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WIDERAngle

January 2024

 
 
 
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Financing development goals in times of crisis  
by Antonio Savoia and Kunal Sen
 

Pursuing the global development agenda will require genuine commitment from political leaders and significant stepping-up of government efforts. But, above all, it will require increased financial resources. Where will these resources come from? We are at the mid-point of the 2030 Agenda for Sustainable Development and governments are grappling with multiple crises, the most evident of these being the economic aftermath of the COVID-19 pandemic, climate change, and the ongoing conflicts in Ukraine and Palestine.

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Blogs
 
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High wage inequality in South Africa – are employers to blame?
by Shakeba Foster
 
South Africa ranks as the world’s most unequal country by income. This is largely due to high wage inequality, given that wages are the main income source for the majority of the working population. Exploring the nuances of this inequality prompts a critical question: what is the extent of employers' role for these outcomes?
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Gender pay gaps on the rise in South Africa
by Michelle Pleace, Matthew Clance, and Nicky Nicholls
 
New analysis of income data in South Africa shows the gender pay gap—how much more men earn than women—has increased. According to findings from a study conducted by the SA-TIED programme, in 2021, women in South Africa earned 78 cents for every rand earned by men, compared to 89 cents in 2008. This is a loss for gender equality, a trend that should urgently be addressed.
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Accelerating progress towards the SDGs in Africa: focusing on three thematic priorities
by Malang Bojang
 
I was recently invited to attend an event and heard some of UNU-WIDER’s recent research findings and engaged in a discussion on SDG progress in Africa with experts from across policy and academic networks. The expert panel discussion centered on UNU-WIDER’s recent report on peace, decent work, and greater equality, where panelists took on the challenge to identify opportunities for action to accelerate the achievement of the SDGs.
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Improving early child development outcomes in low-income settings
by Patricia Justino, Marinella Leone, and Pierfrancesco Rolla
 

Improving early child development outcomes in low-income settings requires affordable, sustainable, and easily scalable solutions. The 'First Steps' programme in Rwanda has substantial positive effects on child development and offers a blueprint for interventions seeking to improve parental practices.

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Modelling to influence poverty and inequality in Zanzibar – latest addition to the SOUTHMOD programme
by Anna Toppari
 
ZANMOD, the tax-benefit microsimulation model for Zanzibar, was launched in November 2023. The model will aid local authorities and researchers in understanding how taxation and social protection policies can be improved to reduce poverty and enhance equality.
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Road in Mukono, Uganda. Photo by Antoine Plüss on Unsplash
 
Pre-colonial politics affects tax compliance in modern day Uganda
by Merima Ali and Odd-Helge Fjeldstad
 

Parts of Uganda that had centralized political systems before colonial rule are more likely to have higher rates of voluntary tax compliance. Merima Ali and Odd-Helge Fjeldstad look at why that might be the case.

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NEWS
 
Research results from administrative tax data gain traction in Uganda  
 

10 January 2024 | Research insights and policy recommendations presented in an in-person workshop organized on 15 November 2023 in Kampala gathered visibility in several Ugandan news outlets. The workshop, organized by the Uganda Revenue Authority (URA) and UNU-WIDER, presented the findings of research papers taking advantage of the URA firm panel, a dataset constructed from administrative corporate income tax (CIT) returns and firm registration data. The dataset can only be found at the URA secure research lab, launched in 2022 along with a call for papers.

