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UNC / PLCY / PLC 110 / What improves the quality of life for the community?

What improves the quality of life for the community?

What improves the quality of life for the community?

Description

School: University of North Carolina at Chapel Hill
Department: PLCY
Course: Global Policy Issues
Professor: Zimmerman
Term: Fall 2016
Tags: Public, Policy, health, poverty, aid, and corruption
Cost: 50
Name: PLCY 110 Midterm Study Guide
Description: This is a very comprehensive study guide for the midterm. I have gone through each lecture and highlighted the most important notes and ideas from each one. I attached links to each of the readings wit
Uploaded: 10/12/2016
42 Pages 189 Views 3 Unlocks
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PLCY 110: Midterm Study Guide 


What improves the quality of life for the community?



Exam Date: 10/13/16 

Layout of exam:

Online- go to class and get code and take test on laptop

50%: Multiple Choice/Fill in the blank (like the quiz)

50%: Essay (write one of two choices)

From Dr. Siem’s email about the exam:

I only have time/points to ask you 1-3 questions per lecture/reading in the short answer / multiple choice /  fill in the blank section. I think the most strategic way to study for this section is to take each  lecture/reading and pretend to be me and try to anticipate the 1-3 questions I might ask you. For example,  what question will I ask you from Thursday's lecture? It will be (literally, this is one Midterm question): "(3  pts) What is the main challenge in documenting anti-corruption policy effectiveness? What is one  approach for dealing with this challenge, and what is one limitation of this one approach?" Clearly, since  there are often multiple "main points" per lecture, you should try to brainstorm 3-4 possible questions  rather than only one or two so that you are over-prepared.


What improves the quality of life for an individual?



We also discuss several other topics like What is the total sales or profit value of a customer to a marketer throughout that customer’s lifetime?

Both on the Midterm and the Final, for the essay portion I will be asking you to quickly skim a policy  document related to one of the units we have examined and then write an essay critiquing the policy in  light of the information we've learned in the unit. In the first part of the essay, you will always be asked to  relate unit-specific terms, the main root causes of the issue, the main policy approaches to addressing the  issue, and any issue-specific considerations or challenges that have been highlighted (e.g., measuring  corruption, controlling refugee policy enough to study causal relationships, etc.). Then, in the second half  of the essay, you will be asked to reflect on the policy document I provide in light of that information. So, if  you wanted to be over-prepared for the exams, you could actually write up the first part of the essay for  each unit in advance of the exam and simply copy and paste it in. (No, this would not be cheating, as long  as you do not share your answers with others, evidence of which would quickly show in your responses  anyway.)


What are the requires resources to recover?



We also discuss several other topics like Mineralocorticoids that regulate ionic homeostasis in the kidneys are made in what?

Reread all readings!!!!  

***I will go through each lecture and grab the main points/definitions. I will  attach the links for the readings and a short summary of each. She said to  anticipate/prepare for 1-3 questions for each lecture. I will add a few of the  questions I think she may ask along with answers. This is merely a guide for the  exam and here to help with the critical analysis during the exam. BEST OF LUCK  STUDYING***

1: Poverty Intro 

Development- improving quality of life for community (usually through economic improvements)

Human development- improving the quality of life for a community (not often with economic  means, but helps others and an group level). Example: red cross and welfare

Poverty alleviation-improving quality of life for an individual. Example: Kiva- gives out microloans Inequality- unequal distribution of resources If you want to learn more check out What is the additional utility a consumer derives from an additional unit of a good?
We also discuss several other topics like How is gdp calculated?

How poor is poor?  

-Less than $1/day vs “bottom billion”

-People vs countries

-Generational vs sudden

Global Poverty Dimensions: 

∙ Low income

∙ Limited capital- physical, human, social, environmental

∙ Increased uncertainty???? Increased risk ???? Narrow focus on today If you want to learn more check out What is the function of ovules?

∙ Limited safety net

∙ Limited choices (career, migration)

∙ Limited power- economic, political

∙ Lack of opportunity/access to services (education, health, infrastructure, paved roads) ∙ Psychological concerns (shame, inferiority, resignation)

What is development?

∙ Long-term growth (Collier)

∙ Development (Sachs) vs Poverty Alleviation (Easterly)

∙ Sustainable development (Stiglitz)-how it grows

o Economic

o Social Political

o Environmental  

Chutes talked about in Collier 

1. Conflict cycle:requires resources to recover, not focused on long term outcome 2. Bad governments and small countries:corruption, theft, coercion, low transparency, low  accountability, apathy/inaction. If you are small country and have an ineffective  government, then you are become reliant on your neighbors which can be detrimental.  3. Natural resources: generally bad because countries become dependent on them, all  resources go to a small group of people, and there is no incentive to invest in human  capital. If you want to learn more check out What is socialisation in sociology?

4. Landlocked with bad neighbors- no way to trade and with bad neighbors and there are  no friendly recipients of trade. Growth spillover

Additional chutes: 

1. Health/disease- takes resources

2. Colonialism- French/Spanish vs British

a. British invested in institutions and stayed to set up- so their countries are now  more stable after they left.  

b. French/Spanish did not stay, so those countries are less stable

3. Conflict trap- resource shortages breed conflict and vice versa

4. Geography- countries in tropical area ???? less growth

5. Globalization- RTTB(race to the bottom), migration, trade.

6. Poor governance

a. Good Governance- participatory, transparent, accountable, effective, and  equitable. Promotoes the rule of law

-Democracy

-State of capacity

-Rule of law- new

-Just laws, enforced, no buy outs, property rights

Readings: 

“Voices of the Poor” by Deepa Narayan

https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f

7d8b7790a678/Readings/August%2030/Voices%20of%20the%20Poor%20Excerpt.pdf Summary: It discusses the study conducted by Narayan and her team on 23 countries. It has main  points of:

Psychological well-being of the poor

- Parents feel ashamed and embarrassed when they can’t feed their kids - Kids at school are made fun of when they receive free lunch and wearing old/dirty  clothes

Power and voice

- “poor men and women very often express a sense of hopelessness, powerlessness,  humiliation, and marginalization”  

- “Poor people often reported that they have little influence over their political  representatives.”

- “Rich people in Tanzania, for instance, are described as those who “set the prices,”  while the poor are described as “those who are forced to accept the prices set by  others” ”

Generational vs Sudden Poverty

- Generational- born into poverty, all you’ve ever known, super difficult to break the  cycle

- Sudden- people experience an event that causes them to fall to poverty- layoff,  natural disaster, sickness, etc. some believe god punishes them

Cultural and Social Norms

- “These societal bonds can help to stabilize communities and ease the psychological  stresses of poverty. “

- “maintaining social solidarity is of extreme value to poor people, and the inability to  reciprocate with gifts or participate in community events can have very harmful  consequences ranging from humiliation, loss of honor and psychological distress to  social marginalization and exclusion from important social networks. “

State Provided Infrastructure:

- In a poor rural community surveyed in Nigeria, respondents claim that every  inhabitant is poor precisely because the community lacks basics such as water,  electricity, roads, schoolteachers, and more (Nigeria 1995). In Uganda, a distinction is  made between individual and community poverty, in which community-level poverty  is defined as “a lack of key infrastructure for the entire community, for example,  school, roads” and lack of security or harmony (Uganda 1998).

- Lack of transportation also affects children. Rural children in Cameroon often do not  attend school because schools are located beyond walking distance, and teachers  avoid working in the more isolated areas (Cameroon 1995).

Assets of the Poor

- The four primary classifications of assets are physical capital, which includes land  and material belongings; human capital, which includes health, education, training,  and labor power; social capital, which refers to the extent and nature of social  networks such as kin, neighbors, and associations; and environmental assets such as  trees, forests, water, and non-timber products

- Assets also may be productive, as in livestock, or fixed, as in material possessions  such as jewelry. Some assets may be at different times productive or fixed, such as  housing which can be rented (productive) or sold (fixed).

