rafmacalaba/datause-encoder-data huggingface dataset:
_Associated systems_ _Section_ **_5_**

- restrictions on entry generally allow additional rents to be generated;

- these rents will be partly under government control; and

- governments could benefit from control of these rents.

This can be so even when the entry restrictions reduce welfare overall. The reason is that the losers from the restrictions tend to be dispersed, while winners are concentrated.

For example, political patronage can be used to award party supporters jobs or contracts with monopoly utilities.<sup>78</sup> For the individual benefiting from patronage, the rewards are substantial. The inefficiency which results from such political appointment is eventually recovered in higher tariffs. However, because the tariff increase is spread across many customers, the cost to each one is small. Therefore it is not in any customer's individual interest to oppose the system, since the costs of lobbying for change would be high, while their personal benefit would be small. There are also cases in which losers are more concentrated than winners, but the rent redistribution still makes political sense. For example, a populist Government might conclude that business people will support the opposition in any event. Therefore it will not lose any support by increasing utility rates to businesses. The revenue which this creates can then be used to subsidise rates to groups whose support might be swung toward the populist party.

It is also important to consider the dynamic within governments concerning rent distribution. If one treated the government as a single entity, one might conclude that the tax system would be the most effective way to collect and distribute rents. One would therefore question why the government would use less efficient systems, such as infrastructure licences. However, in many countries the tax system is controlled by the Minister of Finance. Other ministers may want their own source of funds and power. Therefore the minister in charge of an infrastructure area may have an incentive to create and maintain exclusive arrangements, even if this is not the most efficient way to generate rents from the point of view of the government as a whole.<sup>7 9</sup> Perceptions and information costs have similar effects. The citizens in many countries are alert to the risk that governments may reduce overall welfare by redistributing rents for personal or narrowly political objectives. Citizens often resist these tendencies. Popular action is much more likely against a few gross or obvious abuses than against a myriad of small and complex schemes. For example, citizens are usually strongly opposed to tax increases. The cost imposed on citizens by inefficient infrastructure is usually much harder to see, and therefore inspires less opposition. In some cases this may provide an additional reason for governments to maintain restrictions on entry in infrastructure.

78 McCarthy (1994), Kerf & Smith (1996) Box 1.4 citing ESMAP (1993).

79 For a game-theoretic view of this dynamic, see Mauro (1995) p.705-<sup>7</sup> 06.

_74_
Dix-Carneiro and Kovak Trade Reform and Regional Dynamics Figure 1: Tariff Changes <!-- Start of picture text --> 0.00<br>-0.05<br>-0.10<br>-0.15<br>-0.20<br>-0.25<br>Change in ln(1+tariff), 1990-95<br>Agriculture Metals Apparel Food Processing Wood, Furniture, Peat Textiles Nonmetallic Mineral Manuf Paper, Publishing, Printing Mineral Mining Footwear, Leather Chemicals Auto, Transport, Vehicles Electric, Electronic Equip. Machinery, Equipment Plastics Other Manuf. Pharma., Perfumes, Detergents Petroleum Refining Rubber Petroleum, Gas, Coal<br><!-- End of picture text --> Tariff data from Kume et al. (2003), aggregated to allow consistent industry definitions across data sources. See Appendix Table A1 for details of the industry classification.

40
6 Traditional Medicine in Sub-Saharan Africa Table 2. Proportion of Persons Who Reported Illness or Injury by Type of Treatment Facility

|||Kenya (<br>|Nyeri)|
|---|---|---|---|
|Type of Treatment Facility|Ethiopia|Round I|Roun. 2|
|Health Institution<br>|8.8|8.6||
|Hospital, Health Center, HS<br>|||4.4|
|Government Hospital<br>|||21.8|
|Mission Clinic<br>|||4.1|
|Private Clinic<br>|||5.0|
|Community Health Agent<br>||1.0|0.7|
|Pharmacy<br>|3.8|4.0|16.6|
|Traditional Health<br>|5.6|6.1|6.4|
|Lay Treatment<br>|3.7|4.4||
|Self Treatrnent<br>|3.4|3.3|4.5|
|Other<br>|0.9|1.5||
|Facility N4ot Stated<br>|_0.5_||_0.5_|
|Not Treated<br>|71.7|70.7|37.1|
|Not Stated|9.8|0.2||

