FSI researchers consider international development from a variety of angles. They analyze ideas such as how public action and good governance are cornerstones of economic prosperity in Mexico and how investments in high school education will improve China’s economy.
They are looking at novel technological interventions to improve rural livelihoods, like the development implications of solar power-generated crop growing in Northern Benin.
FSI academics also assess which political processes yield better access to public services, particularly in developing countries. With a focus on health care, researchers have studied the political incentives to embrace UNICEF’s child survival efforts and how a well-run anti-alcohol policy in Russia affected mortality rates.
FSI’s work on international development also includes training the next generation of leaders through pre- and post-doctoral fellowships as well as the Draper Hills Summer Fellows Program.
States make war, and wars make states. The second clause of Tilly's dictum assumes that the fiscal effort that states exert to wage war persists over time. This paper investigates the effect of war on long-term fiscal capacity as a function of two types of war financing instruments: taxes and loans. Tax-waged wars are argued to exert lasting effects on state capacity, as new taxes require enhancements of the state apparatus as well as complementary fiscal innovations. Loan-waged wars may not contribute to long-term state capacity, as countries might default once the war is over, thus preempting any persistent fiscal effect. Importantly, the way war is waged might be endogenous. To cope with this possibility, I exploit unanticipated crashes in the nineteenth-century international capital markets, which temporarily banned warring states from borrowing regardless of their (un)observed characteristics. The analysis shows that countries that fought wars while the international credit markets were down have today higher fiscal capacity, measured by income tax ratios as well as the size of the tax administration. Altogether, the paper advances the conditions under which wars exert positive and lasting effects on state building.
Didac Queralt is a junior professor at the Institute of Political Economy and Governance (IPEG) in Barcelona. He received his Ph.D. from the NYU Politics Department in September 2012.
His research lies at the intersection of comparative political economy and international relations, with a focus on the political economy of fiscal capacity building in Europe (East and West) and the Americas. Using formal methods, he investigates tax compliance in scenarios of low fiscal capacity, as well as the replacement of old forms of taxation (e.g. trade taxes) by modern extractive technologies (e.g. income taxation) that result from deliberate investment in the tax administration. He analyzes the theoretical predictions using contemporary data from developing economies in Latin America and Eastern Europe, as well as historical data for European powers in the pre-modern era.
In addition, he investigates the origins of direct taxation in the Western World, both with macro- and micro-data, as well as the electoral politics underlying the expansion of the fiscal state. Currently, he is involved in a quasi-experimental test of the legacy of pre-modern wars on state capacity, and an field experiment on tax progressivity in Colombia,
This seminar is part of the Comparative Politics Workshop in the Department of Political Science and is co-sponsored by The Europe Center.
Encina Hall West, Room 400 (Graham Stuart Lounge)
Didac Queralt
Junior Professor
Speaker
Institute of Political Economy and Governance (IPEG), Barcelona
Sheng Menglu describes REAP's colloboration with Chinese one-child policy officials on an early childhood education program targeting rural toddlers. To read the original article, click here.
Last June, a lively and well-equipped preschool opened in one of the poorest villages in Shaanxi province, as part of a pilot project seeking ways to improve childhood development called Nurturing the Future. The pilot is being run by the national health commission and the Rural Education Action Plan (REAP), a joint research program conducted by Shaanxi Normal University in the northwestern city of Xi'an, the Chinese Academy of Sciences and Stanford University in the U.S. state of California.
The experiment sees idle primary school classrooms and government offices in certain rural areas of Shaanxi Province converted into early childhood development centers like the one Mengjie and her grandmother visit.
The project's organizers also conducted the first study to look at how parenting practices influence the cognitive development of children in China's villages. That research, conducted from 2013 to 2015, found that the best time to have the most impact on rural children's educational performance and growth is during the first three years of life. Yue Ai, a senior researcher from Shaanxi Normal University, said data from the REAP studies of 100 rural villages across the country have consistently pointed to the same conclusion.
