World Institute for Development Economics Research

August 1999 No. 1/99

Ending Africa’s Conflicts WIDER Lessons on Emergencies by Tony Addison onflict is directly related to inequality between social groups, state failure, economic decline and ar has destroyed the lives and hopes of millions economicC shocks according to UNU/WIDER Policy W of Africans. It poses major challenges to the Brief No.2, Social and Economic Policies to Prevent United Nations system and to the wider development com- Complex Humanitarian Emergencies. The report was munity. Why conflict occurs, why some countries avoid it, launched on 22-23 March at the United Nations how we end it, and how we reconstruct afterwards are the Headquarters in New York, and delivered to the UN’s key issues facing Africa today. ECOSOC meeting on 13 July in Geneva by Professor Rebuilding Africa’s war-damaged economies involves Frances Stewart (Oxford University). reconstructing communities, revitalising private sectors, UNHCR /B.Press photo and building state capacities. This is a demanding set of tasks given the scarcity of financial resources and skills.

By failing to deliver broad-based growth, the economic strategies of conflict countries contributed to the onset of war. Reconstruction, if it is to be successful, must avoid recreating the past. Past strategies must be rethought, and policies, public expenditures and institutions must be changed. Consequently, there is common ground between the agenda of reconstruction and the agenda of economic reform (or ‘transition’). Indeed, since both aim to raise living standards, their design and implementation should be one and the same process.

This is seldom the case, however, mainly because of the variety of donor agencies involved - each with its own responsibilities - together with weak national capacities. For example, communities are being helped to reconstruct but their needs are not adequately incorporated into either Refugees from Burundi in Rwanda the design of privatization programmes or fiscal frameworks. Hence, possibilities for poverty reduction are To prevent conflict, the international community missed. should give more priority to appropriate development policies, meaningful forms of foreign aid, and stronger The uneasy relationship between reconstruction and state and civil society institutions. These, and other reform is a core issue in the UNU/WIDER project on findings, were widely reported in the international press ‘Underdevelopment, Transition and Reconstruction (UTR) and media, including CNN and the International Press in Sub-Saharan Africa’. This project focuses on Angola, Service. The policy brief, authored by Jeni Klugman, Eritrea, Ethiopia, Guinea-Bissau, Mozambique, and summarises the results of the UNU/WIDER project Somalia. These countries share a common history; ‘The Wave of Emergencies of the Last Decade’, a Marxism-Leninism underpinned their early development project led by Wayne Nafziger, Frances Stewart, and strategies, and economic failure together with the Cold Raimo Väyrynen. The report is posted on the War led to intense, and often recurring, conflict. War has Institute’s website (www.wider.unu.edu). Further killed at least 4 million people, mostly civilians, in these details of how to obtain this and other UNU/WIDER countries. publications are provided on page 11 of this (continued on page 2) newsletter.

The United Nations University Eritrea is creating the institutions faced by the UTR countries: Problems encountered necessary for a new state. Somalia overcoming underdevelopment and in the economic transi- never completed economic transition the political instability associated tions of Eastern Europe and the state itself collapsed. with it, completing the transition from state socialism, and reconstruction and the Former Soviet Problems encountered in the from conflict so that peace endures. Union are evident in economic transitions of Eastern Africa as well. Europe and the FSU are evident in Africa as well. These include institutional failure (especially in property rights), non-transparent Three Key For Angola the peace agreement of privatization, the neglect of Challenges 1994 proved to be yet another appropriate regulation (especially in temporary cease-fire, and war has banking), chronic fiscal imbalance, now resumed. Eritrea and Ethiopia and a sharp and socially destabilizing Reconstruct communi- began reconstruction after the Derg’s rise in inequality (especially in ties to achieve broad- overthrow in 1991 and Eritrea’s Angola). independence, but began an based growth unexpected war in 1998. In Guinea- With the exception of Mozambique, Bissau a promising recovery was set economic reconstruction and back by a military revolt in 1998. transition have been reversed by Facilitate the creation of There is as yet no end in sight for new conflicts. Indeed, Eritrea’s a new private sector Somalia’s conflict. Much of the introduction of a new currency country remains insecure, while (marking the end of its monetary Somaliland (in the Northeast) has union with Ethiopia) was one of the Build a development seceded. Only Mozambique has triggers of the present war. The state to implement managed to maintain the momentum difficulties encountered by UTR of peace, and considerable - countries highlight the close broad-based growth although very uneven - reconstruc- relationship between economic- tion has been achieved since the end policy decisions and the prospects of the war in 1992. for peaceful development. Country strategies do not adequately Photo by A. Hollmann/UNHCR Tony Addison, from the University of Warwick (UK), is a UNU/ WIDER research fellow, and the director of the project on ‘Under- development, Transition and Reconstruction in Sub-Saharan Africa’.