Source: Ethiopia and Kenya data from table 3.2, Dunlop and Donaldson (1987); Ethiopia data from Ethiopia Central Statistical Office, _Report on Rural Health Survey (1982/83);_ Kenya data quoted from Germano M. Mwabu, _A Model of Household Choice among Medical Treatment Alternatives in Rural Kenya,_ unpublished Ph.D. dissertation, Boston University, 1984.

18. There is evidence that highly-educated people living in urban areas continue to consult traditional practitioners. For example, a survey conducted in Ibadan, Nigeria found that roughly 70 percent of both the highly educated and the less-privileged members of the community used traditional health care, particularly traditional drugs (Maclean 1971). Similarly, a household survey on the demand for health care in Mali (Birdsall, _et. al._ 1986) found that household income did not significantly affect the choice of treatment; better-off households were as likely to choose traditional health care as those that were poor. There have been similar findings for Malaysia and the Philippines (Akin, _et. al._ 1981). Demand for the services of traditional healers may even increase in urban areas with modernization, since healers are skilled in helping people to cope with the psychological and social stresses that often accompany rapid social and economic change. For example, Swantz (1972 quoted in Good 1979), in a five-year study of Zaramo in Dar es Salaam found that the traditional healer played a critical role as broker between the traditional and modern environments: "He is a supporter and preserver of his patients' traditional values and belief systems, is a bridge to the modern world, and has incorporated many functions of
# **Appendix B: Data Sources and Assumptions**

# **Residential Sector**

There were approximately 1,192 thousand households in Georgia in 2014. Based on survey conducted by the Winrock International (Winrock International, 2014) the average size of dwelling is 100 sq.m. and 89% of households use modular heating options, such as electric heater, kerosene stoves that heat only a portion of the households<sup>10</sup> and on average 43% of dwelling living space is heated. Although about 60% of the total households have access to natural gas, only 38% use it for heating. Majority (57%) of the households still use firewood for space heating. Electricity is usually used as supplementary heating fuel for other types of fuels – only 6% use it as a main source. The general tendency is that households switch over to natural gas as their income rise in places where gas distribution infrastructure exists. We assumed that households not only switches to natural gas for space heating but also will increase the heated area as income rises. Since the Winrock survey is the first of its kind carried out in Georgia and there exist no earlier survey which would help to determine trends, expert assessment was used to make projections for future. It was assumed that annual rate at which heated area increases is 2% and the number of households switching to natural gas increases by 1% per year. The Ministry of Energy assumes that by 2035 75% of population will have access to gas.

Major appliances owned by households are TV, refrigerator and washing machines. Almost all households have TV, from which around 11% is new LED type TVs. 84% of household own refrigerator and among them 48% state that their refrigerator is energy efficient. 68% of households use washing machines, 43% of which is purchased after 2010. The average number of bulbs per household is 8, and they operate around 5.26 hours daily. 70% of households use incandescent bulbs, 8% efficient bulbs, and 22% uses both. As for the cooling systems the typical cooling system in Georgia is local split system, used to cool one or two rooms. The central cooling systems are very rare in country, and would result in increase of consumption. The key technical and economic characteristics of appliances used in the household buildings are summarized in Table A1.

10 30
using a NSS to implement the graph-generating algorithm. Feasible equilibria, and paths to reach them, are identified: of the 55 possible outcomes identified in stability analysis, only 23 may be reached from the status quo, provided that players can only make unilateral improving moves. The model singles out three strong equilibria, and the paths to reach them. And in fact it is one of these equilibria that materialized in the actual negotiation process, consistent with one of the three shortest paths in the status quo analysis.

