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Andreessen Horowitz’s Pledge

Posted by Jenny Stefanotti on Wednesday, May 2, 2012, In : Philanthropy 

Since I’ll be San Francisco based for the foreseeable future, I’ve been thinking a lot about how the Silicon Valley engages in philanthropy.  Last week’s announcement by venture-capital firm Andreessen Horowitz got me pretty excited.  Its six general partners pledged to donate at least half of their lifetime earnings from the firm to charity.  Each partner will decide individually how and when to allocate their money.   

While many other tech titans have made the Giving Pledge, including...

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Policy and VC: The Case of Israel

Posted by Jenny Stefanotti on Friday, April 20, 2012, In : Industrial Policy 
Guest post by Ussal Sabhaz

Israel, a tiny country of 7 million people, is one of the most important venture capital markets in the world. Back in early 90s, it was a stagnating economy recovering from hyperinflation. Emerging in mid-90s, a strong VC industry transformed Israel into a high-growth, high-income, innovation-based economy.  The government played a central role in this transformation.

It all started when Yigal Erlich, the chief scientist under the Ministry of Trade and Industry, came...

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Public Policy's Role in Venture Capital in Developing Countries

Posted by Jenny Stefanotti on Friday, April 20, 2012, In : Industrial Policy 
Guest post by Ussal Sahbaz
 
One of the things that I was impressed by when I came to Boston from Turkey was the entrepreneurial environment, and how venture capital (VC) fueled it.  VC is crucial in fostering entrepreneurship and innovation, yet it typically doesn’t take hold in developing countries. So should the government take action and start its own VC fund? My answer is, no! 

There are multiple reasons why doing so would be problematic.  First and foremost, political connections might p...

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Behavioral Economics and Philanthropy

Posted by Jenny Stefanotti on Monday, April 16, 2012, In : Aid Effectiveness 

Economists like to model aid the same way they model capital markets: actors should allocate funds where return on investment is highest.  Hence the focus on evaluation, which gives donors the ROI information necessary to efficiently allocate aid.

While this paradigm is bringing great improvement to philanthropic and aid allocations, it is also oversimplistic, and it suffers from the same erroneous assumptions as neoclassical economics. Behavioral economics is increasingly prominent in thinkin...

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User Driven Design: Lessons for Development from the Silicon Valley

Posted by Jenny Stefanotti on Friday, April 13, 2012, In : Aid Effectiveness 

Sara’s guest post on product design deficiencies doesn’t just apply to international development. It applies to tech as well.  Startups fold all the time because they fail to take into account the user, investing too deeply in a sexy but untested idea.  By taking a closer look at the design processes technology startups employ to mitigate this risk, we can glean valuable lessons for development practitioners -- especially social entrepreneurs utilizing technology.    

Too often tech entrep...

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Product Design Before Program Evaluation

Posted by Jenny Stefanotti on Friday, April 13, 2012, In : Aid Effectiveness 
Guest post by Sara Nadel
 
Several years ago, I saw a presentation by Yale School of Management Economics Professor Mushfiq Mobarak about encouraging poor populations in Bangladesh to adopt clean stoves. Traditional stoves pollute air inside the home, causing respiratory illnesses and increasing cancer risk. However, households refused to adopt the stoves. Dr. Mobarak suggested several reasons households may choose against using a product that is good for them: perhaps the male household head m...

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The Importance of Proximity in Venture Capital Markets

Posted by Jenny Stefanotti on Friday, April 6, 2012, In : Access to Finance 
 
Accion’s announcement this week of a $10M seed fund targeted at access to finance brings me back to a question I found myself occupied with at the end of grad school: How important is proximity for venture capital markets?  I believe it is critical.  

Why is proximity fundamental?  I think of it through the lens of the information required to make an investment decision ex-ante, and then to monitor that investment ex-post.  Early stage investment opportunities nearly always come through a t...

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Behavioral Economics and Venture Capital

Posted by Jenny Stefanotti on Wednesday, April 4, 2012, In : Behavioral Economics 
 
Two general types of information are necessary for making investment decisions.  One includes “hard” (i.e. quantitative, objective) factors like the size of the firms, credit history, debt levels, collateral, industry trends, etc.  The other includes “soft” (i.e. qualitative, subjective) factors such as the quality of management, trustworthiness, reputation, and even “chemistry”.  Venture capital funding decisions disproportionately weight the “soft” considerations – specif...

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Spawned by TED: Reid Hoffman on Careers in the Network Age

Posted by Jenny Stefanotti on Tuesday, March 6, 2012, In : Technology 
 
Last week at TED there was a session entitled “The Crowd.”  Given my interest in how technology impacts system dynamics I was particularly excited for this set of talks.  Reid Hoffman, LinkedIn founder and legendary Silicon Valley venture capitalist was amongst the speaker lineup.  He spoke about how the network age transforms the world of work (also the topic of his new book, The Startup of You).  

