Globalisation forces all countries to become more competitive by shifting capital and labour to new economic sectors. However, while it is widely accepted today that proactive industrial policies are needed for such structural change, there is disagreement to what extent low and middle-income countries are also able to design and implement such policies without ending up with perverse incentives for investors and bureaucrats, the creation of rents and less allocative efficiency. This discussion paper looks at the experience of Egypt with industrial policies during President Mubarak’s last years in office. The country is a particularly interesting case to be studied because it looks back to a long history of very top-down industrial policies, while the last government before the revolution, which had been appointed by Mubarak 2004, embarked on a very different, much more market friendly course. The question is thus whether this government, which included a considerable number of big business people, was better able to promote structural change and thereby economic competitiveness without favouring well-connected groups of entrepreneurs at the expense of others.

The paper argues that Egypt’s new industrial policy adopted after 2004 was in fact less interventionist, selective and redistributive than earlier ones and oriented more towards demand, and that it boosted foreign direct investment, exports and economic growth. But this growth was neither pro-poor nor sustainable; it was mainly based on short-term effects and the export of primary goods rather than structural change and innovation. The new government was able to improve entrepreneurs’ access to finance, simplify tax rates and procedures and cut away red tape. But it did not succeed in raising the technology contents of Egyptian exports, firms’ business sophistication and technology absorption, and the level of applied research and innovation.

The main reason for this failure is that the business men in office apparently did not understand that many small and medium enterprises face very other problems than themselves and that the causes of these problems are too fundamental to be relieved just by a change in economic policies. These causes include significant deficits in the quality of education and training in Egypt, in the rule of law, in the transparency and fairness of administrative and judicial procedures, in private sector representation and in the availability of affordable land for production. In addition, the government missed to help overcome failures in the coordination of investors that typically prevent structural change.

Journal of Economic Perspectives-Volume 13, Number 3-Summer 1999-Pages 3-22 ... I n the 1960s, Africa's future looked bright. On the basis of Maddison's (1995) estimates of per capita GDP for a sample of countries, during the first ...

Public enterprises have been an integral part of the involvement of the state in the economy for most of the 20th century. After 1980, privatization has been the dominant trend until the 2008-2010 economic crisis when new nationalizations happened.

Following a period of almost obsessive academic attention in the 1980s, in the early 1990s the concept of corporatism fell from favor, as its explanatory powers appeared to wane and the Keynesian welfare systems under which it had flourished apparently fell into decline. In the late 1990s, a new interest in corporatism emerged, in line with new patterns of concertation and corporatist behavior in some unexpected places-countries in which the institutional basis for collaborative, bargained methods of policy making and conflict resolution seemed distinctly unpromising. We review the extensive literature on corporatism since the 1970s and consider its applicability in the contemporary period. We argue that an excessively structural-functionalist interpretation of corporatism led many wrongly to predict its demise as a form of policy making, and that an understanding of its persistence and new manifestations today must resurrect and strengthen some early, recently neglected insights into processes of political exchange.

This paper analyses the determinants of transport costs for intra-Latin American trade over a period of six years (1999-2004). The data refer to yearly disaggregated (SITC 5 digit level) maritime trade flows on 277 trade routes. With this data set, a transport costs equation is estimated using linear regression analysis in a panel data framework. The first contribution to the

Introduction In the middle 3-4 months of 1994 interested observers and an expectant electorate were treated to regular accounts of progress in finalising the RDP White Paper (WP). Originally scheduled for release in mid-July, the WP was finally published on September 21 after many last minute differences, both within the Government of National Unity (GNU) and the ANC-alliance, were ostensibly settled. We were treated during this period to rumours of conflicts and tensions between 'pragmatists' and 'socialists' allegedly battling for the 'soul of the ANC; of policy differences between 'conservatives' and 'interventionists' in the GNU; of deep methodological and ideological differences between the two sets of economic modellers used by the government (the 'supply-side' Development Bank of Southern Africa/Central Economic Advisory Service (DBSA/CEAS) team on the one hand and the 'demand-led' Macro-Economic Research Group/National Inst...

