rafmacalaba/datause-encoder-data huggingface dataset:
The market for retirement products
            in Australia
Australia introduced a mandatory
            retirement savings scheme in 1992. This built on
            pre-existing voluntary occupational plans. The new scheme
            has been very successful in expanding coverage and
            mobilizing large financial savings that are equal to close
            to 100 percent of GDP. However, Australia does not impose
            restrictions on payout options. The payout phase used to be
            dominated by lump sum withdrawals, which accounted for 80
            percent of benefit payments as recently as 2002. But pension
            payments increased in recent years and now represent 45
            percent of total payments. The vast majority of these
            pension payments take the form of term annuities and
            allocated annuities. The latter are similar to phased
            withdrawals in Chile but run for fixed terms of up to 25
            years rather than for lifetime terms. The demand for life
            annuities and lifetime phased withdrawals is very limited.
            The paper discusses the factors that have shaped the pattern
            of demand for retirement products, including the
            availability of the universal age pension and the effect of
            clawback provisions, the impact of the high level of home
            ownership, and the widespread preference of retiring workers
            for reliance on self-annuitization. The paper also reviews
            the prudential regulation of superannuation funds and life
            insurance companies.
Export surges : the power of a
            competitive currency
How can countries stimulate and sustain
            strong export growth?  To answer this question, the authors
            examine 92 episodes of export surges, defined as significant
            increases in manufacturing export growth that are sustained
            for at least seven years. They find that export surges in
            developing countries tend to be preceded by a large real
            depreciation-which leaves the exchange rate significantly
            undervalued-and a reduction in exchange rate volatility.  In
            contrast, in developed countries, the role of the exchange
            rate is less pronounced. The authors examine why the
            exchange rate is so important in developing countries and
            find that the depreciation leads to a significant
            reallocation of resources in the export sector. In
            particular, depreciation generates more entries into new
            export products and new markets, and the percentage of new
            entries that fail after one year declines.  These new
            products and new markets are important, accounting for 25
            percent of export growth during the surge in developing
            countries. The authors argue that maintaining a competitive
            currency leads firms to expand the product and market space
            for exports, inducing a large reorientation of the tradable sector.
Market power and the matching of
            trade credit terms
This paper studies the decision of firms
            to extend trade credit to customers and its relation with
            their financing decisions. The authors use a novel
            firm-level database of Chinese SMEs with unique information
            on market power in both output and input markets and on the
            amount, terms, and payment history of trade credit
            simultaneously extended to customers (accounts receivable)
            and received from suppliers (accounts payable). The analysis
            shows that suppliers with relatively weaker market power are
            more likely to extend trade credit and have a larger share
            of goods sold on credit. Examination of the importance of
            financial constraints reveals that access to bank financing
            and profitability are not significantly related to trade
            credit supply. Rather, firms that receive trade credit from
            their own suppliers are more likely to extend trade credit
            to their customers, and to "match maturity"
            between the contract terms of payables and receivables. This
            matching practice is more likely used when firms face strong
            competition in the product market (relative to their
            customers), and enjoy strong market power in the input
            market (relative to their suppliers). These results
            highlight the importance of supply chain financing for
            market competition and risk management in credit constrained firms.
Cash transfers, behavioral changes,
            and cognitive development in early childhood : evidence from
            a randomized experiment
A variety of theories of skill formation
            suggest that investments in schooling and other dimensions
            of human capital will have lower returns if children do not
            have adequate levels of cognitive and social skills at an
            early age. This paper analyzes the impact of a randomized
            cash transfer program on cognitive development in early
            childhood in rural Nicaragua. It shows that the program had
            significant effects on cognitive outcomes, especially
            language. Impacts are larger for older pre-school age
            children, who are also more likely to be delayed. The
            program increased intake of nutrient-rich foods, early
            stimulation, and use of preventive health care-all of which
            have been identified as risk factors for development in
            early childhood. Households increased expenditures on these
            inputs more than can be accounted for by the increases in
            cash income only, suggesting that the program changed
            parents' behavior. The findings suggest that gains in
            early childhood development outcomes should be taken into
            account when assessing the benefits of cash transfer
            programs in developing countries. More broadly, the paper
            illustrates that gains in early childhood development can
            result from interventions that facilitate investments made
            by parents to reduce risk factors for cognitive development.
Farm productivity and market
            structure : evidence from cotton reforms in Zambia
This paper investigates the impacts of
            cotton marketing reforms on farm productivity, a key element
            for poverty alleviation, in rural Zambia. The reforms
            comprised the elimination of the Zambian cotton marketing
            board that was in place since 1977. Following
            liberalization, the sector adopted an outgrower scheme,
            whereby firms provided extension services to farmers and
            sold inputs on loans that were repaid at the time of
            harvest. There are two distinctive phases of the reforms: a
            failure of the outgrower scheme, and a subsequent period of
            success of the scheme. The authors' findings indicate
            that the reforms led to interesting dynamics in cotton
            farming. During the phase of failure, farmers were pushed
            back into subsistence and productivity in cotton declined.
            With the improvement of the outgrower scheme of later years,
            farmers devoted larger shares of land to cash crops, and
            farm productivity significantly increased.
Is cost recovery a feasible
            objective for water and electricity The Latin American experience
Given the relatively small segment of
            the population that faces genuine affordability problems in
            Latin America, there appears to be a promising case for
            using targeted subsidies to reconcile the cost recovery
            objective with social protection concerns. Social tariff
            schemes of various kinds are already widespread in Latin
            America, but they suffer from a number of design flaws.
            Increasing block tariff (IBT) structures are the most
            prevalent form of social tariffs in the region. These are
            likely to be more successful in the electricity sector than
            in the water sector because the correlation between
            consumption and income is much stronger in the case of
            electricity than water. Moreover, IBT structures in
            electricity tend to be much better designed than in the case
            of water, with lower fixed charges, lower subsistence
            blocks, and steeper gradients. A number of more
            sophisticated social tariff schemes are also being applied
            that combine consumption criteria with some form of
            socioeconomic screening. These are generally found to
            perform better than IBTs, although they also present
            significant room for improvement.
Regional approaches to better
            standards systems
Developing countries face an increasing
            need to upgrade the standards of their domestic markets and
            of their exports. This paper examines different approaches
            available to them for upgrading their standards and
            conformity assessment procedures. It focuses particularly on
            those followed within the context of regional trade
            agreements (RTAs), as these are yielding promising results.
            Based on interviews performed in Latin America and on
            previous literature, the paper draws common features of a
            RTA standard and conformity assessment upgrading and
            harmonization process, identifies some of its main
            challenges, and suggests principles that developing
            countries could follow in such a process.
Regional approaches to better
            standards systems
WPS3948

