2nd Exam Flashcards

Question

Moyo

Answer 1

Dead Aid 2009 Why aid isn't working people don't value things you give for free

Answer 2

Comparative Advantage – can trade for manufactured goods which would cost more for poor countries to produce Specialisation means you can scale up More product variety for consumer Improves quality to international standard Importing helps advance production Technology/ Knowledge transfer

Answer 3

Manufactured products are generally elastic, whilst primary goods are inelastic A richer market disproportionally benefits manufactured goods Causes urbanisation, with small farmers having to sell land to big farmers Cultural homogenization Efficiency can be bad for the environment like use of pesticides Cutting costs can mean cutting work conditions

Answer 4

If the poor are net consumers of imported goods they benefit from tariff cuts and imported food is cheaper If they are net producers, they lose out as food is cheaper than the producer If industries fight against industries which requires credit, insurance technology then people can’t compete with imported goods If a country export labour-intensive goods, wages should increase If they export less labour-intensive goods wages decrease or people become unemployed

Answer 5

An “infant industry” is a newly established industry that is (as yet) unable to compete on international markets → relatively high price for these goods The argument is that established industries are more efficient, at least in part, due to having acquired “learning by doing” Protection of infant industries expands production, which, via learning by doing, lowers unit costs and prices → potential for developing comparative advantage Once they “grow up”, barriers are to be removed to allow these to become export sectors. Provides the basis of the “import substitution” approach.

Answer 6

Industries can rely on protection that they do not need to improve quality because they have monopoly of national market Investment can only come from profit No-incentive to cut prices Nation is left behind the rest of the world in that product Brazil No Competition = Low Quality Sometimes other industries just thrive instead – Portugal cigarette lighter became cheaper than protected matches

Answer 7

Reputation effects less important in developing country markets Common standards for quality certifications – less high standards Gains from economic integration

Answer 8

Tariff and non-tariff barriers erected by rich countries are a major impediment to developing counties exports These are especially high in markets for primary sector goods in the EU and NAFTA WTO round have been ineffective in reducing such barriers: Doha round stalled over right countries reluctance in reducing barriers to developing world exports Could resistance against rich countries’ protectionism be, a fair target for globalisation discontents?

Answer 9

Banerjee 2006 Free trade and globalisation can harm poor countries, but we should be focusing on making those countries better at implementing the appropriate policies rather than focusing on the bad trade is doing. YES, WTO should be doing more to help provide the infrastructure and institutions to deal with the impacts of globalisation, but each Nation must do also and if a nation doesn’t have the ability to deal with the impacts of globalisation, it is dangerous to open up to trade without any provision

Answer 10

2006 Free trade and globalisation can harm poor countries, but we should be focusing on making those countries better at implementing the appropriate policies rather than focusing on the bad trade is doing. YES, WTO should be doing more to help provide the infrastructure and institutions to deal with the impacts of globalisation, but each Nation must do also and if a nation doesn’t have the ability to deal with the impacts of globalisation, it is dangerous to open up to trade without any provision

Answer 11

Winters 2009

Answer 12

2009 | Free Trade raises income but doesn’t better inequality

Answer 13

Rodrik 1994

Answer 14

Vledder, et. al 2011 Zambia – a lot of health facilities were running out of drugs- randomised trial tried two systems A- one where drugs were distributed at district level and requested by health facilities B- the other whether drugs were sent in anticipation of how many would be needed The impact was larger after B, so this was scaled up and drastically minimised the severity of diseases like malaria

Answer 15

2011 Zambia – a lot of health facilities were running out of drugs- randomised trial tried two systems A- one where drugs were distributed at district level and requested by health facilities B- the other whether drugs were sent in anticipation of how many would be needed The impact was larger after B, so this was scaled up and drastically minimised the severity of diseases like malaria

Answer 16

Mexico- Progresa 1997 – conditional cash transfer to mothers as long as they ensured their kids went to school and got vaccination Evidence showed it was able to improve child health and education 2000 election change of government and wanted to get rid Rigorous impact evaluation convinced the government to keep it (changing the name to oportunidades) and similar programmes have been replicated worldwide

Answer 17

Duflo Ted 2010 Knowledge for change FUnding Accountability

Answer 18

2010 | reasons to care about impact evaluation

Answer 19

Experimental design Randomised evaluations Non-experimental methods – compares individuals exposed to an intervention with others not exposed to it under a set of untestable assumption – if assumptions fail then the evaluation does also Regression discontinuity design Matching Difference in differences and several others

Answer 20

De-worm the World initiative: now active in 27 countries from the success in Kenya Hilary Clinton – Global Alliance for Clean Stoves: pledge to provide 100 Million clean stoves in developing countries

Answer 21

Duflo & Kremer (2008) and Banerjee is 2012 debate Precise, accurate and look simple in policy circles Not much costlier than those who also require data collection You can control all potential confounders, observable and not In a better position for funding, accountability, and knowledge Shows the extent under which results reflect implementation, not external factors NGOS are well suited to do RCTs, rather than governments – this avoid political bias Much of its limitation are true of competing methodologies Less prone to publication bias, with publishers open-mined about RCTs Can be combined amongst other evidence to prove the data is not context specific

Answer 22

FOR: Duflo & Kremer (2008), Banerjee (2012 debate) AGAINST: Ravallion (2009), Deaton (2012 debate)

Answer 23

2008 for RCTs

Answer 24

2009 against RCTs

Answer 25

AGAINST: Ravallion (2009), Deaton (2012 debate) Many things you might want to find out are infeasible, like whether to build a bridge or not Only short-term impacts because you can’t make the control group wait forever Conditional randomisation can introduce bias – poor are the beneficiaries = sample bias Individuals on programmes may be self-selecting on the basis of unobserved gains External validity -only relevant for specific context Slightly more expensive Intervention can harm people Unethical- control group are denied benefits May need high number for sample,