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School of Public Policy

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Now showing 1 - 10 of 411
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    Does social capital determine poverty? Evidence from Cameroon household survey
    (Georgia Institute of Technology, 2009-10-08) Tabi, Johannes Atemnkeng
    This paper has examined the effect of social capital on household poverty using the 2001 Cameroon household survey. We rely on three indicators for social capital – network membership, decision making index and network support or solidarity– and employ alternative procedures to consistently estimate the impact of social capital on household per capita expenditure. Memberships in organizations, social support or decision making indices are choice variables implying that social capital indicators are by definition endogenously determined and depend on household specificities. We exploit the advantages of longitudinal data and community fixed effects to mitigate some of the concerns about spuriousness and reverse causality that predominate in this literature. Our results show that, membership in associations and the indicator for decision making index are positively correlated with household per capita expenditure (i.e. poverty reducing), this being true with classical OLS estimates as well as when we control for the endogeneity and reverse causality bias. However, the indicator for network support significantly mitigate household poverty when we control for endogeneity and reverse causality bias, an indication that households with higher incomes tend to group together. Secondly, there are limited economies of scale in social capital (i.e. more than one member of the same household belonging to networks does not necessarily mean more benefits). Our analysis suggest that policy makers interested in improving the living conditions of households may be advised to consider promoting social capital as one relevant ingredient to achieve the Millennium development goals of reducing poverty by half.
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    From TRIPS to "TRIPS Plus" provisions. Patents protection and public health promotion in developing countries: raising the stakes for drugs accessibility
    (Georgia Institute of Technology, 2009-10-08) Guennif, Samira
    According to the latest UNAIDS estimation (2008), about 33.2 million people are living with HIV/AIDS in the world in 2007, mostly in developing countries. More than 2.5 million people were newly infected this year and 2.1 million people died of AIDS. Due to prevention programme and changes in behaviour, the epidemic seems to peak in the 90s. Yet, the Sub-Saharan region still bears the largest burden with 22 million people infected. Zimbabwe, Namibia, South-Africa, Botswana, Lesotho, Swaziland and Zambia are particularly hit by the epidemic where between 15 and 26% of adults are infected by HIV/AIDS. Beside, due to the demographic factor, more and more people are infected and prevalence rate are growing in East and South-East Asia. Today, 4.9 million people live with HIV/AIDS in this region, especially in India and China. Concerning Latin America, 1.7 million adults and children are infected. Whether no vaccine exists to cure the infection, about a score antiretrovirals (ARVs) treats the infection and enables people to live with the infection. Among the first drugs available, AZT was used to treat the infection and prevent the transmission from mother to child during the delivery. Since the 80s, many treatments were developed to treat HIV/AIDS. Significant improvements have been made since the single therapies developed in the late 80s to the multi-therapies recently developed to overcome the occurrence of resistance to treatments. Nowadays, patients benefit from single, bi and tri-therapies, suffer less from resistances and improve the quality of their everyday life. Accordingly, the access to ARVs has become crucial in developing countries where the epidemic causes dramatic socio-economic impacts as estimate the micro and macro-studies released on households and economic growth (Over, 1992, Ainsworth, 1993, Bonnel, 2000, Dixon & alii, 2001, Drouin & al., 2003). On the whole, the HIV/AIDS epidemic reminds that the accessibility issue is not new in developing countries. Since the 1970s, the World Health Organization (WHO) has been working for the “right of all to health” by essentially increasing the access to essential drugs for people in poor countries. In this perspective, the first list of essential drugs was laid down in 1977. The list elected the least expensive products that could cure the most predominant diseases in developing countries. Since then, drug is defined as a specific and essential good, which had to be made accessible for the greatest number at a reasonable price. To specifically achieve the accessibility to medicines for patients infected by HIV/AIDS in developing countries, the WHO and the United Nations for AIDS (UNAIDS) have launched the “3 by 5” initiative in 2003. The goal is to provide ARVs to three million infected people in low and middle-income countries by the end of 2005. It is a step towards the larger goal of ensuring universal access of HIV/AIDS treatments for all who need them as a human right in poor countries where national health coverage are definitely lacking. For that reason, the WHO issues and revises comprehensive guidelines for a public health approach of ARVs procurements in countries where resources are limited (WHO, 2006). Concretely, in those guidelines, every public health authorities can find information about when beginning an anti-AIDS treatment, which first line regimen may be the more suitable for adolescents, adults or pregnant women regarding mainly the potency of all therapies, their side effects and their prices. WHO indicates also when patients must switch to another therapy because of resistance to a first line regimen or intolerable side effects. Tri-therapies are highly recommended since drug resistances are notably reduced. Yet, the access to medicines in developing countries hit by dramatic epidemics such as HIV/AIDS actually questions the patent status of these life-saving drugs. Therefore, the recent evolutions of intellectual property rights (IPRs) regimes in the world matter. Accordingly, the paper intends to discuss the influence of IPRs evolution on drug accessibility in developing countries. Precisely, building on a review of the two main sources of IPRs evolution in the world, i.e. Trade Related aspects of Intellectual Property rights (TRIPs) agreement and the USA Free-Trade Agreements (FTAs), the paper indicates how international agreements may seriously undermine accessibility and affordability in developing countries. The argument stresses on the fact that many provisions may help to extend market exclusivity holds by firms, prevent the competition of generic makers and at last defer the launch of more affordable medicines in developing countries. The objective, principles and flexibilities of the TRIPs agreement will be first presented (§2). Beyond the obligation to settle a strong IPRs regime, concerns about public health are expressed and flexibilities are provided for circumstances where drug accessibility is crucial, especially in developing countries. Then, the content of some USA FTAs will be examined. In particular, the provisions devoted to patent extension and generic competition prevention will be listed as means that may roughly damage drug accessibility. Finally, some evidence concerning the link between IPRs regime, competition and drug accessibility will be reminded. Building on Indian case studies, elements about the drastic decrease of ARVs prices due to the generic competition will be related. Besides, impediments to the supply of affordable ARVs in Thailand will be described.
