Curated Reports

How Tax Policy and Tax Incentives Affect FDI

Source: World Bank     Report Date: December 2000

Tax incentives neither make up for serious deficiencies in a country's investment environment nor generate the desired externalities. But when other factors-such as infrastructure, transport costs, and political and economic stability-are more or less equal, the taxes in one location may have a significant effect on investors' choices. This effect varies, however, depending on the tax instrument used, the characteristics of the multinational company, and the relationship between the tax systems of the home and recipient countries. Read Full Report
Institutions and the African Farmer

Source: Consultative Group on International Agricultural Research     Report Date: September 1999

Getting African agriculture moving is the most complex and demanding task facing policy makers, agricultural scientists, and donors over the coming 25 years. This publication, based on the text of a presentation given at the CIMMYT Economics Program's third Distinguished Economist lecture, examines Africa's empty harvest in historical perspective and analyzes the failure of agricultural institutions imported from other continents (e.g., T&V extension and the land grant university model). The author argues that there is an urgent need for African agriculturalists to experiment with different agricultural institutions and to craft national "agricultural knowledge triangles" that include research, extension, and agricultural higher education. Africa's universities are the weak link in the agricultural knowledge triangle. The lecture then analyzes the reasons underlying the erosion in the capacity of Africa's faculties of agriculture to offer high quality graduate training in agriculture. Taking the long view of building sustainable agricultural institutions, the author outlines eight challenging puzzles that require debate and further study: creating a good institutional environment; crafting agricultural knowledge triangles; the case for long-term scientific assistance; the expanded aid agenda; changing roles of public and private institutions and NGOs; institution building versus marginalist approaches; strategic issues in improving the quality of graduate education; and "whither the CGIAR." Read Full Report
Global Financial Stability Report – Grappling with Crisis Legacies

Source: International Monetary Fund     Report Date: September 1999

Financial stability risks have increased substantially over the past few months. Weaker growth prospects adversely affect both public and private balance sheets and heighten the challenge of coping with heavy debt burdens. Public balance sheets in many advanced economies are highly vulnerable to rising financing costs, in part owing to the transfer of private risk to the public sector. Strained public finances force policymakers to exercise particular care in the use of fiscal policy to support economic activity, while monetary policy has only limited room to provide additional stimulus. Against this backdrop, the crisis— now in its fifth year—has moved into a new, more political phase (Figure 1.1). In the euro area, important steps have been taken to address current problems, but political differences within economies undergoing adjustment and among economies providing support have impeded achievement of a lasting solution. Meanwhile, the United States is faced with growing doubts over the ability of the political process to achieve a necessary consensus regarding medium-term fiscal adjustment, which is critically important for global stability. As political leaders in these advanced economies have not yet commanded broad political support for sufficiently strengthening macro-financial stability and for implementing growth-enhancing reforms, markets have begun to question their ability to take needed actions. This environment of financial and political weakness elevates concerns about default risk and demands a coherent strategy to address contagion and strengthen financial systems. Read Full Report
Agriculture,Poverty, and Policy Reform in Sub-Saharan Africa

Source: World Bank     Report Date: December 1995

There is a strong relationship between agricultural stagnation and poverty in Sub-Saharan Africa. * Much, though not all, of the solution for poverty alleviation depends on stimulating agricultural growth in Africa. Data collected by the World Bank, the Food and Agricultural Organization of the United Nations (FAO), and the African Governments, shows that most of Africa's poor live in rural areas and depend on agriculture for survival. The dependence is both direct in growing food and cash crops, and indirect by working on farms or by trading in agricultural inputs and products. Growth of agriculture, of agricultural production, and of agricultural incomes helps the rural poor, and hence alleviates poverty. It also helps the non-poor, in some cases more than the poor. In the few African countries which have implemented policy reforms consistently and reduced implicit and explicit taxation on agriculture and investment in agriculture, there has been some modest revival of agriculture growth, averaging between 3.5 to 5 percent for several years. Nigeria, Uganda, Tanzania, Benin, Guinea, and Mauritius represent these good agricultural performers. Read Full Report