Policy Wise

In a hard-hitting article, Devesh Kapoor argues that the World Bank should stop bankrolling countries like India which consistently perform low on education and public health,

In India’s case, the state’s inability to discharge this most basic obligation to its citizens in education and health, even as it [...]

India has been ranked a disappointing 128th in the latest United Nations Human Development Index rubbing shoulders with the likes of Chad and Burkina Faso. More disappointingly, there has been virtually no improvement from last year.
The entire ranking can be seen here.

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A new company, supported by online giant Ebay, would allow small investors to provide microloans starting from as low as 50$.
The key to microlending, says Turner, is that it fosters self-reliance and, eventually, sustainable economic growth in a way that charity does not. What’s more, lenders stand to receive small financial benefits in the form [...]

In an interesting post at the Indian Economy blog, Dweep argues that India shouldn’t oppose agricultural subsidies extended by Western countries to their farmers. He offers two main reasons for his argument a) subsidies keep prices low thus benefiting the Indian consumers b) the debate on subsidies shifts the focus away from the failure of [...]

Professor William Easterly on how to help Africa,
The real Africa also has seen cellphone and Internet use double every year for the last seven years. Foreign private capital inflows into Africa hit $38 billion in 2006 — more than foreign aid. Africans are saving a higher percentage of their incomes than Americans are (so [...]

Professor Ila Patnaik has a fine post on the public distribution system.
In 2003-04, 14.07 million tonnes of subsidized grain was issued to the 16 large states for delivery to BPL families. Only 5.93 million tonnes was delivered to BPL families. A whopping 8.14 million tonnes of subsidized foodgrain did not reach the poor. In states [...]

In an article in The Economic and Political Weekly, noted demographer Ashish Bose argues that India’s demographic dividend can easily turn into a demographic bomb. By 2026, of the total estimated population increase of 381 million, share of workers in the 15-59 age group would be 83%. Professor Bose points out that providing employment [...]

Previously, we have argued that foreign aid is not the best way tackle poverty in the developing world. A story in the The New York Times illustrates wh

But the law in the United States requires that virtually all its donated food be grown in America and shipped at great expense across oceans, mostly [...]

Improving market access, not aid, will help the developing world

Western countries are constantly criticized for the low level of their aid to developing countries. According to this logic, the rich countries are obliged to help the developing world and it’s failing in its moral duty by not increasing direct financial aid.
There is [...]

In his column in The Times of India, Swaminathan S. Anklesariya Aiyar makes an interesting observation,
But another potent but under-appreciated reason is the rise of petroleum prices, and the consequent boom in biofuels. In many countries, ethanol made from maize and sugarcane is being mixed with petrol. Also, edible oils made from soyabeans, [...]