Economic Affairs
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Despite its frequent military coups, Thai democracy was practically a textbook case of successful transition during the 1980s and 1990s. A so-called "semi-democracy" during 1980-88 gave way to a fully elected civilian leadership whose corrupt government laid the conditions for a putsch in February 1991. As the coup makers institutionalized their power through the political party and electoral systems, a popular uprising put the military back in the barracks in May 1992. Following an organic five-year constitution-drafting process, the promulgation of the reform-driven 1997 Constitution appeared to cross the threshold between transition and consolidation. But the rise of Thaksin Shinawatra and his Thai Rak Thai party changed all that. The Thaksin regime was paradoxically corrupt and abusive of power on the one hand but delivered the goods from its populist platform through policy innovation on the other. Thaksin triumphed at the polls in 2001 and again, by a landslide, in 2005. In the same year, a Bangkok-based "yellow-shirt" movement campaigned against his graft and abuse, laying the groundwork for Thailand's latest putsch in September 2006. Thai politics has been murky and topsy-turvy since. Thaksin's opponents from the military, palace, Bangkok's middle class, royalist political parties, swathes of civil society, and the yellow-shirted People's Alliance for Democracy are now in charge, fronted by Prime Minister Abhisit Vejjajiva and his Democrat Party-led coalition government. Yet this anti-Thaksin coalition is unable to put the lid on the pro-Thaksin "red shirts" as the remarkable reign of King Bhumibol Adulyadej enters its twilight. Thai democracy and monarchy are increasingly enmeshed. Its road ahead towards a workable constitutional monarchy that is consistent with democratic development will have much to say about the democratization in developing countries. It is a crucial case that could build or sap the momentum of democratization and democracy promotion elsewhere.

Dr. Thitinan Pongsudhirak is Director of the Institute of Security and International Studies (ISIS) and Associate Professor of International Political Economy at the Faculty of Political Science, Chulalongkorn University. He has authored a host of articles, books and book chapters on Thailand's politics, political economy, foreign policy, media and ASEAN and East Asian security and economic cooperation. He is frequently quoted and his op-eds have regularly appeared in international and local media. Dr. Thitinan has worked for The BBC World Service, The Economist Intelligence Unit (EIU), Independent Economic Analysis (IDEA) and consulting and research projects related to Thailand's macro-economy and politics. He received his B.A. from the University of California at Santa Barbara, M.A. from the Johns Hopkins School of Advanced International Studies, and Ph.D. from the London School of Economics where he won the United Kingdom's Lord Bryce Prize for Best Dissertation in Comparative and International Politics. Dr. Thitinan has lectured at a host of universities in Thailand and abroad, and is currently a visiting scholar with the FSI-Humanities Center and Center on Democracy, Development and the Rule of Law.

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Thitinan Pongsudhirak Visiting Scholar Speaker CDDRL / Humanities Center
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Mobile phones are transforming lives in low-income countries faster than ever imagined.  The effect is particularly dramatic in rural areas of sub-Saharan Africa, where mobile phones have often represented the first modern infrastructure of any kind.  The iconic image of cell phones in Africa is the market woman, surrounding by her goods while making calls to potential clients in the capital city.  Equally common are the slogans of mobile phone companies promising a better life for those who use it. 

Yet do these images and slogans reflect the reality of what cell phones can do?  Cell phones are being adopted by the rural and urban poor at a surprising rate, far exceeding cell phone companies' projections. An emerging body of research suggests that mobile phones are improving households' access to information and reducing costs, thereby making markets more efficient and increasing incomes.  These impacts have occurred without NGOs or donor investments - but as a positive externality from the IT sector.

Governments, donors and NGOs have noticed the potential of information technology in achieving development goals in a variety of sectors, including agriculture, education, health, financial services and governance.  Mobile phones can greatly facilitate the effectiveness of development programs, but are needed in partnership with the private sector. And while cell phone coverage reaches over 60% of the population in most African countries, other constraints to cell phone adoption - namely pricing and handset cost - should be addressed.

Jenny Aker has worked extensively in Central, North and West Africa for the past ten years for NGOs, international organizations and universities. Her research uses field work and field experiments to better understand field-driven development problems, primarily by teaming up with NGOs and program implementers in an effort to link research with policy and implementation.

Jenny is currently involved in three main areas of research. The first assesses the impact of information technology (mobile phones) on development outcomes, namely farmers’ and traders’ welfare, market performance, labor outcomes, literacy rates and early warning systems. Based upon her previous work in Niger, she is collaborating with Catholic Relief Services in Niger on Project ABC (Alphabétisation de Base par Cellulaire), which uses cell phones as a learning tool to allow literacy participants to read and write in their local languages via SMS. The project takes a rigorous impact evaluation approach, assessing the impact of cell phones on literacy rates and farmers’ marketing behavior. Her second area of research involves assessing the impact of climate change on farmer-herder conflicts in the Sahel, with a particular focus on Mali. Her third area of research evaluates the impact of specific development interventions -- including food aid distributions, local purchases, and cash vouchers – on producers’ welfare and market performance in the Sahel.

