Countries with a high degree of ethno-linguistic diversity are often associated with underdevelopment and the under-provision of public goods. However, the existing literature, which is at the cross country level, fails to take into account the effective contact between the different ethnic groups. For a given level of ethno-linguistic diversity, we would expect the outcomes to differ depending on whether the different groups are interacting locally or not. Our premise is that the potential for interaction between people of different groups depends on the spatial distribution of diversity.

Contributors:
Joseph Gomes
Financing:
Fundación Ramón Areces

There are very few studies intended to comprehend the incentives that agents that participate in conflicts have, as well as the formulation of viable policies for conflict resolution and peacemaking. In this project, we plan to use information from the most recent literature on labour economics and novel econometric methods to reduce this deficiency. 

Contributors:
Alex Armand, Joseph Gomes
Financing:
Fundación Ramón Areces

While urbanization can bring benefits for economic, cultural and societal development, the rapid pace of urbanization that is experienced is creating enormous challenges. Especially cities in developing countries are struggling to keep pace with necessary infrastructure investment. One consequence is a phenomena referred to as “urbanization of poverty”. United Nations Water (2013) estimates that 40% of the world’s urban expansion is taking place in slums.

Contributors:
PIs: Alex Armand (NCID), Britta Augsburg (IFS)
Financing:
3ie Development Priority Window awarded to the Institute for Fiscal Studies (London, UK)

Education is a very important aspect of a country’s growth, and it is essential to understand how parents and/or children make decisions when making this type of investment in human capital.

The project aims to understand parents’ expectations that may affect their decisions on their child’s education and how these expectations may change over time. An essential aspect of the project is to analyze the information that these parents receive, since many social policies in the world ignore the informational component when targeting low-income households.

Contributors:
PI: Alex Armand
Financing:
Fundación Ramón Areces

This project is led by Alex Armand (NCID) and Joseph Gomes (NCID)

In developing countries, financial uncertainty has deep repercussions on both households' welfare and investment in productive activities. Bolivia is characterized by the prominence of agriculture in its economy. More than 30% of its labor force works in agriculture, and according to the last available agricultural census, 94% of Bolivian productive units are owned by families whose output surpasses 6 million tons. Thus, being of paramount importance for Bolivian food security.

Contributors:
Sergio Daga (NCID) and Ivan Kim (NCID)
Financing:
3ie Thematic Window on Agricultural Insurance

Mozambique discovered substantial natural resources  in  recent  years. Known gas reserves in the Rovuma basin have the potential to transform Mozambique into a global player in Liquefied Natural Gas exports. Being  a recent democracy, and with relatively weak institutions, Mozambique also faces considerable risks of resource and revenue mismanagement in the  future, particularly since media independence and penetration are low and the level of political accountability is not improving. 

Contributors:
Pedro Vicente (NOVAFRICA/Universidade Nova de Lisboa)
Financing:
3ie Transparency and Accountability Initiative (TW8) awarded to NOVAFRICA Mozambique

We study the macroeconomic structure of African countries that belong to the same currency or country union or who are planning to join together in such a union. A special focus has been set on studying the formation, current situation and possible evolutions of certain country unions such as the West African Economic and Monetary Union, the West African Monetary Zone, the Economic Community of West African States and the East African Community, the Southern African Community for Development.

Trade has been an important element of growth for the members of the Association of Southeast Asian Nations (ASEAN) since its creation in 1967. For the region, trade between member countries is an essential driver of the integration efforts that will soon culminate in the creation of the ASEAN Economic Community (AEC) in 2015. This integrated production base, in which goods and services will move freely, holds the potential to boost ASEAN’s competitiveness and growth prospects towards a promising future.

Though not working towards an imminent transition to a monetary or currency union, the Central American Monetary Council (or CMCA, from Spanish Consejo Monetario Centroamericano) serves as an institution promoting economic and financial stability among five Central American countries (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) and the Dominican Republic.

Technological innovation constitutes a promising alternative to allow many people in developing countries to escape a situation of poverty. This project analyzes four basic questions. First, what are the characteristics of the firms that introduce new products and/or processes in developing countries. Second, how do these firms do innovation. Third, what are the consequences of technological innovation. Finally, what are the main obstacles to innovations that these firms must overcome.

Contributors:
Strathmore University, NATECEM (Nigeria), HSRC (Sudáfrica)
Financing:
Fundación Ramón Areces

This project aims at identifying the empowerment effect of targeting transfers to women.

The identification strategy relies on a field experiment implemented among women in Macedonia to identify their willingness to pay for privately receiving a transfer instead of their husbands privately receiving the transfer. 

This project is led by the Resident Fellow, Alex Armand.

Contributors:
Ingvild Almas (IIES Stockholm), Pedro Carneiro (UCL), Orazio Attanasio (UCL)
Financing:
NHH - Norwegian School of Economics supported the data collection

Conditional Cash Transfers (CCTs) for school attendance are used in different countries. Although there are several "first generation" impact evaluation studies assessing their impact on different outcomes, there are far fewer "second generation" studies focusing on the question of how to design CCTs more efficiently.

Contributors:
Pedro Carneiro (UCL), Nikica Mojsoska-Blazevski (University American College Skopje), Orazio Attanasio (UCL), Valerie Lechene (UCL)
Financing:
3ie Open Window Grant OW4/1022 awarded to Institute for Fiscal Studies