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Ideas for Growth Jonathan Leape Executive Director, International Growth Centre Associate Professor of Economics, London School of Economics. www.theigc.org. An unprecedented opportunity to bring research into policy to promote growth. Economics has changed

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  1. Ideas for GrowthJonathan LeapeExecutive Director, International Growth CentreAssociate Professor of Economics, London School of Economics www.theigc.org

  2. An unprecedented opportunity to bring research into policy to promote growth Economics has changed - A ‘credibility revolution’ (and an explosion of data) - Renewed interest in growth and development issues Policy-making has changed - Democratization and policy innovation - Rise of evidence-informed decision-making Emergence of new approaches - International Growth Centre: Co-generation of knowledge through collaboration - State effectiveness, Firm capabilities, Cities and Energy

  3. Performance pay for tax collectors can boost revenues: Evidence from Pakistan Effects displayed as percent increase in total recovery in 4th quarter of each fiscal year Stars indicate significance levels. * p <0.10, ** p<0.05, *** p<0.01 Ben Olken (MIT), AsimKhwaja (HKS), Adnan Khan (IGC)

  4. Democratic accountability works to improve the efficiency of public spending: Evidence from road building in Kenya Robin Burgess (LSE & IGC), RemiJedwab (GWU), Edward Miguel (Berkeley), AmeetMorjaria (World Bank), Gerard Padro I Miquel (LSE)

  5. Management matters in the public sector:Evidence from the Nigeria ‘Open initiative’ (2006) to track effectiveness of government expenditures Researchers linked measures of management practice to project outcomes Imran Rasul (UCL), Daniel Rogger (UCL)

  6. Management matters in the private sector, too: Evidence on management and productivity Productivity varies strongly across and within firms Developing countries have a ‘rump’ of low productivity firms Quality of management practices are a decisive determinant of firm productivity Distribution of management scores across countries Bloom (Stanford), Van Reenan (LSE) Manufacturing productivity within and across factories Chris Woodruff (Warwick), Rocco Macchiavello (Warwick)

  7. The ‘missing middle’ and low productivity traps: ‘Home grown’ is not the answer • ‘Home grown’ industries such as beer, cement, sugar, may be stuck in low productivity traps because they sell into ‘safe’ local markets • Large manufacturing firms may not start as small firms Connecting to international supply chains is a key route to industrialisation Origins of Ethiopia’s leading companies Sutton (LSE)

  8. The failure of the Green Revolution in Africa is a market problem, not a technological one Role of poor information, imperfect insurance, credit constraints Laboratory tests results (nitrogen content from 50 samples of UREA from retailers in Eastern Uganda) JakobSvensson (Stockholm), David Yanagizawa-Drott (Harvard)

  9. Energy: The demand side matters! Demand management - Industry - Households 1.5 billion people are without electricity (2.5bn rely on solid fuel) Access to reliable energy is crucial to household and firm productivity and therefore to growth Circular cycle of debt, generated by consumers Robin Burgess (LSE), Michael Greenstone (MIT), Rema Hanna (KSG), Nicholas Ryan (Harvard)

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