Ried talked about how the story of work we’ve always told ourselves, one of riding up an...

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Rethinking Education

Posted by Jenny Stefanotti on Tuesday, February 21, 2012, In : Education 
 
It was never apparent to me how technology could improve education.  The teacher to student, person-to-person interaction seemed immutable.  As far as I could see, technology could drive increased efficiency on the margins, but that was about it.  Then, just about a year ago, Salman Kahn took the stage at TED.  His talk forever changed how I think about the opportunities for technology and education.  It also upended everything I thought I knew about teaching our children.

I read a couple pie...

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The Prize Model: Compelling! But... Complicated.

Posted by Jenny Stefanotti on Friday, February 10, 2012, In : Aid Effectiveness 

For my most recent role at Google, I investigated prizes as a philanthropic tool.  I concluded my research with immense support for the model.  Still, my enthusiasm remains mitigated by the significant execution complexity involved.  Let me explain my excitement and reservations.

First off, what do I even mean by a prize?  Prizes and challenges seem to be everywhere these days.  I’m not talking about what I’ll call a “recognition” prize, e.g., the Nobel.  Nor am I referring to the ubiq...

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Paternalism. Friend or Foe?

Posted by Jenny Stefanotti on Tuesday, January 31, 2012, In : Policy Making 

Readers of this blog will know that I’m a big fan of behavioral economics.  I’m constantly applying its lessons to a host of development issues, from consumer finance to aid effectiveness to health care to (my personal favorite) venture capital.  The list goes on and on.  I find the intersection of psychology and economics so central to my thinking that I when I first encountered it at the Kennedy School I was surprised to realize it wasn’t part of the core MPAID curriculum. So surprise...

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The Real Value in Conditional Cash Transfers

Posted by Jenny Stefanotti on Tuesday, January 24, 2012, In : Policy Making 

I generally resist summarizing an interesting post or article, but occasionally one comes along that is just too good to risk losing in a Twitter stream.  I read a fantastic blog post about conditional cash transfers (CCTs) the other day by Lant Pritchett, one of my former professors at the Kennedy School.  It’s pretty technical and sometimes Lant is hard to follow if you’re not a trained economist (I shudder to think how much I missed in his class my first semester), so it seems all the ...

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USAID's Development Innovation Ventures (DIV)

Posted by Jenny Stefanotti on Friday, January 13, 2012, In : Aid Effectiveness 
 
When I decided to leave the technology industry to pursue my MPAID, I did not intend to focus on the application of technology to international development.  On the contrary, I was highly suspicious of that trend.  When I stepped off the plane in Liberia during my summer internship, I had the task of assessing the establishment a wireless broadband network.  But, the country didn’t have electricity.  The exercise seemed borderline absurd.

Then I sat at my desk inside the president’s offic...

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Hello World (Take Two)

Posted by Jenny Stefanotti on Tuesday, January 10, 2012,
It’s been nearly a year since my last post, and in all sincerity, over a year and a half since I’ve blogged in earnest. Despite my best intentions of keeping up this blog upon graduation from the Kennedy school, life swept me away.  To be fair, I’ve been busy.  I planned two weddings.  My husband and I bought and remodeled a home.  And most importantly, I brought an incredible little person into the world last May.

With the dust now settling on this new era of my personal life, it’s fi...

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Criticizing Clooney

Posted by Jenny Stefanotti on Tuesday, January 11, 2011, In : Aid Effectiveness 
 
Not shockingly, the presence of a celebrity and a high profile development intervention is getting a lot of attention in the development twitterverse/blogosphere.  The latest is George Clooney's efforts in Sudan. As I think we all know, Clooney's Not on Our Watch has partnered with a handful of organizations, including the Enough Project, the United Nations UNITAR Operational Satellite Applications Program (UNOSAT), the Harvard Humanitarian Initiative, and Google for the Satellite Sentinel p...

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How will you measure your life?

Posted by Jenny Stefanotti on Thursday, August 19, 2010, In : Culture 
 
It's not often I blog about an article I've read without adding substantial commentary of my own, but I read one recently that really struck a chord with me.  As my recent posts make clear, I've been thinking a lot about what's important in life, and the values and norms that have evolved in industrialized societies.  Something else happened that also heightened the article's impact on me: a week and a half ago, my grandmother passed away.   

The article is entitled "How will you measure your...

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Spawned by TED: Jessica Jackley on Philanthropic Engagement

Posted by Jenny Stefanotti on Tuesday, July 20, 2010, In : Aid Effectiveness 

Jessica Jackely, co-founder of Kiva and the newly launched Profounder, gave an intensely personal talk at TEDGlobal last week.  It was met with a standing ovation and actually, it was the single talk that brought tears to my eyes.  In addition to conveying her deep passion for development, Jessica had some very insightful things to say about the psychology of philanthropy and the mechanisms with which those who give engage with those who receive.