Questions: 

1. How do you define a person living in poverty?

a. (broad answer including: less than a dollar day//unable to afford basic needs like  food, shelter, healthcare//feeling ashamed of their economic and social standing) 2. How is having a natural resource a poverty trap?

a. Because countries become dependent on that one or few resources, all resources  go to a small group of people that work/have the resource, and there is no  incentive to invest in human capital, and if it is nonrenewable or slowly renewable,  the country will likely deplete the resources and once it is gone, they will have  nothing.

3. Which of the following is NOT a conflict trap discussed by Collier?

a. Natural resources

b. Landlocked with bad neighbors

c. Bad governance in small country

d. Large population

i. Answer: D

2: Poverty Solutions 

Graduation approach: 

- Program providing poor people ways and means to graduate out of poverty involve  stages and interventions so individuals don’t fall back into poverty traps

- Self-employment

- Multiple house visits

- Science paper by Banerjee et al, and in BRAC (Bangladesh Rehab Assistance Committee) - How are participants selected?

o Randomization of treatment/control

o Reduces bias and increases validity of study

Steps of the Graduation Approach:

1. Productive asset transfer- a one-time transfer of a productive asset. Creates  job opportunity  

a. Capable of generating income

b. Revenue- immediate or later

c. Livestock, petty trade, seeds tools, stove, etc.

d. Training

2. Consumption support-regular transfer of food/cash

a. Amount varied depending on PPP

b. Peru- women received money bc they were better at keeping money

i. Treatment and control groups both got money in Peru

3. Technical skills training on managing the particular assets

4. High frequency home visits. Checks to make sure they are doing what is  expected.  

a. Increased accountability of participants

b. Kept them doing their tasks

c. Financial capability

d. Without the visits, participants may abuse the program

5. Savings- access to savings account. Sometimes mandatory.

a. Provides safety net for sickness, disasters, etc.

b. Smooth out uncertainty of income flows

c. Microloans- address financial constrains

i. Helps people buy something (stove to generate their own income by  baking and selling cookies)

6. Some health education, basic health services, and/or life-skills training a. Many people in poverty have no health education

b. This helps them stay healthy, so they do not have spend extra money on  medicine in which it could have been prevented.  

c. Also helps them to stay healthy so they can continue working and generating  income

Final notes/thoughts on graduation approach:

- Did it work? Treatment groups were higher than control groups in almost  every category (so yeah, it definitely did something)

- Spillover-treatment groups talk to control groups and their behavior  changes. Treatment groups in different villages to try and prevent this. In  India, there was >50% spillover.

- Results were different for each country (due to so many different factors) - Did it untangle poverty traps? No evidence in this study to get out of traps

Readings:  

1. “Multifaceted program…” by Abhijit Banerjee, Esther Duflo, Nathanael  Goldberg, Dean Karlan,* Robert Osei,William Parienté, Jeremy Shapiro,  Bram Thuysbaert, Christopher Udry

a. https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f 7d8b7790a678/Readings/September%201/Multifaceted%20Poverty%20Program -1.pdf 

b. This article is about the Graduation Program. It discusses the methods and  results of the study

c. “We conducted six randomized trials in Ethiopia, Ghana, Honduras, India,  Pakistan, and Peru with a total of 10,495 participants. In each site, our  

implementing partners selected eligible villages based on being in geographies  associated with extreme poverty, and then identified the poorest of the poor in  these villages through a participatory wealth-ranking process. About half the  eligible participants were assigned to treatment, and half to control. In three of the  sites, to measure within village spillovers, we also randomized half of villages to  treatment and half to control. We conducted a baseline survey on all eligible  participants, as well as an endline at the end of the intervention (typically 24  months after the start of the intervention) and a second endline 1 year after the  first endline. We measure impacts on consumption, food security, productive and

household assets, financial inclusion, time use, income and revenues, physical  health, mental health, political involvement”

d. “We found statistically significant impacts on all 10 key outcomes or indices. One  year after the end of the intervention, 36 months after the productive asset  transfer, 8 out of 10 indices still showed statistically significant gains, and there  was very little or no decline in the impact of the program on the key variables  (consumption, household assets, and food security). Income and revenues were  significantly higher in the treatment group in every country. Household  

consumption was significantly higher in every country except one (Honduras). In  most countries, the (discounted) extra earnings exceeded the program cost.” 2. “The Best Welfar Reform: Give Poor People Cash” Charles Kenny a. https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f 7d8b7790a678/Readings/September%201/The%20Best%20Welfare%20Reform Give%20Poor%20People%20Cash-The%20Atlantic-1.pdf 

b. Discusses the pros and cons of giving people straight up cash as form of welfare c. “When governments give people in-kind support like food, it frequently costs  more to deliver that support than it would to distribute cash—and for the same or  even a lesser impact.”

d. “At less cost to the government, cash programs led to the same health outcomes  as food-based programs, but also provided additional resources for recipients to  spend on 8/14/2016 The Best Welfare Reform: Give Poor People Cash - The  Atlantic http://www.theatlantic.com/international/archive/2015/09/welfare reform-direct-cash-poor/407236/ 4/7 schooling, medicine, and transport.”

e. A big concern is that people will waste money on less useful things, but turns out  that is normally not the case

f. Cash also has a larger multiplier effect. Bring food from elsewhere to an area, and  the impact of that food stops with those who eat it. Give people cash and they  spend it on goods provided by local farmers and traders, who are often poor  themselves and benefit as well.

Questions: 

1. Why was it important that participants in studies are randomly selected? a. To decrease bias and increase the validity of the study

2. Why is it important that people living in poverty have some health education? a. So they can spend less money on healthcare expenses and if they stay healthy,  they can work more and make more money

3. Did the graduation program work?

a. Overall, you can say yes because the treatment group was significantly higher in  most areas than the control groups

3: Aid and Effects on Poverty 

Foreign aid

Transfer-who? Gov. org, or individual (to/from combo)

What? Transfer of resources (money, materials, skills)

Main Goal- 

-To accelerate growth???? achieved in aggregate, ambiguous results for many specific cases

Does aid lead to growth? 

- Almost flat line???? no relationship

- In another graph, as aid increases, growth decreases

- Collier- aid tends to speed up growth

- Colllier does not have great counterfactual

- Easterly takes viewpoint of the poor individual: aggregate doesn’t  matter to them- they don’t see it and still suffer.  

It’s not what, it’s how: Aid Approach: 

∙ Budget support- Money $$ very efficient. Less transaction cost

∙ Aid selectivity- $$ in certain places, super poor but have the potential for success ∙ Aid agencies- $$ and procedures

∙ Contingent aid- $$ for performance (policies, gov.)

o Common: audit your gov and you get $

o If you repeal and a bad law (like illegalization of homosexuals), you get $ ∙ Earmarked aid- $$ for sectors/projects- like AIDS or climate change projects ∙ Aid for capacity building- $$ and training. Helps them make $ later

∙ Aid as investment- aid for politics (not where they think it is a good idea, but where  they can get political gain)

∙ Aid outside of government- Like all of the above, but not to government o NGOs, FBOs (faith based), Short term volunteers

∙ Loans vs Grants

o Loans you pay back

o Grants- apply and you use them for a certain purpose and can just keep it

Factors determining aid approach

-Diminishing returns- first million is usually the most valuable (gets the most done) - Moral hazard- countries slack off on their own development, the more aid they receive - Time inconsistency- aid given at time X to pay for changes, but aid often given contingent on  changes occurring…Give conditions, if not met, there are no real consequences for the  recipient.

Effects of Aid (outcomes) 

1. Intended 

a. Growth

b. Self-sufficiency

c. Increased quality of life

d. Stopping cycles of poverty

e. Consumption

f. Diversification

g. Opportunities

h. Economic development

i. Political development

j. Sustainable development

k. Achieving MDGs (or other specific benchmarks)

2. Unintended

a. State capture

b. Dependency/free riding

c. International priorities vs local needs

d. One size fits all (macro vs micro)

e. Cultural insensitivity

f. Religion and politics

g. Negative externalities-behavior’s negative effect on other people (but person  behaving does not have to pay/bear social cost)

i. Ex: motorcycles- everyone else has to hear the loudness of their engines,  and driver doesn’t have to pay  

Aid dependency- Micro 

-Little girl got a new pen with a lot of excitement, but would choose it over the counting device  she made

Aid dependency- Macro 

-Run out of things like-passport covers, gas, etc.  