The process of Europeanization implies a confluence of resources and outputs by the EU member states. This is mainly due to both structural economic harmonisation and institutional system-building. This paper deals with welfare developments in the European social model in contemporary times. After identifying major changes affecting European countries both functionally and territorially, EU initiatives in social policy-making are reviewed. New policies aimed at co-ordinating employment and social policies at the European level (OMC) have tried to offer perspectives for reconciling the dichotomies between the economic and the social and the national and the European. Hence, while a paradigm shift in macro-economic policies has allowed for monetary centralisation and a growing matching of EU internal 'open' markets, the quest for the decentralisation of welfare programmes has also aimed at meeting demands for territorial subsidiarity. Reforms related to the emergence of new social risks (NSR) may provide EU institutions with initiatives for making social policy reforms coherent with the new economic policy orientations, while also respecting national diversity. Speculative observations on whether there is convergence in social policy paradigms in European countries are carried out in the conclusion of the paper.

Spatial price dispersion varies because of climatic fluctuations, marketimperfections, economic growth or economic policies. These variations areoften neglected in poverty studies.In this paper, we propose a simple simulation formula to assess the effecton poverty of a change in the spatial mean or spatial variance of price indiceswithout having to model each household situation. This approach constitutes aconvenient first step of the analysis of the impact of change in pricedistributions before more sophisticated investigation of causality structures andhousehold heterogeneity.

This paper presents and evaluates two interpretations of the eastern German labour market. These interpretations are called `wage gap’ and `innovation gap’. The former follows standard neoclassical thinking and regards high eastern German unemployment as the consequence of too high a wage level. The latter follows endogenous growth theory and regards a lack of product innovations as the main constraint on output and employment growth in the eastern German economy. The paper argues that the `innovation gap’ explains the facts much better than the `wage gap’. From this, the paper draws conclusions for economic policy: given the high interregional mobility of the workforce and the erosion of collective bargaining in eastern Germany, the wage level is not an appropriate policy instrument anymore. Instead, policy should aim at strengthening the innovative power of the eastern German economy by supporting research and development in the region.

This review of adjustment experience suggests that sharp devaluation of the exchange rate is probably ineffective in countries exporting primary goods. To encourage investment, adjustment packages must do more to ensure a stable macroeconomic environment and appropriate debt relief. ThePolicy, Research. and Extemal Affairs Complex distributes PREWorking Papers todisseminatethe findings of work inprogress and to encourage the exchange of ideas among Bank staff and a other interested in development issues. lbese papers carry the names of the authors, Teflect only their views, and should be used and cited accoidingly. The rindings, interprctations, and conclusions are the authors' own. They should not be attributed to the World Bank. its Board of Directors, its managemcnt, or any of its member countries.

This study uses a firm-level panel data set from Romania to examine whether the nationality of foreign investors affects the degree of vertical spillovers from FDI. Investors' country of origin may matter for spillovers to domestic producers in upstream sectors (supplying intermediate inputs) in two ways. First, the share of intermediate inputs sourced by multinationals from a host country is likely to increase with the distance between the host and the source economy. Second, the sourcing pattern is likely to be affected by preferential trade agreements that cover some but not other source economies. In our case, the Association Agreements signed between Romania and the EU implies that inputs sourced from the EU are subject to a lower tariff than inputs sourced from the US or Asia. Moreover, while for European investors intermediate inputs sourced from home country suppliers comply with the rules of origin and thus can be exported to the EU on preferential terms, this would not be the case for home country suppliers of American or Asian multinationals. Therefore, we would expect that American and Asian investors source more from Romania than EU investors and thus present greater potential for vertical spillovers. The empirical analysis produces evidence in support of our hypothesis. We find a positive association between presence of American and Asian companies in downstream sectors and the productivity of Romanian firms in the supplying industries. Further, the productivity of Romanian firms in the supplying sectors is negatively correlated with operations of European investors in downstream sectors. The differences between the effects associated with investors of different origin are statistically significant.