Many rural children start to fall behind in terms of cognitive development from an early age, said Luo Renfu, who develops the curriculum for preschools run by the project. In fact, two out of five youngsters aged 18 to 42 months showed significant delays in either cognitive or motor development, or both, the study found.
These early problems can, of course, impact children later in their education, Luo said. "One-third of rural children drop out of high school" because they can't catch up after their bad start.
A lack of parental interaction is strongly linked to developmental delays in rural babies, the study concludes. Another REAP study of over 1,400 toddlers aged 18 to 30 months found that only 5 percent of the parents tell stories to their infants and about 37 percent sang to them. None of the parents or grandparents interviewed reported talking to their babies regularly, often saying, "Why would I talk to the baby? It can't understand me yet!"
Researchers found that when parents spoke directly to their toddlers, the children experienced faster development in language and other cognitive skills. All learning after the age of three depends on this early training, Luo said.
The problem is exacerbated by the fact that millions of children in rural villages are left in the care of grandparents, who are semi-literate or too weak to care for children left by parents who move to cities to work, researchers said. One in five rural babies less than 12 months old is cared for by their grandparents, REAP researchers found. The number increases three-fold for toddlers aged 24 to 30 months.
Multiple international studies have shown that intervening in children's development during the first 1,000 days of their birth will produce the most impact at the lowest cost. Only two out of five villages in the study had a preschool for children above the age of three, and none of them had a day care for younger infants.
China spends 0.2 percent of its GDP on early childhood education and care facilities each year. This figure trails that of many developing countries, such as Argentina or Brazil, which spend 0.5 percent. Although China's education budget accounted for 4.3 percent of its national GDP in 2013, there is no specific allocation for early childhood development.
Cai Jianhua, an official at the National Health and Family Planning Commission, said setting up a preschool in every village or rural community would cost about 60 billion yuan, or 0.1 percent of GDP. Cai also suggests training some of the current family planning officials to become early education teachers.
"Even if the country uses just a fraction of the energy it spends on family planning policies to improve the quality of rural education, it will have a brighter future," said Shi Yaojiang, a professor on education at Shaanxi Normal University.
Need for Skills
The country's changing economy requires people with more advanced skills, who can learn quickly, Zhang Linxiu, a researcher at the Chinese Academy of Sciences, said.
"The job market in the future will be quite different," she said. "People who have only farming skills will have trouble competing in cities."
Industries need highly skilled workers if the country is to transition from basic manufacturing to high-end products. In the 1960s and 1970s, "the world's factories" were South Korea, Taiwan, Hong Kong, Singapore and Mexico, said Scott Rozelle, co-director of REAP.
"But by the 1980s and 1990s, as wages increased, the unskilled garment workforce gradually transformed to highly skilled workers in the technology and service sectors," he said. "In Japan, South Korea, Taiwan and Singapore, almost all workers have at least a high school diploma.
"This high-quality workforce guarantees these countries their industrial upgrade capability. In contrast, in Mexico, only 40 percent of the rural population has completed senior high school and a majority of its labor force had droped out from junior high … So the economy has lost its momentum."
A survey by Rozelle of automobile service shops in Shaanxi Province showed that 90 percent of the vocational school graduates didn't have access to the Internet. "So we have to ask what this low-skilled labor force will do in 20 years," he said.
Patti Waldmeir quotes REAP's director, Scott Rozelle, on how China's rural children are effected when parents migrate to cities for work. To read the original article, click here.
In China, left behind kids battle a social stigma, even if their material conditions are sometimes better than that of children living in homes without migrant income. Conventional wisdon, even among grandparents, is that the grandparents of leff-behind children are not capable of raising children who succeed in school or in life.
Experts are divided on how much children being raised by grandparents are hurt, in terms of educational or even physical development — or even if there is a negative impact at all.
There are trade-offs involved in having a migrant in the family, says Scott Rozelle, professor of economics at Stanford University and co-founder of the Rural Education Action Program, which has been collecting data on children in China’s remote rural areas for a decade. He conducted one of the largest studies so far of the state of China’s rural children, both with and without parents.
