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Gore Urges End to U.S. Fossil Fuel Power in Ten Years–Here’s How to Get America’s Working Families’ Support

July 21, 2008

By in Climate Change, Environment

In a landmark speech last week that deserved more attention than it received from the mainstream media, former U.S. vice president and Nobel Prize laureate Al Gore challenged the United States to produce 100% of its electricity from carbon-free renewable energy within 10 years. To help low-income and working families cope with the cost of the transition, Gore suggested cutting payroll taxes and making up the difference with CO2 taxes. Peter Orszag, director of the Congressional Budget Office (CBO), floated a similar idea earlier this month in a Washington Post op-ed. Citing recent CBO research, Orszag suggested that a direct payment system could offset increased energy costs and actually make lower-income households “financially better off because the rebate would be larger than the average increase in their spending on energy-intensive goods.”
CGD senior fellow David Wheeler takes these ideas an important step further in a fascinating new working paper: Why Warner-Lieberman Failed and How to Get America’s Working Families behind the Next Cap-and-Trade Bill. Many observers have attributed the Senate’s recent failure to pass the Warner-Lieberman cap-and-trade bill to global warming denial and disinformation campaigns by fossil energy companies. But, as Wheeler points out, public concern over global warming is now so widespread that other explanations are needed. Why didn’t more senators support the country’s first cap-and-trade bill?

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House Hearing to put World Bank Clean Tech Fund in the Spotlight

June 3, 2008

By in Global Development, Global Warming, Migration and Labor Mobility, World Bank, World Bank Clean Technology Fund Tags: , ,

Last week representatives of 40 countries meeting in Potsdam, Germany endorsed the World Bank’s proposal for a multi-billion-dollar Clean Technology Fund (CTF) to help developing countries meet their surging energy needs without accelerating climate change. The proposal is set to go to the Bank’s board in early July and senior bank officials say that they hope to raise at least $5.5 billion dollars for the CTF by the end of the year.

Done deal? Perhaps not. Although President Bush has pushed the idea as an alternative to mandatory cuts in greenhouse gases and pledged $2 billion as an initial three-year contribution, the U.S. Congress has yet to consider the project. A House Financial Services Committee hearing on the CTF this week is expected to focus on how exactly the money would be spent. Will it be used to help drive down the price of zero-carbon renewable energy, such as solar thermal power? Or does the bank propose to use it as merely another source of cash for business as usual, including such high-emission projects as coal-fired power?

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Be Careful What You Wish for: Fighting Corruption Is Good, But Not If It Means Stopping Development Assistance

May 15, 2008

By in Corruption, Governance/Democracy, United Nations, World Bank Tags: , ,

Senators Lugar and Bayh are again on the anticorruption warpath. Yesterday they issued a press release calling for “a Government Accounting Office (GAO) probe of the World Bank’s anticorruption efforts.” They want to make sure that the U.S.’s $950 million contribution to the International Development Association is not being “misspent and enriching corrupt foreign regimes.” Certainly sounds reasonable, but is this really the right focus for a review of World Bank operations? In the chapter I wrote (along with Ted Moran) for The White House and the World: A Global Development Agenda for the Next U.S. President, a forthcoming CGD publication, I argue that it is not. I make three points in the chapter that bear on the Lugar-Bayh proposal.

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The Other Surge: A Frontline View of Development in Iraq

April 9, 2008

By in Security and Development Tags:

dennis_iraq_armored_cars.jpg
As General David Petraeus and Ambassador Ryan Crocker struggle through a marathon round of appearances before various Congressional committees, the questions they face focus on security and the effects of the U.S.’s “surge” strategy. This is as it should be, given conditions in Iraq, but there is another “surge” that in many respects may be more important in answering the “when can we leave” question: efforts under way to get Iraq on a more conventional development path.

I have just returned from a remarkable three-week visit to Iraq, remarkable because I was privileged to see more of Iraq than all but a handful of visitors have been able to see. I was part of a team brought together by General Petraeus and Ambassador Crocker to take a fresh look at Iraq’s development efforts, most especially to see what more could be done that would support recent security gains by creating jobs and improving services.