According to Jackley, the exchange that cha...


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Spawned by TED: Ethan Zuckerman on the Internet and Imaginary Cosmopolitanism

Posted by Jenny Stefanotti on Tuesday, July 20, 2010, In : Technology 

Ethan Zuckerman is a Senior Researcher at the Berkman Center for Internet and Society at the Harvard Law School.  Incredibly and embarrassingly, I never managed to link with the Berkman Center during my time in Cambridge, so I was thrilled to see Ethan would be speaking at TEDGlobal this past week.  His talk was another of the highlights of the conference, and one of particular relevance for those of us interested in how the access to information that the Internet affords impacts developm...


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Spawned by TED: Tim Jackson on Economic Growth, Sustainability, and Institutions

Posted by Jenny Stefanotti on Monday, July 19, 2010, In : Institutions 
 

Tim Jackson, who among other things is the UK government’s advisor on sustainable development, raised an important issue at TEDGlobal this week in Oxford.  At least I thought so, because it struck at one of the central things on my mind these days (outlined in a recent blog posting here).

Jackson makes two points, one obvious and the other less so.  The first is that economic growth is fundamentally constrained by the resources of this planet.  Our way out to date has been a blind faith in ...


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TED and Burning Man

Posted by Jenny Stefanotti on Sunday, July 18, 2010, In : Culture 

I spent last week in Oxford at my first TEDGlobal conference.  I was unexpectedly struck by the parallels between this prestigious gathering of global intelligentsia and an event ostensibly as far away at the other side of the spectrum as possible – Burning Man. 

Burning Man is near impossible to explain to the uninitiated, let alone succinctly.  It’s like dropping yourself on another planet with an entirely different species of human being.  You’re on a dusty dried lakebed that loo...


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One of the more exciting things happening in access to finance

Posted by Jenny Stefanotti on Sunday, July 18, 2010, In : Access to Finance 

Imagine you are a bank.  What information would you need to determine the creditworthiness of an entrepreneur or a small business?  If the business is at an early stage, financial statements may not be very valuable.  If the business has little physical capital to be used as collateral, it might be too risky.  If the entrepreneur has no credit history, it might be game over.  Microfinance gets around this with the group-lending model, because while it is costly for a lender to assess the c...


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Things that turn me on lately

Posted by Jenny Stefanotti on Sunday, July 18, 2010,

A few things have been on my mind for awhile.  Topics I'm particularly fascinated by, and that I think are important for development.  They are the following:

How people access and process information, and what the deficiencies in that process mean for the challenges we face in international development.  I actually think this is very relevant for a long list of issues, especially aid and access to capital.

Prospect theory and the implications for development.  In sum, prospect theory arg...


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Is this really what we're striving for?

Posted by Jenny Stefanotti on Sunday, July 18, 2010, In : Culture 
 

I'm in the middle of biggest transition state of my life.  Not only am I just about to embark in a new direction with my career, but I'm also just about to transition from a girlfriend to a wife, and motherhood looms on the horizon.  As I move on to these significantly different phases of my professional and personal life, I'm doing a considerable amount of thinking about my priorities and how I want to live.  In doing so, I'm reminded of a real problem with the society I exist in. 

We're ...


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Asking myself, "What's the goal again?"

Posted by Jenny Stefanotti on Sunday, July 18, 2010, In : Human Rights 
 

One of the things I'm doing with my time off between graduation and working full time is taking a massive step back when it comes to my thinking about development.  I'm asking myself the following questions:

What do I believe should be the societal goals of "development"?  Is there some level of overall well being (or freedom as Sen would define it) that we consider a right of everyone that inhabits this planet?  If so, upon what basis are those rights determined?  Or is it that, given the ...


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Social Preferences and Corruption

Posted by Jenny Stefanotti on Thursday, April 8, 2010, In : Behavioral Economics 
 
I recently read Sendhil Mullainathan's paper, "Psychology and Development Economics," for a class I'm taking with him. It's a fantastic read and very accessible -- I highly recommend it.  One section, however, is so thought provoking that I felt it worth replicating in full on my blog.  It's about the psychology of fairness and its role in corrupt behavior.  I have become extremely interested fairness in human behavior, and its evolutionary roots.  I think it has a lot to teach us about deve...

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My Classmates' Letter to the Harvard Kennedy Citizen

Posted by Jenny Stefanotti on Wednesday, April 7, 2010, In : Aid Effectiveness 
 
Needless to say, I am fortunate to be surrounded by extremely brilliant and passionate people here at Harvard.  I should have included contributions from them at the onset of this blog, but late is better than never.  A few of the first year MPAIDs wrote the letter below to our school paper in response to the Harvard's response to the earthquake in Haiti.   

This is one of several guest contributions I will be adding over the next few days.

* * * 

Dear Editors of the Harvard Kennedy Citizen,

The...


