Naren Prasad

Using time series data, the paper analyses the economic structure of island countries. The results are illustrated using five case studies. It is demonstrated that countries pursuing strategies based on service industries or exports of light manufactures have been more successful in attaining development objectives. This success has been translated into improved welfare for the populations of these countries. In contrast, a promotion of agriculture and remittances has tended to have a negative effect on development and on levels of welfare of the relevant island countries. Development economists have been mainly preoccupied with trying to explain why large countries with abundant resources (natural, economic, human, diplomatic) nevertheless remain poor. Meanwhile, some researchers have drawn attention to how several small, island States with very limited resources are pursuing their development. It has been seen that a number of small island countries have somehow succeeded in achie...

The report explains in detail how the underlying political economy factors driving the rise and fall of the Arab middle class might best explain why a region, abundant in human and natural resources and unsurpassed in its heritage, cultural endowments and diversity, is seemingly unable to confront ethno-religious threats. The fate of the Arab middle class, inferred from rigorous socioeconomic analyses, sheds light on this question. This report concludes that the empowerment of the Arab middle class could carve a way out of the current development and governance debacle.

... units; and social security, social assistance benefits and employer social benefits in cash and in kind. ... It is now acknowledged that high taxes do not promote effective distribution of wealth. ... efficiency, the changing structure of the tax base, and other political and economic factors. ...

PurposeThe purpose of this paper is to analyze the social development situation in the Pacific Island countries (PICs). It also aims to present the various social and economic policies that are directly linked to improving social indicators.Design/methodology/approachThe paper draws on the theoretical framework provided by the United Nations Research Institute for Social Development, which defines social policy as involving redistribution, production, reproduction and protection. The paper presents data on these four components.FindingsThe paper shows that many PICs have managed to increase some of their social development indicators especially those relating to education. Yet they are also lagging behind on many fronts, such as health, water and sanitation, social protection, and inequality.Research limitations/implicationsIssues of state capacity and governance linked to policy formulation and implementation are not addressed in this paper. More in‐depth and empirical research cou...

This article investigates the link between social security spending and financial crises. In doing so, the article answers two questions: what are the trends in social security spending in the aftermath of a financial crisis, and what factors can possibly explain these changes? The article shows that social security regimes have often been born out of crisis. In addition, on average, social security spending increases over the course of a crisis; however, there is wide regional variation, with advanced countries exhibiting the most countercyclical spending. This article lends support to the idea that crises can be used as an occasion to improve and strengthen social security; in doing so, countries not only mitigate the worst effects of the crisis, but also create better social policy and improve long-term crisis preparedness.

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Privatisation of public infrastructure has been the mantra of many development agencies since the late 1980s. Water supply is no exception, and various forms of private sector participation (PSP) have been tried in the water and sanitation sector. This article examines the results of these experiments. It suggests that PSP has had mixed results and that in several important respects the private sector seems to be no more efficient in delivering services than the public sector. Despite growing evidence of failures and increasing public pressure against it, privatisation in water and sanitation is still alive, however. Increasingly, it is being repackaged in new forms such as that of public-private partnership.

Using time series data, the paper analyses the economic structure of island countries. The results are illustrated using five case studies. It is demonstrated that countries pursuing strategies based on service industries or exports of light manufactures have been more successful in attaining development objectives. This success has been translated into improved welfare for the populations of these countries. In contrast, a promotion of agriculture and remittances has tended to have a negative effect on development and on levels of welfare of the relevant island countries.

The middle class is an important category of interest not only because they are the main driver of economic activity and, thus, vital to the economic development of any country, but also because they are an interest group which influences political and social life. It is also widely reported that the middle class was involved in the Arab uprisings. Going forward, the success of political transition and economic development in the Arab region will largely depend on the middle class, since they are instrumental in mobilizing support, in redefining the existing development framework and governance model and in renegotiating a new social contract in the region. This paper explores the relationship between the State, social policies and the middle class in the Arab region. In doing so, the paper advances three arguments. First it argues that that the Arab states have used social policies and the underlying social contract to gain legitimacy and nation building and hence have shied away f...

Privatization of public infrastructure became the mantra of many development agencies since the late 1980s. Water supply was not an exception and different forms of private sector participation (PSP) in water supply have been experimented. Among the policy circles, privatization became the objective in itself rather than a means of increasing access or helping the poor and increasing the overall performance of the economy. This article examines the results achieved by these experiments. The evidence shows that PSP has mixed results and private sector is not more efficient than the public sector. It also shows that in most cases PSP did not deliver as it was expected. Despite growing failures and increasing public pressure, the article concludes that PSP debate is still alive, but repackaged through different forms.