# **3.2 Negotiation Process Support System Model**

Whilst the previous NSS were concerned with predicting the possible outcomes and simulating various scenarios, the Interactive Computer-Assisted Negotiation Process Support System (ICANS) guides parties in real time negotiation towards the selection of a mutually beneficial agreement in a dynamic, multiple issues, multilateral negotiation (Thiesse et al. (1998)).

ICANS supports the identification of relevant issues, as well as their feasible/acceptable ranges. Information on parties’ preference over single issues, as well as ranking of those issues, must be provided (confidentially), to construct partial relative satisfaction functions. ICANS creates internal measures of total relative satisfactions for each party, from any set of issue values. These are based on party’s relative satisfaction functions – one for each issue – aggregated to a total satisfaction function. In this way, comparison among multiple alternative proposals for each party are possible. From this information, the NSS is able to generate an acceptable set of issue values, starting from parties’ individual proposals. The alternative generated by ICANS will be such that, for every party, it is (at least) equivalent in terms of relative satisfaction to their initial proposal. If such an alternative does not exist, then the alternative generated by ICANS will be such that each party’s total relative satisfaction will be reduced by a minimum equal amount. Once a tentative agreement is identified, ICANS will explore possible Pareto improving alternatives. In order to move the agreement towards the Pareto frontier, ICANS find those values that maximize the minimum gain in total relative satisfaction, while assuring that the total net gain to all parties cannot be further improved.

37
# **LONG-TERM ADAPTATION: SELECTING FARM TYPES ACROSS AGROECOLOGICAL ZONES IN AFRICA**<sup>1</sup>

Niggol Seo<sup>2</sup> , Robert Mendelsohn<sup>3</sup> , Ariel Dinar<sup>4</sup> , Pradeep Kurukulasuriya<sup>5</sup> , and Rashid Hassan<sup>6</sup>

> 1 This paper is one of the product of a study “Measuring the Impact of and Adaptation to Climate Change Using Agroecological Zones in Africa” funded by the KCP Trust Fund and conducted in DECRG at the World Bank.  We benefited from comments by Richard Adams, Brian Hurd, and Robert Evenson on an earlier draft.

> 2 School of Forestry and Environmental Studies, Yale University, and consultant to the World Bank; 230 Prospect St. , New Haven, CT06511; phone 203-432-9771; email <u>Niggol.seo@yale.edu.</u>

3 School of Forestry and Environmental Studies, Yale University; 230 Prospect St, New Haven, CT06511 and a consultant to the World Bank; phone 203-432-5128; email <u>Robert.mendelsohn@yale.edu.</u> 4Development Research Group, World Bank, 1818 H St. NW, Washington DC 20433; phone 202-473-0434; email adinar@worldbank.org.

> 5 Energy and Environment Group, Bureau of Development Policy, United Nations Development Programme, New York; phone 212-217 2512; email: <u>pradeep.kurukulasuriya@undp.org.</u>

6 Department of Agricultural Economics, University of Pretoria, and Center for Environmental Economics for Africa; email <u>Rashid.hassan@up.ac.za</u> .
B). Both young workers and older workers have been particularly affected: young workers have been frozen out of jobs, and more workers have retired than usual, many under the government-sponsored early retirement program (see Abraham and Vodopivec, 1993).

The destinations of exits from employment have also changed profoundly. Prior to 1990, it was rare for any employed person to leave his or her job for unemployment. The yearly job-to-unemployment exit rate -- the share of employed persons who, over a 12 month period, exited from employment directly into unemployment -- was only 0.4 percent in 1987 and had risen only to 0.8 percent by 1989 (Table 1, panel C). Other job exits, to retirement and out-of-the-labor-force, were remarkably steady. During the transition, exit rates to unemployment and out-of-the-labor-force, including to retirement, increased sharply.' Most strikingly, the exit rate to unemployment increased to 4 percent by 1991. The tightening of the market is reflected also in a decline in the job changing rate. In 1987, 7.2 percent of those employed at the start of the calendar year changed jobs during the year; by 1991, this rate had fallen to 4.9 percent, a decline of about a third.