-Can’t function without aid

Aid Politics Research 

- Aid to government is allocated by real people

- Sometimes allocate aid according to political factors rather than need o When does one win out over the other?

- Ancient question, but difficult to study

- Black box process

- Post-hoc measurement of “need-based” vs. “politics-based” allocation Our theory-

-Making allocation decisions transparent should make aid go to people who really need  it

-People may feel it’s more fair

-People might take action against political allocation

Case context

Malawi-

- Poor  

- Dependent on aid-37% of gov budget

- Corrupt, aid theft

Subject- ward councilors

- New

- Elected in 462 single-member wards

- Authority over development decisions, particularly aid allocation

- Accountable to citizens, political superiors (MPs, DCs), donors

Design: factorial field exp. with 4 2-factor treatment

Sample- 310 councilors (93%)

Interaction- asked how to allocate education across constrained choice of schools  (needy/political gain)

Primary outcome- whether high-need or high-politics schools are more likely to be chosen  This is a real decision: a lottery was being held to determine which politicians receive the goods This is a meaningful decision: councillors invested in decision and remain engaged in the aid  delivery process.

Schools received: iron sheets for roofs, solar lamps, and teacher kits (notebook, chalk, and pen)

½: no one knew about decision

½: sent letter to ADC with decision

Findings: used both political and programmatic criteria in decisions

Transparency- neediest 20% schools were 40% more likely to receive aid Schools with >50% votes were 12% less likely to be selected

**This means that transparency increased the likelihood for needy schools to receive  resources** 

Readings: 

“Here’s why Ugandans resent (some) international donors and aid groups” by Laura Sea https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f

7d8b7790a678/Readings/September%208/Aid%20Resentment%20Monkey%20Cage.pdf 

Summary:

a. This article discusses the negative side of donors and aid which is that they don’t listen o  the local needs or create sustainable development.

b. In other words, despite international NGOs’ widely publicized commitments to listening  to beneficiaries, they cannot hear this expectation of interdependence — because it  conflicts with their core commitment to fostering independence rather than dependence.  

c. This problem was especially acute at Hope Child, where employees saw keeping pace  with international trends and best practices as a top priority — even though these trends  were in direct conflict with the ethics of patronage that oriented the lives of the people  they served.  

d. By contrast, the Catholic sisters working at Mercy House were deeply committed to an  ethic of charity that corresponded with local ethics of reciprocal patronage and unrequited  generosity. The sisters only took up those donor mandates that they felt were consistent  with their theology and founder’s vision. Their understandings of divine providence also  led them to see themselves as protected and cared for by God. This gave them courage to  resist their international funders’ demands, even when if they lost some funding.

Questions: 

1. Describe how there can be a moral hazard in giving aid.

a. An organization may be insensitive to a country’s need for development, so they  give them a lot of money/support and that country becomes dependent on that  aid, which is detrimental for that country because if the aid disappears, then the  country will fall.  

2. What is an example of an externality of a policy on aid?

a. A policy that gives people free food would have a negative effect on the local  farmers that depend on those individuals buying their products.  

3. According to Collier, does aid provide for growth?

a. Yes, he believes it speeds up growth

4: Health Intro 

Health-Poverty Cycle 

Health ???? ???? Poverty

∙ Healthcare is expensive, so if you’re poor, you cant afford meds

∙ If you’re sick, less time working, lower income

∙ Can’t buy nutritious food, so it takes longer to recover

∙ In poverty, poor living conditions, more likely to get sick

Public health-science of protecting and improving health of families and communities through  promotion of healthy lifestyles, research for disease/injury prevention and detection, and  control of infectious disease (CDC)

Public health issue- a problem that is often to an entire community or population

Healthcare- combination of resources, organization, financing, and management that culminate  in the delivery of health services

Typology 

-Chronic- public health issue that is relatively stable and pervasive

Ex: ringworm, malaria, cholera, diarrhea, obesity, etc.

-Crisis- Issue that occurs suddenly in a specific population  

Ex: HIV, Ebola

Actors in Global Public Health 

-Beneficiaries

-International

- International organizations

-Government

-Militaries

-Volunteers

-Media

-Domestic

- Government officials

-Ministry of health/Health depts.

-Community leaders

-Health clinics (their leadership and staff)

Root Causes of Poor Public Health 

-International  

∙ Lack of global standards

∙ Slow decision making and reaction

∙ Supply and demand (Incr # of disease, decrease supply of vaccines, crops, certain  drugs are more focused on in production)

∙ Limited manufacturing and procurement capacity  

-Domestic

∙ Limited resources to invest in healthcare systems

∙ No trash pickup, etc.

∙ Poor facilities, labs, care facilities

∙ Poor transparency and accountability

∙ Poor transportation

∙ Limited data and computer power

∙ Low education

Readings:

1. Banerjee and Duflo Chaper 1:  

https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f

7d8b7790a678/Readings/September%2013/Banerjee%20and%20Duflo%20Ch.%201.pdf Summary:

a. Discusses poverty and aid. Talks about the differences between Sachs and Easterly b. Sachs- believes there are traps that a country is in poverty: “hot, infertile malaria  infested, and often landlocked” Believes aid is key to their success

c. Easterly- thinks aid “does more bad than good” - believes aid prevents people form  searching for their own solutions, and that if there a free markets and right  incentives, success will come.

d. Also discusses the distribution of bed nets and will people be more likely to use  them if they pay for it full price/discount price/free

2. “The Next Epidemic- Lessons from Ebola” by Bill Gates

https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f

7d8b7790a678/Readings/September%2013/nejmp1502918.pdf 

a. Discusses how we need to better prepare for the next epidemic

Questions:  

1. What is an example of a domestic cause of health?

a. Several possible answers from above

5: Cont’d Health 

Prevention- $  

-Spraying  

- Bednets

- Meds  

Treatment- $$

-Meds  

-Also: hospitalization, missed work, find child care, transport, etc.  

Sweden

- Candy Saturday: Policy that you can eat candy on Saturday. Swedish people love it.  They think USA is fat so they need it. And they think it is such a good idea.  - In the US, we love personal freedom, economic consequences

Root Causes of Unhealthy Choices - *always a combo, never just one thing* - Cost  

- Barriers to healthcare (lack of trust in healthcare)  

- Culture (“faith”)

- Time inconsistency

- Placebo effect (“drive to hope”)

Should health things (bednets) be free?

YES- economic barriers to use

NO-sunk costs

Readings:  

Banjeree and Duflo: Chapter 3

https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f 7d8b7790a678/Readings/September%2015/Banerjee%20and%20Duflo%20Ch.%203.pdf Summary:  

a. This chapter is discussing the poverty-health cycle and how health can be a poverty trap.  b. Discusses the location of countries (tropics) lead to greater disease (Malaria) which is  also associated with poverty

c. Talks about how access to clean water and sanitation have an impact on health d. Adding chlorine to water is a simple, cheap, and v effective way to decrease instances of  diarrhea

2. “Free Malaria Bednets”

https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f

7d8b7790a678/Readings/September%2015/IPA%20-%20Free%20Malaria%20Bednets.pdf a. Discusses the study conducted to see how likely people are to use a bed net if they  are given for free/discounted price/full price

b. Found that charging even at 90% discount, there was a large drop in demand

c. Found that women were just as likely to use it when its free as when they paid for  it

Questions: 

1. Why would Candy Saturday not be successful in US?

a. Because Americans are based on choices and freedom. Also because we love  candy too much and it would be rioted.  