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Executive Summary: Second Year Policy Analysis

Posted by Jenny Stefanotti on Tuesday, April 6, 2010, In : Industrial Policy 
Below is the executive summary of my Second Year Policy Analysis, entitled "Domestic Broadband Infrastructure Policy: Laying the Foundation for the Future of ICT in Tanzania."  It examines the Tanzanian government's policy regarding national backbone infrastructure.  Email me if you'd like to read the full paper.
 
* * *

With the recent launch of its submarine fiber-optic cable, SEACOM removed the most significant historical constraint to East African broadband connectivity.  Nonetheless, lac...


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When Life (and School) Gets in the Way

Posted by Jenny Stefanotti on Tuesday, April 6, 2010,
Apologies for the long respite from postings.  Responsibility largely lies with my Second Year Policy Analysis paper (i.e. my thesis), which commanded every ounce of bandwidth I had to give (and then some).  Then for a few weeks, life got in the way.

But I am back, and I have a long list of things to say...

 

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Random Evaluation in the Real World

Posted by Jenny Stefanotti on Friday, February 19, 2010, In : Aid Effectiveness 
 
Ken Bank's recent post "Social Mobile and the Missing Metrics" really started my wheels turning. Among many other things, it started me thinking about how we could be smarter in implementation so as to facilitate true impact evaluation.

The first thing that came to mind is Oportunidades, formerly known as Progressa, the famous social assistance program in Mexico that made cash transfers contingent on school attendance and visits to health clinics.  When Opportunidades rolled out, they couldn'...

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Aid Allocation Constraints and The Value of Rigorous Evaluations

Posted by Jenny Stefanotti on Friday, February 19, 2010, In : Aid Effectiveness 
 
I’m taking a class on bridging research and policy with Rohini Pande and Sendhil Mullainathan this semester.  Each week we have to answer discussion questions related to our readings, and last week mine was chosen to share with the class.  I figure that’s a pretty good sign it’s worth sharing with the world at large as well. 

In your view what are (up to) three important principles that an international organization should follow in allocating development aid?
 
I’m going to take a slig...

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Does Development Economics Have Its Own Uncertainty Principle?

Posted by Jenny Stefanotti on Saturday, February 13, 2010, In : Economics 

In quantum mechanics there is something called the Heisenberg Uncertainty Principle: we can never know both the exact location and momentum of a particle – at small enough scales the more precise we are with one, the less precise we can be with the other.  I just realized that when it comes to drawing policy implications, development economics might have an uncertainty principle of its own.
 
Esther Duflo spoke at TED this week, talking about the need for evidence and experimentation in devel...

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Problems With Global Poverty Measurements (Pt. 2 Conceptual)

Posted by Jenny Stefanotti on Saturday, February 13, 2010, In : Economics 
 
In addition to the technical challenges with creating a global poverty count as outlined in my post below, there are also conceptual issues with poverty counts that I would be remiss to not include.  

First is the simple idea of a head count, as defined by those above or below a defined consumption level.  People's lives are not significantly different just below or just above that line, and yet those above are excluded from our numbers.  Small changes to the line can lead to big changes in t...

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Problems With Global Poverty Measurements (Pt.1 Technical)

Posted by Jenny Stefanotti on Friday, February 12, 2010, In : Economics 
 
Measuring global poverty levels is hard, so hard the actual numbers might be of limited use. According to Angus Deaton, the godfather of poverty measurement, "it seems impossible to make statements about changes in world poverty when the ground underneath one's feet is changing in this way."  I thought it would be helpful to illuminate why.  

Technically speaking, creating a measurement of global poverty is a daunting endeavor.  It hinges on three key things: 1) household surveys 2) a single ...

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Gmail: A Trojan Horse for Social Networking? (with a bonus Emerson passage!)

Posted by Jenny Stefanotti on Tuesday, February 9, 2010, In : Technology 

"A man should learn to detect and watch that gleam of light which flashes across his mind from within, more than the lustre of the firmament of bards and sages.  Yet he dismisses without notice his thought, because it is his.  In every work of genius we recognize our own rejected thoughts; they come back to us with a certain alienated majesty. Great works of art have no more affecting lesson for us than this.  They teach us to abide by our spontaneous impression with good-natured inflexibilit...

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Promoting Entrepreneurship in Developing Countries: Starting to Think Through Government's Role

Posted by Jenny Stefanotti on Tuesday, February 9, 2010, In : Industrial Policy 
 
Dani Rodrik's teaching forms the basis for how I approach industrial policy - namely that governments should intervene where markets fail, and implement policies that target those failures.  This principle also forms the basis for an issue I have with how he approaches policies to promote economic growth through innovation.

In short, Rodrik's position is that market failures lead to an inefficient allocation of resources, which is particularly acute in developing countries.  He argues that en...