Another dramatic development has been a surge of unemployment. Both because of the large increase in inflows into unemployment and the substantial decrease in the probability that a typical unemployed person will find a job, the number increased from 14,068 unemployed persons at the start of calendar year 1987, to 93,036 at the start of 1992 (Table 1, panel D, and figure 1). Data on unemployment inflows shed additional light (Table 1, panel E). The number of persons entering unemployment because their enterprise had declared bankruptcy grew from 1,472 in 1989 to 8,674 in 1990 and 18,852 in 1991. In mid-1991, however, the government had suspended the initiation of new bankruptcies, and the number of persons entering unemployment due to employer bankruptcy had I Changes to Slovenian law introduced in 1989 made it easier for firms to declare bankruptcy and for the first time allowed enterprises to lay off workers. Under the 1989 law, laid-off workers were in effect entitled to 24 months advance notice; changes introduced in February of 1991 reduced the amount of required notice to six months. The government also introduced early retirement subsidies in 1989.

3
Policy Research Working Paper 5260

# **Abstract**

Recorded remittances to Africa have grown dramatically over the past decade. Yet data limitations still mean relatively little is known about which migrants remit, how much they remit, and how their remitting behavior varies with gender, education, income levels, and duration abroad. This paper constructs the most comprehensive remittance database on immigrants in the OECD currently available, containing microdata on more than 12,000 African immigrants. Using this microdata the authors establish several basic facts about the remitting patterns of Africans, and then explore how key characteristics of policy interest relate to remittance behavior. Africans are found to remit twice as much on average as migrants from other developing countries, and those from poorer African countries are more likely to remit than those from richer African countries. Male migrants remit more than female migrants, particularly among those with a spouse remaining in the home country; more-educated migrants remit more than less educated migrants; and although the amount remitted increases with income earned, the gradient is quite flat over a large range of income. Finally, there is little evidence that the amount remitted decays with time spent abroad, with reductions in the likelihood of remitting offset by increases in the amount remitted conditional on remitting.

This paper—a product of the Finance and Private Sector Development Team, Development Research Group—is part of a larger effort in the department to study the determinants and consequences of migration and remittances. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The author may be contacted at dmckenzie@ worldbank.org.

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent._ Produced by the Research Support Team
NIGER’S INFRASTRUCTURE: A CONTINENTAL PERSPECTIVE

**Figure 20. Niger’s existing infrastructure spending is relatively low**

As percentage of GDP <!-- Start of picture text --> SSA<br>LIC-NoFragile<br>LIC-Fragile<br>MIC<br>ECOWAS<br>Resource-Rich<br>Zimbabwe<br>Liberia<br>Cape Verde<br>Ethiopia<br>Kenya<br>Ghana<br>Benin<br>Mali<br>Sierra Leone<br>Uganda<br>South Africa<br>Niger<br>Nigeria<br>Cote d'Ivoire<br>Congo, Dem. Rep.<br>0 5 10 15 20<br>% of GDP<br>Capex O&M<br><!-- End of picture text --> _Source:_ Derived from Foster and Briceño-Garmendia (2009). _Note:_ LIC = low-income country; MIC = middle-income country; ECOWAS = Economic Community of West African States; SSA = Sub-Saharan Africa; GDP = gross domestic product; O&M= operations and maintenance; CAPEX = capital expenditure.

Whereas operating expenditures are entirely covered from budgetary resources and payments by infrastructure users, capital expenditures are financed by diverse sources (figure 18). About 36 percent of capital expenditure funding comes from the federal and state governments, as well as state-owned enterprises (SOEs). Niger relies heavily on official development assistance (ODA), which accounts for another 30 percent of total capital spending. Private financing plays a substantial and important role in financing capital infrastructure investments in Niger, accounting for about 18 percent of total capital spending. Non-OECD financiers account for around 16 percent of capital spending. ODA in Niger benefits mainly the transport and water sectors, but not the power sector (figure 21).

