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The role of the state in promoting development is well established in the institutional economics literature. Yet, in recent decades the attention has been turned to the opposite side of the spectrum. Facing high levels of poverty and showing a slower progress in achieving development outcomes, fragile states raised concerns among the development community, which felt urged to assist them. However, the quantitative empirical literature examining the link between state fragility and development is still relatively scanty. This paper sheds light on this issue by proposing an approach that comprises indicators for state ineffectiveness and political violence as two dimensions of state fragility, and by using data for the period 1993-2012 in order to understand their impact on growth. The results from standard econometric methods suggest that there is a significant negative effect of state ineffectiveness on economic growth, whereas they fail to find any significant impact of political violence.

The role of the state in promoting development is well established in the institutional economics literature. Yet, in recent decades the attention has been turned to the opposite side of the spectrum. Facing high levels of poverty and showing a slower progress in achieving development outcomes, fragile states raised concerns among the development community, which felt urged to assist them. However, the quantitative empirical literature examining the link between state fragility and development is still relatively scanty. This paper sheds light on this issue by proposing an approach that comprises indicators for state ineffectiveness and political violence as two dimensions of state fragility, and by using data for the period 1993–2012 in order to understand their impact on growth. The results from standard econometric methods suggest that there is a significant negative effect of state ineffectiveness on economic growth, whereas they fail to find any significant impact of political violence.

Inequality is a major international development challenge. This is so from an ethical perspective and because greater inequality is perceived to be detrimental to key socioeconomic and political outcomes. Still, informed debate requires clear evidence. This article contributes by taking stock and providing an up-to-date overview of the current knowledge on the impact of income inequality, specifically on three important outcomes: (1) economic growth; (2) human development, with a focus on health and education as two of its dimensions; and (3) governance, with emphasis on democracy. With particular attention to work in economics, which is especially developed on these topics, this article reveals that the existing evidence is somewhat mixed and argues for further in-depth empirical work across disciplines. It also points to explanations for the lack of consensus embedded in data quality and availability, measurement issues, and shortcomings of the different methods employed. Finally, we suggest promising future research avenues relying on experimental work for microlevel analysis and reiterate the need for more region- and country-specific studies and improvements in the availability and reliability of data.

Inequality is a major international development challenge. This is so from an ethical perspective and because greater inequality is perceived to be detrimental to key socioeconomic and political outcomes. Still, informed debate requires clear evidence. This article contributes by taking stock and providing an up-to-date overview of the current knowledge on the impact of income inequality, specifically on three important outcomes: (1) economic growth; (2) human development, with a focus on health and education as two of its dimensions; and (3) governance, with emphasis on democracy. With particular attention to work in economics, which is especially developed on these topics, this article reveals that the existing evidence is somewhat mixed and argues for further in-depth empirical work across disciplines. It also points to explanations for the lack of consensus embedded in data quality and availability, measurement issues, and shortcomings of the different methods employed. Finally, we suggest promising future research avenues relying on experimental work for microlevel analysis and reiterate the need for more region- and country-specific studies and improvements in the availability and reliability of data.

Countering recent rises in many countries of inequality in income and wealth is widely recognized as a major development challenge. This is so from an ethical perspective and because greater inequality is perceived to be detrimental to key development aims. Still, an informed debate on the effects of inequality requires clear evidence. This review contributes to the literature by taking stock and providing an overview of current knowledge of the impact of income inequality on three important outcomes: economic growth, health and education as two dimensions of human development, and governance, with a focus on democracy. Drawing on the insights from different disciplines and considering recent work, it reveals that existing evidence provides somewhat mixed results and argues for a need for further in-depth empirical work. It also points to explanations for the lack of consensus embedded in data quality and availability, measurement issues, and the shortcomings of the different methods employed. Finally, we point to promising future research avenues relying on experimental work for micro level analysis, more region- and country-specific studies, and reiterate the need for improvements in the availability and reliability of data.

While Myanmar achieved distinct progress in economic growth and poverty reduction over the past decade, extreme natural events; economic, political, and social crises; and the ongoing COVID- 19 shock pose serious challenges. This study complements previous analyses of poverty and vulnerability by providing a dynamic perspective for the period 2015– 2017. Given the lack of longitudinal household data, the analysis relies on the synthetic panels approach to further our understanding of transitions between different states— poverty, vulnerability, non- poverty— and the characteristics of the households associated with these transitions. Among the main results, we find that there was a relatively high probability for people, who were poor in 2015 to exit poverty in 2017,and that the probability of remaining in a vulnerable situation was non- negligible. Moreover, the results point to important differences in the probability of transitioning between different states depending on household and location characteristics. While the COVID- 19 shock has likely increased the proportion of households in the vulnerable and poor groups, these results highlight the need to focus on households with specific characteristics that make them more at risk of remaining or falling into poverty than the rest of the population in a context of diminishing poverty rates and localized vulnerability pockets.

Countering recent rises in many countries of inequality in income and wealth is widely recognized as a major development challenge. This is so from an ethical perspective and because greater inequality is perceived to be detrimental to key development aims. Still, an informed debate on the effects of inequality requires clear evidence. This review contributes to the literature by taking stock and providing an overview of current knowledge of the impact of income inequality on three important outcomes: economic growth, health and education as two dimensions of human development, and governance, with a focus on democracy. Drawing on the insights from different disciplines and considering recent work, it reveals that existing evidence provides somewhat mixed results and argues for a need for further in-depth empirical work. It also points to explanations for the lack of consensus embedded in data quality and availability, measurement issues, and the shortcomings of the different methods employed. Finally, we point to promising future research avenues relying on experimental work for micro level analysis, more region- and country-specific studies, and reiterate the need for improvements in the availability and reliability of data.

At independence in 1975, the Frelimo government took over public administration from the colonial system and started to transform it. The public financial management (PFM) system was adapted to the central planning and management of the economy in line with nationalist and Marxist-Leninist thinking. Collapse followed in the mid-1980s, amidst the Cold War and the liberalization of the economy. The PFM system was gradually and systematically reformed towards more transparent and efficient mechanisms, and successful reforms did coincide with high rates of economic growth for more than 20 years, after 1993. The reform process was supported by sizeable foreign aid to the extent that Mozambique became highly aid dependent. As the nationalist agenda became more forceful from around 2005-10, when the existence of large natural gas reserves in the Rovuma Basin was confirmed, the extraction of natural resources became the main government focus as a source of public revenue, and severe cracks in the PFM system started to emerge. The 'hidden debt' scandal in 2013-14, the renewed conflict between Frelimo and Renamo from 2013, and the insurgency war in Cabo Delgado from 2017 put the PFM system under pressure and performance suffered accordingly with significant economic and social costs. The paper brings out how difficult it is to make institutional reforms work, within a structure of political and economic power that may not benefit from them, even in the context of a high degree of aid dependence.

This paper explores agricultural performance of Mozambique, its institutional weaknesses, and the underlying factors that underpin an unsatisfactory performance during many decades. We point to the role of systemic political instability and violence combined with challenges to state legitimacy. Regional divides and lack of market integration continue to influence in a critical and all-encompassing manner. Finally, the way in which the interests of the elite and the influence of donors have affected progress in the agriculture sector suggests the need for concerted reorientation in existing strategies, policies, and priorities. This is reinforced by future challenges, including the extractive industry; population growth and internal migration; national and international markets; climate change; and COVID-19. We highlight the need to place the future of agriculture in Mozambique within a long-term perspective, focusing on the adoption and stabilization of an institutional framework aimed at increasing agricultural productivity and preserving the environment.