2. Which of the following is not a root cause of unhealthy choices?

a. Cost

b. Culture

c. Lack of desire to be healthy

d. Barriers to healthcare

i. Answer: C

3. Does it cost more to treat or prevent diseases? Give an example

a. It costs a lot more to treat a disease such as malaria because a bednet could be  given for very cheap and it is very effective in protecting against malaria. If  infected, people would have to pay for the medicine, transportation to health  clinic, missed time from work, and possibly hospitalization.  

Recitation notes: 

Opportunity cost- value/cost of a decision that economic agents have let go ~FOMO~ Ex: going to school ???? cost of not working and getting work

Private goods

Excludable- consumption of one agents prevents consumption of another  Rivalrous- consumption of one agent reduces the amount available for all others  Public goods- are non-excludable and nonrivalrous  

Ex: roads, schools, treated water, etc.

Externalities- when a transaction has an impact on an agent (individual) who did not participate  in the transaction  

Ex: negative- motorcycle noise, smoking, CO2 emisions

Positive- vaccines (herd immunity)

Moral hazard- the risk a party to a transaction takes on after the transaction happened because  of lack of info  

Ex: not telling someone about side effects of medicine

Adverse selection- when one party has more info than the other and uses it to their benefit Ex: care salesman, free food at event

Ex: refusing to insure an entire city because of a high rate HIV

Time inconsistency- when an economic agent’s decision is not the same over time even if the  conditions and factors are the same

6: Cont’d Health 

Core Functions of WHO: 

Leadership

Partnerships

Research agenda

Norms and standards

Policy options

Technical support

Monitoring health/health trends

Governmental Public Health Infrastructure: 

Community

Clinical care delivery system

Employers and business

The media

Education Sector

Government agencies (other than public health)

Types of healthcare policies:

1. Build institutions- indirect- $$$$

a. Governance reform

b. Capacity building (training)

c. Monitoring and transparency- publicize

2. Build infrastructure- direct- $$$

a. Build facilities (laboratories, hospitals, etc.)

b. Improve coordination across facilities

c. Develop oversight systems (manage facilities)

3. Develop Human Resources- direct- $$

a. Global health workforce

b. Provide more training

c. Refine performance training and incentives

4. Provide Consumable inputs- direct- $

a. Healthcare supplies

b. Preventative tools

c. Treatments (procedures)

i. Bed-nets, deworming, etc.  

ii. Deworming:

1. Administer at school level (policy)

2. Worms infection rate decreases (imediate)

3. School attendance increases (short-term)

4. Health growth (long term)

5. Education increases (long term)

6. Employment increases (long term)

7. Spillover:  

a. kids who miss school don’t get deworm med

b. kids that are too young do not get meds  

Role of Intermediaries: 

-Health is an individual level outcome ????Public health interventions are inherently  disaggregated and labor-intensive

-Intermediaries critical to “deliver” public health policies

-Examples:  

- PTA Committees in Kenya for worms treatment

- Chiefs in Malawi for childbirth health

- Radio stations in India for sanitation  

Readings: 

“Deworming: A Best Buy for Development”

https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f

7d8b7790a678/Readings/September%2020/deworming_policy_briefcase.pdf Summary:

a. This article discusses the study conducted that looked at deworming students at a  school in Kenya and the methods of the experiment

b. Saw that many children were not attending class due to worms

c. Gave deworming meds and saw increase in attendance and rise in health overall in the  kids and their neighbors

Questions: 

1. Give an example of how giving a consumable input is beneficial.

a. Discuss deworming project

b. Or discuss the bednets

2. How can developing human resource increase health?

a. Healthcare providers can be more knowledgeable across a range of subjects, can  spend their time more efficiently, therefore mor patients can be seen and  treated correctly

3. Name of a function of the WHO

a. Leadership, Partnerships, Research agenda, Norms and standards, Policy options,  Technical support, Monitoring health/health trends

7: Refugees 

Migration- moving from one place to another, either temporarily or permanently -Focus: cross- country

Migrant- moving from one place to another (voluntarily, typically for money/opportunities) Refugee- fleeing from one place to another (involuntarily)

-Natural disaster, gov. pressure, civil wars

-Fear of being persecuted for race, religion, nationality, membership in social group, or  political pinion

Who decides who is a refugee?

-The receiving country government and the UNHCR (United Nations High Commissioner for Refugees)

Screening process:  

- Collect ID documents

- Perform initial Assessment

o Biodata

o Biometric

- Interview

o Initial info checked again

- Only applicants who are strong candidates move forward

- <1% of global refugee population actually move forward

High Stakes decision for refugees: 

Safety, freedom, medical care, schooling, right to work

Interests of both refugees and host countries – “migrants lets nations off the hook”

Revealed preference- “best” option among alternatives revealed by the choices people make - People who think “are the refugees really that bad?” From evidence of people  continuing to die out at sea trying to get to new destination proves that yes, it  probably is that bad in their original country

Timing of Outcomes 

- Immediate- As soon as policy is implemented, this outcome is affected o Almost always mechanical  

o Offensively obvious

- Short term/ Intermediate- Affected by policy “downstream” still direct effect - Long term-slow moving (often indirectly)

- Adverse/perverse- negative effect of policy

- Spillover/Externality- Effect on those that were not intended beneficiaries

- Unintended- effect not intended by policy makers

Theory of Change: Reading:  

(Economic impact of refugees; https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed 9c7f-7d8b7790a678/Readings/September%2022/PNAS-2016-Taylor-7449-53.pdf )

Policy- giving cash/food to refugees in UNHCR camps in Rwanda 

a. Immediate: cash/food surplus of refugees

b. Short-term: what they do with the money/food

c. Long-term:  

a. Income within 10 K radius and average household income

b. Effect on local economy (multiplier effect)

c. Employment rate; commerce

d. Adverse: Refugees who sold food drove prices down

Reading:  

1. “5 Things You Need to Know about the European Migrant Crisis” by Virginie Guiraudon  https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f

7d8b7790a678/Readings/September%2022/Five%20Things%20About%20Migrant%20Cr isis%20Monkey%20Cage.pdf 

Summary: This article reveals the main points that are necessary to know about the  European migrant crisis

a. 1- Are we witnessing an unprecedented “refugee crisis” in Europe? Yes and no. i. It is not larger than what has occurred in history before, but there are a  large number

b. 2- Why do people fleeing conflict resort to paying smugglers and taking  dangerous sea and land routes?

i. West European states started implementing measures to prevent asylum seekers from arriving on their territory in the 1980s, including requiring  

people crossing their borders to have passports with proper visas and  

requiring transportation companies to verify those documents.

c. 3- Why are people dying at sea trying to get to Europe?

i. Few boats now go to the Canary Islands or brave the Gibraltar Straits.  

Smugglers prefer other passages to Europe, through Turkey or Greece.  

Many people now try to cross from Libya to Lampedusa, an island south  

of Italy, because there is less supervision of the Libyan coast.

d. 4- Where do most refugees end up?

i. More than 80 percent of people fleeing conflict end up in neighboring  

countries.

e. 5- Where do people fleeing conflict to Europe want to go?

i. People want to go to Britain despite public hostility toward refugees and  unwelcoming policies because they have kinship networks, know English  and have professional skills that will help them integrate into the labor  

market. People aren’t going to Sweden because they like cold weather.  

They are going because Sweden has been welcoming in the past and, thus,

hosts a large number of populations from the Middle East and northern  Africa.

2. “Migrant or refugee? That shouldn’t be a life or death question” by Jill Goldenziel https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f

7d8b7790a678/Readings/September%2022/Migrant%20or%20refugeey%20Monkey%20 Cage.pdf 

a. Summary: This article is discussing the need for a new international law to define  refugees as more than what they are as migrants basically have no rights and can’t  be considered a refugee legally when they, too, are living in fear back home.

b. Under international law, a refugee is a person who has fled her country based on a  well-founded fear of persecution on the basis of race, religion, nationality,  political opinion, or membership in a particular social group.

c. The word “migrant” is commonly used to refer to anyone coming to another  country to seek work, refuge, escape from war, or otherwise. By using the term  “migrant” and lumping these groups under it, public figures and the media imply  that Europe owes them nothing. Many Syrians fleeing to Europe would not  qualify as refugees under international law, and therefore can be deported home.  Flight from generalized violence and war is not enough to claim refugee status.

d. International law alone will not solve the migration crisis. But changing  international law would go a long way toward relieving human suffering. No  matter what one calls desperate, fleeing human beings, international law should  treat them with dignity.

