Center for Global Development [to 27 February 2016]

Center for Global Development [to 27 February 2016]
http://www.cgdev.org/page/press-center
Selected Press Releases, Blog Posts, Publications

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Global Health Donors Viewed as Regulators of Monopolistic Service Providers: Lessons from Regulatory Literature – Working Paper 424
2/26/16
Han Ye
Controlling healthcare costs while promoting maximum health impact in the recipient countries is one the biggest challenges for global health donors. This paper views global health donors as the regulators of monopolistic service providers, and explores potential optimal fund payment systems under asymmetric information. It provides a summary and assessment of optimal price regulation designs for monopolistic service providers.

Designing Contracts for the Global Fund: Lessons from the Theory of Incentives – Working Paper 425
2/26/16
Liam Wren-Lewis
This paper uses contract theory to suggest simple contract designs that could be used by the Global Fund. Using a basic model of procurement, we lay out five alternative options and consider when each is likely to be most appropriate. We ultimately provide a synthesis to guide policy makers as to when and how ‘results-based’ incentive contracts can be used in practice.

Balancing Financial Integrity with Financial Inclusion: The Risk-Based Approach to “Know Your Customer”
2/25/16
Alan Gelb
Recognizing the importance of financial inclusion as a policy objective, regulators have endorsed the use of a risk-based approach (RBA) towards know-your-customer (KYC) requirements aimed at strengthening financial integrity. This paper considers applications of the RBA in domestic banking, mobile money and international financial transactions against the features of a rigorous RBA where both the rigor and level of due diligence and the structure and balance of incentives should be proportional to the balance of risks, including that of exclusion. Recommendations include greater attention to national identification systems and to encourage the use of digital technology to shift from cash-cash wire transfers to more transparent account-account transactions between identified holders.