In September 2009, Jenny joined Tufts University as an Assistant Professor in the Economics Department and Fletcher School of Law and Diplomacy.

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Jenny Aker Assistant Professor Speaker Fletcher School, Tufts University
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Aart Kraay is a Lead Economist in the Development Research Group at the World Bank. He joined the Bank in 1995 after earning a Ph.D. in economics from Harvard University, and a B.Sc. in economics from the University of Toronto. His research interests include international capital movements, growth and inequality, governance, and the Chinese economy. He has also worked for the China department of the World Bank and was a team member of the 2001 World Development Report 'Building Institutions for Markets'. He has taught courses in macroeconomics, international economics, and growth at Georgetown University, the Sloan School of Management at MIT, and the School of Advanced International Studies at Johns Hopkins University.

» Kraay, Aart, "Corruption and confidence in public institutions: evidence from a global survey".

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Aart Kraay Lead Economist Speaker The World Bank Group
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Abstract
Since 2004, Omidyar Network, the philanthropic investment firm of eBay founder, Pierre Omidyar, has been investing in market-based efforts with the potential for large-scale, catalytic social impact. Technology is a significant focus of its work, as it can greatly improve the quality of life, reaching millions of people efficiently and easily. Matt Halprin, partner, and Stephen King, director, Investments, will discuss the organization's pioneering approach to philanthropy, the developing world context for technology, and innovative examples of liberation technology from the field.

Matt Halprin, Partner
Matt leads Omidyar Network's Media, Markets & Transparency initiative, supporting technologies that promote transparency, accountability, and trust across media, markets, and government. Within this initiative, his team pursues investments in Social Media, Marketplaces, and Government Transparency. In his role as Partner, Matt builds Omidyar Network’s team of talented investment professionals and works with portfolio organizations to help them succeed.

Matt has more than 20 years of business experience, including six at eBay. As Vice President, Global Trust and Safety at eBay, he led a team of 90 statisticians, policy managers, and product managers. He also helped coordinate the efforts of 2,000 customer support personnel to increase revenue while minimizing fraud and other trust-reducing behavior. Prior to eBay, Matt served as a Partner and Vice President at the Boston Consulting Group, where he worked with technology clients on issues of corporate strategy and corporate development. Previously, Matt was Vice President of Marketing and Business Development at Quadlux, a VC-backed developer of technology-based ovens that was later sold to GE and Hobart.

Matt is on the Boards of Wikimedia Foundation (Wikipedia), Sunlight Foundation, DonorsChoose.org, Goodmail Systems and Management Leadership for Tomorrow, which supports the next generation of minority leaders in the United States.  He graduated with High Distinction as a Baker Scholar from Harvard Business School and holds a BS in mechanical engineering from Stanford University.

Stephen King, Director, Investments
Stephen brings Omidyar Network exceptional experience in applying media and technology to create positive social impact. Based in London, Stephen focuses on expanding our efforts outside the U.S. in the Social Media and Government Transparency investment areas. He also makes investments across all areas within the Media, Markets & Transparency initiative.

Prior to Omidyar Network, Stephen served as the Chief Executive of the BBC World Service Trust, where he led a period of sustained growth that included building programs in more than 40 countries in the developing world. Stephen helped establish the Trust’s international reputation as one of the largest and most successful organizations using media and communications to improve the lives of the world’s poor and promote better governance and transparency worldwide. Prior to the BBC, Stephen was the Executive Director of the International Council on Social Welfare, an international organization working to promote social development. Stephen has also held positions with nonprofit organizations HelpAge International, Help the Aged, and Voluntary Service Overseas.

Stephen is a board member of CARE International in the U.K. He holds an MA in Oriental and African Studies from the University of London.

Summary of the Seminar
Matt Halprin is a Partner leading Omidyar Network's Media and Stephen King is the Director of Investments and is based in London. They introduced us to the work of Omidyar Network which invests in market-based efforts to give people the technology tools they need to improve their lives.

The network was set up in 2004 by Pierre Omidyar, founder of eBay, and his wife Pam.  It comprises both a venture capital fund and a grant-making foundation.  The network has a strong focus on individual empowerment and is committed to market-based solutions, believing that business is one of the best mechanisms for achieving sustainable social impact. Omidyar looks to invest in projects that have potential to impact large numbers of people and that show signs of real innovation - for example, new business models or new markets.

