... and the 4th of July - i.e. no work on Monday and BBQs and fireworks here in the US. For those of you abroad, here are some very safe fireworks. Enjoy the weekend!
IMF Chief Economist Raghuram Rajan and Arvind Subramanian, IMF Head of Macroeconomic Studies, just released a working paper returning to the contentious question of whether or not aid leads to growth. Entitled Aid and Growth: What Does the Cross-Country Evidence Really Show?, the paper finds no robust evidence linking the two. Additionally, the authors challenge the Burnside and Dollar claim that aid works best in good policy environments.
At last weeks US-Africa Business Summit in Baltimore, World Bank President Paul Wolfowitz stressed the important role that the private sector can play in Africa’s future development and growth:
In light of this week’s release of the 2005 African Development Indicators, here is an online quiz on Africa to test your knowledge.
A strong message which jumps out of the report are the strong and marked contrasts between the continent’s countries:
Lots of hype, started well, ended in disappointment – well maybe not officially, but at least that’s my view. Had heard great things about “The Girl in the Café” – the new HBO/BBC romantic comedy set in the upcoming G8 summit and packed with development economics and social commentary – and through the first 30 minutes everything was going fine. Then came the long unoriginal speeches and a focus on the lacking convictions of the delegates instead of the severity of the problem at hand.
The Economist has analyzed the most recent FDI data from the OECD and praises the increase in flows to emerging markets.
On the behalf of imagery, some words from Sebastian Mallaby:
“Some people fear the economic threat from China. Others fret about expensive oil. With the skill of an accomplished arsonist, China has now poured gas on the flames of these separate anxieties, turning two medium-size fires into a single inferno.”
The current edition of the Economist describes how recent bloody clashes between peasants and thugs highlight the problems with China’s ambiguous property right laws and the corruption that they fuel:
Everyone is talking about today's US Supreme Court decision allowing the seizure of private property for development purposes, as long as the seizure serves a “public use.” Justice Sandra Day O’Connor's dissention was quite strong: