By Timothy Cox | Monday, August 9, 2010

Our daily round-up of what other think-tanks and commentators are saying on the big issues:

The Times on Rwandan election day and how Paul Kagame has not allowed freedom to match his impressive economic record.

Reason on the lessons from Jimmy Carter’s beer deregulation.

By Timothy Cox | Friday, August 6, 2010

Critical:

Raul Castro: a step in the right direction for Cuba.

Passing the buck: Mugabe, not “the West”, is responsible for Zimbabwe’s impoverishment.

Criticised:

Fake drug manufacturers: fake medicine making equipment seized in India.

Aid targets to promote African business growth: right diagnosis, wrong prescription

By Timothy Cox | Wednesday, August 4, 2010

Our daily round-up of what other think-tanks and commentators are saying on the big issues:

Adam Smith Institute: socialism isn’t for play time- the subplot of Toy Story 3.

Aid Watch asks whether aid can win hearts and minds?

By Stuart Bramwell | Wednesday, August 4, 2010

Tyrant, crocodile liberator, robber of the poor. All these labels apply to Robert Mugabe who is, yet again, blaming “the West” for his own failures as a leader.  In a delusional outburst which prompted foreign diplomats to storm out in disgust, he, without hint of irony,  questioned “whoever told them that their will is above that of the people of Zimbabwe?" Sadly, self reflection seems to be in short thrift in Mugabe’s political armoury.

By Timothy Cox | Tuesday, August 3, 2010

Our daily round-up of what other think-tanks and commentators are saying on the big issues:

Donald Boudreaux on income equality, “progressive” itches, and body envy.

Something About Texas: The Economist on why the lone star state fared comparatively well during the recession.

By Alec van Gelder & Timothy Cox | Tuesday, August 3, 2010

The Centre for Global Development has a proposal to help improve domestic trading conditions in Africa. The premise is simple and well grounded: Africa currently has the worst trading conditions in the world and foreign development assistance should be used to incentivise pro-business reforms. But despite appeal of incentivising much needed reform, the suggestion overlooks the biggest problem facing African entrepreneurs and businesses- domestic politicians who benefit from the status quo.

Offering rewards for hitting centrally planned targets is likely to incentivise bureaucrats to jump through hoops without fundamentally changing the local business landscape, which everyone, aside from vested interests, agrees is drastically in need of reform.  Meaningful long-term reform will only happen if and when  African governments become accountable to their populations via their fiscal revenues. Aid, no matter what for, undermines this accountability.

Furthermore, bureaucrats- whether in Washington or Western Sahara-  are notoriously bad at “picking” useful business reforms , even if some of the tools they use have radically improved in recent years--see e.g. the World Bank Doing Business Index.  Local businesses, traders and foreign investors are best suited to  judging which regulatory  and fiscal obstacles currently stand in their way.  Yet without transparent, accountable governance and an independent legal system , improvements made in the areas most incentivised by aid will be offset by backtracking in other areas less well understood by the aid industry. Attempting to centrally plan and monitor this process, however necessary, will unfortunately condemn this new Doing Business Facility to the similar aid failures of the past.

The phenomenal growth of Mauritius and Botswana has shown that the tremendous benefits that pro-business reforms can reap. Crucially, these reforms where driven from the bottom-up and the benefits were principally bestowed upon the reforming economy. African politicians don't need the carrot of aid revenues, they should get on with it themselves. The aid industry mustn’t force their hand by creating incentive-laden targets that won't work anyway.

By Stuart Bramwell | Tuesday, August 3, 2010

Raul Castro’s latest move towards a more business friendly economy is a positive development for Cuban society. This is a continuation of Raul Castro’s pragmatism with regards to the Cuban economy when he inherited the country from his brother in 2006.  Such reforms include the eliminating wage caps, lifting a nine-year ban on privately operated taxis, and opening up unused land to private farmers.