37
households allows La Positiva to utilize local microcredit institutions (known as _cajas_ ) to offer the insurance tied to loans, particularly focusing on multi-year loans.

This program has led to a change in thinking regarding potential opportunities for “forecast index insurance.” In terms of El Niño events, there are opportunities to expand coverage to parts of Africa, Asia/Pacific, and the Americas where it affects seasonal patterns of rainfall and temperature. However, concerns still remain as to how this initiative will address issues related to moral hazard and potential adverse selection, as there is little information about what form the payments are to be made in and little explicit regulation of how the insured will be monitored in the use of their payouts. Either way, this program offers a unique solution to disaster mitigation (Cavanaugh, Collier and Skees, 2010).

_Initiative on protecting against flooding in Vietnam._ Flooding is clearly a major agricultural concern in developing countries. However, flooding does not uniformly affect agricultural productivity in a region (some farms may be flooded while others unaffected). Crops are also impacted at different levels of severity based on when the flood occurs in relation to the crop’s lifecycle, with crops being more vulnerable during certain stages, such as flowering. This leads to challenges when constructing index based flood insurance programs for developing countries.

In Vietnam, GlobalAgRisk has developed rice production insurance that has been structured similarly to business interruption insurance. The contract is intended to be purchased by the Vietnam Bank for Agriculture and Rural Development (VBARD). This bank lends to rice - farmers against a pre-defined early season flooding event. This contract would help VBARD protect its portfolio from different business interruption costs such as when client farmers seek loan restructuring after early flooding. The contract would be underwritten against recorded water levels at a main river gauge station, using this data as a proxy for flood damage. This assumes the existence of a reliable and consistent river gauge system in the different regions, a potential issue moving forward. This project represents a significant step forward in mitigating against agricultural flood losses by increasing the market for early season flooding insurance (Manuamorn, 2009).

18
business. Low returns would suggest that individuals without access to a sufficient amount of capital would face a permanent disadvantage. That is, they would fall into a poverty trap. The theoretical literature on occupational choice has posited a minimum scale below which returns to capital are very low or even zero.<sup>2</sup> If, on the other hand, returns are high at low levels of capital stock, then an entrepreneur would be able to open a business and grow by reinvesting profits. In this case, firms might remain at a sub-optimal size for some period of time, but entrepreneurs would not be permanently disadvantaged. With time, they would be able to bootstrap their way up to an optimal firm size. In the absence of minimum scale, we might expect returns to be high. Because small scale entrepreneurs lack access to credit at market interest rates, even risk-adjusted returns may well be higher than market interest rates.

Given the importance of this issue, there are an increasing number of estimates of the returns to capital in small scale productive activities in developing countries (see Banerjee and Duflo, 2005). Some of the estimates come from broad cross-sections of producers, and others from the subset of firms exposed to some shock. Among the former, McKenzie and Woodruff (2006) estimate returns to capital among the smallest urban microenterprises in Mexico, those with less than $US200 invested, of around 15 percent per month. Monthly returns in the Mexican data fall to around 3-5 percent above the $500 range, equivalent to 40-80 percent annually. Udry and Anagol (2006) estimate returns to capital in a sample of small scale agricultural producers in Ghana to be 50 percent per year among those producing traditional crops on a median-sized plot and 250 percent per year among those producing non-traditional crops on median sized plots. Banerjee and Duflo (2004), on the other hand, take advantage of a panel of firms in India during a period in which changes in laws forced banks to make preferential loans to certain groups of firms. The changes in the laws allows for the identification of changes in access to finance among the firms. Banerjee and Duflo derive estimates of returns for this set of firms of between 74 and 100 percent per year.

The central challenge in estimating returns to capital is that the optimal level of capital stock is likely to depend on attributes of entrepreneurial ability which are difficult

> 2 Banerjee and Newman (1993) and Aghion and Bolton (1997) are seminal papers in this literature. Barrett and Swallow (2004) discuss the effects of minimum scale on investment in rural Africa..

3