Does paying local leaders lead to better economic development?

Guest post by Gedeon Lim index

This is the thirteenth in this year’s series of posts by PhD students on the job market

Much of modern development efforts are channelled through local government structures. In 2020, for example, 248,160 Gram Panchayats in India will receive transfers of $8.3 billion; 41,913 Barangays in the Philippines will receive $2.5 billion; and in Indonesia, 74,000 rural villages have received annual transfers of $5.1 billion since 2014. Yet, despite the amount of resources devolved to local government, chief executives – Sarpanch (Gram Panchayat heads), Barangay captains, or village chiefs – are rarely paid a living wage for their time as local leaders.

Continue reading

Modest Growth Amidst Growing Polarization in Europe and Central Asia

Article published on

BUCHAREST, November 22, 2016 – There will be a modest increase in GDP growth in 2016 Imagefor countries in the Europe and Central Asia (ECA) region. Low oil and other commodity prices in the eastern half of the region, a decline in investment rates in the European Union, and ongoing structural challenges in all countries are hampering growth in the region and contributing to an increase in populism and polarization, says the latest World Bank ECA Economic Update.

According to the report, launched today in Bucharest, Romania, the region is expected to grow a modest 1.6 percent in 2016 – up slightly from 1.4 percent in 2015 – but declines in both incomes and consumption will likely mitigate this modest growth. This trend is projected to continue into 2017 and 2018, with growth forecast at 1.5 percent and 1.8 percent, respectively. Continue reading