Trouble Ahead: The Cocaleros of Peru

Este artículo es una versión reducida del original publicado en la Revista Current History, Vol. 105, No. 688, febrero, 2006, pp. 79-86. La revista Desafíos ha decidido publicar apartes por considerarlo de interés para la discusión sobre los efectos y resultados de la política de erradicación de cultivos ilícitos en Colombia. – This article is an abbreviated reproduction of the article published in the Current History Journal, Vol. 105, Nr. 688, Februrary, 2006, pp. 79-86. Desafíos Journal decided to publish parts of it due to the consideration of its interest for the discussion on consequences and results of the eradication policy of ilegal crops in Colombia.An anti-narcotics policy that ignores the social consequences of drug crops eradication only manages to further radicalize and isolate the population in areas in which lawlessness and potential terrorist activity thrive. It also strengthens the bond between disaffected social groups and guerrilla organizations in these areas. Washington cannot continue to be blind to the fact that the three current US policies on counterterrorism, anti-narcotics, and democratization in Peru and elsewhere in Latin America, are not working in harmony. Paradoxically, the eradication of drug crops —the core of Peru’s US-sponsored anti-narcotics policy— enlarges pockets of poverty and fuels anger against the government. It also perpetuates the proverbial quagmire of alienation in which terrorism breeds. Instead of strengthening the State, drug eradication, particularly in the way it is currently carried out in the Andean countries, increases the risk of State failure.-----El efecto de una política antinarcóticos que ignora las consecuencias de la erradicación de cultivos de coca es radicalizar y aislar aún más la población en aquellas zonas donde prosperan la anarquía y el terrorismo. Además, fortalece los lazos entre los descontentos sociales y los grupos guerrilleros en esas mismas áreas. Washington no puede seguir ciega al hecho de que las tres políticas actuales de Estados Unidos —antiterrorismo, antinarcóticos y democratización en el Perú y otras regiones en América Latina— no están funcionando armónicamente. Resulta paradójico que la erradicación de cultivos de coca -eje de la política antinarcóticos peruana respaldada por Estados Unidos- ensanche las bolsas de miseria y aliente la ira contra el gobierno, además de perpetuar los proverbiales miasmas de marginación en las que se engendra el terrorismo. En vez de fortalecer al Estado, la erradicación de cultivos de coca, tal y como se está llevando a cabo en los países andinos, incrementa las posibilidades de su fracaso.

On the design of education conditional cash transfer programs and non education outcomes: the case of teenage pregnancy

We investigate the effect of education Conditional Cash Transfer programs (CCTs) on teenage pregnancy. Our main concern is with how the size and sign of the effect may depend on the design of the program. Using a simple model we show that an education CCT that conditions renewal on school performance reduces teenage pregnancy; the program can increase teenage pregnancy if it does not condition on school performance. Then, using an original data base, we estimate the causal impact on teenage pregnancy of two education CCTs implemented in Bogot´a (Subsidio Educativo, SE, and Familias en Acci´on, FA); both programs differ particularly on whether school success is a condition for renewal or not. We show that SE has negative average effect on teenage pregnancy while FA has a null average effect. We also find that SE has either null or no effect for adolescents in all age and grade groups while FA has positive, null or negative effects for adolescents in different age and grade groups. Since SE conditions renewal on school success and FA does not, we can argue that the empirical results are consistent with the predictions of our model and that conditioning renewal of the subsidy on school success crucially determines the effect of the subsidy on teenage pregnancy

School management and sexual behavior of teenagers

This paper asks whether school based management may help reducing risky sexual behavior of teenagers. For this purpose we use student level data from Bogot´a to identify students from Concession School (CS), who are enrolled in public education system with a more school management autonomy at school level, and to compare them with those students at the traditional public education system. We use propensity score matching methods to have a comparable sample between pupils at CS and traditional schools. Our results show that on average the behavior of students from CS do not have a sexual behavior that differs from those in traditional public schools except for boys in CS who have a lower probability of being sexual active. However, there are important differences when heterogeneity is considered. For example we find that CS where girls per boys ratio is higher have lower teenage pregnancy rates than public schools with also high girls per boys ratios. We also find that teachers’ human capital, teacher-pupil ratio or whether school offers sexual education are also related to statistically significant differences between CS and traditional public schools.

Unemployment insurance in the presence of an informal sector

We study the effect of UI benefits in a typical developing country where the informal sector is sizeable and persistent. In a partial equilibrium environment, ruling out the macroeconomic consequences of UI benefits, we characterize the stationary equilibrium of an economy where policyholders may be employed in the formal sector, short-run unemployed receiving UI benefits or long-run unemployed without UI benefits. We perform comparative static exercises to understand how UI benefits affect unemployed worker´s effort to secure a formal job, their labor supply in the informal sector and leisure time. Our model reveals that an increase in UI benefits generates two opposing effects for the short-run unemployed. First, since search efforts cannot be monitored it generates moral hazard behaviours that lower effort. Second, it generates an income effect as it reduces the marginal cost of searching for a formal job and increases effort.The overall effect is ambiguous and depends on the relative strength of these two effects. Additionally, we show that an increase in UI benefits increases the efforts of long-run unemployed workers. We provide a simple simulation exercise which suggests that the income effect pointed out is not necessarily of second-order importance in comparison with moral hazard strength. This result softens the widespread opinion, usually based on the microeconomic/partial equilibrium argument that the presence of dual labor markets is an obstacle to providing UI in developing countries.

Violence and growth in colombia : a review of the quantitative literature

This is a critical review of the empirical literature on the relationship between violence and economic growth in Colombia: an interesting case study for social scientists studying violence, conflict, crime and development. We argue that, despite the rapid development of this literature and the increasing use of new techniques, there is still much room for research. After assessing the contribution of the most influential papers on the subject, we suggest directions for future research.