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State Institutions

Chapter 4: Case studies on Bangladesh and Mozambique

The Institutional Diagnostic Project case study on Bangladesh and Mozambique is an attempt to explain the paradox of sustainability of the former and the disappointed hopes of the growth of the latter.

Case Studies Synthesis (RA4)

This presentation reviews and summaries results from research done under RA4 research theme of our programme.

Institutional Diagnostic Synthesis (RA2)- Presentation

Outline of the presentation Objective, methodology and development of the project The synthesis volume and concluding chapters a) Identifying obstacles to development: economic perspective b) Identifying institutional obstacles: the role of politics c) Identifying institutional obstacles: state capacity and property…

Appraising institutional challenges in the early stages of development- Chapter 10: Conclusion

Two central lessons can be drawn from the foregoing analysis. First, many institutional failures are traceable to the way politics functions. Therefore, any diagnosis or understanding of the impediments to a country’s long-term development that overlooks the country’s political economy…

Chapter 9: Identifying institutional obstacles to structural transformation: state capacity and property rights

After having examined the role of politics (in last chapter) in spurring or slowing down structural transformation and development, we are now ready to probe the issue of state capacity. This will complete our discussion of the role of governance-related…

Chapter 8: Identifying institutional obstacles to structural transformation: the role of politics

In this chapter, the focus is on issues that involve politics. More specifically, we look at the role of political leadership and state autonomy in development. The institutions involved determine the quality of governance in a country, but they are…

Chapter 6: Taiwan’s development miracle

There are several reasons why development scholars should be interested in the case of Taiwan. As one author has written: ‘It once had a single dominant party following the Leninist model; it now has a competitive multiparty system. It was…

Chapter 5: South Korea in the early days of its takeoff

‘What would have been the conclusion of an institutional diagnostic of the development potential of South Korea conducted in the mid- or late-1970s, at a time when the country was still a low-income country, at roughly the same income level…

Chapter 3: Case studies on Benin and Tanzania

There are several reasons why Benin is an interesting country to study, and some of them have no doubt contributed to making it an aid darling for many donors. First, although it is made up of an extraordinarily varied mosaic…

Appraising institutional challenges in the early stages of development: Introduction to part 2

At the core of the institutional diagnostic project is the idea that we can gain more knowledge about the role of institutions by undertaking in-depth country case studies than by carrying out broad quantitative exercises based on a large sample…

Chapter 2: Methodological framework for an institutional diagnostic

The preceding chapter defined the objective of the institutional diagnostics of each particular country and made explicit the concepts and analytical principles that need to be mobilised in order to conduct such an exercise. By providing a short description of…

Chapter 1: Institutions and institutional change: concepts and theories

The ‘institutions matter’ slogan appears today as a fundamental truth about development. Widely shared by the development community, including international organisations, it goes with the idea that the benefits of both market operations and state interventions are significantly conditioned by…

Appraising institutional challenges in the early stages of development

If there is absolutely no doubt that institutions matter for development, and for development policies and strategies in the first place, the crucial issue is knowing how they matter. After all, impressive economic development achievements have been observed despite the…

Devolution under Autocracies: Evidence from Pakistan

Authoritarian regimes often direct the course of electoral politics in ways that allow them to concentrate and consolidate power (Geddes, 1999; Svolik, 2012; Gandhi and Przeworski, 2007; Gandhi, 2015). While a growing body of literature has devoted attention to studying…

Formal and Informal Institutions in Development: Contexts, Resistance, and Leverage

This synthesis paper draws together the salient elements emerging from the RA4 case studies research, and from three thematic synthesis papers written by members of the RA4 Scientific Committee, Jean Marie Baland and Catherine Guirkinger, Dilip Mookherjee, and Christopher Woodruff….

