Thomas (2009) dismisses the Worldwide Governance Indicators (WGI) as an ‘elaborate and unsupported hypothesis’ because of the failure to demonstrate the ‘construct validity’ of these indicators. We argue that ‘construct validity’ is not a useful tool to assess the merits of the WGI, and even if it were, Thomas provides no evidence of any practical consequences of failure to meet the criteria of construct validity.

/pdf/response-to-what-do-the-worldwide-governance-indicators-d2939auft7.pdf

Response to ‘What do the Worldwide Governance Indicators Measure?’

This paper assesses the relationship between poverty reduction and economic growth in Indonesia before and after the Asian financial crisis. The annual rate of poverty reduction slowed significantly in the post-crisis period. However, the trend in the growth elasticity of poverty indicates that the power of each percentage point of economic growth to reduce poverty did not change much between the two periods. In both, service sector growth made the largest contribution to poverty reduction in both rural and urban areas. Industrial sector growth largely became irrelevant for poverty reduction in the post-crisis period even though the sector contributed the second-largest share of GDP. Agricultural sector growth, mean-while, remained important, but in rural areas only. The findings suggest the need to formulate an effective strategy to promote sectoral growth in order to speed up the pace of poverty reduction.

http://www.smeru.or.id/sites/default/files/publication/econgrow2.pdf

Economic Growth and Poverty Reduction in Indonesia Before and After the Asian Financial Crisis

The preponderance of poor people worldwide live in rural areas. Since they cannot afford, and are not educated sufficiently to take full advantage of contemporary knowledge-based technologies, alternative approaches are necessary. A major business model to do so involves setting up a rural telecenter that provides computer and internet technology as a shared model or highly subsidized. Despite the potential and availability of telecenters, research suggests that telecenters have low usage. In this research, we explore the reasons for the low usage of telecenters using a framework for use and acceptance of rural telecenters. The framework we use builds on prominent IT theories and has the following four dimensions: a perceived outcomes, b perceived effort, c social influence, and d facilitating factors. We use this framework to formulate six research questions. The study in general has the goal to identify reasons for low use of telecenters and test it with an exploratory study of information and communication technology users and non-users from rural India. Implications are discussed at the village and provider levels. 
Ramiro Montealegre is the accepting Associate Editor for this article.

Using technology to alleviate poverty: use and acceptance of telecenters in rural India

The paper combines analytic and numeric tools to investigate a nonlinear optimal control problem relevant to the economics of climate change. The problem describes optimal investments into pollution mitigation and environmental adaptation at a macroeconomic level. The steady-state analysis of this problem focuses on the optimal ratio between adaptation and mitigation. In particular, we analytically prove that the long- term investments into adaptation are profitable only for economies above certain efficiency threshold. Numerical simulation is provided to estimate how the economic efficiency and capital deterioration affect the optimal policy.

/pdf/modeling-of-environmental-adaptation-versus-pollution-c6js7f9kqo.pdf

Modeling of environmental adaptation versus pollution mitigation

The purpose of this study is to investigate the relationship between the World Bank's governance indicators and the socioeconomic development indicators of the Brics countries The databases of a number of international organizations corresponding to the 2005-12 period were assessed using panel data analysis The results suggested a positive relationship between the HDI and the Government Effectiveness and Control of Corruption indicators, and between GDP and the Control of Corruption indicator, as well as a negative relationship between GDP and the Voice and Accountability and the Political Stability indicators The explanatory power of the governance indicator dimensions in relation to the HDI is greater when compared to that of the dimensions of governance indicators related to GDP, which can be understood by the fact that the latter index only deals with the economic dimension whereas the HDI takes other factors into account

/pdf/indicadores-de-governanca-mundial-e-sua-relacao-com-os-5datck0cos.pdf

Indicadores de governança mundial e sua relação com os indicadores socioeconômicos dos países do Brics

The World Bank research observer 23 (1)

About a dozen countries in Latin America have enacted reforms that include elements being contemplated elsewhere, including the partial privatization of social security. It is not easy to draw universal lessons for social security reform from the experience of countries such as Argentina, Chile, and Mexico, however, where sizeable public pension systems went bankrupt before the populations aged, mainly because of mismanagement. Most developing economies have much smaller social security systems. Relatively well managed systems in industrial countries face problems that are long term in nature and have been brought about by an aging population. The experiences of Latin America nevertheless offer some general lessons for countries in other parts of the world. These lessons relate to changes in labor market incentives accompanying reforms and how workers react to them, government actions that have met with success in managing the transition to funded pensions, and the expectations of individuals from social security systems. Latin Americas reforms suggest that the most effective approach is to keep payroll taxes low, governments solvent, and social security systems focused on providing reasonable insurance against poverty in old age.

/pdf/what-can-countries-in-other-regions-learn-from-social-18ettyzkip.pdf

What can countries in other regions learn from social security reform in Latin America

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The World Bank research observer 23 (1)

What can countries in other regions learn from social security reform in Latin America