For further discussion see Tony Addison ‘Underdevelopment, Transition and Reconstruction in Sub-Saharan Africa’ UNU/WIDER Research for Action 45 and ‘Rebuilding Post-Conflict Africa: Reconstruction and Reform’ Research in Progress 18. Somali refugee camp in Ethiopia Under state socialism, enterprises address these issues, and thus UNU/WIDER gratefully acknowl- and natural resources were reconstruction and transition are edges the financial contributions nationalized (land in particular), often in tension with each other. of the Governments of Italy, market controls were imposed, and Meanwhile, old causes of conflict - Sweden and the United Kingdom Soviet-style planning was attempted. contests over the state (Guinea- to the project. But these strategies failed to Bissau) and natural resource wealth conquer underdevelopment, and (Angola) - continue to fester. For information on this and other economic transition- as in the Former projects please visit our website Soviet Union (FSU) itself - became Thus, the title of the UNU/WIDER at: www.wider.unu.edu. urgent. project reflects the three challenges

2 BY INVITATION Aid and Conflict in Rwanda by Stephen Browne very ‘conflict country’ is a of development. What seems programme and benefited in 1999 special case. What distin- extraordinary now is that none of the from a new programme loan from the guishesE Rwanda is the intensity of donors appeared to be aware of the World Bank. The profile of aid is human destruction to which the Government’s careful preparations again changing in favour of country succumbed in 1994. One for one of the worst massacres in development assistance. seventh of the population, mostly human history. Yet information was from the Tutsi minority, was available from which the cataclysm But donors need to learn from massacred in the space of three could have been predicted. Rwanda’s recent history, if tragedy months. The academic, commercial, is not to be repeated. This is and professional elite was Indeed, some observers have argued especially true in circumstances decimated. Nine-tenths of the that aid, in supporting the (applicable to many African population was displaced, and basic Government’s policies and countries) in which political, infrastructure was destroyed. programmes, may have contributed commercial and academic power and to the conditions that incubated influence are again concentrated in Prior to the genocide, Rwanda genocide. Rwandan society has a few hands, since aid inevitably received large amounts of aid. From suffered from high levels of constitutes a contentious, and 1988 to 1991, total official ‘structural violence’ - inequality, contested, prize. development assistance (ODA) rose marginalisation and ethnic bias - from almost $250 million per year to which were often rooted in, and First, all bilateral and multilateral over $350 million (approximately $50 exacerbated by, state action. The donors need to agree on the per capita). This aid was recently completed UNU/WIDER economic, political and social norms supplemented by humanitarian project on complex humanitarian that are currently most likely to assistance, which increased in 1992 emergencies highlights the role of promote stable, open, and inclusive and 1993 as the civil war between unbalanced development as a cause governance in Rwanda. Currently, the Government, and the Tutsi- of conflict in Rwanda, and other donors are divided in their dominated rebels intensified and countries. willingness to assist. Some donors, displaced large numbers of people historically close to the previous (refugees from massacres in Burundi The tragic impotence of the donor Hutu regime, are reluctant to become also fled to Rwanda during this time). community in the face of the engaged with a Tutsi-dominated These levels of aid were maintained unfolding genocide has been well Government. Aid should be more until the genocide, following which chronicled. While the blame has not objective. ODA doubled to over $700 million, been clearly apportioned and Second, donors must apply stricter mostly humanitarian aid. Today, aid admitted, it is widely agreed that criteria to their aid programmes, inflows total $400 million per year, appropriate interventions by the which must be appraised according with development aid in the international community could have to the criteria of reconciliation, not ascendant. prevented the loss of hundreds of thousands of lives. In one hundred division. Projects that spread their This juxtaposition of aid and days, this country - together with its benefits unevenly across ethnic conflict prompts important patrimony of aid - self-destructed. groups, for example training grants questions about the power and that favour one group over another, effectiveness of aid. Before the The aid that then poured into should be avoided. Donors must genocide Rwanda was implementing Rwanda following the genocide was never again acquiesce to apartheid a programme of structural partial atonement. Whatever its in Africa. adjustment, supervised by the IMF motives, aid helped to rebuild the Stephen Browne is the United and the World Bank. The country country, at least its economy and Nations Development and enjoyed an unusually good image physical infrastructure. By the end Humanitarian Co-ordinator for with the donors, the most important of the 1990s, the economy is roughly of which had resident missions in back to where it was at the start of Rwanda. the decade. Kigali. For further discussion of Rwanda Thus, the aid donors had a major Rwanda is now entering a post- see Peter Uvin ‘Development, Aid stake in Rwanda in the months prior crisis phase. It is in the second year and Conflict: Reflections from the to the genocide, and indeed many of an IMF Enhanced Structural Case of Rwanda’, UNU/WIDER, saw the country as an African model Adjustment Facility (ESAF) Research for Action 24.