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EVENTS
 
 
Achieving the SDGs despite slow growth 
7 February 2024
 
UNU-WIDER co-hosts an event with UN DESA to launch the 2024 World Economic Situation and Prospects report. Following a presentation of key findings from the report by Hamid Rashid, Chief of the Global Economic Monitoring Branch of UN DESA, a panel of esteemed experts debate the pathways and policies available to stimulate economic growth and accelerate progress towards the SDGs. 
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LDC Future Forum logo
 
Innovation for structural transformation in Least Developed Countries – LDC Future Forum
5–6 March 2024
 
The world is far off track from achieving the Sustainable Development Goals (SDGs), and the least developed countries (LDCs) are in danger of being left even further behind. With seven years left to 2030, we must urgently develop new ways to accelerate the needed transformations. Making better use of science, technology, and innovations is key in this task.
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WIDER Working Papers
 
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Working Paper

Polling during war – challenges and lessons from Ukraine

by Kit Rickard, Gerard Toal, Kristin M. Bakke, and John O'Loughlin

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Working Paper

What explains the disaster preparedness of micro-enterprises?
Examining socio-psychological characteristics and information provision

by Hanna Berkel and Finn Tarp

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Working Paper

Does it matter who you ask for time-use data?

by Deepti Sharma, Hema Swaminathan, and Rahul Lahoti

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Working Paper

The dynamics of formal employment during and after the COVID-19 pandemic in Uganda

by Kyle McNabb, Tina Kaidu Barugahara, and Susan Kavuma

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Working Paper

How should an optimal tax system react to a crisis? Simulation results for Zambia

by Dingquan Miao, Ravi Kanbur, and Jukka Pirttilä

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Man in front of vending machines at night. Photo by Victoriano Izquierdo on Unsplash
Working Paper

Exploring options to deepen and broaden the personal income tax base in South Africa

by Gemma Wright et al.

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Working Paper

Job accessibility and spatial equity – a City of Cape Town case study

by Jacomien van der Merwe and Tom de Jong

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Working Paper

Mobile Internet and income improvement –
evidence from Viet Nam

by Trang Thi Pham

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Working Paper

Global income polarization – relative and absolute perspectives

by Vanesa Jorda, Miguel Niño-Zarazúa, Laurence Roope, and Finn Tarp

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Publications
 
Cambridge Elements in Development Economics: Chilean Economic Development under Neoliberalism
 
Book | Chilean Economic Development under Neoliberalism – Structural Transformation, High Inequality and Environmental Fragility
by Andrés Solimano and Gabriela Zapata-Román
 

OPEN ACCESS | This publication examines the process of economic development of the last 50 years or so under the neoliberal model in terms of impacts on growth, inflation, income and wealth distribution and structural change. The analysis includes a historical perspective from the nineteenth century to the present and combines economic analysis with a political economy approach.

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People around a table discussing. Photo by Maheder Haileselassie Tadese/Getty Images/Images of Empowerment
 
Journal Special Issue | Women’s Work –
routes to social and economic empowerment
edited by Ashwini Deshpande, Janneke Pieters, Kunal Sen, and Maria C. Lo Bue

Journal | World Development

 

In recent decades, trends in female labour force participation rates have been very heterogeneous across developing countries, despite widespread economic growth, fertility decline, and narrowing gender gaps in education. 

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Journal Article | Do the principles of effective development co-operation improve development outcomes? The case for clearer definitions and measurement
by Rachel M. Gisselquist, Patricia Justino, and Andrea Vaccaro

Journal | Development Policy Review

 
Elaborated in their current form in Busan in 2011, and reiterated in Geneva in 2022, the four Principles of Effective Development Co-operation comprise country ownership, focus on results, inclusive partnerships, and transparency and mutual accountability. Framed to guide more effective development assistance, their measurement and impact has not been systematically studied.
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Journal Article | How have formal firms recovered from the pandemic? Insights from survey and tax administrative data in Zambia
by Christopher Hoy et al.

Journal | Journal of African Economies

 

ARTICLE ON EARLY VIEW | This study examines how formal firms have been impacted by and recovered from the COVID-19 pandemic, by drawing on two distinct but complementary data sources. This is the first attempt to use both survey and tax administrative data to measure the impact of the pandemic in a developing country. The findings of three rounds of follow-up surveys to a standard World Bank Enterprise Survey completed immediately before the pandemic are compared to the universe of value-added tax and personal income tax returns filed by firms in Zambia.