As the Millennium Development Goals are nearing the formal end of the line, there is a relevant international debate on how the post 2015 agenda should be formed and what it should look like. This paper adds to the debate from a regional perspective. It shows an overview of the heterogeneous MDGs performance of the Arab countries, and draws lessons from that. The results are regional development priorities and development constraints – the necessary conditions for development, which limit the scope of action for the Arab countries. Eight explicit goals in line with these regional priorities and constraints are suggested as being central for the region in any future development compact, and caveats with choosing the indicators for the poverty goal are discussed. Finally, the paper proposes a new methodology on how to set national targets for the chosen indicators and how to aggregate them to the regional and global level for an assumed 2030 developmental finishing line.

Contrary to widely held belief, small island countries have many lessons to offer to other countries and the world community in terms of their development strategies. This article provides evidence that small island countries are experts at breaking and distorting global trade rules without being noticed or provoking retaliatory actions. As unimportant actors in the global system, they tend to use their sovereignty and non-market options to their advantage rather than relying purely on global rules of free trade. Globalization is neither uniform nor homogeneous, but includes opportunities and potential for derogations, exceptions and special arrangements.

Contrary to widely held belief, small island countries have many lessons to offer to other countries and the world community in terms of their development strategies. This article provides evidence that small island countries are experts at breaking and distorting global trade rules without being noticed or provoking retaliatory actions. As unimportant actors in the global system, they tend to use their sovereignty and non-market options to their advantage rather than relying purely on global rules of free trade. Globalization is neither uniform nor homogeneous, but includes opportunities and potential for derogations, exceptions and special arrangements.

... Social policies and private sector participation in water supply” Naren Prasad1 UNRISD ... It includes laws, orders and rules issued by all levels of government and by non-governmental bodies to whom governments have delegated regulatory powers. ...

Privatization of public infrastructure became the mantra of many development agencies since the late 1980s. Water supply was not an exception and different forms of private sector participation (PSP) in water supply have been experimented. Among the policy circles, privatization became the objective in itself rather than a means of increasing access or helping the poor and increasing the overall

Contrary to widely held belief, small island countries have many lessons to offer to other countries and the world community in terms of their development strategies. This article provides evidence that small island countries are experts at breaking and distorting global trade rules without being noticed or provoking retaliatory actions. As unimportant actors in the global system, they tend to use their sovereignty and non-market options to their advantage rather than relying purely on global rules of free trade. Globalization is neither uniform nor homogeneous, but includes opportunities and potential for derogations, exceptions and special arrangements.

5. Small-scale Activities and the Productivity Divide* Naren Prasad Inttroduction It is widely recognised that small firms greatly pre-dominate ... Using data gathered by Ayyagari and Beck (2003), this article investigates whether or not SMEs are associated with higher economic ...

The report explains in detail how the underlying political economy factors driving the rise and fall of the Arab middle class might best
explain why a region, abundant in human and natural resources and unsurpassed in its heritage, cultural endowments and diversity, is seemingly unable to confront ethno-religious threats. The fate of the
Arab middle class, inferred from rigorous socioeconomic analyses, sheds light on this question. This report concludes that the empowerment of the Arab middle class could carve a way out of the current development and governance debacle.

Being small is often considered to be synonymous with being powerless and vulnerable. Indeed, small jurisdictions generally have no choice but to be exposed to the vagaries of globalization. However, sound socio-economic and governance policies can offset what are often construed as structural and inherent handicaps. Thus, while small states are more economically vulnerable, they also adopt ingenious policies to compensate for this. This chapter will discuss the relationship between social aspects and a economic success. The focus is on social cohesion, which, it is hypothesised, is a major contributing factor in this regard.

This paper seeks to understand the relationship between labour productivity, employment and poverty.  It is organised around a ‘question’, a ‘concern’ and a ‘challenge’.  The question is: if small enterprises are less productive than large enterprises (which they are), why are they not driven from the market through competition, such that the cohort of small enterprises declines over time (which it does not).  The probable answer is that small enterprises do not compete directly with large enterprises. 

The concern is that low labour productivity may result in very low wages and returns to owners such that people may be working but are not able to work their way out of poverty.  The evidence suggests that many of the smallest enterprises provide a meager income but that others are more successful and generate decent returns, despite low labour productivity. 