3 Managing Resource Abundance by Richard Auty

t first sight, countries mineral and other revenues causes In transition economies (the that are abundant in minerals their currencies to appreciate thereby countries of the Former Soviet andA other natural resources should reducing their competitiveness in Union, for example), resource enjoy faster development. But foreign and home markets. Fears of abundance may inhibit the creation between 1960 and 1990 the per unemployment encourage trade- of a market economy. Revenue capita incomes of the resource- policy closure to protect inflows make economic reform deficient countries grew two to three domestic producers. Growth appear less urgent and the times as fast as those of the becomes dependent upon a few associated appreciation of the resource-abundant countries despite staples that must provide foreign currency retards diversification into the latter’s apparently greater exchange and transfers to the competitive job-intensive activities. development potential. This burgeoning ‘infant’ industries (which Moreover, resource rents often feed performance gap widened signifi- are often capital-intensive). corruption when institutions are cantly from the 1970s onwards. weak and when the resource rents Understanding this paradox is a key Photo by David Mangurian, IDB focus of the UNU/WIDER project on ‘Environmental, Export and Human Development Problems in Natural- Resource Based Growth Models’.

Resource-deficient countries are less prone than resource-abundant countries to policy failures that lead to growth collapses. Successful resource-deficient countries have pursued a sequenced industrializ- ation path (for example South Korea). This is characterised by early movement into labour-intensive manufactured exports. Such growth absorbs surplus labour and accumulates skills; this in turn Natural gas extraction in Latin America changes their comparative advantage and they shift into Vested interests in trade closure capital-intensive and skill-intensive capture policy so that governments Key Lessons goods and then into R and D resist the politically unpopular intensive products. Genuine saving currency depreciation that is Resource-abundant (a measure of environmental required to sustain growth economies often (especially in labour-intensive sustainability) is usually strongly misallocate resources positive in countries that exports). Instead they either borrow successfully take this path. These from abroad or squeeze the primary economies are resilient to external sector further so that incentives are Resource abundance shocks and usually sustain rapid and depressed and competitiveness hampers the transition equitable growth. Basically, a wanes. Investment efficiency to a market economy meagre natural resource endowment declines, human capital accumulates constrains policy choice and slowly, and economic diversification A meagre resource provides less scope than resource is retarded. Resource-abundant endowment provides less economies therefore become highly abundance does for cumulative scope for policy error policy error. vulnerable to even mild external shocks (such as a fall in the terms of In contrast, many resource-abundant trade). A growth collapse results, Malaysia’s successful countries leapfrog the labour- even in capital surplus countries like resource-driven growth intensive stage of industrialization Saudi Arabia that did not close their shows that policy counts and move earlier into capital- economies. intensive industry. The inflow of (continued on page 5)