En septiembre de 2007 se hizo evidente una grave crisis financiera en los países desarrollados debido a graves errores de política económica. Aun contra su propia ideología, los gobiernos no han escatimado medidas para reducir sus efectos, no han logrado contenerla y avanza hacia una recesión mundial de profundidad y duración inciertas. Ya ha producido cambios en los paradigmas teóricos y prácticos que han dominado la academia y la política en las últimas tres décadas. También tendrá fuertes efectos en los frágiles equilibrios económicos, sociales y políticos de los países en desarrollo, en particular de América Latina por su dependencia de la producción de materias primas, remesas y flujos de capitales externos que se están reduciendo rápidamente. La crisis llevará a una nueva relación Estado-mercado y a nuevos paradigmas con fuerte influencia keynesiana, y de ella nacerá una nueva oportunidad para América Latina si logra consolidar una nueva manera de gestionar su economía.

Seaports provide multiple services to ships, cargo, and passengers. These services can be performed by a combination of public and private initiatives. Usually, the role of public sector institutions is to regulate and supervise private firms. In performing that task public sector institutions need to know firms' cost structure deeply. This paper offers a review of the literature about ports' cost structure and of its implications for regulation. The paper argues that the operation of port terminals should be analysed by means of multiproduct theory. This approach allows the calculation of several cost indicators (economies of scale, scope, and so forth) which are key tools to help regulators.

Land reform is one way in which the 'new' South Africa set out to redress the injustices of apartheid and, by redistributing land to black South Africans, to transform the structural basis of racial inequality. During the first decade of democracy, land reform has fallen far short of both public expectations and official targets. This article describes the progress of the programme and its changing nature. It is argued that a recent shift in land policy, from a focus on the rural poor to 'emerging' black commercial farmers, is consistent with changes in macroeconomic policy and reflects shifting class alliances. The programme now appears to pursue a limited deracialisation of the commercial farming areas rather than a process of agrarian restructuring. Most fundamentally, land reform has not yet provided a strategy to overcome agrarian dualism.

This paper examines the relationship between relative income and mortality. Our research is motivated by recent literature that posits that, holding individual income fixed, those whose income are low relative to the incomes of those in a reference group will have worse health. We develop an empirical model in which an individual's health is a function of his or her own income and the incomes of those who live in the same geographical area. We show how this individual-level model can be estimated using semi-aggregated data on the mortality rates of people categorized by age, race, gender, and place of residence. The model is estimated using mortality data from the 1980 and 1990 Compressed Mortality Files, merged with income data from the 1980 and 1990 5% Public Use samples of the US Census. We find no evidence that having relatively wealthy neighbors, holding own income fixed, is associated with higher mortality. Instead, we find evidence that among some demographic and age groups-in particular working-aged black males-having relatively wealthy neighbors is associated with lower mortality. For example, among younger (aged 25-64) black men, an increase in the income of others is estimated to have a beneficial effect on mortality that is 40% as large as an equivalent increase in own income.

this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org. I.

All rights reserved June 2009 The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank Group encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly.

This paper examines the struggle economists in interwar Australia faced in coming to terms with new ideas on economic philosophy and whether they, in fact, registered upon Commonwealth economic policy. After being unusually great in 1931, with the Premiers' Plan, the significance of economists waned as political complacency, brought about by the recovery itself, took over. Economists reasserted their influence,

To control supply and demand rice and increase income to farmer, Government assigned a rice purchasing policy. This study apply 2SLS model with time series data 1971-2009 to simulate and forecast the impact of rice purchasing policy on farmer welfare.
The responses of rice real price at farmers' level towards the changes of real price of government purchases and rice production is elastic in the long term. Demand off rice is significantly influenced by the price of rice, population, and demand for rice at t-1.
The increasing of rice purchasing price (HPP) on grain at 9.54% and 15% lead to an increasing of farmer's surplus IDR163,512,308,700 and IDR257,292,128,790.
Keywords: Rice Purchasing Policy, Income, Simulation, 2SLS, Farmers' Surplus Index

