English

Most wars today are civil wars, which divide countries along economic, ethnic or political lines. In many cases, these cleavages happen within communities, pitting one neighbor against another. The prevalence of civil wars has therefore spurred efforts to re-build social cohesion and promote social capital as a part of post-conflict recovery.

Truth and reconciliation processes are a common approach used across the world to promote this type of societal healing. These processes bring war victims face-to-face with perpetrators in forums where victims describe war atrocities, and perpetrators confess to war crimes without facing punishment. Proponents of reconciliation processes claim that they are highly effective – not only in rebuilding social ties among individuals and promoting societal healing, but also in providing psychological relief and aiding individual healing. Yet, there is little rigorous evidence of whether, and how, reconciliation processes help communities heal from conflict.

To shed light on this topic, researchers from New York University, Georgetown University and the World Bank partnered with Innovations for Poverty Action (IPA) to evaluate the impact of a community-level reconciliation program in Sierra Leone.

The results suggest that talking about war atrocities can prove psychologically traumatic by invoking war memories and re-opening old war wounds. The researchers conclude that reconciliation programs should to be re-designed in ways that minimize their psychological costs, while retaining their societal benefit.

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Brief
Date:
May 05, 2016
English

Debates between candidates for public once have a rich historical tradition and remain an integral part of contemporary campaign strategy. There is, however, no definitive evidence of whether debates affect actual voting behavior. Limited media penetration implies that the effects of publicizing debates could be more pronounced, persistent and directly linked to electoral outcomes in the developing world. We experimentally manipulate citizen exposure to debates between Parliamentary candidates in Sierra Leone to measure their impacts on, and the interconnections between, voter behavior, campaign spending, and the performance of elected politicians. We find evidence of strong positive impacts on citizen political knowledge, policy alignment and votes cast on Election Day. We then document an endogenous response by participating candidates, who increased their campaign expenditure in communities where videotapes of the debates were screened in large public gatherings. A complementary series of individual treatment arms unpacks the different types of information delivered by the debates, and finds evidence that voters respond to both candidate charisma and "hard facts" about policy stance and professional qualifications. Lastly, we find longer term accountability effects on elected MPs, where participation in debates led to higher levels of constituency engagement and development expenditure during their first year in once.

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Working Paper
Date:
June 19, 2015
English

Interlinked transactions in which output prices are determined jointly with the terms of a credit contract are an important feature of many business relationships, particularly in developing economies. We present results from a randomized experiment designed to study how value is passed along the agricultural supply chain in the presence of such interlinkages. In response to an increase in a trader’s wholesale price, we find limited pass-through of the price to farmers. However we also find a large increase in the likelihood that traders provide credit to farmers, suggesting that the value of the wholesale price increase was passed to farmers along a different margin. We develop a model of interlinked transactions that shows how price and credit passthrough are determined, and verify its predictions empirically. Our work suggests that the presence of interlinkages is a candidate explanation for low rates of price pass-through that have been observed, but one with substantially different implications for welfare than others.

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Working Paper
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June 17, 2015
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A body of literature suggests that relationships affect contractual and market outcomes, but how does market structure affect the economics of relationships? This paper provides microeconometric evidence that upstream market structure affects the value of downstream relationships between retailers and buyers. In our setting, a monopoly ice manufacturer sells through independent retailers to fishermen buyers in Sierra Leone. We demonstrate that a shock that increases upstream competition among manufacturers improves the contractual terms offered by retailers to buyers. Under the monopolistic manufacturer, we document that late deliveries are common due to outside demand shocks. To help mitigate this uncertainty, retailers prioritize loyal customers when faced with shortages, and buyers respond by rarely switching retailers. When manufacturers compete, prices fall, quantities increase and services improve with fewer late deliveries. Entry upstream also disrupts collusion among retailers by increasing the
value of competing for buyer relationships. Competing retailers expand trade credit provision as a new basis for loyalty, and stable buyer relationships reemerge after a period of intense switching. The findings suggest that market structure shapes informal contractual institutions, and that competition can increase the value of relationships
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Working Paper
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January 24, 2015
English

Despite their importance, there is limited evidence on how institutions can be strengthened. Evaluating the effects of specific reforms is complicated by the lack of exogenous variation in institutions, the difficulty of measuring institutional performance, and the temptation to "cherry pick" estimates from among the large number of indicators required to capture this multifaceted subject. We evaluate one attempt to make local institutions more democratic and egalitarian by imposing participation requirements for marginalized groups (including women) and test for learning-by-doing effects. We exploit the random assignment of a governance program in Sierra Leone, develop innovative real-world outcome measures, and use a preanalysis plan (PAP) to bind our hands against data mining. The intervention studied is a "community-driven development" program, which has become a popular strategy for foreign aid donors. We find positive short-run effects on local public goods and economic outcomes, but no evidence for sustained impacts on collective action, decision making, or the involvement of marginalized groups, suggesting that the intervention did not durably reshape local institutions. We discuss the practical trade-offs faced in implementing a PAP and show how in its absence we could have generated two divergent, equally erroneous interpretations of program impacts on institutions.

Published paper version available here.

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Published Paper
Date:
April 01, 2012
English

The World Bank and other donors dedicate sizeable portions of their portfolios to community driven development (CDD) projects, yet until recently there has been little rigorous evidence regarding the efficacy of this approach. By emphasizing local participation in and control over project implementation, CDD has come to be seen as an efficient and accountable mechanism to deliver local public goods. But CDD aims to do much more than this. Through intensive, long term facilitation, CDD aims to strengthen local institutions, make them more democratic and inclusive of marginalized groups, and enhance the capacity of communities to engage in collective action. This evaluation tests the extent to which CDD achieved these goals in Sierra Leone.

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Report
Date:
July 01, 2011

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