Solutions for the World's Biggest Problems: Costs and Benefits

Cover......Page 1
Half-title......Page 3
Title......Page 5
Copyright......Page 6
Contents......Page 7
Figures......Page 10
Tables......Page 12
Contributors......Page 15
Acknowledgements......Page 19
The simple idea......Page 21
Why should we prioritize?......Page 22
Where should we prioritize?......Page 24
What should we prioritize?......Page 25
How do we prioritize?......Page 26
Problems of prioritization......Page 27
Your part......Page 30
Economic challenges......Page 31
Environmental challenges......Page 34
Governance challenges......Page 38
Health and Population challenges......Page 42
Conclusions......Page 48
Part I Economy......Page 51
1. Introduction......Page 53
2. The cost of financial instability......Page 54
4. What causes financial instability?......Page 55
6. Would the financial engineering scheme work?......Page 56
7. Institutions matter......Page 58
8. A counter-proposal......Page 59
References......Page 61
1. Describing the problem: weak IPR......Page 63
Why IPR?......Page 64
Solution 1: Increase technical and financial assistance for improving IPR regulations and for increasing enforcement against…......Page 66
Benefit 1. Reducing risks to consumer health......Page 68
Benefit 2. Improving the environment for local innovation......Page 69
Benefit 3. Reducing a deterrent to technology transfer......Page 70
Solution 2: Provide technical and financial assistance to encourage the use of IPR by firms in developing countries......Page 71
References......Page 73
1.1 The demand side......Page 75
1.2 The supply side......Page 76
1.2.2 International perspective......Page 77
2.1 The review......Page 78
2.2 The solution......Page 80
3. Conclusions and caveats......Page 88
References......Page 90
Arguments for removing trade barriers......Page 93
Opportunities for reducing subsidies and trade barriers......Page 94
Economic benefits from reducing subsidies and trade barriers......Page 95
Implications for the Doha Round......Page 97
Comparison with just removing intra-American trade barriers......Page 98
Economic costs of trade reform......Page 99
Benefit/cost calculus......Page 100
References......Page 101
Part II Environment......Page 103
The problem......Page 105
Indoor air pollution.......Page 107
Indoor air pollution.......Page 108
Outdoor air pollution.......Page 114
Implications and outlook......Page 118
References......Page 119
Scoping the problem......Page 123
Scoping some solutions......Page 124
Evaluating solutions – imposing a $50 per tonne carbon tax (or its equivalent)......Page 129
Results......Page 137
Caveats, context and design......Page 139
References......Page 142
Tropical deforestation......Page 145
Economic benefits of tropical forests......Page 148
Regulatory functions of tropical forests......Page 149
Habitat, biodiversity and non-use values......Page 150
Commercial logging......Page 152
Income and deforestation......Page 153
Ultimate causes......Page 154
Is tropical deforestation excessive?......Page 156
International forest conservation measures......Page 157
Conclusions......Page 161
References......Page 162
1. Definition......Page 166
2. Extent and trends of land degradation......Page 167
3.1 Price and trade policy reforms......Page 170
3.2 Capital market failures......Page 172
3.3 Property rights, land tenure, market failures, and externalities......Page 173
3.4 Technology development and productivity growth......Page 175
4. Summing up benefits and costs......Page 176
5. Conclusion and broader discussion......Page 177
References......Page 179
What is biodiversity?......Page 182
What is being lost?......Page 183
Why place economic values on biodiversity?......Page 184
How to place economic values on biodiversity?......Page 185
Examples of economic valuation of biodiversity and its components......Page 186
The solution: a generalized guide for policies to curtail biodiversity loss......Page 189
Option 1: Eliminate perverse incentives......Page 190
Option 2: Privatize the biodiversity that is feasible and involve local communities......Page 191
Option 4: Ensure the provision of biodiversity-related public goods......Page 192
Conclusions and caveats......Page 193
References......Page 195
The challenge: global disaster losses are increasing......Page 198
1. Properly frame the disaster challenge as one of reducing vulnerability, and not modulating extreme events via energy policies......Page 202
2. There is a pressing need for improved information on the costs and benefits of vulnerability reduction policies and…......Page 208
3. Even in the absence of well-developed studies of the costs and benefits of disaster mitigation, there are many…......Page 210
4. There are large ancillary benefits associated with more general progress with respect to human development and poverty…......Page 211
Conclusions......Page 213
Part III Governance......Page 217
The problem......Page 219
Non-conventional weapons proliferation......Page 221
Major conventional weapons systems......Page 222
Small arms and light weapons......Page 223
Costs......Page 224