The study’s findings go against the conventional wisdom. “Left behind children are not the most vulnerable in rural China,” the study’s authors write, adding they “perform equally or even better than children living with parents on the health, nutrition and education indicators we examine”.
“Anemia prevalence, height for age and weight for age . . . mathematics, Chinese and English scores, junior high school and vocational high school dropout rates . . . are the same as those among children living with their parents.” In fact, children living with parents are in slightly worse health. Mr Rozelle is not sure why. “Maybe access to more resources helps, at least in part, to offset the negative effects of the absence of parental care,” he suggests. Or maybe those who choose to migrate are more intelligent than the average villager — “and so granny is smarter too”.
Mr Rozelle’s point is not that things are just fine for left behind kids — but that both kids living with and without parents in rural areas are vulnerable, and that increasing government resources targeted to helping left behind kids, such as surrogate parenting programmes, may be misspent.
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Only now is the country examining the social price of children left behind by the mass movement of rural Chinese. | Financial Times/ Patti Waldmeir
A conference that honored the life and scholarly contributions of Stanford economist Masahiko Aoki was held at Stanford. Dozens of friends, family and community members paid tribute to Aoki, the Henri and Tomoye Takahashi Professor of Japanese Studies and Professor of Economics, emeritus, who died in July at the age of 77.
Eleven renowned economists and social scientists gave talks on Aoki’s extensive fields of research in economic theory, institutional analysis, corporate governance, and the Japanese and Chinese economies at the Dec. 4 conference, which was followed by a memorial ceremony the next day.
“When we contacted people to speak at this conference, few people turned us down,” said Stanford professor Takeo Hoshi. “The reason for this is Masa. It shows how much Masa was respected and how much his work is valued.”
The events were hosted by the Japan Program at the Walter H. Shorenstein Asia-Pacific Research Center, the Freeman Spogli Institute for International Studies (FSI), Graduate School of Business, Department of Economics and the Stanford Institute for Economic Policy Research (SIEPR).
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Aoki came to Stanford in 1967 as an assistant professor, held faculty appointments at Kyoto University and Harvard, and returned to Stanford in 1984. He retired to emeritus status at Stanford in 2005.
Throughout the conference, Aoki was described as an astute professor and colleague, valuable mentor and loyal friend by the many speakers and participants who shared works, stories and multimedia featuring their interactions with Aoki.
Aoki pioneered the field of comparative institutional analysis (CIA) with a team of scholars at Stanford: Avner Greif, John Litwack, Paul Milgrom and Yingyi Qian, among others. CIA analyzes and compares different institutions that evolve to regulate different societies.
Masahiko Aoki (far left) is pictured with colleagues on the Stanford campus in the late 1960s.
“Masa had a good background in looking at the economy as a whole, financial institutions as a whole – not just how numbers or actors economically interact – but also the people who interact within a given institutional framework,” said Koichi Hamada, a professor emeritus at Yale University.
“Masa had a good background in looking at the economy as a whole, financial institutions as a whole – not just how numbers or actors economically interact…”
-Koichi Hamada, Yale University
Aoki applied a systematic lens to everything he studied, a “take society as a total entity” approach, Hamada said.
Aoki grew up in Japan, and developed a deep interest in Japanese politics at an early age. He was actively involved in student movements in the early 1960s, at the heart of which was a campaign against a controversial U.S.-Japan security treaty. China became another great interest of his as the country began to undergo economic transformation and modernization.
Throughout his career, Aoki traveled to Japan and China often, and sought to better inform policy debates by engaging scholars, government leaders and journalists there.
He believed in sharing lessons learned from his own scholarly analyses on what constitute institutions, particularly the “people” aspects – the employees, their cognitive abilities and levels of participation.
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Top left to right: Yingyi Qian of Tsinghau University talks with Avner Greif of Stanford University and Hugh Patrick of Columbia University. / Koichi Hamada of Yale University delivers his remarks titled "Masahiko Aoki: A Social Scientist." Bottom: Reiko Aoki, the wife of Masahiko Aoki, listens in to Kenneth Arrow, a professor emeritus at Stanford University. Credit: Rod Searcey
Aoki was not only a scholar of institutions but also a builder of them.