Research on State, Bureaucracy, and Judiciary: A Synthesis

The state, bureaucracy, and judiciary synthesis paper finds that the research conducted under this theme makes an important contribution to the literature discussing the issue that formal institutions cannot be created at will, and that they require a suitable cultural…

Teacher Rotation and Student Outcomes: Experimental Evidence from Uganda- Working paper

This report summarizes an ongoing study of the effect of teacher rotation on student outcomes in Uganda. In the status quo, teachers are transferred (“rotated”) across schools at the discretion of district authorities. In randomized treatment schools, we incentivize teachers…

Hometown Networks, Private Entrepreneurship and Exporting in China

We document the following dissimilarity between patterns of selection into entrepreneurship and into exporting among Chinese entrepreneurs. Birth counties with higher population density (PD) exhibited higher levels and growth of entrepreneurship, but a lower fraction of active entrepreneurs were engaged…

How to target enforcement at scale? Evidence from tax audits in senegal

Developing economies are characterized by limited compliance with government regulation, such as taxation. Resources for enforcement are scarce, but the increasing availability of digitized data and data processing technologies have the potential to improve the targeting of enforcement. Levering an…

MOZAMBIQUE INSTITUTIONAL DIAGNOSTIC: CHAPTER 9

MOZAMBIQUE INSTITUTIONAL DIAGNOSTIC Chapter 9: The saga and limits of public financial management: The Mozambican case Abstract: At independence in 1975, the Frelimo government took over public administration from the colonial system and started to transform it. The public financial…

MOZAMBIQUE INSTITUTIONAL DIAGNOSTIC: CHAPTER 4

MOZAMBIQUE INSTITUTIONAL DIAGNOSTIC Chapter 4. The relative neglect of agriculture in Mozambique Abstract: This paper explores agricultural performance of Mozambique, its institutional weaknesses, and the underlying factors that underpin an unsatisfactory performance during many decades. We point to the role…

Updating the state: information acquisition costs and public benefit delivery

In a field experiment spanning the entirety of two Indian states, we randomized bureaucrats’ access to a mobile phone based e-management platform for India’s flagship workfare program. We randomized which levels of the administrative hierarchy received access to the app,…

Public trust, policing, and the COVID-19 pandemic: Evidence from an electoral authoritarian regime

We examine how trust shapes compliance with public health restrictions during the COVID-19 pandemic in Uganda. We use an endorsement experiment embedded in a mobile phone survey to show that messages from government officials generate more support for public health…

Age sets and accountability

Abstract: This document is the second of two progress reports that provide an overview of the progress made on the DFID RA4 project “Social structures, political accountability, and effective public goods provision.” Our study is interested in better understanding how…

Recruitment, effort, and retention effects of performance contracts for civil servants: Experimental evidence from Rwandan primary schools

Abstract: This paper reports on a two-tiered experiment designed to separately identify the selection and effort margins of pay-for-performance (P4P). At the recruitment stage, teacher labor markets were randomly assigned to a pay-for-percentile or fixed-wage contract. Once recruits were placed,…

Promoting accountability in public projects: donors, audits, and rural electrification

Abstract: International donors and governments require contracting mechanisms that provide accountability in order to mitigate leakage and corruption in public infrastructure projects, especially when construction is outsourced to private sector contractors. This is an important goal because low-income countries spend…

Gang rule: understanding and countering criminal governance

Abstract: Gangs govern millions worldwide. Why rule, and how do they respond to states? Many argue that criminal rule provides protection when states do not, and that increasing state services could crowd gangs out. We began by interviewing leaders from…

Do police-community meetings work? Experimental evidence from Medellín

In early September, 2020, ten days before the deadline for revisions to this volume, Colombians participated in the biggest anti-police protests in decades. Like the protests that swept the United States just months earlier, they were sparked by the heinous…

Measuring the potential for property taxation in Dakar, Senegal

Abstract: Property taxes are in theory easy to enforce in their simplest form due to their tangible tax base, and are considered an equitable means to raise revenue in low-income countries. In spite of these features, African countries, where cities…

Restoring Police/Community Relations in Uganda

Reducing crime and improving personal and communal security are crucial policy goals. The task of achieving these goals naturally falls first and foremost on a country’s police force.There is a widespread consensus that police forces are most effective in preventing…

Can training improve organisational culture?