When there are widespread bank failures, deposit insurance agencies such as the Federal Deposit Insurance Corporation (FDIC) …nd it di¢ cult to sell failed banks at attractive prices. Thus, the deposit insurance fund su¤ers higher drawdowns per dollar of insured deposit when there is a systemic crisis. In turn, the actuarially-fair deposit insurance premium that is charged ex ante to banks increases in joint failure risk in addition to individual failure risk. Further, since bank closure policies re ‡ect greater forbearance in a systemic crisis, banks have incentives to herd. The incentive-e¢ cient premium that accounts for such moral hazard requires a higher charge for joint failure risk than the actuarially-fair one. Similarly, as large bank failures are more likely to be associated with asset …re sales (and regulatory forbearance), the e¢ cient premium for large banks is higher per dollar of insured deposits compared to that for small banks.

In Latin America, indigenous peoples constitute a marginalized group that is using the courts, increasingly, as one means by which to pursue and defend its rights. In part, this is a result of the juridifi cation of its collective rights through processes of constitutional reform across the region during the 1980s and 1990s. It is also a consequence of the very limited advances that have been made to date in guaranteeing these rights in practice. The enlarged legal recognition of indigenous autonomy has occurred at the same time as judicial reform in implementation of economic policies promoting free trade and accelerated natural resource exploitation -policies that affect indigenous communities negatively and disproportionately. This combination of factors has meant that indigenous movements more and more have called on the judiciary in defense of their collective rights, albeit often with limited tangible effects.

This paper aims to evaluate the relevance of different types of macroeconomic general equilibrium modelling for measuring the impact of economic policy shocks on the incidence of poverty and on the distribution of income. In the literature three approaches are identified. The first is ...

The recent revitalization of concern for environmental quality has generated many questions about the interaction between trade and the environment. Most of these questions have to do with the impact of environmental regulation on trade patterns and gains from trade. If a tradeoff is perceived, it is often argued that some intervention becomes appropriate: either a specific trade policy or the establishment of an international environmental standard. Present GATT policy then becomes an issue of debate. Should GATT revise its rules to accommodate the specific trade measures suggested? How can GATT ensure that the environmental objective is not a disguise for a trade barrier? Should GATT establish some international environmental standard with procedures to ensure compliance? The importance given to trade liberalization and exchange rate policy reform as part of adjustment for development has raised another set of questions: Is there a direct link between the removal of trade barriers...

The economic policies developing countries should follow to sustain economic growth and development. P.y. R_mmch. ad^ BEMl Affai Conr4ea dau ¶hum IPRE Wodaini Papmi dimbaar hetiunipafw d inv u m d cao azuuthbceech nge ot ideas among Ban sIta and a11 Shoal unied in devuozi tem Thee pepecany the nama at UNe a*hX6 dtlte Many thar vi and stauAqld be UA awnd mAed accordAngly. T'h ffi%duqV. inflmluaum. mad uIm aam the awhms' owL They bmW not be aunbaued to th World Bank. ,u Hoard of Diiarz, ILs muuganaL o my daf minm ¢uw.aM.

Recent trends in sentencing in England and Wales are discussed and related to the debate concerning the relationship between unemployment and imprisonment. The shift towards a more punitive justice system are traced to the abandonment of full employment economic policies in the mid 1970s.

