analysis and, 84–85 policy, 158 political economy of, 10 sequencing, 38 structural, 35, 36–39 tax, 59–62 regional economic communities, 162 26 226 Index regulation, of financial sector, 41–43 regulatory perimeter, 42 regulatory shopping, 43 relative prices, 124 remittances, 47, 183 Rentfrow, Jason, 119 Rents to Riches?, 27 results contracts, 31 risk, systemic, 41 Russia, 75, 150 Rwanda, 96, 165, 185 SARS, 140 Saudi Arabia, 151 scrutiny effect, 169 Securities and Exchange Commission, 15 seed certification, 184 self-isolation, 162, 167 Senegal, 184 services public, 3, 12, 18–19, 68, 99, 170 trade and, 175, 180–83 Shiller, Robert, 14, 15 Shonkoff, Jack, 104 Sierra Leone, 138, 140 single markets, 167 Smith, Thomas, 34 soap operas, 141 soccer, 8–9 social activism, 16 social assistance, 73 tailored programs, 4 social policy, 67 equity-enhancing, 79 infrastructure and, 127 state-citizen relationship and, 77 social safety nets, 49 social solidarity, 5 South Africa, 137, 179, 181 South Sudan, 137, 172 South–South integration, 54 sovereign debt, defaults on, 48 sovereign wealth funds, 27, 30–31, 34 spillovers, of global value chains, 114–15 start-ups, 119 state newly independent, 171–74 people relationship to, 2–3, 11–14, 77 statistics, 80–83 Africa, 186–90 Stiglitz, Joseph, 66, 67, 68 stress-tests, 49 structural adjustment, 37 structural reform, 35, 36–39 structurally poor, 73 subprime mortgages, 14 subsidies blanket, 4, 79 data improving, 80–81 direct transfers in, 12 energy, 3 focalization of, 79 fuel, 68, 133–35 green growth and, 131 oil exports and, 133 substitute imports, 53, 110 super-cycles commodity, 146–49 in oil prices, 150 technology and, 147 surveys, 13 Sustainable Development Goals, 71, 158 Swiss-leaks, 62 systemic risk, 41 Tamburelli, Alicia, 97–100 Tanzania, 141, 164, 166, 181 tapering, 45 tariffs, 127 tax avoidance, 62 tax cuts, 34 27 Index 227 tax evasion, 62 tax reform, 59–62 taxes administrative simplicity in, 60 behavior and, 60 equity in, 60 food inflation and, 145 informal workers and, 106–7 political feasibility and, 61 progressivity in, 60, 64 sharing among regions, 57 teacher absenteeism, 3 technology as change maker, 10–11 communication, 161 decentralization and, 19 entertainment education and, 141–42 geography of growth and, 58 leadership and, 123–26 super-cycles and, 147 telenovelas, 141 tertiary education, 12 Thailand, 144 Thomas, Mark, 192 Togo, 47 toll-road concessions, 127 total factor productivity, 38 trade in Africa, 175 nontariff barriers to, 166 services, 175, 180–83 trade agreements diversification and, 54 social concerns role in, 54–55 trade liberalization, 38 trade negotiations, 144 transfers cash, 11, 12, 77, 156, 168, 169 dividend, 168, 170, 171 public service delivery, 12 subsidies and, 12 transformative leadership, 10 transparency, contract publishing for, 30 Transparency International, 22 transportation, 58 Twitter, 118 Uganda, 96, 129, 164 UN WOMEN, 197n1 unemployment, 9 unemployment insurance, 73 UNHCR, 197n1 UNICEF, 197n1 United Nations, 40, 171 extreme poverty fought by, 71 specialized agencies, 197n1 United Nations Declaration of Human Rights, 143 United States, 39, 139 See also Federal Reserve health coverage in, 135, 137 innovation in, 119 poverty line in, 2 tax reform in, 59 universal health coverage, in emerging economies, 135–37 UNIWAX, 175 urbanization, 128 Uruguay round, 144 US Agency for International Development, 197n1 value chains, global, 113–16, 166 value-added tax (VAT), 61 Venezuela, 151, 152 Washington Consensus, 37 watchdog NGOs, 84 water utilities, 127 wax-print fabrics, 175 WDI See World Development Indicators WDR See World Development Report Winkler, Deborah, 114 28 228 Index women in Argentina, 97–100 benefits of fairness for, 90–91 capital flow and, 93 export industries and, 94 gender parity and, 89–92 globalization and, 92–94 graduate education and, 93 impact evaluation and, 94–97 improvements for, 89–90 in labor force, 90, 92 occupational segregation of, 90, 92 voting, 98 workers, informal, 106–9 World Bank, 40, 80, 85, 179, 191, 197n1 on city competitiveness, 120 development assistance through, 157 development indicators, 69 development report, 24, 25 Ebola impact research, 138, 139 financial volatility research by, 45 governance and, 155–56 human opportunity research, 78 innovation research, 119 LIC classification by, 46 oil price research, 86 services sector research, 181 Washington Consensus and, 37 World Development Indicators (WDI), 69, 70, 71 World Development Report (WDR; World Bank), 24, 25 world economy, propping up, 33–36 World Trade Organization, 40 xenophobia, 48 YouTube, 128 Zambia, 181 29 230 ... i ECONOMIC DEVELOPMENT WHAT EVERYONE NEEDS TO KNOW® ii iii ECONOMIC DEVELOPMENT WHAT EVERYONE NEEDS TO KNOW® Second Edition MARCELO M GIUGALE iv Oxford University... @Marcelo_WB xvi ECONOMIC DEVELOPMENT WHAT EVERYONE NEEDS TO KNOW® xvi 1 OVERVIEW WHAT IS ECONOMIC DEVELOPMENT AND WHAT DOES THIS BOOK SAY ABOUT IT? At its most basic level, economic development is the... would like to thank for teaching me so much and for helping me make Economic Development: What Everyone Needs to Know® a reality Omar Arias, Nancy Benjamin, Paul Brenton, Otaviano Canuto, Daniel