Experimental evidence from Ghana’s civil service Abstract: Organizational culture is an important driver of organizational performance, but evidence on how to improve performance-oriented organizational cultures is scarce – especially in the public sector. We partnered with Ghana’s Civil Service to…

Mozambique Institutional Diagnostic: Chapter 11

Mozambique Institutional Diagnostic Chapter 11: Donor relations and sovereignty Abstract: As a sovereign country, Mozambique initially relied on international solidarity and managed its donor relations well. Donor dependency entailed some loss of agency for the government as it allowed donors…

Mozambique Institutional Diagnostic: Chapter 8

Mozambique Institutional Diagnostic Chapter 8: Decentralization reforms in Mozambique The role of institutions in the definition of results Abstract: With the introduction of the economic reforms in the late 1980s, the opening up of the political arena and the end…

Mozambique Institutional Diagnostic: Chapter 7

Mozambique Institutional Diagnostic Chapter 7: Health, development, and institutional factors The Mozambique case Abstract: The central aim of this text is to show the impact institutions have on the performance of the health sector in Mozambique. The text shows that…

Mozambique Institutional Diagnostic: Chapter 6

Mozambique Institutional Diagnostic Chapter 6: The education sector in Mozambique From access to epistemic quality in primary education Abstract: From the early days of national independence in 1975, the central aim of the educational policy in Mozambique has been to…

Religion, Politics, and Judicial Independence: Theory and Evidence

Abstract: Most enlightenment philosophers argued that the separation between Church and State would prevent capture of resources by one state religion. We formalize and test a theory that addresses a different danger. We demonstrate that a reduction in the separation…

Bangladesh Institutional Diagnostic – Chapter 8

Bangladesh Institutional Diagnostic Chapter 8: Institutional challenges in public spending: the case of primary education Chapter overview: List of figures Introduction The importance of education (primary education) for development in Bangladesh The primary education sector in Bangladesh: basic performance Challenges…

Bangladesh Institutional Diagnostic – Chapter 7

Bangladesh Institutional Diagnostic Chapter 7: Institutional dimensions of tax reforms in Bangladesh Chapter Overview List of tables and figures Development context The public resource mobilisation challenge Main objectives, methodology, and approach of the chapter Tax mobilisation issues in developing countries:…

Financial Incentives in Multi-Layered Organisations: An Experiment in the Public Sector

Empirical Evidence from the Community Health Worker Program in Sierra Leone Authors:  Erika Deserranno, Northwestern University, and Philipp Kastrau and Gianmarco León-Ciliotta, Universitat Pompeu Fabra Introduction:  Poor performance of frontline service providers (e.g., teachers, health workers, tax collectors) has generated…

Red Tape? The Revenue Impact of the VAT Filing Thresholds

Value-added tax systems across the world are afflicted with size-dependent regulations.The benefit of such regulations to the tax authority is unclear. In this paper, we use an administrative dataset from the state of Delhi in India to first show that…

Research Insight: Military and Clerics in Muslim Autocracies

This research elucidates the willingness of an autocrat to push through institutional reforms in a context where traditional authorities represented by religious clerics are averse to them and where the military control the means of repression and can potentially make…

Power for the People: how should governments develop electric grids?

More than a billion people currently live without access to electricity in their homes. As policymakers push for increased electricity access, Susanna Berkouwer (University of California, Berkley) examines the work EDI is doing to answer the key question: how can…

The Quran and the Sword – the Strategic Game between Autocratic Power, the Military And the Clerics

This paper elucidates the willingness of an autocrat to push through institutional reforms in a context where traditional authorities represented by religious clerics are averse to them and where the military, who have their own preferences about reforms, control the…

Innovation, Voice and Hierarchy in the Public Sector: Evidence from Ghana’s Civil Service

Abstract: Research on innovation in government often focuses on ideas introduced by senior leaders or managers, but ideas from public servants themselves are an important and underexplored channel for improving performance in government bureaucracies. We provide new evidence on the…

Introduction to the Benin Institutional Diagnostic

This introductory chapter the the Benin Institutional Diagnostic provides a contextual overview to the publication under five main topics: ‘Institutions matter’ How institutions matter in development policy today Searching for evidence on the quality of institutions and development Institutional diagnostic…

