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Development Channel

The Development Channel highlights big debates, promising approaches, and new research and thinkers addressing opportunity and exclusion in the global economy.

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Mossack Fonseca law firm sign is pictured in Panama City, April 4, 2016.
Mossack Fonseca law firm sign is pictured in Panama City, April 4, 2016. Carlos Jasso/Reuters

Corruption Brief Series: How Anonymous Shell Companies Finance Insurgents, Criminals, and Dictators

The latest paper in the Corruption Brief series from the Civil Society, Markets, and Democracy program at the Council on Foreign Relations was published this month. In the brief, Dr. Jodi Vittori, senior policy advisor at Global Witness, addresses the myriad problems posed by anonymous shell companies – corporate entities with few or no employees and no substantive business, which offer a convenient way to privately move money through the international financial system.

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Americas
New From CFR: Shannon O’Neil on Foreign Direct Investment in Latin America
In 2012, Latin America received more foreign direct investment than ever before. In a recent blog post, Shannon O’Neil describes the implications of this investment. She explains: Foreign direct investment is not an unencumbered good—stories abound about foreign-owned companies flouting domestic laws, exploiting labor, and degrading the environment. But it remains an important and sought after tool for economic expansion…when focusing on economic development more broadly, not all money is created equal. Read her full post here.
Development
New From CFR: John Campell on “Scoring Africa”
In a recent blog post, John Campbell calls attention to a new infographic that compares African countries and serves as, “a great introductory tool to a host of African issues. It also provides a fascinating overview of the differences among the various African countries—and the differences within a single country.” Read his full post here.
Health
Emerging Voices: Lynn ElHarake on International Family Planning Efforts
Emerging Voices features contributions from scholars and practitioners highlighting new research, thinking, and approaches to development challenges. This article is by Lynn ElHarake, research associate for CFR’s Women and Foreign Policy Program. Here she discusses why Washington should support international family planning efforts. Today marks the seventh annual World Contraception Day – a campaign organized by a coalition of non-governmental, scientific, and medical organizations, which aims to raise awareness about the benefits of universal access to family planning tools. For the most part, Washington supports this cause: the United States has played a leading role in international family planning efforts for more than five decades and has provided roughly half of total donor funding for family planning in foreign countries. The United States Agency for International Development (USAID), which leads many international family planning efforts, launched its first family planning program in 1965 and has been enabling the distribution of contraceptives in developing countries since 1968. Today, USAID’s family planning programs operate in more than 50 countries around the world and have helped millions of women access the life-saving contraceptives they need to plan their pregnancies. Washington has much to gain from investing in international family planning programs. In their 2012 report, Adding It Up: Costs and Benefits of Contraceptive Services, the United Nations Population Fund (UNFPA) and the Guttmacher Institute estimated that adequate access to contraceptives in developing countries would prevent 54 million unintended pregnancies, 26 million abortions (16 million of which would be unsafe), 21 million unplanned births, and 7 million miscarriages. And the benefits of family planning extend beyond women. Universal access to contraceptives could prevent more than one million infant deaths, improve child nutrition and general health, and reduce the spread of HIV/AIDS. Furthermore, when a woman is able to plan pregnancy, she is more likely to stay in school, join the workforce, gain an income, and fulfill her potential as a productive citizen. Female education and employment help close the gender gap, spur economic growth, and stabilize societies. Expanding access to family planning could also save billions of dollars in global healthcare costs, freeing up resources for other health and development initiatives. And family planning programs could help curb worrying demographic trends in developing countries, where many weak economies and governments are not yet able to support burgeoning youth populations. The Obama administration has demonstrated a strong commitment to international family planning goals, increasing family planning funding by forty percent from 2008 to 2012. The Obama administration has also lifted funding restrictions on family planning programs and reissued funding to the UNFPA in 2009, which was suspended under the Reagan and both Bush administrations. Recognizing that access to family planning helps women live healthy and productive lives, the United States included family planning as a primary objective in its Global Health Initiative – a development strategy seeking “to achieve significant health improvements and foster sustainable, effective, efficient and country-led public health programs that deliver essential health care.” The United States also supports the aspirations of the 2012 London Summit on Family Planning, a global partnership committed to providing 120 million women in developing countries with reproductive health resources by 2020. In recent years, the United States and other countries have made family planning a global development priority. However it is likely that contraceptives and other modern methods of family planning will remain subjects of heated debate. Even though the United States has been a leader in the field for decades, the country’s policies on family planning are not always straightforward. Family planning funding has been historically controversial and executive branch support of international programs has been inconsistent. Therefore it is essential that U.S. policymakers are continually reminded of how universal access to family planning can further U.S. interests by improving the lives of women, growing economies, accomplishing international development goals, and securing stable societies worldwide.
  • Development
    What’s Next for Global Development?