# **Regional Approaches to Better Standards Systems**

## Enrique Aldaz-Carroll<sup>1</sup>

## **Abstract**

Developing countries face an increasing need to upgrade the standards of their domestic markets and of their exports. This paper examines different approaches available to them for upgrading their standards and conformity assessment procedures. It focuses particularly on those followed within the context of regional trade agreements (RTAs), as these are yielding promising results. Based on interviews performed in Latin America and on previous literature, the paper draws common features of a RTA standard and conformity assessment upgrading and harmonization process, identifies some of its main challenges and suggests principles that developing countries could follow in such a process.

**Keywords:** standards, conformity assessment procedures, harmonization, upgrading, regional trade agreement.

World Bank Policy Research Working Paper 3948, June 2006 _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 view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org._

> 1 Email: ealdazcarroll@worldbank.org. This paper was written as a Background paper for the _Global Economic Prospects 2005: Trade, Regionalism and Development_ , World Bank, Washington, D.C.  The author would like to specially thank Paul Brenton for his very helpful suggestions and comments and all those who provided useful comments on the paper; particularly Manuel Olarreaga, Fredy Núñez, Reinaldo Figueiredo, Richard Newfarmer, Mirvat Sewadesh, Fernando Hernandez, Barbara Kotschwar, John Wilson, Steve Jaffee and Manuel Albaladejo; as well as the interviewees for their time.

1
The impact of energy price changes
            in Moldova
In January 2006 the price of natural gas
            supplied to Moldova increased from $80 to $110 per thousand
            cubic meters (mcm). Prices may increase further in the near
            future, putting additional pressure on the economy and
            leading to adverse effects on the poorest households. This
            study examines the potential impact of higher energy prices
            on the economy of Moldova by simulating the likely
            macroeconomic consequences of recent and future price
            increases. Moreover, it estimates the direct impact on
            individual households using data drawn from the 2004
            Household Budget Survey. It assesses the distributional
            implications of the price shock, noting how the social
            impact may vary depending on the intensity of energy use,
            geographic location, and the relative share of energy in
            household expenditure. The results suggest that energy price
            changes could dampen economic growth while putting
            additional strains on the current account deficit. The
            impact on the poorest households could be significant and
            protecting them may require resources in the amount of 0.7
            to 1.7 percent of GDP. This study identifies possible policy
            responses to dampen the shock of the energy price increase
            and to promote the longer-term objective of reducing energy vulnerability.
The impact of energy price changes
            in Moldova
WPS3960

# **The Impact of Energy Price Changes in Moldova**

Iaroslav Baclajanschi, Lawrence Bouton, Hideki Mori, Dejan Ostojic, Taras Pushak and Erwin R. Tiongson<sup>1</sup> The World Bank, 1818 H Street, NW, Washington, DC 20433

## **Abstract**

In January 2006, the price of natural gas supplied to Moldova increased from $80 to $110 per thousand cubic meters (mcm). Prices may increase further in the near future, putting additional pressures on the economy and leading to adverse effects on the poorest households. This study examines the potential impact of higher energy prices on the economy of Moldova by simulating the likely macroeconomic consequences of recent and future price increases. Moreover, it estimates the direct impact on individual households using data drawn from the 2004 Household Budget Survey (HBS). It assesses the distributional implications of the price shock, noting how the social impact may vary depending on the intensity of energy use, geographic location, and the relative share of energy in household expenditure. The results suggest that energy price changes could dampen economic growth while putting additional strains on the current account deficit. The impact on the poorest households could be significant and protecting them may require resources in the amount of 0.7 to 1.7 percent of GDP. This study identifies possible policy responses to dampen the shock of the energy price increase and to promote the longer-term objective of reducing energy vulnerability.