4 accrue mainly to the government, as BY INVITATION in the cases of the mineral economies and the transition Containing the Human Impact of economies. Such economies eventually experience deep output losses. It may take at least a Economic Crisis generation to recover from the by Nora Lustig collapse in growth associated with mismanagement of resource atin America went through Not enough was done to minimise abundance. In particular, social and a severe economic recession in the poverty impact of the severe economic infrastructure and Lthe 1980s, and crises erupted again economic crisis of the 1980s and institutions must be rebuilt and this in the 1990s, most notably Mexico some valuable lessons can be takes considerable time. Growth and Argentina in 1995, and Brazil in extracted from this experience. collapse can have especially acute 1999. Such macro-economic crises hit Social funds were implemented social effects in the smaller resource- the poor in numerous ways. several years (or even a decade) abundant economies, and may Declining labour earnings, after the debt crisis erupted, and most trigger violent conflict in ethnically unemployment, and inflation neglected to improve the income- diverse societies when one group combine to reduce household generating capacity of the poor. The captures most of the resource rents. income. Many poor households International Financial Institutions react to a crisis by putting children (IFIs) focused on assisting However, resource abundant to work, by postponing preventive stabilization and liberalization efforts Malaysia demonstrates that policy or curative health measures or by and generally neglected to help counts and that a growth collapse is reducing the nutritional intake of governments protect pro-poor avoidable. Concern for income young children. These actions, services from public spending cuts. inequality in Malaysia led to a tacit combined with the breakdown of Thus opportunities to help the poor agreement between the two families and communities, were missed and, as a result, the poor dominant ethnic groups that undermine the living standards, suffered losses of assets and human economic growth was a pre- social capital and long-term capital that subsequent economic requisite for poverty alleviation. A development possibilities of the recoveries only partially reversed. conscious effort was therefore made poor. The harm done may be to diversify the economy and to irreversible when the poor make avoid both trade policy closure and decisions due to extreme necessity the repression of economic in the face of a crisis that reduces Many poor households incentives. Malaysia displayed a their accumulation of human or capacity to manage latent social react to a crisis by putting physical capital. tensions that is rare in resource- children to work, by abundant economies where all too The design of adjustment measures postponing preventive or often the resource rents have been such as devaluation, restrictive curative health measures used to buy short-run political monetary and fiscal policies, trade support at the cost of long-term liberalization and deregulation also or by reducing the nutri- development. influences the poverty outcome. tional intake of young Each adjustment measure has its own children. Richard Auty, from the University implications for poverty. While of Lancaster (UK), is a UNU/ adjustment is usually inescapable, WIDER Senior Research Fellow there is much scope for minimising and the director of the project on its cost to the poor. For example, Despite the experience of the 1980s, ‘Environmental, Export and fiscal retrenchment should protect both countries and IFIs were ill Human Development Problems in pro-poor public spending, prepared to cope with the poverty Natural-Resource Based Growth particularly primary education, impact of the new crises of the 1990s. Models’. basic health services, and safety net The 1995 crisis in Mexico and programmes that target low income Argentina imposed severe hardship The financial contribution households in rural areas and urban on the poor. For example, in of the Government of Sweden neighbourhoods. If the fiscal Argentina poverty rose from 16.9 to this project is gratefully adjustment is done in a regressive percent in 1993 to 24.8 percent in acknowledged. way, protecting the rich and 1995. Even though there has been leaving the poor to cope alone, then some progress in protecting the poor income inequality and social conflict from the crisis - income-smoothing will rise. (continued on page 6)

5 Photo by Willie Heinz, IDB

Crisis and the Poor: a Template for Action

Create permanent institutions to manage the human effects of economic crisis

Develop safety nets to respond rapidly Educating girls is crucial to poverty reduction when shocks occur safety nets are now operating in and make them more accountable to Focus fiscal policy Argentina and Mexico - hasty the needs of the poor. Micro-finance improvisation remains all too and other instruments can be used management on common. Fiscal strategies to protect to smooth consumption over the poverty reduction pro-poor spending only began to business cycle and rebuild capital take place during Brazil’s after a crisis. Countries must also Use information to devaluation crisis of 1999. As a build a consensus across society to result, much remains to be done. protect the poor and to enhance their monitor and track capacities. How best to implement the human impact of Ad hoc responses must be replaced and finance these and other crises by permanent structures to assess objectives remain urgent questions. and rapidly address the social effects Until they are resolved, economic of recession. Latin America’s basic recession - which is inevitable even Build social consen- services are under-funded, and with the best economic management sus for rapid and during economic crises they are - will continue to hurt the poor, and often cut by as much (or more) than will hinder longer run poverty flexible anti-poverty public spending that benefits reduction. We can do better. measures non-poor households. During an economic downturn, cash transfer programmes designed to help poor children stay in school are vital. Dr Nora Lustig is Chief of the Examples of these types of Poverty and Inequality Advisory programmes in the region include Unit at the Inter-American Brazil’s Bolsa Escola, Honduras’ Development Bank, and a member PRAF, and Mexico’s PROGRESA. of the UNU/WIDER Board. Inform- Moreover, since poverty information ation on the work of IDB’s Poverty and institutional capacities are weak, and Inequality Advisory Unit can self-targeting safety nets such as be found at www.iadb.org/sds/pov. Argentina’s Trabajar programme can For further discussion of the role of save many from destitution. These safety nets during economic crisis are just some of the ways in which to see the recent UNU/WIDER contain the human impact of publication ‘Social Funds in economic crisis. Stabilization and Adjustment The broad outlines of a template to Programmes’, Research for Action protect the poor during crisis are 48, by Giovanni Andrea Cornia. already apparent. Countries and IFIs must improve institutional structures