    This week, the United Nations convenes its sixty-eight General Assembly session, bringing together heads of state and other high officials from all 193 members of the UN. Although many pressing global challenges crowd the agenda of world leaders, the major theme of this year’s session is the global development agenda after 2015, when the Millennium Development Goals (MDGs), which have guided global development policy since 2000, expire. In several earlier blog posts, I discussed issues that should be considered in crafting the new development agenda. Now the international community must come together to determine what comes next. Even though economic growth has brought wealth to many formerly poor countries such as China, India, and Brazil, over three billion people remain trapped in poverty worldwide.  The tragedy of poverty is not restricted to poor countries.  Indeed, many of the global poor live in rich or middle income countries, and have seen the fortunes of their neighbors rise, while they have been left out and left behind. Thus, the new post-2015 development agenda must address inequality as well as poverty, to ensure that average improvements do not mask intractable suffering, and to focus global attention on the challenges facing the most vulnerable. At the same time, there is an emerging global consensus that environmental sustainability should be a central development goal. The landmark Rio+20 conference on sustainable development, which took place in Rio de Janeiro, Brazil in June 2012, launched the drafting process of the Sustainable Development Goals (SDGs). The SDGs aim to build upon the MDGs, but with a clear commitment to safeguarding the environment for future generations. At a local level, environmental degradation threatens the resources and livelihoods of subsistence farmers and pastoralists; with rivers and forests polluted and misused, they have no way to make even a meager living. And at a global level, climate change caused by unsustainable fossil fuel use is increasingly generating unpredictable droughts and floods, which devastate the poor, and threatening small island nations with rising sea levels. The UN must forge a new development agenda that tackles these concerns regarding environmental sustainability and inequality, in addition to other issues such as rule of law, good governance, personal security, and human rights — all of which are both critical means for improving wellbeing, as well as important ends in and of themselves. The UN’s task is further complicated by the fact that many of the most potent tools in the fight against global poverty are outside the organization’s purview. Thanks to the integration of global markets, the rules governing the global economy are now some of most significant determinants of prosperity and poverty.  These economic rules influence property rights, capital markets and global financial flows, multinational banks and investors, and legal claims and mechanisms for redress – all of which have profound implications for the global poor. The UN recognizes the importance of these issues, but economic governance negotiations usually occur in intimate meetings between finance ministers, not showy events among foreign ministers. Still, the UN has the unique and crucial power to coordinate and solidify global development guidelines for the future. This coming week the General Assembly is holding six events on the theme “The Post-2015 Development Agenda: Setting the Stage,” including high-level events about women, youth, civil society, human rights, good governance, the rule of law, South-South cooperation, communications technologies, global partnerships, water, sanitation, and sustainable energy. Given that nearly half of the world’s population is still trapped in poverty, hopefully these meetings will be more than just rhetoric, and will bring the world one step closer to realizing sustainable and inclusive development.
  • Rule of Law
    Fighting Poverty with Land
    Emerging Voices features contributions from scholars and practitioners highlighting new research, thinking, and approaches to development challenges. This article is by Ashok Sircar and Tim Hanstad of Landesa, a global development non-profit that works to secure land rights for the world’s poor. Here they discuss how coordinating development projects can help lift families out of poverty. In 2005, our non-profit, Landesa, partnered with the government of West Bengal, a state in eastern India, to develop a micro-plot program. The goal was to provide hundreds of thousands of landless rural families with a plot of land about the size of a tennis court (one-tenth of an acre) – enough space to build a small hut and plant a kitchen garden. Our research and previous experience elsewhere led us to believe that this could help save families from extreme poverty and constant hunger. We expected that after our government partners provided land, these families would soon build their homes, start planting crops, and begin their newly improved lives. Some did. But others did not. After speaking with officials, farmers, beneficiaries, and those who had not yet benefited, we learned that obtaining land was an essential first step, but that some families needed more support in order to move forward. In particular, they needed help building hand pumps to obtain drinking water and toilets. That’s when we started working on what we now call our “convergence model.” National and state government agencies in India spend billions of dollars every year helping the rural poor. In West Bengal, there are organizations that provide land, work, food, housing, drinking water, sanitation, electricity, livestock, farming supplies, and many other goods and services. A poor family may need all or some of these benefits. The challenge we faced in West Bengal was that these benefits often did not come together, in the right order, or at the right time. There was no coordination of projects. After determining that a family needed to own land in order to qualify for most government benefits, we spoke with our government partners about better coordination with the micro-plot program. The program, we thought, could begin a cascade of support and services. In theory, the plan was simple. In reality, it was not; each government support program had its own guidelines, funding mechanisms, bureaucracy, quotas, target populations, and waiting list of candidates. Nevertheless, all of the implementing agencies eventually agreed to collaborate and formulated a new model: a location-based development plan, focused on land. We tested out the new model in Bagda, a small village near the Bangladesh border where officials and local leaders agreed to coordinate aid to seventy-five families who had recently received land. These families previously lived on the margins, squatting on government land for years after losing their homes in a flood in 2000. First, our government partners provided each family with a small plot. Then the Total Sanitation Campaign Fund provided simple sanitation hookups, Rajiv Gandhi Drinking Water Mission provided water, and Rajiv Gandhi Rural Electrification Program provided electricity, the Indian government’s national rural housing program provided small grants to help the families to buy homemaking materials, and the Agriculture-Horticulture Department provided government-subsidized seeds and saplings. The total cost was about $1,000 per family. Over time, families invested $90-$300 of their own money in purchases such as livestock, animal sheds, and saplings. They finally had the security, opportunity, and incentive to climb out of extreme poverty. Spurred by its success, governments in eleven districts across West Bengal began following this model. Today, more than 4,300 formerly landless families have started new and productive lives on their micro-plots. The cost is one that the government was already investing, but in a less coordinated and effective way. We learned that once families have what they cannot provide themselves, they do the rest by the sweat of their brow. They invest in the land, become environmental stewards, provide their children with nutritious food, and pay school fees. More than 450,000 people in eleven Indian states have now received micro-plots. It seems all they needed to climb out of poverty were the right tools at the right time.