3. “Economic Impact of refugees” by J. Edward Taylora,1, Mateusz J. Filipskib ,  Mohamad Allousha , Anubhab Guptaa , Ruben Irvin Rojas Valdesa , and Ernesto  Gonzalez-Estrada

a. https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f 7d8b7790a678/Readings/September%2022/PNAS-2016-Taylor-7449-53.pdf b. Summary: In 2015, the United Nations High Commission for Refugees  accommodated over 15 million refugees, mostly in refugee camps in developing  countries. The World Food Program provided these refugees with food aid, in  cash or in kind. Refugees’ impacts on host countries are controversial and little  understood. This unique study analyzes the economic impacts of refugees on host country economies within a 10-km radius of three Congolese refugee camps in  Rwanda

c. Simulations using Monte Carlo methods reveal that cash aid to refugees creates  significant positive income spillovers to hostcountry businesses and households.  An additional adult refugee receiving cash aid increases annual real income in the  local economy by $205 to $253, significantly more than the $120–$126 in aid  each refugee receives.

d. Our simulations do not include the impacts of constructing, maintaining, or  expanding refugee camps.

e. Our simulations reveal that refugees, given the opportunity to interact with the  economy around them, can create positive income spillovers for host-country  households. Congolese refugees in Rwanda appear to generate considerably more  income than the cash aid they receive. However, spillovers are smaller when  refugee aid is in the form of food instead of cash, a finding potentially relevant for

aid programs in general as well as refugee aid in particular. Access to supplies of  food and other commodities, along with the cash to interact with the local  economy, are critical to refugee welfare and refugees’ potential to create benefits  for the host country.

Questions: 

1. What is the difference between a migrant and a refugee?

a. A migrant is someone who choose to leave their home country to look for new  opportunities or to make more money. A refugee is someone is fleeing their  home country because they fear persecution of race, gender, sexual orientation,  religion, political opinion, etc.  

2. How much of the refugee population actually makes it through the entire process and  moves to a new place?

a. <1%

3. Give an example of a spillover outcome in a policy?

a. In the Rwanda study, the participants spend the cash given to them to buy food  from local farmers. This creates a positive spillover as the farmers receive  benefits even though they were not the intended beneficiaries

8: Cont’d Refugees 

New York Declaration: 

- Protect human rights of all refugees and migrants

o Women’s rights and help find solution

- Ensure education of children of refugees

- Prevent and respond to sexual and gender violence

- Support those countries rescuing, receiving and hosting large numbers of refugees and  migrants.

- Work towards ending the practice of detaining children for the purposes of determining  their migration status.

- Condemn xenophobia

- Strengthen the positive contributions made by migrants to economic and social  development in their host countries.

- Improve the delivery of humanitarian and development assistance to those countries most  affected, including through innovative multilateral financial solutions, with the goal of  closing all funding gaps.

- Implement a comprehensive refugee response, based on a new framework that sets out the  responsibility of Member States, civil society partners and the UN system, whenever there is  a large movement of refugees or a protracted refugee situation.

- Find new homes for all refugees identified by UNHCR as needing resettlement; and expand  the opportunities for refugees to relocate to other countries through, for example, labour  mobility or education schemes.

- Strengthen the global governance of migration by bringing the International Organization  for Migration into the UN system.

Weaknesses of NY Declaration:

- General specific  

- New solutions- doesn’t have any

- Lack of new understanding of “Persecution”

- Consequences for noncompliance- doesn’t have any

- Cross-national coordination

o Ex: assessing refugees- where they are, where they go, status

- It’s very reactive, instead of proactive/beyond relief

Refugee Policy Tools in Receiving Countries: 

- Border control-limiting “illegal” immigration

- Resettlement/integration in new place

- Immediate needs (camps)

- Quotas- limiting #s by country, skill level, English knowledge

- Visa restrictions- restricting time of visas, adjusting categories of visas, raising  requirements to obtain visas

- Employer Restrictions/Incentives- Restricting and imposing costs on employing  immigrants or instead providing incentives to help “match” immigrants to  opportunities

- Benefits Restrictions/Promotion- limiting or subsidizing services

- Resettlement support- language lessons, housing searches, paying for flights

Descriptive vs Causal Research 

Descriptive- describes what is happening, “snapshot” of data 

∙ Depict patterns, methods can be used to describe evidence

∙ Article about newspapers

∙ Shows that there is negative thoughts on refugees

∙ There is divisive “us vs. them” mentality

∙ For research paper: methods can be used to describe evidence

Causal- attempt to determine cause and effect 

∙ Depict causal relationship b/w variables

∙ For research paper: what we want to do in pape

o Determine cause and effect of policy

Definitely read articles for today- WILL BE ON EXAM 

Johnson chapter 1: https://sakai.unc.edu/access/content/group/02b17a89-e5c8- 40ed-9c7f-7d8b7790a678/Readings/September%2029/Johnston%20Ch.%201.pdf And Collier chapter 5

Criteria for Causal Relationship: 

- Temporal precedence ???? no reverse causality

- Covariation of cause and effect, but not spurious

o Cause and effect go together always (when there is no cause, there is no  effect)

- No plausible alternative explanations???? no common cause

o 90% of our paper

o No alternative explanation (3rd variable)

o Discuss selection bias

o Prove your cases are very similar (selection bias) so there is no 3rd variable o Think: “What evidence would make me think otherwise?”

- Example:  

o There was research done that said going on a honeymoon could decrease the  chance of divorce  

o Saying that not going on a honeymoon causes divorce

o Several plausible explanations for this:

▪ Honeymoons Improve Marriage ???? Causal Relationship

▪ Marriage Improves Honeymoons ???? Reverse Causality

▪ Something Else Affects Marriage and Honeymoons ???? Common Cause ▪ Marriage and Honeymoons Covary by Chance ???? Spurious Correlation

Readings:  

1. “The representation of refugees, asylum seekers and immigrants in British  newspapers” by Majid KhosraviNik

a. https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f 7d8b7790a678/Readings/September%2027/Content%20Analysis%20of%20News paper%20Coverage.pdf 

2. “When lives are put on hold: Lengthy asylum processes decrease employment  among refugees ” by Jens Hainmueller, Dominik Hangartner, Duncan Lawrence a. https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f 7d8b7790a678/Readings/September%2027/Hainmueller.pdf 

Questions: 

1. What is the criteria for a causal relationship?

a. Temporal precedence, covariation of cause and effect that is not spurious, and  no other plausible explanation for the relationship

2. What is an example of a refugee policy in receiving countries?

a. Resettlement support such as paying for flights to location and help with search  for housing and food

3. What is one weakness of the New York Declaration?

a. There are no consequences for noncompliance

9: Corruption 

Corruption is defined as an individual illicitly putting their personal interests above those of  the people they have to serve

Use of public office for private gain—Self-interest

Individual forms of corruption:

- Embezzlement- theft of public funds

- Bribery- taking payment for serice ???? quid pro quo exchange

- Maybe

o Inefficiency- like officials with 2 jobs (cannot spend adequate time and  energy into their public office job)

o Failing to follow procedures and rules not being monitored so no  

consequences

▪ Nepotism or favoritism with friends’ companies

o Tax rate manipulation

o Nepotism- unqualified person or person not competing for job

- Separate from society-level “syndromes” of corruption as discussed in Johnston’s  book

What causes corruption? 