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Giving Suharto His Due

January 29, 2008

By in Asia, Corruption, Global Education, Governance/Democracy, Regions Tags: , ,

I was of two minds as to whether or not to join in the analysis of Suharto’s legacy, but I decided that I cannot let stand some of what I have read about Suharto, Indonesia’s strongman president for 31 years, who died on Sunday at the age of 86. For those who don’t know me: I was the World Bank’s country director in Jakarta from 1994 to 1999. I was present during Indonesia’s financial crisis and when Suharto was forced out of office in May, 1998. I can’t say that Suharto and I were close, but I met him many times, and, to the extent that any outsider can ever really know a Javanese, I believe I knew something of what made him tick.
I have taken a good deal of grief over the years since I left Indonesia as an apologist for Suharto. Why? Because I have argued that the bad that he did — and some of it was horrific — should be balanced against the good, not for the sake of Suharto but for the sake of development. To see Suharto as just another corrupt dictator is to risk losing the lessons from one of the great development success stories of all times.

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High Level Panel on Reform of the African Development Bank Gets It Mostly Right — But Falters on Executive Board

January 22, 2008

By in Africa, Regions Tags:

Today, the High Level Panel (hereafter the HLP) on the future of the African Development Bank (AfDB), chaired by Joachim Chissano and Paul Martin, released its report, Investing in Africa’s Future: The ADB in the 21st Century. As regular visitors to this website will know, CGD has also issued a report on the future of the AfDB, Building Africa’s Development Bank (9/7/2006), the output of a working group process that Todd Moss managed and I chaired. I’m puzzled that the HLP report does not mention CGD’s earlier contribution to this debate, since I’ve been told on good authority that they found it useful. Be that as it may, there are some interesting differences between the two reports — as well as agreement on most of the most important of the recommendations.

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Folsom’s Departure Creates Opening to Fix The World Bank Fight Against Corruption

January 17, 2008

By in Asia, Corruption, Global Education, Governance/Democracy, World Bank Tags: , ,

Suzanne Rich Folsom, the controversial head of the World Bank’s internal anti-corruption unit, resigned yesterday to return to the private sector. With Ms. Folsom’s departure almost all of Paul Wolfowitz’s inner circle has now left the Bank. I expect that some of the Bank’s critics will cast this turn of events as victory of the bank bureaucracy over the forces of good in a fight for truth, justice, the American way, and, most especially, zero corruption. This would be an unfortunate misrepresentation of reality.

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Bring Back Nuhu Ribadu: Nigeria’s Dedicated Corruption Fighter

January 2, 2008

By in Africa, Corruption, Governance/Democracy, Regions, United Nations Tags: , ,

DAKAR, Senegal: Nigeria’s anti-corruption chief, whose investigations have ensnared some of the country’s wealthiest politicians and officials, will be sent to a year-long training course in a remote police academy, according to senior law enforcement officials in Nigeria, in what many analysts and anti-corruption activists say is an attempt to sideline him.
The country’s top police official, Mike Okiro, said Thursday that the decision to send Nuhu Ribadu, a police investigator who rose to become one of the most powerful and feared figures in Nigeria, to study for a year was not an effort to push him aside but part of a routine training exercise for senior police officials. (International Herald Tribune, Dec. 29)

Nuhu Ribadu visited CGD last October, while he was still the executive chairman of Nigeria’s Economic and Financial Crimes Commission (EFCC). For an hour and a half he held a room full of hardened development types spellbound. He came across as articulate, professional, extraordinarily committed…and incredibly brave. He talked of taking on Nigeria’s corruption kingpins, of how he was determined to show that no one, no matter how powerful, how well-connected, was above the law. But unlike most of us, Nuhu did more than talk. He acted. As we left the room at the end of his presentation, I remember wondering to a colleague how long Nuhu would last. We now have the answer: as of end 2007, Nuhu Ribadu is no longer the executive chairman of Nigeria’s top anti-corruption body.

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A Record IDA Replenishment: Now the Real Work Starts

December 17, 2007

By in Global Development, World Bank Tags: , ,

Last week was a good week for the world’s poor countries. It was also a good week for multilateralism and for Bob Zoellick, the World Bank’s president. The rich country governments that support the International Development Association or IDA, the World Bank’s concessional window, pledged a record $41.6 billion for IDA’s 15th replenishment, a 30% increase over the 14th replenishment. Even more startling, the UK upped its contribution by a whopping 49% to overtake the US as IDA’s largest contributor.