Celem badania 1 jest zebranie i synteza pogl dów teoretyków polityki gospodarczej w zakresie wybranych cz ci podstaw przedmiotu. Po ponad dziesi ciu latach transformacji systemowej i ugruntowaniu si pogl dów na temat prowadzenia polityki gospodarczej w warunkach gospodarki rynkowej, mo na po raz kolejny podj prób zdefiniowania tej na nowo kszta tuj cej si dziedziny nauk ekonomicznych, zw aszcza w obliczu braku jednej, zaakceptowanej przez wszystkich teoretyków tej dziedziny, czy te dominuj cej w naszej literaturze definicji polityki gospodarczej. W tym celu dokonany zostanie przegl d literatury polskiej i uzupe nienie tego dorobku przede wszystkim o osigni cia niemieckie. Literatura tego kraju w dziedzinie polityki gospodarczej nale y do jednej z najbardziej zaawansowanych teoretycznie na wiecie.

Although the inadequacy of GDP to measure economic welfare is widely accepted theoretically, it is still used as the key indicator for economic policy. This article's aim, therefore, is to give some empirical evidence to the theoretical critique. Economic welfare, or at least its change over time, is estimated by the index of sustainable economic welfare (ISEW), which takes account of GDP, unpaid household labor, social costs, environmental damage and income distribution. The concept of the ISEW, which was originally developed by Herman Daly and John Cobb, is entirely reformulated with special regard to questions of inner consistency and clarity in structure. As an illustration the methods of the calculation in the Austria case study and its results are presented.The main result is that GDP and economic welfare as measured by the ISEW differ significantly. Up until the 1970s GDP only slightly overestimated the growth of economic welfare, but since then it has been completely misleading. While GDP continues to rise, sustainable economic welfare has been stagnating since the middle of the 1980s. The main causes have been growing future welfare reductions, increasing income inequality and a stagnation in the value of unpaid household labor. As GDP neglects those aspects, it systematically misinterprets economic welfare. However, the ISEW does not intend to simply replace GDP as a unique welfare measure but should form part of a more holistic social reporting system.

This chapter critically questions the ‘naturalisation’ of recourse to the market, namely, the process by which market devices and financial techniques were established and became unchallenged and uncontroversial technical issues. The management of public debt in financial markets was initially one among many strate- gies, and market devices became a naturalised way of financing the state only after long ideological struggles and administrative change.
Drawing on sociological studies of the long-term effects that the development and legitimisation of technical instruments have on public policy,4 I analyse state financing techniques as the products of a histori- cal process, which varies across countries and institutional contexts. The apprehension of the sovereign debt problem cannot be reduced to measures such as debt-to-GDP ratios ; for political and institutional constellations do matter. Throughout history, there have been multiple, non-market, professional tools and administrative apparatuses, which financed public spending and deficits.

Putting data on children into macroeconomic debate can be achieved in a variety of ways. Economic policy is about improving the lives of people and the most basic data of all concerning children -demographic data -can be used to underline this fact. The key economic variables on which economic policy operates can all be given a child dimension. And direct measures of various dimensions of child well-being must also be brought into the picture. 1 The humanization of the debate on structural adjustment in poor countries (e.g. Cornia et al., 1987) is now well accepted (although the degree to which policies have changed as a result is sometimes questioned). 2 The papers by and , drawn on in this paper, form the output of the project.