∙ Lack of transparency and oversight

∙ Individual differences of people

∙ Financial incentive/economic need

∙ Nigeria: very corrupt because new governemtn

o Corrupt culture/beliefs

∙ Asymetric info b/w officals and citizens

∙ Limited oversight and few consequences

∙ Culture- Gift giving or patronage

o In Malawi, people thank leaders by giving gifts (not corrupt) but can get  blurry (bc officials may begin to do things solely for those gifts, or not do  things when they do not get gifts)

o Have t-shirts that say “corruption is not our culture”

∙ Quote from evaluation officer: “poor salaries lead to corruption” 

Why is it a policy issue? 

- Expensive for societies

- Marginalizes groups of citizens

- Barrier to development

o There is a researched negative relationship between country’s economy and  level of corruptness

- Barrier to government effectiveness

o Aid theft/Diversion

Corruption is expensive! 

▪ In Malawi, 82% say corruption problem in district

▪ 40% income from corruption

▪ 70% officials corrupt in last six months  

▪ 7% - 28% of transactions involve corruption

Corruption is a tax

- Research in Malawi was done to look at bribery from taxi drivers to police officers o Powerful rich people (portrayed as taxi drivers) paid less in bribes than  poorly portrayed people

o 93% of drivers were stopped, and 2/3 of those paid a bribe

Corruption impedes government efficiency

- Take resources from aid for their own personal gain

Readings:

1. Johnson Chapter 1:

a. https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f 7d8b7790a678/Readings/September%2029/Johnston%20Ch.%201.pdf 

b. Deep deomocratization- continuing process of building workable rules and  accountability by bringing more voices and interests into the governing process. It is “deep” by drawing from many levels of society and it extends deep into the  institutions and proves of gvernemtn.

c. Syndromes:

i. Influence Markets- private wealth interests seek influence over specific  processes and decisions w/I strong public institutions (bribery and  

channeling funds to/thru political figures) (ex: US, Japan, and Germany)

ii. Elite Cartels- elites ( political, bureaucratic, business, military, etc_  

maintain high-level collusive networks by sharing corrupt benefits and  

stave off political and economic competition (Ex: Italy, South Korea, and  Botswana)

iii. Oligarchs and Clans- small number of contentious elites backed by  

personal or family followings pursue wealth and power in weak  

institutions using bribes and connections and sometimes violence to get  what they want (Ex: Russia, Philippines, and Mexico)

iv. Official Moguls- powerful individuals and small groups, either domination  undemocratic regimes or enjoying the protection of those who do, use  

state and personal power, to enrich themselves with impunity. Loyalties

are from personal or political sources of power rather than official. (Ex:  China, Kenya, and Suharto’s Indonesia)

Questions:

1. Why is corruption a policy issue?

a. It is expensive, a barrier to development and government efficiency, as well as  marginalizes a group of people

2. Name, define, and give an example of a type of corruption

a. Nepotism is when a position is given to someone because they are a family  member or friend, are unqualified, and had no competition for the job. An  example could be a governor choosing his son to work for him even though he  has no education or training in politics.

10: Cont’d Corruption 

Measures take several forms- need to “triangulate” to show finding is robust ∙ Direct Quantitative Measurement- data on variables capturing concepts exactly o May still be issues in conceptualization pertaining to differences in definition ∙ Indirect Quantitative Measurement- data on proxy variables capturing related  concepts

o Proxy= very close to actual variable you want to study

o Ex: type of roof is a good proxy variable for level of income

∙ Qualitative Measurement- Info from media, interviews, Facebook posts, etc.

Two Ever-Present Challenges: 

∙ Measurement error: no measure is perfectly operationalized  

o Systemic constant bias- always under or always over by same amount ▪ OK

o Systemic variable bias- always under or always over by different amounts ▪ Not OK

o Random constant bias-same level of difference but can be over or under. ▪ OK

o Random variable bias- can be under or over-estimated by a different amount ▪ Eh

∙ Selection bias/missing data- data missing for set of units

o Ex: rich people, employed people, villages farthest from roads, etc.  

Sources of Qualitative data 

∙ Cross-National (at country level)

o Nation Master

o CIA World Factbook

o World Bank- Worldwide gov. indicators

o Transparency International- Corruption Barometer, Corruption Perceptions  Index

o Varieties of Democracy

o Quality of Government

o ICRG

∙ Cross-National and Sub-National (at individual level):

o Afrobrarometer

o Americac Barometer

o Asia Barometer

o Arab Barometer

Policy Tools for Affecting Corruption: 

∙ Decrease Motivation- individual factors

o Pay scale

o Meritocracy- allow people to be promoted due to merit

▪ Ceiling with this bc you can only go so far up in public offices

o Performance evaluation

o Performance evaluation tied to merit bonuses

∙ Decrease Opportunities- institutional design

o Institutional design ???? democratic institution  

▪ Separation of power- checks and balances

▪ Selection mechanisms-

∙ free and fair elections

∙ ability for citizens to kick officials out  

▪ BUT corruption is lowest in most and least democratic countries  ∙ Inverted U ???? “deep democratizatoion”

o Removing “human error”

▪ Taking people out altogether

∙ Ex: “smart card” in India from reading  

∙ Increase Transparency- monitoring

o Anti-corruption Bureau

o Whistle Blowing

o Information Campaigns

o Text Message Campaign

o Telling people how corrupt their officials are

o Consequences for corruption

o Regulation for how elections should be

o Define corruption and compare to other people/countries  

∙ Increase Accountability- Punishment and Rewards

o Necessary for transparency

o Known mechanism for voicing concerns

▪ Elections

▪ Letters to higher level officials

▪ Torching buildings

▪ Refusing to pay taxes

▪ Traditional protest

o But they don’t take hold. Why?

▪ Actions must have consequences- “teeth”

▪ Actions must be publicized (citizens need to know they are available  to them)

▪ Common understanding of “good” officials

Readings:

Collecting Evidence for Policy Memos 

-Theory/Hypothesis: IV (independent variable= Intervention/policy) leads to DV (dependent  variable=outcome)

-“Measure” of IV- specific policy change in a country  

-In order to test hypotheses, you need to “operationalize” outcomes  

-Translate them from concepts to measures  

Measures take several forms- need to “triangulate” to show finding is robust ∙ Direct Quantitative Measurement- data on variables capturing concepts exactly o May still be issues in conceptualization pertaining to differences in definition ∙ Indirect Quantitative Measurement- data on proxy variables capturing related  concepts

o Proxy= very close to actual variable you want to study

o Ex: type of roof is a good proxy variable for level of income

∙ Qualitative Measurement- Info from media, interviews, Facebook posts, etc.

Two Ever-Present Challenges: 

∙ Measurement error: no measure is perfectly operationalized  

o Systemic constant bias- always under or always over by same amount ▪ OK

o Systemic variable bias- always under or always over by different amounts ▪ Not OK

o Random constant bias-same level of difference but can be over or under. ▪ OK

o Random variable bias- can be under or over-estimated by a different amount ▪ Eh

∙ Selection bias/missing data- data missing for set of units

o Ex: rich people, employed people, villages farthest from roads, etc.  

Sources of Qualitative data 

∙ Cross-National (at country level)

o Nation Master

o CIA World Factbook

o World Bank- Worldwide gov. indicators

o Transparency International- Corruption Barometer, Corruption Perceptions  Index

o Varieties of Democracy

o Quality of Government

o ICRG

∙ Cross-National and Sub-National (at individual level):

o Afrobrarometer

o Americac Barometer

o Asia Barometer

o Arab Barometer

Policy Tools for Affecting Corruption: 

∙ Decrease Motivation- individual factors

o Pay scale

o Meritocracy- allow people to be promoted due to merit

▪ Ceiling with this bc you can only go so far up in public offices

o Performance evaluation

o Performance evaluation tied to merit bonuses

∙ Decrease Opportunities- institutional design

o Institutional design ???? democratic institution  

▪ Separation of power- checks and balances

▪ Selection mechanisms-

∙ free and fair elections

∙ ability for citizens to kick officials out  

▪ BUT corruption is lowest in most and least democratic countries  

∙ Inverted U ???? “deep democratizatoion”

o Removing “human error”

▪ Taking people out altogether

∙ Ex: “smart card” in India from reading  

∙ Increase Transparency- monitoring

o Anti-corruption Bureau

o Whistle Blowing

o Information Campaigns

o Text Message Campaign

o Telling people how corrupt their officials are

o Consequences for corruption

o Regulation for how elections should be

o Define corruption and compare to other people/countries  

∙ Increase Accountability- Punishment and Rewards

o Necessary for transparency

o Known mechanism for voicing concerns

▪ Elections

▪ Letters to higher level officials

▪ Torching buildings

▪ Refusing to pay taxes

▪ Traditional protest

o But they don’t take hold. Why?