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Hausmann + Rodrik = A Surprisingly Bad Idea

Posted by Jenny Stefanotti on Monday, February 8, 2010, In : Industrial Policy 

This post is  a follow up to yesterday's about an article in this week's Economist that discusses the work of one of my professors, Ricardo Hausmann.  Though there are important caveats I think people need to understand (see my post), the work has tremendous value in helping us understand how the structure of economies evolve.  The real problem comes when Hausmann partners with Dani Rodrik and Charles Sable to translate his findings into policy prescriptions.  Somehow, something has gone terr...

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Hausmann's Product Space

Posted by Jenny Stefanotti on Saturday, February 6, 2010, In : Industrial Policy 
There's an article in this week's economist about Ricardo Hausmann's product space.  I'm happy to see it getting mainstream attention.  It's incredibly important work, and it just makes intuitive sense.  But before we start using it for policy decisions, we should be aware of some of the major caveats.

To summarize, what Hausmann and Hildago did was create a mapping of products across the global economy, defining proximity by looking at the probability of a country having a comparative advanta...

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Technology, Development, and Psychology

Posted by Jenny Stefanotti on Tuesday, February 2, 2010, In : Behavioral Economics 
 
Generally, I argue that access to more information via technology is good for development. Access to information (e.g. prices) improves market efficiency.  Communication flows fostered by the Internet strengthen democracy.  With this information, people are empowered to debate the direction they want their societies to move in.  I've read my Amartya Sen, after all.

But could too much information actually be counterproductive?  Apparently, yes.  As I sat in David King's first lecture in my Cul...

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Technology and Philosophy

Posted by Jenny Stefanotti on Monday, February 1, 2010, In : Philosophy 
 
Damon Horowitz, the CTO of Aardvark, is one of the smartest people you'll ever meet.  And one of the most interesting too.  After getting is master's in computer science at the MIT Media Lab and diving deep into artificial intelligence, he took his career for a left turn and got a PhD in philosophy from Stanford.  

A couple weeks ago he gave fascinating and thought provoking talk at the TEDx event in San Francisco about the boundary between machines and people.  He has a lot of interesting th...

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A $1B Question

Posted by Jenny Stefanotti on Friday, January 29, 2010, In : Aid Effectiveness 
 
In preparation for a recent interview, I readied myself to answer the question: What would you do with $1B to make the world a better place?  I highly recommend the thought experiment. Here's where I landed.

I'd spend it grants, debt, and equity for entrepreneurs, with innovations that address the failures that are prevalent in developing countries. Failures of the market and failures in public service delivery. Simply put, many of the systems in place just don't work with the resources and i...

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A Controversial Film About Liberia

Posted by Jenny Stefanotti on Friday, January 29, 2010,
 
A very controversial documentary about Liberia has recently come out.  I thought I'd weigh in, given my time in Liberia and that Myles Estey, the journalist who co-produced the film and facilitated the interviews is a good friend.

First and I think foremost, Shane Smith is no man to inform the masses about Liberia.  It doesn't take long to get a sense for his character and what's coming, with comments like "He's had malaria more times than he's had a hot meal." Furthermore Smith has a woefull...

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A Few Thoughts on China, Google, Values, Rights

Posted by Jenny Stefanotti on Saturday, January 23, 2010, In : Human Rights 

In case you missed it, Google's announcement last week marked a real turning point for multinational corporations.  It set precedence for the corporation, representing Western values, standing up to a foreign state.  This value clash involves a plethora of important questions with not so obvious answers.

When localizing a product for a certain country or culture or expanding operations internationally, multinational organizations subject themselves to local jurisdiction and as a consequenc...


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Google vs. The Chinese Government

Posted by Jenny Stefanotti on Wednesday, January 13, 2010, In : Human Rights 
In a strategic about face, the world's biggest Internet company has just taken a stand in favor or human rights, risking its business in the biggest Internet market in the world.   

Last week Google was subjected to "sophisticated" attacks targeting Google's corporate infrastructure, attacks which originated in China.  Further investigation revealed twenty other companies were also targeted, and that the attacks were intended to glean information from Gmail accounts of Chinese human rights act...

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Broadband Policy No Brainers: Cost Reducing Measures

Posted by Jenny Stefanotti on Monday, January 11, 2010, In : Industrial Policy 
As I sit here during my winter break delving deep into broadband policy for my thesis, a few of the things I was reaching for but not quite understanding last summer in Liberia are now becoming clear.  While the appropriateness of many of the policies are very much context specific, a few are really no brainers that would have an enormous impact if adopted widely across the African continent.

The premise for these policies is simple: they promote and take advantage of opportunities to foster c...

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Broadband Policy in Africa: Lessons from Korea

Posted by Jenny Stefanotti on Friday, January 8, 2010, In : Industrial Policy 

Africa is currently at a crossroads with respect to broadband policy.  Multiple submarine cables will come online around the continent over the next several years, radically changing the economics of high-speed Internet delivery and driving significant investments in domestic and regional telecommunications infrastructure.  Competition in these markets is highly imperfect due to the high fixed costs necessary for entry, and positive externalities create suboptimal allocations.  These market...