The challenge is to find ways in which productivity can be increased through low-cost methods that involve improvements in job quality.  This last section draws on the work of SEED’s job quality team and illustrates that work with 11 case studies.  The cases suggest that job quality (including cooperative work practices) can increase productivity.  For the smallest firms, however, a lack of demand, resulting in underemployment, is often more important than the organisation of the (very small) work team.  In this situation, an increase in market access is critical to raising productivity because it allows for the fuller utilisation of human and capital resources.

Purpose-The purpose of this paper is to analyze the social development situation in the Pacific Island countries (PICs). It also aims to present the various social and economic policies that are directly linked to improving social indicators. Design/methodology/approach-The paper draws on the theoretical framework provided by the United Nations Research Institute for Social Development, which defines social policy as involving redistribution, production, reproduction and protection. The paper presents data on these four components. Findings-The paper shows that many PICs have managed to increase some of their social development indicators especially those relating to education. Yet they are also lagging behind on many fronts, such as health, water and sanitation, social protection, and inequality. Research limitations/implications-Issues of state capacity and governance linked to policy formulation and implementation are not addressed in this paper. More in-depth and empirical research could be undertaken to investigate the link between economic growth and social development. Originality/value-This paper has the merit of being able to synthesize social and economic data for the PICs and compare it with other small island economies.

The current financial crisis is one of the severest ever seen. As the crisis has evolved, economic forecasts have been downgraded. In many countries, the impact of the crisis is clearly visible through the increasing trend of unemployment and poverty, the rising number of households in debt, and the increasing number of people receiving unemployment insurance benefits and social assistance, and opting for early retirement. This brief looks at the different policy packages adopted by countries during past financial and economic crises in an attempt to draw lessons for the current crisis. Though it is important to note that the current crisis is unique both in its causes and global scope, its social impact will likely be similar to that of past crises. What emerges from various ILO reports and studies on past crises is that policy makers should act quickly and decisively to contain crises, use aggressive fiscal stimuli, and combine economic, financial and social policies into one single comprehensive policy package i. Looking closely at Argentina and the Republic of Korea, this brief shows that, by putting employment and social protection at the heart of crisis responses, policy makers can support economic and jobs recovery. Argentina and the Republic of Korea recovered quickly in the past Experience from recent crises suggests considerable crosscountry variation in the timing of economic recovery. Compared with other countries facing similar crises over the same period, the Argentinean and Korean economies revived relatively quickly from the crises of 2001-02 and 1997-98, respectively (Figure 1). (a) Unemployment was contained In the seven recent crises analysed here, unemployment averaged 5.1 per cent five years prior to the crisis, reaching 7.8 per cent on the crisis year and falling to 6 per cent 5 years after the crisis (Figure 2). Using a different sample of countries 2 , Reinhart and Rogoff (2008) find similar results for developing countries. The quality of employment also needs to be taken into account in developing and emerging economies 3 ii. 3 For example, recent data shows that Argentina's share of informal employment in total non-agricultural employment was 53.3 per cent in the 1995-99 period; the figure for Mexico was 50 per cent in the period 2000-07, Indonesia 78 per cent in 1995-99, and Thailand 52 per cent in 1995-99.

Being small is often considered to be synonymous with being powerless and vulnerable. Consequently, strong arguments are often made about the chronic vulnerability of small developing states. Indeed, small jurisdictions – often islands or enclaves, with a maximum of 1.5 million resident population- generally have no choice but to be exposed to the vagaries of globalization. This chapter demonstrates that, despite being vulnerable, small economies are champions in proposing original development strategies. In doing so they are able to adjust quickly to changing international circumstances, distort global rules and opt to be free riders and rent seekers. They tend to use their sovereignty and non-market options to their advantage rather than relying purely on global rules of free trade. Small states are able to do this without being noticed and without getting retaliatory actions. This is their power of being unimportant actors in the global system

This book aims to contextualize the debate of PSP and then present
the research findings. It starts by outlining the research objectives and
the framework. It then presents a historical perspective of PSP in the
water supply sector. In the third section, it tries to argue that water is
a different kind of good which merits different the adoption of policy
options. In the fourth section it presents the arguments for PSP,
some statistics and why there was an increase in PSP in the 1990s
and the early years of the twenty-first century. In the fifth section
it discusses why social policies and public provision were historically
important in increasing access to an affordable water supply. The final
section presents the research findings and shows why policy makers
should not forget about social policies when reforming their water
sector.