“Amid a time of diplomatic tensions between China and Japan…Masa was able to bring Japanese, Chinese and American economists together to study and do research,” said Yingyi Qian, dean and professor at the school of economics and management at Tsinghua.
At Stanford, Aoki played a leading role in the creation of the Stanford Japan Center and a multi-day conference that convened annually in Kyoto on issues of mutual concern between Asia-Pacific countries and the United States.
“Masa Aoki’s legacy will serve as an integral guidepost for many years to come. May his soul rest in peace.”
-Kotaro Suzumura, Hitotsubashi University
Earlier this year, Aoki was hospitalized for lung disease. Even at that stage, he worked tirelessly to revise a paper that examines the institutional development of China and Japan in the late 19th to early 20th centuries.
Aoki was also fondly remembered for his mentorship of students at Stanford and other universities he taught at.
“He was an original and unique professor – quite different from others that I’ve met in many respects. He was generous with his time, not hierarchical,” said Miguel Angel Garcia Cestona, who studied for a doctorate at Stanford and now teaches at the Universitat Autonoma de Barcelona.
Garcia Cestona, among other former students, spoke of Aoki as a friend and shared memories of their former professor hosting them at his home.
Stanford professor Takeo Hoshi opens a day-long conference at Stanford celebrating the life and scholarly work of Masahiko Aoki, Dec. 4, 2015. | Rod Searcey
Growing evidence demonstrates that climatic conditions can have a profound impact on the functioning of modern human societies, but effects on economic activity appear inconsistent. Fundamental productive elements of modern economies, such as workers and crops, exhibit highly non-linear responses to local temperature even in wealthy countries. In contrast, aggregate macroeconomic productivity of entire wealthy countries is reported not to respond to temperature= while poor countries respond only linearly. Resolving this conflict between micro and macro observations is critical to understanding the role of wealth in coupled human–natural systems and to anticipating the global impact of climate change. Here we unify these seemingly contradictory results by accounting for non-linearity at the macro scale. We show that overall economic productivity is non-linear in temperature for all countries, with productivity peaking at an annual average temperature of 13 °C and declining strongly at higher temperatures. The relationship is globally generalizable, unchanged since 1960, and apparent for agricultural and non-agricultural activity in both rich and poor countries. These results provide the first evidence that economic activity in all regions is coupled to the global climate and establish a new empirical foundation for modelling economic loss in response to climate change, with important implications. If future adaptation mimics past adaptation, unmitigated warming is expected to reshape the global economy by reducing average global incomes roughly 23% by 2100 and widening global income inequality, relative to scenarios without climate change. In contrast to prior estimates, expected global losses are approximately linear in global mean temperature, with median losses many times larger than leading models indicate.
Large-scale monitoring of crop growth and yield has important value for forecasting food production and prices and ensuring regional food security. A newly emerging satellite retrieval, solar-induced fluorescence (SIF) of chlorophyll, provides for the first time a direct measurement related to plant photosynthetic activity (i.e. electron transport rate). Here, we provide a framework to link SIF retrievals and crop yield, accounting for stoichiometry, photosynthetic pathways, and respiration losses. We apply this framework to estimate United States crop productivity for 2007–2012, where we use the spaceborne SIF retrievals from the Global Ozone Monitoring Experiment-2 satellite, benchmarked with county-level crop yield statistics, and compare it with various traditional crop monitoring approaches. We find that a SIF-based approach accounting for photosynthetic pathways (i.e. C3 and C4 crops) provides the best measure of crop productivity among these approaches, despite the fact that SIF sensors are not yet optimized for terrestrial applications. We further show that SIF provides the ability to infer the impacts of environmental stresses on autotrophic respiration and carbon-use-efficiency, with a substantial sensitivity of both to high temperatures. These results indicate new opportunities for improved mechanistic understanding of crop yield responses to climate variability and change.