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    Food safety regulations and trade effects: The case of Indian seafood industry with special reference to Kerala, South India
    (Georgia Institute of Technology, 2009-10-08) Somasekharan, Jayasekhar
    This study represents an attempt to estimate the effects of SPS measures in terms of trade elasticity of regulations and competitiveness of exports. In spite of the generalized acknowledgment of growing liberalization of trade between countries, there are still numerous obstacles to trade, more of the non-tariff type. This study aims to contribute to the literature on quantifying the economic impact of health and environmental regulations expressed in the form of SPS measures on international trade in agro-food products, by taking Indian seafood exports case study. The gravity analysis, complemented with the CMS model, helped to obtain an insight into the overall dynamics of the export markets, trade flows and competitiveness of fish and fishery products (aggregate level), shrimp and cephalopods. For the regulatory variable, the maximum residue limit (MRL) on cadmium in the model is used as an independent variable. Thus, it was made much insightful in understanding the relationship between trade restrictiveness of regulatory stringency and export competitiveness of the commodities. A detailed study on micro level dynamics of Kerala seafood export sector has been carried out, particularly to understand what the industry level changes are experienced during the food safety regime The results indicate that regulations on cadmium appear to be moderately trade restrictive. At the same time results are divergent at the disaggregate level, which is significant from the point of view of policy. The most important aspect of the existing chain in Kerala’s seafood sector is the gradual disappearance of the independent pre processing sector which has been an important stake holder of the seafood value chain of Kerala. The pre processing node of the value chain is getting integrated to the processing sector causing a major restructuring of the existing value chain.
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    Taking innovation to the poor: Lessons from sanitation activists in India
    (Georgia Institute of Technology, 2009-10-08) Ramani, Shyama V. ; Sadre Ghazi, Shuan ; Duysters, Geert
    There is an emerging body of literature that examines how pro-poor innovations should be created and what business models should accompany them. However, there is little on actual implementation practises and the present paper attempts to fill this void by analyzing the findings of the literature and confronting them with the actual field practises of sanitation activists in India. It demonstrates that the common thread that unifies progressive sanitation activists is their adoption of the ‘market based approach’, which works from the premise that if the facilities constructed are to be used efficiently, first a real demand must be created among end-users. Market failures stemming from the demand side are shown to be due to problems of expressions of demand as a function of perception of needs and their mismatching with perceptions of the value of the innovation which is targeted to eliminate the market failure in the first place. It also identifies how activists go beyond the academic model of assessing need, appropriateness of technology and demand to include practises for ‘accompaniment’, ‘sustainable maintenance’ and ‘generation of knowledge, demand and innovation spillovers’ in an endogenous fashion, providing an alternative to the ‘centralized platform delivery’ model’.
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    The copying paradox: Why converging policies but diverging capacities development in Eastern European Innovation Systems?
    (Georgia Institute of Technology, 2009-10-08) Karol, Erkki ; Kattel, Rainer
    There seems to be almost decade long consensus on what are the key problems in innovations systems in Eastern European (EE) countries.2 The consensus runs through social scientists inand outside Eastern Europe to official statements of the European Commission. Briefly, there are two key challenges in the innovation systems in Eastern European countries: first, mismatch between R&D and education policies on the one hand and industry needs on the other (it can be also called a high-technology bias); second, strongly fragmented policy arena where coordination problems are rampant. (See for detailed country overviews European Commission’s Innovation Trend-Chart, 2006 and 2007; see also Radosevic, 2004 and 2006; Reid and Peter, 2008) These problems were partially detected, or their emergence predicted, already in late 1990s (see, for instance, Radosevic, 1998 and 1999) and by the 2000s they formed the core of European Commission’s message to the new member states on what they need to take into account while devising strategic plans for the implementation of EU’s structural funding between 2007 and 2013. (for detailed overview, see Kattel, Reinert and Suurna, 2009) Yet, over the decade, the problems persist and seem to get worse. This article sets out to explore why this is so.
