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This edition of IDEA reviews a few of the highlights of the Research Department’s 20th anniversary meeting. More importantly, it invites readers to participate in its ongoing journey to discover new avenues for development in Latin America and the Caribbean by following its twitter account, @IDB_thinks, and its recently launched blog, Ideas que cuentan.
The literature on aid effectiveness has focused more on recipient policies than the determinants of aid allocation yet a consistent result is that political allies obtain more aid from donors than non-allies. This paper shows that aid allocated to political allies is ineffective for growth, whereas aid extended to countries that are not allies is highly effective. The result appears to be robust a ... (View publication)
This paper considers a conditional cash transfer program targeting poor households in small rural villages and studies the effects of the geographic proximity between villages on individual enrollment decisions. Exploiting variations in the treatment status across contiguous villages generated by the randomized evaluation design, the paper finds that the additional effect stemming from the density ... (View publication)
This report is devoted to the social impact of the crisis and focuses on its effects on employment, nutrition, education, and poverty. It identifes the mechanisms by which the crisis can affect these critical social dimensions, and discusses possible policy responses given each country's circumstances, fiscal space and administrative capabilities. The social challenge generated by the crisis is no ... (View publication)
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