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Mining Revenues and Inclusive Development in Guinea
What are the potential benefits of increasing the taxation of a foreign extractive sector? This paper applies this question to the case of Guinea by using a multi-sector macro-inequality model with heterogeneous agents. We quantify the long-run equilibrium impact of additional taxation when the proceeds are invested in human capital, inclusive infrastructure, and social transfers. Our analysis focuses on the response of GDP, labor formalization, poverty rates, Gini coefficients, rural/urban inequality and sectoral reallocation. The three forms of investment are complementary. Infrastructure investments favor formal production in the urban area while growth and government transfers boost the demand for food. These effects help support the rate of return to education, protecting job formalization through higher wages and prices of informal goods, as the education policy boosts labor supply in rural and urban areas.
IBSS: Economics: 2002 Vol.51
First published in 1952, the International Bibliography of the Social Sciences (anthropology, economics, political science, and sociology) is well established as a major bibliographic reference for students, researchers and librarians in the social sciences worldwide. Key features * Authority: Rigorous standards are applied to make the IBSS the most authoritative selective bibliography ever produced. Articles and books are selected on merit by some of the world's most expert librarians and academics. *Breadth: today the IBSS covers over 2000 journals - more than any other comparable resource. The latest monograph publications are also included. *International Coverage: the IBSS reviews schol...
Quick Fixes
Drugs are ubiquitous in the past and present of capitalist society. What can they tell us about our society and economy? Americans are in the midst of a world-historic drug binge. Opiates, amphetamines, benzodiazepines, marijuana, antidepressants, antipsychotics—across the board, consumption has shot up in the 21st century. At the same time, the United States is home to the largest prison system in the world, justified in part by a now zombified “war” on drugs. How did we get here? Quick Fixes is a look at American society through the lens of its pharmacological crutches. Though particularly acute in recent decades, the contradiction between America’s passionate love and intense hatr...
When Will Global Gender Gaps Close?
On the current pace of reforms, global gender gaps are estimated to close, using deterministic (linear or log-linear) trends, over the next three centuries. This means that many women will likely not be able to fully use their abilities and talents, to the detriment of societies, for a long time. Yet this paper shows that, absent a significant step up in policy efforts, gender gaps may in fact never close. Using Markov chains, a common approach in macroeconomics, this paper analyzes the dynamics of the cross-country distribution of the gender gap in labor force participation. This methodology does not impose strong restrictions on the data, allowing for episodes of progress as well as regress by countries on gender inequality. Based on the experience of the past three decades, the analysis predicts a further narrowing of gender gaps over time. But the long-run distribution of gender gaps in labor force participation features a substantial share of countries with persistently large gaps, implying that—absent a strengthened and systematic policy effort—some of the current misallocation of women’s talents and abilities could persist perpetually.
Republic of Uzbekistan
Uzbekistan’s growth momentum continues on the back of far-reaching structural reforms to liberalize its economy, favorable commodity prices, and notable increases in financial and income flows. Leveraging the remarkable progress that has been achieved in the last seven years, the authorities remain steadfast in their commitment to continue their policy and reform agenda—as shown by the recent energy price reform—and to address the remaining challenges of reducing the role of the state, accelerating productivity growth, bringing down inflation, and stepping up some key structural reforms that have proceeded at a slower pace than desired.
Social Versus Individual Work Preferences: Implications for Optimal Income Taxation
The benchmark optimal income taxation model of Mirrlees (1971) finds that the optimal marginal income tax rate (MIT) is always non-negative. A key model assumption is the coincidence between social and individual work preferences. This paper extends the model to allow for differences in social and individual work preferences. The theoretical and simulation analyses show that under this model, when the government places a higher social weight on work than individuals, the optimal MIT schedule is shifted downwards, introducing the possibility for optimal wage subsidies at the bottom of the income distribution. This implies lower revenues, demogrants, and overall progressivity.
Drug War
Drug War is a landmark modern history: the first ever full account of the United Kingdom’s fight against the illegal importation of drugs. Packed with remarkable revelations and thrilling anecdotes, it tells for the first time the story of the high-level traffickers who drugged Britain, and the secretive organisation that tried to stop them: the Investigation Division of HM Customs and Excise. The ID’s elite officers waged a fifty-year battle to stem the tide of cannabis, cocaine and heroin arriving by land, air and sea, and to track, arrest and prosecute the smuggling gangs, both organised and chaotic, who turned an amateur pastime into a multi-billion-pound trade. The result of more th...
Household Vulnerability to Income Shocks in Emerging and Developing Asia: the Case of Cambodia, Nepal and Vietnam
We leverage survey data from emerging and developing Asia to highlight different aspects of household vulnerability to income shocks arising from the Covid-19 pandemic: occupation in Cambodia, self-insurance mechanisms in Nepal, and financial leverage in Vietnam. Occupation and ex-ante income levels emerge as the main drivers of vulnerability. We estimate that the pandemic could have placed an additional 6 to 9 percent of the population of each country in a vulnerable position, with the impact concentrated on urban, informal, and service sector workers. Government intervention and financial access emerge as key resilience-enhancing mechanisms.
Recoveries After Pandemics: The Role of Policies and Structural Features
To shed light on the possible scarring effects from Covid-19, this paper studies the economic effects of five past pandemics using local projections on a sample of fifty-five countries over 1990-2019. The findings reveal that pandemics have detrimental medium-term effects on output, unemployment, poverty, and inequality. However, policies can go a long way toward alleviating suffering and fostering an inclusive recovery. The adverse output effects are limited for countries that provided relatively greater fiscal support. The increases in unemployment, poverty, and inequality are likewise lower for countries with relatively greater fiscal support and relatively stronger initial conditions (as defined by higher formality, family benefits, and health spending per capita).
Guinea
Guinea: Selected Issues