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Inherently Inefficient? A Thought Experiment

Posted by Jenny Stefanotti on Thursday, November 12, 2009, In : Aid Effectiveness 
My boyfriend's wonderful mother Martha wanted to show her support of my decision to go into development and specifically to spend my summer in Liberia.  Late last July, she sent an email with a gesture of her support and admiration. She would give money to whatever cause I wanted it Liberia.

I was touched, of course.  What wasn't obvious as I read her email was how eye opening the decision process that ensued would be.  For the first time I actually had the philanthropist hat on.  I didn't wan...

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Incentive Issues in African Telecommunications

Posted by Jenny Stefanotti on Thursday, October 1, 2009, In : ICT4D 
Note to most African governments: "You're going the wrong way."

Everyone's excited about the imminent glut of bandwidth headed Africa's way from the construction of multiple submarine cables.  SEACOM went live last July, to the thrill of anyone excited about ICT4D.  Increased competition for international backhaul connections has the potential to drop the Mbps cost for Africa to connect to the outside world by a full order of magnitude, from the thousands to hundreds of dollars per month.  Suc...

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Africa's Golden Opportunity

Posted by Jenny Stefanotti on Thursday, October 1, 2009, In : ICT4D 
This week's Economist has a special report on telecoms in emerging markets that I highly recommend to anyone interested in ICT4D.  While much of the report reiterates what many of us already know, one of the articles in particular got me really excited and essentially validates a lot of what I was reaching for in Liberia this past summer: domestic infrastructure itself can be organized in a way to bring dramatic drops in operating costs.  Given the highly competitive nature of service provide...

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What I Got Wrong: Lessons Learned in Liberia This Past Summer

Posted by Jenny Stefanotti on Sunday, September 27, 2009, In : Policy Making 
Well, this might not be the brightest move, as I send out my resume with links to this blog.  But since last Monday's Liberia Foundations Meeting, I've been thinking a lot about my work this summer and I think it's worth sharing what I would have done differently.  Then we can both learn from my mistakes.  I'm not embarrassed to have made them: I think that many of us in the development community make them, including some of the loudest voices out there. 

What I learned should have been blata...

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On Monkeys and India's IITs

Posted by Jenny Stefanotti on Friday, September 25, 2009, In : Economics 
I'm taking Ricardo Hausmann's Development Policy Strategy course this semester, and every lecture seems more amusing than the last.  This Wednesday's lecture on productive transformation and the evolution of comparative advantage was so entertaining, I felt inclined to share.

Professor Hausmann talks a lot about monkeys and trees.  The trees represents the product space, a mapping of the capabilities required to produce certain products in an economy.  Monkeys then, are the entrepreneurs.  The...

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Liberia's Second Annual Foundations Meeting

Posted by Jenny Stefanotti on Wednesday, September 23, 2009, In : Aid Effectiveness 
I went down to New York earlier this week to attend Liberia's second annual foundations meeting.  It was an exciting opportunity for me to meet the leaders of the foundations engaged in Liberia and present the work I did this summer regarding opportunities for philanthropic support for technology.

I'm inspired by the outstanding group of foundations supporting Liberia.  Their commitment to the country runs deep, evident in their willingness to engage on myriad initiatives both within and acros...

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On the Microfinance Debate

Posted by Jenny Stefanotti on Sunday, August 16, 2009, In : Access to Finance 

Two things I read recently have sparked my thinking on microfinance: this Economist article about whether microfinance reduces poverty, and this blog posting by Rachel Strohm, who I follow on twitter and works in microfinance.

Something about microfinance never sat quite right with me.  Sure, it’s impossible to argue that group lending models that allow credit to overcome adverse selection and moral hazard problems aren’t an important innovation in improving the lives of the poor.  Sti...


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My Depressing Visit to the University of Liberia

Posted by Jenny Stefanotti on Thursday, July 23, 2009, In : Aid Effectiveness 

I frankly think capacity building needs to rise higher on the agenda of the development community as a whole.  The old proverb says it all “Give a man a fish he’ll eat for a day, teach a man to fish he’ll eat forever.”  All too often we’re so busy feeding people we don’t teach them how to feed themselves once we’re gone.

So it should come as no surprise that a key component of my recommendations for supporting technology in Liberia is capacity building.  Not as sexy as blanke...


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Lessons in Aid Inefficiency: Tech in Liberia

Posted by Jenny Stefanotti on Thursday, July 23, 2009, In : Aid Effectiveness 

Part of what drew me to Liberia was my interest in understanding best practices in international aid.   It's no secret that aid is often inefficient at best and ultimately counterproductive at worst.  Unlike others, I do not believe that this unfortunate fact is a justification to throw the baby out with the bath water.  I believe that there is a role for assistance, and if my path takes me in that direction, I want to know how to do it well.  I knew some of the mistakes that these org...


