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TTR has the goods on how the financial crisis is hurting development in Africa, what the end of the health care tax exclusion could mean for you, how to help low-income students succeed in college, and the problems of local education budgeting. Check it all out, and welcome our final intern of the summer, Christine Anderson.
- How the financial crisis affects Africa [PDF]. Research by the Overseas Development Institute suggests that the global financial crisis is yet another hitch in the development of sub-Saharan Africa, despite the region's relatively low integration in the world market. This study, one of many predicting a downturn in sub-Saharan Africa’s growth, shows that foreign direct investment and cross-border bank lending have an important impact on economic growth in the region, while portfolio equity and bonds have no significant influence. It predicts that a 10 percent decrease in FDI would lead to a .5 percent decrease in African growth, and a 10 percent decrease in cross-border banking would lead to a subsequent .7 percent growth decrease. This could be a net loss of over $10 billion in growth, something that sub-Saharan Africa’s already-shaky economy cannot afford. As the crisis continues, the Third World development that the West has been seeking to nurture may start backsliding. This report is part of a larger ODI project studying the global financial crisis’ effect on developing countries. -- CA
- In health care costs, location matters [PDF].You may not know it yet, but you want to move Utah. That’s where your family is least likely to be affected by a potential cap on health care tax exclusions, according to an insightful new report by the Economic Policy Institute. (Arkansas and Hawaii are close behind, so take your pick.) As the Obama administration and others discuss a potential limit to the current tax exclusion on health care benefits, EPI's report picks up on an important issue -- huge variations across states in the cost of premiums. This variance means any nationwide cap on tax exclusions would need significant and complex adjustments to avoid taxing middle and low-income families in states with expensive health care. “The likelihood of being above the single plan cap varies from 5.3% in Hawaii to 42.6% in Alaska,” and “from 17.2% in Utah to 63.8% in the District of Columbia” for family plans. -- CKS
- Using college to climb the income ladder. Researchers have long known that a college education is the key to economic mobility for low-income families in America. In a new report, the Urban Institute offers recommendations to improve the college enrollment and graduation rates of low-income students. Although students from poor backgrounds benefit disproportionately from having a college degree, they are still less likely to enroll in a two- or four- year college, and less likely to graduate once they’ve enrolled. The Urban Institute’s recommendations target factors believed to prevent low-income students from achieving a degree: the strain college costs puts on poor families, lack of information about colleges and student aid, and a dearth of social and scholarly support while enrolled. The report suggests providing students with effective guidance in selecting and paying for college, and federal incentive grants to encourage them to stay in college. -- MD
- Crummy schools and loopholes [PDF]. When assessing the appalling conditions of our public school system, the list of the blameworthy is virtually endless. But Lindsey Luebchow of the New America Foundation lays the lion’s share of the blame on the federal system of district budgeting methods. Loopholes in federal law allow administrators to circumvent provisions of No Child Left Behind, resulting in resource and teacher salary inequities, with high-poverty public schools invariably suffering the most. Among the recommendations for remedying the collapsing infrastructure and low achievement are low budget transparency, waivers for exceptional staffing, and, of course, more money. -- AS
-- TAP Staff