So far $307 million has been committed, with $138 million going to for-profit investments and $169 million to non-profit grants. There are two broad areas of focus:

  • Access to capital: This encompasses projects around microfinance, entrepreneurship and property rights.
  • Media, markets and transparence: This encompasses projects around social media, marketplaces and government transparency. Omidyar are particularly interested in the role of journalism in ensuring accountability of governments.

Projects in the Unities States include:

  • The Sunlight Foundation - works to make information about Congress and Federal government more accessible and meaningful to citizens; created the first searchable site for all federal government contracts to monitor where money is going.
  • Global Integrity - uses quantitative and qualitative analysis to provide a scorecard tracking governance and corruption in different countries.

In the developing world, Omidyar looks to supports access to greater information and government transparency, which it views as key drivers of prosperity. The network is supporting global organizations, national partners in three African countries (Nigeria, Ghana and Kenya) and is establishing a pan-African mechanism for smaller grants. Current global projects include:

  • Ushahidi - an open source platform to report and share data in the aftermath of a crisis. Omidyar will be working to help Ushahidi to build traffic to the site and to tackle the challenge of verifying reports.
  • Infonet - a web portal that acts as an information hub for all national and devolved budgets in Kenya; currently used by NGOs, citizen groups and the media.
  • Mzalendo - a one stop shop for citizens to track the activities of parliamentarians in Kenya.
  • FrontlineSMS - a two way communication tool using laptops and mobile phones for organizations without internet access.

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Matt Halprin Partner Speaker Omidyar Network
Stephen King Director of Investments Speaker Omidyar Network
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An equilibrium search model of the Malawian HIV/AIDS epidemic is presented. Individuals engage in di¤erent types of sexual activity, which vary in their riskiness. When choosing a sexual activity, such as short-term sex without a condom, a person rationally considers its risk. A simulated version of the model is parameterized to match some salient facts about the Malawian epidemic. Some topical policies (e.g., male circumcision, treatment of other STDs, and promoting marriage) are studied and found to have potential to back…re: Moderate interventions may actually increase the prevalence of HIV/AIDS, due to shifts in human behavior and equilibrium e¤ects.

Assistant Professor Michele Tertilt is one of three Stanford scholars awarded a two-year Sloan Research Fellowship.  The Sloan Research Fellowships support the work of exceptional young researchers early in their academic careers.  Michele's research focuses on  family economics, consumer credit, growth and development, and demography.  The Economics department congratulates Michele on the prestigious fellowship.

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Michele Tertilt Assistant Professor Speaker the Department of Economics, Stanford University
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Using new field-level and international survey evidence we highlight one channel via which weak legal institutions may lower Indian productivity and growth. We provide evidence that top executives in Indian firms are highly centralized and do not delegate functional responsibility and decision making to middle-management. Case-study evidence and large-scale firm surveys suggest executives fear that managers will misappropriate firm assets given the opportunity to do so, in part because the weak legal system is unlikely to successfully punish the culprits and recover the assets. As a result, firms' growth potential is limited because of the limited time and attention of the top executives. This can help explain why Indian firms are smaller on average than those in the US or Europe. It can also explain why there is less reallocation of capital and labor from low productivity to high productivity firms in India, since otherwise-successful firms find it harder to grow. As a result, weak legal institutions may play a potentially important role in reducing aggregate productivity and growth in India.

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Thomas C. Heller
Erik Jensen
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The significant increase in the role of international trade in the economic development of nations over the last few decades has been accompanied by a considerable increase in the number of commercial disputes as well. In India too, rapid globalization of the economy and the resulting increase in competition has led to an increase in commercial disputes. At the same time, however, the rate of industrial growth, modernization, and improvement of socio-economic circumstances has, in many instances, outpaced the rate of growth of dispute resolution mechanisms. In many parts of India, rapid development has meant increased caseloads for already overburdened courts, further leading to notoriously slow adjudication of commercial disputes. As a result, alternative dispute resolution mechanisms, including arbitration, have become more crucial for businesses operating in India as well as those doing businesses with Indian firms.

Keeping in mind the broader goal of exploring links between the quality of legal performance and economic growth, this paper is an attempt to critically evaluate arbitration in India as a legal institution. To this end, this paper presents an empirical inquiry into the state of arbitration, as well as a more theoretical examination of the political economy and arbitration as developed and practiced in India. In sum, although the huge influx of overseas commercial transactions spurred by the growth of the Indian economy has resulted in a significant increase of commercial disputes, arbitration practice has lagged behind. The present arbitration system in India is still plagued with many loopholes and shortcomings, and the quality of arbitration has not adequately developed as a quick and cost-effective mechanism for resolution of commercial disputes.

