Macroeconomic impact of foreign aid to developing countries

The thesis looks at the macroeconomic impact of foreign aid. It is specially concerned with aid's impact on the public sector of less developed countries < LDCs> . Since the overwhelming majority of aid is directed to the public sector of LDCs, one can only understand the broader macroeconomic impact of aid if one first understands its impact on this sector. To this end, the thesis econometrically estimates " fiscal response" models of aid. These models, in essence, attempt to shed light on public sector fiscal behaviour in the presence of aid inflows, being specially concerned with the way aid is used to finance various categories of expenditures. The underlaying concern is to extent to which aid is " fungible" -that is, whether it finances consumption expenditure and reductions in taxation revenue in LDCs. A number of alternative models are derived from a utility maximisation framework. These alternatives reflect different assumptions regarding the behaviour of LDC public sectors and relate to the endogeniety of aid, whether or not recurrent expenditure is financed from domestic borrowing and the determination of domestic borrowing. The original frameworks of earlier studies are extended in a number of ways, including the use of a public sector utility function which is fully consistent with expected maximising behaviour. Estimates of these models' parameters are obtained using both time-series and cross-section data, dating from the 1960s, for Bangladesh, India, Pakistan and the Philippines. Both structural and reduced-form equations are estimated. Results suggest that foreign aid is indeed fungible, albeit at different levels. Moreover, the overall impact of aid on public sector investment, consumption, domestic borrowing and taxation varies between countries. Generally speaking, aid leads to increases in investment and consumption expenditure, but reduces taxation and domestic borrowing. Comparative analysis does, however, show that these results are highly sensitive to alternative behavioural assumptions and, therefore, model specification.

Social and environmental accounting research : major contributions and future directions for developing countries

A review is provided of major contributions in social and environmental accounting literature focusing on the issues of developing countries. The review of prior research shows that the major contributions have been related to the motivations for social and environmental disclosure. However, other important research areas such as ethical/accountability issues and how to cost externalities which have already been considered within the developing country context. Contemporary social and environmental issues such as climate change and greenhouse gas emissions affecting the global community also appear to be key issues of research to scholars in both developed and developing countries. Finally, some future research directions are identified.

Corporate social responsibility in the extractive industries: experiences from developing countries

This paper introduces a special issue on ‘Corporate Social Responsibility in the Extractive Industries: Experiences from Developing Countries’. Drawing upon case study analysis from Latin America, sub-Saharan Africa and Asia, the papers in this issue broaden understanding of how multinational mining and oil and gas companies have embraced the CSR challenge and responded to criticisms of their performance in developing countries. This paper provides an introduction to the debate on CSR in the extractive industries in developing countries, reviewing the key issues examined on this subject to date.

Introduction to politics of climate change: discourses of policy and practice in developing countries

This Themed Section aims to increase understanding of how the idea of climate change, and the policies and actions that spring from it, travel beyond their origins in natural sciences to meet different political arenas in the developing world. It takes a discursive approach whereby climate change is not just a set of physical processes but also a series of messages, narratives and policy prescriptions. The articles are mostly case study-based and focus on sub-Saharan Africa and Small Island Developing States (SIDS). They are organised around three interlinked themes. The first theme concerns the processes of rapid technicalisation and professionalisation of the climate change ‘industry’, which have sustantially narrowed the boundaries of what can be viewed as a legitimate social response to the problem of global warming. The second theme deals with the ideological effects of the climate change industry, which is ‘depoliticisation’, in this case the deflection of attention away from underlying political conditions of vulnerability and exploitation towards the nature of the physical hazard itself. The third theme concerns the institutional effects of an insufficiently socialised idea of climate change, which is the maintenance of existing relations of power or their reconfiguration in favour of the already powerful. Overall, the articles suggest that greater scrutiny of the discursive and political dimensions of mitigation and adaptation activities is required. In particular, greater attention should be directed towards the policy consequences that governments and donors construct as a result of their framing and rendition of climate change issues.