6 1999 Public Lectures UNU/WIDER aims to stimulate as together with some abuses of state and over-restrictive macro-economic much public debate as possible on intervention in Asia, led to policy. Professor Cornia emphasised today’s key development issues. the crisis - which was then that increases in income inequality The Institute’s public lecture series exacerbated by the IMF’s policy may be positive or negative for is very popular. Details of present advice and conditionality. Professor growth and poverty reduction and future lectures can be Jomo K. S. concluded that the crisis depending upon whether inequality found on our website has shown the dangers of is high or low to start with. (www.wider.unu.edu). inappropriate financial liberalization and excessive deregulation and has A World Financial Authority reawakened the debate over the respective roles of the state and the WIDER Annual he Asian financial crisis and the market in development. Lecture Tassociated turmoil in emerging economies has captured world Globalization and the 1 November 1999 attention. On 2 February Lord John Prospects for Democracy Eatwell (University of Cambridge, Is Rising Income UK) discussed this, and other and the Welfare State Inequality Inevitable? financial crises, which show that the he phenomenon of globalization international financial system is not is now the subject of intense A Critique of the working effectively. Market volatility debate.T On 25 March Professor Erik Transatlantic and financial contagion have led to Allardt (University of Helsinki) a slowdown in world growth and highlighted globalization’s impact on Consensus employment, and recurrent financial political democracy and welfare- by crises have severe impacts on state institutions. Does Globalization Professor Anthony emerging economies. Lord Eatwell reduce the importance of the nation concluded that if a liberal world order state or does it strengthen it at the Atkinson is to survive, then a World Financial expense of liberal democracy? Can (University of Oxford) Authority is needed to regulate the global democracy be developed? international financial system and to These and other important policy manage short-term capital flows. questions were addressed by The Asian Crisis: Lessons Professor Allardt who emphasised the complexity of the issues. Cultural and Prospects and social factors specific to Photo by Niklas Tallqvist individual countries and regions are important in designing policies to respond to globalization and its effects. Inequality and Poverty Under the Washington Consensus Venue:University of Oslo Auditorium 1 ncome inequality has been rising George Sverdrups hus, Professor Jomo K.S. in many regions of the world since theI early 1980s, thereby reversing (new library building) (16:15 - 18:00 hrs) he response of the International the decline in inequality seen in many Monetary Fund to the Asian countries prior to the 1980s. T Professor Giovanni Andrea Cornia This event is sponsored by financial crisis has been the subject the Royal Ministry for of much criticism. Professor Jomo (Director, UNU/WIDER) discussed K. S. (University of Malaya, Kuala the causes of this reversal, and its Foreign Affairs of Norway Lumpur) discussed the IMF’s implications, on 14 June. Increasing and hosted by the Centre policies and the causes of the Asian inequality is due to such factors as for Development and the crisis on 25 February. As a result of increasing concentration in the ownership of assets following Environment (SUM), financial liberalization, economies University of Oslo were made more vulnerable to herd privatization and liberalization, the behaviour in financial markets. This, erosion of labour market institutions,

7 1999 Board Meeting Photo by Kimmo Räisänen Institutional and Project Support for UNU/WIDER

On 11 May, the Director and staff met with government representatives from Denmark, Finland, Norway and Sweden to discuss UNU/ WIDER co-operation with the Nordic countries on research and other activities. Presentations on the Inst- itute’s current and forth- coming research programmes were discussed and key From the left, back row: Dr Jukka Pekkarinen, Dr Harris Mutio Mule, policy issues were identified. Professor Matti Pohjola, Professor Ramesh Thakur, Professor Ruben Nickolayevich The Danish and Norwegian Yevstigneyev. First row: Dr Masaru Yoshitomi, Professor Hans J. A. van Ginkel, Dr Ministries of Foreign Affairs George Vassiliou, Dr Sylvia Ostry, Professor Giovanni Andrea Cornia have pledged operational he 15th session of the UNU/ ownership and development in SSA; support for 1999 and 2000. WIDER Board was held 14 to 15 the impact of privatization and The Swedish International JuneT 1999 in Helsinki. Dr George regulation of utilities and social Development Co-operation Vassiliou is the Board Chairperson. services in Latin America; refugees, Agency (Sida) is providing The members of the Board are: Dr Nora international illegal migration, and project support for 1998- Lustig (who was unable to attend the poverty; new fiscal policies for growth meeting), Dr Harris Mutio Mule, Dr and poverty reduction; financial 1999. The Finnish Ministry Sylvia Ostry, Dr Jukka Pekkarinen contagion - how does it spread, how for Foreign Affairs tradition- (Vice Chairperson), Dr Ruben N. can it be stopped?; information ally provides in-kind Yevstigneyev, Dr Masaru Yoshitomi, technology, employment and the operational support to the Professor Hans J.A. van Ginkel, future of work; property rights Institute as well as some Rector, UNU (Ex-officio) and Profes- regimes, microeconomic incentives sor Giovanni Andrea Cornia, Director, and development; globalization and project support. UNU/WIDER (Ex-officio). Professor the obstacles to the successful Ramesh Thakur, Vice-Rector, UNU, integration of small vulnerable econo- The Yrjö Jahnsson Founda- attended the session as an observer. mies; why some countries avoid tion, Finland, is supporting the conflict while others fail - the impact The Board met with researchers who November conference of the of public expenditures. Some of these made presentations on the progress projects are now underway. project on ‘EMU and its of their projects. Researchers Impact on Europe and the benefited from wide-ranging UNU/WIDER’s good working Developing Countries’. discussions with Board members, and relations with the host country were from their useful comments and discussed with Ambassador Kirsti suggestions. Lintonen, Under-Secretary of State, UNDP is contributing Department for International to the project on ‘Rising The Board discussed the 2000-2001 Development Co-operation, Ministry Income Inequality and research programme. The Board for Foreign Affairs of Finland. decided that the following projects The Board approved Ambassador Poverty Reduction: are they should be given priority: privatization, Compatible?’. Lintonen’s proposal for an indepen- unemployment and welfare in China; dent evaluation of the Institute’s institutional capabilities, reform research.