▪ Actions must have consequences- “teeth”

▪ Actions must be publicized (citizens need to know they are available  to them)

▪ Common understanding of “good” officials

Collecting Evidence for Policy Memos 

-Theory/Hypothesis: IV (independent variable= Intervention/policy) leads to DV (dependent  variable=outcome)

-“Measure” of IV- specific policy change in a country  

-In order to test hypotheses, you need to “operationalize” outcomes  

-Translate them from concepts to measures  

Measures take several forms- need to “triangulate” to show finding is robust ∙ Direct Quantitative Measurement- data on variables capturing concepts exactly o May still be issues in conceptualization pertaining to differences in definition ∙ Indirect Quantitative Measurement- data on proxy variables capturing related  concepts

o Proxy= very close to actual variable you want to study

o Ex: type of roof is a good proxy variable for level of income

∙ Qualitative Measurement- Info from media, interviews, Facebook posts, etc.

Two Ever-Present Challenges: 

∙ Measurement error: no measure is perfectly operationalized  

o Systemic constant bias- always under or always over by same amount ▪ OK

o Systemic variable bias- always under or always over by different amounts ▪ Not OK

o Random constant bias-same level of difference but can be over or under. ▪ OK

o Random variable bias- can be under or over-estimated by a different amount ▪ Eh

∙ Selection bias/missing data- data missing for set of units

o Ex: rich people, employed people, villages farthest from roads, etc.  

Sources of Qualitative data 

∙ Cross-National (at country level)

o Nation Master

o CIA World Factbook

o World Bank- Worldwide gov. indicators

o Transparency International- Corruption Barometer, Corruption Perceptions  Index

o Varieties of Democracy

o Quality of Government

o ICRG

∙ Cross-National and Sub-National (at individual level):

o Afrobrarometer

o Americac Barometer

o Asia Barometer

o Arab Barometer

Policy Tools for Affecting Corruption: 

∙ Decrease Motivation- individual factors

o Pay scale

o Meritocracy- allow people to be promoted due to merit

▪ Ceiling with this bc you can only go so far up in public offices

o Performance evaluation

o Performance evaluation tied to merit bonuses

∙ Decrease Opportunities- institutional design

o Institutional design ???? democratic institution  

▪ Separation of power- checks and balances

▪ Selection mechanisms-

∙ free and fair elections

∙ ability for citizens to kick officials out  

▪ BUT corruption is lowest in most and least democratic countries  

∙ Inverted U ???? “deep democratizatoion”

o Removing “human error”

▪ Taking people out altogether

∙ Ex: “smart card” in India from reading  

∙ Increase Transparency- monitoring

o Anti-corruption Bureau

o Whistle Blowing

o Information Campaigns

o Text Message Campaign

o Telling people how corrupt their officials are

o Consequences for corruption

o Regulation for how elections should be

o Define corruption and compare to other people/countries  

∙ Increase Accountability- Punishment and Rewards

o Necessary for transparency

o Known mechanism for voicing concerns

▪ Elections

▪ Letters to higher level officials

▪ Torching buildings

▪ Refusing to pay taxes

▪ Traditional protest

o But they don’t take hold. Why?

▪ Actions must have consequences- “teeth”

▪ Actions must be publicized (citizens need to know they are available  to them)

▪ Common understanding of “good” officials

Collecting Evidence for Policy Memos 

-Theory/Hypothesis: IV (independent variable= Intervention/policy) leads to DV (dependent  variable=outcome)

-“Measure” of IV- specific policy change in a country  

-In order to test hypotheses, you need to “operationalize” outcomes  

-Translate them from concepts to measures  

Measures take several forms- need to “triangulate” to show finding is robust ∙ Direct Quantitative Measurement- data on variables capturing concepts exactly o May still be issues in conceptualization pertaining to differences in definition ∙ Indirect Quantitative Measurement- data on proxy variables capturing related  concepts

o Proxy= very close to actual variable you want to study

o Ex: type of roof is a good proxy variable for level of income

∙ Qualitative Measurement- Info from media, interviews, Facebook posts, etc.

Two Ever-Present Challenges: 

∙ Measurement error: no measure is perfectly operationalized  

o Systemic constant bias- always under or always over by same amount ▪ OK

o Systemic variable bias- always under or always over by different amounts ▪ Not OK

o Random constant bias-same level of difference but can be over or under. ▪ OK

o Random variable bias- can be under or over-estimated by a different amount ▪ Eh

∙ Selection bias/missing data- data missing for set of units

o Ex: rich people, employed people, villages farthest from roads, etc.  

Sources of Qualitative data 

∙ Cross-National (at country level)

o Nation Master

o CIA World Factbook

o World Bank- Worldwide gov. indicators

o Transparency International- Corruption Barometer, Corruption Perceptions  Index

o Varieties of Democracy

o Quality of Government

o ICRG

∙ Cross-National and Sub-National (at individual level):

o Afrobrarometer

o Americac Barometer

o Asia Barometer

o Arab Barometer

Policy Tools for Affecting Corruption: 

∙ Decrease Motivation- individual factors

o Pay scale

o Meritocracy- allow people to be promoted due to merit

▪ Ceiling with this bc you can only go so far up in public offices

o Performance evaluation

o Performance evaluation tied to merit bonuses

∙ Decrease Opportunities- institutional design

o Institutional design ???? democratic institution  

▪ Separation of power- checks and balances

▪ Selection mechanisms-

∙ free and fair elections

∙ ability for citizens to kick officials out  

▪ BUT corruption is lowest in most and least democratic countries  

∙ Inverted U ???? “deep democratizatoion”

o Removing “human error”

▪ Taking people out altogether

∙ Ex: “smart card” in India from reading  

∙ Increase Transparency- monitoring

o Anti-corruption Bureau

o Whistle Blowing

o Information Campaigns

o Text Message Campaign

o Telling people how corrupt their officials are

o Consequences for corruption

o Regulation for how elections should be

o Define corruption and compare to other people/countries  

∙ Increase Accountability- Punishment and Rewards

o Necessary for transparency

o Known mechanism for voicing concerns

▪ Elections

▪ Letters to higher level officials

▪ Torching buildings

▪ Refusing to pay taxes

▪ Traditional protest

o But they don’t take hold. Why?