Responsible entrepreneurship in developing countries : understanding the realities and complexities

Developing countries have recently experienced a burgeoning of small-scale individual entrepreneurs (SIEs) – who range from petty traders to personal service workers like small street vendors, barbers and owners of small shops – as a result of market-based reforms, rapid urbanisation, unemployment, landlessness and poverty. While SIEs form a major part of the informal workforce in developing countries and contribute significantly to economic growth, their potential is being undermined when they engage in irresponsible and deceptive business practices such as overpricing, sale of underweight or substandard products, or attempts to hoard goods, to name a few. Despite the growing interest in corporate social responsibility (CSR) initiatives of small businesses in developing countries, the SIEs have received almost no attention. To address this void in the literature, we explore the reasons for the less than optimal level of social responsibility demonstrated by some SIEs in developing countries. We do so by drawing upon the existing literature to develop a comprehensive framework of social responsibility of SIEs highlighting their unique characteristics and the different contextual factors that they encounter in developing countries. Based on this framework, we then present a set of propositions specifying the influence of these contextual factors such as business environment, cultural traditions, socio-economic conditions, and both international and domestic pressures on the business practices of SIEs. The framework offers an explanation for the lack of responsible entrepreneurship of SIEs and has important implications for promoting sustainable business practices in developing countries where businesses are striving hard to survive and compete.

Social and environmental accounting research : major contributions and future directions for developing countries

A review is provided of major contributions in social and environmental accounting literature focussing on the issues of developing countries. The review of prior research shows that the major contributions have been related to the motivations for social and environmental disclosure. However, other important research areas such ethical/accountability issues and how to cost externalities which have already been considered within the context of developed countries are yet to emerge within the
developing country context. Contemporary social and environmental issues such as climate change and greenhouse gas emissions affecting the global community also appear to be key issues of research to scholars in both developed and developing countries. Finally, some future research directions are identified.

Targeting and measuring housing problems in developing countries through urban texture analysis

Latin-american countries passed from predominantely rural to predominantely urban within few decades. The level of urbanisation in Brazil progressed from 36% in 1950, 50% in 1970, and scalating to 85% in 2005. This rapid transformation resulted in many social problems, as cities were not able to provide appropriate housing and infrastructure for the growing population. As a response, the Brazilian Ministry for Cities, in 2005, created the National System for Social Housing, with the goal to establish guidelines in the Federal level, and build capacity and fund social housing projects in the State and Local levels. This paper presents a research developed in Gramado city, Brazil, as part of the Local Social Housing Plan process, with the goal to produce innovative tools to help social housing planning and management. It proposes and test a methodology to locate and characterise/rank housing defficiencies across the city combining GIS and fractal geometry analysis. Fractal measurements, such as fractal dimension and lacunarity, are able to differentiate urban morphology, and integrated to infrastructure and socio-economical spatial indicators, they can be used to estimate housing problems and help to target, classify and schedule actions to improve housing in cities and regions. Gramado city was divided in a grid with 1,000 cells. For each cell, the following indicators were measured: average income of households, % of roads length which are paved (as a proxy for availability of infrastructures as water and sewage), fractal dimension and lacunarity of the dwellings spatial distribution. A statistical model combining those measurements was produced using a sample of 10% of the cells divided in five housing standards (from high income/low density dwellings to slum's dwellings). The estimation of the location and level of social housing deficiencies in the whole region using the model, compared to the real situation, achived high correlations. Simple and based on easily accessible and inexpensive data, the method also helped to overcome limitations of lack of information and fragmented knowledge of the area related to housing conditions by local professionals.

Sustainable development in developing countries: the role of social entrepreneurs

This article adds to the ongoing debate on the relationship between poverty reduction, profits, and environmental sustainability. Drawing from the literature, it presents a conceptual model with propositions to explain how social entrepreneurs can lead to sustainable development in developing countries. These propositions are further strengthened by using a descriptive case of Waste Concern—an initiative of social entrepreneurs—in Bangladesh. Findings illustrate that, despite contextual constraints in developing countries, it is possible to have sustainable development with no trade-off between poverty reduction and environmental sustainability. This win-win outcome is possible through the innovative approaches and creative thinking of social entrepreneurs who, rather than being hindered by contextual constraints, act as catalysts for sustainable development. The findings have implications for academics and policy-makers, highlighting the significance of supporting social entrepreneurs to come up with innovative methods for sustainable development.