Policy Brief: Resource transfers to local governments (West Bengal)

This EDI Policy Brief provides an accessible summary of key insights and findings from research for a case study on “Discretion versus rule-based budgeting and assignment in Indian governments“. Clientelism and vote buying are commonly mentioned symptoms of poor governance in…

Event: “Sharing Solutions” – Improving management and accountability for public service delivery

Charity Moore from the Harvard Kennedy School presents research from a project on “USing digital trails to improve management and accountability for public service delivery in India.” Service delivery in development settings in hierarchical in nature, which can lead to…

Event: “Sharing Solutions” – Recruitment, effort and retention effects of performance contracts

Andrew Zeitlin from Georgetown University presents his research on the compositional consequences of performance pay in the education sector in Rwanda. H notes that in developing country education there is tremendous variation in teacher quality and internationally, these differences have…

Event: “Sharing Solutions” – Performance-based incentives in multi-layered organizations

Gianmarco León on pay-for-performance (P4P), which has been shown to be effective in job performance in both private and public organizations. The research examines how incentives affect performance when they are implemented across multiple layers of an organization – from…

Event: “Sharing Solutions” – Credit and land titling in Uganda

Michael O’ Sullivan from the World Bank presents research on “Relaxing credit constraints and tenure insecurity in imperfect markets.” The project motivation arises from recognition that in the absence of well-functioning markets for land, credit and insurance, farming households are…

Tanzania Institutional Diagnostic – Synthesis

Tanzania Institutional Diagnostic Chapter 8: Synthesis This chapter provides a synthesis of information and arguments developed in the first seven chapters of the Tanzania Institutional Diagnostic. Chapter outline Part 1.  The basic institutional constraints on Tanzanian development The main challenges…

Tanzania Institutional Diagnostic – Chapter 1

Tanzania Institutional Diagnostic Chapter 1: Reflections on the political and economic development of Tanzania Chapter outline A short account of the political history of Tanzania The colonial era The German colonisation The British mandate on Tanganyika Independence Forging a nation: the…

Tanzania Institutional Diagnostic – Introduction chapter

François Bourguignon and Sam Wangwe provide an introduction to the analysis produced for the Tanzania Institutional Diagnostic. The authors outline three approaches have been developed to identify the institutional factors hindering development or ways of remedying specific factors: historical case studies;…

State of science: Institutions, state capabilities and development

A presentation by Ernesto Dal Bó and Federico Finan, University of California, Berkeley This presentation was part of the convening event hosted by CEGA at the University of California, Berkeley, in August 2018. Read a summary of the event.  

Can performance pay attract, motivate and retain better teachers?

A presentation by Andrew Zeitlin, Georgetown University This presentation was part of the convening event hosted by CEGA at the University of California, Berkeley, in August 2018. Read a summary of the event.

Relaxing credit and tenure security constraints

“Relaxing credit and tenure security constraints: Credit and land titling in Uganda” A presentation by Michael O’Sullivan (with contributions from Maitreesh Ghatak, Markus Goldstein, James Habyarimana, Joao Montalvao, Christopher Udry) This presentation was part of the convening event hosted by…

Political economy and governance of rural electrification

A presentation by Edward Miguel, University of California, Berkeley This presentation was part of the convening event hosted by CEGA at the University of California, Berkeley, in August 2018. Read a summary of the event.

Bringing property owners into the tax net

A presentation by Justine Knebelmann, Paris School of Economics This presentation was part of the convening event hosted by CEGA at the University of California, Berkeley, in August 2018. Read a summary of the event.

Improving management and accountability for public service delivery

“Using digital trails to improve management and accountability for public service delivery (India)” A presentation by Charity Moore, Harvard Kennedy School This presentation was part of the convening event hosted by CEGA at the University of California, Berkeley, in August…

Politician entry, selection and performance

A presentation by Kate Casey, Stanford GSB This presentation was part of the convening event hosted by CEGA at the University of California, Berkeley, in August 2018. Read a summary of the event.

Tax audits under weak fiscal capacity

A presentation by Pierre Bachas (World Bank Research) This presentation was part of the convening event hosted by CEGA at the University of California, Berkeley, in August 2018. Read a summary of the event.