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What's Really Different About Liberia

Posted by Jenny Stefanotti on Monday, June 29, 2009, In : Economics 

Before I landed here, I posted a bit about what I’d heard about Liberia: how incredibly poor it is, how people live, how little economic activity there is. Now that I’ve been on the ground for three weeks now (time flies!) I can say that much of that was just plain misleading.


The fact of the matter is people living in poverty, people living off a dollar or two a day, people without running water, without proper waste treatment facilities, without electricity, in homes that could blow ove...

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Mob Justice: Is It Just?

Posted by Jenny Stefanotti on Monday, June 29, 2009, In : Institutions 

I missed a raging ethical debate during the drive this morning (I was home sick).  Our driver told my housemates that his community caught a thief last night.  And then they cut off one of his hands.

This isn’t the first I’ve heard of something like this happening in Liberia.  Another friend was at a graduation party recently when people started yelling “ROOGGGUEEE!!!,” which was immediately met by everyone running out, chasing down the culprit, and beating him.  Then hoisting him in t...

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Internet Infrastructure in Liberia

Posted by Jenny Stefanotti on Sunday, June 14, 2009,

I had a meeting yesterday with Ben Wolo, the Managing Director of Libtelco, Liberia’s national telecommunications company.  I’ve spent much of the past week learning more about Internet infrastructure (just because I worked at Google doesn’t mean I know these things very well!).  After yesterday’s meeting, I now understand the set up behind the horribly slow Internet that I battle on a daily basis.

Liberia has next to no infrastructure.  There is no connection to submarine fiber, ...


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Busy Summer Ahead

Posted by Jenny Stefanotti on Sunday, June 14, 2009, In : Development Careers 

Most internships are not about getting much accomplished.  Many of my fellow interns her are complaining about how little they’ve done so far, and many of my classmates abroad are two weeks into the job, still waiting for their projects to materialize.  In all honesty it was never my goal to have a big impact over a nine-week period.  I just wanted the perspective that working in a capacity constrained government in Africa would afford.  Turns out I’ve got my work cut out for me, and ...


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Let's Do It Again in Wolof

Posted by Jenny Stefanotti on Sunday, June 14, 2009,

I had lunch earlier this week with the country manager for Google in Senegal, Tidjane Deme.  He’s an incredibly impressive guy who not only understands Senegal but also deeply understands Google philosophy and approach.  We talked about many fascinating things, but one stuck out enough to merit a posting: the importance of radio for strengthening democratic institutions in developing countries.  Tidjane told me his favorite thing to hear is “Let’s do it again in Wolof.”

What he wa...


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The Daily Contrast

Posted by Jenny Stefanotti on Monday, June 8, 2009, In : Culture 
Now this is interesting. I’ve subscribed for a while now to Daily Candy, which is a daily email whose value is in its restaurant, shopping, and culture tips in the city you live in. I’ve always been a bit struck by the tone they take, and how consumerist their emails are. It’s always felt very superficial, shallow, consumed with status, and imbued with a sense of superiority. The underlying message has always seemed to be “you will be so hip and cool if only you are shopping here or d...

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Preparing for Liberia

Posted by Jenny Stefanotti on Monday, June 8, 2009,

As the start of my internship draws near, I’ve been reading more and more about Liberia.  I’m pretty sure that it will impact me more than any other place I’ve ever been, and probably any other place I’ll ever go.  A few Harvard professors from the Kennedy School visited last winter, and even they said they’d never seen anything like it.  These are people who have spent a career studying development.

Liberia is, literally, one of the poorest countries on the planet - next to Malawi, ...

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A Sampling of the Counterintuitive Conclusions of Advanced Macroeconomics

Posted by Jenny Stefanotti on Monday, June 8, 2009, In : Economics 

We covered a lot macroeconomics this semester: growth theory, consumption, investment, real business cycle, Keynesian theory of the business cycle, unemployment, fiscal policy, and monetary policy. The assumptions behind so many of the models were just so unrealistic; it seemed absurd to be solving problems to see the conclusions ourselves.  I thought I’d outline a couple of the more counterintuitive things we learned and the implausible conclusions that they implied.

Neo-classical Growth Th...

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Thoughs on Industrial Policy Re: Binding Constraints

Posted by Jenny Stefanotti on Friday, May 15, 2009, In : Industrial Policy 

See my posting below What Dani Rodrik Taught Me About Industrial Policy for background on this one.  In a nutshell, when resources aren’t allocated efficiently, structural shifts in the economy to higher productivity activities can create economic growth.  Policy interventions to promote these shifts are justified only when we can identify a market and/or government failures that is inhibiting these shifts from happening on their own.

What happens when we have identified a list of both marke...