In this paper, the evolution of arbitration law and practice in India has been explored. Part I of this paper lays out the basics of arbitration in India, with a brief discussion of its history, the statutes that govern arbitration, the types of arbitration practiced, the enforcement of arbitral awards, and the costs of arbitration as compared to those of litigation. Part II explores the working of arbitration in India, while Part III is a critical analysis of the success of arbitration under the 1996 Act. Part IV briefly examines arbitration practice across regions, and the relationship between arbitration and commercial growth. Finally, Part V offers a series of recommendations for improving arbitration practice in India.

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Improving the productivity of small farmers is essential for economic development in most poor countries.  Providing access to timely and relevant information could improve the opportunities available to farmers.  However, there are significant challenges related to literacy, infrastructure, access to technology and social, cultural, institutional and linguistic gaps between producers and consumers of knowledge.  The increased adoption of mobile phones is rapidly reducing the physical barriers of access.  Providing voice-based services via low-cost handsets could empower farmers to become producers as well as consumers of knowledge.  In this talk, I discuss several applications my students and I are developing to explore this potential.  Avaaj Otalo (Gujarati for "voice stoop") is the voice-based equivalent of an online discussion board. Farmers and agricultural experts call a toll-free line to ask questions, provide answers, and listen to each others questions, answers and experiences.  We conducted a six-month trial deployment of Avaaj Otalo with fifty farmers in Gujarat, India. Farmers found it useful to learn both from experts and other farmers, sharing advice on many topics - including the best time to sow fodder, recipes for organic pesticides, and homemade devices to scare away wild pigs at night. Digital ICS allows coffee cooperatives to monitor quality and organic certification requirements, and to be more responsive to farmers' needs.  Field inspectors use mobile phones to document growing conditions and record farmers questions and comments through a combination of text, audio and images.  In a six-month trial deployment, the system significantly reduced operational costs, saving the cooperative approximately $10,000 a year.  The cooperative also obtained richer feedback from its members, which can be used for targeting extension, improving decision-making and reaching out to consumers.  In both of these systems, voice provides not only an accessible interface to information, but a medium for aggregating and representing knowledge itself.  We found this approach more suitable for engaging communities more comfortable with oral forms of communication, for whom text and structured data represent significant barriers to expression.  Most importantly, we have found that rural communities have a deep desire to be "heard", and simply need the tools required to define and achieve "development" on their own terms.

Tapan Parikh's research focuses on the use of computing to support sustainable economic development across the World. I want to learn how to build appropriate, affordable information systems; systems that are accessible to end users, support learning and reinforce community efforts towards empowerment, economic development and sustainable use of natural resources. Some specific topics that I am interested in include human-computer interaction (HCI), mobile computing and information systems supporting microfinance, smallholder agriculture and global health

Summary of the Seminar
Tapan Parikh, of UC Berkeley School of Information, spoke about a number of projects that are using mobile phone based technology to give small businesses the information they need to improve productivity. He argued that voice technology has distinct advantages over text, because it overcomes challenges of illiteracy while responding to a strong need people feel to be heard. 

Information is key for economic development and empowerment. But information is worthless unless it is also useable (leads to decisions the business owner can actually take), trusted (comes from a source he respects) and relevant (speaks about the issues he is facing). For information to be really empowering, it must also be two way: there must be ways for individuals to create content themselves.

Tapan described three current projects he is involved in:

Hisaab: Microfinance groups in India often suffer from poor paper based record keeping, making it difficult for the group to track loans and repayments. The Hissab software was designed with an interface suitable for those who may be illiterate and/or new to computing. The use of voice commands and responses in the local language, Tamil, prevented the software from feeling remote and inaccessible and contributed to the success of this initiative. 

Avaaj Otalo: Agricultural extension workers provide advice to farmers on pests, new techniques etc to help improve yields. But often they have limited reach, visiting areas only rarely, or perhaps lacking the expertise to respond to all the problems they encounter. Avaaj Otalo is a system for farmers to access relevant and timely agricultural information over the phone. By dialing a phone number and navigating through simple audio prompts, farmers can record questions, respond to others, or access content published by agricultural experts and institutions. The service has been hugely popular, with farmers willing to spend time listening to large amounts of material to find what they want. The opportunity to be broadcast was a major attraction, reflecting the desire to be heard and to create media rather than be a passive consumer of it.

Digital ICS: Smallholders' compliance with organic, fair-trade and quality requirements is usually measured via paper based internal inspections. The data uncovered by these is vital but often lost. Digital ICS is a mobile phone based application that allows inspectors to fill out the survey digitally, enhance it with visual evidence (e.g. from camera phones) and upload it onto a web application. This is being piloted with coffee farmers in Mexico. A key finding from the work is that farmers want to know who ends up drinking their coffee, what they pay for it and what they think about it. Greater links between producers and consumers may therefore be another area for this project to investigate.  

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Tapan Parikh Assistant Professor Speaker University of California, Berkeley; affiliate in the Department of Computer Science at the University of Washington
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