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    The emergence of fuel cell technology and challenges to latecomer countries: Insights from Singapore and Malaysia
    (Georgia Institute of Technology, 2009-10-08) Mohamad, Zeeda Fatimah
    This article uses the systems of innovation approach (in this case using the technological system framework and analysis of system functions) to provide insights for understanding the challenges that latecomer countries have to face in the development of an emerging technology like fuel cells. It shows that the development of system functions in fuel cells in Singapore is higher than in Malaysia, and this is shaped by four key factors: (1) Diversity of actors and the alignment of their activities; (2) synergy between energy, environment and industrial policies; (3) openness to internationalisation; and (4) responsiveness to demonstration activities. In Singapore the stronger presence of such factors in its policy environment has had a positive influence on the development of fuel cell technology – while the absence or weaknesses of these factors might have contributed to the weaker and more unbalanced development in Malaysia. It is argued that this is because such factors were effective in addressing specific characteristics of the ‘emerging phase’ of fuel cell technology.
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    Enhancing the Role of Knowledge and Innovation for Development
    (Georgia Institute of Technology, 2009-10-08) Wamae, Watu
    The broad aim of this study is to improve our understanding of the nature, extent and importance of commercialisation of knowledge in developing countries. The commercialisation of “new” knowledge, whether generated locally or obtained from foreign sources, is to a large extent determined by the ability to translate it into socio-economic solutions. This necessarily suggests that the commercialisation of knowledge cannot effectively be analysed in isolation from other core components (actors, activities and linkages) of the science, technology and innovation system. This paper addresses two main issues: (i) What are the core elements that enable “new” knowledge to successfully undergo transformations that respond to demand dynamics? (ii) What are the implications of these core elements for knowledge commercialisation in developing countries?
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    Determinants of re-cycling and use of domestic waste in urban swamp areas of Yaounde in Cameroon
    (Georgia Institute of Technology, 2009-10-08) Sotamenou, Joël
    The present paper aims to identify the determinants of the recycling and use of recycled domestic waste in the swamp areas of Yaounde, Cameroon. For this purpose, we identify the determinants of their use in three swamp areas in order to propose a domestic waste strategy among households. Data was collected between August and September 2005 among 126 farmers. Results show that the production of vegetables, the short distance between the house of the farmer and their farm, the use of recycled livestock wastes, the level of education and the surface of the farm have a positive effect on the decision to use domestic waste in the swamp areas of Yaounde. On the other hand, the age of farmers have a negative effect. In fact, the closer the farmers live to their farm, the more likely they will use recycled domestic wastes. To promote good management of domestic waste and safe urban and semi-urban agriculture in the swamp areas, the implementation of transfer station of waste collected, in or next to swamp areas, seems to be a solution.
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    Social Capital and Innovative Performance in Developing Countries: The Case of Ugandan Entrepreneurs
    (Georgia Institute of Technology, 2009-10-08) Rooks, Gerrit ; Dolech, Den ; Szirmai, Adam ; Serwanga, Arthur
    This paper examines the relationships between the characteristics of networks of small scale entrepreneurs and their innovative performance in a developing country context. It is based on a survey of entrepreneurs held in Uganda in May 2008. Networks represent social capital that can contribute to economic success and innovative performance. But sometimes networks can also act as obstacles to innovation. In the literature there are two opposing strands. The line of research initiated by Coleman points to the advantages of being embedded in tightly knit networks, which provide trust, support and access to innovation. Burt emphasizes the disadvantages and constraints of closed and dense networks, where many relationships are redundant and actors are isolated from the outside world. This paper applies these theories in a developing country setting, where they have so far not been studied. It provides an empirical synthesis between the Burt and the Coleman perspective. The relationship between network constraints and innovative performance is found to be curvilinear. Increasing density and constraint initially has positive effects on innovative performance, but beyond an optimum negative effects start to prevail. Network size and human capital have positive effects on innovative performance.
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    L’impact des “remittances” sur le travail des enfants en presence d’instabilites de revenus et de contraintes financiers
    (Georgia Institute of Technology, 2009-10-08) Ebeke, Christian
    This article examines the relationship between migrants’ remittances and the prevalence of child labor by using a large sample of developing countries. In particular, we investigate whether the inflows of remittances help to offset the effects of financial constraints and income shocks on the prevalence of child labor. Starting from a simple theoretical model, then based on a sample of 97 developing countries (of which 31 are African) observed over the period 1998-2002, we show that remittances reduce significantly child labor in developing countries characterized by weak financial systems and by strong income instability. These results were robust even after taking into account the potential endogeneity of remittances and financial development in the regressions. Policy recommendations for specific strategies to facilitate receipt of remittances by households are more than ever appropriate for a region like Sub-Saharan Africa, which currently receives a small fraction of these funds compared to other developing countries, and where the prevalence of child labor is still a serious issue.