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Words of Caution on Industrial Policies Promoting Sectoral Productivity Gains

Posted by Jenny Stefanotti on Friday, May 15, 2009, In : Industrial Policy 

See my posting below What Dani Rodrik Taught Me About Industrial Policy for a description on what allocative inefficiency is, where it comes from, and how industrial policy can improve resource allocation to create economic growth.

I felt it was important to make a couple points regarding the implication for overall allocative efficiency of policies justified by efficiency gains in specific sectors.  My last post explains how it might be easy to always justify government intervention for sect...
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Thoughts on Industrial Policy Re: Justification for Government Intervention

Posted by Jenny Stefanotti on Friday, May 15, 2009, In : Industrial Policy 

Per my last post, the key takeaway from Dani’s industrial policy teachings is not to target sectors, but specific market or government failures.  Only if these failures are present is government intervention justified.  The big ones we should be looking out for are learning externalities and coordination failures.

But…it seems one can always justify learning externalities, whether in the form of learning by doing or learning about costs.  I didn’t get into these on the last posts, but le...
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What Dani Rodrik Taught Me About Industrial Policy

Posted by Jenny Stefanotti on Friday, May 15, 2009, In : Industrial Policy 

I just took my final today for my Economic Development: Theory and Evidence course, taught by Dani Rodrik and Rohini Pande.  So if there’s ever a day to post on what I’ve learned about industrial policy from Dani, today is definitely the day.

The first fundamental welfare theorem of economics tells us that a competitive equilibrium is efficient, provided markets work perfectly.  This is to say the marginal product of labor and capital are equalized across the economy, otherwise resources c...
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Malaria Nets as Wedding Dresses? So What?

Posted by Jenny Stefanotti on Thursday, April 30, 2009, In : Health 

Dambisa Moyo, author of Dead Aid and one of Time's most influential people in 2009, posted this on twitter yesterday: "Villagers using mosquito nets as wedding gowns: Yet another unintended consequence of a 'good' deed."  As someone trained in policy from Harvard and economics from Oxford, she should know better.  As someone with an increasing amount of influence, she should really know better.

We shouldn't be using anecdotes as support for any policy formulation.  This one especially concerns...
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Aardvark: The Killer SMS App for Emerging Markets We’ve Been Waiting For?

Posted by Jenny Stefanotti on Wednesday, April 29, 2009,

Caveat: My boyfriend is the CEO and I am an investor in Aardvark.  Having said that, I have frustrated him to no end with my (hopefully constructive) criticism from the beginning ;).

There are a total of 3.5+B mobile and 1.6B Internet users worldwide.  These two numbers used to get us very excited about mobile opportunities at Google, especially in the Asia Pacific and Latin America team where I did strategy for two years.

But the fact of the matter is the vast majority of mobile phones are not...
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On the Aid Debate: Local Capacity Building

Posted by Jenny Stefanotti on Monday, April 27, 2009, In : Aid Effectiveness 

My bed nets post has gotten me thinking more about the issue people are raising with the status quo of aid today - that it inhibits the ability of local capacity to develop and to find local solutions to the problem. 

There's a lot to be said for this argument.  Western NGOs sweeping in like white knights and moving on to the next development fad du jour, particularly when they wipe out local producers, leave developing countries without the capacity to solve their problems over the long term...
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MPAID - the best development program in the world?

Posted by Jenny Stefanotti on Sunday, April 26, 2009, In : Development Careers 

I'm just finishing up my first year of a two year master's degree in public administration and international development at the Kennedy School of Government at Harvard.  Though it has its faults, I feel pretty strongly that it's one of, if not the best, programs in international development out there.

Caveat:  that statement only applies if you are a very quantitative and analytical person (I studied physics and engineering once upon a time).  If you don't like math, I promise you will hate th...
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Developing Jen in Liberia is Born

Posted by Jenny Stefanotti on Sunday, April 26, 2009, In : Development Careers 

I've been blogging when I travel for years now, but I felt it was important for me to have a separate blog dedicated to my experience in Liberia this summer.  Though I won't take off for Monrovia for over a month, there's already a lot to say about why i chose this internship, how it fits into my overall career goals, and what exactly I'll be doing there.  Not to mention the people I'm already connecting to and the meetings I'll be having in San Francisco in the coming weeks.  So with that, D...
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Fighting Malaria: The Bed Net Controversy

Posted by Jenny Stefanotti on Sunday, April 26, 2009, In : Aid Effectiveness 

Yesterday was world Malaria Day.  The social media community has embraced malaria of late, with the "king of twitter" Ashton Kutcher donating $100,000 to the cause after beating CNN to 1M twitter followers and some of twitter's loudest voices such as Evan Williams (CEO of twitter) and Kevin Rose (Founder of Digg) tweeting to garner support for the cause.  Supporting the distribution of malaria nets has become the hot development cause du jour.

This has created quite a stir in some corners of t...

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