Reformprozess. Dieser ist notwendig, da die Ölreserven zur Neige gehen, wodurch die Leistungsbilanz stark negativ geworden ist. Gleichzeitig ist die Unterbeschäftigung hoch und das Pro-Kopf-Einkommen stagniert. Subventionen und Zahl der Beschäftigten im öffentlichen Dienst sind zu hoch -Arbeitsproduktivität, Steuereinnahmen und Export sind zu niedrig. Die Schattenwirtschaft blüht. Allerdings verhindern politische und ideologische "Tabus" eine zügige Umsetzung der Reformen. Die Einführung einer Mehrwertsteuer, der Abbau von Subventionen -vor allem für Ölprodukte -, die Integration der Flüchtlinge aus dem Irak, eine Verbesserung der Beziehungen zu Israel oder die Privatisierung von Staatsunternehmen kommen nicht voran. Schließlich fehlt es Syrien an Fachkräften für die Analyse, Planung, Durchführung und Kontrolle der zu ergreifenden Maßnahmen. Vor allem in diesem Bereich, aber auch im Handel können die internationale Gemeinschaft und besonders die EU unterstützend wirken, während die syrische Regierung durch mehr Transparenz bei ihren Reformmaßnahmen Vertrauen bei der eigenen Bevölkerung, aber auch international gewinnen würde. Im Mai 2007 hat das DIW Berlin auf einer Fact Finding Mission nach Damaskus über vierzig Interviews mit nationalen und ausländischen Analysten und Entscheidungsträgern geführt. 1 Dabei wurde festgestellt, dass Syrien den richtigen Weg beim Umbau seiner nicht wettbewerbsfähigen Plan-zu einer sozialen Marktwirtschaft eingeschlagen hat. Trotzdem bleiben drei wichtige Herausforderungen für die Reformer: Die Umstellung auf eine Wirtschaft, die nicht am Tropf der schrumpfenden syrischen Erdölreserven hängt, der weitere Umbau der Wirtschaft von einer sozialistischen Planwirtschaft zu einer liberalisierten Marktwirtschaft und die Reduktion von Armut und Ungleichheit sowie die Stärkung der sozialen Entwicklungschancen aller Syrer einschließlich der in Syrien lebenden Flüchtlinge.

Few studies have examined the impact of international migration and remittances on poverty in the developing world. This paper fills this lacuna by constructing and analyzing a new data set on international migration, remittances, inequality, and poverty from 71 developing countries. The results show that both international migration and remittances significantly reduce the level, depth, and severity of poverty in the developing world. After instrumenting for the possible endogeneity of international migration, and controlling for various factors, results suggest that, on average, a 10% increase in the share of international migrants in a country's population will lead to a 2.1% decline in the share of people living on less than $1.00 per person per day. After instrumenting for the possible endogeneity of international remittances, a similar 10% increase in per capita official international remittances will lead to a 3.5% decline in the share of people living in poverty.

In this paper we use the rich set of unit-level data from the most recent Egyptian household surveys (1995 -1996 and 1999 -2000) to assess changes in poverty and inequality between 1995 and 2000. The study analysis is based on the new methodology of constructing household-specific poverty lines that account for the differences in regional prices, as well as differences in the consumption preferences and size and age composition of poor households. The results show that average household expenditures rose in the second half of the 1990s and the poverty rate fell from 20% to less than 17%. In addition to the ongoing divide in the urban-rural standard of living, a new geographical/regional divide emerged in the late 1990s. Poverty was found predominantly among less-educated individuals, particularly those working in agriculture and construction, and among seasonal and occasional workers. These groups could suffer the most from the slowing economic growth evident after 1999 -2000.

The paper reveals the mechanism of anti-inflationary policy of the John Major's conservative government in the UK in the 1992-1997. The author zeroed in on the political and economic innovations, as well as evaluating the effectiveness of the inflation targeting policy.
***
В статье раскрывается механизм антиинфляционной политики консервативного кабинета Джона Мейджора в Великобритании в 1992-1997 гг. Основное место автор уделяет описанию политических и экономических новаций правительства, а также оценке эффективности нового курса.

The establishment of British colonial administration brought the introduction of cash crops economy to Nigeria-as elsewhere in Africa. In line with the British colonial policy of providing raw materials for the industries of the metropolitan power, Nigeria witnessed the downplay of the importance of the indigenous economic system which made each family self-sufficient in food and other socioeconomic needs. Through a deliberate policy of discouraging food crop cultivation, most clans and communities were gradually rid of food supplies and thus introduced into acute hunger in favour of the cultivation of cash crops needed by British industries. Local governments were used as agents of this destruction of the indigenous food crop economy and the vigorous pursuance of the new economic policy. This work focuses on this role of the local government authorities, with the local government in Benin Province as a case study.