Improvements in Cuba’s international position have also been considerable.  Raul Castro’s comparatively liberal approach to governance has recently secured Cuban foreign trade agreements with both China and Russia and has helped to end EU sanctions.  Furthermore, a 2008 poll taken by Florida International University revealed that over half of Miami’s Cuban-American population are in favour of removing the US embargo and travel restrictions.

Raul Castro is still very much the heir to his brother’s Marxist dynasty. But these recent developments represent a move towards greater Cuban integration into the international market and away from the destructive myths of Cuban autarky (its economy was mostly, until the 1990s, propped up by ideologically motivated Soviet investment) and central planning.  This can only be good for Cuba.  Whether economic reforms will be backed up with much needed political and social reform however remains to be seen.

By Julian Harris | Tuesday, August 3, 2010

Seizures of fake medicines continue to be a regular occurrence in India. Thankfully, due the country’s free and impressive media, we get regular reports on the vast numbers of fake medicines. Our recent paper, A Safe Medicines Chest for the World, lists numerous media reports from 2009 of such cases (see page 21).

Here are some more media reports from just the last couple of weeks in India:

•    “Fake Drugs, Wrappers Seized” (24th July)

•    ”The government's failure to take action against … fake drug manufacturers in spite of many people losing their life to their activities resulted in a public interest litigation being filed in … Bombay High Court on Wednesday.” (29th July)

•    “1 more held in connection with spurious drug scam” (25th July)

This is an exclusive photograph from the seizures reported in the first story. Hopefully it provides a wake-up call for anybody fooled by the government’s ongoing denial of the problem.

By Timothy Cox | Monday, August 2, 2010

Our daily round-up of what other think-tanks and commentators are saying on the big issues:

Chris Blattman: Is philanthropy killing business in Africa?

The Adam Smith Institute asks whether the BBC is  a global player or a subsidy junkie.

By Timothy Cox | Friday, July 30, 2010

Critical:

Diamonds are not Zimbabwe’s best friend.

Intellectual property rights for development.

Criticised:

DfID: for pushing a wasteful and discredited aid target.

By Alec van Gelder | Friday, July 30, 2010

The debate about intellectual property rights and development has been raging for years, especially after the World Trade Organisation’s Trade-Related Aspects of Intellectual Property Rights Agreements was enacted in 1994.  International Policy Network has been active participant in this debate as it touches many of the issues that we work on related to development.

Here is quite a comprehensive literature review (opens pdf) about the impact that stronger intellectual property rights have had on developing countries put together by the RAND Corporation at the behest of the UK Intellectual Property Office.  It’s very much a kind of “on the one hand, on the other hand” study, but it should make for quite useful reading for anyone interested in learning more about the debate.  There is much to pore over. James Delong over at Digital Society has written a short but good review.

Unfortunately some of the myths promoted by anti-IP activists are given credibility in this otherwise rather good survey.  One of those is the so-called 10/90 Gap, which was debunked by IPN in this 2004 report. Because of intellectual property rights, activists argue that pharmaceutical companies invest 90% of their R&D budgets on diseases that only affect 10% of global population.  A great story if you’re trying to stick to a “capitalism harms the poor” narrative, but unfortunately for the script-writers this just isn’t true.

It is also rather unfortunate that the RAND researchers ignored “Nashville in Africa”—academic version here and IPN white-paper version here- which discusses how intellectual property rights must not be viewed only as a “cost” for people in poor countries.  In the right circumstances, entrepreneurs in poor countries can already be competitive in industries that rely on the protection of intellectual property rights, but only if their property is protected at home.  Many African cultures are widely recognised for their cultural talent and skill, yet most African music is produced and recorded in Paris and London.  This only contributes to stagnation at home and “brain-drain”.  Why?  The lack of effective intellectual property rights protection back home is one of the main reasons.

 

By Timothy Cox | Thursday, July 29, 2010

Our daily round-up of what other think-tanks and commentators are saying on the big issues:

Shikha Dalmia on the death of the global warming movement.

The Economist on why UK think-tanks are booming: because the new government is more interested in ideas than spin.