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“Compressed demand”: How Uttar Pradesh is making sure rural sanitation subsidies for toilets go to the most needy

Arun Kumar Dobhal's picture

When the “Swachh Bharat Mission-Gramin” (SBM-G) was launched in October 2014 with the goal of making rural India free from open defecation by 2019, it gave states and districts more flexibility than previous national sanitation programs had. This led to a successful experiment in Uttar Pradesh called “demand compression”.

The state was preparing to use a tried-and-tested triggering process, where trained motivators concentrate their efforts on a community to help improve their understanding of safe sanitation and stimulate demand for toilets in rural communities where open defecation is still common. However, they faced a problem. If all the households that were eligible for government subsidies would actually claim them, funds would soon run out. With an estimated 15 million households across Uttar Pradesh without a toilet and eligible for a government subsidy of around $200, about $3 billion would be needed.

Household toilet constructed from own resources

Trade agreements as public goods

Aaditya Mattoo's picture

If a trade economist were abruptly woken up by somebody shouting, “preferential trade agreements” (PTAs), their first thought is likely to be “trade creation among participants and trade diversion away from those left out.” That is a measure of the influence of Jacob Viner’s classic book The Customs Union Issue on the profession, on the policy debate and on our attitude towards PTAs.
 
Brexit and the renegotiation of NAFTA have renewed interest in the impact of trade agreements and the consequences of undoing them.  In a recent paper, Mattoo, Mulabdic and Ruta (2017) and column (VOXEU), we use new information on the content of PTAs to examine their trade effects.

When should you cluster standard errors? New wisdom from the econometrics oracle

David McKenzie's picture

In ancient Greek times, important decisions were never made without consulting the high priestess at the Oracle of Delphi.  She would deliver wisdom from the gods, although this advice was sometimes vague or confusing, and was often misinterpreted by mortals. Today I bring word that the high priestess and priests (Athey, Abadie, Imbens and Wooldridge) have delivered new wisdom from the god of econometrics on the important decision of when should you cluster standard errors. This is definitely one of life’s most important questions, as any keen player of seminar bingo can surely attest. In case their paper is all greek to you (half of it literally is), I will attempt to summarize their recommendations, so that your standard errors may be heavenly.

Let’s work together to make land rights for women a reality

Victoria Stanley's picture
Video: Land ownership for women prevents fears of uncertainty


Around the world, rural women are a major provider of food and food security. The Food and Agriculture Organization of the United Nations argues that improving women’s access to productive resources (such as land) could increase agricultural output by as much as 2.5% to 4%. At the same time, women would produce 20-30% more food, and their families would enjoy better health, nutrition, and education.

But women in rural areas often face both formal and informal barriers to accessing and owning land. Today, only 30% of land rights are registered or recorded worldwide, and women are the least secure in their access to land rights, with major gaps existing between law and practice in many developing countries.

Securing land rights for all is key to building disaster-resilient communities

Sameh Wahba's picture

October 13 is the International Day for Disaster Reduction.

From East Asia, South Asia, and Africa to Latin America, disaster events such as hurricanes, floods, and earthquakes are on the rise, destroying homes and claiming lives.

Climate change is making it worse. Extreme weather is hitting us harder and more frequently as the planet warms, causing greater losses.

A richer array of international poverty lines

Francisco Ferreira's picture

Is poverty absolute or relative? When we think of (one-dimensional) income poverty, should we define the threshold that separates the poor from the non-poor as the cost of purchasing a fixed basket of goods and services that allows people to meet their basic needs?  Or should we instead think of it as relative deprivation: as earning or consuming less than some given proportion of the country’s average living standard?

Can key facts statements outperform financial education?

Xavier Gine's picture

Now that the Nobel Committee has decided to award the prize once again for work in behavioral economics, it is a good time to study the role of disclosure formats for effective consumer protection.

We partnered with CONDUSEF, the financial consumer protection agency in Mexico, and the Superintendent of Banks in Peru to test which types of product disclosures work best for savings and credit products by low-income consumers in Peru and Mexico.

In a lab experiment, low-income consumers were assigned a financial needs profile—such as having to make two withdrawals per month from a savings accounts and two balance inquiries—and then incentivized to choose the product that best fit their needs. In each round of the experiment, we tested different methods for providing summary product information. In Mexico, we tested comparative tables; in Peru, we tested a key facts statement (KFS) designed by the financial institutions; and in both countries we tested.