8 Staff News News and Events Vacancy 2000 at the latest. Qualified women candidates and scholars from Dr Mansoob Murshed from the Uni- Announcements developing/transitional countries are versity of Bradford joined the strongly encouraged to apply. Institute as Research Fellow in Applications are currently being January 1999. He is directing the invited for Research Fellows/Senior Only candidates who meet the research project on 'Globalization Research Fellows for the following required qualifications should apply. and the Obstacles to the Successful research projects: Applications, including full Integration of Small Vulnerable curriculum vitae, should be received 1. Privatization, Unemployment and Economies'. by 31 October 1999, and addressed Welfare in China to the Director of UNU/WIDER. Mr Georges Heinrich from Heriot- Information on research programmes Watt University (Edinburgh) 2. Institutional Capabilities, Reform and details of these vacancies can participated in the Internship Ownership and Development in sub- be found on the UNU/WIDER Programme between March and Saharan Africa website (www.wider.unu.edu). June. His research on ‘Dynamic 3. Insurance Against Poverty Aspects of Income Distribution and Poverty in Kyrgystan, 1993-1997’ 4. Refugees, International Illegal Programme was attached to the project on Migration and Poverty Announcements 'Income Distribution and Social 5. Why Some Countries Avoid Structure during the Transition'. Research Internships provide Ph.D. Conflict while Others Fail: The students the opportunity to conduct Ms Taina Iduozee joined the Impact of Public Expenditures research for 4 to 6 months with the Institute as Library Assistant in April. Institute’s faculty in Helsinki, Applicants for the positions commencing either in March or Professor Tim Shaw from Dalhousie are expected to have a Ph.D. in August 2000, on a topic related to University, Canada, was a visiting economics, development economics the research programme of UNU/ scholar in the Institute’s Sabbatical or related field, with 8-10 years of WIDER. Special emphasis is given Programme in June. He prepared a research experience (15-18 years for to applicants from developing and paper on ‘New Regionalisms and Senior Fellows) and at least a few transitional countries. A travel grant Underdevelopment, Transition and years of work in the specific areas and stipend is provided. It is expected Reconstruction in the Horn of indicated above. Africa’. that 4 to 5 interns will be selected. All candidates are expected to have Applications should include: a letter Mr Eyob Zere Asbu from the an excellent and verifiable of reference from the student’s University of Cape Town in South publications record and good supervisor(s) and a formal agreement Africa joined the Research drafting experience, to be fluent in from the candidate’s own university Internship Programme for Ph.D. oral and written English, and to be authorities. Forms can be students on 1 July 1999 for a familiar with the common PC-based downloaded from the UNU/WIDER period of four months. His work is word processing, statistical analysis website, obtained by e-mail, or by affiliated to the project on ‘Under- and data base programmes. writing to UNU/WIDER. development, Transition and Knowledge of an additional official The Short-term Sabbatical Reconstruction in SSA’. UN language would be an asset. Programme provides overseas Ms Tuula Asplund joined the Researchers hired at UNU/WIDER, researchers and academics an Institute as Administrative Helsinki will be contracted for a opportunity to spend 2 to 5 months Clerk in August. period of about two years in 2000 (except July and August) in Mr Philippe Le Billon from the (non-renewable) on a personnel Helsinki, interact with the University of Oxford joined the service agreement offering a resident academic staff and Internship Programme in August for highly competitive, all-inclusive, contribute to the UNU/WIDER a period of four months. His work is remuneration, and four weeks paid research programme with a affiliated to the project on vacation a year. For fellows paper to be included in a ‘Underdevelopment, Transition and operating out of their institutions, publication series. Applicants must Reconstruction in SSA’. arrangements can be exceptionally arrange sponsorship to cover their worked out but preference will be cost of participation in the Ms Zsuzsanna Oinas, Library given to those candidates who programme. Financial support will be Assistant, separated from the would be based in Helsinki. provided to partially cover living Institute in February. expenses. Three to four scholars will Mr Harri Ketonen, Administrative Those selected will be expected to be selected. Applications should Clerk, separated from the Institute in start by the end of the first quarter of include detailed curriculum vitae, a April.

