Large infrastructure projects have a bad rap. Many deservedly so. But new evidence is emerging that large scale dam projects in China are Pareto improving, and large scale infrastructure investments in Brazil had large positive effects on development. Dam projects have been controversial for the benefits on power generation, flood control and irrigation, and … [Read more...] about More power to Dams?
Traffic jams
In 1966, the incredible Julio Cortazar published a short story called ‘The Southern Thruway’. An accident happens in a lazy summer afternoon and traffic grinds to a halt. Nothing moves. Everybody waits. One by one people get out of their cars to stretch their legs and some start chatting. Traffic is stuck. Night slowly falls. The engineer in the Peugeot and the woman in … [Read more...] about Traffic jams
Shelter from the storm
In 1997, a small group of Chilean students started working as volunteers in poor areas in the beautiful Bio Bio region in Chile. A few years later, the group decided to start building provisional emergency housing – called mediaguas in Chile – designed to house a family of four. In 2000, over 600 volunteers helped build 5,700 houses, under the umbrella of an NGO originally … [Read more...] about Shelter from the storm
In the long run we are all dead
Discounting future flows is a critical step in Cost Benefit or Cost Effectiveness. Many institutions still use relatively high discount rates, which might not be applicable to projects where benefits-or costs- will happen way in the future in a world of rapidly declining cost of capital. Is it time to reconsider discount rates estimates for development projects, particularly in … [Read more...] about In the long run we are all dead
Where the wild beasts are (and attack randomly)
As you sit in front of your screen, the thought of wild dangerous beasts in faraway places may sound quaint and take you to another era when Sandokan fought off ferocious felines or to the protection of innocence in the Life of Pi. But less cinematic beasts such as wild boars can inflict significant economic hardship on poor farmers. … [Read more...] about Where the wild beasts are (and attack randomly)