Weekly links October 13: an anthropological rationale for randomization, what is Jholawala Economics?, changing norms, and more…

David McKenzie's picture
  • Another reason to justify random selection – Michael Schulson in Aeon “there are plenty of situations when random chance really is your best option. And those situations might be far more prevalent in our modern lives than we generally admit.” An interesting discussion drawing on anthropology of how different cultures have introduced randomness into decision-making, with the advantage being that it stops you using bad reasons for making decisions. “we might want to come to terms with the reality of our situation, which is that our lives are dominated by uncertainty, biases, subjective judgments and the vagaries of chance”
  • Maitreesh Ghatak reviews Jean Dreze’s new book “Sense and Solidarity - Jholawala Economics for Everyone”. See also this twitter thread by Abhijeet Singh on whether Dreze is underappreciated in development economics.

Landscape degradation: a world of landscape restoration opportunities

Paola Agostini's picture

This blog is part of a series using data from World Development Indicators to explore progress towards the Sustainable Development Goals and their associated targets. The new Atlas of Sustainable Development Goals 2017, published in April 2017, and the SDG Dashboard provide in-depth analyses of all 17 goals.

As global demand for food rises, the halting of landscape degradation and the restoration of these areas is paramount. Sustainable Development Goal 15 recognizes that efforts to restore degraded areas also benefit livelihoods and biodiversity by reducing erosion, supplying clean water, and providing wildlife habitat and other forest products (targets 15.1 and 15.3). Forests and trees also help mitigate climate change, enhance soil fertility, conserve soil moisture, and boost food production (target 15.3). A restored landscape may accommodate a range of land uses such as agriculture, protected reserves, ecological corridors, regenerated forests, well-managed plantations, agroforestry systems, and riparian plantings to protect waterways.

Landscape degradation directly affects 1.5 billion people, many of which live in extreme poverty.Around half of all land used globally for agriculture is moderately or severely affected by soil degradation[1].

Worldwide, nearly 25 million square kilometers offer opportunities for restoration, many in tropical and temperate areas. Nearly 18 million square kilometers would ideally combine forests and trees with other land uses through "mosaic restoration," including smallholder agriculture, agroforestry, and community forestry. A further 5 million square kilometers would be suitable for wide-scale restoration of closed forests. Africa provides the largest restoration opportunity, followed by Latin America (figure 15h).

The African Forest Landscape Restoration Initiative (AFR100)/TerrAfrica is a country-led effort to accelerate the restoration of 100 million hectares of land across the continent by 2030, in order to enhance food security, increase climate change resilience and mitigation, and combat rural poverty.

Bicycles can boost Bangladesh's exports

Nadeem Rizwan's picture
Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall
Bicycles are the largest export of Bangladesh’s engineering sector, contributing about 12 percent of engineering exports. Credit: World Bank
This blog is part of a series exploring new sources of competitiveness in Bangladesh

Did you know that Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall?

Bicycles are the largest export of Bangladesh’s engineering sector, contributing about 12 percent of engineering exports.
 
This performance is in large part due to the high anti-dumping duty imposed by the EU against China.
 
Recently, the EU Parliament and the Council agreed on EU Commission’s proposal on a new methodology for calculating anti-dumping on imports from countries with significant market distortions or pervasive state influence on the economy.
 
This decision could mean that the 48.5 percent anti-dumping duty for Chinese bicycles may not end in 2018 as originally intended. China is disputing the EU’s dumping rules at the World Trade Organization.
 
As the global bicycle market is expected to grow to $34.9 billion by 2022, Bangladesh has an opportunity to diversify its exports beyond readymade garments. Presently, Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall.
Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall
EU27 bicycle imports in 2016 (Million $). Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall. Source: UNComtrade through WITS

However, if the EU anti-dumping duty against China is reduced or lifted after 2018, Bangladesh’s price edge might be eroded.
 
Bangladeshi bicycle exporters estimate that without anti-dumping duties, Chinese bicycles could cost at least 10-20 percent less than Bangladeshi bicycles on European markets. And Chinese exporters can ship bicycles to the EU market with 35-50 percent shorter lead times.
 
So, how can Bangladeshi bicycles survive and grow?


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