Community Policing and Public Trust

A presentation by Eric Arias, William & Mary This presentation was part of the convening event hosted by CEGA at the University of California, Berkeley, in August 2018. Read a summary of the event.

Policy Brief: Female Employment and Aspirations for Children

Female Employment and Aspirations for Children: Evidence from Bangladesh’s Garment Industry This EDI Policy Brief provides insight into gender roles and aspirations for children among a sample of families involved with the Bangladeshi garment industry. It is based upon an…

Institutions, Development and Growth

Where does the evidence stand on institutions, development and growth? This paper explores the empirical evidence on institutions and growth. The empirical evidence on institutions ranges from historical studies to econometric analyses, with different studies making very different theoretical commitments…

Clientelistic politics and economic development – an overview

This paper provides an overview of the literature on political clientelism  and its relation to economic development. It starts by describing the range of mechanisms used by political operatives to monitor how specific voters vote in order to target clientelistic…

Justice for All? Assessing ‘What Works’ to Improve Women’s Access to Legal Services

A Policy Brief Prepared for the World Bank’s 2017 Law, Justice and Development Week October 2017. Economic inequalities divide men and women around the world. Women on average earn just 60-70% of what their male counterparts earn. They are less likely to participate…

The Dynamics of Family Systems: Lessons from Past and Present Times

This paper reviews the economic literature on how family systems respond to changes in resource endowments, outside economic opportunities, the development of markets, and surrounding institutions. On topics where economic contributions are scarce, we also provide insights from other disciplines,…

Institutions for Infrastructure in Developing Countries

The paper surveys the very heterogeneous economic literature on the scope and limits of efforts to match institutional constraints and needs, on the one hand, and infrastructure policy and project designs, on the other, to increase the odds of improving…

Finance, Institutions and Development: Literature Survey and Research Agenda

This paper takes stock of and provides a critical review of several literatures, notably the theoretical and empirical work on finance and growth and studies on the determinants of financial development. These two literatures are linked as the sustainable expansion…

Education, Institutions and Economic Development

A large share of children in low income countries learn little and complete their primary education lacking even basic reading, writing and arithmetic skills. We review the experimental literature on teacher effort, knowledge, and skills – areas we argue are…

Trade Related Institutions and Development

The paper focuses on the role played by Trade Related Institutions (TRIs) in shaping trade flows and their development impact in low income countries and how these TRIs are shaped by international trade. Three types of TRIs are examined: i)…

Foreign Aid and Governance: A survey

This paper surveys the literature on the two-way relationship between development aid and the quality of institutions in developing countries. Aid may improve institutions, e.g. when conditionality succeeds, but it can also have unintended effects that are typically negative, e.g….

Institutions, the environment, and development

Environmental problems may be classified by the scale of the relevant externalities. Some externalities are primarily local, for example, those concerning the management of resources like forests, pastures and inland fisheries, or local air and water pollution. Others are mainly regional…

Media as a Tool for Institutional Change in Development

This paper reviews the channels through which the media can be a tool of institutional development, building the argument in two parts. First I focus on the media as a tool for accountability: by providing information on candidates ex ante,…

At the Intersection: A Review of Institutions in Economic Development

We present accepted basic arguments on the role of institutions in development and then discuss the corresponding empirical evidence in support (or not) of those arguments. Methodologically, our emphasis is on experimental evidence wherever available, and thematically we focus on…

Spotlight on Conflict and Development

Joan Esteban (Institute for Economic Analysis) and Debraj Ray (New York University) explain how civil wars are the major impediments to growth, and offer three lessons from existing research. Watch our Spotlight on Conflict and Development below:

Spotlight on Migration and Institutions

Kaivan Munshi (University of Cambridge) explores how labour movements and development are linked, and provides insight into the role of policy around this area. Watch the video below for his overview:

Spotlight on Inequality and Institutions

Sam Bowles of the Santa Fe Institute explains how institutions are the rules of the game, that regulate how we interact with each other. “If we don’t understand how institutions work, we can’t possibly understand how economies change,” he says….

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