JEL Classification Numbers: L95, I32, I39 Keywords: natural gas, prices, macroeconomic impact, poverty World Bank Policy Research Working Paper 3960, July 2006 _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 view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org._

> 1 Corresponding author: Lawrence Bouton, Europe and Central Asia Region, MSN H4-401, World Bank, 1818 H Street, NW, Washington, DC 20433 USA. Tel. (202) 473 9158. email: lbouton@worldbank.org.

1
Financial development in Latin
            America : big emerging issues, limited policy answers
This paper argues that the dominant
            policy paradigm on financial development is increasingly
            insufficient to address big emerging issues that are
            particularly relevant for financial systems in Latin
            America. This paradigm was shaped over the past decades by a
            fundamental shift in thinking toward market-based financial
            development and a complex process of financial crises
            interpretation. The result has been a richly textured policy
            paradigm focused on promoting financial stability and the
            convergence to international standards. It argues, however,
            that there is a growing dissonance between the current
            paradigm and the emerging issues, which is illustrated by
            discussing challenges in three areas: stock markets, small
            and medium enterprise loans, and defined-contribution
            pension funds. The paper concludes that the dominant policy
            paradigm is ill-suited to provide significant guidance in
            relation to the big emerging issues. It emphasizes the need
            to take a fresh look at the evidence, improve the diagnoses,
            revisit expectations, and revise the paradigm.
Income diversification in Zimbabwe :
            welfare implications from urban and rural areas
The author examines, taking into account
            the urban-rural divides, the changes and welfare
            implications of income diversification in Zimbabwe following
            macroeconomic policy changes and droughts of the early
            1990s. Data from two comparable national income, consumption
            and expenditure surveys in 1990-91 and 1995-96, which
            straddled a period of economic volatility and natural
            disasters, show that the percentage of households earning
            income from private and informal sources grew considerably,
            while that from government and formal sources declined in
            the aftermath of the drought and policy changes. The author
            finds that, in general, rural households tend to have a more
            diversified portfolio of income compared with their urban
            counterparts, and the degree of diversification decreases
            with the level of urbanization. However, there are important
            differences in the level of diversification within the rural
            and urban areas depending on wealth: While the relatively
            better-off households have a more diversified income base in
            rural areas, it is the poor who pursue multiple income
            sources in urban areas. A decomposition of changes in
            welfare indicates that the total contribution of income
            diversification is large and increased between 1990-91 and
            1995-96 in both urban and rural areas. On the other hand,
            there were significant declines in returns to human and
            physical capital assets during the same period. The findings
            suggest that households with a more diversified income base
            are better able to withstand the unfavorable impacts of the
            policy and weather shocks. The fact that relatively
            better-off households have a more diversified income base
            following the shocks implies that the poor are more
            vulnerable to economic changes unaccompanied by
            well-designed safety nets.
Can information campaigns spark
            local participation and improve outcomes A study of primary
            education in Uttar Pradesh, India
There is a growing belief in development
            policy circles that participation by local communities in
            basic service delivery can promote development outcomes. A
            central plank of public policy for improving primary
            education services in India is the participation of village
            education committees (VECs), consisting of village
            government leaders, parents, and teachers. The authors
            report findings from a survey in the state of Uttar Pradesh,
            of public schools, households, and VEC members, on the
            status of education services and the extent of community
            participation in the public delivery of education services.
            They find that parents do not know that a VEC exists,
            sometimes even when they are supposed to be members of it;
            VEC members are unaware of even key roles they are empowered
            to play in education services; and public participation in
            improving education is negligible, and correspondingly,
            people's ranking of education on a list of village
            priorities is low. Large numbers of children in the villages
            have not acquired basic competency in reading, writing, and
            arithmetic. Yet parents, teachers, and VEC members seem not
            to be fully aware of the scale of the problem, and seem not
            to have given much thought to the role of public agencies in
            improving outcomes. Learning failures coexist with public
            apathy to improving it through public action. Can local
            participation be sparked through grassroots campaigns that
            inform communities about the VEC and its role in local
            service delivery? Can such local participation actually
            affect learning outcomes, and can any impact be sustained?
            The authors describe information and advocacy campaigns that
            have been experimentally implemented to address some of the
            problems with local participation, and future research plans
            to evaluate their impact.