9 list of publications, the topics of the Dr John Donahue and Dr Sasha 25 September, Barcelona, ‘The proposed research and the preferred Alexander Zouev, from UNICEF Impact of Privatization and the time for the sabbatical. (27 April). Regulation of Utilities and Social Services in Latin America’, Project Research areas include: economics Representatives from the Co-Director, Dr Cecilia Ugaz. of transition, long-term development departments for international prospects in sub-Saharan Africa, development cooperation of the 10 - 12 November, Helsinki, ‘EMU institutional, poverty and distrib- Nordic countries visited the and its Impact on Europe and the utive issues, international Institute for discussions. Developing Countries’, Project financial and growth issues, and Mr Raimo Anttola and Ms Anneli Director, Professor Charles national and global governance. Vuorinen, Finland, Professor Wyplosz. Ole Molgaard Andersen, Information on UNU/WIDER and Denmark, Ambassador Rolf Berg, 19-20 November, Helsinki, ‘Financial details of the above programmes can Norway and Mr Magnus Contagion: How it Spreads, How it be obtained at the Institute’s website: Alvesson, Sweden (11 May). can be Stopped’, Project Director, www.wider.unu.edu. Professor Yung Chul Park. Dr Hope P. White Davis, the Applications for both programmes President of WAFUNIF and Dr. 11-13 December, Helsinki, ‘Rising should reach UNU/WIDER (attn: Jorge E. Dominguez, the Income Inequality and Poverty Principal Academic Officer) Ambassador of Mexico to Finland Reduction: are they Compatible?’, by 31 October 1999. (27 May). Project Director, Professor Giovanni Andrea Cornia. Dr Juha Sylvester Rautjärvi, Visitors to International Atomic Energy UNU/WIDER Agency (28 June). University Lecture Dr Wolfgang Lutz, International Series Mr Carlos Magarinos, Director Institute for Applied Systems General of UNIDO (5 February). Analysis (12 July). UNU/WIDER research staff teach a range of courses at the University of Mr Anton Krudernik, Assistant Dr Peter Zalite, Ventspils Helsinki and the Helsinki School Administrator and Regional Augstskola (12 August). of Economics and Business Director on CIS at UNDP Administration as well as at (15 February). Dr Andrew J. Flatt, Director, universities outside Finland. These Statistics Division, ESCAP courses are offered to full-time Mr Noel Reynado, Compensation (18 August). Policy Officer UN/OHRM registered students in the respective (15-20 February). A group of students from the universities. University of Jyväskylä visited Professor Yung Chul Park, the Institute on 6 May. Department of Economics, Korea Forthcoming courses University and director of the UNU/WIDER research project on The Economics of the Information Financial Contagion and Crises Project Meetings Society at the Helsinki School of (16 March). September - December Economics and Business Admin- istration, 7 September - 24 October Dr David Husband, Acting 1999 1999. Lecturer, Matti Pohjola. Director of UNDP Tumen 10-11 September, Helsinki, ‘Group Secretariat in Beijing (26 March). The Economics of Development at Behaviour and Development’ the University of Helsinki, 2 Dr Wolf Grabendorff, Director of Project Directors, Professors Judith November - 9 December 1999. Main the Institute for European-Latin Heyer, Frances Stewart and building, lecture room 6. Lecturers, American Relations (17 April). Rosemary Thorp. Tony Addison and Mansoob Murshed. Dr Cecily Neil, Social Impact 17-18 September, Helsinki, Consulting Services (17 April). ‘Globalization and the Obstacles to The Economics of Development (Ad- the Successful Integration of Small vanced Course) at the University of Dr John W. Sewell, President of Vulnerable Economies’, Project Helsinki, 14 March - 20 April 2000. the Overseas Development Director, Dr Mansoob Murshed. Main building, lecture room 6. Council, Washington DC Lecturers, Tony Addison and (22 April). Mansoob Murshed.