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Journal Article | Is the era of declining global income inequality over?
by Ravi Kanbur, Eduardo Ortiz-Juarez, and Andy Sumner

Journal | Structural Change and Economic Dynamics

 
This study examines the trajectory of global income inequality since 1981. Commonly used (relative) definitions indicate a decline in global inequality since the late 1980s. Looking ahead, it has been intuited that the influence of China's economic development — and that of other rapidly growing, populous nations — on the between-country component will, at some juncture, diminish and start to add to global inequality should economic growth persist. 
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Journal Article | Is there a fiscal resource curse? Resource rents, fiscal capacity and political institutions in developing economies
by Tania Masi, Antonio Savoia, and Kunal Sen

Journal | World Development

 
While it is recognised that the ability of states to raise revenues (i.e., fiscal capacity) is important for the provision of key public goods in less developed economies, it is less clear what its determinants are and what explains cross-country differences. We focus on the impact of natural resources. Standard arguments suggest that natural resource rents may harm fiscal capacity, as governments tend to substitute tax revenues with revenues from natural resources. 
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Journal Article | Does the depth of informality influence welfare in urban sub-Saharan Africa?
by Eva-Maria Egger, Cecilia Poggi, and Héctor Rufrancos

Journal | Oxford Economic Papers

 

We explore the relationship between household welfare and informality, measuring household informality as the share of members’ activities (hours worked or income) without social insurance. We discretize these measures into four bins or portfolios and assess their influence on consumption, as a measure of welfare.

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Close-up of black binoculars with sunset colors in the backgound. Photo by Ran Berkovich on Unsplash
 
Journal Article | Herding, taxpayer's rent seeking and endemic corruption
by Gil S. Epstein and Ira N. Gang

Journal | Journal of Economic Behavior & Organization

 

In an environment with extensive corruption where much of the population evades paying their full taxes due, we tackle the question of optimal taxation when constituencies with conflicting objectives (the poor and the rich) push tax policy in different directions. We think in terms of a government policy-maker here called the tax administrator (TA) and rent-seeking lobbying efforts by poor and rich constituencies. 

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Wooden bridge with brass railings. Hand statue that looks like it is holding the bridge. Photo by Aleksandr Barsukov on Unsplash
 
Journal Article | Bridging the gap – mismatch effects and catch-up dynamics under a Brazilian college affirmative action program
by Rodrigo Oliveira, Alei Santos, and Edson Severnini

Journal | Economics of Education Review

 
Affirmative action in higher education can lead to mismatch, where students admitted through preferential treatment struggle academically due to inadequate preparation before college. Although some students may face initial challenges, by providing access to quality education for talented individuals who might have otherwise been overlooked due to systemic disadvantages, these programs may enable students to bridge the gap and catch up to their peers.
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OPPORTUNITIES
 
Request for research proposals | Statebuilding in conflict-affected contexts: the role of taxation
 
UNU-WIDER invites proposals from qualified researchers for papers examining the relationship between taxation and conflict and implications for statebuilding in conflict-affected contexts. The aim is that these papers will be included in a book proposal or published in high-quality journals after publication in the WIDER Working Paper series. Submission deadline: 30 March 2024, 23:59 UTC+2.
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Call for papers | Kuznets at 70 – A symposium on inequality and structural transformation
 
Seven decades after the Kuznets curve was first conceived by Professor Simon Kuznets, the concept still has a hold on development discourse. Its simplest and starkest statement is that as development proceeds, inequality first increases and then decreases—the famous ‘inverse-U’. UNU-WIDER, Cornell University, and Kings College London propose to hold a symposium on this topic in Helsinki on 12-13 September 2024. Accepted papers will be considered for inclusion in an edited volume on the topic—edited by Kunal Sen, Ravi Kanbur, and Andy Sumner. Submission deadline: 15 March 2024, 23:59 UTC+2.
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