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Reintegrating Child And Adult Soldiers: A Change Of Plans

November 26, 2007

By in Child Soldiers, Migration and Labor Mobility Tags:

Child Soldiers What is a country to do with thousands of young rebel fighters, wives, and children returning from an unpopular war? The question is one that has been faced by dozens of developing countries, and is currently confronting several more. More often than not, the answer has been to provide ex-fighters with goods, cash support, and promises of services, such as vocational training. This approach has been fraught with challenges and controversy. Are such packages the best path to peace and development? Are perpetrators to be rewarded over victims? Are (mostly male) fighters to receive benefits over (mostly female) wives and support staff? Are unconditional cash handouts appropriate for child and adolescent fighters? In a new research brief, we say no.

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AFRICOM: Can The Military Make Foreign Aid More Effective And Win Hearts And Minds?

November 8, 2007

By in Africa, Foreign Aid Reform, Fragile States, Regions, Security and Development, Weak and Fragile States Tags: , ,

Robert Kaplan of The Coming Anarchy fame (how scarcity, crime, overpopulation, tribalism, and disease are rapidly destroying the social fabric of the planet, especially Africa) has a new short piece in The Atlantic on the US military’s development of a central Africa Command, or AFRICOM.
Kaplan, like AFRICOM’s sponsors, sees it as a basis for launching anti-terrorism operations, for promoting of good governance abroad, and (most significantly) for civilian-military cooperation in foreign aid. Such civil-military coordination in aid, it is argued, brings at least two key benefits: coordination of foreign policy goals and investments, and military expertise in logistics and security.

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Foreign Aid: Diagnosis without Direction

October 1, 2007

By in Aid Effectiveness, Foreign Aid Reform, Global Development Tags: , , , ,

In a recent review of William Easterly’s The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good, published in the SAIS Review, CGD president Nancy Birdsall applauds Easterly’s diagnosis of the problem with foreign aid: donors favor big, comprehensive, visible projects rather than trying to solve narrow, immediate problems. Easterly proposes a two-fold solution: remodel the entire system to raise accountability and refocus aid toward smaller, specialized programs. Birdsall argues against reinventing the entire aid system, in place of reforming aspects of it to resemble Easterly’s model.

Read the review

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CGD Ideas and the Clinton Global Initiative

September 27, 2007

By in Asia, Climate Change, Environment, Global Education, Global Health, Global Health Policy, Migration, Migration and Labor Mobility

Bill ClintonWednesday kicked off the 2007 Clinton Global Initiative in New York, where the development poverati mingle with the holders of the global purse-strings to “match people with ideas and those who have the means to see them through.” Building on Bill Clinton’s philosophy of giving (Atlantic Monthly subscription required), this year’s areas of focus—education, energy & climate change, global health, and poverty alleviation—are all near and dear to our hearts at CGD, and it is encouraging to see them take center stage at such a high-profile event; in fact, many of the specific topics under discussion are closely tied to work currently being undertaken by my colleagues here, including:

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Grain Prices Are Rising. Blame it on the Middle Class?

September 17, 2007

By in Global Development, Uncategorized

Can the growth of the middle class lower living standards for those who stay poor? The answer might be yes if people use their increased income to buy more of a good important to the poor, such as food or housing; prices may increase as a result, decreasing what the poor can afford to buy. In the case of rising grain prices, which had previously been in decline for decades, demand for biofuels has gotten most of the rap; but a recent Newsweek article, “Blame it on Biofuels”, suggested the growing middle class in emerging markets like China may be a more important reason:

Perhaps the most significant factor is rising wealth, particularly in the developing world. Since 2002, the combined GDP of the 24 largest emerging markets has doubled…As families get richer, they can more regularly indulge in meat and dairy products …The good news may be that more poor people will get rich enough to buy corn anyway.

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Bill Easterly and Development

August 13, 2007

By in Foreign Aid Reform Tags:

Bill Easterly, in a recent Foreign Policy article, The Ideology of Development (subscription required), writes ominously that “a dark ideological specter in haunting the world,” one in which “unelected outsiders imposing rigid doctrines on the xenophobic unwilling” and “favors collective goals such as national poverty reduction, national economic growth, and the global Millennium Development Goals, over the aspirations of individuals.” He concludes that “Development ideology has a dismal record of helping any country actually develop.” And finally that, “the only ‘answer’ to poverty reduction is freedom from being told the answer.”