Benefits......Page 226
Solution 1: WMD non-proliferation programmes and nuclear disarmament......Page 227
Solution 2: Conflict prevention measures......Page 229
Solution 3: Counter arms proliferation measures......Page 230
Solution 4: Controlling the trade in conventional arms: arms trade treaty......Page 231
Solution 5: Taxing arms transfers......Page 232
Conclusions......Page 233
Appendix 1: Costs of conflict......Page 235
References......Page 236
Introduction......Page 240
Civil war......Page 241
Coups......Page 242
Military spending......Page 243
Increasing aid......Page 244
Expanding the role of peacekeeping forces......Page 245
Guaranteeing security from ‘over the horizon’......Page 246
References......Page 247
Varieties of corruption......Page 249
Consequences and causes of corruption......Page 252
Reform proposals......Page 253
Procurement, regulation, and revenue collection......Page 254
Multinational investments and the control of corruption......Page 255
Controlling money laundering......Page 256
References......Page 259
1. Benefits......Page 261
(1) If you build it, they may not come......Page 265
(3) Are better managed schools better or are better schools better managed?......Page 266
(4) Returns on increased school supply come at a long lag......Page 267
a: Health and schooling......Page 268
b: Lowering schooling costs......Page 270
c: Conditional cash transfers......Page 273
IV. Benefit–cost summary......Page 274
References......Page 278
15 Terrorism......Page 283
Definition of terrorism and data collection......Page 284
Research on terrorism......Page 285
The costs of terrorism – the case of 9/11......Page 287
The global cost of terrorism......Page 288
New terror threats......Page 289
Suicide terrorism......Page 290
Poverty and terrorism......Page 291
Wealth and the sponsoring of terror......Page 292
Immigration and terrorism......Page 293
The costs of anti-terrorism......Page 295
Limitations of the CBA......Page 296
Conclusions and final remarks......Page 297
Part IV Health and Population......Page 301
An analysis of prohibition versus legalization......Page 303
Increased crime......Page 305
Enriching criminals......Page 306
Aiding terrorism......Page 307
Direct costs of enforcement......Page 308
Calculating the net benefit of legalization versus prohibition......Page 311
References......Page 313
17 Disease Control......Page 315
1.1 Progress......Page 316
Unequal progress......Page 319
Epidemiological transition......Page 320
2. The economic benefits of better health......Page 321
2.1 Health and income......Page 323
2.2 Health and economic welfare......Page 324
3. Cost–benefit methodology......Page 327
3.1 Cost-effectiveness analysis broadly and narrowly construed......Page 328
3.2 Defining and redefining DALYs......Page 330
3.3 The value and cost of a DALY......Page 332
4. Child health......Page 333
4.1 Under-five health problems and intervention priorities......Page 334
4.2 Delivering child health interventions......Page 336
5. HIV/AIDS......Page 337
5.1 Prevention and management......Page 338
5.2 Antiretroviral treatment......Page 339
6. Noncommunicable disease......Page 341
6.1 Cardiovascular disease......Page 342
7. Opportunities for disease control......Page 343
References......Page 358
Problems......Page 365
Cost of labour force decline......Page 370
Solutions?......Page 371
Increase the productivity of labour......Page 372
Higher levels of immigration......Page 373
Labour market reforms......Page 374
Conclusions and caveats......Page 375
References......Page 376
1. Extent of the problem......Page 378
2. Solutions......Page 380
3. Costs and benefits of solutions......Page 384
Overview......Page 388
References......Page 391
The challenge to improve the living conditions of women......Page 396
Reduce the gap between male and female education......Page 397
Benefit–cost ratios for reducing gender gap in education: an illustration......Page 400
Improve access and affordability to childcare facilities to enhance higher rate of female participation in the labour force......Page 403
Benefits......Page 405
Costs......Page 406
Conclusion......Page 407
References:......Page 408
Hunger......Page 410
Micro-nutrient deficiencies......Page 411
Some considerations for estimating the benefits from these solutions......Page 412
Some considerations for estimating the costs of these solutions......Page 417
Reducing the prevalence of LBW......Page 420
Reducing the prevalence of iron, iodine and Vitamin A deficiencies......Page 421
Conclusions and caveats......Page 422
References......Page 423
The problem......Page 425
The solution......Page 426
Intervention costs......Page 428
Intervention benefits......Page 431
Cost–benefit analysis......Page 432
Sensitivity analysis......Page 436
Implications and outlook......Page 441
References......Page 442
Introduction......Page 445
Identifying the redistributions inherent in migration......Page 447
Quantifying the redistributions......Page 449
Cost–benefit analysis......Page 453
Caveats and conclusions......Page 455
References......Page 458
Conclusion: Making Your Own Prioritization......Page 460