▪ Actions must have consequences- “teeth”

▪ Actions must be publicized (citizens need to know they are available  to them)

▪ Common understanding of “good” officials

Readings: 

1. “The Impact of Smartcard Electronic Transfers on Public Distribution” by Karthik  Muralidharan, Paul Niehaus, Sandip Sukhtankar

a. https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f

7d8b7790a678/Readings/October%204/IPA%20- 

%20The%20Impact%20of%20Smartcard%20Electronic%20Transfers%20on%20 Public%20Distribution.pdf 

b. This paper discusses the study done in India where they gave people electric  money on “smart cards” instead if through people

c. It resulted in a faster and less corrupt payments process without adversely  affecting program access. Investing in Smartcards was cost-effective, and  beneficiaries overwhelmingly approved the new payment system.

d. Researchers found that the Smartcard program reduced the time it took  beneficiaries to receive payments, reduced leakages, and increased beneficiary  satisfaction, even though it was not fully implemented.  

e. This is “removing human error” and decreasing opportunity of corruption 2. “Trucking in Cameroon The road to hell is unpaved” from The Economist a. https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f

7d8b7790a678/Readings/October%204/Trucking%20in%20Cameroon.pdf b. This article discusses the trip of beer in a truck through Cameroon and the  struggles faced along the way

c. On the 313 mile journey, they were stopped by road blocks 47 times

d. Sometimes, they merely gawped into the cab or glanced at the driver's papers for  a few seconds. But the more aggressive ones detained us somewhat longer. Some  asked for beer. Some complained that they were hungry.. One asked for pills,  lamenting that he had indigestion. But most wanted hard cash, and figured that the  best way to get it was to harass motorists until bribed to lay off. At every other  road-block, the policemen checked to see whether the truck was carrying a fire.

e. Most Cameroonian roads are unpaved: long stretches of rutty red laterite soil with  sheer ditches on either side. Dirt roads are fine so long as it does not rain, but  Cameroon is largely rainforest, where it rains often and hard.This caused lots of  delays

f. No matter how hard Guinness tries, however, the bars that sell its brew sometimes  run dry

g. In short, the governments of poor countries ought to pay more attention to their  roads. A good first step in Cameroon would be to lift those road-blocks and put  the police to work repairing potholes.

Questions: 

1. Name the four ways to decrease corruption

a. Decrease motivation, decrease opportunity, increase transparency, and increase  accountability

2. Describe one of each above:

a. Decrease moticvation- increase salaries

b. Decrease opportunity- remove human error/humans altogether

c. Increase transparency- inform citizens of how their officals are being corrupt d. Increase transparency- giving rewards/incentives for not being corrupt and  giving punishments when they are corrupt

3. Which of the following is the worst type of measurement error to have? a. Systemic variable bias

b. Systemic constant bias

c. Random variable bias

d. Random constant bias

i. Answer: A

11: Cont’d Corruption and Governance 

Outcomes of Anti-Corruption Policy: 

Most obvious- Reduce corruption

Challenge- Hard to measure

How do we measure?

∙ Perceptions data (cross-national)- anyone, residents, etc. gives their opinion on how  corrupt X is.

∙ Behavior data (sub-national)- data on corrupt officials

o Difficult to collect

Perceptions Data: 

∙ Expert perceptions

o Transparency Internatonal

o World Bank

o International Country Risk Guide

o Quality of Government Institute

o Varieties of Democracy Project (V-DEM)

∙ Citizen Perception

o _______ Barometers (Afro, Asia, America, etc.)

o If they have experienced personally, in their city, etc.

o Challenges:

▪ Experiences vary

▪ People lie when reporting

▪ Different definitions of corruption

▪ May not be aware of corrupt things happening around them

Problems w/ Perception data: 

∙ Measured with error

o Those answering do not have all info

o Or they do not know about certain kinds of corruption

∙ Bundle Indices- no definition of “corruption”

o Aggregation methods not precise and not published  

o Not V-DEM

∙ Cross county comparability challenges (not V-DEM)

∙ Cannot compare trends over time (not V-DEM)

Behavior data: 

∙ “On paper” audits

o look at receipts, etc.

o Problems:  

▪ only catches corrupt activities that have paper trail

▪ Doesn’t show who did it or where it went

▪ Officials can make their paperwork look good and/or disappear ∙ “Real life” audits

o go look at physical things/projects governments are supposed to do o Indonesia Road Project Committee- MIT (?) student engineers went to  Indonesia to build fake roads then compared with the locals to see if the  locals were diluting any materials (if they were stolen, etc)

o Problems:

▪ Very expensive

▪ MIT engineers probably made different roads with different  

techniques than the locals

∙ Behavioral observation

o Go to meetings and see how much time is spent doing what

o Such as: speeches, questions, critical analysis, etc.

o Problems:

▪ Inferences are made on how corrupt government is by their time  spent doing certain things (not based off facts)

▪ People change when they know they are being observed

▪ Getting data on attendance, speeches, and other things that are NOT  about corruption= bad measure

∙ Undercover behavioral observation

o Zimmerman’s study with taxi driver and bribery

o Problems:

▪ Sample size may be too low

▪ Data may not be valid because other people are being sent out ▪ Not a random sample

▪ Unethical/dangerous for the people acting undercover

∙ Direct Reporting

o Giving straight forward surveys to officials and asking about their  participation in or knowledge of corrupt activities

o Questionnaire given to district officials in Malawi

o Problems:

▪ People will lie when self-reporting

▪ Underreport corruption by ~24%

∙ Direct Reporting keeping

o Extremely rare, but super useful

o Police chief in Peru kept receipts of all the bribery  

o Kept them from the media to hide certain events

o Problems:

▪ Extremely rare

Readings:  

1. “Anti-Corruption Strategies in Foreign Aid: From Controls to Results” by William  Savedoff

a. https://sakai.unc.edu/access/content/group/02b17a89-e5c8-40ed-9c7f 7d8b7790a678/Readings/October%206/CGD-policy-paper-Savedoff

anticorruption-agenda.pdf 

b. This essay looks at how foreign aid agencies have changed the way they deal with  corruption over the last 25 years in terms of improving the integrity of funders  and recipients while strengthening international cooperation. It argues that current  approaches rely primarily on transactional controls and, to a lesser extent, on  investments in transparency and raising global standards of governance. Much  less is being done with regard to selectivity and paying for results.

c. Bilateral and multilateral agencies have undertaken a series of measures to  improve their integrity as funders of development programs. by clarifying codes  of conduct and training their staff; by strengthening audit controls; and in some  cases establishing new or specialized investigative offices. They have explicitly  undertaken peer reviews to learn from each other and improve their practices.

d. Bilateral and multilateral agencies have sought to improve the integrity of  recipients. These activities include direct support for creating anticorruption  commissions, building investigative and judicial institutions, implementing new  public procurement systems, and establishing public financial management  practices that mimic institutions common in high-income countries.  

e. Global anticorruption support- They include legal conventions that clarify abuses  and facilitate international cooperation in prosecuting fraud and abuse, like the  OECD Anti-Bribery Convention and the United Nations Convention Against  Bribery. They also include efforts to increase the transparency and accountability  of international transactions, such as the Extractive Industries Transparency  Initiative (EITI), The Financial Action Task Force on Money Laundering (FATF),  or the International Aid Transparency Initiative (IATI). Other global initiatives  aimed at corruption include research into the causes, consequences, and extent of corruption; public rankings of corruption

f. One tradeoff [of anticorruption policies and actions] involves the direct cost of  applying procedures, monitoring compliance, auditing, investigating and applying  sanctions. If these costs are high relative to the amount of corruption or their  effectiveness at reduction corruption, then the effort may backfire

g. The ability of outside agents is quite limited in its ability to force recipient  countries to improve the control of corruption. Funders can certainly help  countries that are committed to reducing corruption for domestic political reasons  with political support and access to technical assistance. But without domestic  political motivation, outside pressures are unlikely to make lasting impressions. Questions: 

1. What is the difference between perceptions data and behavior data? a. Perceptions data is straight up asking people about corrupt activities that either  they’ve acted in or have seen. Behavior data is just looking at the behavior of  people to determine their corruptness.

2. Give an example of undercover behavior observation and one problem that could arise? a. The undercover taxi drivers in Malawi looking fro bribery. One problem with this  is that it was not a random sample and was only in one area.

3. What is a problem with paper audits?

a. You can only detect corruption that has a paper trail and people are good at  making their paperwork “look clean” so you are likely to miss a lot.

DISCLAIMER: THESE ARE JUST THE NOTES I HAVE TAKEN ON LECTURES AND READING AND QUESTIONS I HAVE COME UP WITH TO STUDY. THIS IN NO WAY IS DEEMED CORRECT BY THE  PROFESSOR AND IS JUST TO HELP YOU IF YOU NEED IT.  

BEST OF LUCK STUDYING AND GOOD LUCK ON THE EXAM!!!!!

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