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Al Harberger, Labor, and Capital in Latin America: Did the Washington Consensus have it right?

August 13, 2007

By in Global Development, Latin America, Microfinance, Migration and Labor Mobility Tags:

Arnold “Al” Harberger came to Washington and to CGD on Friday. For those readers who don’t know, Al is, among other things, known as the father of the “Chicago Boys” — young economists from Chile and elsewhere in Latin America who trained at the University of Chicago in the 1970s and returned to lead the reform of their countries’ economies. Al is also a long-time advisor to governments around the world, especially in Latin America, where he is universally known as “Alito,” and a teacher in all the best economic departments. Harberger is also a professor at the University of California Los Angeles (UCLA) and chief economist at USAID.

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Phase Zero: The Pentagon’s latest big idea

July 20, 2007

By in Africa, Aid Effectiveness, Fragile States, Global Health, Regions, Security and Development, U.S. Foreign Aid Reform, Weak and Fragile States Tags: ,

A new term has entered the national security lexicon, courtesy of the Pentagon. It’s “Phase Zero.” And it has some potentially troubling implications for U.S. foreign and development policy, particularly in Africa. Unfortunately, the concept isn’t getting the attention that it deserves.
US Africa Command Pentagon MapThe Defense Department (DoD) spends countless hours drafting plans for potential wars. Each plan outlines specific missions and military requirements for discrete phases of war, from the run-up to hostilities (Phase 1), to the onset of military action (Phase 2), to major combat (Phase 3), to “post-conflict” stabilization (Phase 4), and then to the shift to civilian control (Phase 5).
More recently, the Pentagon got the idea that greater military attention to pre-conflict situations-preventive action-could pay huge dividends, by making it unnecessary to use U.S. troops around the world.
That’s where Phase Zero comes in. It implies that America’s far-flung Regional Combatant Commands have a new military mission-eliminating the roots of instability and terrorism in the world’s most dysfunctional countries.

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IMF Announces Process and Profile for New Managing Director–World Bank Looks Stodgy By Comparison

July 16, 2007

By in Debt Relief, International Monetary Fund, World Bank Tags:

Last Friday the IMF board announced that it would accept nominations to replace Rodrigo de Rato as the next Managing Director until August 31, a first and essential step in opening up the process of selecting the IMF leader. The board also announced the skills and qualities it seeks in the next Managing Director:

The IMF Executive Board has decided to adopt a process for selecting a successor to the current Managing Director, Rodrigo de Rato, by establishing a candidate profile and a selection procedure for the next Managing Director. Specifically:
The successful candidate for the position of Managing Director will have a distinguished record in economic policymaking at senior levels. He or she will have an outstanding professional background, will have demonstrated the managerial and diplomatic skills needed to lead a global institution, and will be a national of any of the Fund’s 185 members.

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Macroeconomics and the MDGs

July 6, 2007

By in Debt Relief, International Monetary Fund, Millennium Development Goals Tags: ,

While participating in an interesting and thoughtful eDiscussion organized by the UNDP on Securing Fiscal space for the MDGs, I was struck by how much different approaches to the issue-say between the IMF and the UNDP-are driven by different implicit assumptions about the likely effectiveness of additional spending. Whatever you think about the usefulness of the MDGs as the basis for organizing a development strategy (see Michael Clemens’ blog for a skeptical view) , how to manage the macro-fiscal challenges of scaling-up spending to meet social objectives is highly contentious. The IMF role, in particular, has been criticized by many.

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More Change on 19th Street: Rodrigo de Rato Leaves the IMF

June 29, 2007

By in Debt Relief, International Monetary Fund

Rodrigo de Rato’s announcement Thursday that he will step down as Managing Director at the IMF following the Fund and World Bank annual meetings in October took almost everyone by surprise (see Washington Post article). The timing was especially puzzling, as the announcement comes just as much of Mr. de Rato’s reform agenda is moving from concept to reality. Mr. de Rato’s aggressive pursuit of reforms at the Fund, both its governance and its substantive focus, has been a pleasant surprise to those who worried about just what he would bring to the IMF when he first took office. (Read more about CGD’s July 2006 event, Renewing the IMF’s Commitment to Low-Income Countries, with Rodrigo de Rato on reforming the IMF’s commitment to low-income countries.)

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