10 UNU/WIDER Publications New Titles January - July 1999 Policy Briefs Books free of charge WP157 Liberalization, Globalization Policy Brief No. 2 Social and and Income Distribution, Giovanni Economic Policies to Prevent Andrea Cornia, March 1999 Complex Humanitarian Emergen- cies: Lessons from Experience, WP158 Inequality in Incomes and Jeni Klugman, March 1999. Access to Education: A Cross-Coun- try Analysis, Daniele Checchi, April 1999

WP159 Economic Theories of the Household: A Critical Review, Päivi Mattila-Wiro, April 1999

WP160 Rising Wealth Inequality and Changing Social Structure in Rural China, 1988-95, Terry McKinley and Mark D. Brenner, May 1999 Edited by Björn Hettne, András WP161 Group Behaviour and Devel- Inotai and Osvaldo Sunkel, The New opment, Judith Heyer, Frances Regionalism Series/International Stewart and Rosemary Thorp, Political Economy Series, Macmillan June 1999 Press Ltd, 1999, 270 pp. ISBN 0-333-68707-8 hardback, ISBN Research in Progress 0-333-68708-6 paperback. free of charge RIP19 The Change in the Financial WIDER Publications System and Developmental State in Korea, Kang-kook Lee, Publications such as the Research February 1999 for Action series, Working Papers, Research for Action Policy Briefs, Newsletters, and the USD 8.00 / FIM 30.00 RIP20 Regional Development and Public Lectures are published in Government Policy in China’s PDF format on the Institute’s The Asian Currency Crisis: RFA47 Transitional Economy, Jane Golley, website (www.wider.unu.edu). Origins, Lessons, and Future April 1999 Outlook, Abdur R. Chowdhury, Books are available from the February 1999 RIP21 Investment in Education and publishers and their outlets at the Income Inequality, Juha Honkkila, list price plus handling and mailing Social Funds in Stabilization RFA48 May 1999 costs. and Adjustment Programmes, Please address your orders for UNU/ Giovanni Andrea Cornia, April 1999 Journals WIDER publications to Ms Tuula Haarla at the address given on page Working Papers Journal of International Develop- 12 (e-mail [email protected]). USD 5.00 / FIM 20.00 ment, Volume 11 No. 3 (May/June Payment by: USD bank draft 1999). Publisher: WILEY press. payable to UNU/WIDER; credit card WP155 The Weightless Economy in Special issue edited by Giovanni (Amex, Eurocard, MasterCard, OK, Economic Development, Danny Andrea Cornia and Nguyuru H. I. Visa); and in FIM/EURO or USD to Quah, January 1999 Lipumba: The Impact of the the Institute’s bank account (please Liberalization of the Exchange Rate WP156 Wage Reform, Soft Budget ask for details). An invoice will be and Financial Markets in sub- Constraints and Competition, provided on request. Saharan Africa. Jian Sun, February 1999

11 News from the One Percent for Development Fund

UNU/WIDER was established by the UNU as its first research and training centre and started work in Helsinki, Finland, in 1985. Through its research and related activities, UNU/WIDER seeks to raise unconven- tional and frontier issues and to provide insights and policy advice aimed at improving the economic and social development of the poorest nations. WIDER Angle is the newsletter of the World Institute for Development Economics Research of the United Nations University The community of Lovaso-Mahatazana, Madagascar (UNU/WIDER). Published twice a year, the newsletter focuses on the Institute’s research activities. It is distributed free of wash house for 150 families is nearing completion in the village of charge. The newsletter is also available A Lovaso-Mahatazana hill in Madagascar. This construction project on our website at: www.wider.unu.edu. is supported by the Fund and work is undertaken by members of a Editorial contents by Tony Addison, humanitarian association. The project aims to ease the burden of women (e-mail: [email protected]). Design who must carry water from the lower part of the hill and to instruct and layout by Ara Kazandjian, (e-mail: children in hygiene. [email protected]).

The Fund considers project proposals and approves grants to finance UNU/WIDER UNU/INTECH Helsinki UNU/INRA small development projects in poorer developing countries. Preference is Maastricht Finland Accra given to projects which: Netherlands Ghana UNU UNU/ILA Headquarters UNU/IAS seek to achieve a more equitable social and economic structure and Amman Tokyo, Japan Tokyo • Jordan Japan which promote the participation of people in their own development UNU/INWEH UNU/BIOLAC Caracas Ontario UNU/IIST Venezuela • directly benefit the least favoured sections of the population Canada Macau (particularly poor children and families)

• promote collective self-reliance through popular participation UNU/WIDER Katajanokanlaituri 6 B • promote activities at the local level and development from below 00160 Helsinki, Finland Tel. (+358-9) 6159911 Fax (+358-9) 61599333 focus on the production of essential goods and services, including • Telex 123455 unuei fi staple food production, primary health care, basic education and E-mail [email protected] potable water supplies. Website www.wider.unu.edu

Members of the Fund include the Institute’s staff who contribute one For further information on the Institute’s activities, please contact: percent of their monthly salary. Mr Ara Kazandjian, tel. (+358-9) 61599210, For more information on the Fund and its activities and for submission of e-mail [email protected]. project proposals, contact the President, One Percent for Development Fund at UNU/WIDER. Printed at Oy Nord Print Ab Finland, 1999 ISSN 1230-9544

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